323: Residential Economic Redevelopment and Growth Tax Credit (2024)

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

Form 323 calculates the Residential Economic Redevelopment and Growth Tax Credit against New Jersey Corporation Business Tax for 2024. It reports the available credit, the amount allowed for the current year, and any unused credit carried forward, including calculations for combi

Who files this form

Complete Form 323 if you claim the Residential Economic Redevelopment and Growth 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, subject to the applicable transfer rules and limits.

To qualify, you must have both:

  • Written approval from the New Jersey Economic Development Authority.
  • A tax credit certificate issued by 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 figures ready:

  • Written approval from the New Jersey Economic Development Authority.
  • Your tax credit certificate from the New Jersey Division of Taxation.
  • Your CBT-100, CBT-100S, or CBT-100U return, including the tax liability figures used on Form 323.
  • Any Residential Economic Redevelopment and Growth Tax Credit carried forward from the prior year.
  • Details of other tax credits already applied to the relevant taxpayer's or combined group's tax liability.

Combined return members that do not share their 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 323 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.
  2. Complete Part II to calculate the available credit, including 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 filer box and complete Part IV, Section A instead of Part III. If you do not share the credit, also fill in the non-sharing 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 323 with your CBT-100, CBT-100S, or CBT-100U return.

Also mail a copy of your tax credit certificate and a copy of the completed Form 323 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 after a “No” answer in Part I. Both qualification answers must be “Yes” to be eligible.
  • Not mailing the required copies. Failure to mail the tax credit certificate and completed Form 323 can delay or cause denial of the credit.
  • Using the wrong calculation part. CBT-100 and CBT-100S filers use Part III. Combined return filers use Part IV, not Part III.
  • Skipping Section A when not sharing a credit. All combined return filers must complete Part IV, Section A. Members that do not share must also complete Section B and mark the non-sharing oval.
  • Leaving out other credits already applied. List those credits on line 7, 12, or 17, as applicable, so the allowable credit is calculated accurately.
  • Omitting the credit form in the year the credit was earned. The instructions require the appropriate credit form even if no credit is claimed on that year's return.

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.

Can I take the full credit in one year?

The instructions provide for taking the credit over 10 years at one-tenth of the total credit per privilege period or tax year. They also state that the amount taken in any tax period cannot exceed the total credit divided by the credit term in years.

Must a combined return member share its credit?

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

Must I amend the return for the period the credit was issued for?

The certificate holder or purchaser may first use the credit against tax liabilities for the period in which it was issued or a succeeding period without amending the return for the period for which it was issued.

Official sources

All versions of 323