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  • NJ A1760
  • Provides corporation business tax and gross income tax credits for value of certain fruit and vegetable donations made by commercial farm operators.
In Committee
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill provides a credit against the corporation business tax and the gross income tax for the value of certain donations of fruits and vegetables that are made to food banks by commercial farm operators over a five-year period beginning January 1, 2016. Under the bill, commercial farm operators who make donations of fruits or vegetables fit for human consumption to a food bank located in this State during tax periods beginning on or after January 1, 2016 but before January 1, 2021 are allowed to claim a credit that can be used to reduce the commercial farm operator's liability for tax. The bill provides that the amount of the credit is equal to 10% of the wholesale value of the fruits or vegetables donated to the food bank during the tax period of the donation, as determined using a quantity-weighted average of comparable wholesale sales of similar fruits or vegetables made by the commercial farm operator during the month of the donation or, if no comparable sales are made, the overall average price paid for similar fruits or vegetables at the nearest regional market during the month of the donation. The bill requires commercial farm operators claiming the credit to obtain a written statement from the food bank to substantiate each donation of fruits or vegetables. The bill provides that the statement must include certain information regarding the donated fruits or vegetables, the commercial farm operator making the donation, and the food bank receiving the donated fruits or vegetables. The bill specifies that commercial farm operators must include a copy of each statement issued by a food bank when filing a return that includes a claim for the credit. The bill requires the Director of the Division of Taxation in the Department of the Treasury to prepare an annual report on the utilization of the credits provided by the bill. The bill provides that the report must be prepared to document the utilization of credits by commercial farm operators in each year of the five-year period for which credits are allowed, and must, at a minimum, describe: the number of taxpayers claiming the tax credits, the total dollar value of tax credits claimed by commercial farm operators, the wholesale value of fruits and vegetables donated, the counties in which the greatest percentage of donated fruits or vegetables were harvested, the months in which the greatest percentage of fruits and vegetables were donated, and the food banks benefiting from the donated fruits and vegetables. The purpose of this bill is to provide an incentive that will encourage operators of commercial farms to donate surplus crops of fruits and vegetables to local area food banks. The surplus produce donated as a result of the bill will increase the amount and diversity of fresh, healthy foods available for distribution in the hunger relief system. Additionally, the donated produce will reduce the current level of unmarketable but perfectly edible produce that goes unharvested or that is harvested but becomes waste because it fails to meet quality or appearance criteria.
2nd Reading in the Assembly, Environment and Solid Waste
Reported out of Assembly Committee, 2nd Reading  (on 6/19/2017)
Date Chamber Action Description
6/19/2017 Assembly Appropriations Hearing (19:00 6/19/2017 Revised 6/16/17 - A2167 and A4586 have been added. In addition t)
6/19/2017 A Reported out of Assembly Committee, 2nd Reading
6/19/2017 Assembly Appropriations Hearing (19:00 6/19/2017 )
5/18/2017 A Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee
1/27/2016 A Introduced, Referred to Assembly Environment and Solid Waste Committee
Date Motion Yea Nay Other
Detail 6/19/2017 Assembly Appropriations Committee: Reported Favorably 11 0 0
Detail 5/18/2017 Assembly Environment and Solid Waste Committee: Reported with Amendments 6 0 0