Allows taxpayers to utilize alternative method of depreciation of certain expenditures in connection with construction of new affordable housing developments.

This New Jersey bill (S 1422) modifies state tax rules to encourage new affordable housing development. It allows developers to deduct a larger portion of construction costs over a 10-year period based on the percentage of affordable units in a project - specifically, 2 times the ratio of affordable units to total units. To qualify, projects must include at least 20% affordable units (for households earning ≤80% of regional median income), avoid federal/subsidy funding for affordable units, and begin construction after the bill's effective date. The change applies to eligible construction costs for developments completed in the 2025 tax year and later.