Bill Text: NJ A3613 | 2026-2027 | Regular Session | Amended

New Jersey Assembly Bill 3613

Bill Title: "Saving Our Diners and Preserving Our Past (SODA POP) Act"; provides sales and use tax exemption and corporation business and gross income tax credits for historic diners and historic restaurants included in online registry.

Sponsorship: Moderate Partisan Bill (Democrat 4-1)

Status: (Introduced) 2026-03-09 - Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee [A3613 Detail]

Download: New_Jersey-2026-A3613-Amended.html

[First Reprint]

ASSEMBLY, No. 3613

STATE OF NEW JERSEY

222nd LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman LOUIS D. GREENWALD

District 6 (Burlington and Camden)

Assemblyman WILLIAM F. MOEN, JR.

District 5 (Camden and Gloucester)

Assemblyman DAN HUTCHISON

District 4 (Atlantic, Camden and Gloucester)

Co-Sponsored by:

Assemblywoman Rowan

SYNOPSIS

"Saving Our Diners and Preserving Our Past (SODA POP) Act"; provides sales and use tax exemption and corporation business and gross income tax credits for historic diners and historic restaurants included in online registry.

CURRENT VERSION OF TEXT

As reported by the Assembly Commerce and Economic Development Committee on March 9, 2026, with amendments.

An Act providing tax incentives for certain historic eating establishments, designated as the "Saving Our Diners and ¹[Protecting] Preserving¹ Our Past ¹(SODA POP)¹ Act," amending P.L.1966, c.30 (C.54:32B-1 et seq.), and supplementing various parts of the statutory law.

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

1. (New section) a. As used in this section:

"Diner" means a food establishment that: serves food and beverages to customers primarily for on-site consumption at a booth, table, or counter setting; ¹and¹ engages primarily in the preparation and serving of a wide variety of menu offerings, including, but not limited to, hamburgers, salads, sandwiches, soups, breakfast items, entrees, pastries, pies, and beverages. "Diner" shall only include food establishments that are commonly known and regarded as diners, and shall not include any caf�, delicatessen, tavern, bar, sandwich shop, or other food establishment.

"Director" means the Director of the Division of Travel and Tourism in the Department of State.

"Division" means the Division of Travel and Tourism in the Department of State.

"Family member" means a sibling, grandparent, grandchild, child, spouse, domestic partner, civil union partner, parent-in-law, or parent of a covered individual, or any other individual related by blood to the employee, and any other individual that the employee shows to have a close association with the employee which is the equivalent of a family relationship.

"Family-owned business entity" means a business entity that has been solely owned and operated by one or more family members for the entire period in which the business has been in operation.

"Historic diner" means a diner that:

(1) has been in continuous operation for at least 25 years, including any period of time in which the establishment was required to suspend dine-in services as a result of a public health emergency;

(2) qualifies as a small business concern within the meaning of the federal "Small Business Act," 15 U.S.C. s.631 et seq.; and

(3) is in compliance with all applicable health, safety, and zoning requirements.

"Historic diner and restaurant registry" means the registry established and maintained by the director pursuant to this section.

"Historic restaurant" means a restaurant that:

(1) has been in continuous operation for at least 25 years, including any period of time in which the establishment was required to suspend dine-in services as a result of a public health emergency;

(2) qualifies as a small business concern within the meaning of the federal "Small Business Act," 15 U.S.C. s.631 et seq.;

(3) is in compliance with all applicable health, safety, and zoning requirements; and

(4) is a family-owned business entity.

"Restaurant" means a food establishment that operates in a fixed location and in which the principal business is the sale of food and beverages to customers for consumption on the premises.

b. The Director of the Division of Travel and Tourism in the Department of State shall establish and maintain ¹[an annual] a¹ historic diner and restaurant registry listing all historic diners and historic restaurants in the State. The historic diner and restaurant registry shall include the location and history of each historic diner and historic restaurant and any other information the director deems necessary to increase awareness of historic diners and restaurants in the State.

c. Within six months after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and ¹[each year] annually¹ thereafter, the director shall solicit applications from the operators of historic diners and historic restaurants in the State for ¹initial¹ inclusion¹, and annual renewal,¹ on the ¹[annual]¹ historic diner and restaurant registry, which applications shall include such information and documentation as the director deems necessary to determine whether the diner or restaurant qualifies as a historic diner or historic restaurant.

