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 under 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% of the costs incurred in developing and constructing the facility, with a maximum credit of $250,000. To qualify, taxpayers must apply for certification from the Commissioner of Environmental Protection, demonstrating that the facility is eligible and has been constructed prior to the application. The total amount of tax credits awarded under this bill is capped at $15 million.

Additionally, the bill outlines definitions for key terms such as "anaerobic digester," "anaerobic digestion facility," and "food waste," while excluding certain types of food waste from eligibility. The Department of Environmental Protection, in consultation with the Director of the Division of Taxation, is tasked with adopting necessary regulations to implement the bill. Furthermore, a report summarizing the effectiveness of the tax credit in incentivizing facility development must be submitted to the Governor, State Treasurer, and Legislature within six years of the bill's enactment. Overall, the legislation seeks to reduce food waste, limit landfill contributions, and mitigate environmental impacts associated with food waste disposal.