This bill allows volunteer firefighters and members of first aid or rescue squads in New Jersey to claim an additional income tax deduction of $5,000, provided they meet specific qualifications. To qualify, firefighters must have volunteered for the entire tax year, performed at least 60% of their fire duty, and attained the rank of Firefighter I Certified by January 1 of the tax year. Similarly, first aid or rescue squad members must have volunteered for the entire year, completed 10% of rescue duty, and either passed an approved training program or qualified as an emergency medical technician by the same date. The bill defines "duty hours" as the time volunteers commit to respond to alarms, regardless of whether an alarm occurs.

To facilitate the deduction process, officials from fire departments and rescue squads are required to submit lists of eligible members to the respective state departments by March 31 each year. These lists will be used by the Director of the Division of Taxation to verify claims for the deduction. The bill also includes provisions for penalties against officials who submit false information with the intent to aid tax evasion. The act is set to take effect immediately and will apply to tax years commencing after December 31 following its enactment.