This bill amends the Corporation Business Tax Act and the New Jersey Gross Income Tax Act to allow taxpayers to depreciate a percentage of eligible property expenditures related to the construction of affordable housing developments over a 10-year period. The percentage of eligible expenditures that can be depreciated is determined using a formula that takes into account the number of affordable housing units in the development relative to the total number of housing units. The bill defines "affordable housing" as housing for households with incomes no greater than 80 percent of the regional median income and specifies that at least 20 percent of the units in a development must qualify as affordable housing.

Additionally, the bill outlines the criteria for what constitutes an "affordable housing development," including that construction must commence after the effective date of the bill and that the development must not receive tax abatements or affordable housing subsidies. The Director of the Division of Taxation is tasked with prescribing the necessary rules and regulations to implement these provisions. The act is set to take effect immediately and will apply to eligible property expenditures for affordable housing developments placed in service starting January 1, 2025.