New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A1485

Introduced
1/9/24  

Caption

Establishes tax credit for portion of qualifying educational expenditures made by taxpayer on behalf of child.

Impact

The introduction of A1485 is poised to impact state tax laws significantly by establishing a new tax credit mechanism targeted at educational expenses. This shift reflects an acknowledgment of the rising costs associated with education, particularly for families opting for nonpublic schooling. By providing financial incentives in the form of tax credits, the bill seeks to promote educational choices among families, thus potentially increasing enrollment in nonpublic educational institutions. Ultimately, this could influence the broader landscape of education funding and resource allocation within the state.

Summary

Assembly Bill A1485 seeks to enhance educational opportunities for families in New Jersey by providing a tax credit for qualifying educational expenditures. Specifically, the bill allows taxpayers to receive a credit equal to 25% of their qualifying expenses for dependent children, up to a maximum of $500 per child. These expenditures cover a range of costs, including tuition for nonpublic schools, school supplies, required instructional materials, transportation, and fees for extracurricular activities. Through this measure, the state aims to alleviate the financial burden on parents and support educational diversity.

Contention

While supporters of A1485 laud the bill's intention to support families' educational expenses, concerns may arise regarding the long-term implications of incentivizing nonpublic schooling. Critics could argue that such measures may divert public funds away from public schools, thereby exacerbating funding disparities between nonpublic and public educational institutions. Additionally, there may be apprehensions about the criteria for what constitutes a 'qualified educational expenditure,' as parents of children in public schools could feel disadvantaged. Thus, while the bill presents a good-faith effort to address educational costs, it is important that lawmakers consider these concerns to ensure a balanced educational policy.

Companion Bills

NJ S2842

Same As Establishes tax credit for portion of qualifying educational expenditures made by taxpayer on behalf of child.

NJ A5342

Carry Over Establishes tax credit for portion of qualifying educational expenditures made by taxpayer on behalf of child.

Previously Filed As

NJ S3928

Establishes tax credit for portion of qualifying educational expenditures made by taxpayer on behalf of child.

NJ A5141

Expands child tax credit eligibility to resident taxpayers with children ages six to 11.

NJ A4746

Provides gross income tax credit to taxpayers for qualified youth sports expenses paid or incurred on behalf of dependents.

NJ S248

Provides child tax credit for taxpayers with children ages six to 11 and increases amount of credit for taxpayers with children under 12 over period of two years.

NJ A3401

Provides child tax credit for taxpayers with children ages six to 11 and increases amount of credit for taxpayers with children under 12 over period of two years.

NJ A3886

Establishes NJ Gross Income Tax EasyFile Program; pilot program to allow Division of Taxation to prepare gross income tax return forms for certain taxpayers.

NJ A868

Provides gross income tax credit for certain homeschooling expenses incurred by parent or guardian with increased credit for taxpayers homeschooling child or dependent with special needs.

NJ S4212

Increases child tax credit amount under gross income tax for resident taxpayers with children ages six and under and expands child tax credit eligibility to resident taxpayers with children ages six to 11.

NJ S1027

"Opportunity Scholarship Act"; establishes pilot program in Department of Treasury providing tax credits to taxpayers contributing to scholarships for low-income children.

NJ A1578

"Opportunity Scholarship Act"; establishes pilot program in Department of Treasury providing tax credits to taxpayers contributing to scholarships for low-income children.

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