This bill introduces tax credits for taxpayers who engage in qualified moderate-income housing projects within designated distressed municipalities in New Jersey. It allows for a credit against the Corporation Business Tax (CBT) and the Gross Income Tax (GIT) for qualified construction costs incurred during the privilege period or taxable year, with the credit capped at either 25% of the total costs or $1 million, whichever is less. Taxpayers must submit an application to the Director of the Division of Taxation, who is required to review applications within 90 days and issue a certification within five days of approval. The bill also permits taxpayers to apply for a tax credit transfer certificate, allowing them to sell their credits to other taxpayers, with the sale price set at no less than 75% of the transferred credit amount.

Additionally, the bill establishes definitions for key terms such as "moderate-income housing," "qualified construction costs," and "qualified distressed municipality." A moderate-income household is defined as one with a gross income between 50 and 80 percent of the median income for similar households in the region, based on U.S. Department of Housing and Urban Development standards. The bill outlines criteria for what constitutes a qualified distressed municipality, including those eligible for urban aid, under Local Finance Board supervision, facing serious fiscal distress, designated as SDA municipalities, or those with major rail stations. The provisions of this act will take effect immediately and apply to privilege periods and taxable years beginning on or after January 1 of the year following enactment.