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 credit is applicable to disabled veteran resident taxpayers whose homestead is a unit of residential rental property. If a disabled veteran is married and files separately, each spouse can claim half of the credit. Additionally, if multiple taxpayers occupy the rental unit, the disabled veteran can only claim the credit for the rent they personally paid. This credit is in addition to 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. The act is set to take effect immediately and will apply to taxable years beginning after its enactment.