This bill proposes a gross income tax deduction for New Jersey taxpayers who make charitable contributions to nonprofit entities that receive State funds or economic development subsidies during the taxable year. The deduction is capped at $10,000 for married taxpayers filing jointly or individuals filing as heads of household, and $5,000 for single filers, married individuals filing separately, and surviving spouses.

The bill also provides definitions for key terms, including "economic development subsidy," which refers to financial assistance exceeding $500 provided by a State public body to stimulate economic development, and "nonprofit entity," defined as an organization not operated for the profit of private shareholders or individuals. The act is set to take effect immediately and will apply to contributions made in taxable years beginning on or after January 1 following the date of enactment.