Imposes gross income tax at rate of 100 percent on amounts received by resident taxpayers from Anti-Weaponization Fund.

This bill requires New Jersey residents who receive money from the Anti-Weaponization Fund to pay a 100 percent state income tax on those funds. It directly affects individuals approved to claim relief from this fund, which was created by a federal settlement related to a lawsuit against the Internal Revenue Service. Under the legislation, recipients cannot use any standard tax deductions, exemptions, or credits to reduce the tax owed on these payments. The law takes effect immediately for any taxable years beginning on or after January 1, 2026, and is administered by the state's Division of Taxation.