The bill introduces various key changes, including an increase in the maximum age for account contributions from 18 to 70, and a higher contribution limit of $4,000 for beneficiaries over 30 years old. It also allows deductions for contributions made to these accounts and expands the definition of qualified expenses to cover a variety of educational and skill enhancement costs. Additionally, revised tax treatment may provide further incentives for individual and employer contributions to Coverdell accounts, effectively promoting lifelong education and training across different demographics.
Summary
SB3816, also known as the 'Skills Investment Act of 2024', proposes significant amendments to the Internal Revenue Code to establish and expand the utilization of Coverdell lifelong learning accounts. The bill aims to rename the existing Coverdell education savings accounts, allowing for contributions and distributions that can now include costs associated with lifelong learning activities. These amendments intend to enhance educational opportunities by broadening the scope of what qualifies as educational and skill development expenses, thus facilitating continued education beyond traditional schooling structures.
Contention
While the bill enjoys broad support for its intent to promote educational access, some points of contention may arise regarding the potential implications for existing education funding structures. Critics may argue that redefining tax benefits related to education could divert funds from traditional educational systems or create disparities in who can benefit most directly from such accounts, especially given income and wealth inequalities. Furthermore, there may be debates about the specific qualifications for eligible expenses and how this can be fairly and transparently administered.
Provides State grants for new accounts opened under New Jersey Better Educational Savings Trust (NJBEST) program; provides gross income tax credit for certain contributions to NJBEST accounts.
General Assembly; cardiopulmonary training to be offered to members and staff of the General Assembly and members of the Capitol Police Division; provide