322: Wind Energy Facility Tax Credit (2024)

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

Form 322 is used to claim the Wind Energy Facility 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 return file

Who files this form

Complete Form 322 if you claim the New Jersey Corporation Business Tax Wind Energy Facility Tax Credit. Taxpayers must also include the appropriate credit form for the year the credit was earned, even if they are not claiming it on that year's return.

The credit is for qualified wind energy facilities in New Jersey. The instructions describe these investment requirements:

  • A business must have at least $50,000,000 in capital investments in a qualifying facility.
  • A tenant can qualify if at least $17,500,000 in capital investments were made in the leased area of the qualifying facilities.

New full-time employee requirements and restrictions involving other incentives also apply. Part I requires both a valid project agreement executed by the New Jersey Economic Development Authority and a tax credit certificate issued by the New Jersey Division of Taxation.

Taxpayers who purchased the credit through the Economic Development Authority tax benefit transfer program may also use this form, subject to the applicable transfer rules and limits.

For a combined return, the member that earned the credit must complete Form 322.

What you'll need

Have these documents and figures available:

  • Your valid project agreement executed by the New Jersey Economic Development Authority.
  • Your New Jersey Division of Taxation tax credit certificate, including the approved credit amount for the current tax year.
  • Your CBT-100, CBT-100S, or CBT-100U return and the tax liability figures requested on Form 322.
  • Any Wind Energy Facility Tax Credit carried forward from the prior year.
  • Details of other tax credits already applied to the tax liability.
  • For tenants, total lease payments for occupancy in the qualified facility during the tax year or privilege period.
  • For combined group members not sharing the credit, the group and member allocation factors from Schedule J, line 9.

You must include the completed Form 322 with your return. You must also mail copies of the completed form and tax credit certificate to the Division of Taxation.

How to file

  1. Complete Part I. If either qualification answer is “NO,” stop. The form says you are not eligible for the credit.
  2. In Part II, enter the approved current-year credit and any prior-year carryforward.
  3. CBT-100 and CBT-100S filers complete Part III. Report the allowable credit on Schedule A-3, Part I of the applicable return.
  4. Combined return filers check the combined return filers box, skip Part III, and complete Part IV, Section A. Members not sharing their credit must also fill in the nonsharing oval and complete Section B. Report the allowable credit in the member's column of Schedule A-3, Part I of CBT-100U.
  5. Include the completed Form 322 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 322 to:

New Jersey Division of Taxation

CBT Refunds/Tax Credits

PO Box 259

Trenton, NJ 08695-0259

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

Common mistakes

  • Continuing after a “NO” in Part I. Both qualification answers must be “YES.”
  • Not mailing the required copies. Failure to mail the certificate and completed Form 322 can delay or lead to denial of the credit.
  • Leaving out the credit form in the year the credit was earned. The instructions require it even if you are not claiming the credit on that year's return.
  • Using the wrong calculation section. Combined return filers must use Part IV, not Part III. Nonsharing members must complete both Sections A and B.
  • Omitting other credits already applied. List them on line 8, 14, or 20, as applicable, so the allowable credit is calculated correctly.
  • Exceeding the tenant limit. A tenant's credit cannot exceed lease payments for occupancy in the qualified facility for that tax year or privilege period.

Questions people ask

Can unused credit be carried forward?

Yes. An original recipient or tax 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.

Over how many years is the credit taken?

The instructions provide for either five years at one-fifth of the total credit per period or ten years at one-tenth per period, starting with the period the business was approved by the Economic Development Authority.

Must a combined group member share its credit?

No. Members may choose not to share. A nonsharing member must fill in the oval at the top of the form and complete Part IV, Sections A and B.

What happens if documentation of the business's credit amount remains unapproved?

The credit amount for that tax period is forfeited. Credit amounts for the remaining years of the credit period remain available.

Official sources

All versions of 322