Bill > A148

Introduced Session

This bill provides New Jersey farmers with a credit against their annual New Jersey gross income tax determined by using income averaging (averaging out yearly gains and losses or varying levels of gains over a four-year period) from their farming business. The value of the credit is equal to the difference between a New Jersey farmer's income without four-year farming income averaging and with farming income averaging. The maximum annual credit allowed is $5,000. Farmers are faced with a variety of risks that impact the economic viability of their farming operations. Risks associated with production, weather, financial management, marketing and labor influence the potential for success. In order to assist farmers, the federal government enacted income averaging provisions that would permit farmers to have more control over the cyclical nature of agricultural risks and even out their tax liabilities for a more secure future. This New Jersey tax credit will provide farmers with New Jersey gross income tax relief in taxable years that follow the less profitable years of their New Jersey farming business.

AI Summary

Committee Categories

Dawn Fantasia (R)*,  Michael Inganamort (R)*, 

Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee (on 01/09/2024)

Official Document