This bill introduces tax credits for food and drink establishments in New Jersey that purchase local ingredients and products, specifically under the Corporation Business Tax (CBT) and the Gross Income Tax (GIT). It provides a 10% tax credit for costs incurred by restaurants, bars, breweries, and wineries when they buy New Jersey-produced wine, beer, and 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, establishments must submit documentation such as receipts and proof of local production, with the total credits applied not exceeding 50% of the tax liability.

Additionally, the bill outlines the necessary documentation for claiming these credits, including receipts and affidavits confirming the origin of the ingredients. It allows unused credits to be carried forward for up to 20 privilege periods or five taxable years. The legislation aims to bolster local agriculture and encourage the use of New Jersey-produced products in the food and beverage industry, with the act set to take effect immediately for tax periods beginning on or after January 1 of the year following its enactment.