New Jersey Assembly Bill A1482

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

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.

Impact

A1482 establishes significant changes in the NJBEST program by providing tax credits against New Jersey's Gross Income Tax for contributions made to NJBEST accounts. Married individuals filing jointly can claim up to $600, while unmarried individuals or those filing separately are eligible for a $300 credit. This allows families to benefit from tax savings while investing in education savings, which can alleviate some financial burdens often associated with higher education.

Summary

Bill A1482, titled to provide new state grants under the New Jersey Better Educational Savings Trust (NJBEST) program, aims to enhance financial incentives for families saving for higher education. The bill proposes a one-time state grant of up to $250 for new NJBEST accounts, matching the initial deposit dollar-for-dollar. Additionally, it offers another one-time grant of $50 for accounts that establish an automatic contribution plan. These initiatives are intended to encourage participation in the NJBEST program, facilitating families' efforts to cover the rising costs of college education.

Contention

While the intended goal of A1482 is to expand educational savings accessibility, some may argue the necessity of state intervention in financial incentives. Concerns could arise regarding the potential for unequal benefits or whether additional funding for education could be better allocated to enhance public education directly. The effectiveness of the grants and credits in truly increasing participation in the NJBEST program will likely be a focal point of discussion as the bill progresses through the legislative process.