New Jersey Assembly Bill A4607

New Jersey 2022-2023 Regular Session

• Introduced: 9/22/22
• Refer: 9/22/22

Caption

Allows credit against gross income tax for certain eligible taxpayers pursuing education and employment in State.

Impact

The bill is expected to have significant implications on state laws as it specifically targets the New Jersey Gross Income Tax Act. It provides a structured framework for eligible residents to benefit from the tax system which, proponents argue, will promote higher educational attainment within the state and help retain a skilled workforce in New Jersey. By incentivizing recent graduates to remain in the state for their careers, the measure seeks to bolster the local economy and support the growth of businesses that depend on a well-educated labor pool.

Summary

Assembly Bill A4607 aims to provide a nonrefundable gross income tax credit of $1,500 to residents of New Jersey. The eligibility criteria for this credit include graduating from a New Jersey high school and obtaining an undergraduate degree from a New Jersey institution of higher education with a Grade Point Average (GPA) of 3.5 or higher. Furthermore, the individual must be employed full-time within two years of graduation by a New Jersey employer. This initiative is designed to encourage local graduates to pursue their studies in-state and to incentivize them to remain in New Jersey for their employment.

Contention

Notable points of contention surrounding A4607 may arise from concerns over its affordability and potential impact on state tax revenue. Critics could question whether the tax credit system is a sustainable solution for fostering economic growth or if it merely serves as a temporary measure. Additionally, lawmakers may debate the fairness of using tax credits as a tool for economic development, as it could lead to inequities favoring certain demographics, particularly those with access to higher education institutions.