
Bill to improve access to fresh produce advances
NEW JERSEY – To create greater access to healthy foods and reduce food waste, the Senate Budget and Appropriations Committee advanced legislation today sponsored by Senate Majority Leader M. Teresa Ruiz and Senator Nilsa Cruz-Perez that incentivizes farmers to donate fresh produce.
“As grocery costs continue to rise, more families are struggling to put food on the table. By establishing a state incentives program that encourages farmers to donate excess fruits and vegetables to local charitable organizations, we can support food pantries in meeting this growing demand and provide greater access to healthy foods,” said Ruiz (D-Essex/Hudson). “This program will help to ensure that fresh produce doesn’t go to waste while strengthening connections between farmers, food pantries, and the public.”
The bill, S-2200, would establish a pilot program for three years in the Department of Agriculture in consultation with the Department of Treasury that provides a tax credit against the corporate business tax and the gross income tax for the value of fruits and vegetables donated to any charitable organization by commercial farm operators.
According to the Community FoodBank of New Jersey, 75 percent of people they serve often choose inexpensive and unhealthy food options.
“People struggling to make ends meet often choose unhealthy food options due to their convenience and affordability,” said Cruz-Perez (D-Camden/Gloucester). “Because of this, low-income individuals face higher obesity rates and greater risks of chronic health problems. This bill aims to improve the health and wellness of people in need by providing healthy, nutritious food to charitable organizations that would otherwise go to waste.”
The tax credit would equal 50 percent of the wholesale value of the fruits or vegetables.
Farms would be eligible for up to $5,000 per year in tax credits. The pilot program would be capped at $100,000 in annual tax credits.
In order to receive the tax credit, a commercial farm operator would submit to the Department of Agriculture a written statement received from a charitable organization substantiating each donation of fruits or vegetables made. Upon approval of the written statement, the Department of Agriculture shall 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.
The Secretary of Agriculture, in consultation with the Director of the Division of Taxation in the Department of the Treasury, would also be required to prepare an annual report that includes information on the utilization of the credit and the produce donations.
The legislation advanced out of the committee in a 12-0 vote.