316: Business Retention and Relocation Tax Credit (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Form 316 is used to claim the Business Retention and Relocation Tax Credit against New Jersey Corporation Business Tax for 2025. It calculates the available credit, the amount allowed for the current tax period, and any unused credit carried forward, with separate calculations fo
Who files this form
Any taxpayer claiming the Business Retention and Relocation Tax Credit must complete Form 316. 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: whether the taxpayer has the specified project agreement with the New Jersey Commerce Commission and whether it has received a tax credit certificate from the New Jersey Division of Taxation.
For a combined return, the member that earned or purchased the credit must complete the form.
The appropriate credit form must also be included in the year the credit was earned or the certificate was issued, even if the taxpayer is not claiming the credit on that return.
What you'll need
- A completed Form 316 and the applicable CBT-100, CBT-100S, or CBT-100U return.
- The tax credit certificate issued by the New Jersey Division of Taxation. Mail a copy with a copy of the completed Form 316.
- The approved credit amount for the current period and any credit carried forward from the prior year.
- Tax liability figures from the applicable return and amounts of other credits already applied.
- For CBT-100 and CBT-100S filers, New Jersey gross receipts and any applicable group payroll information needed to determine minimum tax. S corporations filing with QSSS entities use the aggregate minimum tax from Schedule Q, Part I, line 1.
- For combined-return members not sharing the credit, the group and member allocation factors from Schedule J, line 9.
How to file
- Complete Part I to establish eligibility, then Part II to calculate the available credit.
- CBT-100 and CBT-100S filers complete Part III. CBT-100U filers complete Part IV, Section A instead. Members not sharing their credit must also complete Section B and fill in the nonsharing oval. All combined return filers must check the combined return filers box.
- Report the allowable credit on Schedule A-3, Part I of the applicable return. For a combined return, use the member’s column.
- Include the completed Form 316 with the CBT-100, CBT-100S, or CBT-100U return.
- Mail a copy of the tax credit certificate and a copy of the completed Form 316 to:
New Jersey Division of Taxation
Grant and Credit Review Unit
PO Box 272
Trenton, NJ 08695-0272
Check the certificate-submission box on Form 316 to indicate that a copy has been submitted.
Common mistakes
- Continuing after a “NO” in Part I. If either qualification answer is “NO,” stop. The form says the taxpayer does not qualify.
- Skipping the mailed documentation. Failure to mail the certificate copy and completed Form 316 copy can delay or cause denial of the credit.
- Using the wrong calculation section. Combined return filers must skip Part III and complete Part IV. Nonsharing members still must complete Section A before Section B.
- Leaving out other credits already applied. List them on line 9, 16, or 23, as applicable, to calculate the allowable credit accurately.
- Omitting the credit form because no credit is being claimed. Include the appropriate form in the year the credit was earned or the certificate was issued.
- Applying this credit to the Corporate Transit Fee. The credit cannot be used against that fee.
Questions people ask
Must a combined-return member share its credit?
No. A member may choose not to share. It must fill in the nonsharing oval and complete both Sections A and B of Part IV.
Can unused credit be carried forward?
Yes. An original recipient may carry unused credit forward during the project’s specified commitment duration. A credit purchaser may carry unused credit forward for three succeeding tax periods after the tax 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 allowable credit is also subject to the form’s tax liability and minimum-tax limits.
Must I amend the return for the period for which the credit was issued?
Not necessarily. The certificate holder or purchaser may first use the credit against liabilities for the period in which it was issued or a succeeding period without amending the return for the period for which it was issued, subject to the applicable credit-use limits.