317: Sheltered Workshop Tax Credit (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Form 317 calculates the Sheltered Workshop Tax Credit for the 2025 New Jersey Corporation Business Tax. It reports wages paid to qualified employees, the credit available and allowable for the current year, and any credit carried forward.
Who files this form
Complete Form 317 if you are claiming a New Jersey Sheltered Workshop Tax Credit, a credit carryforward, or both. 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.
For a new credit, each employee claimed must be a qualified person. The printed definition requires an extended employee with a special license from the Commissioner of the Department of Labor and Workforce Development authorizing employment below the minimum wage. The employee 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, under a contract between the taxpayer and the workshop.
For a combined return, the member that earned the credit must complete the form.
What you'll need
Have the following information available to complete Form 317:
- 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.
- Any Sheltered Workshop Tax Credit carried forward from the prior year.
- Tax liability and other credits already used on the current return.
- For CBT-100 or CBT-100S filers, the information needed to determine the required minimum tax, including New Jersey gross receipts and applicable group payroll information.
- For combined return filers, the group tax figures from CBT-100U and, if not sharing the credit, the group and member allocation factors from Schedule J, line 9.
Include an additional schedule if you need more space to list qualified employees. A completed Form 317 must be included with the CBT-100, CBT-100S, or CBT-100U return to validate the claim.
How to file
Include completed Form 317 with your CBT-100, CBT-100S, or CBT-100U return.
- Answer the qualification questions in Part I. If either answer is “NO,” stop: you do not qualify for the credit. If the entire claim is a prior-year carryforward, complete only the applicable lines in Parts II through IV.
- In Part II, list each qualified employee and calculate 20% of wages, limited to $1,000 per employee. Add any prior-year carryforward.
- CBT-100 and CBT-100S filers complete Part III. Enter the allowable credit from line 17 on Schedule A-3, Part I of the return.
- CBT-100U filers check the combined return filers box and complete Part IV, Section A, not Part III. If sharing the credit, enter line 26 in the member's column of Schedule A-3, Part I.
- Members not sharing the credit must also fill in the non-sharing oval and complete Section B. Enter line 35 in the member's column of Schedule A-3, Part I of CBT-100U.
The supplied text does not provide a mailing address or e-file directions.
Common mistakes
- Continuing after a “NO” in Part I: Both qualification answers must be “YES” for a new credit.
- Completing unnecessary lines for a carryforward-only claim: Complete only the applicable lines in Parts II through IV when the entire claim comes from a prior year.
- Using Part III for a combined return: Combined return filers must use Part IV. Section A is required even when the member is not sharing the credit.
- Leaving out other credits already applied: List these on line 15, 24, or 33, as applicable, so the allowable credit is calculated correctly.
- Omitting the credit form in the year earned: Include the appropriate form even if you are not claiming the credit that year.
- Applying the credit against the Corporate Transit Fee: The credit cannot be used against that fee.
Questions people ask
How much is the credit per employee?
The credit is 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 the form's tax-liability limits.
Can unused credit be carried forward?
Yes. Credit that cannot be used because of the applicable limits can be carried forward to the seven tax years following the tax year for which it was allowed.
Must a combined group 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.
Can the credit eliminate all Corporation Business Tax liability?
No. The form applies a 50% tax-liability limit and protects the applicable statutory minimum tax. A combined group member not sharing its credit also cannot reduce its share of tax liability below $2,000, and its credit remains subject to the group-level limit.