d. Within 12 months after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), ¹[and each year thereafter,]¹ the director shall establish ¹[an annual] a¹ historic diner and restaurant registry, ¹which the director shall update annually, and¹ which shall include a listing of all historic diners and historic restaurants for which an application submitted pursuant to this section was approved by the director. Upon establishing the ¹[annual]¹ historic diner and restaurant registry, the director shall publish the registry on the official Internet website of the Division of Travel and Tourism in the Department of State.

e. ¹(1)¹ Upon approval of an application submitted pursuant to this section, the director shall ¹notify the Director of the Division of Taxation in the Department of the Treasury that a historic diner or historic restaurant has been added to the historic diner and restaurant registry and is eligible for a sales tax exemption and tax credit pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).

(2) Upon notice from the Director of the Division of Travel and Tourism pursuant to paragraph (1) of this subsection, the Director of the Division of Taxation shall¹ issue ¹to the operator of the historic diner or historic restaurant¹:

¹[(1)] (a)¹ a sales tax exemption certificate ¹[to the operator of the historic diner or historic restaurant]¹, which certificate shall authorize the exemption of the sale of prepared food and beverages ¹[for on-site consumption]¹ at the historic diner or historic restaurant from the sales and use tax, as provided pursuant to section 3 of P.L.1966, c.30 (C.54:32B-3), for the 12-month period following the date of receipt of the certificate¹[. The director shall also transmit a copy of each sales tax exemption certificate issued pursuant to this paragraph to the Director of the Division of Taxation in the Department of the Treasury]¹; and

¹[(2)] (b)¹ a tax credit certificate ¹[to the operator of the historic diner or historic restaurant]¹, which tax credit certificate may be used for the purposes of sections 3 and 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) for the privilege period or taxable year in which the certificate is issued. ¹[The director shall also transmit a copy of each tax credit certificate issued pursuant to this paragraph to the Director of the Division of Taxation in the Department of the Treasury.]¹

2. Section 3 of P.L.1966, c.30 (C.54:32B-3) is amended to read as follows:

3. There is imposed and there shall be paid a tax of 7% on or before December 31, 2016, 6.875% on and after January 1, 2017 but before January 1, 2018, and 6.625% on and after January 1, 2018 upon:

(a) The receipts from every retail sale of tangible personal property or a specified digital product for permanent use or less than permanent use, and regardless of whether continued payment is required, except as otherwise provided in P.L.1966, c.30 (C.54:32B-1 et seq.).

(b) The receipts from every sale, except for resale, of the following services:

(1) Producing, fabricating, processing, printing, or imprinting tangible personal property or a specified digital product, performed for a person who directly or indirectly furnishes the tangible personal property or specified digital product, not purchased by the person for resale, upon which these services are performed.

(2) Installing tangible personal property or a specified digital product, or maintaining, servicing, repairing tangible personal property or a specified digital product not held for sale in the regular course of business, whether or not the services are performed directly or by means of coin-operated equipment or by any other means, and whether or not any tangible personal property or specified digital product is transferred in conjunction therewith, except (i) such services rendered by an individual who is engaged directly by a private homeowner or lessee in or about ¹[his] that private homeowner's or lessee's¹ residence and who is not in a regular trade or business offering ¹[his] that individual's¹ services to the public, (ii) such services rendered with respect to personal property exempt from taxation hereunder pursuant to section 13 of P.L.1980, c.105 (C.54:32B-8.1), (iii) (Deleted by amendment, P.L.1990, c.40), (iv) any receipts from laundering, dry cleaning, tailoring, weaving, or pressing clothing, and shoe repairing and shoeshining, and (v) services rendered in installing property which, when installed, will constitute an addition or capital improvement to real property, property or land, other than landscaping services and other than installing carpeting and other flooring, and other than sign installation services.

(3) Storing all tangible personal property not held for sale in the regular course of business; the rental of safe deposit boxes or similar space; and the furnishing of space for storage of tangible personal property by a person engaged in the business of furnishing space for such storage.

"Space for storage" means secure areas, such as rooms, units, compartments, or containers, whether accessible from outside or from within a building, that are designated for the use of a customer and wherein the customer has free access within reasonable business hours, or upon reasonable notice to the furnisher of space for storage, to store and retrieve property. Space for storage shall not include the lease or rental of an entire building, such as a warehouse or airplane hangar.

