This bill seeks to improve the New Jersey Better Education Savings Trust (NJBEST) program by enhancing its management and providing greater financial incentives for contributors. Key changes include a requirement for the Higher Education Student Assistance Authority to select investment managers based on the lowest fees and costs, and an increase in the minimum amount in an NJBEST account that is excluded from financial need evaluations for state scholarships and grants from $25,000 to $50,000. Additionally, the income threshold for taxpayers eligible to deduct contributions to NJBEST accounts is raised from $200,000 to $300,000, allowing for a deduction of up to $15,000.

The bill also introduces new grant opportunities for taxpayers with an annual gross income of $150,000 or less, offering a one-time grant of at least 10% of the initial deposit (up to $1,000) and an additional $100 for each year they maintain an automated investment plan. It establishes the NJBEST Advisory Council to provide guidance on program improvements and monitor its effectiveness, consisting of various stakeholders including state officials and public members. Furthermore, the bill introduces tax credits for employers who make matching contributions to their employees' NJBEST accounts, allowing them to claim credits based on total contributions made during the taxable year.

Statutes affected:
Introduced: 54A:3-12, 18A:71B-42.1