ASSEMBLY, No. 3303

STATE OF NEW JERSEY

211th LEGISLATURE

INTRODUCED SEPTEMBER 27, 2004

Sponsored by:

Assemblyman UPENDRA J. CHIVUKULA

District 17 (Middlesex and Somerset)

SYNOPSIS

    Allows parents of dependent home-school children gross income tax credits for tuition expenses for certain gifted and talented distance learning classes.

CURRENT VERSION OF TEXT

    As introduced.

An Act allowing gross income tax credits for certain expenses of dependent home-schooled children and supplementing Title 18A and 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 shall be allowed a credit against the tax otherwise due for the taxable year pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 50% of the amount of tuition for a class or classes of a qualified distance learning program for gifted and talented students paid by the taxpayer during the taxable year on behalf of the taxpayer's dependent home-schooled child, not to exceed $750 of credit for each dependent child.

    b. The director shall annually recompute the maximum credit amount provided by subsection a. of this section by multiplying the maximum credit amount by the consumer price index for all-urban consumers for the New York City and Philadelphia metropolitan areas, as prepared by the United States Department of Labor as of the close of the 12-month period ending on August 31 of the calendar year prior to the calendar year in which the taxable year begins, divided by that index as of the close of the 12-month period ending on August 31 of the calendar year in which P.L. , c. (C. ) (now pending before the Legislature as this bill) takes effect. Notwithstanding the amount provided in subsection a. of this section, each taxpayer shall use the amount as computed by the director for the applicable taxable year. The director shall round the recomputed maximum credit amount to the next highest multiple of $5.

    c. If the credits allowed pursuant to this section reduce the liability of a taxpayer to zero for a taxable year, the remaining amount of credit, if any, may be carried over for use in subsequent taxable years.

    d. For the purposes of this section:

    "Home-schooled child" means a child who receives instruction elsewhere than at school which is equivalent to that provided in the public schools for children of similar grades and attainments.

    "Qualified distance learning program for gifted and talented students" means a program included on a list of such programs developed by the Commissioner of Education pursuant to section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill) and posted on the Department of Education's web site under its gifted and talented program information.

    "Tuition" means non-reimbursed payments made by a taxpayer on behalf of a dependent home-schooled child of the taxpayer to a qualified distance learning program for gifted and talented students in order to enroll the dependent child in a gifted and talented distance learning class or classes provided by that program.

    2. a. The Commissioner of Education shall develop a list of qualified distance learning programs for gifted and talented students for the purpose of calculating a gross income tax credit pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) and post this list on the department's web site not later than 180 days following the enactment of this bill.

    b. The commissioner shall review the list of qualified distance learning programs for gifted and talented students on an annual basis and make any changes in the list deemed appropriate by the commissioner. The commissioner may take into consideration requests from parents of home-schooled children for programs to be included on the list.

    3. The Director of the Division of Taxation, in consultation with the Commissioner of Education, shall adopt rules and regulations necessary to effectuate the provisions of this act.

    4. This act shall take effect immediately and apply to payments made in taxable years beginning with the year of enactment.

STATEMENT

    This bill provides for annual New Jersey income tax credits for the tuition expenses paid by a taxpayer during a taxable year on behalf of the taxpayer's home-schooled dependent child for a distant learning class or classes offered by a qualified gifted and talented program included on the list of such programs developed by the Commissioner of Education.

    Under the bill, the Commissioner of Education is to develop a list of qualified gifted and talented programs for students and post this list on the department's web site not later than 180 days following the bill's enactment. The commissioner is to review this list on an annual basis and make any changes deemed appropriate by the commissioner. The commissioner may take into consideration requests from parents of home-schooled children for programs to be included on that list

    Under the bill, a taxpayer is allowed a credit against the tax otherwise due for the taxable year pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 50% of the amount of tuition for a class or classes offered by a distance learning program for the gifted and talented paid by the taxpayer during the taxable year, not to exceed $750 of credit for each dependent child.

    The Director of the Division of Taxation, in consultation with the Commissioner of Education, is to promulgate rules and regulation to effectuate the tax provisions of the bill.

    Admission to a distance learning gifted and talented program generally requires the submission by a parent of the gifted and talented student's most recent results on a standardized test, as set by the program, or a measure of the student's intelligence, also on a scale determined by the program.