This bill proposes to offer tax credits against the corporation business tax and the gross income tax for commercial farm operators who donate fruits and vegetables fit for human consumption to charitable organizations in New Jersey. The credits, amounting to 10 percent of the wholesale value of the donated produce, will be available for donations made during tax periods starting from January 1, 2024, to January 1, 2029. To claim these credits, farm operators must obtain a written statement from the charitable organization detailing the donation, including the variety, grade, quantity, and wholesale value of the produce. Additionally, any unused credits can be carried forward for use in the following five tax periods.

The bill also mandates the Director of the Division of Taxation to prepare an annual report on the utilization of these tax credits, which 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. Furthermore, the Office of the Food Security Advocate will maintain a list of approved charitable organizations eligible for these donations. This initiative aims to encourage food donations from commercial farms while providing tax relief to operators, thereby supporting both agricultural and charitable efforts in the state.