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. Taxpayers can deduct contributions made during the taxable year, with a maximum deduction of $10,000 for married couples filing jointly or heads of household, and $5,000 for single filers, married individuals filing separately, or surviving spouses.

The bill defines "economic development subsidy" as financial assistance exceeding $500 provided to a business entity by a State public body to stimulate economic development, which includes various forms of financial incentives. However, it excludes contracts for goods, services, or construction that are not subsidized. Additionally, it defines "nonprofit entity" as an organization not operated for the profit of private shareholders and not part of government entities. The act is set to take effect immediately and will apply to contributions made in taxable years beginning after January 1 following its enactment.