The bill establishes the New Jersey Homebuyer Tax Credit Program, which will give new homeowners credits worth etiher $15,000 or five percent of the home purchase price, whichever is less. It will be distributed over a three year period on a first come, first serve basis for purchases during 2010.
The bill passed 66-8, with three abstentions and still needs to pass in the state Senate.
The total payout from the state is capped at $100 million, though supporters of the bill and members of the homebuidling industry who pushed for it said it will generate far more revenue from the creation of jobs related to the industry and other related economic activity.
$75 million of the credit is reserved for new construction, while $25 million is set aside for buyers of existing homes.
The credit, which will start in 2011, comes after an $8,000 tax credit federal first-time homebuyer and $6,500 for for repeat buyers expired on April 30.
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