This bill amends New Jersey's gross income tax law to exclude certain bonuses received by members of the Armed Forces from taxable gross income. Specifically, it introduces a new provision that allows for the exclusion of amounts received during the taxable year as bonuses for reenlistment or voluntary extension of enlistment. This addition aims to provide tax relief to military personnel who serve their country, recognizing the sacrifices they and their families make.

The bill modifies N.J.S.54A:6-7 by adding this exclusion while retaining existing provisions that exempt other forms of compensation related to military service, such as mustering-out payments and housing allowances. 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.