338: Historic Property Reinvestment (2024)

Who files this form

Any taxpayer claiming the Historic Property Reinvestment Tax Credit against New Jersey Corporation Business Tax must complete Form 338. Taxpayers must also include the appropriate credit form in the year the credit was earned, even if they are not claiming the credit on that return.

To qualify, the taxpayer 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 the credit must complete Form 338.

What you'll need

Have these documents and figures ready:

• Your tax credit or credit transfer certificate showing the approved amount for the current privilege period or tax year.
• Your CBT-100, CBT-100S, or CBT-100U return, including the tax liability and applicable schedules.
• The amount of any Historic Property Reinvestment Tax Credit carried forward from the prior period.
• Details of other tax credits already applied to the current return.
• For CBT-100 and CBT-100S filers, New Jersey gross receipts and any applicable affiliated or controlled group payroll figures used to determine minimum tax.
• For combined members not sharing the credit, the group and member allocation factors from Schedule J, line 9.

You must include the completed Form 338 with your Corporation Business Tax return. You must also mail copies of the tax credit certificate and completed Form 338 to the Division of Taxation.

How to file

1. Complete the taxpayer identification information and answer the qualification questions in Part I. If either answer is “No,” stop. You are not eligible for this 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 and report the allowable credit on Schedule A-3, Part I.
4. If filing CBT-100U, check the combined return filers box and complete Part IV, Section A. If not sharing the credit, also fill in the nonsharing oval and complete Section B. Report the allowable credit in the member’s column of Schedule A-3, Part I of CBT-100U.
5. Include the completed Form 338 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 338 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 questions must be answered “Yes” to qualify.
• Not mailing the required copies. Failure to mail the tax credit certificate and completed Form 338 can delay or result in denial of the credit.
• Leaving out the credit form because no credit is being claimed. The appropriate credit form must be included in the year the credit was earned, even if the credit is not claimed on that return.
• Using the wrong calculation section. Combined return filers must use Part IV, not Part III. Members not sharing their credit must complete both Sections A and B and fill in the nonsharing oval.
• Omitting other credits already applied. List those credits on line 9, 16, or 23, as applicable, to calculate the allowable credit accurately.
• Reducing tax below the minimum. This credit, together with other credits taken, cannot reduce tax liability below the applicable statutory minimum.

Questions people ask

What kinds of historic properties can qualify?

A corporation may claim the credit for qualifying property individually listed, or located in a district listed, on the National Register of Historic Places, or listed by the Pinelands Commission as a historic resource of significance to the Pinelands. The corporation must demonstrate that the rehabilitation project is not economically feasible and that a project financing gap exists without the credit.

Can unused credit be carried forward?

Yes. Excess credit can be carried forward for up to nine privilege periods.

Must a member share its credit with the combined group?

No. Members may choose not to share. A member that does not share must complete Part IV, Sections A and B, and fill in the nonsharing oval at the top of the form.

Can the credit reduce my tax to zero?

The credit cannot reduce tax liability below the statutory minimum tax. For a combined member not sharing its credit, the Section B calculation cannot reduce its tax liability below $2,000.

Can tax credits be sold back to the state?

Taxpayers may sell back tax credits under the Division of Taxation tax credit purchase program. The form refers taxpayers to the Director’s Tax Credit Purchase Program for more information.

Official sources

• https://www.nj.gov/treasury/taxation/pdf/cbt/2024/338.pdf