New Jersey New Jobs Investment Tax Credit and Instructions

New Jobs Investment Tax Credit and Instructions
Form 304 New Jobs Investment Credit
FORM 304

New Jersey Corporation Business Tax
New Jobs Investment Tax Credit

2023

Name as Shown on Return

Federal ID Number

Unitary ID Number, if applicable

NU

Read the instructions before completing this form
Combined Return Filers
	

The taxpayer is included as a taxable member on a New Jersey combined return. See instructions.
Fill in oval if member is not sharing its credit with other members of the group.

Part I	

Qualifications

	 1.	 Has the taxpayer invested in property purchased for new or expanded business facilities that created at least 5
new jobs in New Jersey for small or mid-sized business taxpayers (50 for other taxpayers) with median income
of at least $56,000 for tax years beginning in 2023? (see instructions).................................................................

	

YES	

NO

	 2.	 Has the average book value of all real and tangible personal property in New Jersey of the taxpayer increased
over the prior tax year?..........................................................................................................................................

	

YES	

NO

	 3.	 Is the average employment of the taxpayer in New Jersey in the first tax year of the tax credit greater than that
of the prior tax year?..............................................................................................................................................

	

YES	

NO

Note:	

Part II	
	

If the answer to any of the above questions is “NO,” do not complete the rest of this form. The taxpayer does not qualify for this tax credit.
Otherwise, go to Part II.

Calculation of the New Jobs Investment Tax Credit

Note: All items pertain only to New Jersey factors. Refer to the specific line item instructions for Part II before completing this section.

	 4.	 Enter the amounts of the qualified investments made during the current tax year:
		 (a) 3-year life
x 0.35......................................................................................

4a.

		 (b) 5-year life

x 0.70......................................................................................

4b.

		 (c) 7-year or more life

x 1.00........................................................................

4c.

	 5.	 Add lines 4a through 4c..............................................................................................................................

5.

	 6.	 (a) Enter the average New Jersey employment for this tax year...............................................................

6a.

		 (b) Enter the average New Jersey employment for last tax year...............................................................

6b.

		 (c) Subtract line 6b from line 6a.................................................................................................................

6c.

		 (d) Divide line 6a by 2.................................................................................................................................

6d.

		 (e) Enter the number of eligible new jobs. (see instruction).......................................................................

6e.

		 (f) Enter the lesser of lines 6c, 6d, or 6e....................................................................................................

6f.

	 7.	 New Jobs Factor (see instruction):
(a)	 Small or mid-sized business taxpayers divide line 6(f) by 5 with no remainder. Other taxpayers
divide line 6f by 50 with no remainder..................................................................................................

7a.

(b)	 For small or mid-sized business taxpayers, multiply line 7a by 0.01. For other taxpayers, multiply
line 7a by 0.005....................................................................................................................................

7b.

(c) 	For small or mid-sized business taxpayers, enter the lesser of 0.20 or line 7b. For other taxpayers,
enter the lesser of 0.10 or line 7b.........................................................................................................

7c.

	 8.	 Maximum annual credit – Multiply line 5 x line 7c x 0.20............................................................................

8.

	 9.	 Prior year qualified investment (see instruction)
	 	 Enter the maximum annual credit as determined on line 8 of this form for:
(a) First prior tax year.................................................................................................................................

9a.

		 (b) Second prior tax year.............................................................................................................................

9b.

		 (c) Third prior tax year.................................................................................................................................

9c.

		 (d) Fourth prior tax year...............................................................................................................................

9d.

	10.	 Total annual credit – Add line 8 and lines 9(a) through (d)..........................................................................

10.

Name as Shown on Return

Part III	
	

Federal ID Number

Unitary ID Number, if applicable

NU

Calculation of the Allowable Credit Amount
(Combined return filers DO NOT complete Part III. Continue with Part IV.)

	 11.	 Compensation of all employees in New Jersey attributable to the qualified investment.........................................

11.

	12.	 Total compensation of all employees in New Jersey...............................................................................................

12.

	13.	 Divide line 11 by line 12...........................................................................................................................................

13.

