Bill > A4775

This bill provides tax credits for commercial farm operators, defined as those primarily responsible for the day-to-day operation of a farm where fruits and vegetables are grown, who donate produce fit for human consumption to food banks located in New Jersey. For privilege periods beginning on or after January 1, 2016, and before January 1, 2021, these operators can claim a credit against their corporation business tax equal to 10 percent of the wholesale value of the donated fruits and vegetables. Similarly, for taxable years beginning on or after January 1, 2016, and before January 1, 2021, commercial farm operators can claim a credit against their gross income tax for 10 percent of the wholesale value of such donations. To qualify for these credits, the farm operator must obtain a written statement from the food bank detailing the donation, including its wholesale value, variety, grade, and quantity, as well as the location where the produce was grown. The wholesale value is determined by either the operator's average wholesale sales price for similar produce in the month of donation or, if no such sales occurred, by the average price at the nearest terminal market. These credits are subject to limitations, including not exceeding 50 percent of the tax liability and can be carried forward for up to 20 years. The Director of the Division of Taxation will also prepare an annual report detailing the utilization of these credits.