The "Saving Our Diners and Protecting Our Past Act" is designed to support historic diners and restaurants in New Jersey by offering them a sales and use tax exemption, as well as corporation business and gross income tax credits. The bill defines a "historic diner" as one that has been in continuous operation for at least 25 years, qualifies as a small business, and adheres to health and safety regulations. The Division of Travel and Tourism will maintain an annual registry of these establishments, which operators can apply to join. Once approved, they will receive a sales tax exemption certificate and a tax credit certificate.

The legislation also amends existing tax law to exempt sales of prepared food and beverages for on-site consumption at registered historic diners and restaurants from sales tax for a 12-month period following the issuance of the exemption certificate. Furthermore, it introduces a tax credit for operators, allowing them to claim 10% of eligible ingredient costs used in food and beverage preparation, with a maximum credit of $25,000 per taxpayer per privilege period. The bill includes provisions for transferring tax credits, enabling taxpayers to sell or assign their credits to others, and is set to take effect immediately for privilege periods and taxable years beginning on or after January 1 of the year following its enactment.

Statutes affected:
Introduced: 54:32B-3