Allows gross income tax deduction for employees for amounts paid by employers for certain educational assistance programs for employees and for employee's student loans.

This New Jersey bill (A 3556) would allow employees to deduct from their gross income up to $5,250 annually in employer-paid educational assistance (like tuition, fees, or textbooks) and up to $5,250 in employer-paid student loan payments (principal or interest). It directly affects New Jersey employees who receive these benefits from their employers, matching the federal tax exclusion limit under Section 127 of the IRS code. The deduction applies to qualified higher education expenses (as defined by federal law) and student loans used for such expenses, excluding non-educational costs like hobbies. The bill is pending before the Assembly Higher Education Committee and would apply to taxable years starting after enactment.