342: Cultural Arts Incentives Program Tax Credit (2025)

New Jersey · NJ Division of Taxation · Used for tax years 2025

Form 342 is used to claim the Cultural Arts Incentives Program Tax Credit against New Jersey Corporation Business Tax. It reports the available credit, calculates the amount allowed for the current tax period, and determines any credit carryforward.

Who files this form

Any taxpayer claiming the Cultural Arts Incentives Program Tax Credit against New Jersey Corporation Business Tax must complete Form 342. Taxpayers that purchased the credit through the Economic Development Authority tax benefit transfer program may also claim it using this form, subject to the applicable transfer rules and limits.

To qualify, you must answer “YES” to both Part I questions: you have been approved by the New Jersey Economic Development Authority and have received 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 the form. Taxpayers must include the appropriate credit form in the year the credit was earned, even if they are not claiming the credit on that year's return.

What you'll need

Have these documents and figures ready:

  • Your tax credit certificate or tax credit transfer certificate, signed by all parties.
  • Your CBT-100, CBT-100S, or CBT-100U return, including the tax liability used to calculate the credit.
  • The approved credit amount for the current privilege period or tax year and any credit carried over from the prior period.
  • Details of other tax credits already applied to the taxpayer's or combined group's tax liability.
  • For combined return members not sharing the credit, the group and member allocation factors from Schedule J, line 9.

You must include a completed Form 342 with your Corporation Business Tax return. You must also mail copies of the signed certificate and completed Form 342 to the Division of Taxation.

How to file

  1. Complete Part I. If either answer is “NO,” stop. You are not eligible for this credit. Check the box indicating that a copy of the certificate has been submitted to the Division of Taxation.
  2. Complete Part II using the approved credit for the current period and any prior-period carryover.
  3. If you file CBT-100 or CBT-100S, complete Part III and report the allowable credit on Schedule A-3, Part I of your return.
  4. If you file CBT-100U, check the combined return filers box and complete Part IV, Section A instead of Part III. If you are not sharing the credit, also fill in the not-sharing oval, skip line 15, 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 342 with your CBT-100, CBT-100S, or CBT-100U return.

Separately, mail a copy of the certificate, signed by all parties, and a copy of the completed Form 342 to:

New Jersey Division of Taxation

Grant and Credit Review Unit

PO Box 272

Trenton, NJ 08695-0272

Common mistakes

  • Continuing after a “NO” answer in Part I. Both qualification questions must be answered “YES.” Otherwise, do not complete the rest of the form.
  • Not mailing the required documents. Failure to mail the signed certificate copy and completed Form 342 copy will delay or may result in denial of the credit.
  • Leaving out the credit form in the year the credit was earned. The form is required even if you are not claiming the credit on that year's return.
  • Using Part III for a combined return. Combined return filers must use Part IV. All must complete Section A, including members that do not share their credit. Non-sharing members must also complete Section B and fill in the not-sharing oval.
  • Omitting credits already applied to tax liability. List these on line 7, 12, or 17, as applicable, so the allowable credit is calculated accurately.
  • Applying the credit against the Corporate Transit Fee. The credit cannot be used against that fee.

Questions people ask

What projects does this credit cover?

The credit is available to cultural arts institutions for projects involving development or rehabilitation of a cultural arts institution facility, for up to 100% of eligible project costs.

Can a combined return member keep its credit instead of sharing it?

Yes. Members are not required to share their credits. A member choosing not to share must complete Part IV, Sections A and B, and fill in the not-sharing oval at the top of the form.

When can a purchaser use a transferred credit?

A purchaser may use the credit for the tax period for which it was issued, the tax period in which it was issued, or any of the next three successive tax periods. The purchaser may first use it for the period in which it was issued or a succeeding period without amending the return for the period for which it was issued. The amount taken in any tax period cannot exceed the total credit divided by the tax credit term in years.

Can a purchaser carry forward unused credit?

Yes. A purchaser can carry forward unused credit for use in any of the next five successive tax periods from the tax period for which the certificate was issued, regardless of when the credit is first claimed.

Official sources

All versions of 342