NEW JERSEY
2018 CBT-100S
General Instructions For
S CORPORATION BUSINESS TAX RETURN AND RELATED FORMS
Form CBT-100S S Corporation Business Tax Return
Form CBT-100S-V Payment Voucher
Form CBT-160-A Underpayment of Estimated Corporation Tax
Form CBT-160-B Underpayment of Estimated Corporation Tax
Form CBT-200-T Tentative Return and Application for
Extension of Time to File Return
Schedule NJ-K-1 Shareholders Share of Income/Loss
Form NJ-1040-SC Payment on Behalf of Nonconsenting Shareholders
Tax Credit Forms Applicable New Jersey Corporation Business
Tax Credit Forms for the Current Tax Year
TO FILE AND PAY THE ANNUAL REPORT
ELECTRONICALLY, VISIT THE DIVISION OF
REVENUE AND ENTERPRISE SERVICES
WEBSITE AT: www.nj.gov/treasury/revenue
The surtax enacted under P.L. 2018, c.48,
does not apply to New Jersey S corporations.
2018 New Jersey Corporation Business Tax
Electronic File and Electronic Pay Mandate for Corporation Business Tax
For tax years beginning on or after January 1, 2016, all taxpayers and tax preparers must le Corporation
Business Tax returns and make payments electronically. This mandate includes all returns, estimated
payments, extensions and vouchers.
You may le your extension or make a payment by EFT, e-check, or credit card through the Division of
Taxation’s online Corporation Business Tax Service at www.nj.gov/treasury/taxation/online.shtml
CBT-100S – TABLE OF CONTENTS
Subject / Instruction Number Page
Accounting Method 8 ...................................................................................................................................... 2
Accounting Periods 3(a) .................................................................................................................................1
Accumulated Adjustments Account 29(d), 30(d) .........................................................................................6, 8
Allocation 27, 29, 30 ...............................................................................................................................5, 6, 7
Amended Returns 46 ....................................................................................................................................15
Credit for Installment Payments 43(a) ..........................................................................................................14
Depreciation and Safe Harbor Leasing 38....................................................................................................10
Dividend Exclusion 14(j), 37 .....................................................................................................................4, 10
Due Dates 3(a) ...............................................................................................................................................1
Electronic Funds Transfers 5 .......................................................................................................................... 2
Estimated Tax Installment Payments 42, 43(a) ............................................................................................14
Extension of Time to File Return 7..................................................................................................................2
Federal Adjustments to Income 13 .................................................................................................................3
Federal/State Tax Agreement 13 ....................................................................................................................3
Filing Qualications and Requirements 11 .....................................................................................................3
Inactive Corporations 2, 26 .........................................................................................................................1, 5
Index .............................................................................................................................................................16
Installment Payment 4(b), 7(e), 42 ...........................................................................................................2, 14
Interest 44 .....................................................................................................................................................14
Interest and Intangible Expenses and Costs 24 .............................................................................................5
Liquidated S Corporation Shareholders’ Information 30 ................................................................................. 7
Minimum Tax 10(d), 19 ...............................................................................................................................3, 4
Net Operating Loss 14(i).................................................................................................................................4
New Corporations 3(b)....................................................................................................................................1
Nexus – Immune Activity Declaration 31 ........................................................................................................9
Nonoperational Activity 32 ..............................................................................................................................9
Overpayment Credit 43(c) ............................................................................................................................14
Partnership Investments 34 ............................................................................................................................ 9
Partnership Payments 43(e) ......................................................................................................................... 14
Payment of Tax 4(a) ........................................................................................................................................2
Payment on Behalf of Nonconsenting Shareholders 40 ............................................................................... 11
Penalties 7(f), 44.......................................................................................................................................2, 14
Personal Liability of Ofcers and Directors in Dissolution or Liquidation 6 .....................................................2
Professional Corporations 35 .......................................................................................................................10
Qualied Subchapter S Subsidiaries 36 .......................................................................................................10
Riders 9 ..........................................................................................................................................................2
Schedule NJ-K-1 Shareholder’s Share of Income/Loss 39 .......................................................................... 11
Shareholders’ Information 29 ..........................................................................................................................6
Signature 12 ...................................................................................................................................................3
Subsidiary Investments 33............................................................................................................................. 9
Summary Schedule 18 ...................................................................................................................................4
Tax Credits 17, 41 ..................................................................................................................................... 4, 11
Tax Rates 10 ...................................................................................................................................................2
Taxes 25 .........................................................................................................................................................5
Tentative Payment Credit 43(b) ....................................................................................................................14
Underpayment of Estimated Tax 44 ..............................................................................................................14
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CBT-100S
STATE OF NEW JERSEY
DIVISION OF TAXATION CORPORATION TAX
INSTRUCTIONS FOR S CORPORATION BUSINESS TAX RETURN
(Form CBT-100S – 2018)
SCHEDULE CHART
TAXPAYER MUST COMPLETE SCHEDULES INDICATED BY “X” FOR ITS RESPECTIVE CLASS
AND ATTACH A COPY OF THE CORRESPONDING FEDERAL RETURN 1120S
CLASS OF TAXPAYER
SCHEDULES
A A-2 A-3 A-4 A-GR B C E F G H I J K K LIQ P P-1 PC Q R S NJ-K-1
1. Non-Allocating
x x x x x x x x x x x x x x x x x x x x x
2. Allocating
x x x x x x x x x x x x x x x x x x x x x x
3. NJ QSSS
x x
NOTE: If applicable, Schedule G-2, Schedule N and Schedule O are available from the Division’s website or Taxpayer Forms Service.
Refer to the index on page 16.
1. COMPLETING RETURNS:
Please read all instructions carefully before completing returns.
(a) Statutory references are to the New Jersey Statutes Anno-
tated and indicate, unless otherwise designated, the section
of the Corporation Business Tax Act, as amended and sup-
plemented, on which the instruction is based. To obtain ad-
ditional information or tax forms, follow the instructions on
page 16.
(b) Enter the Federal Employer Identication Number, New Jer-
sey Corporation Number, Corporation Name, and complete
address and zip code in the space provided on the return.
(c) Provide the remaining information requested on the top por-
tion of the return. The principal business activity code should
be taken from the taxpayer’s federal tax return. Be sure to
provide the location of the corporate books as well as a con-
tact person and telephone number.
2. (a) Unless the corporation is inactive for the entire period cov-
ered by the return, all schedules and questions must be an-
swered unless permission to omit or substitute is indicated
on the return. All applicable schedules must be submitted on
the ofcial New Jersey tax form. If the answer to any item is
“No” or “None”, write “No” or “None”. Do not merely leave the
item blank.
(b) Inactive corporations that, during the period covered by
the return, did not conduct any business, did not have any
income, receipts or expenses, did not own any assets, did
not make any distributions, and did not have any change in
ownership, need only submit pages 1 through 5 of the return
along with Schedule I, Certication of Inactivity. Payment for
the related minimum tax liability and the installment payment
(if applicable), must be submitted electronically on Form
CBT-100S-V. Refer to instruction 26.
3. (a) 2018 ACCOUNTING PERIODS AND DUE DATES:
The 2018 S Corporation Business Tax Return should only
be used for accounting periods ending on and after July 31,
2018, through June 30, 2019. The due dates for all 2018 Cor-
poration Business Tax Returns and payments are reported
on the following schedule. If the due date falls on a weekend
or a legal holiday, the return and payment are due on the
following business day.
