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 imposed on contributors. The bill also increases 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. Additionally, the income threshold for taxpayers to deduct contributions to NJBEST accounts will rise from $200,000 to $300,000, allowing for a deduction of up to $15,000.

Moreover, the bill 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 maintains existing provisions for taxpayers with gross incomes of $75,000 or less to receive a one-time grant of up to $750, and those with gross incomes of $150,000 or less can receive a one-time grant of up to $500 if the initial deposit comes from an out-of-state account established under section 529 of the federal Internal Revenue Code. The bill also establishes the NJBEST Advisory Council to advise on program improvements and introduces tax credits for employers who make matching contributions to their employees' NJBEST accounts.

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