Bill > S1821

This bill allows certain renters to receive a gross income tax credit if their rent for their principal residence exceeds 35 percent of their gross income, which is defined as "excess rent." The credit amount varies based on the taxpayer's filing status, gross income, and whether they live in a "high-cost area," a term referring to locations where rent is higher and used in federal housing subsidy calculations. For example, unmarried individuals with gross income up to $50,000 in a high-cost area can receive a credit for 100% of their excess rent, capped at $1,000, while those with higher incomes or living in areas not designated as high-cost may receive a smaller percentage of their excess rent or no credit at all, with specific income thresholds also applying to married couples filing jointly and other filing statuses. Taxpayers receiving certain housing subsidies will receive a different credit calculation based on their unsubsidized rent. The credit is applied after other taxes and credits, and any excess can be refunded, potentially in monthly installments. The bill also includes provisions for married individuals filing separately and clarifies eligibility for a "qualified taxpayer" based on income and filing status, with higher income limits for joint filers and those filing as head of household or surviving spouse. This legislation is intended to provide financial relief to renters struggling with high housing costs and will apply retroactively to taxable years beginning on or after the year preceding its enactment.

Budget and Finance, Housing and Urban Affairs

https://www.njleg.state.nj.us/bill-search/2026/S1821