This bill aims to provide a gross income tax credit to certain totally and permanently disabled veterans for rent that constitutes property taxes. Specifically, it allows eligible disabled veterans to claim a credit against their New Jersey Gross Income Tax for the rent they pay for their principal residence, which is defined as a unit of residential rental property. The credit is calculated as an amount equal to the rent constituting property taxes, which is determined to be 18 percent of the rent paid during the taxable year. Additionally, the bill includes provisions for the surviving spouses of eligible veterans, allowing them to claim the same credit under certain conditions.

To ensure that disabled veterans who rent their homes receive similar benefits to those who own their residences, the bill establishes a refundable tax credit that can be applied for annually. The Director of the Division of Taxation is tasked with creating a specific application process for veterans who are not subject to the gross income tax. This legislation seeks to create parity in tax benefits for disabled veterans, addressing a gap in current law that does not provide similar exemptions for those renting their homes. The bill is set to take effect immediately and will apply to taxable years beginning on or after January 1 following its enactment.