302: Redevelopment Authority Project Tax Credit (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
New Jersey Form 302 calculates the Redevelopment Authority Project Tax Credit against Corporation Business Tax. It records taxpayer and employee qualifications and calculates the available and allowable credit, including for combined return filers.
Who files this form
Complete Form 302 if you are claiming the Redevelopment Authority Project Tax Credit. The credit is available only to a corporation actively conducting business within a qualifying project financed by, or carried out under an agreement with, the Redevelopment Authority.
The preliminary qualifications include:
- The business is primarily manufacturing or another business that is not retail sales or warehousing oriented.
- The employee was hired during the tax year for which the credit is claimed and on or after the project's closing date.
- The employee 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 relied on public assistance as their primary income source.
For a combined return, the member that earned the credit must complete the form. 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.
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 qualifying project is located.
- Each qualifying employee's Social Security number, name, municipality of residence, and employment dates.
- Tax liability and other credits already used on the current CBT-100, CBT-100S, or CBT-100U return.
- The prior year's Form 302 for the prior allowable credit amount and, if claiming a carryforward, the employee information reported in Part II.
CBT-100 and CBT-100S filers need the information used to determine their required minimum tax. Combined return members not sharing the credit also need the group and member allocation factors from Schedule J, line 9.
Include an additional sheet if the employee schedule needs more space.
How to file
Include a completed Form 302 with your CBT-100, CBT-100S, or CBT-100U return to validate the credit claim. The supplied text does not give a filing address or mail or e-file directions.
- Complete Parts I and II to determine eligibility and list qualifying employees.
- Calculate the available credit in Part III.
- CBT-100 and CBT-100S filers complete Part IV and report the allowable credit on Schedule A-3, Part I.
- CBT-100U filers complete Part V, Section A, instead of Part IV. If sharing the credit, report line 24 in the member's column of Schedule A-3, Part I.
- Combined return members not sharing the credit must also complete Part V, Section B, and report line 30 in the member's column of Schedule A-3, Part I.
All combined return filers must check the combined return filers box. Members not sharing the credit must also fill in the nonsharing oval.
Common mistakes
- Continuing after failing Part I. If any yes-or-no answer in Part I is “No,” stop. The taxpayer does not qualify.
- Claiming $1,500 without meeting both Part II tests. Both questions 7 and 8 must be answered “Yes.”
- Leaving out Form 302. A completed form must accompany the return to validate the claim. The credit form must also be included in the year earned, even if no credit is claimed that year.
- Using the wrong calculation section. Combined return filers must use Part V, not Part IV. Nonsharing members must complete both Sections A and B.
- Omitting credits already applied. List those credits on line 16, 22, or 28, as applicable, so the allowable credit is calculated accurately.
- Applying this credit against the Corporate Transit Fee. The instructions expressly prohibit this.
Questions people ask
How much is the credit per qualifying employee?
The credit is $1,500 per qualifying employee. Part III multiplies the qualifying employee count by $1,500 and subtracts the allowable credit amount from the prior year's form to calculate the total credit available.
When can the credit be used?
The credit is allowed in the tax year following the year of qualification. It may continue into a second tax year if qualification continues. Any credit remaining after the second tax year following qualification is forfeited.
Can the credit reduce my tax below the minimum tax?
No. The credit, together with other credits taken, cannot reduce liability below the applicable statutory minimum. For a combined return member not sharing the credit, the Section B calculation cannot reduce liability below $2,000 and is also limited by the amount allowed against the group's liability.
Must a combined return member share the credit?
No. Members may choose not to share. A nonsharing member must complete Part V, Sections A and B, and fill in the oval at the top of the form.
Where can I get information about qualifying projects?
Contact the New Jersey Redevelopment Authority at PO Box 790, Trenton, NJ 08625-0790, or call (609) 292-3739. This address is provided for project information, not as a tax-return filing address.