GIT-317: Sheltered Workshop Tax Credit (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
Form GIT-317 calculates the 2024 New Jersey Sheltered Workshop Tax Credit for gross income tax purposes. It reports the available credit, the amount allowed for the current year, and any credit carried forward.
Who files this form
Form GIT-317 calculates the New Jersey Sheltered Workshop Tax Credit for sole proprietorships, partnerships, and limited liability companies.
To qualify, each employee for whom a credit is claimed must:
- Be a “Qualified Person” under P.L. 2005, c. 318.
- Have worked at least 26 weeks during the privilege period and at least 25 hours per week at or under the supervision of a sheltered workshop.
If either qualification question in Part II is answered “No,” the taxpayer does not qualify and must stop completing the form.
What you'll need
Have the following information and forms available, as applicable:
- The entity’s name, federal employer identification number, entity type, and New Jersey allocated income.
- For a sole proprietorship or single-member LLC, each qualified employee’s name, Social Security number, and salary and wages paid during the tax year.
- For a partnership or LLC with more than one member, the NJK-1 showing the credit amount.
- The prior year’s GIT-317 if claiming a carryover credit. Part IV, line 1 uses the amount from the prior year’s Part IV, line 13.
- Form NJ-1040, NJ-1040NR, or NJ-1041 for New Jersey gross income and tax amounts. New Jersey residents also need the earned income tax credit amount from Form NJ-1040, line 58.
- Credit amounts calculated and used in earlier years if completing the Part V carryover worksheet.
Common mistakes
- Do not complete the rest of the form if either qualification answer in Part II is “No.”
- Attach a schedule corresponding to Part III if there are more employee names than the form provides space for.
- Do not enter a negative amount on Part IV, line 11. The instructions say to make no entry if the result is zero or less.
- If including more than one entity, prorate the New Jersey Earned Income Tax Credit based on the combined New Jersey allocated income.
- Complete Part V if the allowable credit is less than the total credit available for the current year or if a credit was carried forward from a previous tax year. Read its instructions first.
- On Part V, line 1, exclude any credit carried over from a prior tax year.
Questions people ask
How much credit is calculated for each qualified employee?
Part III uses the lesser of 20% of the employee’s salary and wages paid during the tax year or $1,000 per qualified person. Part IV then calculates how much credit can be used for the current year.
Does every entity complete Part III?
No. Sole proprietorships and single-member LLCs complete Part III. Partnerships and LLCs with more than one member skip Part III and use the credit amount from the NJK-1 in Part IV, line 2.
Can unused credit be carried forward?
Yes. Credit that cannot be used because of the applicable limitations may be carried over to the next seven tax years following the original tax year for which it was allowed. Complete Part V to validate the carryover amount.
What if I have more than one entity?
Add Part IV, line 12 from each GIT-317. Enter the total on line 46 of Form NJ-1040, line 43 of Form NJ-1040NR, or line 30 of Form NJ-1041.