"Grown Here, Eaten Here Act"; provides CBT and GIT tax credits to qualifying food establishments for costs of purchasing certain local ingredients.
Impact
The legislation is expected to encourage local sourcing of food ingredients, which could have significant implications for the state's economy and environmental sustainability. By incentivizing food establishments to purchase locally, the bill aims to stimulate local agricultural markets, enhancing the viability of New Jersey farms. Moreover, with tax credits not exceeding 50 percent of the tax liability and the option to carry forward unused credits for up to 20 years, the financial implications for establishments opting into this program can be substantial. This may contribute to job creation within the food service and agricultural sectors as local businesses collaborate more closely.
Summary
Senate Bill S3683, known as the 'Grown Here, Eaten Here Act', introduces tax credits under the Corporation Business Tax (CBT) and New Jersey Gross Income Tax (GIT) for certain food establishments. The bill allows qualifying establishments, which include restaurants and food manufacturing entities, to receive a credit equal to 10 percent of the costs incurred when purchasing eligible ingredients—fruits, vegetables, and crops grown or manufactured within New Jersey. This initiative aims to promote the use of local agricultural products in the food industry, thereby supporting local farmers and reducing the carbon footprint associated with long-distance food transportation.
Contention
One notable point of contention surrounding S3683 is the distribution of tax benefits. Critics may argue that while tax credits seem beneficial, they could inadvertently favor larger food establishments with the resources to capitalize on such incentives, potentially sidelining smaller businesses with fewer operational margins. Additionally, there is a consideration regarding the definitions of what constitutes a 'qualifying food establishment' and 'eligible ingredients,' which may lead to disputes over eligibility and financial fairness among diverse food producers. Thus, stakeholders concerned about equity in local business opportunities might advocate for clear regulations to ensure that the benefits reach a broad range of establishments.
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Establishes a manufacturing reinvestment account program to incentivize capital investment and workforce training in New Jersey with income tax rate reductions, deferrals, and accelerated deductions.
Establishes a manufacturing reinvestment account program to incentivize capital investment and workforce training in New Jersey with income tax rate reductions, deferrals, and accelerated deductions.
Establishes a manufacturing reinvestment account program to incentivize capital investment and workforce training in New Jersey with income tax rate reductions, deferrals, and accelerated deductions.