302: Redevelopment Authority Project Tax Credit (2024)

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

New Jersey Form 302 calculates the Redevelopment Authority Project Tax Credit for Corporation Business Tax. It records taxpayer and employee qualifications, lists employees qualifying for the $1,500 credit, and calculates the available and allowable credit amounts.

Who files this form

Complete Form 302 if you are claiming the Redevelopment Authority Project Tax Credit. Include the appropriate credit form in the year the credit was earned, even if you are not claiming the credit on that year's return.

The credit is available only to a corporation actively conducting business at a qualifying project location financed by, or carried out under an agreement with, the Redevelopment Authority.

The preliminary qualifications include:

  • The business must primarily be a manufacturing concern or another business that is not retail sales or warehousing oriented.
  • The new employee must have been hired during the tax year for which the credit is claimed and on or after the development project's closing date.
  • The employee must have worked for at least six continuous months during the first tax year of employment, or across that year and the following tax year.

For the $1,500 credit, the employee must also have lived in the qualified municipality where the project is located. Immediately before being hired, the employee must have been unemployed for at least 90 days or depended on public assistance as their primary income source.

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

What you'll need

Have the following information available to complete Form 302:

  • The taxpayer's name as shown on the return, Federal ID Number, and Unitary ID Number, if applicable.
  • The municipality where the project and business are located.
  • Each qualifying employee's Social Security number, name, municipality of residence, and employment dates. Attach an additional sheet if you need more space.
  • The prior year's Form 302 for the prior-year allowable credit amount and, if claiming a carryforward, the employee information previously reported in Part II.
  • The applicable CBT-100, CBT-100S, or CBT-100U return figures, including tax liability and other credits already applied.
  • New Jersey gross receipts information to determine the minimum tax for Part IV. Affiliated or controlled group payroll information may also affect that minimum.
  • For combined-return members not sharing the credit, the group and member allocation factors from Schedule J, line 9.

How to file

Include a completed Form 302 with your CBT-100, CBT-100S, or CBT-100U return to validate the claim. The text does not provide a mailing address or e-filing directions for submitting Form 302.

  1. Complete Parts I and II to check eligibility and list qualifying employees.
  2. Calculate the available credit in Part III.
  3. If filing CBT-100 or CBT-100S, complete Part IV and enter the allowable credit on Schedule A-3, Part I of that return.
  4. If filing CBT-100U, check the combined-return filers box and complete Part V, Section A instead of Part IV. 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 non-sharing oval and complete Part V, Section B. Enter the allowable amount from line 30 in the member's column of Schedule A-3, Part I.

Common mistakes

  • Continuing after a disqualifying answer. If any yes-or-no question in Part I is answered “NO,” stop. The taxpayer does not qualify. Both questions in Part II must be answered “YES” for the $1,500 credit.
  • Leaving out Form 302. A completed form must accompany the CBT return to validate the claim. The appropriate credit form must also be included in the year the credit was earned, even if the credit is not claimed that year.
  • Using the wrong calculation section. Combined-return filers must use Part V, not Part IV. Members not sharing their credit must complete both Sections A and B and fill in the non-sharing oval.
  • Omitting other credits already used. List credits already applied to the relevant tax liability on line 16, 22, or 28 so the allowable credit is calculated correctly.
  • Reducing tax below the required minimum. The credit is limited by the applicable statutory minimum tax. For non-sharing combined-return members, Section B cannot reduce tax below $2,000.
  • Keeping unused credit too long. Any credit remaining after the second tax year following the qualification year is forfeited.

Questions people ask

How much is the credit per qualifying employee?

The form provides a $1,500 credit per qualifying employee. Part III multiplies the number of qualifying employees by $1,500, then subtracts the allowable credit amount from the prior year's form to calculate the total credit available. The allowable amount is subject to the limits in Part IV or V.

When can the credit be used?

The credit is allowed in the tax year following the qualification year and may continue into a second tax year if the qualification continues. Any credit remaining after that second tax year is forfeited.

What employee information do I enter for a carryforward?

If claiming an amount carried forward from the previous tax year, complete Part II with the information reported on the prior year's Form 302.

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 V.

Where can I ask about qualifying projects?

Contact the New Jersey Redevelopment Authority at PO Box 790, Trenton, NJ 08625-0790, or call (609) 292-3739. This contact is provided for project information.

Official sources

All versions of 302