(NEW JERSEY) — A New Jersey state Senate committee advanced S4954 on Tuesday, moving forward a bill that would create new tax breaks for historic diners and restaurants under the “Saving Our Diners and Protecting Our Past” (SODA Pop) Act.
State Sen. Paul Moriarty, a Gloucester County Democrat, sponsored the measure, which lawmakers introduced in January 2026. The bill aims to steer tax incentives to long-running diners and restaurants as operators face higher costs and staffing strains.
Lawmakers sent S4954 next to the Senate Budget and Appropriations Committee. No further 2026 floor votes or enactment are recorded.
S4954 would set up an annual registry of “historic diners” and “historic restaurants” and tie any tax benefit to a certification process. The bill places that system under the Division of Travel and Tourism in the Department of State.
Eligibility turns on how the bill defines a qualifying business and how the state documents that status. Under the proposal, a “historic diner” must have operated at least 25 years, and the registry would serve as the state’s reference point for which businesses meet the definition.
The Director of the Division of Travel and Tourism would play a central role because the sales-tax relief depends on a certificate issued by that office. Certification matters for tax administration because it sets a clear trigger for when an establishment qualifies and when the benefit period starts.
Supporters frame the proposal as an effort to preserve an institution closely associated with New Jersey, which the bill describes as the “diner capital of the U.S.” The legislation points to economic pressures that owners say have intensified since the pandemic, including rising costs and staffing shortages.
Moriarty pointed to the pace of closures as part of the impetus for action. “Diners, and specifically historic diners, are a cornerstone of our great state. We have a duty to help them thrive,” Moriarty said, adding that he noted the heartbreak of closures.
The bill cites several recent examples of diners shutting their doors or changing hands. Cherry Hill Diner closed in 2023 after 55 years, and Gateway Diner also closed in 2023.
Other examples listed include Red Lion Diner, which was sold for Wawa, and Star View Diner, which closed in January 2024. The list also includes Collingswood Diner, which closed in August 2025.
At the center of the proposal is a sales and use tax exemption aimed at purchases made at certified establishments. S4954 would exempt prepared foods and beverages sold for on-premises consumption at qualifying diners and restaurants.
That exemption is time-limited and tied to the certification date. Under the bill, it would take effect for 12 months after the Director of the Division of Travel and Tourism issues a certificate to the qualifying establishment.
S4954 also would create a separate tax credit tied to ingredient costs, offering relief to businesses that can document what the bill defines as eligible inputs. The credit would apply against the corporation business tax or the gross income tax.
The credit equals 10% of the costs of eligible ingredients, with a cap of $25,000 per taxpayer per taxable year. The bill defines eligible ingredients as non-alcoholic, human-consumable substances, including solids, liquids, or dehydrated forms used in menu items.
Because the credit is capped, the dollar value of the benefit would depend on a business’s ingredient spending and its ability to document qualifying purchases. Operators weighing investments in staffing, menu prices, and inventory would have to plan around the bill’s limits and the time-bound nature of the sales-tax relief.
The proposed structure also implies recordkeeping demands for any business that seeks to claim a benefit. The exemption depends on certification and on-sales that fit the bill’s description, while the credit depends on tracking costs for ingredients that meet the bill’s definition.
Any practical impact would hinge on whether a business meets the historic threshold and secures inclusion in the annual registry, then obtains certification that triggers the exemption window. The legislation links the relief directly to those gatekeeping steps, rather than offering an across-the-board cut.
S4954 is not the only vehicle for the proposal in Trenton. A companion measure, A6283, mirrors the provisions in the Senate bill.
The Senate committee’s action leaves the proposal at the budget and appropriations stage, where lawmakers typically weigh costs and implementation as they consider tax policy changes. For diners and restaurants that qualify, the bill lays out a short-term sales-tax break and a limited credit meant to offset ingredient costs as New Jersey’s diner operators confront a run of closures.
S4954 Advances as State Sen. Paul Moriarty Pushes SODA Pop Act
New Jersey lawmakers are moving forward with S4954, a bill designed to provide financial relief to historic diners and restaurants. By establishing a formal registry and certification process, the state intends to offer limited-time sales tax exemptions and credits for ingredient costs. This legislative effort seeks to stabilize small businesses that are currently facing significant staffing shortages and rising inflation.
