Fillable Form 317 - Sheltered Workshop Tax Credit (Page 3 of 3) in pdf

Instructions for Form 317

Form 317-A

(7-08, R-2)

SHELTERED WORKSHOP TAX CREDIT

PURPOSE OF THIS FORM - This schedule must be completed by any taxpayer claiming a Sheltered Workshop Tax Credit and/or credit

carry forward as provided for in P.L. 2005, c.318. In general, a tax credit is allowed in an amount equal to 20% of the salary and wages

paid by the taxpayer during the privilege period for the employment of a qualified person but cannot exceed $1,000 for each qualified

person for the privilege period. If the taxpayer claims this credit on Form CBT-100, CBT-100S or BFC-1, a completed Form 317 must

be attached to the return to validate the claim.

NOTE: Only complete the applicable lines from Parts II, III and IV where the full amount of the sheltered workshop tax credit claimed

on the current return is the result of a sheltered workshop tax credit carried forward from a previous tax year.

DEFINITIONS:

Qualified Person - means an extended employee, within the meaning of that term as set forth in section 2 of P.L.1971, c.272

(C.34:16-40), to whom the Commissioner of Labor, under subsection (b) of section 18 of P.L.1966, c.113(C.34:11-56a17) shall have

issued a special license authorizing employment at wages less than the minimum wage rate, and who, for at least 26 weeks during

the privilege period, shall have performed at least 25 hours per week of work at or under the supervision of a sheltered workshop

pursuant to a contract between the taxpayer and the sheltered workshop.

Sheltered Workshop - means an occupation-oriented facility operated by a nonprofit agency with which the Division of Vocational

Rehabilitation Services in the Department of Labor shall have entered into a contract under section 4 of P.L.1971, c.272 (C.34:16-

42) to furnish extended employment programs to eligible individuals.

PART I - QUALIFICATIONS

The answer to both questions must be “YES”. If the answer to either question is “NO”, the taxpayer is not entitled to the sheltered

workshop tax credit.

PART II - CALCULATION OF THE AVAILABLE SHELTERED WORKSHOP TAX CREDIT

Enter the information in Columns A through D for each qualified person for which a tax credit is claimed. Enter in Column D the lesser

of 20% of the amount in Column C or $1,000. Attach a schedule if additional entries must be made.

PART III - CALCULATION OF THE ALLOWABLE CREDIT AMOUNT

a) The allowable sheltered workshop tax credit for the current tax period is calculated in PART III. The amount of this credit in

addition to the amount of any other tax credits taken is limited to 50% of the taxpayer’s total tax liability and cannot exceed an

amount which would reduce the total tax liability below the statutory minimum.

b) The minimum tax is assessed based on the New Jersey Gross Receipts as follows:

New Jersey Gross Receipts

Minimum Tax

Less than $100,000

$500

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

$750

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

$1,000

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

$1,500

$1,000,000 or more

$2,000

provided however that for a taxpayer that is a member of an affiliated or controlled group which has a total payroll of $5,000,000

or more for the return period, the minimum tax shall be $2,000. Tax periods of less than 12 months are subject to the higher

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

c) The priorities set forth in this Corporation Business Tax form follow Regulation N.J.A.C. 18:7-3.17.

PART IV - SHELTERED WORKSHOP TAX CREDIT CARRYOVER

The amount of the tax credit that cannot be applied to the current tax period due to the applicable limitations can be carried over to the

seven privilege periods following the privilege period for which the credit was allowed. Complete Part IV to validate the tax credit

carryover amount.

Form 317 - Sheltered Workshop Tax Credit Page 3

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