Form 314 - Remediation Tax Credit - 2011 (Page 3 of 4) in pdf

Instructions for Form 314

Form 314-A

(6-11, R-6)

REMEDIATION TAX CREDIT

The purpose of the Remediation Tax Credit is to provide a credit against the corporation business tax for certain remediation costs, and

supplementing P.L. 1945, c.162 (C.54:10A-1 et seq.). The taxpayer shall be allowed a credit in an amount equal to 100% of the eligible

cost of the remediation of a contaminated site as certified by the Department of Environmental Protection pursuant to section 2 of P.L.

2003, c.296 and the Director of the Division of Taxation in the Department of Treasury pursuant to section 3 of P.L. 2003, c.296. The

remediation costs must have been performed during the privilege periods beginning on or after January 1, 2004 and before January 1,

2007. In no event shall the amount of the tax credit when taken together with the property tax exemption received pursuant to the

"Environmental Opportunity Zone Act," P.L.1995, c.413 (C.54:4-3.151), less any in lieu of tax payments made pursuant to that act, or

any other State, local, or federal tax incentive or grant to remediate a site, exceed 100% of the total cost of the remediation. The credit

allowable under this section shall not exceed 50% of the tax liability otherwise due and shall not reduce the tax liability to an amount

less than the statutory minimum. If the taxpayer claims this credit on Form CBT-100, Form CBT-100S or Form BFC-1, a completed

Form 314 must be attached to the return to validate the claim. Any unused credit may be carried forward, if necessary, for use in the

five privilege periods following the privilege period for which the credit is allowed.

PART I QUALIFICATIONS FOR EACH REMEDIATION TAX SITE

Questions 1 through 5(a) pertain to the taxpayer and the remediation costs qualifications that must be met prior to taking the

Remediation Tax Credit. Complete Part I for each Remediation Site for which the taxpayer is taking a tax credit for.

Line 1 - The taxpayer must apply to the Department of Environmental Protection for review and certification of eligible remediation

costs. The department will certify such cost upon making the following findings: (a) the taxpayer has entered into an agreement

with the commissioner of the department for the remediation of a contaminated site, and is in compliance with the agreement; (b)

the taxpayer is not liable for the contamination of the site under the New Jersey Spill Compensation and Control Act, as specified at

Sec. 58:10-23.11g, N.J.S.A; and (c) the costs of remediation were actually and reasonably incurred.

Answer question 5(a) only if the subsequent business activity at the remediated site is as a result of a relocation of an existing

business from within the State of New Jersey, if not leave it blank.

If the answer to any of these questions 1 through 5, is "NO", the taxpayer is not eligible to take this tax credit.

PART II CALCULATION OF THE REMEDIATION TAX CREDIT

Complete Part II for each remediation site for which the taxpayer is taking a tax credit.

Line 6 - Enter the amount of eligible remediation costs certified by the Department of Environmental Protection. Further, attach a

copy of the Application for Reimbursement of Remediation Costs Under the Brownfield and Contaminated Site Remediation Act

submitted to the Director of the Division of Taxation.

Line 7 - Enter the amount of the property tax exemption received pursuant to the "Environmental Opportunity Zone Act" P.L.1995,

c.413 (C.54:4-3.151).

Line 8 - Enter the total amount received for any in lieu of tax payments made pursuant to the "Environmental Opportunity Zone Act

P.L.1995, c.413 (C.54:4-3.151) and any other State, local, or federal tax incentive and grant received to remediate a site.

PART III CALCULATION OF THE AVAILABLE REMEDIATION TAX CREDIT

Line 11 - Enter the amount of available remediation tax credit from Part II, line 10. If the taxpayer has multiple remediation sites,

Part I and Part II must be completed for each individual site, and the total amount from all Form 314s, Part II, line 10 is to be reported

on Part III, line 11.

PART IV CALCULATION OF THE ALLOWABLE REMEDIATION TAX CREDIT

The allowable Remediation Tax Credit for the current period is calculated in Part IV. 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.

Form 314 - Remediation Tax Credit - 2011 Page 3