ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 3365

STATE OF NEW JERSEY

DATED:  JANUARY 29, 2024

      The Assembly Housing Committee reports favorably Assembly Bill No. 3365.

      This bill allows taxpayers to depreciate a percentage of eligible property expenditures, meaning capital expenditures incurred by the taxpayer in connection with the construction of a new affordable housing development owned by the taxpayer, over a ten-year period. 

      For purposes of calculating the percentage of eligible property expenditures that may be depreciated by a taxpayer pursuant to the bill, the taxpayer is to apply the following formula: 2 x (the number of affordable housing units in the development / the number of non-affordable housing units in the development).

      Under the bill, “affordable housing development” means a development that includes one or more units of housing, at least 20 percent of which qualify as affordable housing.  The bill defines “affordable housing” as housing occupied or restricted to occupancy by households with income no greater than 80 percent of the regional median income, including, but not limited to, housing that is deed restricted as affordable pursuant to the “Fair Housing Act,” P.L.1985, c.222 (C.52:27D-301 et al.).