Requires certain businesses to submit excess food reduction plan to DEP; provides CBT credit to eligible businesses that reduce excess food by 25 percent.

S4021

SENATE, No. 4021

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 19, 2026

Sponsored by:

Senator� JOSEPH F. VITALE

District 19 (Middlesex)

SYNOPSIS

���� Requires certain businesses to submit excess food
reduction plan to DEP; provides CBT credit to eligible businesses that reduce
excess food by 25 percent.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning excess food at businesses and
supplementing Title 13 of the Revised Statues and P.L.1945, c.162 (C.54:10A-1
et seq.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.� a.� As used in this
section:

���� �Business� means an entity that
includes, but is not limited to, a sole proprietorship, partnership, firm,
enterprise, association, company, corporation, or joint venture that employs at
least 50 full-time employees.� �Business� shall not include a public
institution of higher education that is required to submit a food waste
reduction plan pursuant to any other State law, rule, or regulation that is
substantially similar to the excess food reduction plan required to be
submitted pursuant to subsection b. of this section.

���� �Department� means the
Department of Environmental Protection.

���� �Excess food� means the amount
of food that remains after a business orders or caters food.

���� �Public institution of higher
education� means the same as the term is defined in section 1 of P.L.2023,
c.115 (C.18A:3B-53.1).

���� b.� Within one year of the
effective date of P.L.��� , c.��� (C.�������� ) (pending before the Legislature
as this bill), a business within the State that, at any time, caters or orders
food, for employees or clients, or in order to host events, shall submit an
excess food reduction plan to the department for approval and pay the
associated fee to the department pursuant to subsection e. of this section.�
The excess food reduction plan shall include, at a minimum, procedures that the
business will utilize to:

���� (1) �reduce the amount of
excess food generated as a result of catering or ordering food for employees or
clients, or to host events;

���� (2) �limit the ordering or
catering of food to amounts that are necessary and not excessive;

���� (3) �improve methods of
providing food to employees or clients, or during events by reducing the
provision of self-service food so that excess food may be reused or donated;

���� (4) �minimize the disposal of
excess food to landfills or incinerators; and

���� (5) �increase the use of
alternate methods for the final disposition of excess food generated, including
composting and food donation.

���� c.� No later than 90 days
after receipt of an excess food reduction plan, the department shall make a
determination to approve the plan as submitted, approve the plan with
conditions, or disapprove the plan and shall provide written notification to
the business that submitted an excess food reduction plan of the
determination.� If the excess food reduction plan is disapproved, the department
shall inform the business that submitted the excess food reduction plan of the
reasons for the disapproval.� The business shall have 30 days thereafter to
submit a revised excess food reduction plan to the department.� After receiving
approval from the department, the business shall proceed with the
implementation of the excess food reduction plan.

���� d.�
No later than two years after the department�s approval of an excess food
reduction plan pursuant to subsection c. of this section, and biannually
thereafter, the business shall prepare and submit to the Governor and, pursuant
to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature a report
that, at a minimum, summarizes the effectiveness of implementing the excess
food reduction plan in reducing excess food at the business.

���� e.�
The department shall impose a fee, in an amount and manner determined by the
department, which shall be collected at the time an excess food reduction plan
is submitted pursuant to subsection c. of this section.� The amount of the
application fee shall cover the administrative costs of the department in
reviewing and approving excess food reduction plans submitted pursuant to
subsection c. of this section.

���� 2.�
a.� As used in this section:

���� �Authorized
food waste recycling facility� means the same as the term is defined in section
1 of P.L.2020, c.24 (C.13:1E-99.122).

���� �Business� means an entity that
includes, but is not limited to, a sole proprietorship, partnership, firm,
enterprise, association, company, corporation, or joint venture that employs at
least 50 full-time employees.

���� �Commissioner� means the
Commissioner of Environmental Protection.

���� �Department� means the
Department of Environmental Protection.

