Bill > S1638

This bill establishes a gross income tax credit for New Jersey residents who pay tuition costs for full-time students at eligible in-state post-secondary institutions. The credit is available to taxpayers with a gross income of $150,000 or less and can be claimed for tuition paid for a dependent under 22 years old or for the taxpayer themselves, provided they meet the income and residency requirements. The credit is equal to 10% of the tuition cost, capped at $1,000 per taxable year, and applies to four-year colleges, county colleges, and accredited business, technical, trade, or vocational schools in New Jersey. Importantly, a taxpayer cannot claim this credit if they have already claimed a deduction for the dependent on their taxes, and a student cannot have their tuition costs credited by both a parent and themselves. The bill takes effect immediately and applies to taxable years beginning on or after January 1 following its enactment.