New Jersey Sheltered Workshop Tax Credit

Sheltered Workshop Tax Credit
Form 317 Sheltered Workshop Tax Credit
FORM 317

New Jersey Corporation Business Tax
Sheltered Workshop 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.	

Is each employee for which a credit is claimed a “Qualified Person” in accordance with P.L. 2005,
c. 318?........................................................................................................................................................

	

YES	

NO

2.	

Did each employee for which a credit is claimed work for at least 26 weeks during the tax year and work
at least 25 hours per week at or under the supervision of a sheltered workshop?.....................................

	

YES	

NO

Note:	

Part II	

If the answer to either question 1 or 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
(A)
Social Security Number

(B)
Name

(C)
Total Wages

(D)
20% of Column C – Max $1,000

3.
4.
5.
6.
7.

Total of column D...............................................................................................................................

8.

Sheltered Workshop Tax Credit carried over from prior year............................................................

9.

Total credit available (add lines 7 and 8)...........................................................................................

Part III	
		

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

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

10.

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

11.

12.	 Subtract line 11 from line 10......................................................................................................

12.

13.	 Enter 50% of the tax liability reported on line 10.......................................................................

13.

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

14.

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

(a)

	

	

(b)

	

	

(c)

	

	

(d)

	

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

15.

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

16.

17.	 Allowable credit for the current tax period. Enter the lesser of line 9 or 16 here and on
Schedule A-3, Part I of the CBT-100 or CBT-100S...................................................................

17.

18.	 Amount of credit carryover to following year’s return (subtract line 17 from line 9)...................

18.

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

19.

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

20.

	21.	 Subtract line 20 from line 19................................................................................................................

21.

	22.	 Enter 50% of the tax liability reported on line 19.................................................................................

22.

	23.	 Enter the lesser of line 21 or line 22....................................................................................................

23.

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

(a)

	

	

(b)

	

	

(c)

	

	

(d)

	

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

24.

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

25.

	26.	 Allowable credit for the current tax period. Enter the lesser of line 9 or line 25. If sharing, also
enter in the member’s column of Schedule A-3, Part I of the CBT-100U............................................

26.

If SHARING credit, complete line 27.
If NOT sharing credit, skip line 27 and complete Section B.
	27.	 Amount of credit carryover to following year’s return (subtract line 26 from line 9).............................

27.

Section B – Combined Return Filers NOT Sharing Credit
	28.	 a)	 Enter combined group tax liability from line 19............................. 28a.
	

	 b)	 Divide line 28a by the combined group allocation factor from
Schedule J, line 9......................................................................... 28b.

	

	 c)	 Member’s share of combined group tax liability – Multiply line 28b by member’s allocation factor
from Schedule J, line 9...................................................................................................................

28c.

	29.	 Required minimum tax liability.............................................................................................................

29.

	30.	 Subtract line 29 from line 28c..............................................................................................................

30.

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

31.

	32.	 Enter the lesser of line 30 or line 31....................................................................................................

32.

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

(a)

	

	

(b)

	

	

(c)

	

	

(d)

	

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

33.

	34.	 Subtract line 33 from line 32. If zero or less, enter zero......................................................................

34.

	35.	 Allowable credit for the current tax period. Enter the lesser of line 26 or line 34 here and in the
member’s column of Schedule A-3, Part I of the CBT-100U...............................................................

35.

	36.	 Amount of credit carryover to following year’s return (subtract line 35 from line 9).............................

36.

2,000

Instructions for Form 317
Sheltered Workshop Tax Credit
This form must be completed by any taxpayer claiming a Sheltered Workshop Tax Credit and/or credit carryover as provided for in
P.L. 2005, c.318. In general, a tax credit is allowed in an amount equal to 20% of the salary and wages paid by the taxpayer during the tax
year for the employment of a qualified person but cannot exceed $1,000 for each qualified person for the tax year. If the taxpayer claims
this credit on Form CBT-100, CBT-100U, or CBT-100S, a completed Form 317 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.
Note: Only complete the applicable lines from Parts II–IV where the full amount of the Sheltered Workshop Tax Credit claimed on the current return is the result of a  Sheltered Workshop Tax Credit carried forward from a previous tax year.
The amount of the tax credit that cannot be applied to the current tax period due to the applicable limitations can be carried over to the
seven tax years following the tax year for which the credit was allowed.

Definitions:

Qualified Person means an extended employee, within the meaning of that term as set forth in section 2 of P.L.1971, c.272 (C.34:1640), to whom the Commissioner of the Department of Labor and Workforce Development, under subsection (b) of section 18 of
P.L.1966, c.113(C.34:11-56a17) shall have issued a special license authorizing employment at wages less than the minimum wage
rate, and who, for at least 26 weeks during the tax year, shall have performed at least 25 hours per week of work at or under the supervision of a sheltered workshop pursuant to a contract between the taxpayer and the sheltered workshop.
Sheltered Workshop means an occupation-oriented facility operated by a nonprofit agency with which the Division of Vocational
Rehabilitation Services in the Department of Labor and Workforce Development shall have entered into a contract under section 4 of
P.L.1971, c.272 (C.34:16-42) to furnish extended employment programs to eligible individuals.

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 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

The answer to both questions must be “YES.” If the answer to either question is “NO,” the taxpayer is not entitled to the Sheltered Workshop Tax Credit.

Part II – Calculations of the Available Credit

Enter the information in columns A through D for each qualified person for which a tax credit is claimed. Enter in column D the lesser of
20% of the amount in column C or $1,000. Include a schedule if additional entries must be made.

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 Sheltered Workshop Tax Credit for the current tax 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 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 11 – 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 15 – 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 Sheltered Workshop 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 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 20 – Multiply the number of taxable group members by $2,000 and enter the result.
Line 24 – 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 33 – 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.