���� �Director� means Director of
the Division of Taxation in the Department of the Treasury.

���� �Excess food� means the amount
of food that remains after a business orders or caters food.

���� b.� (1)� For privilege periods
beginning on or after the January 1 next following the effective date of
P.L.��� , c.��� (C.�������� ) (pending before the Legislature as this bill),
and for the next five taxable years thereafter, a taxpayer that owns or operates
a business in this State and that demonstrates a 25 percent reduction in excess
food pursuant to paragraph (2) of this subsection shall be allowed a credit
against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5),
to be calculated as provided in paragraph (3) of this subsection, to compensate
the taxpayer for certain costs incurred in the alternate disposition of excess
food through composting, recycling, or food donation and to reimburse the
taxpayer for the application fee submitted to the department pursuant to
subsection f. of this section and for the fee submitted to the department at
the time of submitting an excess food reduction plan pursuant to subsection e.
of section 1 of P.L.��� , c.��� (C.�������� ) (pending before the Legislature
as this bill), if applicable.

���� (2) The 25 percent reduction
in excess food shall be demonstrated by the business composting, recycling at
an authorized food waste recycling facility, or donating excess food rather
than disposing of the excess food at a landfill or incinerator.

���� (3) The amount of the credit
authorized pursuant to this section shall not exceed the lesser of:

���� (a) the total costs associated
with the alternate disposition of excess food through composting, recycling, or
food donation rather than disposal in a landfill or incinerator; or

���� (b) $2,500.

���� c.� To qualify for the tax
credit allowed pursuant to this section, a taxpayer shall apply to the
commissioner for a certification that provides that the taxpayer�s business�
reduction in excess food is eligible for the tax credit and pay the associated
application fee to the department pursuant to subsection f. of this section.�
The application to the commissioner shall demonstrate that the taxpayer�s
business reduced excess food by 25 percent through the alternate disposition of
excess food using composting, recycling, or food donation rather than disposal
in a landfill or incinerator prior to applying for the tax credit provided in
this section and that the taxpayer has not received any other credit against
the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a
reduction in food waste or excess food.� The application shall include a
receipt demonstrating the amount of the excess food reduction, any costs
associated with the alternate disposition of excess food through composting,
recycling, or food donation rather than disposal in a landfill or incinerator,
and any other information determined relevant by the department.� The
commissioner shall transmit a copy of any certification issued pursuant to this
subsection to the taxpayer and the director.

���� d.� The director shall
prescribe the order of priority of the application of the tax credit allowed
pursuant to this section, and any other credits allowed against the tax imposed
pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period.�
The amount of the credit applied pursuant to this section against the tax
imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) shall not reduce
a taxpayer's tax liability to an amount less than the statutory minimum
provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).� The
amount of the tax credit otherwise allowable under this section which cannot be
applied for the privilege period due to the limitations of this subsection or
under other provisions of P.L.1945, c.162 (C.54:10A-1 et seq.) may be carried
forward, if necessary, to the seven privilege periods following the privilege
period for which the tax credit was allowed.

���� e.� The commissioner, in
consultation with the director, shall adopt, pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.),
rules and regulations as are necessary to implement the provisions of this
section.�

���� f.�
The department shall impose an application fee, in an amount and manner
determined by the department, which shall be collected at the time a taxpayer
applies to the commissioner for a
certification that provides that the
taxpayer�s business� reduction in excess food is eligible for the tax credit
pursuant to subsection c. of this section.
�
The amount of the application fee shall cover the administrative costs of the
department in reviewing applications submitted to the commissioner pursuant to
subsection c. of this section.

���� g.� No later than one year
after the expiration date of the tax credits provided pursuant to this section,
the commissioner shall prepare and submit to the Governor, the State Treasurer,
and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature,
a report that, at a minimum, summarizes the effectiveness of the tax credit in
reducing excess food at businesses throughout the State and in incentivizing
the alternate disposition of excess food through composting, recycling, or food
donation rather than disposal in a landfill or incinerator.

