Bill Text: NJ A1530 | 2024-2025 | Regular Session | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Education Committee [A1530 Detail]
Download: New_Jersey-2024-A1530-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman GERRY SCHARFENBERGER
District 13 (Monmouth)
SYNOPSIS
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.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing a gross income tax credit for certain homeschooling expenses and supplementing chapter 4 of 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 taxpayer whose gross income for the taxable year does not exceed $260,000 shall be allowed a credit against the tax due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to the value of qualified homeschooling expenses incurred by the taxpayer, up to $2,500 per child or dependent; provided, however, that the credit allowed by this subsection shall not exceed a total of $7,500 per taxpayer in a taxable year.
b. A taxpayer shall be allowed an additional $1,000 credit per child provided that the qualified homeschooling expenses incurred by the taxpayer are for a child or dependent with special needs; provided, however, that the credit allowed by subsection a. and this subsection shall not exceed a total of $10,500 per taxpayer in a taxable year.
c. As used in this section, "qualified homeschool expenses" means expenses for educational textbooks, workbooks, and teachers' edition books; computer software whose primary purpose is for teaching or self-learning; rental fees for educational curriculum; and membership fees for libraries and academic institutions and organizations. Qualified homeschool expenses shall also include materials used to set up a home school, including but not limited to computers, desks, boards; consumable school supplies, including but not limited to pencils, pens, paper; and internet provider fees.
d. In the case of married couples who file separately, each person shall be permitted to claim one-half of the credit allowed pursuant to subsections a. and b. of this section for qualified homeschool expenses jointly incurred in a taxable year.
e. A taxpayer who is not subject to tax in accordance with N.J.S.54A:2-4 for a taxable year may claim the credit using an application made available by the director. The due date for a tax credit application submitted pursuant to this subsection shall coincide with the due date for annual gross income tax returns.
f. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq. for a taxable year shall be as prescribed by the director.
g. The amount of the credit applied against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq. shall not reduce the liability of a taxpayer under the New Jersey gross income tax to an amount less than zero.
2. This act shall take effect immediately and shall apply to taxable years beginning on or after the January 1 next following the date of enactment.
STATEMENT
This bill would provide a non-refundable gross income tax credit for certain expenses associated with homeschooling a child or dependent for taxpayers with incomes of up to $260,000. The amount of the credit would be equal to the value of qualified homeschooling expenses incurred by the taxpayer, up to $2,500 per child or dependent. The taxpayer would be able to claim no more than $7,500 in total credit in a taxable year (i.e., three children or dependents). A taxpayer that homeschools a child or dependent with special needs would qualify for an additional $1,000 credit for the qualified homeschooling expenses for each child or dependent. A taxpayer who qualifies for the additional credit would be able to claim a total credit of $10,500 in a taxable year. For married couples who file separately, each person would be permitted to claim one-half of the credit otherwise allowable. Taxpayers who do not have minimum taxable income that is subject to the gross income tax may claim the credit using an application made available by the Director of the Division of Taxation.
The bill defines "qualified homeschool expenses" to mean expenses for educational textbooks, workbooks, and teachers' edition books; computer software whose primary purpose is for teaching or self-learning; rental fees for educational curriculum; and membership fees for libraries and academic institutions and organizations. Qualified homeschool expenses would also include materials used to set up a home school, including but not limited to computers, desks, boards; consumable school supplies, including but not limited to pencils, pens, paper; and internet provider fees.
Parents and guardians who homeschool their children go to great lengths--and incur great costs--in order to provide a quality education to those in their care. The State, moreover, has an interest in supporting the development and access to educational opportunities for all children residing in the State, irrespective of the method by which they are educated. This bill seeks to balance such interests by providing a gross income tax credit to cover the costs of many expensive yet fundamental educational resources, such as textbooks and educational software incurred by parents and guardians homeschooling their children and dependents.
expenses incurred by parent or guardian with increased credit for taxpayers homeschooling child or dependent with special needs.
