320: Grow New Jersey Assistance Tax Credit (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Form 320 is used to claim the Grow New Jersey Assistance Tax Credit against New Jersey Corporation Business Tax. It calculates the available credit, the amount allowed for the current tax period, and any unused credit carried forward, with separate calculations for combined retur
Who files this form
Complete Form 320 if you claim the Grow New Jersey Assistance 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.
The credit is available to qualifying businesses that create or retain jobs in New Jersey and make a qualified capital investment at a qualified business facility in a qualified incentive area.
For a combined return, the member that earned or purchased the credit must complete the form.
You must include the appropriate credit form in the year the credit was earned or the year the tax credit certificate was issued, even if you are not claiming the credit on that return.
What you'll need
- Written approval from the New Jersey Economic Development Authority and a tax credit certificate or credit transfer certificate issued by the New Jersey Division of Taxation. The instructions tell transferees to answer “YES” to both qualification questions.
- A copy of the tax credit certificate or credit transfer certificate, signed by all parties, and a copy of completed Form 320 for the required mailing.
- Your CBT-100, CBT-100S, or CBT-100U return, including the tax liability and other credits already applied.
- The approved credit amount for the current tax period and any credit carried forward from the prior year.
- For combined-return members not sharing the credit, the group’s and member’s allocation factors from Schedule J, line 9.
How to file
- Complete Part I. If either qualification answer is “NO,” stop. You are not eligible for the credit. Transferees answer “YES” to both questions.
- Complete Part II using the approved credit amount and prior-year carryforward.
- Complete Part III if filing CBT-100 or CBT-100S. Combined return filers complete Part IV, Section A instead. Members not sharing their credit must also complete Section B and fill in the nonsharing oval.
- Report the allowable credit on Schedule A-3, Part I of the applicable return, as directed on Form 320.
- Include completed Form 320 with your CBT-100, CBT-100S, or CBT-100U return.
You must also mail a copy of completed Form 320 and a copy of the tax credit certificate or credit transfer certificate, signed by all parties, to:
New Jersey Division of Taxation
Grant and Credit Review Unit
PO Box 272
Trenton, NJ 08695-0272
Check the box in Part I to indicate that a copy of the certificate has been submitted to the Division of Taxation.
Common mistakes
- Skipping the required mailing. Failure to mail the certificate documentation and completed Form 320 will delay or result in denial of the claimed credit.
- Continuing after a “NO” qualification answer. Both Part I answers must be “YES.”
- Using the wrong calculation section. Combined return filers must skip Part III and complete Part IV. All must complete Section A, even when not sharing the credit.
- Leaving out other credits already applied. List them on line 7, 12, or 17, as applicable, so the allowable credit is calculated accurately.
- Omitting the form because no credit is being claimed. The instructions require the appropriate credit form in the year the credit was earned or the certificate was issued.
- Applying the credit against the Corporate Transit Fee. This is not allowed.
Questions people ask
How much tax liability can this credit offset?
The credit can be applied to 100% of tax liability, subject to the allowable-credit calculations. It cannot be used against the Corporate Transit Fee.
Can unused credit be carried forward?
An original recipient or credit purchaser can 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 the target of a corporate acquisition or was a party to a merger or consolidation.
Must a combined-return member share its credit?
No. A member choosing not to share must complete Part IV, Sections A and B, and fill in the nonsharing oval at the top of the form.
Can a partnership claim the credit directly?
No. The credit is allocated to partners based on their share of the partnership’s total distributive income or gain, or the proportion allocated by a partnership agreement.