NJ S1894

Farm operators in New Jersey would be permitted to claim federal accelerated depreciation allowances under IRC Section 168 for capital expenditures related to their farming enterprises for both corporation business tax and gross income tax purposes.

Farm operators could elect to immediately expense qualifying Section 179 property costs rather than capitalizing them, matching current federal tax code provisions.

New Jersey decoupled from federal depreciation rules in the early 2000s and currently applies 2001-2002 federal depreciation standards; this bill would allow farmers to use current federal rules instead.

"Farming enterprise" is defined as a business primarily engaged in producing agricultural or horticultural commodities for sale using land and improvements to land.

The bill takes effect immediately and applies to tax periods beginning on or after the effective date, with the Division of Taxation director authorized to prescribe implementing regulations.