	14.	 Enter tax liability from page 1, line 2a of CBT-100 or CBT-100S............................................................................

14.

	15.	 Multiply line 14 by line 13........................................................................................................................................

15.

	16.	 Enter the required minimum tax liability (see instructions)...........................................................................................

16.

	17.	 Subtract line 16 from line 15....................................................................................................................................

17.

	18.	 Enter 50% of the reduced tax liability entered on line 15........................................................................................

18.

	19.	 Enter the lesser of line 17 or line 18........................................................................................................................

19.

	20.	 Other tax credits used by taxpayer on current year’s return:
	

(a)

	

(b)

	

	

(c)

	

	

(d)

	

	

..............................................Total

20.

	21.	 Subtract line 20 from line 19. If zero or less, enter zero..........................................................................................

21.

	22.	 Allowable credit for the current tax period. Enter the lesser of line 10 or line 21 here and on Schedule A-3,
Part I of the CBT-100 or CBT-100S.........................................................................................................................

22.

	23.	 Amount of credit available to be refunded (subtract line 22 from line 10). .............................................................

23.

	24.	 Property taxes attributable to qualified investment (see instructions):
(a)	 Property tax paid on new property or
Total N.J. property tax paid
multiplied by line 13........................................................

24a.

or imputed property tax on all
multiplied by line 13.........................................

24b.

(c)	 Add lines 24a and 24b.......................................................................................................................................

24c.

	25.	 Enter 50% (.50) of line 24c......................................................................................................................................

25.

	26.	 Refund request. Enter the lesser of line 23 or line 25. Enter here and in Schedule A-3, Part II of the CBT-100 or
CBT-100S	

26.

(b)	 Imputed property tax on new property (15% of rent)
rented property in N.J. (15% of rent)

Note: There is no carryover provision for this tax credit.

Name as Shown on Return

Part IV	

Federal ID Number

Unitary ID Number, if applicable

NU

Calculation of Allowable Credit Amount – Combined Return Filers ONLY

Section A – ALL Combined Return Filers
	27.	
	28.	
	29.	
	30.	
	31.	
	32.	
	33.	
	34.	
	35.	
	36.	
	
	
	
	
	37.	
	38.	

Compensation of all the member’s employees in New Jersey attributable to the qualified investment..................
Total compensation of all the member’s employees in New Jersey........................................................................
Divide line 27 by line 28..........................................................................................................................................
Enter the group tax liability from Schedule A, Section II, Part III, line 4a column (c) of CBT-100U.........................
Multiply line 30 by line 29........................................................................................................................................
Aggregate minimum tax of combined group members (see instructions)....................................................................
Subtract line 32 from line 31....................................................................................................................................
Enter 50% of the reduced tax liability entered on line 31........................................................................................
Enter the lesser of line 33 or line 34........................................................................................................................
Other tax credits used by combined group on current year’s return (see instructions):
(a)
	
(b)
	
(c)
	
(d)
	
........................................... Total
Subtract line 36 from line 35. If zero or less, enter zero.........................................................................................
Allowable credit for the current tax period. Enter the lesser of line 10 or line line 37. If sharing, also enter in the
member’s column of Schedule A-3, Part I of the CBT-100U...................................................................................

If SHARING credit, complete lines 39–42.
If NOT sharing credit, skip lines 39–42 and complete Section B.
	39.	 Amount of credit available to be refunded (subtract line 38 from line 10). .............................................................
	40.	 Property taxes attributable to qualified investment (see instructions):
(a)	 Property tax paid on new property or
Total N.J. property tax paid
multiplied by line 29........................................................
(b)	 Imputed property tax on new property (15% of rent)
or imputed property tax on all
rented property in N.J. (15% of rent)
multiplied by line 29.........................................
(c)	 Add lines 40a and 40b.......................................................................................................................................
	41.	 Enter 50% (.50) of line 40c......................................................................................................................................
	42.	 Refund request. Enter the lesser of line 39 or line 41 here and in the member’s column of Schedule A-3, Part II
of the CBT-100U......................................................................................................................................................

27.
28.
29.
30.
31.
32.
33.
34.
35.

