327: Film and Digital Media Tax Credit (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
New Jersey Form 327 is used to claim the Film and Digital Media Tax Credit against Corporation Business Tax. It calculates the available credit, the amount allowed for the current tax period, and any unused credit carried forward.
Who files this form
Corporations use Form 327 to claim a Film and Digital Media Tax Credit or a credit carryforward 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.
To qualify, the taxpayer must have approval from the New Jersey Economic Development Authority and a tax credit or credit transfer certificate issued by the New Jersey Division of Taxation.
- Include the appropriate credit form in the year the credit was earned or the certificate was issued, even if you are not claiming the credit on that return.
- For a combined return, the member that earned the credit must complete Form 327.
- If the entire Film Production Tax Credit claimed is carried forward from a previous period, complete only Part II and either Part III or Part IV.
What you'll need
Have these documents and figures ready:
- Your tax credit certificate or tax credit transfer certificate, signed by all parties.
- Your CBT-100, CBT-100S, or CBT-100U return, including the tax liability figures needed for Form 327.
- The approved credit amount for the current period and any credit carried forward from the prior period.
- Details of other tax credits already applied to the current return.
- For combined return members not sharing the credit, the group and member allocation factors from Schedule J, line 9.
Include a completed Form 327 with your Corporation Business Tax return. You must also mail a copy of the completed form and the signed certificate to the Division of Taxation.
How to file
- Complete Part I to confirm eligibility, unless the carryforward-only exception applies. Check the box showing that a copy of the certificate is included.
- Complete Part II to calculate the available credit.
- If you file CBT-100 or CBT-100S, complete Part III. If you file CBT-100U, complete Part IV, Section A instead. Members not sharing their credit must also complete Section B and fill in the non-sharing oval at the top of the form.
- Enter the allowable credit on Schedule A-3, Part I of the applicable return. For CBT-100U, enter it in the member’s column.
- Include the completed Form 327 with your CBT-100, CBT-100S, or CBT-100U return.
Also mail a copy of the completed Form 327 and a copy of the tax credit 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
Common mistakes
- Continuing after a “NO” answer in Part I. If either qualification question is answered “NO,” stop. The taxpayer is not eligible for the credit.
- Skipping the required mailing. Failure to mail the completed form and signed certificate can delay or result in denial of the credit.
- Using the wrong calculation section. Combined return filers must use Part IV, not Part III. All must complete Section A, even if they are not sharing the credit.
- Leaving out other credits already used. List them on line 9, 16, or 23, as applicable, so the allowable credit is calculated correctly.
- Omitting the credit form because no credit is being claimed. The appropriate credit form is still required in the year the credit was earned or the certificate was issued.
- Using the credit against the Corporate Transit Fee. The form instructions say this is not allowed.
Questions people ask
Can I carry forward unused credit?
Yes. An original recipient or tax credit purchaser may carry forward unused credit for seven 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 with the group?
No. A member may choose not to share. It must complete Part IV, Sections A and B, and fill in the non-sharing oval at the top of the form.
Can this credit reduce my tax below the minimum tax?
No. The credit is limited so that it does not reduce tax below the applicable statutory minimum. For combined return members not sharing their credit, Section B uses a $2,000 minimum and also applies the group-level credit limit.
Do I have to amend the return for the period for which the credit was issued?
Not necessarily. A certificate holder or transferee may first use the credit for the tax period in which it was issued or a succeeding period without amending the return for the period for which it was issued.