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, 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 organizations 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.