TRENTON – Legislation intended to help jump-start New Jersey’s housing market by creating a tax credit for home purchases received final legislative approval on Thursday.
The Senate voted 38-0 to approve the bill. It was approved 67-8-2 by the Assembly on May 20. It now goes to the governor for his consideration.
The bill (A-1678) would establish the New Jersey Homebuyer Tax Credit Program under the New Jersey gross income tax for home purchases made within a year of the bill’s enactment.
Refundable tax credits would be allowed for up to $15,000 or 5 percent of the home purchase price, whichever is less, for homebuyers of new and previously owned homes.
The total credits available would be capped at $100 million, with $75 million allocated for purchases of newly constructed homes not previously occupied and $25 million allocated for purchases of previously occupied homes.
The determinations of credit eligibility would be provided to interested homebuyers in advance of their purchase through an automated, convenient and prompt process to be administered by the Division of Taxation. These determinations will be provided on a first-come, first-serve basis and the claiming of the credit for personal income tax filing purposes will be divided into three equal credits claimed over three taxable years.
The home would have to continue to be occupied as the taxpayer’s principle residence for three years.
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