New JerseyMixed-income housing projects would qualify for a partial sales tax break
Contractors would get a tax break matching the share of homes reserved for residents with moderate, low, or very low incomes, if that share reaches 20%.
What it does
Housing projects with at least 20% income-restricted homes would qualify for a sales and use tax break on contractors’ purchases. The exempt share would match the share of homes with income limits.
Argument forThe tax break could lower building and repair costs for projects that reserve at least 20% of homes for residents with income limits.
Argument againstThe state could collect less sales and use tax revenue by exempting part of purchases that currently do not qualify.
More detail
The state would exempt a matching share of contractors’ and repair workers’ purchases from sales and use taxes. Materials, supplies, and services must be used only to build, improve, or repair projects reserving at least 20% of homes for residents with moderate, low, or very low incomes. Applicants would have to follow the state tax director’s rules and use required forms. This would cover sales on or after the first day of the second month following enactment.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 19Introduced, Referred to Assembly Housing CommitteeIntroduced
HousingTaxes & Budget