This bill proposes a gross income tax deduction for New Jersey taxpayers who pay state fuel taxes on motor fuel purchases for personal use of their vehicles. The deduction is available to individuals filing as married couples jointly, married persons filing separately, or single taxpayers, and it is capped at $1,000 for the taxable year 2021 and $2,000 for subsequent years. The bill specifies that the deduction is not applicable if the taxpayer has been reimbursed by their employer or if the expenses are deductible under various business or income categories.

Additionally, the bill clarifies that the deduction applies to taxes imposed by the Petroleum Products Gross Receipts Tax Act and the Motor Fuel Tax Act. The act is set to take effect immediately and will apply to purchases made on or after January 1, 2021. This legislation aims to provide financial relief to taxpayers by allowing them to deduct fuel taxes from their gross income, thereby potentially lowering their overall tax burden.