Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

This bill changes New Jersey's tax code to provide a refundable tax credit instead of a deduction for residential tenants. It allows renters who use their rental unit as a primary home to claim a credit equal to 30% of their rent (capped at $15,000 annually), based on rent paid for the unit. This credit directly affects renters in apartments, condos, and other residential rental properties who occupy the unit as their main residence. The change replaces the current tax deduction system with a credit that provides direct tax savings, even if the tenant doesn't owe income tax. The bill is currently pending in the Senate Budget Committee after introduction on January 9, 2024.