The "New Jersey Impact Fee Act" establishes a framework for municipalities to impose impact fees on developers to fund infrastructure improvements necessitated by new real property developments. The bill allows municipalities to adopt ordinances that set these fees based on localized data, including population projections and construction costs, while ensuring that the fees are proportional to the impact of the development. It mandates that municipalities provide at least 90 days' notice before implementing new or increased fees and prohibits altering the fee amount after preliminary approval of a development. Additionally, the bill stipulates that contributions made towards infrastructure can be credited against the impact fees, and it allows for the transfer of impact fee proceeds between municipalities and school districts that share services.

The legislation also includes provisions for transparency and accountability, requiring municipalities to submit annual reports detailing the collection and expenditure of impact fee revenues. It allows developers to request exemptions or waivers from impact fees based on the public benefits provided by their projects. In cases where an impact fee is challenged, the municipality must demonstrate compliance with the act. The Commissioner of Community Affairs is tasked with adopting necessary rules and regulations to implement the act, which will take effect five months after its enactment.