New Jersey Small NJ-Based High-Technology Business Investment Tax Credit and Instructions (OBSOLETE)

Small NJ-Based High-Technology Business Investment Tax Credit and Instructions (OBSOLETE)
Form - 308 - Small NJ-Based High-Technology Business Investment Tax Credit and Instructions
FORM

308

2018

(07-18, R-13)

Name as Shown on Return

NEW JERSEY CORPORATION BUSINESS TAX

SMALL NEW JERSEY-BASED HIGH-TECHNOLOGY
BUSINESS INVESTMENT TAX CREDIT
Federal ID Number

NJ Corporation Number

READ THE INSTRUCTIONS BEFORE COMPLETING THIS FORM
NOTE: The legislation governing this tax credit expired for privilege periods beginning on and after July 1, 2001. Also, a research and
development tax credit shall not be allowed for expenses paid from funds for which a small New Jersey-Based High-Technology Tax Credit
is allowed, or which are includable in the calculation of the allowed amount of this tax credit.

PART I

CREDIT CALCULATION FOR QUALIFIED INVESTMENTS
INVESTMENT
(A)
1. Enter amount of each investment made during
current year . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INVESTMENT
(B)

INVESTMENT
(C)

2. Enter 10% (.10) of line 1. . . . . . . . . . . . . . . . . .
3. Enter the lesser of line 2 or $500,000 . . . . . . .

4. Amount available for credit this tax year (enter total of line 3 columns A, B, and C) . . . . . . . . . . . . . . .

4.

6. Total tax credit available (add lines 4 and 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

5. Small New Jersey-Based High-Technology Tax Credit carried forward from the prior tax year . . . . . .

PART II

CALCULATION OF THE ALLOWABLE CREDIT AMOUNT

5.

7. Enter tax liability from page 1, line 9 of Form CBT-100 or BFC-1, or line 4 of Form CBT-100S . . . . . .

7.

9. Subtract line 8 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.

8. Enter the required minimum tax liability as indicated in instruction (b) for Part II . . . . . . . . . . . . . . . . .

8.

10. Enter 50% (.50) of the tax liability reported on line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Enter the lesser of line 9 or line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.

12. Tax credits taken on current year’s return, if applicable:
a) ________________________

________________________

c) ________________________

________________________

b) ________________________

d) ________________________

________________________

________________________

Total

13. Subtract line 12 from line 11. If the result is less than zero, enter zero . . . . . . . . . . . . . . . . . . . . . .

12.

13.

14. Allowable credit for the current tax period. Enter the lesser of line 6 or line 13 here and on
Schedule A-3 of the CBT-100, the CBT-100S or the BFC-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.

PART III

SMALL NEW JERSEY-BASED HIGH-TECHNOLOGY BUSINESS INVESTMENT TAX CREDIT CARRYOVER

15. Enter amount from line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.

16. Enter amount from line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.

17. Amount of tax credit carryover (line 15 minus line 16) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.

Form 308-A

(07-18, R-13)

Instructions for Form 308

Small New Jersey-Based High-Technology Business Investment Tax Credit

NOTE: The legislation governing this tax credit expired for privilege periods beginning on and after July 1, 2001.

The purpose of the Small New Jersey-Based High-Technology Business Investment Tax Credit Act is to encourage corporate taxpayers
to invest in small New Jersey-based high-technology businesses thereby providing them with the needed funds for research and
development and pilot scale manufacturing required to develop marketable products and services. If the taxpayer claims this credit on
Form CBT-100, Form CBT-100S or Form BFC-1, a completed form 308 must be attached to the return to validate the claim.

A taxpayer shall be allowed a credit against the tax imposed pursuant to Section 5 of P.L. 1945, C. 162 (C. 54:10A-5) in an amount equal
to 10% of the qualified investment made by the taxpayer during each of the three years beginning on or after January 1, 1999, in a small
New Jersey-based high-technology business, up to a maximum allowed credit of $500,000 for the tax year for each qualified investment
made by the taxpayer. A small New Jersey-based high-technology business means a corporation doing business, employing or owning
capital or property, or maintaining an office, in this State that has qualified research expenses paid or incurred for research conducted
in this State or conducts pilot scale manufacturing in this State, and has fewer than 225 employees, of whom 75% are New Jersey-based
employees filling a position or job in this State.

