301: Urban Enterprise Zone Investment Tax Credit and Credit Carry Forward (2024)

New Jersey · NJ Division of Taxation · Used for tax years 2024

New Jersey Form 301 calculates the Urban Enterprise Zone Investment Tax Credit for Corporation Business Tax purposes. It reports the approved investment, credit carried forward from a prior year, allowable current-year credit, and credit carryforward to the following year.

Who files this form

A certified “qualified business” claiming the Urban Enterprise Zone Investment Tax Credit or a credit carryforward must complete Form 301. The appropriate credit form must also be included for the year the credit was earned, even if the taxpayer is not claiming the credit on that return.

To qualify, the business must:

  • Be certified by the New Jersey Urban Enterprise Zone Authority.
  • Have actively conducted a trade or business in the zone for at least one year before the zone was designated.
  • Employ fewer than 50 full-time, permanent employees.
  • Make the investment under an agreement with the qualifying municipality’s governing body that was approved by the Authority.

The minimum investment is $5,000 for a business with 10 or fewer employees, plus $500 for each additional employee.

For a combined return, the member that earned the credit must complete the form.

What you'll need

Have these details and records available to complete Form 301:

  • The name shown on the return, federal ID number, and unitary ID number, if applicable.
  • Your Urban Enterprise Zone permit number and certification information.
  • The approved investment amount and information about the approved municipal agreement.
  • Any Urban Enterprise Zone Investment Tax Credit carried forward from the prior year.
  • Your CBT-100, CBT-100S, or CBT-100U tax liability figures and other credits already applied.
  • For CBT-100 and CBT-100S filers, New Jersey gross receipts and any group payroll information needed to determine the minimum tax.
  • For combined-return members not sharing the credit, the group and member allocation factors from Schedule J, line 9.

Keep proof of investment for review if requested. The instructions say this proof is not required to claim the credit.

How to file

Include a completed Form 301 with your CBT-100, CBT-100S, or CBT-100U return to validate the claim. The supplied text does not provide mailing or e-filing directions for submitting Form 301.

  1. Complete Part I, including your zone permit number. If any qualification answer is “No,” stop. You do not qualify for the credit.
  2. Complete Part II. Calculate 8% of the approved investment and add any prior-year credit carryforward.
  3. If filing CBT-100 or CBT-100S, complete Part III. Enter the allowable credit on Schedule A-3, Part I of that return.
  4. If filing CBT-100U, mark the combined-return box and complete Part IV, Section A instead of Part III. If sharing the credit, enter the allowable amount in the member’s column of Schedule A-3, Part I.
  5. If a combined-return member is not sharing the credit, also fill in the nonsharing oval and complete Part IV, Section B. Transfer the allowable credit from line 35 to the member’s column of Schedule A-3, Part I.

Common mistakes

  • Continuing after a “No” in Part I. The form says to stop because the taxpayer does not qualify.
  • Leaving out Form 301. A completed form must accompany the return to validate the claim. The appropriate credit form must also be included in the year the credit was earned, even if no credit is claimed that year.
  • Using Part III for a combined return. Combined-return filers must use Part IV instead.
  • Skipping Section A when not sharing. All combined-return filers must complete Part IV, Section A. Nonsharing members must also complete Section B and mark the nonsharing oval.
  • Omitting other credits already used. List them on line 15, 24, or 33, as applicable, so the maximum allowable credit is calculated accurately.
  • Not keeping investment proof. Retain it and make it available for review upon request.

Questions people ask

How much is the investment credit?

Part II calculates the credit as 8% of the approved investment, then adds any prior-year carryforward. The amount you can use for the current year is subject to the limits calculated in Part III or Part IV.

Can unused credit be carried forward?

Yes. The future tax year must fall within the stated 20-year period beginning with the zone’s designation date or, if later, a period of 20 tax years beginning when the taxpayer first becomes subject to the Corporation Business Tax Act during the designation period.

Does a combined-return member have to share its credit?

No. A member may choose not to share. It must mark the nonsharing oval and complete both Sections A and B of Part IV. Section B cannot reduce the member’s tax liability below $2,000, and the credit cannot exceed what would otherwise be allowed against the group’s tax liability.

Where do I obtain qualified-business certification?

Certification must be obtained from the New Jersey Urban Enterprise Zone Authority, in but not of the Department of Community Affairs. The listed address is PO Box 822, Trenton, NJ 08625-0822, and the phone number is (609) 292-1912.

Official sources

All versions of 301