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 offers 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, and taxpayers must provide documentation, including receipts and proof of local sourcing, to claim these credits. The total credits applied cannot exceed 50% of the tax liability and cannot reduce the tax liability below the statutory minimum, with any unused credits being carried forward for up to 20 privilege periods or five taxable years.

Additionally, the bill extends similar tax credits to breweries and wineries for purchasing Jersey Fresh products, also capped at $10,000 per taxpayer per year, requiring documentation from the Department of Agriculture and a signed affidavit for verification. It further provides tax credits for qualifying food establishments for 10% of the costs incurred in purchasing locally grown or manufactured ingredients, such as fruits and vegetables, for food and beverage preparation. The bill aims to promote local agriculture and support New Jersey's food and beverage industry by incentivizing the use of local products.