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. This legislation allows municipalities to adopt ordinances that set impact fees based on localized data, including population projections and construction costs, while ensuring that the fees are proportional to the increased impact generated by the development. The bill mandates that municipalities provide at least 90 days' notice before implementing a new or increased impact fee and prohibits altering the fee amount after preliminary approval of a development. Additionally, it requires that contributions made towards infrastructure be credited against the impact fees and that proceeds from these fees be assignable between municipalities and school districts that share services.

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