Singleton, Bucco Bill To Establish Disabled Veteran Tenant Gross Income Tax Credit Clears Committee

TRENTON – Legislation sponsored by Senate Military and Veterans’ Affairs Committee Chair Troy Singleton and Senator Anthony Bucco that would establish a disabled veteran tenant gross income tax credit cleared the Senate Military and Veterans’ Affairs Committee today.

“We have a moral obligation to do everything in our power to assist our veterans, especially those who are disabled resulting from their time in the service,” said Senator Singleton (D-Burlington). “For many of our disabled vets, real estate prices preclude them from home ownership and they rent instead. In doing so, they are not eligible for veterans’ property tax relief programs. This proposal would allow them to claim a maximum tax credit of $1,000 for the portion of their rent that goes towards property taxes, relieving some of their financial burden.”

The bill, S-2197, would establish a disabled veteran tenant gross income tax credit.  The bill would allow a disabled veteran to claim a nonrefundable credit, up to a maximum allowable amount of $1,000, for that portion of the veteran’s rent constituting property taxes.

Under the bill, if a qualifying disabled veteran is married but is filing with a status of “married, filing separately,” each spouse will be entitled to claim one half of the credit for which the disabled veteran qualifies.  However, if a qualifying disabled veteran rents a homestead with another taxpayer, other than the qualifying disabled veteran’s spouse, the qualifying disabled veteran could only claim a credit for the rent constituting property taxes that the qualifying disabled veteran actually paid.

The credit established by the bill could be claimed in addition to the $50 credit that can be claimed by a taxpayer or a resident, 65 years of age or older, blind or disabled not subject to tax, whom paid rent constituting property taxes on a homestead.

The bill was released from committee by a vote of 5-0, and next heads to the Senate Budget and Appropriations Committee for further consideration.

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