328: Tax Credit for Employers of Employees With Impairments (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
New Jersey Form 328 calculates the Tax Credit for Employers of Employees With Impairments for the 2024 Corporation Business Tax return. It reports the credit certified by the Department of Labor and Workforce Development and calculates the allowable amount after accounting for ta
Who files this form
Complete Form 328 if you claim the New Jersey Tax Credit for Employers of Employees With Impairments and have written approval from the New Jersey Department of Labor and Workforce Development.
The employer, terms of employment, and employees must meet the requirements of N.J.S.A. 34:11-56a39 and 34:11-56a40.
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 their return.
What you'll need
Have these items available to complete Form 328:
- Written approval from the New Jersey Department of Labor and Workforce Development and the amount of credit it certified.
- Your name as shown on the return, Federal ID number, and Unitary ID number, if applicable.
- Your CBT-100, CBT-100S, or CBT-100U return, including the tax liability and credit schedules used in the calculation.
- Information about other tax credits already applied to the current year's tax liability.
- For CBT-100 and CBT-100S filers, New Jersey gross receipts information to determine the minimum tax. Affiliated or controlled group payroll information may also affect that minimum.
- For combined-return members not sharing the credit, the group and member allocation factors from Schedule J, line 9.
How to file
Include the completed Form 328 with your CBT-100, CBT-100S, or CBT-100U return to validate the claim. The supplied text does not give a mailing address or e-filing directions.
- Complete Part I. If you do not have written approval from the Department of Labor and Workforce Development, answer “NO” and stop. You are not eligible for the credit.
- CBT-100 or CBT-100S filers: Complete Part II. Enter the allowable credit from line 8 in Schedule A-3, Part I of your return.
- CBT-100U filers: Check the combined-return filers box and complete Part III, Section A instead of Part II. If sharing the credit, enter line 15 in the member's column of Schedule A-3, Part I of CBT-100U.
- Members not sharing the credit: Also fill in the non-sharing oval and complete Part III, Section B. Enter line 21 in the member's column of Schedule A-3, Part I of CBT-100U.
Common mistakes
- Continuing without written approval. If Part I, question 1 is “NO,” do not complete the rest of the form.
- Using the wrong calculation section. Combined-return filers must skip Part II and complete Part III, Section A. Members not sharing must also complete Section B and fill in the non-sharing oval.
- Leaving out credits already applied. List them on the applicable line so the maximum allowable credit is calculated correctly.
- Reducing tax below the required minimum. The credit is subject to the minimum-tax limits explained in the form.
- Trying to carry unused credit forward. The credit must be used in the year earned. Any unused amount is forfeited.
- Omitting the credit form when no credit is claimed. The instructions require the appropriate credit form for the year the credit was earned even if the credit is not claimed.
Questions people ask
Can I claim the credit without written approval?
No. You must have written approval from the New Jersey Department of Labor and Workforce Development. If the answer to Part I, question 1 is “NO,” you are not eligible.
Can I use unused credit in a later year?
No. There is no carryforward. The credit must be used in the year it is earned, and any unused amount is forfeited.
Does a combined-return member have to share its credit?
No. A member may choose not to share. It must fill in the non-sharing oval and complete both Sections A and B of Part III.
Can the credit reduce my tax to zero?
The credit cannot reduce tax below the applicable statutory minimum. For combined groups, Section A preserves the group's aggregate statutory minimum tax. For a member not sharing its credit, Section B preserves a $2,000 minimum and also limits the credit to the amount otherwise allowable against the group's tax liability.