This bill introduces a new provision allowing taxpayers to depreciate a percentage of eligible property expenditures related to the construction of new affordable housing developments over a ten-year period. The percentage of eligible expenditures that can be depreciated is determined using a specific formula: 2 times the ratio of affordable housing units to non-affordable housing units within the development. The bill defines "affordable housing development" as one that includes at least 20 percent affordable housing units, and "affordable housing" as housing for households earning no more than 80 percent of the regional median income.

Additionally, the bill specifies that the Director of the Division of Taxation in the Department of the Treasury will establish the necessary rules and regulations to implement these provisions. The act is set to take effect immediately and will apply to eligible property expenditures incurred on or after its effective date. This legislative change aims to incentivize the construction of affordable housing by providing tax benefits to developers.