NJ A5753

Resident taxpayers with gross income up to $60,000 who pay more than 35% of their income in rent qualify for a refundable gross income tax credit on the excess rent paid, capped at $1,000

Credit amounts vary by income and location: 100% of excess rent for taxpayers earning up to $50,000 in high-cost areas or up to $25,000 elsewhere; 75% for those earning $50,000-$60,000 in high-cost areas or $25,000-$50,000 elsewhere; 50% for those earning $50,000-$60,000 outside high-cost areas

"High-cost area" is defined as locations where small area fair market rent is used to calculate federal Housing Choice Voucher Program subsidies

Taxpayers receiving State or federal tenant-based housing subsidies may instead claim a credit equal to 1/12 of their unsubsidized rent paid during the taxable year

The credit applies retroactively to the taxable year preceding enactment, with qualifying taxpayers required to file amended returns within 90 days to claim refunds