New Jersey Senate Bill S880

New Jersey 2022-2023 Regular Session

• Introduced: 1/27/22
• Refer: 1/27/22

Caption

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

Impact

If enacted, S880 is expected to encourage more individuals to pursue higher education within New Jersey and, subsequently, remain in the state for employment. This could benefit the state economy by increasing the workforce's education level and encouraging graduates to contribute to local businesses. The bill is designed to create a financial incentive for graduates to not only further their education but also to establish their careers within New Jersey, thereby potentially enhancing the retention of skilled workers in the state.

Summary

Senate Bill 880 (S880) aims to incentivize higher education and employment among New Jersey residents by providing a gross income tax credit. The bill allows eligible taxpayers, specifically those who have graduated from a New Jersey high school and a New Jersey institution of higher education with a GPA of 3.5 or higher, to receive a nonrefundable tax credit of $1,500. To qualify, applicants must also be employed full time, working at least 25 hours a week, for a New Jersey employer within two years of graduation.

Contention

Notable points of contention surrounding S880 may arise from the criteria for eligibility, particularly the GPA requirement and the limitation of the tax credit to the first five consecutive years of employment. Critics could argue that this may exclude many graduates who, despite receiving education in-state, may not meet the GPA threshold or may not secure full-time employment promptly. Additionally, there could be debate over the potential fiscal impact of the tax credit on state revenues.

Additional_notes

The bill stipulates that the credit is applicable for taxable years starting after the enactment and is a key component of New Jersey's strategy to promote educational achievement and local employment.