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 associated with the development of such housing, which includes a wide range of allowable expenditures like land purchase, construction, and professional fees. Developers must submit a project plan and an application to the Department of Community Affairs to receive a credit eligibility certificate, which they will then use when filing their tax returns. The total amount of credits granted under this program is capped at $5 million per fiscal year.

The legislation emphasizes the importance of providing stable housing for veterans, recognizing their unique challenges in finding suitable accommodations. It outlines the criteria for qualifying housing, including that each unit must be reserved for veterans for a minimum of 15 years. Additionally, the Department of Community Affairs is tasked with developing regulations to ensure the effective administration of the credit program, including measures to prevent tax fraud and to facilitate the application process for developers. The act is set to take effect on July 1 following its enactment and will apply to tax periods beginning thereafter.