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 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 prioritizing the application of these credits and stipulates that the credits cannot reduce a taxpayer's liability below the statutory minimum.

Additionally, the bill mandates that the Director of the Division of Taxation submit a report to the Governor, State Treasurer, and Legislature within five years of enactment, summarizing the effectiveness of the tax credit in promoting the replacement or repurposing of abandoned commercial buildings. The definitions provided in the bill clarify what constitutes a "commercial building" and "qualified residential housing project," ensuring that the scope of the tax credits is well-defined. 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.