NJ A5454

Provides tax credits against corporation business tax (CBT) and gross income tax (GIT) for qualified construction costs on moderate-income housing projects in distressed municipalities, capped at the lesser of 25% of costs or $1,000,000

Defines qualified distressed municipalities as those receiving urban aid assistance, under Local Finance Board supervision, facing serious fiscal distress, designated as SDA municipalities, or containing a major rail station

Requires at least 80% of housing units in a project to be reserved for moderate-income households (50-80% of median gross household income), with no commercial use permitted in the development

Allows taxpayers to apply for a tax credit transfer certificate to sell unused credits to other taxpayers for no less than 75% of the credit value

Credits may be carried forward for up to seven years if they cannot be fully applied in the initial tax year, and the Director of the Division of Taxation must approve applications within 90 days