If accounting
period ends on:
July 31,
2018
Aug. 31,
2018
Sept. 30,
2018
Oct. 31,
2018
Nov. 30,
2018
Dec. 31,
2018
Due date for
ling is:
Nov. 15,
2018
Dec. 15,
2018
Jan. 15,
2019
Feb. 15,
2019
Mar. 15,
2019
Apr. 15,
2019
If accounting
period ends on:
Jan. 31,
2019
Feb. 28,
2019
Mar. 31,
2019
Apr. 30,
2019
May 31,
2019
June 30,
2019
Due date for
ling is:
May 15,
2019
June 15,
2019
July 15,
2019
Aug. 15,
2019
Sept. 15,
2019
Oct. 15,
2019
Calendar or scal accounting year is the same accounting
period upon which the taxpayer is required to report to the
United States Treasury Department for federal income tax
purposes. Please note the ending month of the account-
ing period for federal returns and New Jersey returns must
match, however, the tax return year for the federal and State
returns may differ. (i.e., a taxable year ending 8/31/18 may be
led on a 2017 federal 1120S; the same taxable year must be
led on a 2018 New Jersey CBT-100S.) All accounting peri-
ods must end on the last day of the month, except that tax-
payers may use the same 52-53 week accounting year that is
used for federal income tax purposes, see N.J.A.C. 18:7-2.3.
If returns are required for a different year, please refer to the
index on page 16 of this booklet.
(b) NEW CORPORATIONS:
(1) Every New Jersey corporation acquires a taxable status
beginning 1) on the date of its incorporation, or 2) on
the rst day of the month following its incorporation if so
stated in its certicate of incorporation. Every corporation
that incorporates, qualies, or otherwise acquires a tax-
able status in New Jersey must le a Corporation Busi-
ness Tax Return. A tax return must be led for each scal
period, or part thereof, beginning on the date the corpo-
ration acquired a taxable status in New Jersey regardless
of whether it had any assets or conducted any business
activities. No return may cover a period exceeding twelve
(12) months, even by a day.
(2) Every corporation that incorporates, qualies, or otherwise
acquires a taxable status in New Jersey and which has
adopted a scal year other than December 31, shall advise
the Division of Taxation promptly of the date of such ac
-
counting period. If no such advice is received on or before
April 15, 2019, the taxpayer will be deemed “delinquent” if
no return is led on or before April 15, 2019.
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(3) Every corporation that elects to be a New Jersey S cor-
poration must le a “New Jersey S Corporation or New
Jersey QSSS Election” (Form CBT-2553) within one cal
-
endar month subsequent to the federal S corporation ling
requirement.
(c) TRANSACTING BUSINESS WITHOUT A CERTIFICATE
OF AUTHORITY: In addition to any other liabilities imposed
by law, a foreign corporation that transacts business in this
State without a certicate of authority shall forfeit to the State
a penalty of not less than $200, nor more than $1,000 for
each calendar year, not more than 5 years prior thereto, in
which it shall have transacted business in this State without a
certicate of authority. N.J.S.A. 14A:13-11(3).
4. (a) PAYMENT OF TAX: To make payments electronically, go to
the Division of Taxation’s website www.nj.gov/treasury/taxa
-
tion and select “Make a Payment.” Taxpayers who do not have
access to the Internet may call the Division’s Customer Ser
-
vice Center at 609-292-6400.
(b) Corporations are required to make installment payments
of estimated tax. Generally, these payments are remitted
electronically from Corporation Business Tax Online Services
and Payment Services at www.nj.gov/treasury/taxation/
online.shtml Refer to instruction 45 for further information. If
tax liability is $500, refer to 7(d).
(c) An overpayment of tax by a New Jersey S corporation will
only be credited to a combined group in which the New
Jersey S corporation elects to be included. Otherwise, an
overpayment of tax by a New Jersey S corporation will not be
credited to any combined group.
5. ELECTRONIC FUNDS TRANSFERS: Taxpayers with a prior
year tax liability of $10,000 or more in any tax are required to
make their payments for all taxes by Electronic Funds Trans-
fer (EFT). For information or to enrolled in the program, visit the
Division of Revenue and Enterprise Services’ website at www.
nj.gov/treasury/revenue/eft1.shtml, call 609-984-9830, fax 609-
292-1777, or write to New Jersey Division of Revenue and Enter-
prise Services, EFT Section, PO Box 191, Trenton, New Jersey
08646-0191.
NOTE: Taxpayers who are required to remit payments by EFT
can satisfy the EFT requirement by making e-check or
credit card payments.
6. PERSONAL LIABILITY OF OFFICERS AND DIRECTORS: Any
ofcer or director of any corporation who shall distribute or cause
to be distributed any assets in dissolution or liquidation to the
stockholders without having rst paid all corporation franchise
taxes, fees, penalties and interest imposed upon said corpora-
tion, in accordance with N.J.S.A. 14A:6-12, N.J.S.A. 54:50-18
and other applicable provisions of law, shall be personally liable
for said unpaid taxes, fees, penalties and interest. Compliance
with N.J.S.A. 54:50-13 is also required in the case of certain
mergers, consolidations, and dissolutions.
7. EXTENSION OF TIME TO FILE RETURN/INSTRUCTIONS
FOR FORM CBT-200-T:
(a) AUTOMATIC EXTENSION: Where a tentative return,
Form CBT-200-T, and tax payment are timely and properly
led, it is the policy of the Division of Taxation to grant an ex
-
tension of no more than six (6) months for ling the CBT-100S.
The return must include the computation of tax liabilities on
lines 1 and 2 and, if applicable, the Key Corporation AMA
payment on line 3, and the Tentative Professional Fees on
lines 5 and 6. File the completed CBT-200-T with payment
of the total amount due as reected on line 8. The tentative
return must be led on or before the original due date of the
tax return.
(b) If a request for extension is duly made, it will be granted by
the Division. Approved extensions will not be conrmed in
writing.
(c) If an extension has been requested, the corporation should
notify all shareholders of such request.
(d) MINIMUM TAX: See instruction 10(d).
(e) Installment Payment: Any taxpayer with a tax liability of $375
or less on line 1, may make a payment of 50% of line 1 in
lieu of making the installment payments otherwise required.
Taxpayers who report a tax liability greater than $375 on line
1 should not make an entry on line 2 and are required to
make installment payments of estimated tax as indicated in
Instruction 43. Any taxpayer with Professional Corporation
Fee liabilities at line 4 must report and remit an installment
payment of 50% of line 4.
(f) PENALTIES AND INTEREST
(1) Interest – The interest rate assessed on outstanding tax
balances is Prime Rate plus 3%. For information on how
it is calculate or to nd the rate, visit www.nj.gov/treasury/
taxation/interest.shtml.
(2) Insufciency Penalty – If the amount paid with the Tenta-
tive Return, Form CBT-200-T, is less than 90% of the tax
liability computed on Form CBT-100S, or in the case of a
taxpayer whose preceding return covered a full 12 month
period, is less than the amount of the tax computed at the
rates applicable to the current accounting year but on the
basis of the facts shown and the law applicable to the pre-
ceding accounting year, the taxpayer may be liable for a
penalty of 5% per month or fraction thereof not to exceed
25% of the amount of underpayment from the original due
date to the date of actual payment.
8. ACCOUNTING METHOD: The return must be completed using
the same method of accounting, cash, accrual or other, that was
employed in the taxpayer’s federal income tax return.
9. RIDERS: Where space is insufcient, attach riders in the same
form as the original printed sheets. Only write on one side of the
sheet.
10. TAX RATES:
(a) For taxpayers with total entire net income that is not subject to
federal income taxation or such portion thereof as may be al-
locable to New Jersey, there shall be no rate of tax imposed.