36.
37.
38.

39.

40a.
40b.
40c.
41.
42.

Section B – Combined Return Filers NOT Sharing Credit
	43.	 a)	 Enter combined group tax liability from line 30........................................
43a.
		 b)	 Divide line 43a by the combined group allocation factor from
Schedule J, line 9.....................................................................................
43b.
		 c)	 Member’s share of combined group tax liability – Multiply line 43b by member’s allocation factor from
Schedule J, line 9.....................................................................................
	44.	 Multiply line 43c by line 29......................................................................................................................................
	45.	
	46.	
	47.	
	48.	
	49.	
	
	
	
	
	50.	
	51.	

Enter the required minimum tax liability..................................................................................................................
Subtract line 45 from line 44....................................................................................................................................
Enter 50% of the reduced tax liability entered on line 44........................................................................................
Enter the lesser of line 46 or line 47........................................................................................................................
Other tax credits used by taxpayer on current year’s return (see instructions):
(a)
	

(b)
	
(c)
	
(d)
	
........................................... Total
Subtract line 49 from line 48. If zero or less, enter zero..........................................................................................
Allowable credit for the current tax period. Enter the lesser of line 38 or line 50 here and in the member’s
column of Schedule A-3, Part I of the CBT-100U....................................................................................................
	52.	 Amount of credit available to be refunded (subtract line 51 from line 10). .............................................................
	53.	 Property taxes attributable to qualified investment (see instructions):
(a)	 Property tax paid on new property or
Total N.J. property tax paid
multiplied by line 29........................................................
(b)	 Imputed property tax on new property (15% of rent)
or imputed property tax on all
rented property in N.J. (15% of rent)
multiplied by line 29.........................................
(c)	 Add lines 53a and 53b.......................................................................................................................................
	54.	 Enter 50% (.50) of line 53c......................................................................................................................................
	55.	 Refund request. Enter the lesser of line 52 or line 54 here and in the member’s column of Schedule A-3, Part II
of the CBT-100U......................................................................................................................................................
Note: There is no carryover provision for this tax credit.

43c.
44.
45.
46.
47.
48.

49.
50.
51.
52.

53a.
53b.
53c.
54.
55.

2,000

Name as Shown on Return

Part V	

Federal ID Number

Unitary ID Number, if applicable

NU

Certification

The following certifications are required in accordance with N.J.S.A. 54:10A-5.9 of the New Jobs Investment Tax Credit Act.
	 1.	 For qualified investments made during the current tax year, the taxpayer certifies that the number of new jobs reported on line 6e of Part II, is a
reasonable estimate of the number of new jobs directly attributable to the qualified investment; and
	 2.	 For qualified investments made in prior years for which a New Jobs Investment Tax Credit was claimed, the taxpayer certifies:
(a) The new jobs factor for:	

the first prior year	
	

the second prior year	

	

the third prior year	

	

the fourth prior year	

(b) The maximum annual tax credit for:	

the first prior year	

	

the second prior year	

	

the third prior year	

	

the fourth prior year	

(c) That the qualified investment property continues to be used in the business or has been disposed of after the expiration of its recovery period;
and
(d) That the new jobs used in the calculation of the new jobs factor continue to qualify as eligible new jobs as defined for the purposes of this credit.

(Signature of Duly Authorized Officer of Taxpayer)	
Note:	

(Date)

If the taxpayer is unable to make the above certifications, amended returns must be filed reflecting the correct new jobs factors and qualified
investments for all affected tax years.

