This bill introduces tax exclusions and credits for contributions 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, along with any earnings accrued on these accounts, subject to specific distribution conditions. The bill also establishes penalties for nonqualified distributions and defines key terms such as "eligible taxpayer," "lifelong learning account," and "qualified education expenses," which are limited to instructional courses and training, excluding recreational activities.

Additionally, the legislation provides a Gross Income Tax (GIT) credit for personal contributions to LLAs, with varying percentages based on the taxpayer's filing status and income. Employers can receive a GIT and Corporation Business Tax (CBT) credit equal to 25% of their contributions to employees' LLAs, with small businesses eligible for an extra credit to cover administrative costs. The bill outlines the requirements for establishing and maintaining LLAs, ensuring they are created in New Jersey and exclusively benefit the account holder, while also detailing penalties for nonqualified distributions, which incur a 5% additional tax, with exceptions for certain situations like death or disability. Overall, the bill aims to promote education and training through financial incentives while ensuring proper use of funds.