Eliminates requirement under veterans' gross income tax exemption that taxpayer serve in active duty status or federal active duty status to qualify for exemption.

This bill (S 1582) removes a requirement that New Jersey veterans must have served in active duty or federal active duty status to qualify for a $6,000 tax exemption on gross income. It directly affects honorably discharged veterans of the U.S. Armed Forces, reserve components, or New Jersey National Guard who previously needed active duty service to claim this exemption. The key change modifies New Jersey tax code (N.J.S.54A:3-1(b)(7)) to eliminate the active duty language, allowing eligible veterans to claim the exemption regardless of their service status. The policy change takes effect immediately for taxable years beginning after enactment.