This bill aims to promote the development and construction of anaerobic digestion facilities that process food waste in New Jersey by providing a tax credit against the corporation business tax. The tax credit will be available for six privilege periods starting from January 1 following the bill's effective date, allowing taxpayers to claim a credit equal to the lesser of 50% of the costs incurred or $250,000 for developing and constructing such facilities. To qualify, taxpayers must apply for certification from the Commissioner of Environmental Protection, demonstrating that the facility was constructed prior to the application and that it will be used to process food waste. The total amount of tax credits awarded under this bill is capped at $15 million.

Additionally, the bill outlines definitions for key terms such as "anaerobic digester," "anaerobic digestion facility," and "food waste," while also mandating the Department of Environmental Protection to adopt necessary regulations for implementation. A report summarizing the effectiveness of the tax credit in incentivizing facility development must be submitted to the Governor, State Treasurer, and Legislature within six years of the bill's enactment. This initiative is part of a broader effort to reduce food waste, limit landfill contributions, and mitigate the environmental impacts associated with food waste decomposition, which contributes significantly to greenhouse gas emissions.