The Grown Here, Eaten Here Act aims to support local food establishments in New Jersey by providing tax credits against the Corporation Business Tax and the New Jersey Gross Income Tax. Specifically, qualifying food establishments, which include restaurants, food manufacturing establishments, and certain breweries, can receive a credit equal to 10 percent of the costs incurred for purchasing eligible ingredients—defined as fruits, vegetables, crops, or other ingredients grown or manufactured in New Jersey. The bill stipulates that the total credits applied cannot exceed 50 percent of the tax liability due, and any unused credits can be carried forward for up to 20 subsequent tax years.

Additionally, the bill outlines that business entities classified as partnerships or New Jersey S Corporations will not receive tax credits directly but will have their credits allocated based on their distributive shares of income. The Director of the Division of Taxation, in collaboration with the Secretary of Agriculture, is tasked with adopting necessary rules and regulations to implement the provisions of the act. The act is set to take effect immediately and will apply to taxable years and privilege periods beginning on or after January 1 following its enactment.