Requires State to participate in federal tax credit scholarship program and directs Commissioner of Education to provide required information to U.S. Secretary of the Treasury.
Summary
Assembly Bill 4777 requires New Jersey to opt into a federal tax credit scholarship program created under section 25F of the Internal Revenue Code. For taxable years beginning after December 31, 2026, the State would be required to participate in the program for individual contributions to scholarship granting organizations, which allows donors to claim a federal income tax credit for qualified contributions up to $1,700 per year.
The bill also directs the Commissioner of Education to annually provide the U.S. Secretary of the Treasury with whatever information federal law requires for New Jersey’s participation, including a list of scholarship granting organizations in the State that meet federal requirements. The bill is framed as a supplement to Title 18A of the New Jersey Statutes and would take effect immediately.
Impact
If enacted, the bill would create a state-law obligation for New Jersey to make an annual election to participate in the federal scholarship tax credit program and to supply Treasury with the required state-level information. It would not itself create the federal tax credit, but it would determine whether New Jersey donors can receive credits for contributions to in-state scholarship granting organizations and would require the Department of Education to identify qualifying organizations for federal reporting purposes.
Sentiment
The available context suggests generally favorable support from the sponsors, who present the bill as a way to ensure New Jersey residents can benefit from a newly created federal tax incentive for scholarship donations. No committee transcript or vote record is provided, so there is no documented opposition or broader legislative sentiment in the supplied materials.
Contention
The main policy issue is whether New Jersey should be required to participate in the federal program rather than leaving the election to executive discretion or annual policy choice. Another potential point of contention is the broader school-choice and private-school scholarship policy underlying the federal program, since the bill would help channel tax-advantaged donations to scholarship granting organizations serving students from households up to 300 percent of area median income. The provided materials do not identify any specific opponents or formal objections.
Same As
Requires State to elect to participate in federal tax credit scholarship program and directs Commissioner of Education to provide required information to U.S. Secretary of the Treasury.