Budget & Taxes (Income Tax · Agriculture)

This bill establishes a regional farm wage in New Jersey by averaging agricultural wage data from Pennsylvania, New York, and Delaware. Farm employers who pay workers at least this regional wage qualify for tax credits against their business and gross income taxes, calculated based on the amount paid above the current state farm wage but not below the regional rate. The credits can be carried forward for up to four years if not fully used in the current tax period. This policy directly affects New Jersey farm employers who hire workers on a piece-rate or hourly basis for farm labor.

This bill provides tax credits to New Jersey commercial farm operators who experience price losses on their products. It allows eligible farms to claim credits against corporation business tax or gross income tax based on a certification of price loss from the State Agriculture Secretary. Credits are limited to 50% of tax liability and can be carried forward for up to seven years if unused. The bill also permits taxpayers to transfer unused credits to other businesses, subject to specific rules.

This New Jersey bill (S 1612) provides a 10% tax credit against corporation business tax and gross income tax for farmers who purchase qualified farming equipment. It directly affects New Jersey farmers engaged in eligible operations - such as growing crops, raising livestock, or aquaculture - by allowing them to reduce their tax liability by up to 10% of equipment costs. To claim the credit, farmers must obtain certification from the New Jersey Department of Agriculture confirming their operation qualifies and equipment was acquired, with strict deadlines for processing. The credit cannot exceed 25% of a farmer’s tax liability for the year and may be carried forward if unused.

S 739, the "New Jersey Loves New Jersey Farmers Act," provides tax credits to New Jersey commercial farm operators who grow crops for human consumption (like fruits and vegetables) but not livestock feed. It allows these farms to claim credits against corporation business tax or gross income tax equal to certified "price loss" (revenue loss from falling crop prices), verified by the State Agriculture Secretary. The credits are limited to 50% of tax liability per year and can be carried forward for up to seven years if not fully used. This directly benefits farm businesses experiencing price declines, offering financial relief tied to verified market losses.

This bill allows New Jersey farm operators to accelerate tax deductions for eligible business investments, matching current federal tax rules. Specifically, it enables farms to use federal Section 168 (bonus depreciation) and Section 179 (immediate expensing of capital costs) for state corporation business and gross income tax calculations. The policy directly affects farms primarily producing agricultural or horticultural commodities for sale, letting them deduct equipment and property costs faster than current state law permits. New Jersey had previously decoupled from these federal provisions, but this bill aligns state tax treatment with current federal standards.