Provides gross income tax deductions for membership fees, dam project assessments and potable water system project assessments paid to lake associations.

This bill allows New Jersey residents to deduct certain payments made to lake associations from their gross income tax. Specifically, it permits deductions for membership fees, dam project assessments (for dam construction/repair), and potable water system assessments (for safe drinking water systems) paid to qualifying lake associations. These associations must be private groups of property owners with exclusive lakefront rights, not open to the general public. The deduction applies to all taxable years starting January 1 after the bill's enactment.