This bill introduces a gross income tax deduction for New Jersey taxpayers who pay state fuel taxes on motor fuel purchases for personal use of their vehicles. Taxpayers filing as married couples, individuals, or separately can deduct the amount of New Jersey fuel taxes paid during the taxable year from their gross income, provided these amounts are not reimbursed by an employer or deducted in other specific contexts, such as business profits or medical expenses. The deduction is capped at $1,000 for the 2020 taxable year and $2,000 for subsequent years.

The bill specifies that the deduction applies to taxes imposed by the Petroleum Products Gross Receipts Tax Act and the Motor Fuel Tax Act. It is designed to benefit taxpayers at any income level and in any filing status, encouraging personal vehicle use while alleviating some of the financial burden associated with fuel taxes. The act is set to take effect immediately, applying to purchases made on or after January 1, 2020.