This bill proposes a gross income tax deduction for taxpayers who earn income in the form of tips. Specifically, it allows a deduction equal to the amount of tip income reported to employers in accordance with federal tax law, specifically subsection (a) of section 6053 of the Internal Revenue Code, or any other documentation required by the Director of the Division of Taxation.

Additionally, the bill mandates that the Director of the Division of Taxation adopt necessary rules and regulations to implement its provisions. The act is set to take effect immediately and will apply to taxable years beginning on or after January 1 of the year following its enactment.