New Jersey commercial farm operators could claim certified food crop price loss credits

New Jersey commercial farm operators would be allowed corporate or personal income tax credits for certified food crop price losses. Operators must be mainly responsible for daily work on a commercial farm in New Jersey. Only crops harvested for people to eat count; crops harvested for livestock do not. The Agriculture Secretary must certify the loss. Corporate credits, together with other credits, could cover no more than half the tax bill and could not lower it below the required minimum. Personal credits could not lower tax owed below zero. The credit could not cover costs or expenses already used for another tax break or business award in the same period. Partnerships and New Jersey S corporations could not claim personal credits directly; their owners would receive shares. The credits would apply to tax periods beginning on or after January 1 of the year after enactment. Unused credits could carry into the next seven applicable tax periods.

New Jersey commercial farm operators could sell certified food crop price loss credits after getting state transfer certificates. This option covers operators mainly responsible for daily work on New Jersey commercial farms who have certified price losses on crops harvested for people to eat. Buyers could use the credits against state corporate or personal income tax. Operators must get the Agriculture Secretary's loss certification and a transfer certificate from the state tax director. They would give up the right to claim any credit amount they sell or transfer. The credits would apply to tax periods beginning on or after January 1 of the year after enactment. Operators could sell certificates during the tax period when they receive them. Buyers could carry unused credits into the next five tax periods.

The Agriculture Secretary would set monthly comparison prices and certify qualifying food crop price losses. These rules cover crops harvested for people to eat from New Jersey commercial farms. Crops harvested for livestock do not count. Operators must provide sales records, tax period dates, and calculations using the monthly prices. A price loss counts only when crop sales bring in less than those sales would have brought in at the comparison prices. The secretary must certify applications that meet the rules and consider market conditions, production costs, and other appropriate factors when setting prices. The secretary would publish each month's price within 90 days after that month ends. No price is required for months before January 1 of the year after enactment.