Excludes military compensation of military personnel serving outside of this State from gross income tax.

This bill exempts specific military compensation from New Jersey's gross income tax for service members who are domiciled in New Jersey but stationed outside the state. It directly affects New Jersey-resident military personnel serving away from New Jersey, including active duty, reserve, and National Guard members on state active duty. The key provision amends the state tax code to exclude military pay received for service performed outside New Jersey, housing allowances, and mustering-out payments from taxable income. The exemption applies to taxable years ending after the bill's enactment, which took effect immediately upon passage.