New Jersey Senate Bill S2391

New Jersey 2024-2025 Regular Session

• Introduced: 1/29/24
• Refer: 1/29/24

Caption

"Homeowners' Historic Property Reinvestment Act"; allows homeowners to claim credit against gross income tax for certain costs of rehabilitating historic properties.

Impact

The implementation of SB S2391 is anticipated to significantly impact state tax law by allowing for substantial tax credits which can help stimulate the rehabilitation of historic properties that may otherwise remain unused or neglected. To qualify for this credit, properties must meet specific criteria and homeowners are required to occupy the rehabilitated property as their principal residence for a minimum of twelve consecutive months following the completion of the work. Additionally, rehabilitation costs must amount to at least 50% of the equalized assessed value of the property, ensuring that significant investment occurs.

Summary

Senate Bill S2391, known as the 'Homeowners' Historic Property Reinvestment Act,' is designed to provide homeowners in New Jersey with a financial incentive to rehabilitate historic properties. Under this act, homeowners can claim a refundable tax credit against their gross income tax for a portion of the costs associated with the rehabilitation of qualified historic properties. The credit is set at 25% of the outlay for rehabilitating the property, up to a maximum of $25,000 per property over a ten-year period. This initiative aims to encourage the preservation and enhancement of historic structures throughout the state.

Contention

Notable points of contention surrounding SB S2391 may involve the perceived fairness of tax credits geared specifically toward homeowners of historic properties. Critics might argue that while the bill promotes preservation, it also allocates state resources towards private property owners, potentially at the expense of broader public programs. Furthermore, the cap on the total tax credits available, which is set at $15 million cumulatively, may lead to debates regarding resource allocation and the adequacy of support for extensive rehabilitation projects. This limitation raises questions about prioritization and the extent to which these credits will effectively foster the intended economic development in the preservation sector.