This bill modifies the eligibility requirements for the retirement income exclusion by increasing the income threshold from which taxpayers can still qualify for the exclusion. Specifically, it raises the limit on income from certain sources, such as salaries and business profits, from $3,000 to $25,000 for individuals aged 62 and older. This change allows more taxpayers to benefit from the retirement income exclusion, which is designed to reduce their taxable income.

Additionally, the bill maintains a cap on total gross income, stipulating that taxpayers with a gross income exceeding $100,000 will remain ineligible for the exclusion, regardless of their income from the specified sources. This ensures that the exclusion is targeted towards lower and middle-income retirees while still providing a more generous threshold for qualifying income. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 54A:6-15