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This law allows taxpayers to utilize an alternative method to calculate a depreciation deduction of eligible expenditures in connection with the construction of new affordable housing developments for Corporation Business Tax and Gross Income Tax.
"Eligible property expenditures" are defined as capital expenditures incurred by the taxpayer in connection with the construction of a new affordable housing development owned by the taxpayer.
Adds Sales and Use Tax Exemption for Affordable Housing Projects
The law amendment provides a sales and use tax exemption for purchases made by contractors or repair persons of materials, supplies, and services for certain affordable housing projects. All units must be for occupants with moderate, low, or very low incomes as defined in the “Fair Housing Act”.
Adds a Property Tax Exemption under the "Fair Housing Act"
The law amends the “Fair Housing Act” to allow projects supported by the “New Jersey Affordable Housing Trust Fund” to be exempt from property tax and to instead contribute to municipal services by making payments in lieu of taxes.
The governing body of a municipality in which a housing project or program is located and awarded a grant or loan from the “New Jersey Affordable Housing Trust Fund” is exempt from property taxes if the housing sponsor enters into an agreement with the municipality for payments in lieu of taxes (PILOT) for municipal services.
The law also allows the governing body of a municipality to negotiate a PILOT agreement with a housing sponsor whose project is funded through municipal housing development fees.
The tax exemption cannot extend past the date on which the eligible loan made for the project is paid in full. However, the municipality may agree to continue a tax exemption beyond the date the loan is paid in full if the project remains subject to specific affordability controls outlined in the law.
Revises "New Jersey Transportation Trust Fund Authority Act" and Calculation of Gas Tax Rate
Beginning Fiscal Year 2025, the law increases the highway fuel cap annually through fiscal year 2029. It also changes the date from August 15 to November 15 by which the State Treasurer and the Legislative Budget and Finance Officer must determine the total revenue derived from the taxes collected in the prior State fiscal year.
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