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 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. The credit can be claimed alongside an existing $50 credit available to certain taxpayers who are elderly, blind, or disabled.

The definition of a "disabled veteran" is provided, indicating that it refers to individuals eligible for compensation from the U.S. Veteran Administration due to service-connected disabilities incurred during various military conflicts. The bill is designed to support disabled veterans by alleviating some of their financial burdens related to housing costs, specifically through the recognition of property taxes embedded in their rent. The act is set to take effect immediately and will apply to taxable years beginning after its enactment.