This bill amends New Jersey's tax code to exempt certain net gains or income from the sale, exchange, or other disposition of qualified small business stock from being included in gross income. Specifically, it states that these gains or income will not be subject to state taxation if they are already exempt from federal taxation under section 1202 of the federal Internal Revenue Code of 1986.

The act is set to take effect immediately and will apply to taxable years beginning on or after January 1 of the year following its enactment, which is approved for June 30, 2025. This change aims to encourage investment in small businesses by aligning state tax policy with federal tax exemptions.