329: Pass-Through Business Alternative Income Tax Credit (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
Form 329 calculates the 2024 New Jersey Corporation Business Tax credit for a share of Pass-Through Business Alternative Income Tax reported on PTE-K-1 forms. It determines the allowable credit and refund for CBT-100, CBT-100S, and combined return filers, and lets CBT-100S filers
Who files this form
Use Form 329 to claim the Pass-Through Business Alternative Income Tax Credit on a New Jersey CBT-100, CBT-100S, or CBT-100U return. The credit is the member’s share of the tax paid by the pass-through entity, as shown on Schedule PTE-K-1.
- Include a completed Form 329 with the return to validate the claim.
- Taxpayers must include the appropriate credit form for the year the credit was earned, even if they are not claiming the credit on that year’s return.
- For a combined return, the member that earned the credit must complete Form 329.
What you'll need
Have these items ready:
- All Schedules PTE-K-1 received. Copies must be included with the return when claiming the credit.
- Your CBT-100, CBT-100S, or CBT-100U return, including the tax liability, surtax or nonconsenting shareholder tax amounts that apply.
- Information about other credits already applied to your tax liability.
- New Jersey gross receipts and, if applicable, affiliated or controlled group payroll information to determine the required minimum tax.
Combined return filers may also need Schedule J allocation factors. If calculating a nonunitary credit, include an attachment showing the calculations.
How to file
Include the completed Form 329 and copies of all PTE-K-1s received with your Corporation Business Tax return.
- CBT-100 filers: Complete Part I.
- CBT-100S filers: Complete Part II. Check only one box to show how the credit will be used. If you choose box B or C, do not complete the rest of Form 329.
- CBT-100U filers: Complete Part III, Section A. Complete Section B for unitary credits. If you choose not to share a unitary credit, also complete Section C and fill in the oval at the top of the form.
Transfer the calculated amounts to the return lines and schedules identified on Form 329. The supplied text does not give a mailing address or electronic filing directions.
Common mistakes
- Leaving out required attachments: Include the completed Form 329 and copies of all PTE-K-1s received when claiming the credit.
- Using a credit for a different tax year: Claim only the entity’s tax payment applicable to the same tax year.
- Missing other credits: List credits already applied to the taxpayer’s or combined group’s tax liability so the allowable credit is calculated correctly.
- Checking multiple S corporation choices: Check only one box on line 11. Stop after selecting box B or C.
- Mixing nonunitary and unitary credits: Do not include line 21b amounts in Sections B and C.
- Skipping Section B when not sharing: Members choosing not to share a unitary credit must still complete Section B, as well as Sections A and C, and mark the nonsharing oval.
Questions people ask
Where do I find my credit amount?
Your share of the Pass-Through Business Alternative Income Tax is shown on Schedule PTE-K-1 provided by the pass-through entity.
Can unused credit be carried forward?
For tax years beginning on or after January 1, 2022, excess credit is refunded and can no longer be carried forward.
What choices does an S corporation have?
An S corporation can apply the credit against its tax or payments made on behalf of nonconsenting shareholders. It can instead pass the current year’s credit to shareholders if all shareholders are individuals, estates, or trusts, or apply it to its own Form PTE-100 if it elects to pay the Pass-Through Business Alternative Income Tax.
Can a tax-exempt corporate member request a refund?
A corporate member exempt from tax under C.54:10A-3 can file Form A-3730 to request a refund of its share of the tax paid by the pass-through entity.