NJ A769

New Jersey residents who graduated from college and work in the state can claim a gross income tax credit for their student loan payments, with the credit amount based on actual monthly payments or a benchmark payment calculation, whichever is less.

The tax credit becomes fully refundable for taxpayers who earned an associate's or bachelor's degree in science, technology, engineering, or mathematics (STEM fields).

Employers can claim a tax credit against gross income tax or corporation business tax for student loan payments made directly to lenders on behalf of qualified employees, with part-time employees qualifying for 50% of the credit amount.

Unused individual tax credits may be carried forward for up to seven years, while business credits under the corporation business tax may be carried forward for up to ten years.

Full-time employment is defined as 32 or more hours per week, and part-time employment is defined as between 16 and 32 hours per week; qualified employees must hold at least an associate's degree from an accredited institution.