This bill proposes a refundable gross income tax credit for renters in New Jersey whose rent exceeds 35 percent of their gross income, specifically targeting those with a gross income not exceeding $60,000. The credit amount is determined based on a schedule that allows for 100 percent, 75 percent, or 50 percent of the excess rent paid, capped at $1,000, depending on the taxpayer's income level and whether they reside in a high-cost area. For taxpayers receiving a State or federal tenant-based housing subsidy, an alternative credit equal to 1/12 of the unsubsidized rent paid during the taxable year is also available.

Additionally, the bill allows for retroactive application of the tax credit, enabling taxpayers who qualified in the year prior to the bill's enactment to file an amended tax return within 90 days to claim the credit or any resulting overpayment. The definition of a high-cost area is included, referring to locations where the small area fair market rent is used for federal Housing Choice Voucher Program calculations. Overall, the bill aims to provide financial relief to low- and moderate-income renters facing high housing costs.