Permits farm income averaging credit under the New Jersey gross income tax.

This bill allows New Jersey farmers to calculate their state income tax using an average of their farming income over four years (including the current year and the previous three "base years"). Farmers who qualify can claim a tax credit equal to the difference between their tax liability calculated without averaging and with averaging, capped at $5,000 annually. It directly affects farmers operating a "farming business" as defined by the bill - activities like growing crops, raising livestock, or producing agricultural commodities for sale. The credit helps smooth out tax payments during years with lower farm income, providing more stable tax liability.