New Jersey Assembly Bill A4085

New Jersey 2022-2023 Regular Session

• Introduced: 5/26/22
• Refer: 5/26/22

Caption

Creates corporate business tax and gross income tax credits to fund education enrichment demonstration program.

Impact

The bill establishes a new funding stream within the New Jersey Department of Education to address educational gaps. Specifically, it directs the Commissioner of Education to implement a four-year demonstration program where six eligible schools receive competitive grants to enhance academic support and enrichment services. This initiative is expected to benefit schools with a significant percentage of students not meeting educational expectations by providing targeted resources for improvement. The cap on tax credits in a fiscal year, set at $600,000, ensures that contributions are distributed fairly across need-based educational programs.

Summary

Assembly Bill A4085 proposes the creation of tax credits for corporate businesses and gross income taxpayers who contribute to an Education Enrichment Demonstration Program. The bill aims to incentivize large contributions, providing up to $100,000 in tax credits for corporate businesses that donate a minimum of $50,000, and up to $25,000 for gross income taxpayers who contribute at least $5,000. These contributions are intended to fund educational programs and initiatives designed to enrich the student experience in schools that meet specific performance criteria.

Contention

One notable point of contention surrounding A4085 is the potential for unequal access to educational resources. Critics argue that reliance on corporate and individual contributions could create disparities between well-resourced and under-resourced schools, ultimately undermining the comprehensive education system. Furthermore, there are concerns about the long-term sustainability of the program post-expiration of the tax credits, which is set for four years after enactment. Advocacy groups may express that temporary measures are inadequate for solving systemic issues in education funding.