This bill introduces a new method for taxpayers to calculate depreciation deductions for eligible property expenditures related to the construction of new affordable housing developments. Specifically, it allows taxpayers to depreciate a percentage of these 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 affordable housing units, and "affordable housing" as housing for households earning no more than 80 percent of the regional median income.

Additionally, the bill amends existing laws under the Corporation Business Tax Act and the New Jersey Gross Income Tax Act to facilitate this new depreciation method. 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 incurred after its effective date.