This bill mandates that certain businesses in New Jersey, specifically those that cater or order food for employees or clients, submit an excess food reduction plan to the Department of Environmental Protection (DEP) within one year of the bill's effective date. The plan must outline strategies to minimize excess food generation, limit food ordering to necessary amounts, enhance food provision methods, reduce disposal of excess food in landfills, and promote alternative disposal methods such as composting and food donation. The DEP is required to review and approve these plans within 90 days, and businesses must implement the approved plans. Notably, public institutions of higher education are exempt from this requirement if they are already subject to a similar food waste reduction plan.

Additionally, the bill introduces a tax credit under the corporation business tax for businesses that demonstrate a 25 percent reduction in excess food through composting, recycling, or donation instead of disposal. The credit can cover costs associated with these alternative disposal methods, with a maximum limit of $2,500. To qualify, businesses must apply for certification from the Commissioner of Environmental Protection, demonstrating their compliance with the reduction criteria. The bill also allows the DEP to impose fees for the submission of excess food reduction plans and tax credit applications, which will cover administrative costs. A report on the effectiveness of the tax credit in reducing excess food will be required one year after the expiration of the tax credits.