This bill proposes the establishment of tax credits under the Corporation Business Tax (CBT) and the Gross Income Tax (GIT) for taxpayers who incur qualified construction costs related to the completion of residential housing projects at sites of abandoned commercial buildings in New Jersey. The tax credit is capped at the lesser of 25% of the total qualified construction costs or $1,000,000. To qualify, taxpayers must apply to the Division of Taxation for certification, demonstrating that the project meets the bill's requirements and providing evidence of the incurred costs.

Additionally, the bill mandates that the Director of the Division of Taxation submit a report within five years of enactment to assess the effectiveness of the tax credit in promoting the replacement or repurposing of abandoned commercial buildings. The bill defines a "commercial building" as one that is at least 100,000 square feet and used for commercial purposes, while a "qualified residential housing project" includes new constructions or conversions of such buildings into residential units. The provisions of the bill will take effect immediately and apply to all privilege periods and taxable years beginning on or after January 1 of the year following its enactment.