Provides gross income tax exclusion for military compensation paid to State residents for out-of-State military service.

This bill (S 2347) excludes certain military compensation from New Jersey's gross income tax for residents who serve outside the state. It directly affects New Jersey-domiciled service members stationed or deployed out-of-state for at least six months during a taxable year. The exclusion covers military pay, mustering-out payments, and housing/subsistence allowances received while serving in the U.S. Armed Forces or New Jersey National Guard on State active duty. The policy change means eligible service members will not pay New Jersey income tax on these specific military benefits. The bill applies to taxable years beginning after its enactment date.