(4) Maintaining, servicing, or repairing real property, other than a residential heating system unit serving not more than three families living independently of each other and doing their cooking on the premises, whether the services are performed in or outside of a building, as distinguished from adding to or improving the real property by a capital improvement, but excluding services rendered by an individual who is not in a regular trade or business offering ¹[his] that individual's¹ services to the public, and excluding garbage removal and sewer services performed on a regular contractual basis for a term not less than 30 days.

(5) Mail processing services for printed advertising material, except for mail processing services in connection with distribution of printed advertising material to out-of-State recipients.

(6) (Deleted by amendment, P.L.1995, c.184)

(7) Utility service provided to persons in this State, any right or power over which is exercised in this State.

(8) Tanning services, including the application of a temporary tan provided by any means.

(9) Massage, bodywork, or somatic services, except such services provided pursuant to a doctor's prescription.

(10) Tattooing, including all permanent body art and permanent cosmetic make-up applications, except such services provided pursuant to a doctor's prescription in conjunction with reconstructive breast surgery.

(11) Investigation and security services.

(12) Information services.

(13) (Deleted by amendment, P.L.2017, c.27)

(14) Telephone answering services.

(15) Radio subscription services.

Wages, salaries, and other compensation paid by an employer to an employee for performing as an employee the services described in this subsection are not receipts subject to the taxes imposed under subsection (b) of this section.

Services otherwise taxable under paragraph (1) or (2) of subsection (b) of this section are not subject to the taxes imposed under this subsection, where the tangible personal property or specified digital product upon which the services were performed is delivered to the purchaser outside this State for use outside this State.

(c) (1) Receipts from the sale of prepared food in or by restaurants, taverns, or other establishments in this State, or by caterers, including in the amount of such receipts any cover, minimum, entertainment, or other charge made to patrons or customers, except for meals especially prepared for and delivered to homebound elderly, age 60 or older, and to persons with disabilities, or meals prepared and served at a group-sitting at a location outside of the home to otherwise homebound elderly persons, age 60 or older, and otherwise homebound persons with disabilities, as all or part of any food service project funded in whole or in part by government or as part of a private, nonprofit food service project available to all such elderly or persons with disabilities residing within an area of service designated by the private nonprofit organization; and

(2) Receipts from sales of food and beverages sold through vending machines, at the wholesale price of such sale, which shall be defined as 70% of the retail vending machine selling price, except sales of milk, which shall not be taxed. Nothing herein contained shall affect other sales through coin-operated vending machines taxable pursuant to subsection (a) ¹[above] of this section¹ or the exemption thereto provided by section 21 of P.L.1980, c.105 (C.54:32B-8.9).

The tax imposed by subsection (c) of this section shall not apply to food or drink which is sold to an airline for consumption while in flight. The tax imposed by subsection (c) of this section shall not apply to the sales of prepared food and beverages ¹[for on-site consumption]¹ at a historic diner or historic restaurant occurring during the 12-month period following the date of receipt of the sales tax exemption certificate issued to the operator of the historic diner or historic restaurant pursuant to subsection e. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(3) For the purposes of this subsection:

"Food and beverages sold through vending machines" means food and beverages dispensed from a machine or other mechanical device that accepts payment; and

"Prepared food" means:

(i) A. food sold in a heated state or heated by the seller; or

B. two or more food ingredients mixed or combined by the seller for sale as a single item, but not including food that is only cut, repackaged, or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the Food and Drug Administration in Chapter 3, part 401.11 of its Food Code so as to prevent food borne illnesses; or

C. food sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or straws. A plate does not include a container or packaging used to transport the food;

provided however, that

(ii) "prepared food" does not include the following sold without eating utensils:

A. food sold by a seller whose proper primary NAICS classification is manufacturing in ¹[section] subsector¹ 311, except ¹[subsector] industry group¹ 3118 (bakeries);

B. food sold in an unheated state by weight or volume as a single item; or

C. bakery items, including bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas.

"Historic diner" means a diner that is included on the historic diner and restaurant registry established pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

"Historic restaurant" means a restaurant that is included on the historic diner and restaurant registry established pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(d) The rent for every occupancy of a room or rooms in a hotel or transient accommodation in this State, except that the tax shall not be imposed upon a permanent resident.

