NJ Republican lawmakers urge Gov. Sherrill to opt into federal education tax credit program
NEW JERSEY — Three Republican state lawmakers are urging Gov. Mikie Sherrill to opt New Jersey into a federal education tax credit program, saying the state could miss out on an estimated $911 million in scholarship funding if it does not participate.
Assembly members Michael Inganamort, Gerry Scharfenberger and Dawn Fantasia said Monday that New Jersey has until Jan. 1, 2027, to opt into the program. The lawmakers are also sponsoring legislation that would require the state to participate if Sherrill does not voluntarily enroll New Jersey.
“The Democratic Governor of Colorado said it best: ‘You’d have to be crazy not to opt in,'” Inganamort said (R-Morris).
According to the lawmakers, 30 states under both Republican and Democratic leadership have indicated they will participate, with New York the latest to do so.
Sherrill has indicated she would not make a decision until she could review regulations governing the program. The U.S. Department of the Treasury and Internal Revenue Service published those rules Thursday.
Under the program, taxpayers can receive a federal tax credit of up to $1,700 for contributions to qualifying scholarship-granting organizations.
The lawmakers said New Jersey residents can claim the federal tax credit regardless of whether the state opts into the program. However, if New Jersey does not participate, contributions from state residents would go toward scholarships in participating states rather than New Jersey.
“New Jersey is leaving non-taxpayer funds on the table at a time when students and property taxpayers are feeling the crunch of state aid cuts to many districts throughout the state, including in the Highlands region. Educational opportunities shouldn’t be subject to partisan debate,” said Fantasia (R-Sussex), a lifelong educator and administrator. “If our governor would do the right thing, this program could help offset lost state funding for qualifying students in districts that have experienced cuts over the years, increasing access to tutoring, books, school supplies, special education services and more. If not, we will look to our legislative colleagues to step up.”
The program has been described as a federal school choice tax credit because scholarship-granting organizations could use donations to help cover a range of educational expenses, including private school tuition, homeschooling materials and tutoring for students attending public schools.
To qualify for scholarships, students must be eligible to enroll in a K-12 school and live in a household with income that does not exceed 300% of the area’s median gross income.
Scharfenberger, who teaches at Monmouth University, said the program could provide families with additional educational options without relying on state taxpayer funding.
“New Jersey’s school funding system is failing K-12 students as it picks winners and losers based on some mysterious formula that funnels billions into poor-performing school districts and leaves others with no choice but to cut academic programs, fire teachers and increase class sizes. The Education Freedom Tax Credit gives every student the chance to succeed no matter their zip code. Parents want the best outcomes for their children, and this is a way to do it with charitable dollars instead of at the expense of the taxpayers.”
New Jersey has until Jan. 1 to opt into the program and until Feb. 15, 2027, to submit a list of approved scholarship-granting organizations to the U.S. Department of the Treasury, according to the lawmakers.
Inganamort, Scharfenberger and Fantasia are sponsors of A4777, which would require New Jersey to participate in the federal tax credit program. The bill has been referred to the Assembly Education Committee.
“New Jersey needs to show the nation that we put our students ahead of politics. New Jersey students deserve to be in the front of the line for scholarships,” Inganamort said.
