A5485

New Jersey bill provides a gross income tax exclusion for attorney's fees and costs related to unlawful discrimination, retaliation, and qui tam.

This bill amends New Jersey's gross income tax to exclude attorney's fees and costs received by victims in cases of unlawful discrimination, retaliation, and qui tam actions. It ensures these fees and costs are not taxable for state income purposes, aligning with federal tax relief provisions enacted in 2004. The exclusion applies to both the attorney's fees and the victim's recovery, preventing double taxation. The bill takes effect immediately for taxable years beginning after January 1 of the year following its enactment.