(e) (1) Any admission charge to or for the use of any place of amusement in the State, including charges for admission to race tracks, baseball, football, basketball ¹[or] ,¹ exhibitions, dramatic or musical arts performances, motion picture theaters, except charges for admission to boxing, wrestling, kick boxing, or combative sports exhibitions, events, performances, or contests which charges are taxed under any other law of this State or under section 20 of P.L.1985, c.83 (C.5:2A-20), and, except charges to a patron for admission to, or use of, facilities for sporting activities in which the patron is to be a participant, such as bowling alleys and swimming pools. For any person having the permanent use or possession of a box or seat or lease or a license, other than a season ticket, for the use of a box or seat at a place of amusement, the tax shall be upon the amount for which a similar box or seat is sold for each performance or exhibition at which the box or seat is used or reserved by the holder, licensee, or lessee, and shall be paid by the holder, licensee, or lessee.

(2) The amount paid as charge of a roof garden, cabaret, or other similar place in this State, to the extent that a tax upon these charges has not been paid pursuant to subsection (c) hereof.

(f) (1) The receipts from every sale, except for resale, of intrastate, interstate, or international telecommunications services and ancillary services sourced to this State in accordance with section 29 of P.L.2005, c.126 (C.54:32B-3.4).

(2) (Deleted by amendment, P.L.2008, c.123)

(g) (Deleted by amendment, P.L.2008, c.123)

(h) Charges in the nature of initiation fees, membership fees or dues for access to or use of the property or facilities of a health and fitness, athletic, sporting, or shopping club or organization in this State, except for: (1) membership in a club or organization whose members are predominantly age 18 or under; and (2) charges in the nature of membership fees or dues for access to or use of the property or facilities of a health and fitness, athletic, sporting, or shopping club or organization that is exempt from taxation pursuant to paragraph (1) of subsection (a) of section 9 of P.L.1966, c.30 (C.54:32B-9), or that is exempt from taxation pursuant to paragraph (1) or (2) of subsection (b) of section 9 of P.L.1966, c.30 (C.54:32B-9) and that has complied with subsection (d) of section 9 of P.L.1966, c.30 (C.54:32B-9).

(i) The receipts from parking, storing, or garaging a motor vehicle, excluding charges for the following: residential parking; employee parking, when provided by an employer or at a facility owned or operated by the employer; municipal parking, storing, or garaging; receipts from charges or fees imposed pursuant to section 3 of P.L.1993, c.159 (C.5:12-173.3) or pursuant to an agreement between the Casino Reinvestment Development Authority and a casino operator in effect on the date of enactment of P.L.2007, c.105; and receipts from parking, storing, or garaging a motor vehicle subject to tax pursuant to any other law or ordinance.

For the purposes of this subsection, "municipal parking, storing, or garaging" means any motor vehicle parking, storing, or garaging provided by a municipality or county, or a parking authority thereof.

(cf: P.L.2022, c.97, s.2)

3. (New section) a. For privilege periods beginning on or after January 1 of the year next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), a taxpayer that operates a historic diner or historic restaurant shall be allowed a credit against the tax due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) in an amount equal to 10 percent of the costs incurred by the taxpayer during the privilege period for the purchase of any eligible ingredients used in the preparation of foods or beverages at the historic diner or historic restaurant. The value of the credit allowed pursuant to this section shall not exceed $25,000 per taxpayer per privilege period.

b. The order of priority of the application of the credit allowed pursuant to this section, and any other credits allowed by law against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) ¹for a privilege period¹, shall be as prescribed by the director. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, together with any other credits allowed by law, shall not reduce the tax liability to an amount lower 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 issued, after which the tax credit shall expire.

c. When filing a return that includes a claim for a tax credit allowed pursuant to this section, a taxpayer shall include:

(1) such business records as may be required by the director documenting the costs incurred by the taxpayer during the privilege period for the purchase of any eligible ingredients used in the preparation of foods or beverages at the historic diner or historic restaurant; and

(2) a copy of the tax credit certificate issued ¹[by the Director of the Division of Travel and Tourism in the Department of State]¹ pursuant to subsection e. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

d. (1) A taxpayer may apply to the director for a tax credit transfer certificate in lieu of the taxpayer being allowed any amount of tax credit against the tax liability of the taxpayer, as authorized under this section. The tax credit transfer certificate, upon receipt thereof by the taxpayer from the director, may be sold or assigned, in full or in part, in the privilege period during which the taxpayer receives the tax credit transfer certificate from the director, to another person, who may apply the credit against a tax liability under the tax pursuant to the "Corporation Business Tax Act (1945)," P.L.1945, c.162 (C.54:10A-1 et seq.) or the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. The certificate provided to the taxpayer shall include a statement waiving the taxpayer's right to claim the amount of the credit that the taxpayer has elected to sell or assign against the tax for a tax liability. The tax credit certificate issued to a taxpayer by the director shall be subject to any terms and conditions that the director may prescribe; provided, however, that the holder of a tax credit certificate may transfer all or part of the tax credit amount, on or after the date of issuance of the tax credit transfer certificate, for use by the transferee in the tax period for which it was issued, in the tax period in which it was issued, or in any of the next three successive tax periods.

