Trenton – In an effort to make homeownership more affordable, the Senate Commerce Committee today advanced legislation sponsored by Senator Troy Singleton that would provide a refundable gross income tax credit for early principal payments on certain home mortgages.
The bill, S-1444, would provide refundable tax credits for excess home mortgage principal payments. The credits would be equal to 50 percent of excess up to $1,000 for the taxable year and the credits would be claimable for up to 10 years.
“Mortgage debt makes up nearly 70 percent of all American household debt and New Jersey is among the top ten states with the highest average mortgage debt,” said Senator Singleton (D- Burlington). “The goal of this legislation is to provide relief to homeowners who are paying down their mortgage above the monthly minimum required payment. Homeownership should not feel like a burden, and this is one way we can make it more affordable for those who are making the extra effort to pay back their home loans.”
The legislation would be modeled on the federal legislation, ‘Building Equity for the American-Middle Class Act’, also known as the BEAM act.
The bill passed committee by a vote of 4-0.