The bill proposes tax credits for both corporation business tax (CBT) and gross income tax (GIT) for taxpayers who incur qualified construction costs while completing residential housing projects at sites of abandoned commercial buildings in New Jersey. The tax credit is capped at the lesser of 25% of the total qualified construction costs or $1,000,000. To qualify, taxpayers must apply to the Division of Taxation for certification, demonstrating that the project meets the bill's requirements and that the construction costs have been incurred. The bill also outlines the process for applying the tax credits and stipulates that any unused credits can be carried forward for up to seven years.

Additionally, the bill defines a "commercial building" as one that is at least 100,000 square feet and used for commercial purposes, while a "qualified residential housing project" includes new construction or repurposing of such buildings into residential units. The Director of the Division of Taxation is tasked with preparing a report within five years of the bill's enactment to assess the effectiveness of the tax credits in promoting the redevelopment of abandoned commercial properties. The bill is set to take effect immediately and will apply to all privilege periods and taxable years beginning on or after January 1 of the year following its enactment.