The bill proposes tax credits for both corporation business tax (CBT) and gross income tax (GIT) to incentivize the completion of qualified residential housing projects at sites of abandoned commercial buildings in New Jersey. Specifically, taxpayers can receive a credit for qualified construction costs incurred, capped at either 25% of the total costs or $1,000,000, whichever is lesser. To qualify, taxpayers must apply to the Division of Taxation for certification, 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 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 Director of the Division of Taxation is tasked with preparing a report within five years of the bill's enactment to assess the effectiveness of the tax credits in promoting the redevelopment of abandoned commercial properties. The bill is set to take effect immediately and will apply to all privilege periods and taxable years beginning on or after January 1 of the year following its enactment.