See instruction 10(d) for minimum tax requirements.
(b) The tax rate is 9.00% (.09) of entire net income that is subject
to federal income taxation or such portion thereof as may be
allocable to New Jersey. For taxpayers with total entire net in-
come (Schedule A, line 42) plus nonoperational income with
New Jersey Nexus, (Schedule O, Part III, line 31), greater
than $50,000 and less than or equal to $100,000, the appli-
cable tax rate for entire net income that is subject to federal
corporate taxation is 7.50% (.075). Tax periods of less than
12 months qualify for this reduced rate if the prorated amount
of entire net income (Schedule A, line 42) plus nonoperational
income with New Jersey Nexus (Schedule O, Part III, line 31)
does not exceed $8,333 per month. For taxpayers with total
entire net income (Schedule A, line 42 plus nonoperational
income with New Jersey Nexus (Schedule O, Part III, Line
31) of $50,000 or less, the tax rate for entire net income that
is subject to federal corporate taxation is 6.5% (.065). Tax
periods of less than 12 months qualify for the 6.5% rate if the
prorated if the prorated amount of entire net income (Sched-
ule A, line 42) plus nonoperational income with New Jersey
Nexus (Schedule O, Part III, line 31) does not exceed $4,166
per month.
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(c) The tax rate on net pro rata share of S corporation income
allocated to New Jersey for nonconsenting shareholders is
10.75% (.1075).
NOTE: The S corporation is not permitted to make payments on
behalf of consenting shareholders. Any payments made
on behalf of consenting shareholders will be disallowed
by the Division. The S corporation will be required to le
a refund claim for any payments made on behalf of con-
senting shareholders.
(d) MINIMUM TAX: The minimum tax is assessed based on the
New Jersey Gross Receipts (Schedule A-GR) as follows:
New Jersey Gross Receipts Minimum Tax
Less than $100,000
$375
$100,000 or more but less than $250,000
$562
$250,000 or more but less than $500,000
$750
$500,000 or more but less than $1,000,000
$1,125
$1,000,000 or more
$1,500
If a taxpayer is a member of an afliated or controlled group
(as per sections 1504 or 1563 of the Internal Revenue Code
of 1986) that has a total payroll of $5,000,000 or more for the
tax year, the minimum tax is $2,000. Tax years of less than
12 months are subject to the higher minimum tax if the pro-
rated total payroll exceeds $416,667 per month. Total payroll
refers to the total payroll of the afliated group rather than
total New Jersey payroll of a single corporation. Taxpayers
that are members of an afliated or controlled group must
submit a schedule of payroll per member and a copy of the
taxpayer’s federal afliations schedule, Form 851, with the
return. Refer to Schedule A-GR for the determination of New
Jersey gross receipts.
The minimum tax cannot be prorated. Zero (0) returns
are not permitted.
(e) Surtax: The surtax enacted under P.L. 2018, c.48, does not
apply to New Jersey S corporations.
11. CORPORATIONS REQUIRED TO FILE THIS RETURN:
(a) Every corporation that has elected and qualies pursuant to
Section 1361 of the Internal Revenue Code and has qual-
ied and been accepted as a New Jersey S corporation is
required to le a CBT-100S.
(b) Foreign corporations that meet the ling requirements and
whose income is immune from tax pursuant to Public Law
86-272, 15 U.S.C. § 381 et seq., must complete Schedule N,
Nexus – Immune Activity Declaration, and all schedules from
the CBT-100S. Remit the minimum tax with the CBT-100S.
Refer to instruction 31.
(c) Any corporation that is treated as a Qualied Subchapter S
Subsidiary for federal purposes is eligible to be a New Jersey
Qualied Subchapter S Subsidiary. Every corporation that
has qualied and has been accepted as a New Jersey Quali-
ed Subchapter S Subsidiary is required to le a New Jersey
Corporation Business Tax return remitting only the minimum
tax liability. Refer to instruction 10(d).
(d) Corporations that are “out of business” but have not dissolved
or withdrawn their authority to do business in New Jersey are
still obligated to le a return. A dissolution or withdrawal date
must be established on or before the last day of the current
tax year in order to avoid having to le a return for the next
tax year.
(e) Foreign corporations which are owners of a New Jersey part-
nership must le Form CBT-100S to claim the tax paid on
their behalf by the partnership. The foreign corporation is not
permitted to transfer the tax paid by the partnership on its
behalf to any of its shareholders.
12. SIGNATURE: Each return must be signed by an ofcer of the cor-
poration who is authorized to attest to the truth of the statements
contained therein. The fact that an individual’s name is signed
on the return shall be prima facie evidence that such individual
is authorized to sign the return on behalf of the corporation. Tax
preparers who fail to sign the return or provide their assigned tax
identication number shall be liable for a $25 penalty for each
such failure. If the tax preparer is not self-employed, the name of
the tax preparer’s employer and the employer’s tax identication
number should also be provided. In the case of a corporation in
liquidation or in the hands of a receiver or trustee, certication
shall be made by the person responsible for the conduct of the
affairs of such corporation.
13. FINAL DETERMINATION OF NET INCOME BY FEDERAL
GOVERNMENT: Any change or correction made by the Internal
Revenue Service or other competent authority to taxable income
must be reported to the Division within ninety (90) days. Also,
amended NJ-K-1’s must be provided to the appropriate share-
holders. To amend CBT-100S returns, use the CBT-100S form
for the appropriate tax year and write “AMENDED RETURN”
clearly on the front page of the form. Refer to instruction 46 for
additional information.
FEDERAL/STATE TAX AGREEMENT: The New Jersey Division
of Taxation and the Internal Revenue Service participate in a fed-
eral/State program for the mutual exchange of tax information to
verify the accuracy and consistency of information reported on
federal and New Jersey tax returns.
14. SCHEDULE A – COMPUTATION OF ENTIRE NET INCOME:
Every taxpayer must complete this schedule on the form pro-
vided. Federal S corporations must also submit a copy of the
corresponding federal income tax return.
(a) GENERAL:
(1) If the corporation has led a federal income tax return on
its own separate basis, the gures shown at lines 1 to 21
must be the same as lines 1 to 21 on page 1 of the federal
income tax return, Form 1120S.
(2) If the corporation has not led a separate federal income
tax return, or if the gures shown at lines 1 to 21 are not
the same as lines 1 to 21 on page 1 of the federal income
tax return, the taxpayer must explain and reconcile the
differences on a rider.
(3) Consolidated returns are not permitted. A corporation
that is included in a consolidated federal income tax re-
turn must complete lines 1 to 43 on its own separate ba-
sis without consolidation with any other corporation. Ex-
ception: The parent of New Jersey Qualied Subchapter
S Subsidiary(ies) must include the gures from itself and
all the New Jersey QSSSs.
(4) Line 31 – Must reect entire net income in the same man-
ner and to the same extent as if no federal income tax S
or New Jersey S election had been made.
(5) A copy of the federal Form 1120S, including Schedule K,
must be submitted with the CBT-100S.
(b) Line 4: Add a rider or schedules showing the same informa-
tion shown on federal Form 1120S, federal Form 4797.
(c) Lines 22(a) to 30: Include all items of income and expense
which pass through to the individual shareholders as re-
ported on the federal Schedule K. Be sure to report lines 26,
27, and 28 as deductions.
Charitable contributions are limited to 10% of taxable income
for New Jersey purposes and should be stated separately on
line 30.
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Built-in gains must be reported on line 23(d) as a gross
amount exclusive of any net effects of taxes paid by the
corporation.
