This bill aims to promote the development and construction of anaerobic digestion facilities that process food waste in New Jersey by providing a tax credit against the corporation business tax. The tax credit will be available for six privilege periods, starting from January 1 following the bill's effective date, and will cover up to 50 percent of the costs incurred in developing and constructing the facility, with a maximum limit of $250,000. Additionally, the total value of tax credits awarded under this bill is capped at $15 million. To qualify for the credit, taxpayers must apply to the Commissioner of Environmental Protection, demonstrating that their facility is eligible and has been constructed prior to the application.

The bill also includes provisions for the Department of Environmental Protection to adopt necessary rules and regulations for implementation and mandates a report to be submitted to the Governor and Legislature within six years of the bill's effective date, summarizing the tax credit's effectiveness in incentivizing anaerobic digestion facilities. By facilitating the conversion of food waste into biogas, the bill seeks to reduce landfill waste, mitigate greenhouse gas emissions, and promote renewable energy generation, thereby addressing environmental concerns associated with food waste disposal.