336: Food Desert Relief Tax Credit (2024)

New Jersey · NJ Division of Taxation · Used for tax years 2024

Form 336 is used to claim the Food Desert Relief Tax Credit against New Jersey Corporation Business Tax. It reports the approved credit, prior-year carryforward, credit allowed for the current tax period, and remaining carryforward, with separate calculations for combined return

Who files this form

Complete Form 336 if you claim a Food Desert Relief Tax Credit against New Jersey Corporation Business Tax. The instructions also require taxpayers to include the appropriate credit form in the year the credit was earned, even if they are not claiming it on that year's return.

To qualify, you must have both:

  • Approval from the New Jersey Economic Development Authority to receive the credit.
  • A tax credit or credit transfer certificate issued by the New Jersey Division of Taxation.

For a combined return, the member that earned or purchased the credit must complete the form. Taxpayers who purchased the credit through the Economic Development Authority tax benefit transfer program may also claim it, subject to the applicable transfer rules and limits.

What you'll need

Have these documents and details available:

  • Your tax credit or credit transfer certificate showing the approved credit for the current privilege period or tax year.
  • Your CBT-100, CBT-100S, or CBT-100U return and the tax liability figures used on Form 336.
  • The amount of any Food Desert Relief Tax Credit carried forward from the prior year.
  • Details of other tax credits already applied to the current year's tax liability.
  • Your name as shown on the return, Federal ID number, and Unitary ID number, if applicable.

CBT-100 and CBT-100S filers need New Jersey gross receipts information to determine the required minimum tax. Special minimum-tax rules apply to certain affiliated or controlled groups.

Combined-return members not sharing the credit also need the group and member allocation factors from Schedule J, line 9.

The instructions require a copy of the tax credit certificate and a copy of the completed Form 336 to be mailed to the Division of Taxation.

How to file

  1. Complete Part I. If either qualification answer is “NO,” stop. You are not eligible for the credit.
  2. Complete Part II using the approved credit for the current period and any credit carried forward.
  3. If filing CBT-100 or CBT-100S, complete Part III. Enter the allowable credit from line 11 on Schedule A-3, Part I of your return.
  4. If filing CBT-100U, skip Part III and complete Part IV, Section A. Check the combined-return filers box. If you are not sharing the credit, also complete Section B and fill in the not-sharing oval. Report the allowable credit in the member's column of Schedule A-3, Part I, using line 18 if sharing or line 25 if not sharing.
  5. Include the completed Form 336 with your CBT-100, CBT-100S, or CBT-100U return.

Also mail a copy of the tax credit certificate and a copy of the completed Form 336 to:

New Jersey Division of Taxation

CBT Refunds/Tax Credits

PO Box 259

Trenton, NJ 08695-0259

Check the box in Part I to indicate that a copy of the certificate has been submitted to the Division of Taxation.

Common mistakes

  • Continuing after a “NO” answer in Part I. Both qualification answers must be “YES.” Otherwise, do not complete the rest of the form.
  • Not mailing the required copies. Failure to mail the certificate and completed Form 336 can delay or result in denial of the credit.
  • Leaving out the credit form because no credit is being claimed. The instructions require the appropriate credit form in the year the credit was earned, even if it is not claimed on that return.
  • Using the wrong calculation section. Combined-return filers must use Part IV, not Part III. Members not sharing must complete both Sections A and B and mark the not-sharing oval.
  • Omitting other credits already used. Include them on line 9, 16, or 23, as applicable, so the allowable credit is calculated correctly.
  • Reducing tax below the required minimum. This credit, together with other credits taken, cannot reduce tax below the applicable statutory minimum.

Questions people ask

What types of credits does this program offer?

The program provides credits for supermarkets and grocery stores in food deserts, and credits sold through a New Jersey Economic Development Authority auction to provide grant and loan funding for the program. The store credit is available for the first or second new supermarket or grocery store in a designated food desert community.

When can the credit be used?

Credits awarded to eligible supermarkets or grocery stores are taken over four years at 25% of the total credit each year, beginning with the privilege period when the store opens for business. Credits sold through the Authority's auction are taken in the privilege period purchased.

Can unused credit be carried forward?

Credits awarded to eligible taxpayers can be carried forward for up to 10 tax years. Credits sold through the Authority's auction can be carried forward for 7 years.

Must a combined-return member share its credit?

No. Members may choose not to share. A member making that choice must complete Part IV, Sections A and B, and fill in the not-sharing oval at the top of the form. Its credit is limited by both its share of the group tax liability and the amount that would otherwise be allowed against the group's tax liability.

Official sources

All versions of 336