Provides CBT credit for development of anaerobic digestion facilities that process food waste.
Impact
The implementation of S1137 is expected to significantly impact state laws related to waste management and environmental protection. By promoting anaerobic digestion, the bill addresses the critical issue of food waste, which reportedly accounts for a substantial percentage of overall waste in the U.S. and contributes considerably to greenhouse gas emissions. In addition to offering a solution for waste diversion, it anticipates an enhancement in local energy production through the generation of biogas, allowing for a more sustainable approach to both waste management and energy consumption.
Summary
S1137 is a legislative proposal that aims to provide a tax credit under the corporation business tax (CBT) for the development of anaerobic digestion facilities that process food waste in New Jersey. This initiative is designed to incentivize the construction of facilities capable of converting organic food waste into biogas, which can subsequently be utilized for energy production, thereby contributing to a reduction in the amount of waste sent to landfills. The bill specifies that the tax credit will be effective for a period of six years and will assist taxpayers with the costs associated with building these facilities.
Conclusion
Overall, S1137 aims to create a legal and financial framework that encourages the establishment of anaerobic digestion facilities for food waste. While it holds the promise of alleviating environmental burdens associated with food waste, its success will rely heavily on effective execution, stakeholder collaboration, and careful monitoring of its impact on both waste reduction and energy production.
Contention
Despite the potential benefits presented by S1137, there are points of contention regarding its effectiveness and feasibility. Critics may raise concerns about the defined limits of the tax credit, which will not exceed 50% of the development costs or $250,000, and the total cap of $15 million on available credits. Some stakeholders might argue that these figures are insufficient to incentivize the robust development of such facilities. Additionally, the bill specifies that the Department of Environmental Protection must produce a report assessing the effectiveness of the tax credit within six years of its enactment, which leaves room for ongoing assessment and potential adjustments based on the outcomes observed.
Requires certain businesses to submit excess food reduction plan to DEP; provides CBT credit to eligible businesses that reduce excess food by 25 percent.
Provides CBT and gross income tax credits for certain deliveries of low carbon concrete and for costs of conducting environmental product declaration analyses of low carbon concrete.
Provides credit under corporation business tax and gross income tax for construction of buildings in accordance with certain energy and environmental performance standards.
Provides credit under corporation business tax and gross income tax for construction of buildings in accordance with certain energy and environmental performance standards.
Provides CBT and gross income tax credits for certain deliveries of low carbon concrete and for costs of conducting environmental product declaration analyses of low carbon concrete.