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Committee releases three-year pilot tax credit for donated produce, members debate $100,000 cap
Summary
The committee released Assembly Bill 3899, a three-year pilot giving commercial farm operators a tax credit equal to 50% of the wholesale value of donated fruits and vegetables (capped at $5,000 per operator per tax period) and limited to $100,000 total per fiscal year; members noted the program’s funding cap is small and could be revisited.
The Commerce and Economic Development committee voted to amend and release Assembly Bill 3899, which would create a pilot program allowing commercial farm operators who donate edible fruits or vegetables to in-state charitable organizations to claim a tax credit equal to 50% of the wholesale value of the donated produce, up to $5,000 per operator during each tax period.
Under the committee’s amendments the credit would be available for the first three tax periods beginning on or after Jan. 1 following enactment; unused credits could be carried forward for up to five subsequent tax periods. The Division of Taxation within the Department of the Treasury would be required to prepare annual reports on credit utilization, filed on or before Dec. 1, and the director must appear before this committee or a designated legislative committee if a report is late. The total value of credits awarded under the pilot is capped at $100,000 in any fiscal year.
Supporters listed on the record — including Janine Kaba of the New Jersey Food Democracy Collaborative, Ashley Kerr of the New Jersey Farm Bureau, Adam Gudjiezewski of Katz Government Affairs/Chamber partners, and Michael Egington of the New Jersey State Chamber of Commerce — did not testify in person. During committee questioning an unidentified member called the $100,000 cap “woefully low,” noting it would limit participation to a relatively small number of farms at the maximum award and urged the committee to consider expanding the cap in the future if demand justifies it. Committee staff and other members responded that the pilot cap reflects current budget constraints and could be revisited and increased at a later date.
The committee moved to amend and release the bill; a roll call recorded affirmative votes from members present and the measure was released from committee.
Next steps will follow normal legislative procedures after the committee release.
