Bill > S4359

Introduced Session

This bill would establish a refundable gross income tax credit for certain renters whose rent exceeds 35 percent of their gross income. Under the bill, a taxpayer with gross income not in excess of $60,000, and who pays rent on the principal residence of the taxpayer in excess of 35 percent of the taxpayer's gross income, may be allowed a refundable gross income tax credit based on a percentage of the excess rent paid by the taxpayer during the taxable year, not to exceed $1,000. Under the bill, a taxpayer may elect to receive the refundable portion of the tax credit in monthly installments during the taxable year immediately following the taxable year for which the credit is claimed. Specifically, the amount of the tax credit would be determined according to the following schedule: (1) 100 percent of the excess rent, not to exceed $1,000, if: the taxpayer's gross income does not exceed $50,000 and the taxpayer resides in a high-cost area; or the taxpayer's gross income does not exceed $25,000 and the taxpayer does not reside in a high-cost area; (2) 75 percent of the excess rent, not to exceed $1,000, if: the taxpayer's gross income exceeds $50,000 but does not exceed $60,000 and the taxpayer resides in a high-cost area; or the taxpayer's gross income exceeds $25,000 but does not exceed $50,000 and the taxpayer does not reside in a high-cost area; or (3) 50 percent of the excess rent, not to exceed $1,000, if the taxpayer's gross income exceeds $50,000 but does not exceed $60,000, and the taxpayer does not reside in a high-cost area. As used in the bill, the term "high-cost area" is defined as any location in the State in which the small area fair market rent is used to calculate the tenant-based housing subsidy provided to participants of the federal Housing Choice Voucher Program during the taxable year for which the credit is claimed. The bill also provides that for any taxpayer who receives State or federal tenant-based housing subsidy, and who otherwise qualifies for the tax credit allowed under the bill, the taxpayer may instead elect to receive a tax credit in an amount equal to 1/12 of the unsubsidized rent paid by the taxpayer during the taxable year. Additionally, the bill provides that the tax credit would be authorized retroactively, beginning on and after the taxable year immediately preceding the date of enactment of this bill. If a taxpayer qualified for the credit in the taxable year immediately preceding the date of enactment, the taxpayer would be required to file an amended tax return with the Director of the Division of Taxation within 90 days following the date of enactment to claim the credit or refund of any resulting overpayment of tax.

AI Summary

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Troy Singleton (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 05/12/2025)

Official Document