Bill > A1106

Introduced Session

This bill provides State taxpayers with a gross income tax deduction for functional improvements and repair and maintenance performed on a taxpayer's primary residence. Specifically, a taxpayer may claim a deduction for all: "functional improvement expenses" paid by the taxpayer for expenses incurred for the purpose of considerably prolonging the useful life of the taxpayer's primary residence and materially improving the operating condition of the taxpayer's primary residence; and for all "repair and maintenance expenses" paid by the taxpayer for work performed on that taxpayer's primary residence in order to maintain the property in an ordinarily efficient operating condition. The term "primary residence" means a residence located in this State that is actually and continually occupied as a taxpayer's permanent residence, including mobile homes and co-op units. Improvements that adapt all or part of a residence for new uses (e.g., renovating a basement), remodel an aspect of a residence for aesthetic purposes, or that do not concern an essential aspect of the habitability of the residence do not qualify for this deduction. The gross income tax deduction made available by this bill covers expenses incurred by a property owner or a property renter. This bill does not impose a limit on the amount of expenses that may be claimed by a taxpayer for a taxable year. However, if a married couple files separate tax returns, they each may claim half of the same functional improvement or repair and maintenance expense. This mechanism allows both spouses to benefit from the deduction made available by this bill while avoiding potential "double-dipping." This bill eases the burdens placed on New Jersey taxpayers associated with maintaining a home. By offering this gross income tax deduction, this bill encourages investing in our homes, promotes the safety and welfare of our communities, and encourages more individuals to reside in this State.

Committee Categories

John DiMaio (R)*,  Rob Clifton (R),  Aura Dunn (R),  Sean Kean (R),  Antwan McClellan (R),  Greg McGuckin (R),  Nancy Muñoz (R),  Erik Peterson (R), 

Introduced, Referred to Assembly Housing Committee (on 01/09/2024)

Official Document