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.

The bill includes provisions for retroactive application, allowing taxpayers who qualified for the credit in the year prior to the bill's enactment to file an amended tax return within 90 days of enactment to claim the credit or any resulting overpayment. The definition of "high-cost area" is provided, referring to locations where the small area fair market rent is used for federal housing subsidies. Overall, the bill aims to alleviate the financial burden on low- to moderate-income renters by providing targeted tax relief.