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 by motor vehicle 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.

The introduction of this bill enhances the current tax framework, which allows a personal exemption of $1,000 from gross income, by providing an additional deduction specifically for commuter expenses. This change aims to alleviate the financial burden on taxpayers who regularly incur toll costs while commuting for work. 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.