This bill proposes a tax credit for resident taxpayers in New Jersey who incur expenses for medical insurance premiums and insurance deductible medical expenses. Specifically, individual filers or married individuals filing separately with a gross income not exceeding $65,000, as well as married individuals filing jointly or heads of household with a combined gross income not exceeding $130,000, would be eligible for this credit. The amount of the tax credit would be calculated as the total of medical insurance costs incurred during the taxable year minus 8.5 percent of the taxpayer's gross income.

Additionally, the bill stipulates that taxpayers cannot claim the tax credit for any expenses for which they have already claimed a deduction under existing law. It also mandates that the Director of the Division of Taxation, in collaboration with the Commissioner of Health, promote the availability of these tax credits to encourage residents to seek regular medical care. The act is set to take effect immediately and will apply to taxable years beginning on or after January 1 of the year following its enactment.