Provides gross income tax exclusion for military compensation paid to State residents for out-of-State military service.

This bill exempts certain military compensation from New Jersey's state income tax for residents who serve outside the state. Specifically, it excludes pay received by New Jersey-domiciled service members deployed or stationed out-of-state for at least six months during a tax year, including housing allowances, subsistence payments, and mustering-out benefits. The policy directly affects New Jersey residents serving in the U.S. Armed Forces who are not stationed within New Jersey for a significant portion of the year. The bill amends New Jersey tax code section 54A:6-7 and would take effect immediately upon enactment. (Note: The bill is pending, introduced January 13, 2026, and not yet enacted.)