This bill introduces a gross income tax deduction of up to $5,000 for disabled veterans who incur expenses related to the purchasing, training, or maintaining of service animals. Eligible expenses include costs for food, grooming, and veterinary care. The bill specifies that this deduction is separate from any medical expense deductions currently allowed under New Jersey law, thereby providing additional financial relief for disabled veterans.

The bill defines a "disabled veteran" as a resident who has been honorably discharged from the Armed Forces and has a service-connected disability as recognized by the United States Veterans Administration. Additionally, it aligns the definition of "service animal" with that established by the federal Americans with Disabilities Act of 1990, which specifies that service animals are dogs trained to assist individuals with disabilities. The act is set to take effect immediately and will apply to taxable years beginning on or after January 1, 2024.