This bill proposes a gross income tax credit for taxpayers in New Jersey who incur certain expenses related to household pets. Specifically, taxpayers can claim a credit for qualified everyday pet expenses up to $300 and qualified veterinary expenses up to $600 per taxable year, with a total credit limit of $900 per taxpayer. To qualify for this credit, taxpayers must provide documentation proving pet ownership and receipts for the incurred expenses when filing their tax returns.

The bill defines a "household pet" as a dog or cat kept primarily for companionship and typically maintained at the taxpayer's residence, excluding animals confined to veterinary hospitals, educational institutions, breeding businesses, or used by law enforcement. It also outlines what constitutes qualified everyday pet expenses and qualified veterinary expenses, which include essential care items and veterinary services aimed at maintaining the pet's health. 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.