Housing Tax Credit Bill Gets Final Legislative Approval
By Jon Whiten • Jun 11th, 2010 • Category: Blog, News, Politics
A state bill designed to help jump-start New Jersey’s housing market by creating a tax credit for home purchases received final legislative approval yesterday when the Senate unanimously approved it. The bill, which was passed by the Assembly last month, now heads to Gov. Christie’s office for consideration.
The bill, which was sponsored by Hudson County Assemblymen Vincent Prieto and Ruben Ramos and three other members of the Assembly, would provide refundable income tax credits for up to $15,000 or 5 percent of any home purchase price. The total amount of an individual’s credit would then be divided into three equal credits claimed over three taxable years.
The New Jersey Homebuyer Tax Credit Program, as it is called, would apply to purchases made within a year of the bill becoming law, and the total credits available would be capped at $100 million — with $75 million allocated for purchases of newly constructed homes not previously occupied and $25 million allocated for purchases of previously occupied homes. The credits would be awarded on a first-come, first-serve basis.
The bill’s sponsors sung its praises as it passed the legislature yesterday, with Prieto calling it “a creative and sensible way to revitalize our housing market and our economy” and Ramos saying it could help push a fragile — but improving — housing market forward.
“Our housing market has been showing signs of recovery,” he said, “and this program can give it the boost it really needs to truly make a comeback.”
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Jon Whiten is the founding editor of the Jersey City Independent; he now works for a public-policy nonprofit in Trenton.
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