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Bill > S4095
NJ S4095
NJ S4095Provides corporation business and gross income tax credits for acquisition of qualified farming equipment.
summary
Introduced
02/03/2025
02/03/2025
In Committee
02/03/2025
02/03/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill provides corporation business and gross income tax credits to taxpayers that acquire qualified farming equipment used directly for an eligible farming operation. Specifically, the credits would be for 10 percent of the amount paid during the privilege period or taxable year for the acquisition of farming equipment, but not to exceed 25 percent of the taxpayer's tax liability. In order to claim the credit provided under the bill, a taxpayer would be required to submit an application to the Secretary of Agriculture for certification that the taxpayer is engaged in an eligible farming operation and has acquired qualified farming equipment during the privilege period or taxable year. A copy of the certification would be required to be included with the taxpayer's tax return when such return is filed. The Secretary of Agriculture would be required to establish a process by which applications for certification may be submitted. The bill defines "qualified farming equipment" as any equipment that is used directly for an eligible farming operation and "eligible farming operation" as any activity connected to the commercial growing, harvesting, processing, producing, or raising of agricultural products in the State including crops, dairy animals, livestock, fur-bearing animals, poultry, bees, crops used in fermented alcoholic beverages and wine, and any products therefrom, including organic agricultural products, aquacultural products, horticultural products, and silviculture products.
AI Summary
This bill provides tax credits to farmers in New Jersey for purchasing qualified farming equipment, allowing both corporation business and gross income taxpayers to claim a 10% credit for equipment acquisition, not to exceed 25% of their total tax liability. To receive the credit, farmers must apply to the Secretary of Agriculture for certification, demonstrating they are engaged in an "eligible farming operation" and have purchased equipment directly used in agricultural activities. An eligible farming operation is broadly defined to include commercial agricultural activities such as growing crops, raising livestock, processing agricultural products, and producing items like dairy, poultry, and horticultural products. The bill establishes a 90-day review process for applications, with automatic approval if the secretary does not respond within that timeframe. If a taxpayer cannot use the entire credit in a given year due to tax liability limitations, they can carry forward the unused credit for up to seven subsequent years. The tax credits apply to privilege periods and taxable years beginning after January 1 of the year following the bill's enactment, and the Secretary of Agriculture, in consultation with the Division of Taxation, will develop specific rules and regulations to implement the program.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Economic Growth Committee (on 02/03/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S4095 |
| BillText | https://pub.njleg.gov/Bills/2024/S4500/4095_I1.HTM |
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