This bill introduces tax exclusions and credits for contributions made to lifelong learning accounts (LLAs) in New Jersey, aimed at enhancing worker training and education. Eligible taxpayers can exclude up to $2,500 of employer contributions to their LLAs from their gross income for the taxable year, and earnings accrued in these accounts are also excluded from gross income under specific conditions. The bill defines key terms such as "eligible taxpayer," "lifelong learning account," and "qualified education expenses," while also establishing penalties for nonqualified distributions.

Additionally, the legislation provides a Gross Income Tax (GIT) credit for personal contributions to LLAs, with varying percentages based on filing status and contribution amounts. Employers can receive a credit of 25% for contributions made to their employees' LLAs, capped at $2,500 per employee, and small businesses may qualify for an extra credit for administrative costs. The bill specifies that "qualified education expenses" exclude recreational or leisure courses and sets requirements for the establishment of LLAs, ensuring they are created in New Jersey and exclusively benefit the account holder. Overall, the bill aims to incentivize education and training for individuals aged 18 to 70 while ensuring proper administration of the accounts.