Bill > A5454

Introduced Session

This bill provides corporation business and gross income tax credits to taxpayers for qualified moderate-income housing projects undertaken in certain distressed municipalities. Specifically, the credits would be for either 25 percent or $1 million of the qualified construction costs incurred by the taxpayer, whichever is less, during the privilege period or taxable year for a qualified moderate-income housing project located in a qualified distressed municipality. In order to claim the tax credits allowed under the bill, a taxpayer would be required to submit an application to the Director of the Division of Taxation, in a form and manner prescribed by the director, demonstrating that the qualified moderate-income housing project undertaken by the taxpayer incurred qualified construction costs, and the amount of the tax credit the taxpayer is entitled to pursuant to the bill. Upon approval of the application, a copy of the certification issued by the director would be required to be included with the taxpayer's tax return when such return is filed. A taxpayer that is eligible to claim the credits would be permitted to apply for a tax credit transfer certificate with the Director of the Division of Taxation in lieu of having the credits applied against their tax liability. Upon issuance of the transfer certificate, the taxpayer would then be permitted to be sell the credits to another taxpayer with tax liability under certain other State taxes. If the sale of a transfer certificate occurs, it is required to be conducted for private financial consideration of no less than 75 percent of the transferred credit amount. The bill defines a "qualified moderate-income housing project" as development undertaken in a qualified distressed municipality for the purpose of creating one or more residential structures, whether in the form of detached units or attached units for separate occupancy, in which a substantial percentage of the housing units are reserved for moderate-income housing. The bill specifically prohibits a qualified moderate-income housing project from including development in which any portion is dedicated for commercial purposes. The bill also defines a "moderate-income household" as housing affordable, occupied, or reserved for occupancy by households with a gross household income equal to more than 50 percent but less than 80 percent of the median gross household income for households of the same size within the housing region in which the housing is located, according to United States Department of Housing and Urban Development or other recognized standards for home ownership and rental costs. The bill further defines a "qualified distressed municipality" as a municipality in the State that is qualified to receive assistance as an urban aid municipality, a municipality under the supervision of the Local Finance Board within the Division of Local Government Services, a municipality identified by the Director of the Division of Local Government Services in the Department of Community Affairs to be facing serious fiscal distress, a SDA municipality, or a municipality in which a major rail station is located.

AI Summary

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Jessica Ramirez (D)*, 

Introduced, Referred to Assembly Housing Committee (on 03/17/2025)

Official Document