SENATE MILITARY AND VETERANS' AFFAIRS COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, Nos. 129 and 1025

STATE OF NEW JERSEY

DATED:  FEBRUARY 22, 2018

      The Senate Military and Veterans' Affairs Committee reports favorably a Senate Committee Substitute for Senate Nos. 129 and 1025.

      This substitute excludes military pay for service in a combat zone or for hospitalization as the result of injury while serving in a combat zone from taxable gross income under the New Jersey gross income tax. A combat zone is any area the President of the United States designates by Executive Order as an area in which the U.S. Armed Forces are engaging or have engaged in combat. An area usually becomes a combat zone and ceases to be a combat zone on the dates the President designates by Executive Order.

      This substitute also allows an exclusion for certain military compensation from the gross income tax for those servicemen and women domiciled in New Jersey but serving their duty outside of the State of New Jersey.