Tax Credit for Homeschooling Expenses

The American Council supports S3930 and urges every New Jersey legislator to vote yes. This bill does something straightforward and just: it recognizes that families who take direct responsibility for their children's education still pay taxes that fund public schools, and it returns a portion of their own money to them through a targeted, non-refundable gross income tax credit for qualifying educational expenses.

Under S3930, a taxpayer whose gross income does not exceed $150,000 may claim a credit equal to actual qualified homeschool expenses, up to $1,000 per child or dependent, with the total credit for any one taxpayer capped at $3,000 per taxable year. The bill defines qualified homeschool expenses carefully to cover educational textbooks, workbooks, teachers' edition books, teaching and self-learning computer software, curriculum rental fees, and membership fees for libraries and academic institutions. These are the core instructional costs of a rigorous home education, and targeting relief toward them reflects real legislative discipline.

The bill is equally clear about what it does not cover. Hardware and setup costs such as computers, desks, and boards are excluded. Consumable supplies including pencils, pens, and paper are excluded. Internet provider fees are excluded. We respect these boundaries. They keep the credit focused on curriculum and instruction rather than general household expenses, which strengthens the bill's integrity and its prospects for broad support.

For families with multiple children, the per-child structure up to the $3,000 household cap is meaningfully generous. A family educating three children could receive the full $3,000 credit if expenses warrant it. The income threshold ensures the benefit flows to working and middle-class families who feel the financial weight of homeschooling most directly. Because the credit is non-refundable, it reduces tax liability dollar for dollar but cannot produce a refund beyond what a family owes, a reasonable fiscal guardrail.

The American Council holds that parents bear the primary responsibility for the formation and education of their children, and that the state should not penalize families for exercising that responsibility faithfully. S3930 does not establish a new government program or impose new oversight. It supplements existing tax law by adding a credit that acknowledges real costs borne by real families. Passing this bill is an act of fairness, and we urge the New Jersey Senate and Assembly to move it forward without delay.