304: New Jobs Investment Tax Credit (2024)

Who files this form

Form 304 is for Corporation Business Tax taxpayers earning the New Jobs Investment Tax Credit for investment in new or expanded New Jersey business facilities. Include the form with your return for the year the credit was earned, even if you are not claiming the credit on that return.

To qualify, you must answer “Yes” to all three questions in Part I:

• The investment created at least 5 eligible new jobs for a small or mid-sized business, or 50 for other taxpayers, with median annual compensation of at least $57,950 for tax years beginning in 2024.
• The average book value of all your New Jersey real and tangible personal property increased over the prior tax year.
• Your average New Jersey employment in the first tax year of the credit exceeded the prior tax year’s average.

For tax years beginning in 2024, a small or mid-sized business must have annual payroll of $8,660,800 or less and annual gross receipts of $17,322,050 or less.

For a combined return, the member that earned the credit must complete Form 304.

What you'll need

Have these records and return information available to complete the form:

• Investment records: each qualified property’s identity, actual or reasonably determined cost, straight-line depreciation life, month and tax year placed in service, credit taken, and date disposed of or otherwise no longer qualified.
• Property and employment records: current and prior-year average New Jersey property book values and employment, plus new employees’ annual compensation and eligibility information.
• Payroll information: total New Jersey employee compensation and compensation attributable to the qualified investments.
• Earlier Forms 304: line 8 amounts for investments made in the four prior tax years, as applicable.
• Tax return information: Corporation Business Tax liability, required minimum tax, and other credits already applied. Combined return filers also need the applicable group and member information.
• Property tax and rent records: amounts needed to calculate any refund.

Part V requires certification and the signature and date of a duly authorized officer.

How to file

Include a completed Form 304 with your CBT-100, CBT-100S, or CBT-100U return to validate the claim.

1. Complete Part I. If any answer is “No,” stop. You do not qualify for this credit.
2. Complete Part II using only New Jersey factors to calculate the annual credit.
3. CBT-100 and CBT-100S filers: complete Part III. Report the allowable credit on Schedule A-3, Part I, and any refund request on Schedule A-3, Part II.
4. CBT-100U filers: skip Part III and complete Part IV, Section A. Check the combined return filers box. If not sharing the credit, also fill in the non-sharing oval, skip lines 39–42, and complete Section B. Report the credit and refund request in the member’s column of the applicable parts of Schedule A-3.
5. Complete Part V for each tax year during the five-year credit period.

Common mistakes

• Continuing after a “No” answer in Part I. The form says to stop because the taxpayer does not qualify.
• Using non-New Jersey amounts in Part II. All items in that part apply only to New Jersey factors.
• Completing the wrong credit-limit section. Combined return filers must skip Part III and use Part IV. Members not sharing their credit must still complete Section A before Section B.
• Leaving out Form 304 because no credit is being claimed. The instructions require the credit form for the year the credit was earned, even if it is not claimed on the return.
• Carrying unused credit forward. There is no carryforward provision for this credit.
• Ignoring an inability to certify Part V. If you cannot make the required certifications, you must file amended returns correcting the new jobs factors and qualified investments for all affected tax years.

Questions people ask

Is the credit taken all at once?

No. It is taken in five equal annual installments. The annual credit cannot exceed 50% of the Corporation Business Tax liability attributable to the qualified investment or reduce tax below the required statutory minimum.

Can unused credit be refunded?

Yes, subject to limits. The refund cannot exceed 50% of the property taxes and implicit property taxes paid through rent or lease payments that are attributable to the qualified investment. Any credit remaining after the limits are applied is forfeited, with no carryforward.

Do temporary or part-time employees count as new employees?

Temporary and seasonal employees do not count. Part-time employees may qualify if they customarily work at least 20 hours per week for at least six months during the tax year and meet the other new-employee requirements. Their hours are combined to determine full-time equivalent jobs.

Must a combined-group member share its credit?

No. A member may choose not to share. It must mark the non-sharing oval and complete both Sections A and B of Part IV.

Official sources

• https://www.nj.gov/treasury/taxation/pdf/cbt/2024/304.pdf