N.J. Bill Seeks to Counter Federal Tax Bill That Capped Property Taxes
August 6, 2018
A New Jersey state senator is sponsoring a bill to help homeowners in the state save up to $1,000 on their mortgage payments through a new tax credit. State Sen. Troy Singleton, D-Burlington, is sponsoring the bill to counter a federal tax-code change that took effect at the end of 2017 that capped write-offs for state and local taxes at $10,000. New Jersey homeowners face high property taxes so the new federal tax bill was expected to hit the state particularly hard.
Under Singleton’s bill, single homeowners earning $125,000 per year or married couples earning $250,000 a year would be eligible for a credit on state taxes of up to 50 percent of their mortgage prepayments, at a cap of $1,000. The tax credit would be available for 10 years to individuals with a 15- or 30-year fixed-rate mortgage on their primary residence or refinanced mortgages with regular mortgage payments.
Singleton says the bill aims to offer some relief to middle-class homeowners. “We believe that this will not only help individuals pay down their mortgage faster, but also makes it easier for them to make ends meet on a day to day sort of way,” he says.
The bill still has to weave through the state legislature for approval. So far, it’s been approved by the state’s Senate Community and Urban Affairs Committee and next heads to the Budget Committee.
Updated: May 24, 2019