312: Effluent Equipment Tax Credit (2025)

New Jersey · NJ Division of Taxation · Used for tax years 2025

Form 312 calculates the New Jersey Corporation Business Tax Effluent Equipment Tax Credit. It reports equipment costs, use in New Jersey, credits used or shared in prior years, and the credit allowed for the current tax period.

Who files this form

Complete Form 312 if you are claiming an Effluent Equipment Tax Credit on Form CBT-100, CBT-100S, or CBT-100U. You must also 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.

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

  • Was the equipment purchased in a tax period beginning on or after July 1, 2002?
  • Have you applied for or received a determination of environmentally beneficial operation from the Commissioner of the Department of Environmental Protection for the equipment?
  • Is the equipment used exclusively in New Jersey?

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

What you'll need

Include these with your Corporation Business Tax return:

  • A completed Form 312.
  • A copy of each determination of environmentally beneficial operation, if you have received it.
  • An affidavit stating that the treatment or conveyance equipment is or will be used exclusively in New Jersey.

Have the following information available to complete the form:

  • Your name as shown on the return, federal ID number, and unitary ID number, if applicable.
  • Each piece of equipment's description, month and year placed in service, and invoice cost.
  • Applicable Department of Environmental Protection loan amounts and Sales and Use Tax paid.
  • The number of months the equipment was used in New Jersey during the return period.
  • Credit used in prior years, including amounts shared with other combined group members.
  • Tax liability, required minimum tax, and other credits already applied to the current return.

If Part II needs more space, attach an additional sheet in the same format as columns (A) through (I). Combined return members not sharing their credit also need the group and member allocation factors from Schedule J, line 9.

How to file

Include completed Form 312 with your CBT-100, CBT-100S, or CBT-100U return to validate the claim.

  1. Answer the qualification questions in Part I. If any answer is No, stop. You do not qualify for the credit.
  2. Enter the equipment information in Part II and calculate the available credit in Part III.
  3. If filing CBT-100 or CBT-100S, complete Part IV. Report the allowable credit from line 16 on Schedule A-3, Part I of your 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, report line 24 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 not-sharing oval and complete Part V, Section B. Report line 32 in the member's column of Schedule A-3, Part I of CBT-100U.

Common mistakes

  • Continuing after a No answer in Part I. Any No answer means you do not qualify.
  • Leaving out the credit form in the year the credit was earned. Include it even if you are not claiming the credit that year.
  • Using the same equipment costs for another credit. Costs included in this credit calculation cannot also be used to calculate another credit against the tax specified in the instructions.
  • Completing 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.
  • Leaving out prior shared credits. Combined return filers must include amounts shared in prior years in Part II, column (I).
  • Omitting other credits already applied. List those credits on line 14, 22, or 30, as applicable, so the allowable credit is calculated correctly.
  • Applying the credit against the Corporate Transit Fee. This is not allowed.

Questions people ask

How is the available credit calculated?

Part II subtracts applicable Department of Environmental Protection loans and Sales and Use Tax paid from the equipment's invoice cost. It then takes 50% of that amount and prorates it by months used in New Jersey divided by 12. Part III sets the available credit at the lesser of the total prorated credit minus prior credits used or shared, or 20% of the total prorated credit. Parts IV or V apply further limits.

Can I claim unused credits in a later year?

Yes. Unused credits may be claimed in subsequent tax years, subject to the limitations on the form.

Must a combined return member share its credit?

No. Members may choose not to share. A member making that choice must fill in the not-sharing oval and complete both Sections A and B of Part V.

Can the credit reduce my tax below the minimum tax?

No. The form limits the allowable credit based on tax liability and the applicable minimum tax. For a combined return member not sharing its credit, Section B cannot reduce the member's tax liability below $2,000.

Official sources

All versions of 312