NJ bill would give tax credit for student loan payments

Establishes gross income tax credit and corporation business tax credit for student loan payments.

Introduced· 2026-01-13

Who's it for

Who's it for: Everyday People

What it means for you

8/10Helps you

Good for everyday people ·

Cost shift

Plain‑English summary, cross‑checked against the official bill text.

If passed, New Jersey residents who pay student loans could lower their state tax bill or get a refund, while employers could claim a credit for helping employees pay.

Our take

What we think, in plain words.

The bill could help people with student debt keep more of their money, but it also means the state will collect less tax revenue, which could affect services for everyone.

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The facts

What the bill actually says, no spin.

Provides a tax credit to individuals who make student loan payments while working in New Jersey.
Credit equals the monthly loan payment amount, up to a benchmark amount, for each month paid.
Credit cannot reduce tax below zero; any excess can be carried forward for up to seven years.
Employers can claim a credit for payments they make on behalf of qualified employees.
Part‑time employee credit is limited to half of the monthly payment amount.