(TRENTON) – Legislation Assemblyman John McKeon and Assembly Majority Leader Lou Greenwald sponsored to provide a state income tax deduction to residents who save for their children’s higher education through a state-administered college savings plan was advanced Thursday by an Assembly panel.
“Saving for a college education is more important today than it ever has been,” said McKeon (D-Essex/Morris). “We need to reward parents who have the foresight to put aside money now for their children’s higher educations.”
The bill (A-1747) would provide a state gross income tax deduction for the first $5,000 contributed annually to the New Jersey Better Educational Savings Trust (NJ BEST) program. NJ BEST is a 529 college savings plan administered through the New Jersey Higher Education Student Assistance Authority and managed by Franklin Templeton Investments.
“The state’s current tax code has actually penalized parents who took advantage of the state’s 529 savings plans to set aside money for a child’s college education,” said Greenwald (D-Camden/Burlington). “Money being put into NJ BEST should be just as tax-free as the money that eventually comes out to pay tuition bills.”
The bill was advanced by the Assembly Appropriations Committee.
