NJ A3466

Creates "lifelong learning accounts" for New Jersey residents ages 18-70 to save for education and training expenses, with annual contribution limits of $2,500 per account

Excludes up to $2,500 of employer contributions and all account earnings from gross income tax, with distributions taxable upon withdrawal

Provides individual taxpayers a tax credit of 50% on the first $500-$1,000 of personal contributions (based on filing status) and 25% on additional contributions, with phase-outs beginning at $100,000 for single filers and $200,000 for joint filers

Grants employers a 25% tax credit on contributions made to employees' accounts (up to $2,500 per employee), plus small businesses with 100 or fewer employees can claim an additional credit covering 50% of administrative costs (up to $500) for the first two years

Qualified education expenses include tuition, books, equipment, fees, IT devices, supplies, and tools for instructional courses, training, and apprenticeship programs for the account holder or spouse, excluding recreational courses; nonqualified withdrawals incur a 5% penalty