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Bill > S3545


NJ S3545

NJ S3545
"Homeowners' Historic Property Reinvestment Act"; allows homeowners to claim credit against gross income tax for certain costs of rehabilitating historic properties.


summary

Introduced
02/19/2026
In Committee
02/19/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill establishes the "Homeowners' Historic Property Reinvestment Act." The bill allows homeowners to claim a refundable credit against gross income tax in an amount equal to 25 percent of the homeowner's outlay for rehabilitating a historic property in this State. The credit is capped at $25,000 per property during a ten-year period. To qualify for the credit, a property that is to be rehabilitated is required to meet certain criteria, as specified in the bill. The bill requires a homeowner seeking a tax credit under the bill to spend no more than 60 percent of the cost of rehabilitation on interior rehabilitation and to own and occupy the qualified property as the homeowner's principal residence for twelve consecutive months following the completion of the rehabilitation. The bill requires rehabilitation expenditures to be at least 50 percent of the equalized assessed value of the structure for local real estate tax purposes as indicated on the most recent property tax bill for the property prior to the start of the rehabilitation. The bill provides that the cumulative amount of tax credits approved cannot exceed $15 million. The bill requires the State Historic Preservation Officer, in consultation with the Director of the Division of Taxation, to prepare and submit a written report to the Governor and the Legislature on or before December 31st of the fourth year following the bill's effective date. The report would detail the number and total monetary amount of tax credits granted for the rehabilitation of qualified properties, the geographical distribution of the credits granted, an evaluation of the effectiveness of the tax credits in promoting the rehabilitation of historic properties, recommendations for administrative or legislative changes to increase the effectiveness of the program, and any other information that the officer or the director may deem useful or appropriate.

AI Summary

This bill, titled the "Homeowners' Historic Property Reinvestment Act," allows homeowners to claim a refundable tax credit against their gross income tax for a portion of the costs incurred in rehabilitating historic properties located in the state. The credit is equal to 25% of the homeowner's spending on rehabilitation, with a maximum of $25,000 per property over a ten-year period, and a statewide cap of $15 million in total credits. To qualify, the property must be recognized as historic, and homeowners must spend at least 50% of the structure's assessed value on rehabilitation, with no more than 60% of that spending going towards interior work. Additionally, the homeowner must own and live in the property as their principal residence for twelve consecutive months after rehabilitation is completed. The bill also includes provisions for recapture of the credit if the property's historic integrity is compromised within five years of completion, and mandates a report to the Governor and Legislature evaluating the program's effectiveness.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 02/19/2026)

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