This bill allows eligible volunteer firefighters and members of first aid or rescue squads in New Jersey to claim an additional $2,000 gross income tax exemption. To qualify for this exemption, volunteers must serve for the entire tax year and meet specific performance criteria: firefighters must respond to at least 60 percent of regular alarms and drills and attain the rank of Firefighter I Certified, while first aid and rescue squad members must respond to at least 10 percent of regular alarms and 60 percent of drills, and complete an approved training program or qualify as an emergency medical technician. Additionally, volunteers with duty hours must complete at least 400 duty hours in a calendar year, with no more than 50 percent of those hours being for drills.

The bill also establishes a process for verification of eligibility, requiring officials in charge of fire departments and rescue squads to submit annual lists of qualifying members to the appropriate state agencies. The Director of the Division of Taxation, in consultation with the Commissioners of Community Affairs and Health, is tasked with adopting necessary rules and regulations to implement the provisions of the bill. This act is set to take effect immediately and will apply to taxable years beginning on or after January 1 following its enactment.