This bill establishes a tax credit for developers in New Jersey who create rental housing specifically reserved for veterans. The credit is set at 10 percent of the approved costs incurred in the development of such housing, which includes a wide range of allowable expenditures related to construction and rehabilitation. Developers must submit a proposed plan and an application to the Department of Community Affairs to receive a credit eligibility certificate, which is required when filing tax returns to claim the credit. The total amount of credits granted to developers is capped at $5 million per fiscal year.

The legislation emphasizes the importance of providing stable housing for veterans, recognizing their service and unique needs. It outlines the criteria for qualifying housing, including that each unit must be reserved for occupancy by veterans for a minimum of 15 years. The Department of Community Affairs, in collaboration with the Division of Taxation and the Department of Military and Veterans Affairs, will develop regulations to ensure the effective administration of the credit program and to prevent tax fraud. The act is set to take effect on July 1 following its enactment and will apply to tax periods beginning on or after that date.