This bill introduces tax credits for taxpayers who engage in qualified moderate-income housing projects within designated distressed municipalities in New Jersey. It allows for a credit against the Corporation Business Tax (CBT) and the Gross Income Tax (GIT) for qualified construction costs incurred during the privilege period or taxable year, with the credit capped at either 25% of the total costs or $1,000,000, whichever is less. Taxpayers must submit an application to the Director of the Division of Taxation, who is required to review applications within 90 days and issue certifications for approved applications.

Additionally, the bill enables taxpayers to apply for a tax credit transfer certificate, allowing them to sell their credits to other taxpayers with tax liabilities under certain state taxes, with the sale price set at no less than 75% of the transferred credit amount. The bill also provides definitions for key terms such as "moderate-income housing," "qualified construction costs," and "qualified distressed municipality," ensuring clarity in the application of the tax credits. The provisions will take effect immediately and apply to privilege periods and taxable years beginning on or after January 1 of the year following enactment.