New Jersey Assembly Bill A2979

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

Establishes loan program and provides corporation business tax and gross income tax credits for establishment of new vineyards and wineries.

Impact

If passed, A2979 would amend existing New Jersey statutes to include provisions for loans and tax credits specifically structured to support the vineyard and winery sector. Taxpayers would be entitled to a tax credit of 25% against their corporation business tax or gross income tax for qualified capital expenses incurred in establishing a new winery or making capital improvements to an existing one within designated counties. These actions are expected to spur growth in agricultural production, particularly in regions traditionally less explored for viticulture.

Summary

Bill A2979 establishes a loan program aimed at facilitating the establishment of new vineyards and wineries in New Jersey through low-interest loans and tax credits. The bill stipulates that the New Jersey Economic Development Authority, in collaboration with the Department of Agriculture, will implement a 10-year pilot program. Under this program, farmers can receive loans covering up to 100% of qualified costs associated with the development of vineyards in counties classified as fifth class that have at least three wineries. This initiative is intended to enhance the state's agricultural landscape and boost local economies through vineyard expansion.

Contention

Debate around A2979 may center on the effectiveness and accessibility of the proposed loans and credits. While proponents believe that the incentives will stimulate agricultural investment and economic development, critics might argue about the allocation of state resources and the environmental implications of increased vineyard development. Furthermore, transparency regarding the effectiveness of such tax incentives will be crucial, as the bill requires the authority to submit annual reports on the outcomes of the loan program and the growth in vineyard acreage, which could spark discussions about accountability and fiscal responsibility.