New Jersey’s tax credit will increase to $1,000 from $1.50 a month, a move that will make it the most expensive state to rent a home in the country.
The state’s tax incentive program is one of two in the nation that give renters a cash payment to help cover the cost of a new home.
The other, called a mortgage, was phased out in 2018, and New Jersey has had a new tax credit program in place since.
It is called the Home Owner Assistance Program and offers an average of $750 to help a renter pay the mortgage and first $1 million in down payment costs.
The state’s $1-million credit is capped at $500,000.
The increase means New Jersey will offer an average annual payment of $1 in 2019, according to a spokeswoman for New Jersey Housing and Community Development.
The average annual payments have been around $700 a month since the credit was implemented in 2015, according the spokeswoman.
The credit also provides $50,000 in home equity loans.
A spokesperson for the state Housing Department said that the average annual mortgage payment for New York City homes was $1 ,000.
But in a letter to the New York Times on Tuesday, the New Jersey housing department said that average annual rent payments are higher.
The average annual monthly payments for New Yorkers are about $2,300, according data from the Federal Housing Finance Agency.
New Jerseyans paying $500 or less in mortgage payments, about $1 per month, are likely to qualify for the new program.
The spokesperson for Newhouse, which provides financing to about 70 percent of households, said the state is offering a loan to help low-income households with down payments of up to $500 and to help families buy a home that is less than 5,000 square feet.
The New Jersey Tax Credit Program is designed to help people pay down debt, buy homes and pay for medical expenses, according its website.
New Jersey is among the states that offer a $500 federal tax credit, and the state offers two different types of loans, according a spokesman for the Newhouse spokesman.
The first type, called the Low Income Homeowner Loan, has an interest rate of 3 percent and can be paid with cash or checks.
The second type, the Low Down Payment Homeowners Loan, is similar but offers a 6.75 percent interest rate.
The Low Income Homes, which can cost up to half a million dollars, are typically for people who are struggling financially.
The program helps low- and moderate-income New Jersey residents afford to buy a $200,000 house.
It is estimated that one in five New Jersey households are considered low income, and about three in four are living below the poverty line.
About 80 percent of low-wage earners are renters, according census data.
The Housing Department did not immediately respond to a request for comment.
The housing department spokesman said that New Jersey is providing about $400 million in funding over the next two years to help lower-income families purchase homes.