316: Business Retention and Relocation Tax Credit (2024)

Who files this form

Complete Form 316 if you are claiming the Business Retention and Relocation Tax Credit against New Jersey Corporation Business Tax. Taxpayers who purchased the credit through the Economic Development Authority tax benefit transfer program may also use this form, subject to the applicable transfer rules and limits.

Part I requires “YES” answers to both qualification questions:

• Have you entered into an agreement with the New Jersey Commerce Commission to undertake a project to relocate and retain full-time jobs within New Jersey?
• Have you received a tax credit certificate issued by the New Jersey Division of Taxation?

If either answer is “NO,” the form says you do not qualify and should not complete the rest of the form.

For a combined return, the member that earned or purchased the credit must complete Form 316. Taxpayers must include the appropriate credit form for the year the credit was earned, even if they are not claiming the credit on that year's return.

What you'll need

Have these documents and figures available:

• Your tax credit certificate issued by the New Jersey Division of Taxation, including the approved credit amount for the current period.
• Your completed Form 316 and the applicable CBT-100, CBT-100S, or CBT-100U return.
• Any Business Retention and Relocation Tax Credit carried forward from the prior year.
• The tax liability and other tax credits already applied on the current return.
• For CBT-100 and CBT-100S filers, New Jersey gross receipts and any applicable affiliated or controlled group payroll information needed to determine the minimum tax.
• For combined return filers, the relevant Schedule A figures. Members not sharing their credit also need the group and member allocation factors from Schedule J, line 9.

You must mail copies of both the tax credit certificate and completed Form 316 to the Division of Taxation.

How to file

1. Complete Part I to establish eligibility. Check the box indicating that a copy of the certificate has been submitted to the Division of Taxation.
2. Complete Part II by adding the approved current-period credit to any prior-year carryforward.
3. If filing CBT-100 or CBT-100S, complete Part III and enter the allowable credit on Schedule A-3, Part I of that return.
4. If filing CBT-100U, mark the combined-return indicator and complete Part IV, Section A instead of Part III. If not sharing the credit, also fill in the non-sharing oval and complete Section B. Report the allowable credit in the member's column of Schedule A-3, Part I of CBT-100U.
5. Include the completed Form 316 with your CBT-100, CBT-100S, or CBT-100U return.

Also mail a copy of the tax credit certificate and a copy of the completed Form 316 to:

New Jersey Division of Taxation

CBT Refunds/Tax Credits

PO Box 259

Trenton, NJ 08695-0259

Common mistakes

• Continuing after a “NO” in Part I. Both qualification answers must be “YES.”
• Not mailing the required copies. Failure to mail the certificate and completed Form 316 can delay or result in denial of the credit.
• Leaving out the credit form because no credit is being claimed. The appropriate credit form must still be included for the year the credit was earned.
• Using the wrong calculation section. Combined return filers must use Part IV, not Part III. Members not sharing must complete both Sections A and B and mark the non-sharing oval.
• Omitting other credits already used. List those credits on line 9, 16, or 23, as applicable, so the allowable credit is calculated correctly.
• Reducing tax below the required minimum. The credit is limited by the applicable statutory minimum tax. For a combined member not sharing its credit, Section B cannot reduce its tax liability below $2,000.

Questions people ask

Can a purchaser claim this credit?

Yes. Taxpayers who purchased the credit through the Economic Development Authority tax benefit transfer program may claim it on Form 316, subject to the applicable credit transfer rules and limits.

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 Part IV, Sections A and B.

Can unused credit be carried forward?

An original recipient may carry forward unused credit during the project's specified commitment duration. A purchaser may carry forward unused credit for three succeeding tax periods after the period for which the certificate was issued.

Is there a limit on how much credit can be taken in one tax period?

Yes. No more than the total credit amount divided by the tax credit term in years may be taken in any tax period. The form also limits the allowable credit based on tax liability, other credits, and the required minimum tax.

Do I need to amend the return for the period the credit was issued for?

The certificate holder or purchaser may first use the credit for the period in which it was issued or a succeeding tax period without amending the return for the period for which it was issued, subject to the stated credit-use limits.

Official sources

• https://www.nj.gov/treasury/taxation/pdf/cbt/2024/316.pdf