Five-Year Exemption and Abatement Law

N.J.S.A. 40A:21-1 et seq.

Authorizes a municipality that has designated all or part of the municipality an "area in need of rehabilitation" to enact an ordinance granting property tax exemptions and/or abatements for up to five years for home improvements, new construction, commercial and industrial structures, and the conversion or improvement of multiple dwellings. Owners apply by filing Form E/A-1 with the municipal tax assessor within 30 days of completion of the construction, improvement, or conversion. For one- or two-family dwellings, the annual abatement may not exceed 30% of the total cost of the construction or conversion alteration; commercial, industrial, and multiple-dwelling projects are instead handled through tax agreements (PILOTs) rather than a flat 30% cap.