Gains and losses resulting from the disposition of property
if a section 179 expense deduction was passed through to
S corporation shareholders are not reported on federal form
4797, and should be reported on Schedule A, Line 25. If a
sale of shares of stock or partnership interest resulted in a
taxable transfer of a controlling interest in certain commercial
real property under N.J.S.A. 54:15C-1, please so indicate on
a rider.
(d) Line 33: Include any interest income that was not taxable
for federal income tax purposes and that was not included in
total income reported on line 31, Schedule A.
(e) Line 34: Enter the total taxes paid or accrued to the United
States, a possession or territory of the United States, a state,
a political subdivision thereof, or the District of Columbia, on
or measured by prots or income, business presence or busi-
ness activity, or any sales and use tax paid by a utility vendor,
taken as a deduction in Schedule A and reected in line 31.
Refer to Instruction 25.
(f) Line 35: Any tax paid by the corporation on behalf of any
shareholder should not have been deducted as an expense
on Schedule A. However, if the corporation expensed such
taxes on Schedule A, these taxes must be included in line 34.
(g) Line 36: Enter the depreciation and other adjustments from
Schedule S. See Instruction 38.
(h) Line 37(a): DEDUCTION FOR FOREIGN TAXES DEEMED
PAID: The portion of any IRC Section 78 gross-up included
in dividend income on line 23(b), Schedule A, that is not ex-
cluded from entire net income on line 41, may be treated
as a deduction. Attach a copy of federal Foreign Tax Credit
Form 1118.
Line 37(b):
Report amounts of (1) adjustments not other-
wise specically provided for, (2) gross income, less deduc-
tions and expenses in connection therewith, from sources
outside the United States not included in federal taxable in-
come, (3) the net effect of the elimination of non-operational
and non-unitary partnership income and expenses from line
36, Schedule O, Part I, and (4) the add back of any deduc-
tions for research and experimental expenditures, to the ex-
tent that those research and experimental expenditures are
qualied research expenses or basic research payments for
which an amount of credit is claimed pursuant to section 1
of P.L.1993, c.175 (C.54:10A-5.24) unless those research
and experimental expenditures are also used to compute a
federal credit claimed pursuant to section 41 of the federal
Internal Revenue Code of 1986, 26U.S.C. s.41. Attach sep-
arate riders explaining fully such items.
Line 37(e): For tax years beginning on and after January 1,
2018, all income that was exempt for federal income tax pur-
poses under any provision of the Internal Revenue Code or
any federal law must be added back. If such amounts were
not added back on any other line of Schedule A, include
such amounts on Line 37(e) and enclose a rider detailing the
amounts and the provisions of the Internal Revenue Code.
(i) Line 39:
A net operating loss for a taxable year may be car-
ried forward as a net operating loss deduction to a succeed-
ing year. An S corporation may carry forward losses gener-
ated as a C corporation prior to its New Jersey S election. A
net operating loss is the excess of allowable deductions over
gross income used in computing entire net income. Neither
a net operating loss deduction nor the dividend exclusion is
an allowable deduction in computing a net operating loss.
The statute authorizes a carryover of the deduction for seven
years. Net operating losses must be detailed on Form 500.
For information on obtaining Form 500, see the index on
page 16.
(j) Line 41: Dividends from all sources must be included in
Schedule A. However, a 100% exclusion from entire net in-
come for certain dividend income may be taken as indicated
in Schedule R. Taxpayer may not include money market fund
income or REIT dividends as part of the dividend exclusion.
The amount of the dividend exclusion allowed to be taken as
a deduction is limited to the amount of income reported on
line 40 of Schedule A for that tax year.
(k) Line 42: If line 40 is a negative amount, DO NOT SUB-
TRACT line 41 from line 40. The loss on line 40 should be
carried to line 42.
(l) Line 43: Must reect the income used as a basis in deter-
mining the federal tax payable by the corporation as reported
on the federal Form 1120S, such as certain built-in gains, net
passive income, etc. Built-in gains must be reported on line
23(d) as a gross amount exclusive of any net effects of taxes
paid by the corporation.
(m) RIGHT OF DIRECTOR TO CORRECT DISTORTIONS OF
NET INCOME: The Director is authorized to adjust and re-
determine items of gross receipts and expenses as may be
necessary to make a fair and reasonable determination of tax
payable under the Corporation Business Tax Act. For details
regarding the conditions under which this authority may be
exercised, refer to regulation N.J.A.C. 18:7-5.10.
15. SCHEDULE A-1 – NET OPERATING LOSS DEDUCTION AND
CARRYOVER: Schedule A-1 was replaced by Form 500. Net op-
erating losses must be detailed on Form 500, which is available
separately.
16. SCHEDULE A-2 – COST OF GOODS SOLD: The amounts re-
ported on this schedule must be the same as the amounts re-
ported on the taxpayer’s federal income tax return.
17. SCHEDULE A-3 – SUMMARY OF TAX CREDITS: This sched-
ule must be completed if one or more tax credits are claimed for
the current tax year. The total on line 24 must equal the amount
reported on page 1, line 5. Refer to instruction 41 for tax credit
information.
18. SCHEDULE A-4 – SUMMARY SCHEDULE: Every corpora-
tion must complete this schedule. Report the information on
each line of Schedule A-4 from the return schedules indicated. All
lines must be completed. Non-allocating taxpayers must enter
1.000000 on line 6.
19. SCHEDULE A-GR – COMPUTATION OF NEW JERSEY
GROSS RECEIPTS AND MINIMUM TAX: Subtract line 5 from
line 4 on page 1. If the resulting tax liability is less than $2,000,
complete this schedule. Enter the greater of the computed tax
liability or the amount on Schedule A-GR, line 7, on page 1, line
6. If the taxpayer is part of an afliated group whose total payroll
is $5,000,000 or more, the minimum tax is $2,000 regardless of
the amount of the taxpayer’s New Jersey gross receipts, and
Schedule A-GR need not be completed.
20. SCHEDULE B – BALANCE SHEET: Every taxpayer must com-
plete this schedule. The amounts reported must be the same as
the year end gures shown on the taxpayer’s books.
21. SCHEDULE C – RECONCILIATION OF INCOME PER BOOKS
WITH INCOME PER RETURN: Every corporation must complete
this schedule. If taxpayer les federal Schedule M-3, New Jersey
Schedule C must still be led, and a copy of federal Schedule
M-3 must be attached to taxpayer’s New Jersey CBT-100S
return. If taxpayer is part of a consolidated ling, then the federal
Schedule M-3 must be on a separate entity basis.
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22. SCHEDULE E – GENERAL INFORMATION: All taxpayers must
answer all questions on this schedule. In addition, riders must be
submitted if necessary in answering the questions.
23. SCHEDULE F – CORPORATE OFFICERS – GENERAL IN-
FORMATION AND COMPENSATION: All applicable informa-
tion should be provided for each corporate ofcer regardless of
whether or not compensation was received.
24. SCHEDULE G – PART I – INTEREST: Interest paid, accrued, or
incurred to related members which was deducted in computing
taxable net income on line 31 of Schedule A must be reported on
Schedule G, Part I. Enter the total of such interest expense on
line 37(c) of Schedule A. Do not include interest expenses and
costs that were deducted directly or indirectly for, related to, or
in connection with the direct or indirect acquisition, maintenance,
management, ownership, sale, exchange, or disposition of intan-
gible property in Part I. These expenses and costs are, however,
required to be included in Part II.
NOTE: For tax years beginning on or after January 1, 2018, the
treaty exceptions have been limited pursuant to P.L. 2018,
c. 48.
