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Bill

Bill

A 940

Allows $250 gross income tax deduction for members of military on active duty.

2026-2027 Regular Session Introduced by Joe Danielsen and 1 co-sponsor

New Jersey bill creates $250 income tax deduction for active duty military members to provide modest financial support and recognition of military service.

Introduced, Referred to Assembly Military and Veterans' Affairs Committee
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Bill Summary · A 940

Legislative bill overview

Bill A 940 would provide New Jersey active duty military members with a $250 gross income tax deduction. This is a relatively modest tax benefit targeted specifically at service members earning income in the state. The bill was introduced in January 2026 and is currently under review by the Assembly Military and Veterans' Affairs Committee.

Why is this important

Active duty military personnel often face unique financial pressures including frequent relocations, dual-income complications, and service-related expenses. Tax relief measures can meaningfully support this demographic, though the $250 deduction represents a modest benefit depending on income levels. States increasingly use tax incentives as a recruitment and retention tool for military families.

Potential points of contention

  • Limited benefit scope: A $250 deduction provides minimal tax relief for most service members; critics may argue it's symbolically meaningful but practically insufficient, while proponents may see it as a fiscally responsible starting point
  • Definition and eligibility questions: Unclear whether the deduction applies to all active duty service members or has income/residency restrictions, and whether it includes National Guard and Reserve members
  • Revenue impact: The fiscal cost to New Jersey depends on how many eligible service members claim the deduction; state budget concerns may limit enthusiasm for expansion

Compiled from official sources — confirm details with the bill’s official record.

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