STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator M. TERESA RUIZ
District 29 (Essex and Hudson)
Senator NILSA I. CRUZ-PEREZ
District 5 (Camden and Gloucester)
Co-Sponsored by:
Senators Singleton, Turner and Space
SYNOPSIS
Provides corporation business tax and gross income tax credits for value of certain fruit and vegetable donations made by commercial farm operators.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing credits against the corporation business tax and the gross income tax for the value of certain fruit and vegetable donations made by commercial farm operators, supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For privilege periods beginning on or after January 1, 2024 but before January 1, 2029, a commercial farm operator that makes a donation of fruits or vegetables fit for human consumption to a charitable organization located in this State shall be allowed credit against the corporation business tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to 10 percent of the wholesale value of the fruits or vegetables that are donated to the charitable organization during the privilege period of donation.
b. In order to claim the credit allowed pursuant to this section, a commercial farm operator shall obtain a written statement from the charitable organization substantiating each donation of fruits or vegetables made during the privilege period for which the credit is allowed. At the time a donation is made, the commercial farm operator shall provide to the charitable organization the wholesale value of the donated fruits or vegetables and information identifying the location where the fruits or vegetables were grown. The charitable organization, upon receipt of the donated fruits or vegetables, shall issue to the commercial farm operator making the donation a written statement, signed and dated by an individual authorized to accept the donation on behalf of the charitable organization, that contains the variety, grade, and quantity of the donated fruits or vegetables, the name and address of the commercial farm operator making the donation, the name and address of the charitable organization, and, as provided by the commercial farm operator, the wholesale value of and the location where the donated fruits or vegetables were grown. When filing a return that includes a claim for the credit allowed pursuant to this section, the commercial farm operator shall include a copy of each written statement issued to the commercial farm operator by a charitable organization during the privilege period for which the credit is allowed.
c. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed by law shall be as prescribed by the director. The amount of the credit applied under this section against the corporation business tax liability of the taxpayer for a privilege period, together with any other credits allowed by law, shall not exceed 50 percent of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5). The amount of the credit allowable under this section which cannot be used to reduce the taxpayers corporation business tax liability for the privilege period due to the limitations of this section may be carried forward and applied to the earliest available use within the five privilege periods immediately following the privilege period for which the credit is allowed. The wholesale value of any donated fruits or vegetables that are included in the calculation of the credit allowed pursuant to this section shall not be allowed as an amount calculated or claimed pursuant to any other deduction or credit allowed under the corporation business tax.
d. As used in this section:
Charitable organization includes any organization that is incorporated under the provisions of Title 15 or Title 16 of the Revised Statutes or Title 15A of the New Jersey Statutes, any organization that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code, any entity to which a charitable contribution as defined under subsection (c) of section 170 of the Internal Revenue Code is deductible under section 170, and any food bank as defined in section 2 of P.L.1982, c.178 (C.24:4A-2).
Commercial farm means commercial farm as that term is defined by section 3 of P.L.1983, c.31 (C.4:1C-3).
Commercial farm operator means the taxpayer primarily responsible for the on-site, day-to-day operation of a commercial farm, at which farm fruits or vegetables are planted, managed, and harvested for donation.
Wholesale value means:
the value calculated by using a quantity-weighted average wholesale sales price of the donated fruits or vegetables as determined based on the wholesale sales price paid for each wholesale sale of fruits or vegetables made by the commercial farm operator during the calendar month of the commercial farm operators donation that are the same variety and grade as the donated fruits or vegetables and the respective weight, volume, or other standard unit of measure of each wholesale sale; or
if no wholesale sales of fruits or vegetables that are the same variety and grade as the donated fruits and vegetables are made by the commercial farm operator during the calendar month of the commercial farm operators donation, the wholesale value shall be equal to the overall average price paid for fruits or vegetables that are the same variety and grade as the donated fruits or vegetables at the nearest terminal market located the fewest miles from the commercial farm operators commercial farm during the calendar month of the commercial farm operators donation as determined using the Fruit and Vegetable Market News Custom Average Tool maintained by the United States Department of Agricultures Agricultural Marketing Service, or another similar source of average price data as may be prescribed by the director.
2. a. For taxable years beginning on or after January 1 2024 but before January 1, 2029, a commercial farm operator that makes a donation of fruits or vegetables fit for human consumption to a charitable organization located in this State shall be allowed credit against the tax otherwise due under the New Jersey Gross Income Tax Act, N.J.S.54A:1-1 et seq., in an amount equal to 10 percent of the wholesale value of the fruits or vegetables that are donated to the charitable organization during the taxable year of donation.
b. In order to claim the credit allowed pursuant to this section, a commercial farm operator shall obtain a written statement from the charitable organization substantiating each donation of fruits or vegetables made during the taxable year for which the credit is allowed. At the time a donation is made, the commercial farm operator shall provide to the charitable organization the wholesale value of the donated fruits or vegetables and information identifying the location where the fruits or vegetables were grown. The charitable organization, upon receipt of the donated fruits or vegetables, shall issue to the commercial farm operator making the donation a written statement