Establishes gross income tax credit for full-time tuition cost at certain New Jersey institutions of post-secondary education.

S3350

SENATE, No. 3350

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 5, 2026

Sponsored by:

Senator� SHIRLEY K. TURNER

District 15 (Hunterdon and Mercer)

SYNOPSIS

���� Establishes gross income tax credit for full-time
tuition cost at certain New Jersey institutions of post-secondary education.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

establishing a gross income tax credit for the cost of full-time tuition for
certain taxpayers and their dependents attending certain institutions of
post-secondary education in New Jersey, and supplementing Title 54A of the New
Jersey Statutes.

����
Be It Enacted

by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� A taxpayer who has a
gross income of $150,000 or less during the taxable year and who has paid
one-half or more of the costs of tuition of a dependent under the age of 22
years who is a resident of this State and a full-time student in good standing at
a New Jersey four-year institution of higher education, a New Jersey county
college, or an accredited post-secondary business, technical, trade or
vocational school in this State, shall be allowed a credit against the tax
otherwise due pursuant to the "New Jersey Gross Income Tax Act,"
N.J.S.54A:1-1 et seq., in an amount equal to 10% of the cost of tuition, paid
by the taxpayer during the taxable year, up to a maximum credit of $1,000.� A
credit shall not be allowed under this subsection for a taxable year if the
taxpayer has claimed a deduction for the dependent pursuant to section 1 of
P.L.1976, c.84 (C.54A:3-1.1) for that taxable year.

���� b.��� A resident taxpayer who
has a gross income of $150,000 or less during the taxable year and who has paid
the costs of tuition for the taxpayer's full-time attendance in good standing
at a New Jersey four-year institution of higher education, a New Jersey county
college, or an accredited post-secondary business, technical, trade or
vocational school in this State, shall be allowed a credit against the tax
otherwise due pursuant to the "New Jersey Gross Income Tax Act,"
N.J.S.54A:1-1 et seq., in an amount equal to 10% of the cost of tuition, paid
by the taxpayer during the taxable year, up to a maximum credit of $1,000.� A
credit shall not be allowed under this subsection for a taxable year if the
taxpayer is a dependent of another taxpayer who claims a credit for the
taxpayer�s costs of tuition under subsection a. of this section for that
taxable year.

���� 2.��� This act shall take
effect immediately and shall apply to taxable years beginning on or after
January 1 next following the date of enactment.

STATEMENT

���� This bill expands
opportunities for New Jersey residents to pursue post-secondary education by
establishing a gross income tax credit for the costs of full-time tuition at New
Jersey institutions of higher education, county colleges and accredited
post-secondary training schools.� The tax credit is equal to 10 percent of
tuition costs of up to $10,000 paid by a taxpayer with a gross income not
exceeding $150,000 either for the taxpayer or a resident dependent under 22
years of age.

���� Tuition and fees for New
Jersey State college students exceed the national average by 26 percent.� The
College Board relates in its �Trends in College Pricing 2017� report that the
national average cost of in-state tuition and fees at four-year public colleges
is $9,970 for academic year 2017-2018.� The New Jersey Secretary of Higher
Education conveys that the equivalent average for New Jersey senior public
colleges is $13,464.

���� The State�s 19 county
community colleges provide access to higher education for many New
Jersey residents who might otherwise be denied the benefits of a college
education.� Post-secondary business, technical, trade or vocational schools, on
the other hand, allow the non-college bound to improve their occupational and
economic chances by acquiring specialized skills.