New Jersey Assembly Bill A2528

New Jersey 2022-2023 Regular Session

• Introduced: 2/14/22
• Refer: 2/14/22

Caption

Provides gross income tax credit to certain totally and permanently disabled veterans for rent constituting property taxes.

Impact

Under the provisions of A2528, disabled veterans who qualify can apply for a refundable tax credit that is applicable against their gross income tax obligation. This credit, calculated to be 18% of the rent paid during the taxable year, is designed to alleviate financial burdens associated with living expenses, especially for those veterans who may already face difficulties due to their disabilities. Additionally, the bill includes provisions for the surviving spouses of qualifying veterans, allowing them to claim the same credit under specific circumstances.

Summary

Assembly Bill A2528 aims to provide a gross income tax credit specifically tailored for certain totally and permanently disabled veterans in New Jersey. The bill aims to create parity between disabled veterans who own their homes and those who rent, acknowledging that the latter currently do not benefit from similar tax exemptions available to homeowners. The credit is equivalent to rent that constitutes property taxes for the residential unit occupied by the disabled veteran as their principal residence.

Contention

While the bill has strong support for its intention to assist disabled veterans, notable points of discussion may include its fiscal implications on state revenue and how effective it would be in addressing the needs of disabled veterans across New Jersey. Potential concerns may also arise from those opposing the bill regarding the adequacy of resources allocated for implementation and administration of such tax credits. Despite this, supporters argue that such financial relief is essential for supporting the welfare of veterans who have served the country.