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Bill

Bill

A 1495

Exempts receipts from sales of materials, supplies, and services for certain affordable housing projects from sales and use tax.

2024-2025 Regular Session Introduced by Patrick Diegnan and 8 co-sponsors

New Jersey exempts affordable housing project materials and services from sales tax to reduce development costs and boost affordable housing supply.

Approved P.L.2024, c.3.
#affordhous #salestax
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WeVote Research Nonpartisan
Bill Summary · A 1495

Legislative bill overview

Bill A 1495 exempts materials, supplies, and services used in affordable housing projects from New Jersey's sales and use tax. The bill was signed into law in March 2024 after passing both chambers with strong bipartisan support (70-8 in Assembly, 31-6 in Senate).

Why is this important

This tax exemption reduces construction costs for affordable housing developers, potentially making projects more financially viable and increasing the supply of affordable units in a state with significant housing affordability challenges. The fiscal impact depends on the volume of qualifying projects, but the exemption directly lowers barriers to affordable housing development.

Potential points of contention

  • Revenue loss: The state foregoes sales tax revenue on these materials and services, shifting that cost burden to general taxpayers or reducing state funding elsewhere
  • Definition ambiguity: "Affordable housing projects" may require clear regulatory definitions to prevent misuse or disputes over project qualification
  • Market distortion: Tax exemptions can create unequal competitive conditions between affordable and market-rate housing developers, potentially affecting pricing structures in the broader market

Compiled from official sources — confirm details with the bill’s official record.

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