Trenton – Today the Senate Environment and Energy Committee advanced legislation sponsored by Senator Richard Codey that would provide corporation business tax (CBT) credits to taxpayers who develop and construct anaerobic digestion facilities that process food waste.
Anaerobic digestion facilities convert food waste to biogas and solid digestate, with the former having the capability to power and heat homes and the latter being a useful material if applied as a fertilizer. The bill, S-3185, would specifically provide tax credits up to $250,000 or 50 percent of the costs incurred to construct the facility, whichever amount is less. The total amount of the credits provided to eligible entities would not exceed $15 million.
“In the United States each year, around a third of food is wasted and only a minuscule amount of it is diverted away from landfills and incinerators for composting,” said Senator Codey (D-Essex/Morris). “When food waste builds up and continues to rot, it creates methane gas which is extremely harmful for the environment. Food should never be wasted, however it is an unfortunate reality of our world and at least with this bill in place, we can convert this waste into eco-friendly solutions for our everyday needs.”
Under the bill, the tax credits would be available starting on January 1st following the effective date of the bill and for the next six years thereafter.
The bill was released from committee by a vote of 4-0.