Singleton Bill to Exclude Military Compensation to NJ National Guard from Income Tax Passes Committee

TRENTON – Legislation sponsored by Senate Military and Veterans’ Affairs Committee Chair Troy Singleton that excludes United States military compensation paid to members of units of the New Jersey National Guard from gross income tax was passed by the Senate Military and Veterans’ Affairs Committee today.

“Our New Jersey National Guard plays a vital role in our safety and security, especially in times of emergency and natural disaster,” said Senator Singleton (D-Burlington). “These service men and women put their lives in danger when we need them most. By excluding their military compensation from their gross income taxes, we are demonstrating our appreciation for their service and bravery with this added financial benefit.”

The bill, S-2536, would exclude from income, under the New Jersey gross income tax, compensation paid by the United States for services performed while on certain service duty by members in units of the New Jersey National Guard and reserve components of the United States Armed Forces.

Under the bill, the income exclusion would apply to monthly or weekend drills, the two-week annual training and any emergency mobilization as ordered by the Governor or the President.  The exclusion would not include initial training such as basic training and advanced individual training.  Qualifying veterans are eligible for exemption up to $3,000 on their income tax return if they were honorably discharged.

The bill was released from committee by a vote of 5-0, and next heads to the Senate Budget and Appropriations Committee for further consideration.