This bill establishes a tax credit for taxpayers in New Jersey, allowing them to claim a credit equal to 25 percent of qualifying educational expenditures made on behalf of a dependent child during the taxable year. The maximum credit for each qualifying dependent child is capped at $500. The bill defines "qualified educational expenditure" to include various expenses such as tuition for nonpublic schools, required school supplies, instructional materials, annual school fees, transportation costs to nonpublic schools, and fees for extracurricular activities and school field trips.

Additionally, the bill specifies that a "nonpublic school" is an elementary or secondary school in New Jersey, other than a public school, that complies with the Civil Rights Act of 1964. However, certain expenses are explicitly excluded from the definition of qualified educational expenditures, including private tutoring services, school yearbooks, class rings, everyday clothing, and standardized testing fees. The act is set to take effect immediately and will apply to taxable years beginning on or after January 1, 2023.