New Jersey Effluent Equipment Tax Credit and Instructions

Effluent Equipment Tax Credit and Instructions
Form 312 Effluent Equipment Tax Credit
FORM 312

New Jersey Corporation Business Tax
Effluent Equipment 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.	 Did the taxpayer purchase the effluent treatment equipment or conveyance equipment in a tax period
beginning on or after July 1, 2002?............................................................................................................

	

YES	

NO

	 2.	 Has the taxpayer applied for or received a determination of environmentally beneficial operation from
the Commissioner of the Department of Environmental Protection with respect to the equipment for
which the credit is sought?.........................................................................................................................

	

YES	

NO

	 3.	 Is the equipment used exclusively in New Jersey?....................................................................................

	

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.

Effluent Treatment and Conveyance Equipment

(A)
DESCRIPTION

(B)
MONTH &
YEAR PLACED
IN SERVICE

(C)
COST

(D)
LOAN AMOUNT
FROM DEPT OF
ENVIRONMENTAL
PROTECTION
PLUS SALES &
USE TAX PAID

(E)
COLUMN (C)
MINUS
COLUMN (D)

(F)
50% OF
COLUMN (E)

(G)
# OF MONTHS
USED IN N.J.

(H)
COLUMN (F) X
COLUMN (G)
DIVIDED BY 12

a)
b)
c)
d)
e)
Total

Part III	

Calculation of Available Credit

	 4.	 Enter the total of column (H), Part II...................................................................................................

4.

	 5.	 Enter the total of column (I), Part II.....................................................................................................

5.

	 6.	 Subtract line 5 from line 4...................................................................................................................

6.

	 7.	 Enter 20% of line 4.............................................................................................................................

7.

	 8.	 Total credit available. Enter the lesser of line 6 or line 7....................................................................

8.

Part IV	 Calculation of Allowable Credit Amount
		 (Combined return filers DO NOT complete Part IV. Continue with Part V.)
	 9.	 Enter tax liability from page 1, line 2a of CBT-100 or CBT-100S........................................................

9.

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

10.

	11.	 Subtract line 10 from line 9.................................................................................................................

11.

	12.	 Enter 50% of the tax liability reported on line 9..................................................................................

12.

	13.	 Enter the lesser of line 11 or line 12...................................................................................................

13.

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

(a)

	

	

(b)

	

	

(c)

	

	

(d)

	

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

14.

	15.	 Subtract line 14 from line 13. If zero or less, enter zero....................................................................

15.

	16.	 Allowable credit for the current tax period. Enter the lesser of line 8 or line 15 here and on
Schedule A-3, Part I of the CBT-100 or CBT-100S............................................................................

16.

(I)
CREDIT USED/
SHARED IN
PRIOR YEARS

Name as Shown on Return

Part V	

Federal ID Number

Unitary ID Number, if applicable

NU

Calculation of Allowable Credit Amount – Combined Return Filers ONLY

	17.	 Enter the group tax liability from Schedule A, Section II, Part III, line 4a, column (c) of CBT-100U....

17.

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

18.

	19.	 Subtract line 18 from line 17................................................................................................................

19.

	20.	 Enter 50% of the tax liability reported on line 17.................................................................................

20.

	21.	 Enter the lesser of line 19 or line 20....................................................................................................

21.

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

(a)

	

	

(b)

	

	

(c)

	

	

(d)

	

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

22.

	23.	 Subtract line 22 from line 21. If zero or less, enter zero......................................................................

23.

	24.	 Allowable credit for the current tax period. Enter the lesser of line 8 or line 23. If sharing, also
enter in the member’s column of Schedule A-3, Part I of the CBT-100U............................................

24.

If NOT sharing credit, complete Section B.
Section B – Combined Return Filers NOT Sharing Credit
	25.	 a)	 Enter combined group tax liability from line 17..........................

25a.

		 b)	 Divide line 25a by the combined group allocation factor from
Schedule J, line 9......................................................................

25b.

		 c)	 Member’s share of combined group tax liability – Multiply line 25b by member’s allocation factor
from Schedule J, line 9...................................................................................................................

25c.

	26.	 Required minimum tax liability.............................................................................................................

26.

