This bill proposes a gross income tax credit for certain totally and permanently disabled veterans in New Jersey, aimed at providing financial relief for rent that constitutes property taxes. The credit will be equal to the rent paid by the disabled veteran for their principal residence, as defined in existing law. The bill specifies that if the credit exceeds the tax due, the excess will be treated as an overpayment, and it establishes an annual application process for veterans who are not subject to the gross income tax. Additionally, the bill outlines the definition of a disabled veteran, including specific service-connected disabilities recognized by the United States Veterans Administration.

Furthermore, the bill extends eligibility for the tax credit to the surviving spouses of disabled veterans under certain conditions, allowing them to claim the same credit during their widowhood or widowerhood while residing in a rental property. This provision aims to ensure that surviving spouses of veterans who were entitled to the credit can continue to receive similar financial support. The bill seeks to create parity between disabled veterans who own their homes and those who rent, addressing a gap in existing property tax exemptions. The act is set to take effect immediately and will apply to taxable years beginning on or after January 1 following its enactment.