Extends certain federal income tax advantages of individual health savings accounts to individual taxpayers under the New Jersey gross income tax.

This bill would extend New Jersey's tax treatment of health savings accounts (HSAs) to mirror federal tax treatment. It would allow New Jersey taxpayers to deduct HSA contributions that are deductible for federal income tax purposes, exclude HSA growth from gross income, and exempt qualified medical expense distributions from NJ taxation. The bill would apply to individuals covered by high-deductible health plans, which require minimum deductibles ($1,000 for self-only coverage, $2,000 for family coverage) and have out-of-pocket maximums ($5,000 for self-only, $10,000 for family). This would align New Jersey tax law with federal law for HSAs, which currently provide tax advantages not available under NJ gross income tax.