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A 2966

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

2024-2025 Regular Session Introduced by Tennille McCoy and 1 co-sponsor

Raises the refundable homestead property tax credit from $50 to $200, aiding homeowners/tenants who pay property taxes or rent; seniors/disabled can qualify; effective immediately.

Introduced in the Assembly, Referred to Assembly Housing Committee
#incometax #propertytax
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Bill Summary · A 2966

Summary of New Jersey Assembly Bill A-2966

Overview

A-2966, introduced January 9, 2024 and currently referred to the Assembly Housing Committee, would increase the gross income tax credit for homestead property taxes paid from $50 to $200. The bill targets homeowners and tenants who pay property taxes or rents that constitute property taxes on a homestead and offers a refundable credit instead of a deduction (or other credit) under the state gross income tax.

Key Provisions

  • Amends N.J.S.A. 54A:3A-20 (Section 6) to set the basic credit amount at $200 for eligible taxpayers, up from $50.
  • Eligibility (a): Applies to taxpayers who paid property taxes or rents constituting property taxes on a homestead during the calendar year and who elect to take the credit instead of the deduction for property taxes or rent.
  • Special cases (a)(1)(2): The bill includes provisions related to seniors and certain individuals who may be eligible for the credit even if they are not subject to tax, with the option to elect the credit in place of the standard deduction.
  • Filing and refunds (subsection c):
    • The credit is paid as a refund of overpayment, with the Director determining the form and manner of the application.
    • For claimants not subject to tax, an annual application process is established to obtain the refund.
    • Refunds of overpayments may be combined with rebates under P.L.1990, c.61.
  • Married individuals filing separately: Each spouse would be entitled to one-half of the credit.
  • Effective date: The act takes effect immediately and applies to taxable years ending after enactment.

Who Is Affected

  • Homeowners and tenants who pay property taxes or rents that constitute property taxes on a homestead.
  • Seniors aged 65 and older, or individuals who are blind or disabled and not subject to tax, who elect to receive the credit.
  • Married couples filing separately, with the credit apportioned equally between spouses.

Timing and Process

  • Effective immediately upon enactment.
  • Applies to taxable years ending after enactment.
  • The Director will determine application procedures for non-taxable claimants and refund timing; refunds may be combined with other rebates.

Status

  • Introduced in the Assembly on January 9, 2024.
  • Referred to the Assembly Housing Committee.

Impact Summary

The bill enhances direct tax relief for property tax burdens by increasing the flat refundable credit from $50 to $200, expanding accessibility for eligible homeowners and tenants, and clarifying refundable treatment and filing procedures.

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

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