SCHEDULE G – PART II – INTEREST EXPENSES AND
COSTS AND INTANGIBLE EXPENSES AND COSTS: Interest
expenses and costs and intangible expenses and costs directly
or indirectly paid, accrued, or incurred to, or in connection directly
or indirectly with one or more direct or indirect transactions with
one or more related members which were deducted in computing
taxable net income on line 31 of Schedule A must be reported on
Schedule G, Part II. Enter the total of such intangible expenses
and costs on line 37(d) of Schedule A.
Exceptions: If the taxpayer is claiming an exception to the disal-
lowance of the expense reported in Part I or Part II, then the tax-
payer must complete and attach Schedule G-2. For information
on obtaining this schedule, see the index on page 16.
Denitions:
Related member means a person that, with respect to the tax-
payer during all or any portion of the tax year is (1) a related
entity, (2) a component member as dened in subsection (b) of
section 1563, of the federal Internal Revenue Code of 1986, 26
U.S.C. s.1563, (3) a person to or from whom there is attribution
of stock ownership in accordance with subsection (e) of section
1563 of the federal Internal Revenue Code of 1986, 26 U.S.C.
s.1563 or (4) a person that, notwithstanding its form of organi-
zation, bears the same relationship to the taxpayer as a person
described in (1) through (3) of this denition.
Related entity means (1) a stockholder who is an individual or
a member of the stockholder’s family enumerated in section 318
of the federal Internal Revenue Code of 1986 26 U.S.C. s.318,
if the stockholder and the members of the stockholder’s family
own, directly, indirectly, benecially or constructively, in the ag-
gregate, at least 50% of the value of the taxpayer’s outstanding
stock; (2) a stockholder, or a stockholder’s partnership, limited
liability company, estate, trust or corporation, if the stockholder
and the stockholder’s partnerships, limited liability companies,
estates, trusts and corporations own directly, indirectly, bene-
cially or constructively, in the aggregate, at least 50% of the value
of the taxpayer’s outstanding stock; or (3) a corporation, or a
party related to the corporation in a manner that would require an
attribution of stock from the corporation to the party or from the
party to the corporation under the attribution rules of the federal
Internal Revenue Code of 1986, 26 U.S.C. s.318, if the taxpay-
er owns, directly, indirectly, benecially or constructively, at least
50% of the value of the corporation’s outstanding stock. The at-
tribution rules of the federal Internal Revenue Code of 1986, 26
U.S.C. s.318, shall apply for purposes of determining whether
the ownership requirements of this denition have been met.
Intangible expenses and costs includes (1) expenses, losses,
and costs, for, related to, or in connection directly or indirectly
with the direct or indirect acquisition, use, maintenance or man-
agement, ownership, sale, exchange, or any other disposition of
intangible property to the extent such amounts are allowed as
deductions or costs in determining taxable income before oper-
ating loss deduction and special deductions for the taxable year
under the federal Internal Revenue Code of 1986, 26 U.S.C. s.1
et seq., (2) losses related to, or incurred in connection directly or
indirectly with factoring transactions or discounting transactions,
(3) royalty, patent, technical and copyright fees, (4) licensing
fees, and (5) other similar expenses and costs.
Intangible Property means patents, patent applications, trade
names, trademarks, service marks, copyrights, mask works,
trade secrets, and similar types of intangible assets.
Intangible Interest Expenses and Costs means amounts di-
rectly or indirectly allowed as deductions under section 163 of
the federal Internal Revenue Code of 1986 26 U.S.C. s.163, for
purposes of determining taxable income under the code to the
extent such expenses and costs are directly or indirectly for, re-
lated to, or in connection with the direct or indirect acquisition,
maintenance, management, ownership, sale, exchange, or dis-
position of intangible property.
25. SCHEDULE H – TAXES: Itemize all taxes which were in any way
deducted in arriving at taxable net income, whether reected at
line 2 (Cost of goods sold and/or operations), line 12 (Taxes), line
19 (Other deductions), or anywhere else on Schedule A. Also
refer to instruction 14(e).
26. SCHEDULE I – CERTIFICATION OF INACTIVITY: In lieu of
completing the entire tax return, an inactive corporation may
complete this schedule along with pages 1 through 5 of the tax
return. Payment for the related minimum tax and the installment
payment (if applicable) must be submitted electronically with
Form CBT-100S-V. An inactive corporation is a corporation that
during the entire period covered by the tax return did not conduct
any business, did not have any income, receipts or expenses,
did not own any assets, did not make any distributions, and did
not have any change in ownership.
27. SCHEDULE J – GENERAL INSTRUCTIONS:
(a) ALLOCATION PERCENTAGES: In computing the allocation
factor in Schedule J, division must be carried to six (6) deci-
mal places, e.g. 0.123456.
(b) Effective for returns beginning after July 1, 2010, all corpora-
tions are entitled to allocate.
(c) Effective for returns with periods beginning on or after Janu-
ary 1, 2014 will have a 100% weighted receipts fraction only.
(d) Only activities related to operational activity are to be used in
computing the general allocation factors. If the taxpayer has
non-operational activity, refer to Schedule O.
28. SCHEDULE J PART II:
(A) COMPUTATION OF ALLOCATION FACTOR: This schedule
may be omitted if the taxpayer does not have activity outside
of New Jersey.
(i) Line 1(a)-1(d) RECEIPTS FRACTION: Receipts for
sales of tangible personal property are allocated to New
Jersey if the goods are shipped to points within New Jer-
sey. Receipts from the sale of goods are allocable to New
Jersey if shipped to a New Jersey or a non-New Jersey
customer where possession is transferred in New Jersey.
Receipts from the sale of goods shipped to a taxpayer
from outside of New Jersey to a New Jersey customer by
a common carrier are allocable to New Jersey. Receipts
from the sale of goods shipped from outside of New Jer-
sey to a New Jersey location where the goods are picked
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up by a common carrier and transported to a customer
outside of New Jersey are not allocable to New Jersey.
Receipts from the following are allocable to New Jersey:
services performed in New Jersey; rentals from property
situated in New Jersey; royalties from the use in New Jer-
sey of patents or copyrights; all other business receipts
earned in New Jersey.
(ii) Line 1(e) and 1(g)
(a) RECEIPTS FROM SALES OF CAPITAL ASSETS:
Receipts from sales of capital assets (property not
held by the taxpayer for sale to customers in the reg-
ular course of business), either within or outside New
Jersey, should be included in the numerator and the
denominator based upon the net gain recognized and
not upon gross selling prices. Where the taxpayer’s
business is the buying and selling of real estate or the
buying and selling of securities for trading purposes,
gross receipts from the sale of such assets should be
included in the numerator and the denominator of the
receipts fraction.
(b) DIVIDEND INCOME: The amount of dividends ex-
cluded from entire net income at line 37, Schedule A,
must not be included in the numerator or denominator
of the receipts fraction.
(iii) Line 1(h) – For periods beginning on and after January 1,
2014, the allocation factor is now computed as a single sales
fraction, line 1(f) (New Jersey based receipts) divided by line
1(g) (Total Receipts everywhere).
29. SCHEDULE K – SHAREHOLDERS’ SHARES OF INCOME,
DEDUCTIONS, ETC.
Note: If the S corporation was completely liquidated during
the taxable year, refer to instruction 30, Schedule K
Liquidated.
(a) PART I
Line 1 – Enter the total number of shareholders as of the
closing date of this return.
Line 2 – Enter the total number of nonresident shareholders
included on line 1 above.
