Allows gross income tax deduction for charitable contributions made to nonprofit entities supported by State funds or subsides.

This bill allows New Jersey taxpayers to deduct charitable contributions made to nonprofits that received state funds or economic development subsidies during the same tax year. The deduction is capped at $10,000 for joint filers or heads of household, and $5,000 for single filers, separate filers, or surviving spouses. It applies only to nonprofits that are independent of government (not operated for private profit and not part of federal/state/local governments). Contributions to nonprofits receiving standard government contracts (like procurement for construction) are excluded. The policy change takes effect for tax years beginning January 1 after enactment.