This bill proposes to exclude from New Jersey's gross income tax any compensation earned by college athletes for the use of their name, image, or likeness, in accordance with the New Jersey Fair Play Act. Specifically, it states that gross income shall not include such compensation during any taxable year in which the taxpayer is a student participating in intercollegiate athletics at a four-year institution of higher education in New Jersey. However, the exclusion is capped at $100,000 per taxable year.

The bill aims to support college athletes by allowing them to earn compensation without it affecting their gross income tax liability. This aligns with the provisions of the New Jersey Fair Play Act, which ensures that student-athletes are not barred from earning money from their personal brand. The act is set to take effect immediately and will apply to taxable years starting on or after January 1 of the year following its enactment.