NJ S1602

Creates a nonrefundable gross income tax credit of up to $1,000 for disabled veterans who rent their homes in New Jersey, based on the portion of rent that constitutes property taxes (currently 18% of rent paid)

Married couples filing separately may each claim one-half of the credit; taxpayers sharing a rental unit with non-spouses may only claim credit for rent they actually paid

Credit cannot reduce tax liability below zero and is offered in addition to the existing $50 rent credit available to taxpayers age 65+, blind, or disabled

Defines "disabled veteran" as a veteran eligible for compensation from the U.S. Veterans Administration for a service-connected disability resulting from war service in conflicts from World War I through Operation Iraqi Freedom

Takes effect immediately and applies to taxable years beginning after enactment