Instructions for Form 304
New Jobs Investment Tax Credit
The New Jobs Investment Tax Credit is available for investment in new or expanded business facilities that create new jobs in New Jersey.
Investments that qualify for this tax credit must be placed in service or use during tax years beginning after July 7, 1993. The investment
must create at least 5 new jobs (50 new jobs for large businesses) with a median annual compensation of the threshold amount established for the particular tax year. Also, to claim this tax credit, the average book value of all real and tangible personal property in New Jersey must have increased over the prior year.
The New Jobs Investment Tax Credit is taken in five equal annual installments. The annual credit cannot exceed 50% of that portion of the
Corporation Business Tax liability that is attributable to and the direct result of the taxpayer’s qualified investment and cannot reduce the
tax liability below the statutory minimum. Although there is no carryover provision for this tax credit, the amount of the unused annual credit
may be refunded to the taxpayer subject to certain limitations.
Parts III and IV are used to calculate the allowable credit and carryover. Taxpayers filing Forms CBT-100 or CBT-100S complete Part III
and CBT-100U filers complete Part IV.
Taxpayers must include the appropriate credit form in the year the credit was earned even if they are not claiming the credit on
their tax return.

Definitions
Expanded Business Facility means any business facility, other
than a new business facility, resulting from acquisition, construction, reconstruction, installation, or erection of improvements or
additions to existing property if such improvements or additions are
purchased during tax years beginning after July 7, 1993, but only
to the extent of a taxpayer’s qualified investment in such improvements or additions.
New Business Facility means a business facility that:
a) Is employed by a taxpayer in the conduct of a business that is
subject to the New Jersey Corporation Business Tax Act, N.J.S.A.
54:10A-1 et seq. A business facility does not qualify if the taxpayer’s only activity with respect to such facility is to lease it to another
person;
b) Is purchased and placed in service or use during tax years beginning after July 7, 1993;
c) Was not purchased by a taxpayer from a related person;
d) Was not in service or use during the 90-day period immediately
prior to transfer of the title to the facility.
New Employee means a New Jersey resident, hired to fill a regular, permanent position that did not exist prior to the qualified
investment, and would not exist but for the qualified investment.
The employee must be unrelated to the taxpayer and must not
have been in its employ during the six months prior to the date that
the qualified investment is placed in service or use. Temporary or
seasonal employees are not considered new employees for the
purposes of this tax credit. The position held by the employee may
be full time or part time. Full time means employment for at least
140 hours per month at a wage not less than the State or federal
minimum wage. Part time means customarily performing such duties at least 20 hours per week for at least six months during the
tax year. The hours of part-time employees shall be aggregated to
determine the number of full-time equivalent jobs for the purposes
of determining the number of eligible new jobs to be used in the
computation of the new jobs factor. The taxpayer cannot claim a
credit for the number of new employees that exceeds either the
increase in the taxpayer’s average employment in New Jersey for
the tax year, or one-half of the taxpayer’s average employment in
New Jersey for the tax year. Also, individuals included in the determination of the Urban Enterprise Zone Employees Tax Credit or the
Redevelopment Authority Project Tax Credit must be excluded in
the determination of this tax credit.

Qualified Investments are those real and tangible personal property investments purchased for business relocation or expansion in
New Jersey. Such investments include only:
1.	 Improvements to real property placed in service or use during
tax years beginning after July 7, 1993;
2.	 Tangible personal property with respect to which depreciation
with a recovery period of three or more years is allowable;
3.	 Tangible personal property moved by the taxpayer into New
Jersey provided that the property has a remaining recovery
period of three or more years.
Examples of qualified investments may not include:
1.	 Property with respect to which the taxpayer’s only activity is to
lease it to another person;
2.	 Repair costs, including materials used in the repair, unless for
federal income tax purposes, the cost of the repair must be
capitalized and not expensed;
3.	 Airplanes;
4.	 Property primarily used outside New Jersey;
5.	 Property that is acquired incident to the purchase of the stock
or assets of the seller;
6.	 Property for which the cost or consideration cannot be quantified with any reasonable degree of accuracy at the time such
property is placed in service or use.
Small or Mid-Sized Business Taxpayer means a taxpayer
that has the following annual payroll and annual gross receipts
amounts:
Tax Year
Beginning In

Payroll

Gross Receipts

2018
2019
2020
2021
2022
2023

$6,899,800 or less
$7,060,400 or less
$7,166,600 or less
$7,277,800 or less
$7,709,850 or less
$8,363,550 or less

$13,799,850 or less
$14,121,100 or less
$14,333,500 or less
$14,555,900 or less
$15,420,050 or less
$16,727,550 or less

Aggregate Annual Credit

Part I – Qualifications

The aggregate annual credit allowed for a tax year is the sum of:

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
for the tax credit.

