313: Economic Recovery Tax Credit (2025)

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

Form 313 calculates the Economic Recovery Tax Credit for the 2025 New Jersey Corporation Business Tax. It reports qualifying employee information, credits for new full-time positions, and the allowable credit and carryforward.

Who files this form

Form 313 is for taxpayers claiming the New Jersey Corporation Business Tax Economic Recovery Tax Credit for new full-time positions at a qualifying location in a qualified municipality.

The taxpayer must not be receiving a benefit under the New Jersey Urban Enterprise Zones Act. Qualifying positions must be new, permanent positions, not temporary or seasonal. The employee cannot be an owner of the business or that owner's spouse, dependent, ancestor, or descendant.

Include a completed Form 313 with Form CBT-100, CBT-100S, or CBT-100U 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 being claimed on that return.

For a combined return, the member that earned the credit must complete Form 313.

What you'll need

Have the following information available to complete Form 313:

  • The name shown on the return, federal ID number, and unitary ID number, if applicable.
  • The qualifying location's address and the date the new or expanded operations began there.
  • Each qualifying employee's Social Security number, name, and employment start and end dates. Include an additional sheet if more space is needed.
  • The number of new full-time positions for the applicable credit year and any credit carried forward from the prior year.
  • The applicable CBT-100, CBT-100S, or CBT-100U tax liability figures and information about other credits already applied.
  • For CBT-100 and CBT-100S filers, New Jersey gross receipts and any applicable group payroll information used to determine minimum tax. An S corporation filing with its QSSS entities uses the aggregate minimum tax from Schedule Q, Part I, line 1.
  • For combined-return members not sharing their credit, the group and member allocation factors from Schedule J, line 9.

How to file

Include the completed Form 313 with your CBT-100, CBT-100S, or CBT-100U return.

  1. Complete the qualification questions in Part I. If any answer to questions 1 through 4 is "YES," stop. The taxpayer does not qualify. Otherwise, complete lines 5 and 6.
  2. Enter qualifying employee information in Part II and calculate the credit in Part III.
  3. If filing CBT-100 or CBT-100S, complete Part IV. Enter the allowable credit from line 18 on Schedule A-3, Part I of the return.
  4. If filing CBT-100U, skip Part IV and complete Part V, Section A. Check the combined-return filers box at the top of the form.
  5. If sharing the credit, report line 27 in the member's column of Schedule A-3, Part I of CBT-100U, and complete line 28. If not sharing, fill in the non-sharing oval, skip line 28, and complete Section B. Report line 36 in the member's column of Schedule A-3, Part I.

Common mistakes

  • Continuing after a disqualifying answer. A "YES" to any of Part I's first four questions means the taxpayer does not qualify. Do not complete the rest of the form.
  • Using the wrong credit-year line. Complete line 7 only on the form filed for credit year one and line 8 only on the form filed for credit year two.
  • Using Part IV for a combined return. Combined-return filers must use Part V instead. Section A is required even when the member is not sharing the credit.
  • Missing the non-sharing steps. Members choosing not to share must fill in the oval at the top and complete Part V, Section B as well as Section A.
  • Leaving out credits already applied. List those credits on line 16, 25, or 34, as applicable, so the allowable credit is calculated correctly.
  • Omitting the credit form when no credit is claimed. Include the appropriate credit form in the year the credit was earned, even if it is not claimed on that return.
  • Applying the credit to the Corporate Transit Fee. The credit cannot be used against that fee.

Questions people ask

How much is the credit?

The credit is $2,500 for each new full-time position at the qualifying location in credit year one and $1,250 for each new full-time position there in credit year two. The allowable amount is subject to tax-liability limits.

What are credit year one and credit year two?

Credit year one is the first 12 calendar months following initial or expanded operations at a location within a qualified municipality. Credit year two is the following 12 calendar months. Credits for activity at a location are limited to a single continuous 24-month period.

What counts as a full-time position?

A full-time position is filled by an employee of the taxpayer for at least 140 hours per month on a permanent basis. Temporary and seasonal employment does not qualify. A new full-time position must not have existed before credit year one.

Can unused credit be carried forward?

Yes. Unused credit may be carried forward for use in the five privilege periods following the privilege period for which the credit is allowed.

Can the credit eliminate all Corporation Business Tax due?

No. This credit together with other tax credits is limited to 50% of the taxpayer's total tax liability and cannot reduce liability below the statutory minimum. Combined-return calculations also apply group limits, with additional member limits when the credit is not shared.

Official sources

All versions of 313