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 total amount of 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.

The bill also stipulates that the Director of the Division of Taxation, in consultation with the Secretary of Agriculture, will establish necessary rules and regulations to implement the tax credit program. This initiative is designed to encourage the use of locally sourced ingredients in food preparation, thereby promoting local agriculture and enhancing the economic viability of food establishments in the state. 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.