Bill Text: NJ S4021 | 2026-2027 | Regular Session | Introduced
Bill Title: Requires certain businesses to submit excess food reduction plan to DEP; provides CBT credit to eligible businesses that reduce excess food by 25 percent.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-03-19 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S4021 Detail]
Download: New_Jersey-2026-S4021-Introduced.html
Sponsored by:
Senator JOSEPH F. VITALE
District 19 (Middlesex)
SYNOPSIS
Requires certain businesses to submit excess food reduction plan to DEP; provides CBT credit to eligible businesses that reduce excess food by 25 percent.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning excess food at businesses and supplementing Title 13 of the Revised Statues and P.L.1945, c.162 (C.54:10A-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Business" means an entity that includes, but is not limited to, a sole proprietorship, partnership, firm, enterprise, association, company, corporation, or joint venture that employs at least 50 full-time employees. "Business" shall not include a public institution of higher education that is required to submit a food waste reduction plan pursuant to any other State law, rule, or regulation that is substantially similar to the excess food reduction plan required to be submitted pursuant to subsection b. of this section.
"Department" means the Department of Environmental Protection.
"Excess food" means the amount of food that remains after a business orders or caters food.
"Public institution of higher education" means the same as the term is defined in section 1 of P.L.2023, c.115 (C.18A:3B-53.1).
b. Within one year of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), a business within the State that, at any time, caters or orders food, for employees or clients, or in order to host events, shall submit an excess food reduction plan to the department for approval and pay the associated fee to the department pursuant to subsection e. of this section. The excess food reduction plan shall include, at a minimum, procedures that the business will utilize to:
(1) reduce the amount of excess food generated as a result of catering or ordering food for employees or clients, or to host events;
(2) limit the ordering or catering of food to amounts that are necessary and not excessive;
(3) improve methods of providing food to employees or clients, or during events by reducing the provision of self-service food so that excess food may be reused or donated;
(4) minimize the disposal of excess food to landfills or incinerators; and
(5) increase the use of alternate methods for the final disposition of excess food generated, including composting and food donation.
c. No later than 90 days after receipt of an excess food reduction plan, the department shall make a determination to approve the plan as submitted, approve the plan with conditions, or disapprove the plan and shall provide written notification to the business that submitted an excess food reduction plan of the determination. If the excess food reduction plan is disapproved, the department shall inform the business that submitted the excess food reduction plan of the reasons for the disapproval. The business shall have 30 days thereafter to submit a revised excess food reduction plan to the department. After receiving approval from the department, the business shall proceed with the implementation of the excess food reduction plan.
d. No later than two years after the department's approval of an excess food reduction plan pursuant to subsection c. of this section, and biannually thereafter, the business shall prepare and submit to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature a report that, at a minimum, summarizes the effectiveness of implementing the excess food reduction plan in reducing excess food at the business.
e. The department shall impose a fee, in an amount and manner determined by the department, which shall be collected at the time an excess food reduction plan is submitted pursuant to subsection c. of this section. The amount of the application fee shall cover the administrative costs of the department in reviewing and approving excess food reduction plans submitted pursuant to subsection c. of this section.
2. a. As used in this section:
"Authorized food waste recycling facility" means the same as the term is defined in section 1 of P.L.2020, c.24 (C.13:1E-99.122).
"Business" means an entity that includes, but is not limited to, a sole proprietorship, partnership, firm, enterprise, association, company, corporation, or joint venture that employs at least 50 full-time employees.
"Commissioner" means the Commissioner of Environmental Protection.
"Department" means the Department of Environmental Protection.
"Director" means Director of the Division of Taxation in the Department of the Treasury.
"Excess food" means the amount of food that remains after a business orders or caters food.
b. (1) For privilege periods beginning on or after the January 1 next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and for the next five taxable years thereafter, a taxpayer that owns or operates a business in this State and that demonstrates a 25 percent reduction in excess food pursuant to paragraph (2) of this subsection shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), to be calculated as provided in paragraph (3) of this subsection, to compensate the taxpayer for certain costs incurred in the alternate disposition of excess food through composting, recycling, or food donation and to reimburse the taxpayer for the application fee submitted to the department pursuant to subsection f. of this section and for the fee submitted to the department at the time of submitting an excess food reduction plan pursuant to subsection e. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), if applicable.
(2) The 25 percent reduction in excess food shall be demonstrated by the business composting, recycling at an authorized food waste recycling facility, or donating excess food rather than disposing of the excess food at a landfill or incinerator.
