This bill amends New Jersey's gross income tax law to provide an exclusion for military compensation received by residents who serve in the Armed Forces outside of the state. Specifically, it allows for a tax exclusion for compensation paid to individuals who are domiciled in New Jersey but are stationed or deployed out-of-state for at least six months during the taxable year. This change aims to support military personnel by alleviating their tax burden while they serve away from home.

The bill modifies N.J.S.54A:6-7 by adding new provisions that clarify the eligibility for this tax exclusion. It specifies that the exclusion applies to compensation for service performed by individuals who are either not domiciled in New Jersey or are domiciled in the state but stationed or deployed outside for the required duration. The act is set to take effect immediately and will apply to taxable years beginning after its enactment.