This bill seeks to enhance the New Jersey Better Education Savings Trust (NJBEST) program by improving its management and providing additional financial incentives for contributors. Key amendments include requiring the Higher Education Student Assistance Authority to select investment managers based on the lowest fees and costs, rather than solely on their impact on yield. The bill raises the minimum dollar amount in an NJBEST account that is excluded from financial need evaluations for state scholarships and grants from $25,000 to $50,000. It also increases the income threshold for taxpayers eligible to deduct contributions to NJBEST accounts from $200,000 to $300,000, allowing a deduction of up to $15,000.

Additionally, the bill introduces new grant opportunities for taxpayers with gross incomes 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 advise on program improvements and monitor its effectiveness in making college education more accessible. The bill also proposes a one-time grant of up to $500 for taxpayers with a gross income of $150,000 or less, contingent upon their initial deposit into an NJBEST account being sourced from an out-of-state account established under section 529 of the federal Internal Revenue Code. Furthermore, tax credits for employers who make matching contributions to employee NJBEST accounts are included, with specific reporting requirements to the Division of Taxation, aiming to encourage savings for higher education and improve the program's accessibility and effectiveness.

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