Allows $250 gross income tax deduction for members of military on active duty.
Impact
The introduction of A1170 reflects an intention to support military personnel financially, addressing a pivotal element of state tax policy. If enacted, it would amend Title 54A of the New Jersey Statutes to include this specific deduction, allowing qualified military members to optimize their tax burden. This initiative not only recognizes their service but also seeks to improve their overall financial well-being while serving in various branches of the armed forces, including the Army, Navy, Marine Corps, Air Force, and Coast Guard.
Summary
Assembly Bill A1170 seeks to provide a gross income tax deduction of $250 for military personnel who are on active duty for the entire taxable year in New Jersey. This legislative move acknowledges the contributions of active service members and aims to ease their financial burden by reducing their taxable income during their service period. The bill is designed to enhance the lives of the approximately 7,669 active duty military personnel residing in the state, as recognized by data from the U.S. Department of Defense.
Contention
While the bill is aimed at providing relief to military personnel, discussions surrounding the potential fiscal impact on state revenues may emerge during legislative deliberations. Legislators concerned about the implications of tax deductions on state funding might question whether the revenue loss from this initiative could affect other vital public services. Additionally, stakeholders may debate if this deduction adequately addresses the broader challenges faced by military families, encouraging more comprehensive financial support measures.