327: Film and Digital Media Tax Credit (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
New Jersey Form 327 is used to claim the Film and Digital Media Tax Credit or a credit carryforward against Corporation Business Tax. It calculates the available credit, the amount allowed for the current tax period, and any credit carried forward, with separate calculations for
Who files this form
Use Form 327 to claim a Film and Digital Media Tax Credit or credit carryforward against New Jersey Corporation Business Tax. Taxpayers must include the appropriate credit form in the year the credit was earned, even if they are not claiming the credit on that return.
- To qualify under Part I, you must have approval from the New Jersey Economic Development Authority and have received a tax credit or credit transfer certificate from the New Jersey Division of Taxation.
- Taxpayers who purchased credits through the Economic Development Authority tax benefit transfer program may also use this form, subject to the program’s rules and limits.
- For a combined return, the member that earned the credit must complete Form 327.
If the entire Film Production Tax Credit claimed is a carryforward from a previous period, complete only Part II and either Part III or Part IV.
What you'll need
Have the following ready:
- Your tax credit or credit transfer certificate showing the approved amount for the current period.
- Your CBT-100, CBT-100S, or CBT-100U return and the tax liability figures used on Form 327.
- Any Film and Digital Media Tax Credit carryforward from the prior period.
- Details of other tax credits already applied to the current return.
- Your name as shown on the return, Federal ID number, and Unitary ID number, if applicable.
CBT-100 and CBT-100S filers also need New Jersey gross receipts information to determine minimum tax. The instructions include additional minimum-tax rules for members of affiliated or controlled groups.
Combined return filers need the relevant CBT-100U Schedule A figures. Members not sharing their credit also need the group’s and member’s allocation factors from Schedule J, line 9.
A copy of the tax credit certificate and a copy of completed Form 327 must be mailed to the Division of Taxation.
How to file
- Complete Part I to confirm eligibility, unless the instructions’ carryforward-only exception applies.
- Complete Part II to add the approved current-period credit and prior-period carryforward.
- Complete Part III if you file CBT-100 or CBT-100S. Combined return filers complete Part IV, Section A instead. Members not sharing their credit must also complete Section B and fill in the not-sharing oval.
- Enter the allowable credit on Schedule A-3, Part I of the applicable Corporation Business Tax return. For CBT-100U, use the member’s column.
- Include completed Form 327 with your CBT-100, CBT-100S, or CBT-100U return.
Also mail a copy of the tax credit certificate and a copy of completed Form 327 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” in Part I. If either qualification answer is “NO,” the form says not to complete the rest because the taxpayer is not eligible.
- Failing to mail the required copies. The instructions warn that not mailing the certificate and completed Form 327 will delay or lead to denial of the credit.
- Using Part III for a combined return. Combined return filers must use Part IV and complete Section A, even if they are not sharing the credit.
- Skipping the not-sharing requirements. Members choosing not to share must also complete Section B and fill in the oval at the top of the form.
- Leaving out other credits already used. List credits already applied to the taxpayer’s or group’s tax liability on the applicable line so the maximum 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 return.
Questions people ask
Can unused credit be carried forward?
Yes. Credit not applied because of the applicable limits can be carried forward to the seven privilege periods following the original privilege period for which it was allowed.
Can I claim a credit that I purchased?
Yes. Taxpayers who purchased the credit through the Economic Development Authority tax benefit transfer program may claim it using Form 327. The applicable credit transfer rules and limits still apply.
Must a combined-group member share its credit?
No. A member may choose not to share. It must complete Part IV, Sections A and B, and fill in the not-sharing oval at the top of the form.
Can the credit reduce tax below the minimum tax?
No. The credit is limited by the applicable statutory minimum tax. For a combined-group member not sharing its credit, Section B cannot reduce tax below $2,000, and the credit is also limited by the amount otherwise allowable against the group’s tax liability.
Which parts do I complete if my claim is entirely a carryforward?
If the full Film Production Tax Credit claimed on the current return comes from a prior-period carryforward, complete only Part II and either Part III for CBT-100 or CBT-100S, or Part IV for CBT-100U.