Senate Commerce Committee Statement to Senate, No. 1444 (State of New Jersey, May 16, 2022)

Summary

This is a Senate Commerce Committee statement to the New Jersey Senate on Senate Bill No. 1444, with committee amendments, dated May 16, 2022. The committee reports the bill favorably. As amended, the bill provides a refundable gross income tax credit for 50 percent of early home mortgage principal payments made in addition to required monthly payments. The credit is allowed up to $1,000 per year for up to 10 taxable years, and the statement says the bill is modeled on the federal Building Equity for the American Middle-Class Act (BEAM Act). The $1,000 limit phases down for single taxpayers with taxable income between $125,000 and $135,000 and for joint filers between $250,000 and $270,000. The committee amendment sets the joint-filer phase-out at five percent for every $1,000 of taxable income in that range.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

     SENATE COMMERCE COMMITTEE

                   STATEMENT TO

                 SENATE, No. 1444
                  with committee amendments



 STATE OF NEW JERSEY
                      DATED: MAY 16, 2022

    The Senate Commerce Committee reports favorably and with
committee amendments Senate Bill No. 1444.
   As amended, this bill provides for a refundable gross income tax
credit for 50 percent of early home mortgage principal payments
that taxpayers make in addition to their required monthly mortgage
payments. Extra payments made in addition to home mortgage
required monthly payments are required to be credited as a payment
on the principal amount of the mortgage loan amount. The annual
refundable tax credit is allowed up to $1,000 per year and can be
claimed for up to 10 taxable years. This bill is modeled on federal
legislation referred to as the Building Equity for the American
Middle-Class Act (BEAM Act) that will encourage families to build
equity in their home, pay down their home mortgage more quickly,
thus creating more wealth while securing the American dream of
homeownership. This bill will provide a gross income tax break
that rewards middle class families that chose to more quickly pay
down the principal amounts of their home mortgages.
   Mortgages eligible for this tax credit are purchase money
mortgages or refinanced purchase money mortgages that must: (1)
be for a primary residence, (2) be for a term between 15 and 30
years, and (3) require payments that are each the same amount and
made in equal intervals during the term of the mortgage. The
$1,000 limit on the amount of the credit phases down for single
taxpayers who have taxable income between $125,000 and
$135,000 and for married individuals filing jointly who have
taxable income between $250,000 and $270,000. No credit is
allowed for single taxpayers with taxable income over $135,000 and
for married individuals filing jointly with taxable income over
$270,000. Married individuals must file a joint return to claim the
credit.

COMMITTEE AMENDMENTS
    The committee amended the bill to require the credit for married
individuals filing jointly to phase out at a rate of five percent for
every $1,000 of taxable income between $250,000 and $270,000.


File and source

File

2022-05-16_SCM_S1444_S1.pdf

Size

9,123 bytes

SHA-256

f358fb579700c1490b8bc7068d8314b36c99781117431c30bebed6e508286477

Our copy

2022-05-16_SCM_S1444_S1.pdf

Original

No public link identified.