This bill proposes a gross income tax deduction of up to $5,000 for taxpayers who incur specific commuter expenses during a taxable year. Commuter expenses are defined as the tolls paid by taxpayers commuting to and from their workplace, which must be located within New Jersey or a contiguous state. The bill explicitly states that certain costs are excluded from this deduction, including fines, penalties, administrative fees, amounts reimbursed by employers, and expenses that are deductible under federal or state law as business expenses.

In addition to the existing personal exemption of $1,000 that taxpayers can deduct from their gross income, this bill allows for an additional deduction specifically for commuter expenses. This change aims to provide financial relief to taxpayers who face commuting costs, thereby enhancing their overall tax benefits. The bill is set to take effect immediately and will apply to taxable years beginning on or after January 1 of the year following its enactment.