New Jersey Business Retention and Relocation Tax Credit

Business Retention and Relocation Tax Credit
Form 316 Business Retention and Relocation Tax Credit
FORM 316

New Jersey Corporation Business Tax
Business Retention and Relocation 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	

Taxpayer Qualifications

	1.	.Has the taxpayer entered into an agreement with the New Jersey Commerce Commission to undertake
a project to relocate and retain full-time jobs within New Jersey?.............................................................. 	

YES	

NO

	 2.	 Has the taxpayer received a tax credit certificate issued by the New Jersey Division of Taxation?...........

YES	

NO

		

	

Check the box to indicate a copy of the certificate has been submitted to the Division of Taxation	

Note:	

Part II	

If the answer to question 1 or question 2 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 Available Credit

	 3.	 Enter the approved tax credit amount as reported on the tax credit certificate for the current
privilege period or tax year............................................................................................................

3.

	 4.	 Business Retention and Relocation Tax Credit carried forward from prior year............................

4.

	 5.	 Total credit available (add lines 3 and 4).......................................................................................

5.

Part III	
	

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

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

6.

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

7.

	 8.	 Subtract line 7 from line 6..............................................................................................................

8.

	 9.	 Other tax credits used by taxpayer on current year’s return (see instructions):
	

(a)

	

	

(b)

	

	

(c)

	

	

(d)

	

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

9.

	10.	 Subtract line 9 from line 8..............................................................................................................

10.

	11.	 Allowable credit for the current tax period. Enter the lesser of line 5 or line 10 here and on
Schedule A-3, Part I of the CBT-100 or CBT-100S.......................................................................

11.

	12.	 Amount of credit carryover to following year’s return (subtract line 11 from line 5).......................

12.

Name as Shown on Return

Part IV	

Federal ID Number

Unitary ID Number, if applicable

NU

Calculation of Allowable Credit Amount and Carryover – Combined Return Filers ONLY

Section A – ALL Combined Return Filers
	13.	 Enter the group tax liability from Schedule A, Section II, Part III, line 4a, column (c) of CBT-100U.

13.

	14.	 Enter the aggregate minimum tax of combined group members (see instructions)..............................

14.

	15.	 Subtract line 14 from line 13.............................................................................................................

15.

	16.	 Other tax credits used by combined group on current year’s return (see instructions)
	

(a)

	

	

(b)

	

	

(c)

	

	

(d)

	

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

16.

	17.	 Subtract line 16 from line 15. If zero or less, enter zero...................................................................

17.

	18.	 Allowable credit for the current tax period. Enter the lesser of line 5 or line 17. If sharing, also
enter in the member’s column of Schedule A-3, Part I of the CBT-100U.........................................

18.

If SHARING credit, complete line 19.
If NOT sharing credit, skip line 19 and complete Section B.
	19.	 Amount of credit carryover to following year’s return (subtract line 18 from line 5)..........................

19.

Section B – Combined Return Filers NOT Sharing Credit
	20.	 a)	 Enter combined group tax liability from line 13...........................
	

	 b)	 Divide line 20a by the combined group allocation factor from
Schedule J, line 9.......................................................................

20a.
20b.

		 c)	 Member’s share of combined group tax liability – Multiply line 20b by member’s allocation
factor from Schedule J, line 9......................................................................................................

20c.

	21.	 Required minimum tax liability..........................................................................................................

21.

	22.	 Subtract line 21 from line 20c...........................................................................................................

22.

	23.	 Other tax credits used by taxpayer on current year’s return (see instructions):
	

	

(a)

	

(b)

	

	

(c)

	

	

(d)

	

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

23.

	24.	 Subtract line 23 from line 22. If zero or less, enter zero...................................................................

24.

	25.	 Allowable credit for the current tax period. Enter the lesser of line 18 or line 24 here and in the
member’s column of Schedule A-3, Part I of the CBT-100U............................................................

25.

	26.	 Amount of credit carryover to following year’s return (subtract line 25 from line 5)..........................

26.

2,000

Instructions for Form 316
Business Retention and Relocation Tax Credit
This form must be completed by any taxpayer claiming a Business Retention and Relocation Tax Credit on Form CBT-100, CBT-100U, or
CBT-100S. A completed Form 316 must be included with the return to validate the claim. 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.
Although there is a limitation of the amount of credit allowed in a privilege period or tax year, the amount of unused credit may be carried
forward to the next tax period and expires thereafter.

Combined Return Filers

If filing a combined return, the form must be completed by the member that earned (purchased) 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.
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.

Part I – Qualifications

To be eligible for the tax credit, the answer to questions 1 and 2 must be “YES.” If the answer to question 1 or 2 is “NO,” the taxpayer is
not entitled to the Business Retention and Relocation Tax Credit.
A copy of the tax credit certificate and a copy of the completed Form 316 must be submitted by mail to the New Jersey Division of
Taxation, CBT Refunds/Tax Credits, PO Box 259, Trenton, NJ 08695-0259. Failure to submit this documentation by mail will result in the
delay and/or denial of the tax credit claimed.
Taxpayers that have received a grant of tax credits as a result of the project agreement must include the related tax credit certificate issued
by the New Jersey Division of Taxation.

Part II – Calculation of the Available Credit

Follow the instructions on lines 3 through 5 to calculate the total Business Retention and Relocation Tax Credit.

Part III – Calculation of the Allowable Credit Amount and Carryover (for CBT-100 and CBT-100S Filers only)
For CBT-100 and CBT-100S filers, the allowable Business Retention and Relocation Tax Credit for the current period is calculated in Part
III. Combined return filers do not complete Part III, and must complete Part IV instead. The amount of this credit in addition to the amount
of any other tax credits taken cannot exceed an amount that would reduce the total tax liability below the statutory minimum.
Line 7 – The minimum tax is assessed based on the New Jersey Gross Receipts as follows:
New Jersey Gross Receipts

CBT-100

CBT-100S

Less than $100,000

$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

$1,125

$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 9 – Taxpayers claiming multiple credits must list any credits already applied to the tax liability to ensure accuracy of the calculation for
maximum credit allowable.

Part IV – Calculation of the Allowable Credit Amount and Carryover for Combined Return Filers

For CBT-100U filers, the allowable Business Retention and Relocation 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 reduce the tax liability to an amount less than the aggregate statutory minimum
tax of the group members.
Line 14 – Multiply the number of taxable group members by $2,000 and enter the result.
Line 16 – 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.
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 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 23 – 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.