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Bill

S 2200

Creates pilot program to provide corporation business tax and gross income tax credits for value of certain fruit and vegetable donations made by commercial farm operators.*

2024-2025 Regular Session Introduced by Nilsa Cruz-Perez and 5 co-sponsors

New Jersey creates tax credits for farm operators donating fresh produce to charities, incentivizing food donations while reducing farm tax liability.

Received in the Assembly, Referred to Assembly Appropriations Committee
#agriculture #bustaxes #corporations #incometax
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WeVote Research Nonpartisan
Bill Summary · S 2200

Legislative bill overview

S 2200 establishes a pilot tax credit program in New Jersey that allows commercial farm operators to claim business tax and gross income tax credits based on the fair market value of fresh fruits and vegetables they donate to food banks, food pantries, and similar charitable organizations. The program incentivizes agricultural donation of produce that might otherwise go to waste by reducing the tax burden on participating farms.

Why is this important

Food insecurity remains a significant issue in New Jersey, and this bill attempts to address it by leveraging existing agricultural capacity while providing farms with a financial incentive. The mechanism creates a win-win scenario: farms reduce tax liability, charitable organizations receive nutritious donations, and vulnerable populations gain access to fresh produce. The pilot structure allows the state to evaluate effectiveness before potentially expanding the program.

Potential points of contention

  • Cost to state revenue: Tax credits reduce state income, requiring either budget reallocation or revenue offsets; the bill's fiscal impact statement would clarify sustainability concerns
  • Program definition and fraud prevention: Rules defining "fair market value," eligible produce, and qualifying organizations need clarity to prevent gaming or inflated valuations
  • Equity concerns: Benefits may disproportionately accrue to larger commercial operations with sophisticated tax accounting, potentially excluding small or minority-owned farms that lack resources to navigate the program

Compiled from official sources — confirm details with the bill’s official record.

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