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 a requirement for 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 also raises the minimum dollar amount in an NJBEST account that can be excluded from financial need evaluations for state scholarships and grants from $25,000 to $50,000. Additionally, it increases the income threshold for taxpayers eligible to deduct contributions to NJBEST accounts from $200,000 to $300,000, allowing for a higher deduction of up to $15,000.

Moreover, the bill introduces new grant opportunities for lower-income taxpayers, including a one-time grant of at least 10% of their initial deposit into an NJBEST account, up to $1,000, for those earning $150,000 or less. It also establishes the NJBEST Advisory Council to advise on program improvements and monitor its effectiveness. Tax credits for employers who make matching contributions to employee NJBEST accounts are included, allowing them to claim a tax credit against the State corporate business tax and the New Jersey Gross Income Tax Act. Employers must report specific details about the NJBEST acc

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