Eliminates veterans' gross income tax deduction requirement that New Jersey National Guard member serve in federal active duty status.

A1426

ASSEMBLY, No. 1426

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ERIK K. SIMONSEN

District 1 (Atlantic, Cape May and Cumberland)

Co-Sponsored by:

Assemblyman DeAngelo, Assemblywoman Dunn and Assemblyman
Rumpf

SYNOPSIS

���� Eliminates veterans' gross income tax deduction
requirement that New Jersey National Guard member serve in federal active duty
status.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
eliminating the veterans� gross income tax deduction
requirement that a New Jersey National Guard member serve in federal active
duty status, and amending N.J.S.54A:3-1.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� N.J.S.54A:3-1 is amended
to reads as follows:

���� 54A:3-1.� Personal exemptions
and deductions.� Each taxpayer shall be allowed personal exemptions and
deductions against his gross income as follows:�

���� (a)�� Taxpayer.� Each taxpayer
shall be allowed a personal exemption of $1,000.00 which may be taken as a
deduction from his New Jersey gross income.

���� (b)�� Additional exemptions.
In addition to the personal exemptions allowed in (a), the following additional
personal exemptions shall be allowed as a deduction from gross income:�

���� 1.��� For the taxpayer's
spouse, or domestic partner as defined in section 3 of P.L.2003, c.246
(C.26:8A-3), who does not file separately - $1,000.00.�

���� 2.��� For each dependent who
qualifies as a dependent of the taxpayer during the taxable year for federal
income tax purposes - $1,500.00.�

���� 3.��� Taxpayer 65 years of age
or over at the close of the taxable year - $1,000.00.�

���� 4.��� Taxpayer's spouse 65
years of age or over at the close of the taxable year - $1,000.00.�

���� 5.��� Blind or disabled
taxpayer - $1,000.00.

���� 6.��� Blind or disabled spouse
- $1,000.00.

���� 7.��� Taxpayer who is a
veteran honorably discharged or released under honorable circumstances from
active duty in the Armed Forces of the United States, a reserve component
thereof, or the National Guard of New Jersey
[
in
a federal active duty status
]
,
as those terms are used in N.J.S.38A:1-1 -� $3,000.

���� (c)�� Special Rule.� The
personal exemptions allowed under this section shall be limited to that
percentage which the total number of months within a taxpayer's taxable year
under this act bears to 12.� For this purpose 15 days or more shall constitute
a month.�

���� (d)�� (Deleted by amendment,
P.L.1993, c.178).

���� (e)�� Nonresidents.� For
taxable years to which a certification pursuant to section 3 of P.L.1993, c.320
(C.54A:2-1.2) applies, a nonresident taxpayer shall be allowed the same
deduction for personal exemptions as a resident taxpayer.� However, if (1) the
nonresident taxpayer's gross income which is subject to tax under this act is
exceeded by (2) the gross income which the nonresident taxpayer would be
required to report under this act if the taxpayer were a resident by more than
$100.00, the taxpayer's deduction for personal exemptions shall be limited by
the percentage which (1) is to (2).

(cf: P.L.2016, c.57, s.8)

���� 2.��� This act shall take
effect immediately and apply to taxable years beginning on or after January 1
next following the date of enactment.

STATEMENT

���� This bill eliminates the
requirement that a New Jersey National Guard member serve in federal active
duty status in order to qualify for the veterans� gross income tax deduction.

���� A member of the New Jersey
National Guard, who has been honorably discharged or otherwise been released
under honorable circumstances, may claim a gross income tax deduction of $3,000
per taxable year.� Under this bill, this veterans� gross income tax deduction
is available regardless of whether the servicemember claiming the deduction
was, at any point, called up for federal active duty status (meaning military
service under the jurisdiction of the United States Secretary of Defense
pursuant to 10 U.S.C. s.1209).

���� This bill honors the service
of the men and woman who enlist in the New Jersey National Guard.� These
servicemembers, as with all members of our armed forces, dedicate their time,
make personal sacrifices, and incur costs for the benefit of the State and its
residents.� Accordingly, these servicemembers deserve the same honor,
recognition, and tax relief already afforded under State law to veterans of
other military branches.