Bill Text: NJ S1579 | 2012-2013 | Regular Session | Introduced
Bill Title: Provides a gross income tax credit of up to $7,500 for qualified home purchases made by certain first-time homebuyers in the remaining portion of taxable year 2012, taxable year 2013 and taxable year 2014.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2012-02-13 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S1579 Detail]
Download: New_Jersey-2012-S1579-Introduced.html
Sponsored by:
Senator JENNIFER BECK
District 11 (Monmouth)
Senator CHRISTOPHER "KIP" BATEMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
SYNOPSIS
Provides a gross income tax credit of up to $7,500 for qualified home purchases made by certain first-time homebuyers in the remaining portion of taxable year 2012, taxable year 2013 and taxable year 2014.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a gross income tax credit of up to $7,500 for qualified home purchases made by certain first-time homebuyers in the remaining portion of taxable year 2012, taxable year 2013 and taxable year 2014, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. (1) A qualified taxpayer shall be allowed a credit against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for taxable years beginning on or after January 1, 2012 but before January 1, 2015, in an amount equal to ten percent of a qualified home purchase price or $7,500, whichever is less.
(2) If two or more qualified taxpayers make a qualified home purchase jointly, the amount of the credit allowed shall be allocated among such individuals in such manner as the director may prescribe, except that the total amount of the credits allowed to the qualified taxpayers for the qualified home purchase shall not exceed $7,500.
b. If a taxpayer's filing status is single, married or civil union filing separately, head of household or qualifying widow or widower or surviving civil union partner and the qualified taxpayer has gross income for the taxable year that exceeds $225,000, the amount of the credit allowed under subsection a. of this section for the taxable year shall be reduced by the amount calculated by: (1) dividing the amount of the qualified taxpayer's gross income in excess of $225,000, but not exceeding $245,000, by $20,000; (2) subtracting 1.0 from the resultant quotient; and (3) multiplying the absolute value of the resultant difference by $7,500.
c. If a qualified taxpayer's filing status is married or civil union filing jointly and the qualified taxpayer has gross income for the taxable year that exceeds $450,000, the amount of the credit allowed under subsection a. of this section for the taxable year shall be reduced by the amount calculated by: (1) dividing the amount of the qualified taxpayer's gross income in excess of $450,000, but not exceeding $470,000, by $20,000; (2) subtracting 1.0 from the resultant quotient; and (3) multiplying the absolute value of the resultant difference by $7,500.
d. If the credit allowed pursuant to subsection a. of this section reduces a qualified taxpayer's tax liability otherwise due to zero, any amount of credit remaining shall be paid to the qualified taxpayer as a refund of an overpayment of tax pursuant to N.J.S.54A:9-7, provided however, subsection (f) of that section, concerning the allowance of interest, shall not apply. The director shall determine the form and manner by which a qualified taxpayer shall apply for and be eligible to receive a refund of an overpayment pursuant to this section.
e. As used in this section:
"Qualified residential property" means a dwelling house, a condominium unit under the form of real property ownership provided for under the "Condominium Act," P.L.1969, c.257 (C.46:8B-1 et seq.), a unit in a cooperative or mutual housing corporation, a unit in a horizontal property regime under the form of real property ownership provided under the "Horizontal Property Act," P.L.1963, c.168 (C.46:8A-1 et seq.), a unit in a continuing care retirement community, or a manufactured home that is taxable as real property or that is installed in a mobile home park.
"Qualified home purchase" means: the acquisition, by sale, on or after the effective of P.L. , c. (C. ) (pending before the Legislature as this bill) but before January 1, 2015, of a qualified residential property located in this State which is occupied as the qualified taxpayer's principal residence; or the construction of a new qualified residential property located in this State paid for by the qualified taxpayer and occupied as the qualified taxpayer's principal residence.
"Qualified taxpayer" means a gross income taxpayer who has not owned a principal residence in the three years immediately preceding the date of a qualified home purchase. A qualified taxpayer does not include a taxpayer that has a gross income exceeding $245,000, whose filing status is single, married or civil union filing separately, head of household or qualifying widow or widower or surviving civil union partner. A qualified taxpayer does not include a taxpayer that has a gross income exceeding $470,000, who files a joint return.
2. This act shall take effect immediately.
STATEMENT
This bill provides a gross income tax credit of up to $7,500 for qualified home purchases made by certain first-time homebuyers in the remaining portion of taxable year 2012, taxable year 2013 and taxable year 2014. The purpose of this measure is to encourage first-time homebuyers to venture into the housing market and spur the economic activity generally associated with home purchases.
Under the bill, qualified taxpayers can take 10% of their qualified home purchase price or $7,500, whichever is less, as a refundable credit under the gross income tax. The full amount of the credit is available for certain taxpayers filing individually with $225,000, or less, in gross income and certain joint filers with $450,000, or less, in gross income. For certain taxpayers filing individually with gross income less than $245,000 but more than $225,000 and certain joint filers with gross income less than $470,000 but more than $450,000, the maximum amount of the credit phases down to zero based on income level. The credit is not available for certain taxpayers filing individually with gross income in excess of $245,000 and certain joint filers with gross income in excess of $470,000.
The credit offered is available for qualified home purchases made on or after the effective date of this bill but before January 1, 2015.
