Employers' NJCLASS loan matches would be excluded from taxable income

New Jersey would exclude certain employer student loan matching contributions from gross income tax. The exclusion would cover employees repaying loans issued under New Jersey's College Loans to Assist State Students (NJCLASS) program, when the employer contributes to the employee's 403(b), SIMPLE IRA, or 457(b) retirement plan. The employee must choose the contribution, and the employer's contribution must be based on all or part of the employee's qualifying loan payment. The act would take effect immediately, but the tax exclusion would apply to tax years beginning on or after January 1 of the year after enactment.