This bill proposes a temporary tax credit for commercial farm operators in New Jersey who donate fruits and vegetables fit for human consumption to charitable organizations. The credit, applicable for tax periods from January 1, 2024, to January 1, 2029, allows operators to claim 10 percent of the wholesale value of the donated produce against both the corporation business tax and the gross income tax. To qualify for the credit, operators must obtain a written statement from the charitable organization detailing the donation, including the variety, grade, quantity, and wholesale value of the fruits or vegetables. Any unused credits can be carried forward for up to five subsequent tax periods.

Additionally, the bill mandates the Director of the Division of Taxation to prepare an annual report on the utilization of these tax credits, starting December 1, 2025, and continuing for four years thereafter. This report will include data on the number of taxpayers claiming the credits, the total dollar value of credits claimed, and the wholesale value of donated produce, among other details. If the director fails to submit the report on time, they must testify before relevant legislative committees to explain the delay.