The "Saving Our Diners and Protecting Our Past Act" is designed to provide financial relief to historic diners and restaurants in New Jersey by offering a sales and use tax exemption, as well as corporation business and gross income tax credits. The bill defines "historic diner" and "historic restaurant" as establishments that have been in continuous operation for at least 25 years, comply with health and safety regulations, and qualify as small business concerns. An annual registry will be maintained by the Director of the Division of Travel and Tourism, which will include the location and history of these establishments. Operators can apply for inclusion on this registry, and upon approval, they will receive a sales tax exemption certificate and a tax credit certificate.

The bill 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. Additionally, it introduces a tax credit for operators, allowing them to claim 10% of eligible ingredient costs used in food and beverage preparation, capped at $25,000 per tax period. Taxpayers must provide documentation of these costs and a tax credit certificate when filing their tax returns. The bill includes provisions for the transfer of tax credits, enabling taxpayers to sell or assign their credits to others, and is set to take effect immediately, with benefits applicable to tax periods beginning after January 1 of the year following its enactment.

Statutes affected:
Introduced: 54:32B-3