325: Public Infrastructure Tax Credit (2025)

New Jersey · NJ Division of Taxation · Used for tax years 2025

Form 325 calculates the 2025 New Jersey Public Infrastructure Tax Credit for public infrastructure developed by an applicant and given to a municipality. It reports the credit available to offset Realty Transfer Fees and Corporation Business Tax, the allowable credit, and any unu

Who files this form

Complete Form 325 if you claim the Public Infrastructure 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.

The credit covers qualifying public infrastructure developed by an applicant and then given to a municipality. To qualify, you must answer “YES” to Part I, questions 1 and 3:

  • The receiving government entity must have adopted a resolution and filed it with the Economic Development Authority consenting to the credit award and transfer of the infrastructure. At least one event listed in question 1 must occur after January 1, 2013: construction begins, construction is completed as evidenced by a completion certificate, the first monetary or debt service payment occurs, or the land is deeded to the government entity.
  • You must have received a tax credit certificate or credit transfer certificate issued by the New Jersey Division of Taxation.

For a combined return, the member that earned the credit must complete Form 325.

Taxpayers must include the appropriate credit form in the year the credit was earned or the year 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:

  • Your tax credit certificate or tax credit transfer certificate, signed by all parties.
  • A completed Form 325 and your CBT-100, CBT-100S, or CBT-100U return.
  • The credit amount awarded by the Economic Development Authority and the total Realty Transfer Fees paid for the project's land and real property.
  • The tax liability and other credits used on the current return.
  • For combined-return members not sharing the credit, the group and member allocation factors from Schedule J, line 9.

Enter the name shown on the return, federal ID number, and unitary ID number, if applicable.

How to file

  1. Complete Part I to establish eligibility, then Part II to calculate the available credit.
  2. If filing CBT-100 or CBT-100S, complete Part III. Enter the allowable credit from line 11 on Schedule A-3, Part I of your return.
  3. If filing CBT-100U, skip Part III and complete Part IV, Section A. Check the combined-return filers box. If sharing the credit, enter line 16 in the member's column of Schedule A-3, Part I. If not sharing, also complete Section B, fill in the non-sharing oval, and enter line 21 in that column.
  4. Include the completed Form 325 with your CBT-100, CBT-100S, or CBT-100U return.

You must also mail a copy of the completed Form 325 and a copy of the tax credit certificate or 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 copy of the certificate has been submitted to the Division of Taxation.

Common mistakes

  • Continuing after an ineligible answer. If question 1 or 3 is “NO,” stop. You are not eligible for the credit.
  • Not mailing the required documents. Failure to mail the certificate copy and completed Form 325 copy can delay or cause denial of the credit.
  • Using the wrong calculation part. Combined-return filers must use Part IV, not Part III. Members not sharing the credit must complete both Sections A and B.
  • Leaving out other credits already applied. List those credits on line 9, 14, or 19, as applicable, so the maximum allowable credit is calculated accurately.
  • Omitting the credit form because no credit is being claimed. The instructions require the appropriate credit form in the year the credit was earned or the certificate was issued, even without a current claim.
  • Applying the credit against the Corporate Transit Fee. This credit cannot be used against that fee.

Questions people ask

What taxes and fees can this credit offset?

The credit can offset Realty Transfer Fees and Corporation Business Tax liability. It cannot offset the Corporate Transit Fee.

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.

Is there a limit on the credit used 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.

Must a combined-return member share its credit?

No. A member may choose not to share. It must fill in the non-sharing oval and complete Part IV, Sections A and B. Its allowable credit is limited by both its share of the group's tax liability and the amount otherwise allowable against the group's tax liability.

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