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

S 1875 exempts specific military compensation from New Jersey's state income tax for New Jersey residents serving outside the state. It directly affects New Jersey-domiciled military personnel stationed in other states or overseas by excluding their active-duty pay, mustering-out payments, and housing allowances from taxable income. The bill amends New Jersey tax law (N.J.S.54A:6-7) to create this exclusion for service performed outside New Jersey. This policy change provides tax relief to military members who maintain New Jersey residency while serving in other locations.