317: Sheltered Workshop Tax Credit (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
Form 317 calculates the Sheltered Workshop Tax Credit for the 2024 New Jersey Corporation Business Tax. It reports qualified employees’ wages, the available and allowable credit, and any credit carried forward to a following year.
Who files this form
Complete Form 317 if you are claiming a New Jersey Sheltered Workshop Tax Credit or a carryforward of this credit. Taxpayers must also 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.
For a combined return, the member that earned the credit must complete the form.
To claim a credit for an employee, the employee must be a qualified person and must have worked at least 25 hours per week for at least 26 weeks during the tax year at or under the supervision of a sheltered workshop.
What you'll need
Have the following information ready:
- Your name as shown on the return, federal ID number, and unitary ID number, if applicable.
- Each qualified employee's Social Security number, name, and total wages.
- Information needed to confirm each employee's qualified-person status and required weeks and hours of work.
- Any Sheltered Workshop Tax Credit carried forward from the prior year.
- Tax liability and other credits already applied on your CBT-100, CBT-100S, or CBT-100U 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 members not sharing the credit, the group and member allocation factors from Schedule J, line 9.
Include an additional schedule if you need more employee entries than Part II provides.
How to file
Include completed Form 317 with your CBT-100, CBT-100S, or CBT-100U return to validate the claim.
- Complete Part I to confirm eligibility. If the entire credit claimed is a carryforward from a previous year, complete only the applicable lines in Parts II through IV.
- In Part II, enter each qualified employee's information. Calculate 20% of wages, limited to $1,000 per person, and add any prior-year carryforward.
- CBT-100 and CBT-100S filers complete Part III and report the allowable credit on Schedule A-3, Part I.
- CBT-100U filers check the combined return filers box and complete Part IV, Section A, instead of Part III. Members sharing the credit report line 26 in the member's column of Schedule A-3, Part I, and complete line 27.
- Members not sharing the credit fill in the non-sharing oval, skip line 27, and also complete Section B. Report line 35 in the member's column of Schedule A-3, Part I, of CBT-100U.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Continuing after a “NO” in Part I. If either qualification answer is “NO,” stop. The taxpayer does not qualify for the credit.
- Completing unnecessary sections for a carryforward-only claim. If the full credit claimed comes from a prior year, complete only the applicable lines in Parts II through IV.
- Using Part III for a combined return. Combined return filers must use Part IV instead.
- Skipping Section A when not sharing a credit. All combined return filers must complete Section A. Members not sharing must also complete Section B and fill in the non-sharing oval.
- Leaving out credits already used. List credits already applied to the relevant tax liability on line 15, 24, or 33 so the maximum allowable credit is calculated accurately.
- Omitting the credit form in the year the credit was earned. Include the appropriate credit form even if you are not claiming the credit on that year's return.
Questions people ask
How much is the credit?
The credit is generally 20% of salary and wages paid during the tax year for each qualified person, up to $1,000 per person. The amount you can use is subject to tax-liability limits calculated in Part III or Part IV.
Who is a qualified person?
A qualified person is an extended employee as defined in the cited New Jersey law who has received a special license from the Commissioner of the Department of Labor and Workforce Development authorizing employment below the minimum wage rate. The employee must also work at least 25 hours per week for at least 26 weeks during the tax year at or under the supervision of a sheltered workshop, under a contract between the taxpayer and the workshop.
Can unused credit be carried forward?
Yes. Credit that cannot be applied because of the applicable limits may be carried forward to the seven tax years following the tax year for which it was allowed.
Must a combined return member share its credit?
No. A member may choose not to share. It must fill in the non-sharing oval and complete both Sections A and B of Part IV. Its allowable credit remains subject to both the member and group limits.