���� 3.� This act shall take effect
immediately.

STATEMENT

���� This bill would require
certain businesses to submit an excess food reduction plan to the Department of
Environmental Protection (DEP) and would provide a tax credit under the
corporation business tax to eligible businesses that reduce excess food by 25
percent.

���� Specifically, this bill would
require, within one year of the bill�s effective date, a business within the State
that caters or orders food for employees or clients, or to host events, to
submit an excess food reduction plan to the DEP for approval.� The excess food
reduction plan would be required to include, at a minimum, procedures that the
business will utilize to:

���� (1) �reduce the amount of
excess food generated as a result of catering or ordering food for employees or
clients, or to host events;

���� (2) �limit the ordering or
catering of food to amounts that are necessary and not excessive;

���� (3) �improve methods of
providing food to employees, to clients, or during events by reducing the
provision of self-service food so that excess food may be reused or donated;

���� (4) �minimize the disposal of
excess food to landfills or incinerators; and

���� (5) �increase the use of
alternate methods for the disposition of excess food generated, including
composting and food donation.

���� No later than 90 days after
receipt of an excess food reduction plan, the DEP would be required to make a
determination to approve the plan as submitted, approve the plan with
conditions, or disapprove the plan.� If an excess food reduction plan is
disapproved, the business would be required to resubmit a revised excess food
reduction plan to the DEP.� After receiving approval from the DEP, the business
would be required to proceed with the implementation of the excess food
reduction plan.� Under the bill, certain public institutions of higher
education would not be required to submit an excess food reduction plan to the
DEP if the public institution of higher education is already required to submit
a food waste reduction plan that is substantially similar to the excess food reduction
plan established by the bill.

���� The bill would also allow a
taxpayer that owns or operates a business in this State and that demonstrates a
25 percent reduction in excess food by composting, recycling, or donating
excess food rather than disposing of the excess food at a landfill or
incinerator to receive a corporation business tax credit to compensate the
taxpayer for certain costs incurred in the alternate disposal of excess food.�
The amount of the tax credit would not exceed the lesser of: (1) the total
costs associated with the alternate disposition of excess food through
composting, recycling at an authorized food waste recycling facility, or food
donation rather than disposal in a landfill or incinerator; or (2) $2,500.

���� To qualify for a tax credit
under the bill, a taxpayer would be required apply to the Commissioner of
Environmental Protection (commissioner) for a certification that provides that
the taxpayer�s business� reduction in excess food is eligible for the tax
credit.� The application to the commissioner is required to demonstrate that
the taxpayer�s business reduced excess food by 25 percent through the alternate
disposition of excess food using composting, recycling, or food donation rather
than disposal in a landfill or incinerator prior to applying for the tax credit
and that the taxpayer has not received any other corporation business tax
credit for a reduction in food waste or excess food.

���� The bill would require, no
later than one year after the expiration date of the tax credits provided
pursuant to the bill, the commissioner to prepare and submit to the Governor,
the State Treasurer, and the Legislature, a report that, at a minimum, summarizes
the effectiveness of the tax credit in reducing excess food at businesses
throughout the State and in incentivizing the alternate disposition of excess food
through composting, recycling, or food donation rather than disposal in a
landfill or incinerator.

���� Finally, the bill would also
authorize the department to impose a fee at the time an excess food reduction
plan is submitted to the department and an application fee at the time a
taxpayer applies to the commissioner for a certification that provides that the
taxpayer�s business� reduction in excess food is eligible for the tax credit
provided pursuant to the bill.� The amount of the fee and application fee are
required to cover the administrative costs of the department in reviewing the
excess food reduction plans and tax credit applications.� Under the bill, the
amount of the tax credit awarded to a taxpayer may also be utilized to
reimburse a taxpayer for fees submitted to the department.