Committee Statement to Assembly, No. 3613 — Assembly Commerce and Economic Development Committee

Summary

Statement to Assembly, No. 3613, with committee amendments, from the Assembly Commerce and Economic Development Committee of the State of New Jersey, dated March 9, 2026, reporting Assembly Bill No. 3613 favorably. The bill, designated the "Saving Our Diners and Preserving Our Past (SODA POP) Act," requires a historic diner and restaurant registry for establishments in continuous operation for at least 25 years. It provides a sales tax exemption for prepared foods and beverages sold there, and a tax credit equal to 10 percent of eligible ingredient costs, up to $25,000 per year. The statement lists seven committee amendments, including the change to the bill's title.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT
                COMMITTEE

                           STATEMENT TO

                      ASSEMBLY, No. 3613
                          with committee amendments



       STATE OF NEW JERSEY
                            DATED: MARCH 9, 2026

          The Assembly Commerce and Economic Development Committee
      reports favorably and with committee amendments Assembly Bill No.
      3613.
          As amended and reported, this bill, designated as the “Saving Our
      Diners and Preserving Our Past (SODA POP) Act,” provides certain
      tax benefits to historic diners and historic restaurants throughout the
      State.
          Specifically, the bill requires the Division of Travel and Tourism
      in the Department of State (division) to establish a historic diner and
      restaurant registry to certify the historic diners and historic restaurants
      that have been in continuous operation in the State for at least 25
      years. Any historic diner or historic restaurant included on the registry
      is entitled to: (1) a sales tax exemption for the sales of prepared foods
      and beverages at the historic diner or historic restaurant; and (2) a
      corporation business tax or gross income tax credit for a portion of the
      costs incurred for the purchase of eligible ingredients used in the
      preparation of foods and beverages at the historic diner or historic
      restaurant.

      Historic Diner and Restaurant Registry
          Under the bill, the Director of the division (director) is required to
      solicit applications from the operators of historic diners and historic
      restaurants in the State for inclusion on a historic diner and restaurant
      registry, which the director is to update annually. Operators of these
      establishments are required to include, in an application for initial
      inclusion or annual renewal on the historic diner and restaurant
      registry, any information and documentation deemed necessary by the
      director to determine whether the diner or restaurant qualifies as a
      historic diner or historic restaurant.
          Upon approval by the director, the bill provides that a historic
      diner or historic restaurant is to be included in the historic diner and
      restaurant registry on the official Internet website of the division. The
      historic diner and restaurant registry is required to include the location
      and history of each historic diner and historic restaurant and any other
                                    2

information the director deems necessary to increase awareness of
historic diners and restaurants in the State.
    Upon approval, the director is required to notify the Director of the
Division of Taxation in the Department of the Treasury that a historic
diner or historic restaurant has been added to the historic diner and
restaurant registry and is eligible for sales tax exemption and tax credit
under the bill. The Director of the Division of Taxation is required to
issue the sales tax exemption certificate and tax credit certificate to the
operator of the historic diner or historic restaurant upon this notice.
    As defined in the bill, a “historic diner” means a diner that: (1) has
been in continuous operation for at least 25 years, including any period
of time in which the establishment was required to suspend dine-in
services as a result of a public health emergency; (2) qualifies as a
small business concern within the meaning of federal law; and (3) is in
compliance with all applicable health, safety, and zoning requirements.
The bill defines "diner" as a food establishment that: (1) serves food
and beverages to customers primarily for on-site consumption at a
booth, table, or counter setting; and (2) engages primarily in the
preparation and serving of a wide variety of menu offerings, including,
but not limited to, hamburgers, salads, sandwiches, soups, breakfast
items, entrees, pastries, pies, and beverages. "Diner" only includes
food establishments that are commonly known and regarded as diners,
and does not include any café, delicatessen, tavern, bar, sandwich
shop, or other food establishment.
    The bill also defines a “historic restaurant” to mean a restaurant
that: (1) has been in continuous operation for at least 25 years,
including any period of time in which the establishment was required
to suspend dine-in services as a result of a public health emergency;
(2) qualifies as a small business concern within the meaning of federal
law; (3) is in compliance with all applicable health, safety, and zoning
requirements; and (4) is a family-owned business entity, as defined in
the bill.