1)	One-fifth of the annual credit amount calculated for prior tax
years plus
2)	One-fifth of the annual credit amount calculated for the current
tax year.
This amount is calculated in Part II of Form 304.

Tax Credit Limitations
The New Jobs Investment Tax Credit is allowed as a credit against
that portion of the taxpayer’s Corporation Business Tax liability for
the tax year that is attributable to and the direct result of the taxpayer’s qualified investment and shall not reduce the tax liability for the
tax year to an amount less than the required statutory minimum.
If any amount of the aggregate annual credit remains after the
above limitations are applied, that amount may be refunded to the
taxpayer. The amount of the refund cannot exceed 50% of the sum
of the property taxes paid in the tax year and the implicit property
taxes paid through rent or lease payments that are attributable to
and the direct result of the taxpayer’s qualified investment. If the
taxpayer is unable to ascertain these amounts, the attributable
property tax amounts shall be determined by multiplying the total
New Jersey property taxes paid by a fraction, the numerator of
which is the compensation paid to New Jersey employees whose
positions are directly attributable to the qualified investment. The
denominator is all New Jersey compensation paid for the tax year.
If any credit for the tax year remains, the amount shall be forfeited.
There is no carryover provision for this tax credit.

Certification and Record Keeping
The taxpayer must certify for every year during the five-year period
of the credit that the number of new jobs created is as reported on
the current and prior year tax credit forms, and that the qualified
investment property has not been disposed of prior to the end of its
depreciable life.
The taxpayer must maintain sufficient records for each item of qualified property to establish:
1)	Its identity;
2)	Its actual or reasonably determined cost;
3)	Its straight-line depreciation life;
4)	The month and the tax year in which it was placed in service;
5)	The amount of credit taken; and
6)	The date it was disposed of or otherwise ceased to be qualified property.

Specific Instructions for Form 304
Combined Return Filers – If filing a combined return, this form
must be completed by the member that earned the credit. All combined return filers must check the combined return filers box at the
top of the form and complete Part IV, Section A.
Members Opting Not to Share. In general, tax credits are earned
by a member of the combined group and are shareable with the
combined group. However, members are not required to share their
credits. See N.J.S.A. 54:10A-4.6.i and TB-90(R), Tax Credits and
Combined Returns. In addition to Section A, members that choose
not to share must also complete Part IV, Section B and fill in the
oval at the top of the form to indicate they are not sharing the credit.

The median income for qualifying new jobs must meet the required
amount for each tax year. E.g., for a business required to create 50
qualifying jobs, 25 of those jobs must pay at least the required median compensation amount.
Tax Year
Beginning In

Median Income of

2018

$46,350

2019

$47,400

2020

$48,100

2021

$48,800

2022

$51,650

2023

$56,000

Part II – Calculation of the New Jobs Investment
Tax Credit
Line 4 – Classify property purchased by its depreciable life for federal tax purposes.
Line 6e –  The number of eligible new jobs must reflect the number
of new employees (see definitions) hired by the taxpayer during the
tax year. To determine this number, the taxpayer should rank the
new employees by annual compensation. If the middle employee’s
annual compensation is less than the required median compensation of $56,000 for tax years beginning in 2023, then the lowest
ranking jobs should be deleted from the list until the middle employee’s annual compensation is at least the required median compensation amount. If there are an even number on the list, the top half
must be greater than the required median compensation 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.
Line 7a – Taxpayers who qualify as “small or mid-sized business
taxpayers” (see definitions) 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 that was filed for the particular
tax year.

