This bill introduces a gross income tax deduction for eligible taxpayers who incur expenses for the care of certain elderly relatives. Specifically, it allows taxpayers who reside with a qualifying close relative—defined as a grandparent, step-grandparent, parent, or other specified relatives aged 70 or older—to deduct eligible expenses from their gross income. The deduction is capped at $3,000 per qualifying relative, with a total maximum deduction of $6,000 per taxpayer per taxable year. To qualify, the taxpayer's New Jersey gross income must be less than $200,000 and not exceed 400 percent of the federal poverty level for their household size.

Eligible expenses include necessary costs for food, housing, utilities, transportation, medical care, and personal care directly related to the care of the qualifying relative. However, expenses that have been reimbursed or otherwise deducted from the taxpayer's gross income are excluded. Additionally, taxpayers claiming this deduction are required to maintain receipts or documentation of their eligible expenses, as specified by the Director of the Division of Taxation in the Department of the Treasury. The bill is set to take effect immediately and will apply to taxable years beginning on or after January 1 of the year following its enactment.