301: Urban Enterprise Zone Investment Tax Credit and Credit Carry Forward (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
New Jersey Form 301 calculates the Urban Enterprise Zone Investment Tax Credit for Corporation Business Tax. It reports the approved investment, available credit, credit allowed for the current tax period, and unused credit carried forward.
Who files this form
Complete Form 301 if you are a certified “qualified business” claiming the New Jersey Urban Enterprise Zone Investment Tax Credit or a credit carryforward. The form also must be included for the year the credit was earned, even if you are not claiming the credit on that year's 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.
- Meet the employee requirement. Part I asks whether the business has 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 instructions state that the credit is available only to employers with fewer than 50 employees. The minimum investment is $5,000 for businesses 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:
- Your name as shown on the return, federal ID number, and unitary ID number, if applicable.
- Your Urban Enterprise Zone permit number and qualification information.
- The approved investment amount and any credit carried forward from the prior year.
- Your CBT-100, CBT-100S, or CBT-100U return information, including tax liability and other credits already applied.
- For CBT-100 or CBT-100S filers, the information needed to determine minimum tax, including New Jersey gross receipts and applicable group payroll information.
- For combined-return members not sharing the credit, the group and member allocation factors from Schedule J, line 9.
Retain proof of investment and make it available for review if requested. The instructions say this proof is not required to claim the credit.
How to file
Include the completed Form 301 with your CBT-100, CBT-100S, or CBT-100U return to validate the credit claim. The supplied text does not give a mailing address or e-filing directions for submitting Form 301.
- Complete Part I with your qualifications and zone permit number. If any qualification answer is “No,” stop. You do not qualify for the credit.
- Complete Part II to calculate the available credit.
- If filing CBT-100 or CBT-100S, complete Part III and report the allowable credit from line 17 on Schedule A-3, Part I.
- If filing CBT-100U, mark the combined-return indicator and complete Part IV, Section A instead of Part III. If sharing the credit, report line 26 in the member's column of Schedule A-3, Part I.
- If a combined-return member is not sharing the credit, fill in the non-sharing oval, skip line 27, and complete Section B. Report line 35 in the member's column of Schedule A-3, Part I.
Common mistakes
- Continuing after a “No” answer in Part I. The form says to stop because the taxpayer does not qualify.
- Leaving out the credit form. Include it in the year the credit was earned, even if you are not claiming the credit on that return.
- Completing the wrong calculation section. CBT-100 and CBT-100S filers use Part III. Combined return filers use Part IV, not Part III.
- Skipping Section A when not sharing a credit. All combined return filers must complete Section A. Non-sharing members must also complete Section B and fill in the non-sharing oval.
- Omitting other credits already applied. List them on line 15, 24, or 33, as applicable, so the maximum allowable credit is calculated correctly.
- Applying this credit against the Corporate Transit Fee. The instructions expressly prohibit this.
Questions people ask
How much is the investment tax credit?
Part II calculates the credit as 8% of the approved investment, then adds any credit carried forward from the prior year. Parts III and IV determine how much may be used for the current tax period.
Can unused credit be carried forward?
Yes. The future tax year must fall within the applicable 20-year period beginning with the zone's designation date or, if later, the 20-tax-year period beginning when the taxpayer first became subject to the Corporation Business Tax Act within the designation period.
Must a combined-return member share its credit?
No. A member may choose not to share. It must fill in the non-sharing oval and complete both Sections A and B of Part IV.
Where do I obtain qualified-business certification?
Certification must be obtained from the New Jersey Urban Enterprise Zone Authority, PO Box 822, Trenton, NJ 08625-0822. The printed phone number is (609) 292-1912.
Can the credit eliminate my Corporation Business Tax liability?
The credit is subject to limits. For CBT-100 and CBT-100S filers, this credit together with other credits cannot exceed 50% of total tax liability or reduce liability below the statutory minimum. Combined-return calculations also apply group limits and minimum-tax protections.