Fillable Form 304 - New Jobs Investment Tax Credit

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

Calculation of the Allowable Credit Amount

Jersey employees whose positions are directly attributable to the

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

qualified investment.

The denominator is all New Jersey

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

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

cannot exceed 50% of that portion of the corporation Business Tax

determine these amounts.

liability which is attributable to and the direct result of the

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

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

There is no carryover provision for this tax credit.

below the statutory minimum.

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

8. Certification and Record keeping

the qualified investments comprising the Aggregate Annual Credit

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

on Line 10, Part II.

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

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

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

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

New Jersey Gross Receipts

CBT-100

CBT-100S

depreciable life.

Less than $100,000

$500.00

$375.00

The taxpayer must maintain sufficient records for each item of

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

$750.00

$562.00

qualified property to establish:

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

$1,000.00

$750.00

1) its identity;

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

2) its actual or reasonably determined cost;

$1,000,000 or more

$2,000.00 $1,500.00

3) its straight-line depreciation life;

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

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

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

5) the amount of credit taken; and

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

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

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

property.

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 applying

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

PART I

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

Qualifications

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 qualify

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

for the tax credit.

payments that were attributable to and the direct result of the

PART II

taxpayer’s qualified investment.

If the taxpayer is unable to

ascertain these amounts, they shall be determined by multiplying

Calculation of the New Jobs Investment Tax Credit

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

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

amount of implicit New Jersey property taxes paid by the fraction

tax purposes.

that was determined on line 13 of Part III.

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

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

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

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

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

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

PART IV

compensation is less than the required median compensation of

Certification

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

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

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

compensation is at least the required median compensation amount.

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

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

make the certifications, amended returns must be filed reflecting the

than the required median compensation amount. The final number of

correct new jobs factors and qualified investments for all affected tax

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

years.

reported on line 6(e), Part II.

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.

PART III

Form 304-A (09-13, R-20)

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Form 304 - New Jobs Investment Tax Credit - 2013 Page 4

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