328: Tax Credit for Employers of Employees With Impairments (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
New Jersey Form 328 calculates the allowable Corporation Business Tax credit for employers of employees with impairments. It reports the credit certified by the Department of Labor and Workforce Development and calculates how much can be used for the current tax period, including
Who files this form
Complete Form 328 if you claim the Tax Credit for Employers of Employees With Impairments and have 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.
You must have written approval to answer “YES” to Part I, question 1. If you answer “NO,” you are not eligible and must not complete the rest of the form.
For a combined return, the member that earned the credit must complete Form 328. The instructions also require taxpayers to include the appropriate credit form for the year the credit was earned, even if they are not claiming it on their return.
What you'll need
Have these records and return details available:
- Written approval from the New Jersey Department of Labor and Workforce Development and the credit amount 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 Schedule A-3.
- Details of other tax credits already applied to the tax liability.
- For CBT-100 and CBT-100S filers, New Jersey gross receipts used to determine the minimum tax. Affiliated or controlled group payroll information may also affect that minimum.
- For an S corporation filing CBT-100S with its QSSS(es), Schedule Q, Part I, line 1, for the aggregate minimum tax.
- For combined return filers, the group tax amounts from Schedule A. Members not sharing the credit also need 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 credit claim. The supplied text does not specify a mailing address or an e-file procedure.
- Complete Part I to confirm that you have written approval 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.
- Members not sharing the credit: Also fill in the nonsharing 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,” stop. The taxpayer is not eligible.
- Using the wrong calculation section. Combined return filers must use Part III, not Part II. All must complete Section A, even if they do not share the credit.
- Missing the nonsharing steps. Members choosing not to share must complete Section B and fill in the oval at the top of the form.
- Leaving out other credits already applied. List them when calculating the maximum allowable credit.
- Reducing tax below the required minimum. The credit is limited by the applicable minimum tax rules.
- Carrying unused credit forward. The credit must be used in the year earned. Unused credit is forfeited.
- Applying the credit against the Corporate Transit Fee. This is not allowed.
- Omitting the credit form. Include it for the year the credit was earned, even if you are not claiming the credit on the return.
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 you answer “NO” to Part I, question 1, do not complete the rest of the form.
Can I carry unused credit into a later year?
No. The credit must be used in the year it is earned. Any unused amount is forfeited.
Must a combined group member share its credit?
No. A member may choose not to share. It must still complete Part III, Section A, also complete Section B, and fill in the nonsharing oval at the top of the form.
Can the credit offset the Corporate Transit Fee?
No. The form’s instructions expressly prohibit using this credit against the Corporate Transit Fee.
Is the full certified credit always allowable?
No. The allowable amount is limited by tax liability, other credits already applied, and the applicable minimum tax. For a combined group member not sharing its credit, the calculation cannot reduce its share of tax liability below $2,000 and is also limited by the amount otherwise allowable against the group’s tax liability.