Establishes disabled veteran tenant gross income tax credit.

A1432

ASSEMBLY, No. 1432

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ERIK K. SIMONSEN

District 1 (Atlantic, Cape May and Cumberland)

Co-Sponsored by:

Assemblyman Rumpf

SYNOPSIS

���� Establishes disabled veteran tenant gross income tax
credit.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
establishing a disabled veteran tenant gross income tax
credit, supplementing chapter 3A of Title 54A of the New Jersey Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� A disabled veteran
resident taxpayer whose homestead is a unit of residential rental property
shall be allowed a credit against the tax otherwise due for the taxable year
under the �New Jersey Gross Income Tax Act,� N.J.S.A.54A:1-1 et seq., for that portion
of the rent constituting property taxes, due and paid for the calendar year in
which the rent constituting taxes is due and payable for occupancy of that
homestead up to a maximum allowed credit of $1,000 for the taxable year.

���� b.��� Spouses who elect to
file separate income tax returns pursuant to the �New Jersey Gross Income Tax
Act,� N.J.S.54A:1-1 et seq., shall each be entitled to one-half of the credit
allowed pursuant to this section.

���� c.���� If more than one
taxpayer, other than the taxpayer and his spouse, occupy the unit of
residential rental property for which this credit is to be claimed, a taxpayer
qualifying for the credit provided in this section may only claim a credit for
rent constituting property taxes in the amount of rent actually paid by the
taxpayer.

���� d.��� A credit allowed
pursuant to this section shall not reduce the tax liability otherwise due
pursuant to N.J.S.54A:1-1 et seq. for a taxable year to an amount less than
zero.

���� e.���� A credit allowed
pursuant to this section shall be in addition to a credit allowed for rent
constituting property taxes pursuant to section 6 of P.L.1996, c.60
(C.54A:3A-20).�

���� f.���� As used in this
section:

���� �Disabled veteran� means an
individual who would qualify as a disabled veteran pursuant to the definition
set forth in�� N.J.S.11A:5-1.

���� 2.��� This act shall take
effect immediately and apply to taxable years beginning after the date of
enactment.

STATEMENT

���� This bill establishes a
disabled veteran tenant gross income tax credit.

���� This bill allows a disabled
veteran to claim a nonrefundable credit, up to a maximum allowable amount of
$1,000, for that portion of the veteran�s rent constituting property taxes.
Currently, 18 percent of rent paid is considered to constitute property taxes.�
If a qualifying disabled veteran is married but is filing with a status of
�married, filing separately,� each spouse will be entitled to claim one half of
the credit for which the disabled veteran qualifies.� However, if a qualifying
disabled veteran rents a homestead with another taxpayer, other than the
qualifying disabled veteran�s spouse, the qualifying disabled veteran may only
claim a credit for the rent constituting property taxes that the qualifying
disabled veteran actually paid.� The credit established by this bill can be
claimed in addition to the $50 credit that can be claimed by a taxpayer or a
resident, who is 65 years of age or older, blind, or disabled not subject to
tax, who paid rent constituting property taxes on a homestead.

���� A disabled veteran is a
veteran who, as a result of war service, is eligible to be compensated for a
service connected disability by the United States Veteran Administration.� War
service is service at some time during the following conflicts: World War I,
World War II, the Korean conflict, the Lebanon crisis, the Vietnam conflict,
the Lebanon peacekeeping mission, the Grenada peacekeeping mission, the Panama
peacekeeping mission, Operation �Desert Shield/Desert Storm,� Operation
Northern Watch and Operation Southern Watch, Operation �Restore Hope,�
Operations �Joint Endeavor� and �Joint Guard,� Operation �Uphold Democracy,�
Operation �Enduring Freedom,� and Operation �Iraqi Freedom.���