323: Economic Redevelopment and Growth Tax Credit (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Form 323 is used to claim the Economic Redevelopment and Growth Tax Credit against New Jersey Corporation Business Tax. It calculates the available credit, the amount allowed for the current tax year, and any unused credit carried forward, with separate calculations for combined
Who files this form
Complete Form 323 if you claim the 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 answer “YES” to both Part I questions: you have written approval from the New Jersey Economic Development Authority and have received a tax credit certificate or credit transfer certificate from the New Jersey Division of Taxation.
For a combined return, the member that earned the credit must complete the form.
The text also requires taxpayers to include the appropriate credit form in the year the credit was earned or the certificate was issued, even if they are not claiming the credit on that return.
What you'll need
Have these documents and figures available:
- Written approval from the New Jersey Economic Development Authority.
- Your tax credit certificate or credit transfer certificate. The copy submitted by mail must be signed by all parties.
- Your CBT-100, CBT-100S, or CBT-100U return and the tax liability figures it provides.
- The amount of any Economic Redevelopment and Growth Tax Credit carried forward from the prior year.
- Details of other tax credits already applied to the taxpayer’s or combined group’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 submit a copy of the completed Form 323 with the certificate copy by mail.
How to file
- Complete Part I. If either qualification answer is “NO,” stop. You are not eligible for this credit.
- Complete Part II to calculate the available credit, including any prior-year carryforward.
- If filing CBT-100 or CBT-100S, complete Part III and report the allowable credit on Schedule A-3, Part I.
- If filing CBT-100U, complete Part IV, Section A instead of Part III. If you are not sharing the credit, also complete Section B and fill in the non-sharing oval. Report the allowable credit in the member’s column of Schedule A-3, Part I.
- Include the completed Form 323 with your CBT-100, CBT-100S, or CBT-100U return.
Separately, mail a copy of the completed Form 323 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 certificate copy has been submitted to the Division of Taxation.
Common mistakes
- Continuing after a “NO” answer in Part I. Both qualification answers must be “YES.” Otherwise, do not complete the rest of the form.
- Skipping the separate mailing. Failure to mail the signed certificate copy and completed Form 323 copy will delay or result in denial of the credit claimed.
- Using the wrong calculation section. Combined return filers must use Part IV, not Part III, and check the combined return filers box.
- Skipping Section A when not sharing. Non-sharing combined return members must complete both Sections A and B and fill in the non-sharing oval.
- Leaving out credits already applied. List those credits on line 7, 12, or 17, as applicable, so the allowable credit is calculated correctly.
- Omitting the credit form because no credit is being claimed. The appropriate credit form must still be included in the year the credit was earned or the certificate was issued.
- Applying the credit against the Corporate Transit Fee. The text expressly prohibits this.
Questions people ask
How is the credit spread over time?
The credit can be taken over a 10-year period at one-tenth of the total credit for each privilege period or tax year. The text limits the credit taken in any tax period to the total credit divided by the credit term in years.
Can unused credit be carried forward?
Yes. 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.
Must a combined return member share its credit?
No. Members may choose not to share. A non-sharing member must complete Part IV, Sections A and B, and fill in the oval at the top of the form. Its credit is limited by its share of the group’s tax liability and by the amount otherwise allowable against the group’s tax liability.
Must I amend the return for the period for which the certificate was issued?
The certificate holder or transferee may first use the credit for the tax period in which the certificate was issued or a succeeding tax period without amending the return for the period for which it was issued, subject to the credit’s use rules and limits.