Lines 3(a) and (b) – Enter the total number of nonconsenting
shareholders included on line 1 and the percentage of stock
owned as of the closing date of this return. A nonconsent-
ing shareholder is not an initial shareholder of a New Jersey
S corporation, but one that has acquired stock after the orig-
inal New Jersey S election and has failed to consent to the
New Jersey tax jurisdiction.
(b) Part II – NEW JERSEY S CORPORATION INCOME (LOSS)
Lines 2(a) – (l) – Enter the amounts of income or loss as
reported on the corresponding lines of your federal Form
1120S, Schedule K.
Note: Other income includes Section 951A income and Section
965(a) inclusion.
On line 2(i), report any gains or losses from the disposition
of property in which a section 179 expense was claimed and
passed through to the S corporation shareholders.
Lines 4(a) – (e) Additions
(a) Enter any State and municipal interest income that was
not included in line 3. Do not include interest received or
credited from obligations of the State of New Jersey or
any of its political subdivisions.
(b) Enter the total taxes paid or accrued to the United States,
a state, a political subdivision thereof, or the District
of Columbia on or measured by prots or income, or
business presence or business activity, including income
taxes paid or accrued by the corporation on behalf of,
or in satisfaction of the liabilities of, the shareholders of
the corporation, taken as a deduction on the CBT-100S,
Schedule A and reected in line 3, Part II of Schedule K.
(c) Enter all interest on indebtedness incurred or continued,
expenses paid and incurred to purchase, carry, manage
or conserve, and expenses of collection of the income or
gain from obligations the income or gain from which is
deductible pursuant to N.J.S.A. 54A:6-14 and 6-14.1, and
reected in line 3, Part II of Schedule K.
(d) Enter any losses reected in line 3 that are not deductible
for New Jersey Gross Income Tax purposes pursuant to
N.J.S.A. 54A:6-14 and 6-14.1, i.e. losses from exempt
federal obligations and/or obligations of the State of New
Jersey or its political subdivisions.
Lines 6(a) – (g) Subtractions
(a) Enter any interest income reected in line 3 that is not
subject to New Jersey Gross Income Tax pursuant to
N.J.S.A. 54A:6-14 and 6-14.1, i.e. interest income on ex-
empt federal obligations.
(b) Enter any gains reected in line 3 that are not subject
to New Jersey Gross Income Tax pursuant to N.J.S.A.
54A:6-14 and 6-14.1, i.e. gains or losses from exempt
federal obligations and/or obligations of the State of New
Jersey or its political subdivisions.
(c) IRC Section 179 expenses from federal Schedule K.
(d) 50% of business meal expenses and 100% of entertain-
ment expenses not deductible for federal purposes.
(e) Charitable contributions from federal Schedule K.
(f) Other subtractions
(1) Expenses to generate federal tax exempt income
that is taxable for New Jersey Gross Income Tax pur-
poses. Attach schedule.
(2) Any other items that are excludable or deductible from
S corporation income under the New Jersey Gross
Income Tax Act.
Note: For tax years beginning on or after January 1, 2018, IRC
Section 199 has been repealed for federal purposes and
no deduction is allowed for New Jersey purposes. For
New Jersey Corporation Business Tax and Gross Income
Tax purposes, the IRC Section 199A is disallowed for tax
years beginning on and after January 1, 2018.
Line 7 – For taxable years beginning on or after January 1,
2004, if the federal 50% special depreciation allowance or
IRC Section 179 expense were deducted for assets placed
in service on or after January 1, 2004, then a New Jersey
depreciation adjustment is required. Use Gross Income Tax
Depreciation Adjustment Worksheet, GIT-DEP, to calculate
the depreciation adjustment for the assets’ initial year and for
subsequent years until property is fully depreciated or dis-
posed of; for adjustments to federal Section 179 recapture
income; and for adjustments to the gain or loss from disposi-
tion of such assets. Enter the results on this line. Worksheet
GIT-DEP is available on the Division’s website.
(c) PART III – ALLOCATION OF S CORPORATION INCOME
(LOSS)
Line 1 (a) – If you have completed Schedule O - Nonoper-
ational Activity, enter the amount reported on Part I, line 34,
of Schedule O. If you have not completed Schedule O, enter
zero on this line. If the nonoperational income has already
been deducted from line 1 via adjustments made in Part II,
make no adjustments on this line.
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Line 5 – If you have completed Schedule O - Nonoperational
Activity, enter the amount reported on Part III, line 31, column
C, Total Allocated New Jersey Portion. If you have not com-
pleted Schedule O, enter a zero on this line.
(d) PART IV-A
ANALYSIS OF NEW JERSEY ACCUMULATED ADJUST-
MENTS ACCOUNT (AAA) – This account reects New Jer-
sey S corporation earnings after a New Jersey S corporation
election has been led and approved.
Note: If applicable, the allocation percentage from Schedule K,
Part III, line 3 should be used for all allocated amounts
indicated below.
1. Column A, New Jersey AAA, includes:
Resident – All items of income, loss, reduction, or dis-
tribution regardless of where it is generated (include
both allocated and non-allocated amounts). Allocated
and non-allocated amounts refer to the corporation’s
New Jersey allocation factor.
Nonresident – Items of income, loss, reduction or dis-
tribution generated from New Jersey sources (include
allocated amounts only).
2. Column B, Non-New Jersey AAA, includes:
Resident – No items.
Nonresident – Items of income, loss, reduction or
distribution generated from non-New Jersey sources
(include non-allocated amounts only).
Line 1 – Enter the prior year ending balance of the New Jer-
sey Accumulated Adjustments Account (AAA). For the rst
year of the New Jersey S corporation election, the beginning
balance of the New Jersey AAA account will be zero.
Line 2 – Enter the net pro rata share of allocated and non-al-
located S corporation income or loss for resident sharehold-
ers and the net pro rata share of allocated S corporation in-
come for nonresident shareholders.
Line 3 – Enter the total of the allocated and non-allocated
tax-exempt income or loss for resident shareholders and
the allocated tax-exempt income or loss for nonresident
shareholders.
Line 4 – Enter the total of the allocated and non-allocated
other reduction(s) for resident shareholders and the allo-
cated other reduction(s) for nonresident shareholders. Other
reductions include taxes based on income paid by the S cor-
poration (the taxes added back on Schedule K, Part II, line
4b), health or life insurance paid by the S corporation, nes
and penalties paid by the S corporation and club dues paid
by the S corporation. Also, other reductions should include
any other adjustments for expenses which are nondeductible
for federal income tax purposes in determining income but
must be taken into consideration in calculating the ending
balance of AAA in the year the expenses are incurred or paid,
and are not already included in Schedule K, Part II. Provide a
schedule detailing other reductions.
Line 5 – Enter the total of lines 1, 2, 3 and 4.
Line 6 – Enter the total of the allocated and non-allocated
distribution(s) for the resident shareholder and the allocated
distribution(s) for the nonresident shareholder. Federal rules
governing distributions must be followed.
(e) PART IV-B
NEW JERSEY EARNINGS AND PROFITS ACCOUNT –
This account reects New Jersey C corporation earnings
prior to any New Jersey S corporation election.
Line 1 – Enter the beginning balance of the New Jersey E &
P account. For the rst year of the New Jersey S corporation
election, the beginning balance of the earnings and prots
account will be the retained earnings of the corporation prior
to the New Jersey S election. If the retained earnings of the
corporation prior to the New Jersey S election is a negative
amount, enter ZERO.
Line 2 – Enter any additions or adjustments that must be
made for federal income tax purposes.
