This bill establishes a gross income tax credit for disabled veteran tenants in New Jersey, allowing them to claim a nonrefundable credit of up to $1,000 for the portion of their rent that constitutes property taxes. The bill specifies that 18 percent of the rent paid is considered to constitute property taxes. If a disabled veteran is married and files separately, each spouse can claim half of the credit. Additionally, if the veteran shares the rental unit with another taxpayer (not their spouse), they can only claim the credit for the rent they personally paid. This credit can be claimed alongside an existing $50 credit available to certain taxpayers who are 65 years or older, blind, or disabled.

The bill defines a "disabled veteran" as an individual eligible for compensation for a service-connected disability from the United States Veteran Administration due to their service in various conflicts, including World War I, World War II, and more recent operations such as Operation Iraqi Freedom. The act is set to take effect immediately and will apply to taxable years beginning after its enactment.