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A 808

Provides a STEM graduate retention tax credit for certain employers who pay certain employees' education loan debt.

2026-2027 Regular Session Introduced by Vicky Flynn and 2 co-sponsors

The bill provides up to $5,000 per qualified STEM employee per year in tax credits for employers who help repay their employees’ education loans, to retain STEM graduates in New Je

Introduced, Referred to Assembly Science, Innovation and Technology Committee
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WeVote Research Nonpartisan
Bill Summary · A 808

Bill Summary – A 808 (New Jersey, Session 222)

Title

Provides a STEM graduate retention tax credit for certain employers who pay certain employees' education loan debt.

Purpose and Intent

  • To encourage New Jersey STEM graduates to remain in-state by offering tax credits to employers who help their qualified STEM employees repay education loan debt.
  • Aims to reduce brain drain of young, skilled workers by making New Jersey more attractive for both graduates and employers that hire them.

Key Provisions

1) Corporate Business Tax (CBT) Credit

  • A taxpayer may claim a credit against the New Jersey CBT for the privilege period.
  • Credit amount: Equal to the taxpayer’s payments for the privilege period of qualified STEM employee education loan debt funded by the employer as part of the employee’s full-time remuneration, up to $5,000 per qualified STEM employee per calendar year.
  • Eligible recipient: A “qualified STEM employee” defined as:
    • A STEM baccalaureate graduate,
    • A resident of New Jersey,
    • Employed full-time at a regular work location in New Jersey.
  • Definition of “Qualified STEM baccalaureate”:
    • Graduated with a baccalaureate degree in STEM from a New Jersey public institution of higher education,
    • Has an outstanding balance with a state or federal qualified education loan program and is not in default,
    • Certified by the Higher Education Student Assistance Authority (HESAA) as a qualified employee.

2) Gross Income Tax (GIT) Credit

  • A taxpayer may claim a credit against the Gross Income Tax for the taxable year.
  • Credit amount: Equal to the taxpayer’s payments for the taxable year of qualified STEM employee education loan debt funded by the employer as part of the employee’s full-time remuneration, up to $5,000 per qualified STEM employee per calendar year.
  • Eligible recipient and definitions mirror the CBT provisions:
    • “Qualified STEM employee” and “Qualified STEM baccalaureate” have the same definitions as in the CBT section.

3) STEM Baccalaureate Recruitment Program

  • The Higher Education Student Assistance Authority (HESAA) is tasked with establishing a STEM baccalaureate recruitment program.
  • Purpose of the program: Identify and certify qualified STEM baccalaureates located in New Jersey who are likely to be long-term contributors to the local economy.
  • Function: Recruit and certify graduates with STEM degrees from New Jersey public institutions.

4) Effective Date and Applicability

  • Effective immediately upon enactment.
  • Sections 1 and 2 apply to loan debt paid on or after January 1 following enactment.

Who Is Affected

  • Employers with qualifying STEM graduates employed in New Jersey.
  • Qualified STEM employees: New Jersey residents who hold a STEM baccalaureate from a New Jersey public institution, are employed full-time at a New Jersey work location, and have an outstanding (non-default) student loan.
  • HESAA: Responsible for certifying qualified employees and running the recruitment/certification program.

Timeline and Procedural Notes

  • Referred to as of January 13, 2026 (Introduced in 2026-01-13, Assembly Science, Innovation and Technology Committee).
  • The act provides immediate effectiveness, with sections 1 and 2 retroactively applying to debt paid starting January 1 after enactment.
  • The bill requires ongoing administration by HESAA to certify employees and support the recruitment program.

Summary of Impact

  • Financial: Employers can receive up to $5,000 per qualified STEM employee per calendar year as a tax credit (CBT and GIT). The combined program creates a potential tax saving for participating employers.
  • Workforce: Aims to retain STEM graduates in New Jersey by reducing the financial burden of education loans on new hires.
  • Economic: Supports local economy by keeping skilled STEM workers in-state and linking private sector recruitment to a state-run certification program.

If you’d like, I can provide a side-by-side comparison with existing NJ tax credit programs or estimate potential credits under hypothetical employer sizes.

Compiled from official sources — confirm details with the bill’s official record.

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