This bill introduces a new method for taxpayers to calculate depreciation deductions for certain expenditures related to the construction of new affordable housing developments. Specifically, it allows taxpayers to depreciate a percentage of eligible property expenditures over a ten-year period, using a formula that takes into account the ratio of affordable housing units to non-affordable housing units in the development. The bill defines "affordable housing development" as one that includes at least 20 percent of units qualifying as affordable housing, which is defined as housing for households with incomes no greater 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 the effective date. This legislative change aims to incentivize the construction of affordable housing by providing a more favorable tax treatment for developers.