	27.	 Subtract line 26 from line 25c..............................................................................................................

27.

	28.	 Enter 50% of the tax liability reported on line 25c...............................................................................

28.

	29.	 Enter the lesser of line 27 or line 28....................................................................................................

29.

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

(a)

	

	

(b)

	

	

(c)

	

	

(d)

	

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

30.

	31.	 Subtract line 30 from line 29. If zero or less, enter zero......................................................................

31.

	32.	 Allowable credit for the current tax period. Enter the lesser of line 24 or line 31 here and in the
member’s column of Schedule A-3, Part I of the CBT-100U...............................................................

32.

2,000

Instructions for Form 312
Effluent Equipment Tax Credit
This form must be completed by any taxpayer claiming an Effluent Equipment Tax Credit on CBT-100, CBT-100U, or CBT-100S in
accordance with N.J.S.A. 54:10A-5.31, P.L. 2001, c.32, Section 1. A completed Form 312 must be included with the return to validate the
claim.
Unused tax credits may be claimed in subsequent tax years subject to the limitations set forth on this form.
Parts IV and V are used to calculate the allowable credit and carryover. Taxpayers filing Forms CBT-100 or CBT-100S complete Part IV
and CBT-100U filers complete Part V.

Combined Return Filers

If filing a combined return, the 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 V, 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 V, 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 all questions in Part I must be “YES.” If the answer to any of the questions is “NO,” the
taxpayer is not entitled to the Effluent Equipment Tax Credit.
Taxpayers that have received the determination of environmentally beneficial operation from the Commissioner of the Department of
Environmental Protection must include a copy of each determination along with Form 312 with the tax return. Also, taxpayers must include
an affidavit stating that the treatment equipment or conveyance equipment is or will be used exclusively in New Jersey.
Note:	

No amount of cost included in the calculation of this tax credit shall be included in the costs for calculation of any other credit
against the tax imposed pursuant to section 5 of P.L. 1945, c.162 (N.J.S.A. 54:10A-5).

Part II – Effluent Treatment and Conveyance Equipment

Complete the information requested in each of the columns (A) through (I) for each piece of equipment. If additional space is needed,
include a rider in like format containing the information required in columns (A) through (I).
The cost amount to be reported in column (C) is the invoice cost of the equipment.
Column (D) must reflect the total of the amount of any loan from the Department of Environmental Protection made pursuant to section
5 of P.L. 1981, c. 278 as amended (N.J.S.A. 13:1E-96) plus the amount of any Sales and Use Tax paid pursuant to P.L. 1966, c.30 as
amended (N.J.S.A. 54:32B-1 et seq.).
Enter in column (G) the number of months that the equipment was used in New Jersey during the period covered by the return.
The prorated credit amount, reported in column (H), is computed by multiplying column (F) by column (G) and dividing the result by 12.
Enter the totals of the amounts reported in columns (H) and (I) in the space provided. Combined return filers, include in column (I) any
amounts shared with other members in prior years.

Part III – Calculation of Available Credit

Follow the instructions on lines 4 through 8 to calculate the total Effluent Equipment Tax Credit.

Part IV – Calculation of Allowable Credit Amount (for CBT-100 and CBT-100S Filers only)

For CBT-100 and CBT-100S filers, the allowable Effluent Equipment Tax Credit for the current year is calculated in Part IV. Combined
return filers do not complete Part IV, and must complete Part V instead. The amount of this credit in addition to the amount of any other
tax credits taken is limited to 50% of the taxpayer’s total tax liability and cannot exceed an amount that would reduce the total tax liability
below the statutory minimum.

Line 10 – The minimum tax is assessed based on the New Jersey Gross Receipts 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

$1,125

$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 14 – 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 V – Calculation of Allowable Credit Amount for Combined Return Filers

For CBT-100U filers, the total and allowable Effluent Equipment Tax Credit for the current year is calculated in Part V. 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 group tax liability otherwise due and cannot reduce the tax
liability to an amount less than the aggregate statutory minimum tax of the group members.
Line 18 – Multiply the number of taxable group members by $2,000 and enter the result.
Line 22 – 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 exceed 50%
of the member’s tax liability otherwise due 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 30 – 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.