Increases gross income tax credit for homestead property taxes paid from $50 to $200.

A2426

ASSEMBLY, No. 2426

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman TENNILLE R. MCCOY

District 14 (Mercer and Middlesex)

Co-Sponsored by:

Assemblyman Webber

SYNOPSIS

���� Increases gross income tax credit for homestead
property taxes paid from $50 to $200.

CURRENT VERSION OF TEXT

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

��

An Act

increasing the gross income tax credit for
homestead property taxes paid, amending P.L.1996, c.60.

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

���� 1.��� Section 6 of P.L.1996,
c.60 (C.54A:3A-20) is amended to read as follows:

���� 6.� a.� (1) Notwithstanding
any provision of
[
this
act
]

P.L.1996,
c.60 (C.54A:3A-15 et seq.)
to the contrary
[
, commencing with the taxpayer's
taxable year beginning on or after January 1, 1996
]
:

���� (a)� a taxpayer; or

���� (b)� a resident of this State
who is 65 years of age or older at the close of the taxable year or who is
allowed to claim a personal deduction as a blind or disabled taxpayer pursuant
to subsection b. of N.J.S.54A:3-1 but who, pursuant to N.J.S.54A:2-4,� is not
subject to tax; and,

���� who paid property taxes or
rent constituting property taxes on a homestead during the calendar year may
elect to take a credit instead of the deduction provided pursuant to section 3,
4, or 5
of P.L.1996, c.60 (C.54A:3A-17 to C.54A:3A-19)
� in the amount of

[
$50,
subject to the provisions of paragraph (2) of this subsection
]

$200
.

���� (2)�
[
Notwithstanding
the provisions of paragraph (1) of this subsection, the amount of tax liability
reduction or credit allowed for the taxpayer's taxable year beginning during
1996 shall be $25 and the amount of tax liability reduction or credit allowed
for the taxpayer's taxable year beginning during 1997 shall be $37.50.
]

(Deleted by amendment, P.L.��� , c.�� ) (pending before the
Legislature as this bill)

���� b.�
[
A husband and wife
]

Married
individuals
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 subsection a. of this
section.

���� c.� The credit shall be paid
to the taxpayer as a refund of overpayment pursuant to N.J.S.54A:9-7, provided
however, that subsection (f) of that section shall not apply.� The credit for a
claimant qualified under subsection a. of this section who, pursuant to
N.J.S.54A:2-4,� is not subject to tax,� shall be applied for annually on an
application as shall be made available by the director, to be filed with the
director on or before the date for filing annual gross income tax returns.� The
director shall determine the form and manner by which a qualified applicant
shall apply for a refund of an overpayment pursuant to this section, and the
time of the refund of the overpayment.� For the purposes of this section,
refunds of overpayments may be combined with payments of rebates pursuant to
P.L.1990, c.61 (C.54:4-8.57 et seq.).

(cf: P.L.1996, c.60, s.6)

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

STATEMENT

���� The bill increases the amount
of the gross income tax credit for homestead property taxes paid from $50 to
$200.

���� Currently, homeowners and
tenants may deduct from their taxable income the amount they paid for property
taxes or the amount of rent that constitutes property taxes. Alternatively,
homeowners and tenants have the option to receive a flat rate refundable tax
credit of $50 instead of the deduction. This bill increases the flat rate
refundable tax credit to $200.