321: Angel Investor Tax Credit (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Form 321 is used to claim the Angel Investor Tax Credit on a 2025 New Jersey Corporation Business Tax return. It calculates 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.
- A tax credit certificate from the New Jersey Division of Taxation.
For a combined return, the member that earned the credit must complete the form. Taxpayers must include the appropriate credit form in 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 details ready:
- Your New Jersey Economic Development Authority approval letter.
- Your New Jersey Division of Taxation tax credit certificate, showing the approved credit amount for the current tax year.
- Your CBT-100, CBT-100S, or CBT-100U return and the applicable tax liability figures.
- 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.
- Your name as shown on the return, federal ID number, and unitary ID number, if applicable.
Combined return members not sharing the credit also need the group and member allocation factors from Schedule J, line 9.
You must mail copies of the tax credit certificate and completed Form 321 to the Division of Taxation.
How to file
- Complete Part I. If either qualification answer is “NO,” stop. You are not eligible for the credit.
- In Part II, enter the approved current-year credit from your certificate and any prior-year carryforward.
- If filing CBT-100 or CBT-100S, complete Part III. If filing CBT-100U, skip Part III and complete Part IV, Section A. Members not sharing their credit must also complete Section B and fill in the not-sharing oval.
- Enter the allowable credit and any refund amount on the applicable parts of 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 your tax credit certificate and completed Form 321 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
- Continuing when you do not qualify. If either Part I answer is “NO,” do not complete the rest of the form.
- Skipping the mailed documents. Failure to mail copies of the certificate and completed Form 321 can delay or result in denial of the credit.
- Leaving out the credit form because you are not claiming the credit yet. Include the appropriate credit form in the year the credit was earned.
- Using the wrong calculation section. Combined return filers must use Part IV, not Part III. All must complete Section A, even members not sharing their credit.
- Forgetting combined-return indicators. Check the combined return filers box. If not sharing the credit, also fill in the not-sharing oval and complete Section B.
- Omitting other credits already used. List credits already applied to the relevant tax liability on line 7, 14, or 21 so the allowable credit is calculated accurately.
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. However, you cannot carry unused credit into a tax year in which you were the target corporation in a corporate acquisition or were a party to a merger or consolidation.
Can this credit reduce the Corporate Transit Fee?
No. The credit cannot be used against the Corporate Transit Fee.
Must a combined return member share its credit with the group?
No. Members may choose not to share. A member making that choice must complete Part IV, Sections A and B, and fill in the not-sharing oval at the top of the form.
Can the same funds also support a Research and Development Tax Credit?
A Research and Development Tax Credit is not allowed for expenses paid from funds for which an Angel Investor Tax Credit is allowed, or that are included in calculating the allowed Angel Investor Tax Credit.