TRENTON – Legislation sponsored by Senator Patrick J. Diegnan, Jr. that would grant tax credits against business income taxes to developers of rental housing reserved for veterans advanced from the Senate Military and Veterans’ Affairs Committee today.
“It is estimated that more than 370,000 veterans live in New Jersey, and many of these personnel are living as civilian veterans,” said Senator Diegnan (D-Middlesex). “The bill would encourage the development of stable, decent housing for New Jersey’s veteran population.”
The bill, S-2143, would establish a tax credit for New Jersey housing developers who construct homes for New Jersey veterans, allowing a non-refundable credit against New Jersey business taxes. The credit amount would be calculated on the developer’s expenditures in creating veterans’ rental units. The bill would provide that expenditures for a wide array of construction and real estate development activities are allowable costs that qualify for a credit, or amounting up to 10 percent of the developer’s allowable costs for developing veterans’ housing.
A developer would be required to submit both a project plan and an application to the Department of Community Affairs. The Department of Community Affairs would issue a certificate of eligibility, which the developer would file with the developer’s tax return to obtain the credit.
The bill was released from committee by a vote of 4-0, and next heads to the Senate Budget and Appropriations Committee for further consideration.