Line 3 – Enter any dividends paid during the tax year from
the earnings and prots account. Refer to instruction 29(d),
line 6.
(f) PARTS V, VI and VII
Complete Parts V, VI and VII including shareholders’ full
names and social security numbers. List ALL shareholders
in the S corporation receiving either a federal or New Jersey
K-1. If additional space is required, attach separate sched-
ules in the exact format for the additional shareholders.
1. PART V – For resident shareholders, indicate their pro
rata share of S corporation income/loss from all sources
in column (C), and the actual total amount of distribu-
tions, whether in cash and/or property, in Column (D).
2. PART VI – For consenting nonresident shareholders, in-
dicate the income/loss allocated to New Jersey in column
(C), and the income/loss not allocated to New Jersey in
column (D) and the actual total amount of distributions,
whether in cash and/or property, in Column (E).
3. PART VII – For nonconsenting shareholders, indicate the
income/loss allocated to New Jersey in column (C) and
the income/loss not allocated to New Jersey in column
(D). Enter on page 1, lines 12 and 13 of the CBT-100S,
the totals reported from Part VII, column (C), the income
allocated to New Jersey, and column (F), Gross Income
Tax Paid, respectively. If the income allocated to New
Jersey is a loss, enter a zero (0) on lines 12 and 13 on
page 1 of the CBT-100S.
30. SCHEDULE K LIQUIDATED – SHAREHOLDERS’ SHARES OF
INCOME, DEDUCTIONS, ETC.: Special Instructions for S cor-
porations completely liquidated during the taxable year - Under
New Jersey Gross Income Tax regulation 18:35-1.5(k)2, a com-
plete liquidation of an S corporation is deemed to occur in the
tax year when all of the S corporation’s assets have been sold or
deemed to have been sold, exchanged, disposed or distributed
and all of the S corporation’s stock has been sold, exchanged or
disposed. If both of these criteria are met and the S corporation
was completely liquidated during the taxable year, Schedule K
Liquidated must be prepared instead of Schedule K.
Column A – S Corporation Income, Gains, Losses Prior to Dis-
position of Assets: List in Column A the income, gains, losses
and New Jersey adjustments from and applicable to the S corpo-
ration’s operations, activities and transactions prior to the com-
plete sale, exchange or other disposition of all of the S corpo-
ration’s assets. The total will be reported on the shareholders’
Schedule NJ-K-1 as “Pro rata share of S corporation income/
loss”.
Column B – Income, Gains, Losses from Disposition of Corpo-
rate Assets: List in Column B the income, gains, losses and New
Jersey adjustments derived from and applicable to the S corpo-
ration’s complete sale, deemed sale, exchange, distribution or
other disposition of all of its assets. The total will be reported on
the shareholders’ Schedule NJ-K-1 as “Total gain/loss from the
disposition of assets”.
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(a) PART I
Line 1 – Enter the total number of shareholders as of the
closing date of this return.
Line 2 – Enter the total number of nonresident shareholders
included on line 1 above.
Lines 3(a) and (b) – Enter the total number of nonconsenting
shareholders included on line 1 and the percentage of stock
owned as of the closing date of this return. A nonconsenting
shareholder is not an initial shareholder of a New Jersey S
corporation, but one that has acquired stock after the original
New Jersey S election and has failed to consent to the New
Jersey tax jurisdiction.
Line 4 – Enter the date the assets were fully disposed.
Line 5 – Enter the date the shareholders’ stock was fully
disposed.
(b) PART II – NEW JERSEY S CORPORATION INCOME
(LOSS) Lines 2(a)-(e) (h), (k) and (l) – Enter the amounts of
income or loss as reported on the corresponding lines of your
federal Form 1120S, Schedule K.
Note: Other income includes Section 951A income and Section
965(a) inclusion.
Lines 2(f), (g), (i), and (j) – In Column A, enter the amounts
applicable to operations and transactions prior to the com-
plete disposition of corporate assets. In Column B, enter the
amounts applicable to the complete disposition of corporate
assets.
On line 2(i) report any gains or losses from the disposition
of property in which a section 179 expense was claimed and
passed through to the S corporation shareholders.
Lines 4(a)-(e) Additions
(a) Enter any State and municipal interest income that was
not included in line 3. Do not include interest received or
credited from obligations of the State of New Jersey or
any of its political subdivisions.
(b) Enter the total taxes paid or accrued to the United States,
a state, a political subdivision thereof, or the District of
Columbia on or measured by prots or income, or busi-
ness presence or business activity, including income
taxes paid or accrued by the corporation on behalf of,
or in satisfaction of the liabilities of, the shareholders of
the corporation, taken as a deduction on the CBT-100S,
Schedule A and reected in line 3, Part II of Schedule K
Liquidated.
(c) Enter all interest on indebtedness incurred or continued,
expenses paid and incurred to purchase, carry, manage
or conserve, and expenses of collection of the income or
gain from obligations the income or gain from which is
deductible pursuant to N.J.S.A. 54A:6-14 and 6-14.1, and
reected in line 3, Part II of Schedule K Liquidated.
(d) Enter any losses reected in line 3 that are not deductible
for New Jersey Gross Income Tax purposes pursuant to
N.J.S.A. 54A:6-14 and 6-14.1, i.e. losses from exempt
federal obligations and/or obligations of the State of New
Jersey or its political subdivisions.
(e) In Column A, enter the amounts applicable to operations
and transactions prior to the complete disposition of cor-
porate assets. In Column B, enter the amounts applicable
to the complete disposition of corporate assets.
Lines 6(a)-(f) Subtractions
(a) Enter any interest income reected in line 3 that is not
subject to New Jersey Gross Income Tax pursuant to
N.J.S.A. 54A:6-14 and 6-14.1, i.e. interest income on ex-
empt federal obligations.
(b) Enter any gains reected in line 3 that are not subject
to New Jersey Gross Income Tax pursuant to N.J.S.A.
54A:6-14 and 6-14.1, i.e. gains or losses from exempt
federal obligations and/or obligations of the State of New
Jersey or its political subdivisions.
(c) IRC Section 179 expenses from federal Schedule K.
(d) 50% of business meal expenses and 100% of entertain-
ment expenses not deductible for federal purposes.
(e) Charitable contributions from federal Schedule K.
(f) In Column A, enter the amounts applicable to operations
and transactions prior to the complete disposition of cor-
porate assets. In Column B, enter the amounts applicable
to the complete disposition of corporate assets. Include
any other items that are excludable or deductible from S
corporation income under the New Jersey Gross Income
Tax Act.
Note: For tax years beginning on or after January 1, 2018, IRC
Section 199 has been repealed for federal purposes and
no deduction is allowed for New Jersey purposes. For
New Jersey Corporation Business Tax and Gross Income
Tax purposes, the IRC Section 199A is disallowed for tax
years beginning on and after January 1, 2018.
Line 7 – For taxable years beginning on or after January 1,
2004, if the federal 50% special depreciation allowance or
IRC Section 179 expense were deducted for assets placed
in service on or after January 1, 2004, then a New Jersey
depreciation adjustment is required. Use Gross Income Tax
Depreciation Adjustment Worksheet, GIT-DEP, to calculate
the depreciation adjustment for the assets’ initial year and for
subsequent years until property is fully depreciated or dis-
posed of; for adjustments to federal Section 179 recapture
income; and for adjustments to the gain or loss from disposi-
tion of such assets. Enter the results on this line. For informa-
tion on obtaining this worksheet, see the index on page 16. .
