NJ A4437

Creates tax credits against Corporation Business Tax (CBT) and Gross Income Tax (GIT) equal to the lesser of 25% of qualified construction costs or $1,000,000 for moderate-income housing projects in distressed municipalities.

Qualifying projects must reserve at least 80% of housing units for households earning between 50% and 80% of the area median income, with no commercial use permitted on the property.

Distressed municipalities include those receiving urban aid, under Local Finance Board supervision, facing serious fiscal distress as identified by the state, SDA municipalities, or municipalities with a major rail station.

Tax credits may be transferred to other taxpayers through a credit transfer certificate, with sales required to be at no less than 75% of the credit amount.

Unused credits may be carried forward for up to seven years, and the Director of the Division of Taxation must approve applications within 90 days or approval is deemed automatic.