The credit allowable for any given tax year may not to exceed an amount which would reduce the total tax liability below the statutory
minimum. A research and development tax credit shall not be allowed for expenses paid from funds for which a small New Jersey-based
high-technology tax credit is allowed, or which are includable in the calculation of the allowed amount of this tax credit. Any unused
credit may be carried over for fifteen 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.
DEFINITIONS

Advanced computing means a technology used in the
designing and developing of computing hardware and software,
including innovations in designing the full spectrum of hardware
from hand-held calculators to super computers, and peripheral
equipment.
Advanced materials means materials with engineered
properties created through the development of specialized
processing and synthesis technology, including ceramics, high
value-added metals, electronic materials, composites, polymers,
and biomaterials.
Biotechnology means the continually expanding body of
fundamental knowledge about the functioning of biological
systems from the macro level to the molecular and subatomic
levels, as well as novel products, services, technologies and subtechnologies developed as a result of insights gained from
research advances which add to that body of fundamental
knowledge.
Electronic device technology means a technology involving
microelectronics, semiconductors, electronic equipment, and
instrumentation, radio frequency, microwave, and millimeter
electronics, and optical and optic-electrical devices, or data and
digital communications and imaging devices.
Environmental technology means assessment and prevention
of threats or damage to human health or the environment,
environmental cleanup, or the development of alternative energy
sources.
Medical devices technology means a technology involving any
medical equipment or product (other than a pharmaceutical
product).

Pilot scale manufacturing means design, construction, and
testing of preproduction prototypes and models in the fields of
advanced computing, advanced materials, biotechnology,
electronic device technology, environmental technology, and
medical device technology, other than for commercial sale,
excluding sales of prototypes or sales for market testing if total
gross receipts, as calculated pursuant to section 6 of P.L. 1945,
C. 162 (C. 54:10A-6), from such sales of the product, service or
process do not exceed $1,000,000.
Small New Jersey-based high-technology business means a
corporation doing business, employing or owning capital or
property, or maintaining an office, in this State that has qualified
research expenses paid or incurred for research conducted in
this State or conducts pilot scale manufacturing in this State, and
has fewer than 225 employees, of whom 75% are New Jerseybased employees filling a position or job in this State.
Qualified investment means the non-refundable investment, at
risk in a small New Jersey-based high-technology business, of
cash that is transferred to the small New Jersey-based hightechnology business by a taxpayer that is not a related person of
the small New Jersey-based high-technology business, the
transfer of which is in connection with a transaction in exchange
for stock, interests in partnerships or joint ventures, licenses
(exclusive or non-exclusive), rights to use technology, marketing
rights, warrants, options or any items similar to those listed in
these definitions, including but not limited to options or rights to
acquire any of the items listed in these definitions.
Qualified research expenses means qualified research
expenses as defined in section 41 of the Federal Internal
Revenue Code of 1986, 26 U.S.C. §41, as in effect on June 30,
1992, in the fields of advanced computing, advanced materials,
biotechnology, electronic device technology, environmental
technology, or medical device technology.

PART I

SPECIFIC INSTRUCTIONS FOR FORM 308

CREDIT CALCULATION FOR QUALIFIED INVESTMENTS

The tax credit is computed in this section and is based on an
amount equal to 10% of the qualified investment made by the
taxpayer during the current tax period in a small New Jerseybased high-technology business up to a maximum allowed credit
of $500,000 for the tax year for each qualified investment made
by the taxpayer. The total credit available is reported on line 6.
PART II

CALCULATION OF THE ALLOWABLE CREDIT AMOUNT

a)

b)

PART III

SMALL
NEW
JERSEY-BASED
HIGH-TECHNOLOGY
BUSINESS INVESTMENT TAX CREDIT CARRYOVER

Unused tax credits may be carried forward for fifteen 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.

The allowable Small New Jersey-Based High-Technology
Business Investment Tax Credit for the current period is
calculated in Part II. The amount of this credit is limited to
50% of the taxpayer’s total tax liability and cannot reduce the
total tax liability below the statuatory minimum. Taxpayers
claiming multiple credits must list any credits already applied
to the tax liabilty to ensure accuracy of the calculation for
maximum credit allowable.
The minimum tax is assessed based on the New Jersey
Gross Receipts as follows:

New Jersey Gross Receipts
Less than $100,000
$100,000 or more but less than $250,000
$250,000 or more but less than $500,000
$500,000 or more but less than $1,000,000
$1,000,000 or more

CBT-100 CBT-100S
$500.00 $375.00
$750.00 $562.00
$1,000.00 $750.00
$1,500.00 $1,125.00
$2,000.00 $1,500.00

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.

Form 308-A (07-18, R-13)

Page 2