This bill establishes a gross income tax credit for New Jersey residents who pay full-time tuition costs at certain post-secondary institutions. Taxpayers with a gross income of $150,000 or less can receive a credit equal to 10% of the tuition costs paid during the taxable year, with a maximum credit of $1,000. The credit is available for tuition paid for either the taxpayer themselves or for a dependent under the age of 22 who is a resident and a full-time student in good standing at eligible New Jersey institutions, including four-year colleges, county colleges, and accredited vocational schools. However, taxpayers cannot claim this credit if they have already claimed a deduction for the dependent or if they are a dependent of another taxpayer who has claimed the credit.

The intent of the bill is to enhance access to higher education for New Jersey residents, addressing the high costs of tuition that exceed the national average. By providing this tax credit, the bill aims to alleviate some financial burdens associated with pursuing post-secondary education, thereby encouraging more residents to seek higher education and vocational training opportunities. The act is set to take effect immediately and will apply to taxable years beginning on or after January 1 following its enactment.