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S2215 SEG Statement 6/8/26
SENATE ECONOMIC GROWTH COMMITTEE
STATEMENT TO
SENATE, No.
2215
STATE
OF NEW JERSEY
DATED:
�JUNE 8,
2026
����� The Senate Economic Growth Committee reports favorably
Senate Bill No. 2215.
����� As reported, this bill creates a pilot program that
provides a tax credit against the corporation business tax and the gross income
tax based on the value of certain donated fruits and vegetables.��������
����� Specifically, the tax credit is available to
commercial farm operators who donate fruits or vegetables that are fit for
human consumption to a charitable organization located in this State during the
first three tax periods beginning on or after January 1 of the year next
following the date of the bill�s enactment.� The amount of the credit is equal
to 50 percent of the wholesale value of the fruits or vegetables donated, but
not to exceed the value of $5,000 during each tax period. �If a commercial farm
operator is unable to claim any portion of the credit otherwise permitted for a
tax period, the unused credits can be carried forward for the earliest
available use during the next five tax periods following the period for which
the credits were allowed.
����� Under the bill, a commercial farm operator is required
to obtain a written statement from the charitable organization before claiming
the credit.� In addition to certain other information, this statement is to
specify the variety, grade, and quantity of the donated fruits and vegetables,
and the wholesale value of the fruits and vegetables, as provided by the
commercial farm operator.� The bill requires the Secretary of Agriculture (secretary)
to establish and publish the wholesale value of fruits and vegetables for the
purpose of calculating the tax credit allowed under the bill.� The secretary is
also required to prepare a written statement form for use by individuals
authorized to accept donations on behalf of the charitable organization.� Upon
approval of the written statement, the Department of Agriculture is required to
notify the Director of the Division of Taxation as to the eligibility of the
commercial farm operator for a tax credit in the amount approved by the Department
of Agriculture.
����� The bill also requires the secretary, in consultation
with the Director of the Division of Taxation in the Department of the
Treasury, to prepare an annual report on the utilization of the credits
provided on or before December 1 beginning in the year next following the first
year in which the utilization of tax credits is permitted pursuant to the
bill.� In addition to certain requirements for each annual report required by
the bill, the secretary is required to provide recommendations in the final
report as to whether: (1) the allowance of tax credits pursuant to the bill�s
provisions should be continued; and (2) the percentage of the wholesale value
of the fruits or vegetables donated to a charitable organization used to
determine amounts of tax credits should be increased, and if so, to what
percentage.
����� The total value of tax credit amounts awarded under
the bill�s provisions may not exceed $100,000 in any fiscal year.
����� This bill was pre-filed for introduction in the
2026-2027 session pending technical review.� As reported, the bill includes the
changes required by technical review, which has been performed.