Budget & Taxes

This bill creates a refundable tax credit for New Jersey renters whose rent exceeds 35% of their gross income. It directly affects low-to-moderate income residents (earning under $60,000 annually) living in the state, with credit amounts based on income level and location: up to 100% of excess rent for those earning under $25,000 (or under $50,000 in high-cost areas), 75% for middle-income renters, and 50% for higher-income renters in non-high-cost areas. The credit, capped at $1,000 per year, is applied against state income tax and can be claimed retroactively for the previous tax year. Renters receiving federal or state housing subsidies instead receive a credit equal to 1/12 of their unsubsidized rent.

This bill increases the annual cap on tax credits available for neighborhood revitalization projects in New Jersey from $15 million to $65 million. It directly affects businesses that fund qualified neighborhood preservation projects, allowing them to claim larger tax credits against certain business taxes. The key change is raising the total credit limit per fiscal year and adding a carryover provision: if credits aren't fully used in one year, the unused amount rolls over to the next year. This expands funding flexibility for projects under the Neighborhood Revitalization Tax Credit Program, which supports community development through private investment.