(2) The tax credit certificate holder or transferee may first use the credit against tax liabilities in the tax period in which it was issued or a succeeding tax period, as authorized in this section, without the need to amend the tax return for the tax period for which the credit was issued, subject to the provisions of this subsection. A transferee may carry forward an unused credit for use in any of the next five successive tax periods, and the unused credit shall expire thereafter.

e. As used in this section:

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

"Eligible ingredients" means substances used in the preparation of menu items at a historic diner or historic restaurant, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. "Eligible ingredients" does not include alcoholic beverages or tobacco.

"Historic diner" means a diner that is included on the historic diner and restaurant registry established pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

4. (New section) a. For taxable years beginning on or after January 1 of the year next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), a taxpayer that operates a historic diner or historic restaurant shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.A.54A:1-1 et seq., in an amount equal to 10 percent of the costs incurred by the taxpayer during the taxable year for the purchase of any eligible ingredients used in the preparation of foods or beverages at the historic diner or historic restaurant. The value of the credit allowed pursuant to this section shall not exceed $25,000 per taxpayer per taxable year.

b. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxable year shall be as prescribed by the director. The amount of the credit applied under this section against the New Jersey gross income tax imposed pursuant to N.J.S.54A:1-1 et seq. for a taxable year, when taken together with any other payments, credits, deductions, and adjustments allowed by law, shall not reduce a taxpayer's tax liability to an amount less than zero. The amount of the tax credit otherwise allowable under this section which cannot be applied for the taxable year due to the limitations of this subsection, or any other provisions of N.J.S.54A:1-1 et seq., may be carried forward, if necessary, to the seven taxable years following the taxable year for which the tax credit was issued, after which the tax credit shall expire.

c. When filing a return that includes a claim for a tax credit allowed pursuant to this section, a taxpayer shall include:

(1) such business records as may be required by the director documenting the costs incurred by the taxpayer during the taxable year for the purchase of any eligible ingredients used in the preparation of foods or beverages at the historic diner or historic restaurant; and

d. ¹(1) A business entity that is classified as a partnership for federal income tax purposes shall not be allowed the credit directly under N.J.S.54A:1-1 et seq., but the amount of credit of the taxpayer in respect of a distributive share of partnership income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year.

(2) A taxpayer that is a New Jersey S corporation shall not be allowed the credit directly under N.J.S.54A:1-1 et seq., but the amount of credit of a taxpayer in respect of a pro rata share of S corporation income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the New Jersey S corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro rata share of S corporation income of the New Jersey S corporation for its privilege period ending within or with the taxpayer's taxable year.

e.¹ (1) A taxpayer may apply to the director for a tax credit transfer certificate in lieu of the taxpayer being allowed any amount of tax credit against the tax liability of the taxpayer, as authorized under this section. The tax credit transfer certificate, upon receipt thereof by the taxpayer from the director, may be sold or assigned, in full or in part, in the taxable year during which the taxpayer receives the tax credit transfer certificate from the director, to another person, who may apply the credit against a tax liability under the tax pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., or the "Corporation Business Tax Act (1945)," P.L.1945, c.162 (C.54:10A-1 et seq.). The certificate provided to the taxpayer shall include a statement waiving the taxpayer's right to claim the amount of the credit that the taxpayer has elected to sell or assign against the tax for a tax liability. The tax credit certificate issued to a taxpayer by the director shall be subject to any terms and conditions that the director may prescribe; provided, however, that the holder of a tax credit certificate may transfer all or part of the tax credit amount, on or after the date of issuance of the tax credit transfer certificate, for use by the transferee in the tax period for which it was issued, in the tax period in which it was issued, or in any of the next three successive tax periods.

¹[e.] f.¹ As used in this section:

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

"Historic diner" means a diner that is included on the historic diner and restaurant registry established pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

5. This act shall take effect immediately, and sections 3 and 4 shall apply to privilege periods and taxable years beginning on or after January 1 of the year next following the date of enactment.