Bill Text: NJ S4956 | 2024-2025 | Regular Session | Introduced
Bill Title: Allows gross income deduction for all wage income received by high school and college graduates during two consecutive taxable years following graduation from in-State school.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced - Dead) 2025-12-08 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S4956 Detail]
Download: New_Jersey-2024-S4956-Introduced.html
Sponsored by:
Senator JOSEPH P. CRYAN
District 20 (Union)
SYNOPSIS
Allows gross income deduction for all wage income received by high school and college graduates during two consecutive taxable years following graduation from in-State school.
CURRENT VERSION OF TEXT
As introduced.
An Act allowing a gross income tax deduction for wage income received by certain high school and college graduates and supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A resident taxpayer shall be allowed a deduction from gross income for the amount of salaries, wages, and other remuneration received by the taxpayer for services rendered during the two consecutive taxable years immediately following the taxpayer's graduation from a high school or a public or private institution of higher education, provided that the taxpayer resides in the State for the entire taxable year for which the deduction is claimed.
b. Nothing in this section shall be construed to limit or prohibit a taxpayer from claiming the deduction authorized in this section following the taxpayer's graduation from both a high school and a public or private institution of higher education.
c. As used in this section:
"Graduation" means the date on which the taxpayer is awarded a diploma from a public or nonpublic high school located in the State or a bachelor's degree from a public or private institution of higher education, as documented by official records from such institution.
"Private institution of higher education" means any private college, university, or institute incorporated and located in New Jersey, which by virtue of law or character or license is a nonprofit educational institution authorized to grant a bachelor's degree, provides a level of education equivalent to the education provided by the State's public institutions of higher education as attested by the receipt of and continuation of regional accreditation by the Middle States Association of Colleges and Schools, and is eligible to receive State aid under the provisions of the Constitution of the United States and the Constitution of the State of New Jersey.
"Public institution of higher education" means Rutgers, The State University, the State colleges, the New Jersey Institute of Technology, Rowan University, Montclair State University, Kean University, and any other public university or college now or hereafter established or authorized by law, except not including the county colleges.
2. This act shall take effect immediately
and apply to taxable years beginning on or after the January 1 next following
the date of enactment.
STATEMENT
This bill provides a gross income tax deduction for recent high school and college graduates during two consecutive taxable years following graduation from an in-State school.
Specifically, the bill allows a deduction for all salaries, wages, and other remuneration received for services rendered by a taxpayer during the two consecutive taxable years immediately following the taxpayer's graduation from a public or nonpublic high school located in New Jersey or a bachelor's degree program from a public or private institution of higher education located in New Jersey. To qualify for the deduction, a taxpayer is required to reside in New Jersey for the entire taxable year for which the deduction is claimed.
Under the bill, a taxpayer may claim the deduction on multiple occasions, including after the taxpayer's graduation from both high school and university.
