320: Grow New Jersey Assistance Tax Credit (2024)

New Jersey · NJ Division of Taxation · Used for tax years 2024

Form 320 calculates the Grow New Jersey Assistance Tax Credit against New Jersey Corporation Business Tax for 2024. It reports the available credit, the amount allowed for the current tax period, and unused credit carried forward, with separate calculations for combined return fi

Who files this form

Complete Form 320 if you claim the Grow New Jersey Assistance Tax Credit against New Jersey Corporation Business Tax. You must also include the appropriate credit form for the year the credit was earned, even if you are not claiming it on that year’s return.

The credit is available to businesses that create or retain New Jersey jobs and make a qualified capital investment at a qualified business facility in a qualified incentive area. Investment and employment requirements vary by area and industry.

  • To qualify, you must have written approval from the New Jersey Economic Development Authority and a tax credit certificate issued by the New Jersey Division of Taxation.
  • Taxpayers that purchased the credit through the Economic Development Authority tax benefit transfer program may also use this form, subject to the applicable transfer rules.
  • For a combined return, the member that earned or purchased the credit must complete Form 320.
  • Partnerships cannot claim the credit directly. The credit is allocated to partners as described in the form’s instructions.

What you'll need

Have these documents and details ready:

  • Written approval from the New Jersey Economic Development Authority and your Division of Taxation tax credit certificate. Transferees are instructed to answer “YES” to both qualification questions.
  • Your name as shown on the return, federal ID number, and unitary ID number, if applicable.
  • Your CBT-100, CBT-100S, or CBT-100U return and the tax liability figures requested on Form 320.
  • The approved credit amount for the current period, any prior-year credit carryforward, and other credits already applied to your tax liability.
  • For combined return members not sharing the credit, the group’s and member’s allocation factors from Schedule J, line 9.

You must mail copies of the tax credit certificate and completed Form 320 to the Division of Taxation.

How to file

  1. Complete Part I. If either qualification answer is “NO,” stop. You are not eligible for this credit. Transferees answer “YES” to both questions.
  2. In Part II, enter the approved current-period credit from your certificate and add any prior-year carryforward.
  3. If you file CBT-100 or CBT-100S, complete Part III. Enter the allowable credit on Schedule A-3, Part I of your return.
  4. If you file CBT-100U, mark the combined-return indicator and complete Part IV, Section A instead of Part III. If you are not sharing the credit, fill in the non-sharing oval, skip line 15, and also complete Section B. Report the allowable credit in the member’s column of Schedule A-3, Part I.
  5. Include the completed Form 320 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 320 to:

New Jersey Division of Taxation

CBT Refunds/Tax Credits

PO Box 259

Trenton, NJ 08695-0259

Check the box in Part I to indicate that a copy of the certificate has been submitted to the Division of Taxation.

Common mistakes

  • Not mailing the required copies. Failure to mail the certificate and completed Form 320 can delay or result in denial of the credit.
  • Continuing after a “NO” answer in Part I. Both qualification answers must be “YES.”
  • Using the wrong calculation section. Combined return filers must use Part IV, not Part III. Members not sharing the credit must complete both Sections A and B.
  • Leaving out other credits already applied. List those credits on line 7, 12, or 17, as applicable, so the allowable credit is calculated correctly.
  • Omitting the credit form because no credit is being claimed. The appropriate credit form must still be included for the year the credit was earned.

Questions people ask

How much tax can this credit cover?

The credit can be applied to 100% of tax liability. Form 320 calculates the allowable amount after accounting for other credits already applied.

Can I carry forward unused credit?

An original recipient or credit purchaser may carry forward unused credit for 20 years from the tax period for which the certificate was issued, regardless of when the credit is first claimed. Unused credit cannot be carried into a period in which the taxpayer was a target corporation in a corporate acquisition or was a party to a merger or consolidation.

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 Part IV, Sections A and B. Its credit remains subject to the limits calculated in those sections.

Can unused credits be sold to another business?

Yes. A business may apply to the Division of Taxation for a tax credit transfer certificate. Credits must be sold for at least 75% of their value, and the purchaser is subject to the same limitations and conditions as the seller.

Official sources

All versions of 320