This bill establishes a pilot program that offers tax credits against the corporation business tax (CBT) and the gross income tax for commercial farm operators who donate fruits and vegetables fit for human consumption to charitable organizations in New Jersey. The tax credit is set at 50 percent of the wholesale value of the donated produce, with a maximum limit of $5,000 per tax period. To claim the credit, farm operators must obtain a written statement from the charitable organization detailing the donation, including the variety, grade, quantity, and wholesale value of the fruits or vegetables. The Secretary of Agriculture is tasked with determining and publishing the wholesale value of the produce and preparing a standardized form for donation acknowledgment.

Additionally, the bill mandates the Secretary of Agriculture, in collaboration with the Director of the Division of Taxation, to compile an annual report on the utilization of these tax credits, starting the year after the credits are first claimed. This report will include data on the number of taxpayers claiming credits, the total value of credits, and the wholesale value of donated produce, among other details. The bill also stipulates that the total tax credits awarded cannot exceed $100,000 in any fiscal year. The program is designed to encourage food donations while providing financial incentives to commercial farm operators.