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 construction and real estate development expenses. To qualify for the credit, developers must submit a proposed plan and an application to the Department of Community Affairs, which will issue a credit eligibility certificate. The total amount of credits granted under this program is capped at $5 million per fiscal year, and the credit cannot exceed the developer's total tax liability for the accounting period.

The legislation emphasizes the importance of providing stable housing for veterans, recognizing their service and unique needs. It outlines the criteria for what constitutes "qualified housing for veterans" and mandates that each rental unit must be reserved for veterans for a minimum of 15 years. Additionally, the Department of Community Affairs, in collaboration with other state agencies, 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.