Provides gross income tax credit to certain totally and permanently disabled veterans for rent constituting property taxes.
Summary
Assembly Bill 4172 creates a refundable New Jersey gross income tax credit for certain totally and permanently disabled veterans who rent, rather than own, their principal residence. The credit is equal to “rent constituting property taxes,” which the statement explains is 18% of the rent paid for occupancy of a unit of residential rental property used as the taxpayer’s principal residence. The bill is intended to give rental parity to disabled veterans who currently receive a property tax exemption on owner-occupied homes but do not receive a comparable benefit when they live in rental housing.
The bill also extends the credit, in specified circumstances, to surviving spouses. A surviving spouse may claim the same credit if the veteran was entitled to it at death, if the veteran later is determined to have had a qualifying service-connected disability, or if the veteran died in active service during wartime. The credit is applied against gross income tax liability after other credits and payments, and any excess is treated as an overpayment. For disabled veterans who owe no gross income tax, the bill directs the Division of Taxation to provide a separate application process for a refund.
Impact
This bill would amend and supplement the New Jersey Gross Income Tax Act by adding a new refundable credit for qualifying disabled veterans and certain surviving spouses who rent their homes. It would not change the existing property tax exemption for owner-occupied residences under N.J.S.A. 54:4-3.30, but it would create a parallel income tax benefit for renters by tying the credit to rent constituting property taxes under existing statutory definitions. The Division of Taxation would need to administer the new credit, including forms, filing procedures, and refunds for taxpayers with no income tax liability.
Sentiment
The bill’s stated purpose is strongly supportive of veterans and framed as a fairness measure. The sponsor’s statement emphasizes parity between disabled veterans who own homes and those who rent, suggesting a broadly sympathetic policy rationale. No committee transcripts or recorded votes were provided, so there is no evidence in the supplied materials of organized opposition or divided sentiment.
Contention
The main policy issue embedded in the bill is whether the state should extend a property-tax-equivalent benefit to renters, not just homeowners, and whether the credit should be refundable even for taxpayers with no gross income tax liability. Another possible point of contention is the scope of eligibility: the bill limits the benefit to veterans with very specific service-connected disabilities or a 100% permanent disability determination, and it also includes surviving spouses under defined conditions. Because no hearing record or votes are available, no specific lawmakers, groups, or objections are identified in the materials provided.