NJ S3928

Creates a New Jersey gross income tax credit equal to 25% of qualified educational expenditures made for dependent children under age 18, with a maximum credit of $500 per child per year.

Qualified expenditures include tuition at accredited nonpublic K-12 schools, required school supplies, textbooks and instructional materials, annual school fees, transportation to nonpublic schools, extracurricular activity costs, musical instrument rentals, and school field trip fees.

Excludes private tutoring services, yearbooks, class rings, everyday clothing, and SAT/PSAT/ACT testing fees from qualifying expenditures.

Nonpublic schools must comply with Title VI of the Civil Rights Act of 1964 and be institutions where children can legally fulfill compulsory attendance requirements.

Applies to taxable years beginning on or after January 1, 2023.