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 property expenditures that can be depreciated is determined using a specific formula: 2 times the ratio of affordable housing units to the total number of housing units in the development. The bill defines "affordable housing" as housing for households with incomes no greater than 80% of the regional median income and outlines the criteria for what constitutes an "affordable housing development."

Additionally, the bill specifies that eligible property expenditures refer to capital expenditures incurred by the taxpayer for constructing new affordable housing developments. It also clarifies that the developments must not receive tax abatements or affordable housing subsidies and must include at least 20% of units qualifying as affordable housing. The provisions of this act will take effect immediately and apply to eligible property expenditures for affordable housing developments placed in service starting January 1, 2025.