The proposed bill establishes the New Jersey Homebuyer Tax Credit Program, which offers a tax credit to first-time homebuyers under the state's gross income tax for qualified home purchases made during specified periods. Eligible taxpayers can receive a credit equal to five percent of the purchase price or up to $15,000, whichever is less, provided they intend to use the home as their principal residence for at least 36 consecutive months. The total credits available are capped at $100 million, with allocations set for different timeframes, including up to $25 million for purchases made within the first year and another $25 million for the second year. The program also specifies that up to $18.75 million is designated for new homes and $6.25 million for previously occupied homes each year.

To qualify, taxpayers must be New Jersey residents, natural persons, and first-time homebuyers, with income limits set at $118,000 for households of two or fewer and $135,000 for larger households. The value of the property must not exceed $560,000. The credit is refundable and will be claimed in equal amounts over three consecutive taxable years. If the homeowner fails to occupy the property as their principal residence for the required period, they must repay the credit. Additionally, the bill mandates a report on the program's effectiveness after two years, which could lead to a potential two-year extension based on its findings. The bill is set to take effect six months after its enactment.