325: Public Infrastructure Tax Credit (2024)

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

New Jersey Form 325 calculates the Public Infrastructure Tax Credit for 2024 Corporation Business Tax returns. It reports the awarded credit, amounts available to offset Realty Transfer Fees and Corporation Business Tax, and the allowable credit and unused credit carryforward.

Who files this form

Complete Form 325 if you claim the Public Infrastructure Tax Credit against New Jersey Corporation Business Tax. The credit is for qualifying public infrastructure developed by an applicant and then given to a municipality.

  • Taxpayers who purchased the credit through the Economic Development Authority’s tax benefit transfer program may also claim it using this form, subject to the applicable transfer rules and limits.
  • 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.

To qualify, you must answer “YES” to Part I, questions 1 and 3. These questions cover the government entity’s resolution and qualifying project timing, and receipt of a tax credit certificate from the New Jersey Division of Taxation.

What you'll need

Have these documents and figures ready:

  • Your tax credit certificate issued by the New Jersey Division of Taxation.
  • Your CBT-100, CBT-100S, or CBT-100U return and applicable schedules.
  • The credit amount awarded by the Economic Development Authority and the total Realty Transfer Fees paid for the project’s land and real property.
  • Your tax liability and any other credits already used on the current year’s return.
  • For combined-return members not sharing the credit, the group’s and member’s allocation factors from Schedule J, line 9.

You must include a completed Form 325 with your Corporation Business Tax return. You must also mail copies of the tax credit certificate and completed Form 325 to the Division of Taxation.

How to file

  1. Complete Part I. If question 1 or 3 is answered “NO,” stop. You are not eligible for the credit.
  2. Complete Part II to calculate the available credit.
  3. If filing CBT-100 or CBT-100S, complete Part III. Enter the allowable credit on Schedule A-3, Part I of your return.
  4. If filing CBT-100U, skip Part III and complete Part IV, Section A. If you are not sharing the credit, also complete Section B and fill in the non-sharing oval at the top. Enter the allowable credit in the member’s column of Schedule A-3, Part I of CBT-100U.
  5. Include the completed Form 325 with your CBT-100, CBT-100S, or CBT-100U return.

Separately mail a copy of the tax credit certificate and a copy of the completed Form 325 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 an ineligible answer. If Part I, question 1 or 3 is “NO,” do not complete the rest of the form.
  • Not mailing the required copies. Failure to mail the tax credit certificate and completed Form 325 can delay or result in denial of the credit.
  • Leaving out the credit form because no credit is being claimed. The appropriate credit form must be included for the year the credit was earned.
  • Using the wrong calculation section. Combined return filers must complete Part IV, not Part III. All must complete Section A, including members that do not share their credit.
  • Missing combined-return indicators. Combined return filers must check the combined-return box. Members not sharing must also fill in the non-sharing oval and complete Section B.
  • Omitting other credits already used. List applicable credits on lines 9, 14, or 19 so the maximum allowable credit is calculated accurately.

Questions people ask

What taxes can this credit offset?

The credit can offset the taxpayer’s Realty Transfer Fees and Corporation Business Tax liability.

Can unused credit be carried forward?

Yes. An original recipient or tax 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 member that does not share must complete both Sections A and B of Part IV and fill in the non-sharing oval at the top of the form.

Is there a limit on how much credit can be taken in one tax period?

Yes. No more than the total credit amount divided by the tax credit term in years may be taken in any tax period. Parts III and IV also calculate the allowable credit based on the applicable tax liability and other credits used.

What if the credit exceeds the tax liability due?

The taxpayer may apply to the Executive Director of the Economic Development Authority for a tax credit transfer certificate.

Official sources

All versions of 325