Bill
Bill > S3730
NJ S3730
NJ S3730Allows gross income tax deduction for functional improvements and home repairs made to taxpayer's primary residence.
summary
Introduced
03/05/2026
03/05/2026
In Committee
03/05/2026
03/05/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
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.
AI Summary
This bill allows New Jersey taxpayers to deduct certain expenses related to their primary residence from their gross income tax, meaning the amount of income they pay taxes on will be reduced. This deduction applies to "functional improvement expenses," which are costs incurred to significantly extend the life of a home or improve its operating condition, and "repair and maintenance expenses," which are costs to keep the home in good working order. A "primary residence" is defined as a home in New Jersey that is the taxpayer's permanent, continuously occupied dwelling, including mobile homes and co-op units, but not vacation homes. Importantly, this deduction does not cover improvements for new uses, aesthetic remodels, or work not related to the home's habitability. The bill covers expenses for both homeowners and renters, with no limit on the deductible amount per year, though married couples filing separately can each claim half of shared expenses to prevent "double-dipping." This measure aims to ease the financial burden of home upkeep, encourage investment in homes, and promote community safety and residency in the state.
Committee Categories
Housing and Urban Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 03/05/2026)
Taxonomy
Community Development and Housing Issues
- ‐ Other Housing
Macroeconomics
- ‐ Taxation, Tax Policy, and Tax Reform
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S3730 | 03/02/2026 |
| BillText | https://pub.njleg.gov/Bills/2026/S4000/3730_I1.HTM | 03/06/2026 |
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