NJ A4777

New Jersey would elect to participate in the federal tax credit scholarship program established under 26 U.S.C. § 25F for all taxable years beginning after December 31, 2026.

The Commissioner of Education must annually provide the U.S. Secretary of the Treasury with required information, including a list of all qualifying scholarship granting organizations located in the state.

The federal program allows individuals to claim a tax credit up to $1,700 per year for contributions to scholarship granting organizations that fund scholarships for students from households earning no more than 300% of area median gross income.

State participation is voluntary and must be elected annually; residents of non-participating states can only receive credits for contributions to organizations in other participating states, not their own.