Fillable Form 320 - Grow New Jersey Assistance Tax Credit

INSTRUCTIONS FOR FORM 320

GROW NEW JERSEY ASSISTANCE TAX CREDIT

PURPOSE OF THIS FORM - This schedule must be completed by any taxpayer that claims a tax credit as provided for in the Grow New

Jersey Assistance Tax Credit Act, N.J.S.A. 34:1B-242 et seq. If the taxpayer claims this credit on Form CBT-100, Form CBT100S, or Form

BFC-1, a completed Form 320 must be attached to the return to validate the claim.

The Grow New Jersey Assistance tax credit is available to businesses creating or retaining jobs in New Jersey and making a qualified capital

investment at a qualified business facility in a qualified incentive area as defined in the Grow New Jersey Assistance Act. This includes

affiliates of the business located in the qualified business facility and tenants which are businesses in the qualified business facility. The capital

investment requirements, employment requirements, and amount of the credit vary by qualified investment area and industry type.

Partnerships are not allowed the credit directly, but the amount of credit of each partner shall be determined by allocating to each partner of

the partnership that proportion of the credit of the business that is equal to the partner of the partnership's share, whether or not distributed, of

the total distributive income or gain of the partnership for its tax period ending within or with the partner's tax period, or that proportion that is

allocated by a partnership agreement.

The tax credit can be applied to 100% of the tax liability. The unused amount of the annual credit can be used during a 20 year carry forward.

The business may also apply for a tax credit transfer certificate with the Division of Taxation to transfer unused tax credits from the Grow New

Jersey Assistance Program from any year to sell the unused tax credits to another business. The tax credits must be sold for no less than 75%

of the value of the tax credits, and the purchaser is subject to the same limitations and conditions of the seller of the tax credits.

PART I - QUALIFICATIONS

In order to be eligible for the tax credit, the answer to questions 1 and 2 must be “YES”. If either answer is “NO”, the taxpayer is not entitled to

the Grow New Jersey Assistance Tax Credit.

The original tax credit certificate issued by the New Jersey Division of Taxation must be attached along with completed Form 320 to the tax

return. Failure to attach this certificate will result in the denial of the tax credit claimed.

PART II - CALCULATION OF THE AVAILABLE GROW NEW JERSEY ASSISTANCE TAX CREDIT

(a) Line 3 - The amount of the tax credit is equal to the amount reported on the tax credit certificate that was issued by the New Jersey

Division of Taxation.

(b) Line 5 – Enter the total of the amount of the tax credit from the current year from Part II, Line 3 and the amount of the tax credit that

was carried forward from a previous year on Form 320 Part II, Line 10 which was reported on in Line 4 of Form 320 for the current

year. This amount is the Grow New Jersey Assistance Tax Credit available for use in the current year.

PART III - CALCULATION OF THE ALLOWABLE CREDIT AMOUNT

(a) The allowable Grow New Jersey Assistance Tax Credit is calculated in Part III. The amount of this credit in addition to the amount of

any other tax credits can either be carried forward or is refundable. Note that each credit has its own statutory limitations and only the

angel investor tax credit is refundable.

(b) Line 7 - List the name and the related amount of any other tax credits claimed for the period covered by the return.

(c) Unused tax credits may be carried forward for twenty years following a credit’s tax year. However, a taxpayer may not carry over any

amount of unused credit to a tax year during which a corporate acquisition, with respect to which a taxpayer was a target corporation,

occurred or during which the taxpayer was a party to a merger or a consolidation. The amount of the carryover is calculated in Part

III, Line 10.

Form 320 - Grow New Jersey Assistance Tax Credit - 2015 Page 2

Related Articles

Related forms

Related Categories