321: Angel Investor Tax Credit (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
Form 321 calculates the Angel Investor Tax Credit for the 2024 New Jersey Corporation Business Tax. It reports the available credit, the amount allowed for the current year, and any unused credit to be refunded or carried forward.
Who files this form
Complete Form 321 if you claim the New Jersey Angel Investor Tax Credit. The credit applies to qualified investments in a New Jersey-based emerging technology business, a New Jersey technology business holding company, or a qualified venture fund, subject to statutory restrictions and limits.
You must have both an approval letter from the New Jersey Economic Development Authority and a tax credit certificate from the New Jersey Division of Taxation to qualify.
For a combined return, the member that earned the credit must complete the form. Taxpayers must 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.
What you'll need
Have these documents and figures ready:
- Your New Jersey Economic Development Authority approval letter.
- Your tax credit certificate issued by the New Jersey Division of Taxation, including the approved credit amount for the current tax year.
- Your CBT-100, CBT-100S, or CBT-100U return and the tax liability figures needed for the calculation.
- Any Angel Investor Tax Credit carried forward from the prior year.
- Details of other tax credits already applied to the current year's tax liability.
- For combined return members not sharing the credit, the group and member allocation factors from Schedule J, line 9.
You must also provide copies of the tax credit certificate and completed Form 321 by mail.
How to file
- Complete Part I. If either qualification answer is “NO,” stop. You are not eligible for the credit.
- Complete Part II using the approved credit on your certificate and any prior-year carryforward.
- If filing CBT-100 or CBT-100S, complete Part III. If filing CBT-100U, complete Part IV, Section A instead. Members not sharing the credit must also complete Section B and fill in the not-sharing oval at the top of the form.
- Enter the allowable credit and any refund amount on Schedule A-3 as directed on Form 321.
- Include the completed Form 321 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 321 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
- Continuing when you do not qualify. If either answer in Part I is “NO,” do not complete the rest of the form.
- Skipping the mailed copies. Failure to mail the certificate and completed Form 321 can delay or cause denial of the credit.
- Leaving out the credit form in the year earned. Include the appropriate credit form even if you are not claiming the credit that year.
- 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.
- Omitting other credits already used. List credits already applied to tax liability on line 7, 14, or 21, as applicable, so the allowable credit is calculated correctly.
- Claiming overlapping Research and Development Tax Credit expenses. That credit is not allowed for expenses paid from funds for which an Angel Investor Tax Credit is allowed, or that are included in calculating this credit.
Questions people ask
Can unused credit be refunded or carried forward?
Yes. Unused Angel Investor Tax Credit can be refunded or carried forward for 15 years.
Can a merger or acquisition affect my carryforward?
Yes. You cannot carry unused credit forward to a tax year in which you were the target corporation in a corporate acquisition or were a party to a merger or consolidation.
Must a combined return member share its credit?
No. Members may choose not to share. A member making that choice must fill in the not-sharing oval and complete Part IV, Sections A and B.
Is including Form 321 with my return enough?
No. You must also mail a copy of the tax credit certificate and a copy of the completed Form 321 to the Division of Taxation at the address listed above. Missing this mailing can delay or cause denial of the credit.