GIT-317: Sheltered Workshop Tax Credit (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Form GIT-317 calculates the 2025 New Jersey Sheltered Workshop Tax Credit against gross income tax. It reports the available credit, the amount allowed for the current year, and unused credit carried forward to future years.
Who files this form
Form GIT-317 is used to calculate the 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 you answer “No” to either qualification question in Part II, you do not qualify and must stop completing the form.
What you'll need
Have these records and tax forms available, as applicable:
- The entity’s name, federal employer identification number, entity type, and New Jersey allocated income.
- Each qualified employee’s Social Security number, name, and salary and wages paid during the tax year, if completing Part III.
- Information showing that each employee meets the qualification and work requirements in Part II.
- Your NJK-1 for the current-year credit if the entity is a partnership or a multi-member LLC.
- Your prior-year GIT-317 if you are claiming a credit carryforward.
- Your NJ-1040, NJ-1040NR, or NJ-1041 for the income and tax amounts used in Part IV. NJ residents also use the earned income tax credit amount from NJ-1040, line 58.
- Records of credits calculated and used in earlier years if completing the Part V carryforward worksheet.
Common mistakes
- Continuing after a “No” answer in Part II. The form says to stop because the taxpayer does not qualify.
- Leaving out additional employees. If there are more names than Part III can hold, attach a schedule corresponding to Part III.
- Rounding the Part IV percentage too early. Carry the result on line 6 to six decimal places, such as .123456 or 12.3456%.
- Entering a negative allowable credit. Do not enter less than zero on Part IV, line 11. The instructions say to make no entry if the result is zero or less.
- Skipping the carryforward worksheet. Complete Part V if the allowable credit is less than the total available credit or if a credit was carried forward from a previous year. Read the Part V instructions first.
- Double-counting carryforwards in Part V. Line 1 must exclude credits carried forward from a prior tax year.
Questions people ask
How much is the credit for each qualified employee?
Part III calculates the lesser of 20% of the employee’s salary and wages paid during the tax year or $1,000 per qualified person. Part IV determines 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 multi-member LLCs skip Part III and use the credit amount from NJK-1 in Part IV, line 2.
Can unused credit be carried forward?
Credit that cannot be used because of the applicable limitations may be carried forward to the next seven tax years following the original tax year for which the credit was allowed. Complete Part V to validate the carryforward amount.
What if I have more than one entity?
Add Part IV, line 12 from each GIT-317. Enter the total on NJ-1040, line 46; NJ-1040NR, line 43; or NJ-1041, line 30. If you are including more than one entity, prorate the New Jersey Earned Income Tax Credit based on the combined New Jersey allocated income.