Provides temporary gross income tax credit to first time home buyers and seniors.

A1483

ASSEMBLY, No. 1483

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ROY FREIMAN

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblyman CLINTON CALABRESE

District 36 (Bergen and Passaic)

Assemblywoman VERLINA REYNOLDS-JACKSON

District 15 (Hunterdon and Mercer)

Co-Sponsored by:

Assemblyman Karabinchak, Assemblywoman Swain and
Assemblyman Tully

SYNOPSIS

���� Provides temporary gross income tax credit to first
time home buyers and seniors.

CURRENT VERSION OF TEXT

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

��

An Act

providing a temporary gross income tax credit to
first time home buyers and seniors,
supplementing
chapter 4 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.� For taxable years
beginning January 1, 2019, January 1, 2020, and January 1, 2021, a qualified
taxpayer shall be allowed a credit against the tax otherwise due under the �New
Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et seq., in an amount equal to 25
percent of the property tax due and paid on the taxpayer�s qualified
residential property, up to $2,500.

���� b.��� The amount of the credit
allowed shall be applied against the tax otherwise due under N.J.S.54A:1-1 et
seq. in each taxable year after all other credits and payments allowed in the
taxable year. If the credit allowed reduces the tax liability otherwise due to
zero, any amount of the credit remaining shall be paid to the taxpayer as a
refund of an overpayment of tax pursuant to N.J.S.54A:9-7, provided however,
subsection (f) of that section, concerning the allowance of interest, shall not
apply. The director shall determine the form and manner by which a qualified
taxpayer shall apply for and be eligible to receive a refund of an overpayment
pursuant to this section.

���� c.���� (1)� If title to
qualified residential property is held by more than one taxpayer as joint
tenants or tenants in common, each taxpayer shall be allowed a credit pursuant
to this section only in relation to the taxpayer�s proportionate share of the
property taxes due and paid for the qualified residential property. The
proportionate share shall be equal to that of all other taxpayers who hold the
title, but if the conveyance under which the title is held provides for unequal
interests therein, a taxpayer�s share of the property taxes shall be in
proportion to the taxpayer�s interest in the title.

���� (2)�� If title to a qualified
residential property is held by taxpayers who own the qualified residential
property as tenants by the entirety, or if those taxpayers are both residential
shareholders of a cooperative or mutual housing corporation and occupy the same
qualified residential property therein, and 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., those taxpayers shall each be entitled to one-half of the credit for
which they may be jointly eligible pursuant to this section.

���� d.��� As used in this section:

���� �Qualified taxpayer� means a
taxpayer:

���� (1)�� (a)� who is a State
resident and a natural person;

���� (b)�� who purchases a
qualified residential property in taxable years 2019, 2020, or 2021;

���� (c)�� who has not previously
owned qualified residential property; or

���� (2)�� (a)� who is a State
resident and a natural person;

���� (b)�� who is 65 years of age
or older at the close of the taxable year.

���� �Qualified residential
property� means a homestead, as defined in section 2 of P.L.1996, c.60
(C.54A:3A-16).

���� e.���� Notwithstanding any
provision of P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the director
may adopt immediately upon filing with the Office of Administrative Law such
regulations as the director deems necessary to implement the provisions of this
act, which shall be effective for a period not to exceed 180 days following the
date of enactment of P.L.��� , c. (C. )
(pending before the Legislature as this bill) and may thereafter be amended,
adopted, or readopted by the director in accordance with the requirements of
P.L.1968, c.410.

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill provides temporary
but immediate property tax relief to first time home buyers and senior citizens
while a structural solution for relief from high property taxes is developed.

���� Pursuant to the bill, a gross
income tax credit is provided to eligible taxpayers in the amount of 25 percent
of the taxpayer�s property taxes each year from 2019 through 2021, up to
$2,500. If the value of the credit is more than what the taxpayer owes for
income taxes, the amount of credit left over will be paid to the taxpayer.

���� To be eligible for the credit,
a taxpayer must have bought the home in 2019, 2020, or 2021, or instead, be at
least 65 years old.