Bill Text: NJ A3789 | 2016-2017 | Regular Session | Introduced
Bill Title: Provides tax credits for constructing or renovating homes to improve accessibility for persons with disabilities.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2016-05-23 - Introduced, Referred to Assembly Housing and Community Development Committee [A3789 Detail]
Download: New_Jersey-2016-A3789-Introduced.html
Sponsored by:
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
SYNOPSIS
Provides tax credits for constructing or renovating homes to improve accessibility for persons with disabilities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning gross income tax credits for constructing or renovating homes to improve accessibility for persons with disabilities and supplementing P.L.1983, c.530 (C.55:14K-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Agency" means the Housing and Mortgage Finance Agency established pursuant to section 4 of the "New Jersey Housing and Mortgage Finance Agency Law of 1983," P.L.1983, c.530 (C.55:14K-4).
"Home improvement" means a construction or renovation project requiring a building permit, which increases the accessibility of an existing residence for persons with disabilities.
"Purchase of a new residence" means a transaction involving the first sale of a newly constructed residence or dwelling that conforms to the standards required under chapter 11 of the 2015 International Building Code, as adopted by New Jersey, and the federal "Americans with Disabilities Act of 1990" (42 U.S.C. s.12101 et seq.) and any regulations adopted pursuant to that act.
"Person with a disability" means a person with a physical disability, infirmity, malformation, or disfigurement which is caused by bodily injury, birth defect, aging, or illness including epilepsy and other seizure disorders, and which shall include, but not be limited to, any degree of paralysis, amputation, lack of physical coordination, blindness or visual impediment, deafness or hearing impediment, muteness or speech impediment, or physical reliance on a service or guide dog, wheelchair, or other remedial appliance or device.
"Retrofitting" means a home improvement to improve accessibility, provide universal visitability, and conforms to the standards required under the chapter 11 of the 2015 International Building Code, as adopted by New Jersey, and the federal "Americans with Disabilities Act of 1990" (42 U.S.C. s.12101 et seq.) and any regulations adopted pursuant to that act.
"Visitability" means a design approach in which homes provide easy access for persons with disabilities.
b. (1) Up to the limits established in paragraph (1) of subsection c. 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.54A:1-1 et seq., for a portion of the purchase price of a new residence or amounts expended to retrofit an existing residence.
(2) A tax credit awarded under this section shall not exceed:
(a) $5,000 for the purchase of a new residence; or
(b) 50 percent of the total amount expended, but not to exceed $5,000, for the retrofitting of an existing residence.
(3) Tax credits for eligible costs shall be awarded for the taxable year during which the purchase of the new residence or retrofitting 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 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 awarded 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.54A:1-1 et seq.
(4) A partnership shall not be awarded a credit under this section directly, 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.
(5) A New Jersey S Corporation shall not be awarded a credit directly under this section, 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. (1) The value of all tax credits awarded by the agency in any tax year pursuant to this section shall not exceed $1 million. In each tax year, the agency shall allocate $500,000 in tax credits for the purchase of new residences and $500,000 in tax credits for the retrofitting of existing residences. In no case shall the agency approve more than one application for tax credits relating to the same retrofitting work or construction project
(2) A taxpayer shall submit an application for a tax credit to the agency. The agency shall determine the taxpayer's eligibility for a tax credit and the amount of a tax credit and shall issue a certification awarding the tax credit to the taxpayer. The agency shall accept applications for tax credits until the value of all credits awarded by the agency reaches the limit set forth in paragraph (1) of this subsection.
(3) When filing a tax return that includes a claim for tax credits pursuant to this section, the taxpayer shall include a copy of the certification.
d. 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.1968, c.410 (C.52:14B-1 et seq.), necessary to carry out the purposes of this section.
2. This act shall take effect immediately and apply to taxable years beginning on or after January 1 next following enactment.
STATEMENT
This bill would authorize the award of $1 million in tax credits to taxpayers who improve accessibility of new and existing residences. Under the bill, a taxpayer can earn a tax credit, of $5,000 for the purchase of a new residence or for 50 percent of the total amount expended, but not in excess of $5,000, for the retrofitting of an existing residence.
Under the bill, a taxpayer would apply for a certification from the New Jersey Housing and Mortgage Finance Agency ("NJHMFA") that certifies the taxpayer's eligibility for tax credits and the amount of tax credits that the State Treasurer may award to the taxpayer under the bill. NJHMFA would accept applications for tax credits until the value of all credits awarded by NJHMFA reaches the $1 million annual limit set forth in the bill. In each year, NJHMFA would allocate $500,000 in tax credits for the purchase of new residences and $500,000 in tax credits for the retrofitting of existing residences. Upon certification, NJHMFA would submit a copy of the certification to the taxpayer. 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 during which the purchase of the new residence or retrofitting of an existing residence has been completed. The taxpayer may carry forward any unused portion thereof, if necessary, for use in the next five taxable years.
