NJ S1652

Creates one-time tax credits against New Jersey corporation business tax and gross income tax for organic farmers who had to switch certification providers after the Department of Agriculture stopped certifying organic operations effective May 30, 2022.

Credit amount equals the difference between fees paid to an outside accredited certifying agent and fees that would have been paid to the Department of Agriculture for the period May 30, 2022 through December 31, 2022.

Eligible taxpayers must have been certified by the Department of Agriculture on January 11, 2022, subsequently obtained certification from an outside accredited certifying agent, and paid higher fees to the new certifier than they would have paid to the state.

Farmers must apply to the Department of Agriculture for certification of their fee amounts before claiming the credit on their tax returns, and the department may charge a reasonable fee for processing applications.

Applies only to privilege periods and taxable years beginning on or after January 1, 2022 but before January 1, 2023.