New Jersey S640 allows farmers to claim a tax credit based on averaged farm income over four years.
New Jersey S640 permits a credit against the New Jersey gross income tax for farmers, calculated using income averaging over four years. This credit helps farmers manage tax liabilities by averaging out yearly gains and losses or varying levels of gains. The credit is equal to the difference between the tax liability without and with income averaging, up to a maximum of $5,000 annually. The bill defines "farming income" and "agricultural commodity" and requires the Director of the Division of Taxation to implement necessary rules and regulations.
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