New Jersey Domestic Production Activities Deduction

Domestic Production Activities Deduction
Form 501
FORM

501

(11-18, R-4)

Name as Shown on Return

NEW JERSEY CORPORATION BUSINESS TAX

DOMESTIC PRODUCTION ACTIVITIES DEDUCTION
For tax years beginning before January 1, 2018
Federal ID Number

READ THE INSTRUCTIONS BEFORE COMPLETING THE FORM

(A)
Federal Amount

1. Domestic production gross receipts . . . . . . . . . . . . . . .
2. Allocable cost of goods sold . . . . . . . . . . . . . . . . . . . .
3. Directly allocable deductions, expenses, or losses . . .
4. Indirectly allocable deductions, expenses, or losses . .
5. Add lines 2 through 4 . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Subtract line 5 from line 1 . . . . . . . . . . . . . . . . . . . . . .

7. Qualified production activities income from passthrough entities (see federal instruction ) . . . . . . . . . .

8. Qualified production activities income. Add lines 6 and
7. If zero or less, enter here, skip lines 9 though 15,
and enter 0 on line 16 . . . . . . . . . . . . . . . . . . . . . . . . .
9. Income limitation (see federal instruction ) . . . . . . . . .

10. Enter the smaller of line 8 or line 9. If zero or less,
enter 0 here, skip lines 11 through 15, and enter 0 on
line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11. Enter 3% of line 10 for tax years beginning on or before
December 31, 2006. Enter 6% for tax years beginning
January 1, 2007 thru December 31, 2009. Enter 9%
for tax years beginning after December 31, 2009. . . .
12. Form W-2 wages (see federal instruction ) . . . . . . . . .
13. Form W-2 wages from pass-through entities (see
federal instruction ) . . . . . . . . . . . . . . . . . . . . . . . . . . .
14. Add line 12 and 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15. Form W-2 wage limitation. Enter 50% of line 14 . . . .
16. Enter the smaller of line 11 or line 15 . . . . . . . . . . . . .

17. Domestic production activities deduction from
cooperatives. Enter deduction from Form 1099-PATR,
box 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18. New Jersey domestic production activities deduction.
Combine lines 16 and 17 from column C and enter the
result on on Form CBT-100, Schedule A-5, line 2 or
CBT-100S, Schedule A, line 37(e) . . . . . . . . . . . . . . . .

NJ Corporation Number

(B)
Disallowed Activities

(C)
New Jersey Amount

FORM 501-A
(11-18, R-4)
INSTRUCTIONS
This form can only be used for tax years beginning before January 1, 2018. For tax years
beginning on and after January 1, 2018, IRC section 199 was repealed and the deduction is
no longer allowed for New Jersey corporation business tax purposes. Do not use this form for
tax years beginning on and after January 1, 2018.
1. Enter in Column A the Domestic Production Activities as reported on the federal return.

2. Enter in Column B all activities reported in column A that do not pertain to the taxpaying
entity filing this return and ALL activities related to the growth, production, extraction,
engineering and other services regardless of which entity qualified for federal purposes.
3. Subtract Column B from Column A and enter the sum in Column C.
4. Carry Column C, line 18 to Form CBT-100, Schedule A-5, line 2 or Form CBT-100S,
Schedule A, line 37(e).