New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 28 - REAL PROPERTY TAX EXEMPTION FOR PERMANENTLY AND TOTALLY DISABLED WAR VETERANS, OR SURVIVING SPOUSES, SURVIVING CIVIL UNION PARTNERS, OR SURVIVING DOMESTIC PARTNERS OF DISABLED WAR VETERANS AND SURVIVING SPOUSES, SURVIVING CIVIL UNION PARTNERS, OR SURVIVING DOMESTIC PARTNERS OF SERVICEPERSONS
Subchapter 2 - CONDITIONS OF ELIGIBILITY AND QUALIFICATIONS
Section 18:28-2.8 - Ineligible discharge

(a) A disenrollment certificate or other form of release terminating temporary service in a military or naval branch of the Armed Forces on a voluntary and part-time basis without pay, or a release from or deferment of induction into active military service cannot be accepted as proof of the discharge requirement.

(b) Clemency discharge is a "neutral discharge" according to the United States Justice Department. Although it is not less than honorable, it is something other than honorable. As such it does not meet the requirement of honorable discharge.