SENATE, No STATE OF NEW JERSEY. 217th LEGISLATURE INTRODUCED OCTOBER 7, 2016
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1 SENATE, No. STATE OF NEW JERSEY th LEGISLATURE INTRODUCED OCTOBER, 0 Sponsored by: Senator LINDA R. GREENSTEIN District (Mercer and Middlesex) Senator NILSA CRUZ-PEREZ District (Camden and Gloucester) Co-Sponsored by: Senators Diegnan and Pennacchio SYNOPSIS Provides tax credits for performing certain repairs on primary residences of senior citizens or persons with disabilities. CURRENT VERSION OF TEXT As introduced. (Sponsorship Updated As Of: 0//0)
2 S GREENSTEIN, CRUZ PEREZ AN ACT concerning gross income tax credits for certain repairs on the primary residences of senior citizens or persons with disabilities and supplementing P.L., c.0 (C.:K- et seq.). BE IT ENACTED by the Senate and General Assembly of the State of New Jersey:. a. As used in this section: "Agency" means the Housing and Mortgage Finance Agency established pursuant to section of the "New Jersey Housing and Mortgage Finance Agency Law of," P.L., c.0 (C.:K-). "Contractor" means a contractor licensed under the "Contractors' Registration Act," P.L.00, c. (C.:- et seq.). "Eligible cost" means a cost associated with home improvements to increase accessibility, including, but not limited to, installing ramps and grab-bars, widening doorways, and making other changes to a primary residence to enhance the independence of a senior citizen or person with a disability. "Home improvement" means a construction or renovation project requiring a building permit, which increases the accessibility of a primary residence for a senior citizen or person with a disability. "Primary residence" means a dwelling owned by a qualified resident, which constitutes the place of the qualified resident's domicile; a dwelling owned by a person other than the qualified resident and leased to the qualified resident, which constitutes the place of the qualified resident's domicile; or a condominium unit or a unit in a cooperative or horizontal property regime owned by a qualified resident, which constitutes the place of the qualified resident's domicile. "Qualified resident" means a resident of this State who is either years of age or older or less than years of age and permanently disabled, meaning the qualified resident cannot ambulate without the use of assistive devices, such as a cane, crutch, wheelchair, prosthetic device, or other person. b. () Up to the limits established in subsection d. of this section and upon certification by the agency, the State Treasurer shall award to a taxpayer a credit against the tax otherwise due for the taxable year pursuant to the New Jersey Gross Income Tax Act, N.J.S.A:- et seq., in an amount equal to the eligible costs of a home improvement performed on the primary residence of a qualified resident. Tax credits for eligible costs shall not exceed $,00 for each primary residence. Tax credits for eligible costs shall be allowed for the taxable year during which the home improvement has been completed. () If the amount of tax credits claimed pursuant to this section, together with any other payments or credits against the tax, reduces
3 S GREENSTEIN, CRUZ PEREZ the tax liability due for the taxable year to zero, then the taxpayer may carry forward any amount of credit remaining for use in the next five taxable years. No amount of expense claimed as a credit pursuant to this section shall be allowed as an amount calculated or claimed pursuant to any other credit against the tax imposed pursuant to the New Jersey Gross Income Tax Act, N.J.S.A:- et seq. A business entity classified as a partnership for federal income tax purposes shall not be allowed a credit directly under the gross income tax, but the amount of credit of a taxpayer in respect of a distributive share of partnership income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year. A New Jersey S Corporation shall not be allowed a credit directly under the gross income tax, but the amount of credit of a taxpayer in respect of a pro rata share of S Corporation income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the New Jersey S Corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro rata share of S Corporation income of the New Jersey S Corporation for its privilege period ending within or with the taxpayer's taxable year. c. A taxpayer applying for a tax credit under this section for eligible costs of a home improvement performed on behalf of a qualified resident shall not be allowed a tax credit unless the taxpayer performed, or hired a contractor to perform, the home improvement on the primary residence of the qualified resident at no charge to the qualified resident. d. The value of all tax credits approved by the agency pursuant to this section shall not exceed $0 million. e. () A taxpayer shall apply for a certification from the agency, which certifies the taxpayer's eligibility for tax credits and the amount of tax credits to be awarded to the taxpayer pursuant to this section. If claiming that the taxpayer performed work on the primary residence of a qualified resident with a permanent disability, then the taxpayer shall submit to the agency a certification of the qualified resident's permanent disability from a licensed medical doctor, podiatrist, or physician licensed to practice in New Jersey or a neighboring state. The agency shall accept applications for tax credits until the value of all credits approved by the agency reaches the limit set forth in subsection d. of this section. () Upon certification, the agency shall submit a copy of the certification to the taxpayer and to the Director of the Division of Taxation. When filing a tax return that includes a claim for tax
4 S GREENSTEIN, CRUZ PEREZ credits pursuant to this section, the taxpayer shall include a copy of the certification. Tax credits shall be valid in the taxable year in which the agency approves the certification and future taxable years pursuant to paragraph () of subsection b. of this section. f. The executive director of the agency, in consultation with the Director of the Division of Taxation, shall promulgate rules and regulations pursuant to the Administrative Procedure Act, P.L., c.0 (C.:B- et seq.), necessary to carry out the purposes of this section. g. One year after the effective date of P.L., c. (C. ) (pending before the Legislature as this bill), the agency shall submit a report to the Governor and the Legislature, pursuant to section of P.L., c. (C.:-.), detailing the economic and safety benefits realized through the tax credits provided under P.L., c. (C. ) (pending before the Legislature as this bill) and recommend whether the State should continue to provide such tax credits.. This act shall take effect immediately and apply to taxable years beginning on or after January next following enactment. STATEMENT This bill provides $0 million in tax credits to taxpayers who perform home improvements to increase accessibility on the primary residences of qualified residents. A taxpayer can earn a tax credit, not in excess of $,00 against the taxpayer's gross income tax for the eligible costs of a home improvement performed on the primary residence of a qualified resident. The bill defines a qualified resident as a resident of this State who is either years of age or older or less than years of age and permanently disabled. A qualified resident must either reside in a dwelling house owned by him, reside in a dwelling house owned by another, which constitutes the qualified resident's domicile, or reside as a tenant shareholder in a cooperative or mutual housing corporation. Under the bill, a taxpayer would apply for a certification from the New Jersey Housing and Mortgage Finance Agency ("NJHMFA") that certifies the taxpayer' eligibility for tax credits and the amount of tax credits that the State Treasurer may award to the taxpayer under the bill. A licensed medical doctor, podiatrist, or physician licensed to practice in New Jersey, or a neighboring state, must certify to NJHMFA that the qualified resident cannot ambulate without the use of assistive devices, such as a cane, crutch, wheelchair, prosthetic device, or other person. NJHMFA would accept applications for tax credits until the value of all credits approved by NJHMFA reaches the $0 million limit set
5 S GREENSTEIN, CRUZ PEREZ forth in the bill. Upon certification, NJHMFA would submit a copy of the certification to the taxpayer and to the Director of the Division of Taxation. When filing a tax return that includes a claim for tax credits under this bill, the taxpayer will include a copy of the certification. Tax credits awarded under this bill would be valid in the taxable year in which the home improvement has been completed. The taxpayer may carry forward any unused portion thereof, if necessary, for use in the next five taxable years.
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