Bill > S2863

Introduced Session

This bill would provide one-time corporation business tax and gross income tax credits to certain State-certified organic farmers who are required in 2022 to obtain certification for organic agricultural products from an accredited certifying agent outside of the New Jersey Department of Agriculture. In a notice dated January 11, 2022, the department informed currently certified organic farmers within the State that department certification for organic agricultural products would be surrendered effective May 30, 2022 and that the department would no longer certify or inspect organic operations. Organic farmers that are certified with the department would be required to, within 60 of days of the date of the department's notice, apply to another Accredited Certification Agency for an organic certification. For the privilege period and taxable year beginning on or after January 1, 2022, but before January 1, 2023, a qualified taxpayer who meets the requirements of the bill would be allowed a credit against the corporation business tax or gross income tax in an amount equal to the difference between: the fees incurred by the qualified taxpayer to obtain from an accredited certifying agent certification for organic agricultural products for the period beginning on May 30, 2022 and ending on December 31, 2022; and the fees incurred by the qualified taxpayer to obtain from the department certification for organic agricultural products pursuant to P.L.2003, c.176 (C.4:10-79) for that same period. To qualify for a credit, a taxpayer would have to apply for a certification from the Department of Agriculture that certifies: the fees incurred by the qualified taxpayer to obtain from an accredited certifying agent certification for organic agricultural products for the period beginning on May 30, 2022 and ending on December 31, 2022; the fees incurred by the qualified taxpayer to obtain from the department certification for organic agricultural products pursuant to P.L.2003, c.176 (C.4:10-79) for the period beginning on May 30, 2022 and ending on December 31, 2022; and the amount of the tax credit to which the qualified taxpayer is entitled. The application would include such information as the department determines relevant. When filing a tax return that includes a claim for a credit pursuant to this bill, the taxpayer would have to include a copy of the certification issued by the department. Under the bill, if a qualified taxpayer incurs fees to obtain from the department or other accredited certifying agent annual certification for organic agricultural products, the department is required to calculate the tax credit by: (1) prorating the fees incurred by the taxpayer to reflect the period beginning on May 30, 2022 and ending on December 31, 2022; and (2) subtracting (a) the fees incurred by the qualified taxpayer to obtain certification from the department for that period from (b) the fees incurred by the qualified taxpayer to obtain certification from an accredited certifying agent during that period. Under the bill, a "qualified taxpayer" means any person or entity: who produces and sells organic agricultural products in adherence to applicable federal standards for such products; who was certified by the department pursuant to P.L.2003, c.176 (C.4:10-79) on January 11, 2022; who paid fees to the department in connection with certification for organic agricultural products for the period beginning on May 30, 2022 and ending on December 31, 2022; who was certified by an accredited certifying agent during the period beginning on May 30, 2022 and ending on December 31, 2022, and who paid fees to the accredited certifying agent in connection with that certification; and whose fees for certification by an accredited certifying agent during the period beginning on May 30, 2022 and ending on December 31, 2022 exceeded the qualified taxpayer's fees for certification by the department during that same period. The bill defines "accredited certifying agent" as a person or entity that operates as an accredited certifying agent under the National Organic Program.

AI Summary

Committee Categories

Andrew Zwicker (D)*, 

Introduced in the Senate, Referred to Senate Economic Growth Committee (on 03/04/2024)

Official Document