(3) The amount of the credit authorized pursuant to this section shall not exceed the lesser of:
(a) the total costs associated with the alternate disposition of excess food through composting, recycling, or food donation rather than disposal in a landfill or incinerator; or
(b) $2,500.
c. To qualify for the tax credit allowed pursuant to this section, a taxpayer shall apply to the commissioner for a certification that provides that the taxpayer's business' reduction in excess food is eligible for the tax credit and pay the associated application fee to the department pursuant to subsection f. of this section. The application to the commissioner shall demonstrate that the taxpayer's business reduced excess food by 25 percent through the alternate disposition of excess food using composting, recycling, or food donation rather than disposal in a landfill or incinerator prior to applying for the tax credit provided in this section and that the taxpayer has not received any other credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a reduction in food waste or excess food. The application shall include a receipt demonstrating the amount of the excess food reduction, any costs associated with the alternate disposition of excess food through composting, recycling, or food donation rather than disposal in a landfill or incinerator, and any other information determined relevant by the department. The commissioner shall transmit a copy of any certification issued pursuant to this subsection to the taxpayer and the director.
d. The director shall prescribe the order of priority of the application of the tax credit allowed pursuant to this section, and any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period. The amount of the credit applied pursuant to this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) shall not reduce a taxpayer's tax liability to an amount less 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 allowed.
e. The commissioner, in consultation with the director, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as are necessary to implement the provisions of this section.
f. The department shall impose an application fee, in an amount and manner determined by the department, which shall be collected at the time a taxpayer applies to the commissioner for a certification that provides that the taxpayer's business' reduction in excess food is eligible for the tax credit pursuant to subsection c. of this section. The amount of the application fee shall cover the administrative costs of the department in reviewing applications submitted to the commissioner pursuant to subsection c. of this section.
g. No later than one year after the expiration date of the tax credits provided pursuant to this section, the commissioner shall prepare and submit to the Governor, the State Treasurer, and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, a report that, at a minimum, summarizes the effectiveness of the tax credit in reducing excess food at businesses throughout the State and in incentivizing the alternate disposition of excess food through composting, recycling, or food donation rather than disposal in a landfill or incinerator.
3. This act shall take effect immediately.
STATEMENT
This bill would require certain businesses to submit an excess food reduction plan to the Department of Environmental Protection (DEP) and would provide a tax credit under the corporation business tax to eligible businesses that reduce excess food by 25 percent.
Specifically, this bill would require, within one year of the bill's effective date, a business within the State that caters or orders food for employees or clients, or to host events, to submit an excess food reduction plan to the DEP for approval. The excess food reduction plan would be required to include, at a minimum, procedures that the business will utilize to:
(1) reduce the amount of excess food generated as a result of catering or ordering food for employees or clients, or to host events;
(2) limit the ordering or catering of food to amounts that are necessary and not excessive;
(3) improve methods of providing food to employees, to clients, or during events by reducing the provision of self-service food so that excess food may be reused or donated;
(4) minimize the disposal of excess food to landfills or incinerators; and
(5) increase the use of alternate methods for the disposition of excess food generated, including composting and food donation.
No later than 90 days after receipt of an excess food reduction plan, the DEP would be required to make a determination to approve the plan as submitted, approve the plan with conditions, or disapprove the plan. If an excess food reduction plan is disapproved, the business would be required to resubmit a revised excess food reduction plan to the DEP. After receiving approval from the DEP, the business would be required to proceed with the implementation of the excess food reduction plan. Under the bill, certain public institutions of higher education would not be required to submit an excess food reduction plan to the DEP if the public institution of higher education is already required to submit a food waste reduction plan that is substantially similar to the excess food reduction plan established by the bill.
The bill would also allow a taxpayer that owns or operates a business in this State and that demonstrates a 25 percent reduction in excess food by composting, recycling, or donating excess food rather than disposing of the excess food at a landfill or incinerator to receive a corporation business tax credit to compensate the taxpayer for certain costs incurred in the alternate disposal of excess food. The amount of the tax credit would not exceed the lesser of: (1) the total costs associated with the alternate disposition of excess food through composting, recycling at an authorized food waste recycling facility, or food donation rather than disposal in a landfill or incinerator; or (2) $2,500.
To qualify for a tax credit under the bill, a taxpayer would be required apply to the Commissioner of Environmental Protection (commissioner) for a certification that provides that the taxpayer's business' reduction in excess food is eligible for the tax credit. The application to the commissioner is required to demonstrate that the taxpayer's business reduced excess food by 25 percent through the alternate disposition of excess food using composting, recycling, or food donation rather than disposal in a landfill or incinerator prior to applying for the tax credit and that the taxpayer has not received any other corporation business tax credit for a reduction in food waste or excess food.
The bill would require, no later than one year after the expiration date of the tax credits provided pursuant to the bill, the commissioner to prepare and submit to the Governor, the State Treasurer, and the Legislature, a report that, at a minimum, summarizes the effectiveness of the tax credit in reducing excess food at businesses throughout the State and in incentivizing the alternate disposition of excess food through composting, recycling, or food donation rather than disposal in a landfill or incinerator.
Finally, the bill would also authorize the department to impose a fee at the time an excess food reduction plan is submitted to the department and an application fee at the time a taxpayer applies to the commissioner for a certification that provides that the taxpayer's business' reduction in excess food is eligible for the tax credit provided pursuant to the bill. The amount of the fee and application fee are required to cover the administrative costs of the department in reviewing the excess food reduction plans and tax credit applications. Under the bill, the amount of the tax credit awarded to a taxpayer may also be utilized to reimburse a taxpayer for fees submitted to the department.
