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 limited to the lesser of 25% of the total qualified construction costs or $1,000,000. To qualify, taxpayers must apply for certification from the Division of Taxation, demonstrating that the project meets the bill's requirements and that the construction costs have been incurred. The bill also outlines the process for applying the tax credits and stipulates that any unused credits can be carried forward for up to seven years.

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 credits in promoting the redevelopment of abandoned commercial properties into residential housing. The definitions of "commercial building" and "qualified residential housing project" are provided, clarifying that a commercial building must be at least 100,000 square feet and that the residential project can either be new construction or the conversion of an existing structure. The bill is set to take effect immediately and will apply to all relevant tax periods beginning after January 1 of the year following its enactment.