This bill establishes tax credits under the Corporation Business Tax (CBT) and the Gross Income Tax (GIT) for food and drink establishments in New Jersey that purchase local ingredients and products. It provides a 10% tax credit for costs incurred by restaurants, bars, breweries, and wineries when they buy New Jersey-produced wine or beer, as well as eligible ingredients grown or manufactured in the state. The maximum credit is capped at $10,000 per taxpayer per privilege period or taxable year. To claim these credits, taxpayers must submit documentation, including receipts and proof of local production.

Additionally, the bill extends these tax credits to qualifying food establishments for 10% of the costs associated with purchasing locally grown or manufactured ingredients, such as fruits and vegetables. A qualifying food establishment is defined as a restaurant, food manufacturing establishment, or a limited or restricted brewery licensed under state law. The bill clarifies that eligible ingredients must be grown or manufactured within New Jersey and specifies that total credits cannot exceed 50% of the tax liability, nor can they reduce the liability below the statutory minimum. Unused credits can be carried forward for up to 20 privilege periods or five taxable years, and the act is set to take effect immediately for periods beginning on or after January 1 of the year following its enactment.