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 percent of the costs incurred, with a maximum limit of $250,000. To qualify for the credit, taxpayers must apply to the Commissioner of Environmental Protection for certification, demonstrating that the facility was developed and constructed prior to the application and that it will be used specifically for processing food waste. 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 also mandating the Department of Environmental Protection to adopt necessary rules and regulations for implementation. A report summarizing the effectiveness of the tax credit in incentivizing the development of these facilities must be submitted to the Governor, State Treasurer, and Legislature within six years of the bill's effective date. This initiative is part of a broader effort to reduce food waste, limit landfill contributions, and mitigate the environmental impacts associated with food waste decomposition, which generates methane, a potent greenhouse gas.