Bill > S4954

Introduced Session

The bill, designated as the "Saving Our Diners and Protecting Our Past Act," provides certain tax benefits to historic diners and historic restaurants throughout the State. Specifically, the bill requires the Division of Travel and Tourism in the Department of State to establish an annual historic diner and restaurant registry to certify the historic diners and historic restaurants that have been in continuous operation in the State for at least 25 years. Any historic diner or historic restaurant included on the annual registry would be entitled to: (1) a sales and use tax exemption for the sales of prepared foods and beverages for on premises consumption at the historic diner or historic restaurant; and (2) a corporation business tax or gross income tax credit for a portion of the costs incurred for the purchase of eligible ingredients used in the preparation of foods and beverages at the historic diner or historic restaurant. Historic Diner and Restaurant Registry Under the bill, the Director of the Division of Travel and Tourism in the Department of State is required to solicit applications from the operators of historic diners and historic restaurants throughout the State for inclusion on an annual historic diner and restaurant registry. Operators of these establishments would be required to include any information and documentation deemed necessary by the director to determine whether the diner or restaurant qualifies as a historic diner or historic restaurant. As defined in the bill, a "historic diner" means a food establishment that: (1) serves food and beverages to customers primarily for on-site consumption at a booth, table, or counter setting; (2) engages primarily in the preparation and serving of a wide variety of menu offerings, including, but not limited to, hamburgers, salads, sandwiches, soups, breakfast items, entrees, pastries, pies, and beverages; (3) qualifies as a small business concern within the meaning of the federal "Small Business Act," 15 U.S.C. s.631 et seq.; and (4) has been in continuous operation for at least 25 years, including any period of time in which the establishment was required to suspend dine-in services as a result of a public health emergency. The bill further clarifies that a "historic diner" may only include food establishments that are commonly known and regarded as diners, and shall not include any café, delicatessen, tavern, bar, sandwich shop, or other food establishment. The bill also defines a "historic restaurant" to mean any food establishment that: (1) operates in a fixed location, in which the principal business is the sale of food and beverages to customers for consumption on the premises; (2) has been solely owned and operated by one or more family members for the entire period in which the business has been in operation; (3) qualifies as a small business concern within the meaning of the federal "Small Business Act," 15 U.S.C. s.631 et seq.; (4) is in compliance with all applicable health, safety, and zoning requirements; and (5) has been in continuous operation for at least 25 years, including any period of time in which the establishment was required to suspend dine-in services as a result of a public health emergency. Sales Tax Exemption for Retail Sales at Historic Diners and Restaurants Under current law, the sales of prepared foods and beverages by most food establishments within the State, including diners and restaurants, are subject to the sales and use tax. These transactions are subject to the sales and use tax regardless of whether the food or beverage is sold for consumption on or off premises. The bill would exempt the sales of prepared foods and beverages made at historic diners and historic restaurants for on-premises consumption from the sales and use tax as a means of supporting these establishments at a time when they are facing economic uncertainty. Specifically, this exemption would apply during the 12-month period following the receipt of a sales tax exemption certificate by the operator of the historic diner or restaurant from the Director of the Division of Travel and Tourism in the Department of State, which certificate is to be issued upon the determination that the diner or restaurant has been approved for inclusion on the annual historic diner and restaurant registry. Corporation Business Tax and Gross Income Tax Credits for Eligible Ingredients Under the bill, the operator of a historic diner or historic restaurant that has been included on the annual historic diner and restaurant registry may claim a corporation business tax or gross income tax credit, as applicable, for a portion of the costs incurred for eligible ingredients used in the preparation of foods and beverages. The amount of the tax credit would be equal to 10 percent of the costs incurred by the taxpayer during the taxable period for the purchase of eligible ingredients used in the preparation of foods or beverages at the historic diner or historic restaurant, up to $25,000 per year. The bill defines "eligible ingredients" to mean substances used in the preparation of menu items at a historic diner or historic restaurant, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value, not including alcoholic beverages or tobacco. Under the bill, the operator of a historic diner or historic restaurant would be required to include business records documenting the costs incurred for the purchase of eligible food and food ingredients with their tax return when claiming the tax credit. These business records, together with a tax credit certificate issued by the Director of the Division of Travel and Tourism in the Department of State, would be submitted to the Director of the Division of Taxation in addition to any other information the director may require.

AI Summary

Committee Categories

Jim Beach (D)*,  Paul Moriarty (D)*,  Mike Testa (R), 

Introduced in the Senate, Referred to Senate Economic Growth Committee (on 12/08/2025)

Official Document