This bill proposes a gross income tax deduction for income earned in the form of tips, supplementing chapter 3 of Title 54A of the New Jersey Statutes. Taxpayers will be allowed to deduct the amount of tip income received for services rendered during the taxable year, provided that this income is reported in statements to the employer as required by federal law or through other documentation specified by the Director of the Division of Taxation.

The bill mandates that the Director of the Division of Taxation adopt necessary rules and regulations to implement its provisions. It is set to take effect immediately and will apply to taxable years beginning on or after January 1 of the year following its enactment. This legislation aims to provide tax relief for individuals who earn a significant portion of their income through tips, ensuring that such income is recognized in the state's tax code.