New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S3017

Introduced
9/22/22  

Caption

"Student Loan Debt Relief Tax Credit Act"; establishes gross income tax credit of up to $5,000 for certain student loan payments and makes an appropriation.

Impact

The bill establishes a structured process within the New Jersey tax framework whereby taxpayers can apply for a credit against their gross income tax. These tax credits are designed to be used specifically for repaying student loans in the two years following receipt of the credit. Additionally, the total value of credits issued under this law is capped at $10 million per fiscal year, which establishes a clear limit on the financial impact to the state budget but also potentially restricts the number of taxpayers who can benefit from this initiative.

Summary

Senate Bill S3017, known as the 'Student Loan Debt Relief Tax Credit Act,' proposes to provide a refundable gross income tax credit of up to $5,000 for qualified taxpayers making student loan payments. To qualify, a taxpayer must have accumulated at least $20,000 in student loan debt for higher education and have a minimum of $5,000 outstanding when applying for the tax credit. This initiative aims to alleviate some of the financial burden faced by individuals with significant student debt, by providing taxpayers relief through tax refunds.

Contention

Discussions surrounding S3017 may evoke points of contention regarding the efficiency and adequacy of the measures it proposes to alleviate student debt. Critics might question the sufficiency of a $5,000 credit in addressing the broader student debt crisis, while supporters argue that it represents a meaningful step towards aiding individuals burdened with repaying student loans. Furthermore, the prioritization of applications based on debt-to-income ratios and residency status could also spark debate among stakeholders about fairness and accessibility of the program.

Companion Bills

NJ A4813

Same As "Student Loan Debt Relief Tax Credit Act"; establishes gross income tax credit of up to $5,000 for certain student loan payments and makes an appropriation.

Previously Filed As

NJ A4813

"Student Loan Debt Relief Tax Credit Act"; establishes gross income tax credit of up to $5,000 for certain student loan payments and makes an appropriation.

NJ A2176

"Student Loan Debt Relief Tax Credit Act"; establishes gross income tax credit of up to $5,000 for certain student loan payments and makes an appropriation.

NJ S1451

Establishes gross income tax credit and corporation business tax credit for student loan payments.

NJ S744

Establishes gross income tax credit and corporation business tax credit for student loan payments.

NJ A1818

Establishes gross income tax credit and corporation business tax credit for student loan payments.

NJ A1597

Establishes gross income tax credit and corporation business tax credit for student loan payments.

NJ A1086

Permits cosigners to student loans under New Jersey College Loans to Assist State Students (NJCLASS) Loan Program to make payments on loans; allows gross income tax deduction for certain payments under NJCLASS Loan Program.

NJ A2928

Permits cosigners to student loans under New Jersey College Loans to Assist State Students (NJCLASS) Loan Program to make payments on loans; allows gross income tax deduction for certain payments under NJCLASS Loan Program.

NJ HB680

Income Tax - Student Loan Debt Relief Tax Credit - Alterations

NJ AB2018

Personal Income Tax Law: refundable credit: student loan debt.

Similar Bills

NJ A2176

"Student Loan Debt Relief Tax Credit Act"; establishes gross income tax credit of up to $5,000 for certain student loan payments and makes an appropriation.

NJ A4813

"Student Loan Debt Relief Tax Credit Act"; establishes gross income tax credit of up to $5,000 for certain student loan payments and makes an appropriation.

NJ A583

"New Jersey Works Act"; concerns businesses and pre-employment training programs; provides tax credit to businesses supporting pre-employment training programs; appropriates $3 million.

AZ HB2875

Tax payments; electronic funds transfer

NJ S1485

"New Jersey Works Act"; Permits businesses to create pre-employment training programs in partnership with nonprofit organizations or educational institutions; provides tax credit to businesses that provide financial assistance to pre-employment training programs; makes appropriation.

NJ S2306

"New Jersey Works Act"; permits businesses to apply for tax credits for establishing approved pre-employment and work readiness training programs in partnership with schools, nonprofit organizations, or educational institutions.

NM HB213

School Solar Tax Credits

NJ A2369

"New Jersey Works Act"; concerns businesses and pre-employment training programs; provides tax credit to businesses supporting pre-employment training programs; appropriates $1 million.