Form 304 - New Jobs Investment Tax Credit - 2011 (Page 4 of 4) in pdf

If any amount of the aggregate annual credit remains after the

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

above limitations are applied, that amount may be refunded to the

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

taxpayer. The amount of the refund cannot exceed 50% of the

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

sum of the property taxes paid in the tax year and the implicit

6(f) by 50.

property taxes paid through rent or lease payments which are

Line 9 - Report the maximum annual credit calculated for qualified

attributable to and the direct result of the taxpayer’s qualified

investments made in prior tax years. The appropriate amount can

investment. If the taxpayer is unable to ascertain these amounts,

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

the attributable property tax amounts shall be determined by

tax year.

multiplying the total New Jersey property taxes paid by a fraction,

the numerator of which is the compensation paid to New Jersey

PART III

employees whose positions are directly attributable to the qualified

Calculation of the Allowable Credit Amount

investment. The denominator is all New Jersey compensation

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

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

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

these amounts.

cannot exceed 50% of that portion of the corporation Business

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

Tax 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

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

to all the qualified investments comprising the Aggregate

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

Annual Credit on Line 10, Part II.

the 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.

New Jersey Gross Receipts

Minimum Tax

The taxpayer must maintain sufficient records for each item of

Less than $100,000

$500

qualified property to establish:

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

$750

1) its identity;

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

$1,000

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

$1,500

2) its actual or reasonably determined cost;

$1,000,000 or more

$2,000

3) its straight-line depreciation life;

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

affiliated or controlled group which has a total payroll of

5) the amount of credit taken; and

$5,000,000 or more for the return period, the minimum tax shall

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

be $2,000. Tax periods of less than 12 months are subject to

property.

the higher minimum tax if the prorated total payroll exceeds

$416,667 per month.

SPECIFIC INSTRUCTIONS FOR FORM 304

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

PART I

applying the limitations indicated in (a) above, the excess may

be refunded to the taxpayer. The amount of the refund is

Qualifications

calculated in this section.

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

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

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

qualify for the tax credit.

paid and the amount of implicit property taxes paid through rent

or lease payments that were attributable to and the direct result

PART II

of the taxpayer’s qualified investment. If the taxpayer is unable

to ascertain these amounts, they shall be determined by

Calculation of the New Jobs Investment Tax Credit

multiplying the total amount of New Jersey property taxes paid

Line 4 - Classify property purchased by its depreciable life for

and the total amount of implicit New Jersey property taxes paid

federal tax purposes.

by the fraction that was determined on line 13 of Part III.

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

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

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

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

during the tax year. To determine this number, the taxpayer should

rank the new employees by annual compensation. If the middle

PART IV

employee’s annual compensation is less than the required median

Certification

compensation of $40,800 for tax years beginning in 2010, then the

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

lowest ranking jobs should be deleted from the list until the middle

year credit period for a qualified investment. If the taxpayer is

employee’s annual compensation is at least the required median

unable to make the certifications, amended returns must be filed

compensation amount. If there are an even number on the list, the

reflecting the correct new jobs factors and qualified investments for

top half must be greater than the required median compensation

all affected tax years.

amount. The final number of new employees on this list is the

number of eligible new jobs to be reported on line 6(e), Part II.

Form 304-A (1-12, R-18)

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Form 304 - New Jobs Investment Tax Credit - 2011 Page 4

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