304: New Jobs Investment Tax Credit (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Form 304 calculates the 2025 New Jersey Corporation Business Tax New Jobs Investment Tax Credit for qualified investments in new or expanded business facilities. It reports qualified investments, New Jersey employment, the allowable credit, and any refund request, with separate c
Who files this form
Form 304 is for Corporation Business Tax taxpayers claiming the New Jobs Investment Tax Credit for investment in new or expanded business facilities in New Jersey. Include the form in the year the credit was earned, even if you are not claiming the credit on your return.
To qualify, you must answer “Yes” to all three questions in Part I:
- The investment created at least 5 qualifying new jobs for a small or mid-sized business, or 50 for other taxpayers. For tax years beginning in 2025, the required median annual compensation is $59,200.
- The average book value of your New Jersey real and tangible personal property increased over the prior tax year.
- Your average New Jersey employment in the first credit year is greater than in the prior tax year.
For tax years beginning in 2025, a small or mid-sized business must have annual payroll of $8,854,850 or less and annual gross receipts of $17,710,150 or less.
For a combined return, the member that earned the credit must complete Form 304.
What you'll need
Have the following records and return information available:
- Records for each qualified property item showing its identity, cost, straight-line depreciation life, month and tax year placed in service, credit taken, and any date it was disposed of or stopped qualifying.
- New Jersey employment totals for the current and prior tax years, plus new employees’ annual compensation to determine eligible new jobs.
- Compensation paid to New Jersey employees whose positions are attributable to the qualified investment, and total New Jersey employee compensation.
- Prior Forms 304 for the preceding four tax years, if applicable, for the maximum annual credits reported on line 8.
- Your CBT-100, CBT-100S, or CBT-100U tax liability information and other credits already applied.
- New Jersey property tax and rent or lease payment amounts needed to calculate any refund.
Part V requires certification for each year of the five-year credit period and the signature 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. The supplied text does not specify a mailing address or an e-file procedure.
- Complete Part I to confirm eligibility, then calculate the credit in Part II.
- If filing CBT-100 or CBT-100S, complete Part III. Report the allowable credit on Schedule A-3, Part I, and any refund request on Schedule A-3, Part II.
- If filing CBT-100U, mark the combined-return indicator and complete Part IV, Section A instead of Part III. If you are not sharing the credit, also fill in the nonsharing oval and complete Section B. Report the applicable credit and refund amounts in the member’s column of Schedule A-3.
- Complete and sign the certification in Part V.
Common mistakes
- Continuing after a “No” in Part I. If any qualification answer is “No,” stop. You do not qualify for the credit.
- Using factors from outside New Jersey. All items in Part II pertain only to New Jersey factors.
- Leaving out Form 304 because no credit is being claimed. The appropriate credit form must still be included in the year the credit was earned.
- Completing the wrong section for a combined return. Combined return filers must skip Part III and complete Part IV, Section A. Nonsharing members must also complete Section B.
- Omitting other credits already used. List credits already applied to the relevant tax liability when calculating the maximum allowable credit.
- Carrying unused credit forward. This credit has no carryforward provision.
- Ignoring a certification problem. If you cannot make the Part V certifications, you must file amended returns correcting the new jobs factors and qualified investments for all affected tax years.
Questions people ask
Which employees count as new employees?
A new employee must be a New Jersey resident hired for a regular, permanent position created by the qualified investment. The employee must be unrelated to the taxpayer and must not have worked for the taxpayer during the six months before the investment was placed in service or use. Temporary and seasonal employees do not count. Qualifying part-time hours are combined into full-time equivalent jobs.
Is the credit taken all at once?
No. The credit is taken in five equal annual installments. The annual credit cannot exceed 50% of the Corporation Business Tax liability attributable to the qualified investment and cannot reduce liability 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 attributable to the qualified investment. Any credit remaining after the credit and refund limits is forfeited. There is no carryforward.
Can this credit offset the Corporate Transit Fee?
No. The credit cannot be used against the Corporate Transit Fee.
Must a combined-group member 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.