Part III – Calculation of the Allowable Credit
Amount (for CBT-100 and CBT-100S Filers only)
For CBT-100 and CBT-100S filers, the total and allowable New Jobs
Investment Tax Credit for the current year is calculated in Part III.
Combined return filers do not complete Part III, and must complete
Part IV instead. The amount of this credit cannot exceed 50% of
that portion of the Corporation Business Tax liability that is attributable to and the direct result of the taxpayer’s qualified investment
and cannot reduce the tax liability below the statutory minimum.
Line 11 – Include the compensation of employees attributable to all
the qualified investments comprising the Aggregate Annual Credit
on Part II, line 10.
Line 16 – The required minimum tax liability is as follows:

New Jersey Gross Receipts
Less than $100,000	

CBT-100

CBT-100S

$ 500

$ 375

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

750

562

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

1,000

750

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

1,500

1,000

$1,000,000 or more

2,000

1,500

If a taxpayer is filing a separate return and is a member of an affiliated or controlled group that has a total payroll of $5,000,000 or
more for the return period, the minimum tax is $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.
Line 20 – Taxpayers claiming multiple credits must list any credits
already applied to the tax liability to ensure accuracy of the calculation for maximum credit allowable.
Lines 23 through 26 – If any unused credit remains after applying
the limitations indicated above, the excess may be refunded to the
taxpayer. The amount of the refund is calculated in this section.
Lines 24a and 24b – Report the amount of property taxes paid
and the amount of implicit property taxes paid through rent or lease
payments that were attributable to and the direct result of the taxpayer’s qualified investment. If the taxpayer is unable to ascertain
these amounts, they will be determined by multiplying the total
amount of New Jersey property taxes paid and the total amount of
implicit New Jersey property taxes paid by the fraction that was determined on line 13.
The priorities set forth in this Corporation Business Tax form follow
N.J.A.C. 18:7-3.17.

Part IV – Calculation of the Allowable Credit
Amount for Combined Return Filers
For CBT-100U filers, the total and allowable New Jobs Investment
Tax Credit for the current year is calculated in Part IV. All combined
return filers must complete Section A. Members that choose not to
share their credit must also complete section B.
Section A – To be completed by ALL combined return filers
This section calculates the amount of credit allowable for the group. If
a member chooses not to share their credit with the group, Section A
must still be completed to ensure the credit allowed for the member does not exceed the amount that would otherwise be allowed
against the group tax liability.
The amount of the credit calculated in this section cannot exceed
50% of the portion of the group tax liability that is attributable to and
the direct result of the member’s qualified investment and cannot
reduce the tax liability to an amount less than the aggregate statutory
minimum tax of the group members.
Line 27 – Include the compensation of employees attributable to all
the qualified investments comprising the Aggregate Annual Credit on
Part II, line 10.
Line 32 – Multiply the number of taxable group members by $2,000
and enter the result.
Line 36 – Combined groups claiming multiple credits must list any
credits already applied to the group tax liability to ensure accuracy of
the calculation for maximum credit allowable.
Lines 39 through 42 – If any unused credit remains after applying
the limitations indicated above, the excess may be refunded to the
taxpayer. The amount of the refund is calculated in this section.
Lines 40a and 40b – Report the amount of property taxes paid and
the amount of implicit property taxes paid through rent or lease pay-

ments that were attributable to and the direct result of the member’s
qualified investment. If the member is unable to ascertain these
amounts, they will be determined by multiplying the total amount of
New Jersey property taxes paid and the total amount of implicit New
Jersey property taxes paid by the fraction that was determined on
line 29.
Section B
This section is used to calculate the amount of credit allowable for
members that choose not to share their credit with the group. Section
B is completed based on the member’s share of the group tax liability. The amount of the credit calculated in this section cannot exceed
50% of the portion of the member’s share of the group tax liability
that is attributable to and the direct result of the member’s qualified
investment and cannot reduce the tax liability to an amount less than
$2,000. The amount of the credit is also limited to the amount that
would otherwise be allowed against the group tax liability if the member had been sharing the credit.
Line 49 – Members claiming multiple credits must list any credits
already applied to the member’s tax liability to ensure accuracy of
the calculation for maximum credit allowable.
Lines 52–55 – See Section A instructions for lines 39–42 and lines
40a–40b.

Part V – Certification
This section must be completed for each tax year during the fiveyear credit period for a qualified investment. If the taxpayer is
unable to make the certifications, amended returns must be filed
reflecting the correct new jobs factors and qualified investments for
all affected tax years.