Provides CBT credit for development of anaerobic digestion facilities that process food waste.
Note
The bill requires the Department of Environmental Protection to track the effectiveness of these tax credits, by preparing a report within six years of the bill's enactment. This provision reflects a commitment to evaluating the return on investment for state resources allocated toward environmental initiatives like anaerobic digestion.
Impact
The bill is designed to address the significant issue of food waste, which the United States Department of Agriculture estimates accounts for 30 to 40 percent of all food produced. The anaerobic digestion process is notable for its capacity to convert food waste into biogas, a renewable energy source that can mitigate greenhouse gas emissions from landfills. In this context, the bill not only aims to reduce the volume of food waste in landfills but also contributes to the state's renewable energy goals through biogas production.
Summary
Senate Bill 3185 aims to incentivize the development and construction of anaerobic digestion facilities that process food waste within New Jersey. This is achieved by providing a tax credit against the corporation business tax for costs incurred during the establishment of such facilities. The bill proposes that the tax credit, available for a period of six years, can cover up to 50% of the costs incurred or $250,000, whichever is less. The cumulative total of tax credits awarded under this bill is capped at $15 million.
Contention
While the bill has garnered support for promoting environmental sustainability and renewable energy, there may be contention regarding the state budget implications of providing substantial tax credits. Critics may express concerns over resource allocation, especially in light of other pressing state budgetary needs. The obligation for applicants to demonstrate eligibility and costs through a certification process may also introduce bureaucratic hurdles that could complicate participation for smaller entities.
Requires solid waste management district to develop strategy to reduce food waste; requires DEP to adopt certain rules and regulations regarding composting facilities.
Requires solid waste management districts to develop strategy to reduce food waste; requires DEP to adopt certain rules and regulations regarding composting facilities.
Authorizes certain large food waste generators to send food waste to sanitary landfill facilities for purpose of generating Class I renewable energy or renewable natural gas.