Establishes tax credit for portion of qualifying educational expenditures made by taxpayer on behalf of child.
Impact
The introduction of A1485 is poised to impact state tax laws significantly by establishing a new tax credit mechanism targeted at educational expenses. This shift reflects an acknowledgment of the rising costs associated with education, particularly for families opting for nonpublic schooling. By providing financial incentives in the form of tax credits, the bill seeks to promote educational choices among families, thus potentially increasing enrollment in nonpublic educational institutions. Ultimately, this could influence the broader landscape of education funding and resource allocation within the state.
Summary
Assembly Bill A1485 seeks to enhance educational opportunities for families in New Jersey by providing a tax credit for qualifying educational expenditures. Specifically, the bill allows taxpayers to receive a credit equal to 25% of their qualifying expenses for dependent children, up to a maximum of $500 per child. These expenditures cover a range of costs, including tuition for nonpublic schools, school supplies, required instructional materials, transportation, and fees for extracurricular activities. Through this measure, the state aims to alleviate the financial burden on parents and support educational diversity.
Contention
While supporters of A1485 laud the bill's intention to support families' educational expenses, concerns may arise regarding the long-term implications of incentivizing nonpublic schooling. Critics could argue that such measures may divert public funds away from public schools, thereby exacerbating funding disparities between nonpublic and public educational institutions. Additionally, there may be apprehensions about the criteria for what constitutes a 'qualified educational expenditure,' as parents of children in public schools could feel disadvantaged. Thus, while the bill presents a good-faith effort to address educational costs, it is important that lawmakers consider these concerns to ensure a balanced educational policy.
Provides gross income tax credit for certain homeschooling expenses incurred by parent or guardian with increased credit for taxpayers homeschooling child or dependent with special needs.
Provides gross income tax credit for certain homeschooling expenses incurred by parent or guardian with increased credit for taxpayers homeschooling child or dependent with special needs.
Exempts from "Sales and Use Tax Act" certain retail sales of computers and school supplies; allows $500 gross income tax deduction to teachers purchasing school supplies for classroom use.
Exempts from "Sales and Use Tax Act" certain retail sales of computers and school supplies; allows $500 gross income tax deduction to teachers purchasing school supplies for classroom use.
Exempts from "Sales and Use Tax Act" certain retail sales of computers and school supplies; allows $500 gross income tax deduction to teachers purchasing school supplies for classroom use.
Exempts from "Sales and Use Tax Act" certain retail sales of computers and school supplies; allows $500 gross income tax deduction to teachers purchasing school supplies for classroom use.