329: Pass-Through Business Alternative Income Tax Credit (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Form 329 calculates the 2025 New Jersey Corporation Business Tax credit for a share of Pass-Through Business Alternative Income Tax reported on PTE-K-1 forms. It reports the available credit, the amount applied to tax, and any credit to be refunded, with separate sections for CBT
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 a member’s share of the tax paid by a pass-through entity and is shown on Schedule PTE-K-1.
- Include a completed Form 329 and copies of all PTE-K-1s received with the return when claiming the credit.
- Include the appropriate credit form in the year the credit was earned, even if you are not claiming the credit on that return.
- For a combined return, the member that earned the credit must complete Form 329.
An exempt corporate member covered by the exemption described in the form’s instructions can file Form A-3730 to request a refund of its share of the tax paid.
What you'll need
Have these documents and details ready:
- All Schedules PTE-K-1 received, showing each entity’s name, tax year, and your share of the tax paid. Copies must accompany the return when claiming the credit.
- Your CBT-100, CBT-100S, or CBT-100U return, including the tax liability and applicable schedules used in the calculation.
- Your name as shown on the return, federal ID number, and unitary ID number, if applicable.
- The amounts of any other tax credits already applied to your tax liability.
- For CBT-100 and CBT-100S filers, New Jersey gross receipts and any applicable group payroll information needed to determine minimum tax.
Combined return filers with a nonunitary credit must include an attachment showing the allowable-credit calculation.
How to file
Include the completed Form 329 with your Corporation Business Tax return, along with copies of all PTE-K-1s received.
Complete the part for your return:
- CBT-100: Part I.
- CBT-100S: Part II. Choose only one option for how to apply the credit. If you choose allocation to shareholders or application to Form PTE-100, stop after making that choice and follow the transfer instructions.
- CBT-100U: Part III. All combined return filers complete Section A. Those with unitary credits also complete Section B. Members not sharing their unitary credit also complete Section C and fill in the not-sharing oval.
Transfer the allowable credit and refund amounts to the return schedules or lines identified on Form 329.
The supplied text does not give a mailing address or instructions for submitting by mail or electronically.
Common mistakes
- Leaving out required attachments. Include Form 329 and copies of all PTE-K-1s received when claiming the credit.
- Using a payment from a different tax year. You can claim only the entity’s tax payment that applies to the same tax year.
- Applying the credit against the Corporate Transit Fee. The credit cannot be used against that fee.
- Carrying excess credit forward. Excess credit is refundable and cannot be carried forward for tax years beginning on or after January 1, 2022.
- Choosing multiple CBT-100S options. Check only one box. If you choose B or C, do not complete the rest of Form 329.
- Including nonunitary credits in Sections B and C. Do not include line 19b amounts in those sections. Calculate the allowable nonunitary credit separately and attach the calculation.
- Omitting other credits already used. List them where required so the maximum allowable credit is calculated correctly.
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. Only tax payments applicable to the same tax year qualify.
What happens if my credit is larger than the amount I can use?
For tax years beginning on or after January 1, 2022, excess credit is refunded and cannot be carried forward.
Can an S corporation pass the credit to its shareholders?
Yes. An S corporation can choose to pass the current year’s credit to its shareholders if all shareholders are individuals, estates, or trusts. It can instead apply the current year’s credit to its own Form PTE-100 if it elects to pay the Pass-Through Business Alternative Income Tax.
Must a combined-group member share its credit?
No. A member can choose not to share a unitary credit. It must complete Sections A, B, and C of Part III and fill in the not-sharing oval. A nonunitary credit cannot be shared.