Form 304 - New Jobs Investment Tax Credit - 2016 (Page 4 of 4) in pdf

by a fraction, the numerator of which is the compensation paid to New

PART III

Jersey employees whose positions are directly attributable to the

Calculation of the Allowable Credit Amount

qualified investment.

The denominator is all New Jersey

a) The total and allowable New Jobs Investment Tax Credit for the

compensation paid for the tax year. Lines 23 through 27 of Part III

current year is calculated in Part III. The amount of this credit

determine these amounts.

cannot exceed 50% of that portion of the corporation business tax

If any credit for the tax year remains, the amount shall be forfeited.

liability which is attributable to and the direct result of the

There is no carryover provision for this tax credit.

taxpayer’s qualified investment and shall not reduce the tax liability

below the statutory minimum.

8. Certification and Record keeping

b) Line 11 - Include the compensation of employees attributable to all

The taxpayer must certify for every year during the five year period of

the qualified investments comprising the Aggregate Annual Credit

the credit that the number of new jobs created is as reported on the

on Line 10, Part II.

current and prior year tax credit forms, and that the qualified

c) Line 17 - The required minimum tax liability is as follows:

investment property has not been disposed of prior to the end of its

depreciable life.

The taxpayer must maintain sufficient records for each item of

New Jersey Gross Receipts

CBT-100

CBT-100S

qualified property to establish:

Less than $100,000

$500.00

$375.00

$100,000 or more but less than $250,000

$750.00

$562.00

1) its identity;

$250,000 or more but less than $500,000

$1,000.00

$750.00

2) its actual or reasonably determined cost;

$500,000 or more but less than $1,000,000 $1,500.00 $1,125.00

3) its straight-line depreciation life;

$1,000,000 or more

$2,000.00 $1,500.00

4) the month and the tax year in which it was placed in service;

provided however that for a taxpayer that is a member of an

5) the amount of credit taken; and

affiliated or controlled group which has a total payroll of $5,000,000

6) the date it was disposed of or otherwise ceased to be qualified

or more for the return period, the minimum tax shall be $2,000.

property.

Tax periods of less than 12 months are subject to the higher

minimum tax if the prorated total payroll exceeds $416,667 per

SPECIFIC INSTRUCTIONS FOR FORM 304

month.

PART I

d) Lines 23 through 27 - If any unused credit remains after applying

Qualifications

the limitations indicated in (a) above, the excess may be refunded

to the taxpayer. The amount of the refund is calculated in this

The taxpayer must meet the qualifications listed in Part I. If the

section.

answer to any of the questions is “no”, the taxpayer does not qualify

for the tax credit.

e) Lines 24(a) and 24(b) - Report the amount of property taxes paid

and the amount of implicit property taxes paid through rent or lease

PART II

payments that were attributable to and the direct result of the

Calculation of the New Jobs Investment Tax Credit

taxpayer’s qualified investment.

If the taxpayer is unable to

Line 4 - Classify property purchased by its depreciable life for federal

ascertain these amounts, they shall be determined by multiplying

tax purposes.

the total amount of New Jersey property taxes paid and the total

amount of implicit New Jersey property taxes paid by the fraction

Line 6(e) - The number of eligible new jobs must reflect the number

that was determined on line 13 of Part III.

of new employees (see instruction 3) hired by the taxpayer during the

tax year. To determine this number, the taxpayer should rank the new

f) The priorities set forth in this Corporation Business Tax form follow

employees by annual compensation. If the middle employee’s annual

Regulation N.J.A.C. 18:7-3.17.

compensation is less than the required median compensation of

$40,800 for tax years beginning in 2010, then the lowest ranking jobs

PART IV

should be deleted from the list until the middle employee’s annual

Certification

compensation is at least the required median compensation amount.

This section must be completed for each tax year during the five year

If there are an even number on the list, the top half must be greater

credit period for a qualified investment. If the taxpayer is unable to

than the required median compensation amount. The final number of

make the certifications, amended returns must be filed reflecting the

new employees on this list is the number of eligible new jobs to be

correct new jobs factors and qualified investments for all affected tax

reported on line 6(e), Part II.

years.

Line 7(a) - Taxpayers who qualify as “small or mid-sized business

taxpayers” as defined in instruction 5 must divide the amount on line

6(f) by 5. All other taxpayers must divide the amount on line 6(f) by

50.

Line 9 - Report the maximum annual credit calculated for qualified

investments made in prior tax years. The appropriate amount can be

found on line 8 of the Form 304 which was filed for the particular tax

year.

Line 20 - Taxpayers claiming multiple credits must list any credits

already applied to the tax liability to ensure accuracy of the calculation

for maximum credit allowable.

Form 304-A (07-15, R-22)

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Form 304 - New Jobs Investment Tax Credit - 2016 Page 4

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