Sales Tax Exemption for Retail Sales at Historic Diners and
Restaurants
    Under current law, the sales of prepared foods and beverages by
most food establishments within the State, including diners and
restaurants, are subject to the sales and use tax. This bill exempts the
sales of prepared foods and beverages made at historic diners and
historic restaurants from the sales and use tax, regardless of whether
the food or beverage is sold for consumption on or off premises.
Specifically, this exemption applies during the 12-month period
following the receipt of a sales tax exemption certificate by the
operator of the historic diner or historic restaurant, which certificate is
to be issued upon the determination that the diner or restaurant has
been approved for inclusion on the historic diner and restaurant
registry.
                                    3

Corporation Business Tax and Gross Income Tax Credits for Eligible
Ingredients
    Under the bill, the operator of a historic diner or historic restaurant
that has been included on the historic diner and restaurant registry may
claim a corporation business tax or gross income tax credit, as
applicable, for a portion of the costs incurred for eligible ingredients
used in the preparation of foods and beverages.
    The amount of the tax credit is equal to 10 percent of the costs
incurred by the taxpayer during the taxable period for the purchase of
eligible ingredients used in the preparation of foods or beverages at the
historic diner or historic restaurant, up to $25,000 per year. The bill
defines “eligible ingredients” to mean substances used in the
preparation of menu items at a historic diner or historic restaurant,
whether in liquid, concentrated, solid, frozen, dried, or dehydrated
form, that are sold for ingestion or chewing by humans and are
consumed for their taste or nutritional value, not including alcoholic
beverages or tobacco.
    Under the bill, the operator of a historic diner or historic restaurant
is required to submit the following when filing a tax return on which
the operator is claiming the tax credit: (1) such business records as
may be required by the Director of the Division of Taxation
documenting the costs incurred by the taxpayer during the tax period
for the purchase of any eligible ingredients used in the preparation of
foods or beverages at the historic diner or historic restaurant; and (2) a
copy of the tax credit certificate issued to the historic diner or historic
restaurant.
    This bill was prefiled for introduction in the 2026-2027 session
pending technical review. As amended and reported, the bill includes
the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:
    The committee amended the bill to:
    (1) change the bill's title to the “Saving Our Diners and Preserving
Our Past (SODA POP) Act,” rather than the “Saving Our Diners and
Protecting Our Past Act”;
    (2) clarify that the bill requires the director to solicit applications
for initial inclusion and annual renewal on the historic diner and
restaurant registry and to update the registry annually;
    (3) require the director, upon approval of an application, to notify
the Director of the Division of Taxation in the Department of the
Treasury that a historic diner or historic restaurant has been added to
the historic diner and restaurant registry and is eligible for a sales tax
exemption and tax credit under the bill;
    (4) provide that the Director of the Division of Taxation is required
to issue the sales tax exemption certificate and tax credit certificate, as
provided in the bill;
    (5) allow the sales tax exemption for the sales of prepared foods
and beverages at the historic diner or historic restaurant to apply to all
                                  4

sales of prepared foods and beverages instead of only sales for on
premises consumption;
    (6) include standard language concerning how tax credits are to be
claimed by a taxpayer with respect to a share of partnership or S
corporation income; and
    (7) make technical changes.


File and source

File

2026-03-09_ACE_A3613_S1.pdf

Size

159,799 bytes

SHA-256

0e7cfafee9cbb9874dc4e563666e8adcc120827dedb9fcaea6fd69a760b80be8

Our copy

2026-03-09_ACE_A3613_S1.pdf

Original

No public link identified.