NJ A3556

Allows New Jersey employees to deduct up to $5,250 annually from gross income for employer-provided educational assistance that qualifies under federal Internal Revenue Code section 127.

Creates a separate deduction of up to $5,250 annually for employer-provided student loan payment assistance covering principal or interest on qualified higher education debt.

Educational assistance covers tuition, fees, textbooks, and equipment for non-recreational courses, while student loan assistance applies to debt for costs of attendance as defined under the federal Higher Education Act.

Employees may claim both deductions in the same taxable year in addition to all other exemptions and deductions allowed under New Jersey gross income tax law.

Takes effect immediately and applies to taxable years beginning after the date of enactment.