(c) PART III – ALLOCATION OF S CORPORATION INCOME
(LOSS)
Line 1 (a) – If you have completed Schedule O - Nonoper-
ational Activity, enter the amount reported on Part I, line 34,
of Schedule O. If you have not completed Schedule O, enter
zero on this line. If the nonoperational income has already
been deducted from line 1 via adjustments made in Part II,
make no adjustments on this line.
Line 5 – If you have completed Schedule O - Nonoperational
Activity, enter the amount reported on Part III, line 31, column
C, Total Allocated New Jersey Portion. If you have not com-
pleted Schedule O, enter a zero on this line.
(d) PART IV-A ANALYSIS OF NEW JERSEY ACCUMULATED
ADJUSTMENTS ACCOUNT (AAA) – This account reects
New Jersey S corporation earnings after a New Jersey S cor-
poration election has been led and approved.
Note: If applicable, the allocation percentage from Schedule K
Liquidated, Part III, line 3 should be used for all allocated
amounts indicated below.
1. Column A, New Jersey AAA, includes:
Resident – All items of income, loss, reduction, or dis-
tribution regardless of where it is generated (include
both allocated and non-allocated amounts). Allocated
and non-allocated amounts refer to the corporation’s
New Jersey allocation factor.
Nonresident – Items of income, loss, reduction or dis-
tribution generated from New Jersey sources (include
allocated amounts only).
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2. Column B, Non-New Jersey AAA, includes:
Resident – No items.
Nonresident – Items of income, loss, reduction or
distribution generated from non-New Jersey sources
(include non-allocated amounts only).
Line 1 – Enter the prior year ending balance of the New Jer-
sey Accumulated Adjustments Account (AAA). For the rst
year of the New Jersey S corporation election, the begin-
ning balance of the New Jersey AAA account will be zero.
Line 2 – Enter the net pro rata share of allocated and non-
allocated S corporation income or loss for resident share-
holders and the net pro rata share of allocated S corpora-
tion income for nonresident shareholders.
Line 3 – Enter the total of the allocated and non-allocated
tax- exempt income or loss for resident shareholders and
the allocated tax-exempt income or loss for nonresident
shareholders.
Line 4 – Enter the total of the allocated and non-allocated
other reduction(s) for resident shareholders and the allo-
cated other reduction(s) for nonresident shareholders.
Other reductions include taxes based on income paid by
the S corporation (the taxes added back on Schedule K Liq-
uidated, Part II, line 4b), health or life insurance paid by the
S corporation, nes and penalties paid by the S corporation
and club dues paid by the S corporation. Also, other reduc-
tions should include any other adjustments for expenses
that are nondeductible for federal income tax purposes in
determining income but must be taken into consideration
in calculating the ending balance of AAA in the year the ex-
penses are incurred or paid, and are not already included in
Schedule K Liquidated, Part II. Provide a schedule detailing
other reductions.
Line 5 – Enter the total of lines 1, 2, 3 and 4.
Line 6 – Enter the total of the allocated and non-allocated
distribution(s) for the resident shareholder and the allo-
cated distribution(s) for the nonresident shareholder. Fed-
eral rules governing distributions must be followed.
(e) PART IV-B
NEW JERSEY EARNINGS AND PROFITS ACCOUNT –
This account reects New Jersey C corporation earnings
prior to any New Jersey S corporation election.
Line 1 – Enter the beginning balance of the New Jersey
E&P account. For the rst year of the New Jersey S corpo-
ration election, the beginning balance of the earnings and
prots account will be the retained earnings of the corpora-
tion prior to the New Jersey S election. If the retained earn-
ings of the corporation prior to the New Jersey S election is
a negative amount, enter zero.
Line 2 – Enter any additions or adjustments that must be
made for federal income tax purposes.
Line 3 – Enter any dividends paid during the tax year from
the earnings and prots account. Refer to instruction 30(d),
line 6.
(f) PARTS V, VI and VII
Complete Parts V, VI and VII including shareholders’ full
names and social security numbers. List ALL shareholders
in the S corporation receiving either a federal or New Jersey
K-1. If additional space is required, attach separate sched-
ules in the exact format for the additional shareholders.
Determine each shareholder’s Pro Rata Share of In-
come/Loss based on Schedule K Liquidated, Column
A, Part III, lines 6 and 7. Determine each shareholder’s
Gain/Loss on Disposition of Assets based on Sched-
ule K Liquidated, Column B, Part III, lines 6 and 7.
1. PART V – For resident shareholders, indicate their pro
rata share of S corporation income/loss from all sources
in Column (C). Enter the gain/loss on disposition of as-
sets from all sources in Column (D). Enter the actual
total amount of distributions (prior to and including liqui-
dating), whether in cash and/or property, in Column (E).
2. PART VI – For consenting nonresident shareholders,
indicate the income/loss allocated to New Jersey in
Column (C) and the income/loss not allocated to New
Jersey in Column (D). Enter the gain/loss on disposition
of assets allocated to New Jersey in Column (E) and the
gain/loss on disposition of assets not allocated to New
Jersey in Column (F). Enter the actual total amount of
distributions (prior to and including liquidating), whether
in cash and/or property in Column (G).
3. PART VII – For nonconsenting shareholders, indicate
the income/loss allocated to New Jersey in Column (C)
and the income/loss not allocated to New Jersey in Col-
umn (D). Enter the gain/loss on disposition of assets
allocated to New Jersey in Column (E) and the gain/
loss on disposition of assets not allocated to New Jer-
sey in Column (F). Combine the totals of Column (C)
and Column (E) and enter on page 1, line 12 of the
CBT-100S. Enter the total of Column (H), Gross Income
Tax Paid, on line 13. If the income allocated to New Jer-
sey is a loss, enter a zero (0) on lines 12 and 13 of the
CBT-100S.
31. SCHEDULE N – NEXUS - IMMUNE ACTIVITY DECLARA-
TION:
Foreign corporations that claim their income is immune
from taxation pursuant to Public Law 86-272, 15 U.S.C. §381 et
seq., must complete Schedule N and le it with the CBT-100S.
For information on obtaining this schedule, see the index on
page 16.
32. SCHEDULE O – NONOPERATIONAL ACTIVITY: Corpora-
tions that claim to have nonoperational activity, nonoperational
assets or nonunitary partnership investments must complete
Schedule O and le it with the CBT-100S. For information on
obtaining this schedule, see the index on page 16.
33. SCHEDULE P – SUBSIDIARY INVESTMENT ANALYSIS:
Itemize the investment in each subsidiary company, showing
the name of each subsidiary, the percentage of interest held in
each company, the individual book value included in the bal-
ance sheet for each subsidiary investment and the amount of
dividends received from each subsidiary which is included in
gross income on Schedule A. Do not include advances or other
receivables due to subsidiaries in the book value reported at
Column 3.
34. SCHEDULE P-1 – PARTNERSHIP INVESTMENT ANALY-
SIS: Itemize the investment in each partnership, limited liabil-
ity company and any other entity that is treated for federal tax
purposes as a partnership. List the name, the Federal Identi-
cation Number, and the date and state where organized, for
each partnership. Also, check the type of ownership (general or
limited), the tax accounting method used to reect your share
of partnership activity on this return (ow through method or
separate accounting) and whether or not the partnership has
nexus in New Jersey. Itemize in Column 7 the amount of tax
payments made on behalf of the taxpayer by partnership enti-
ties. Carry the total amount of taxes paid on behalf of taxpayer
to page 1, line 10(a). Attach a copy of Schedule NJK-1 from
Form NJ-1065 if the partnership is ling in New Jersey, or the
federal Schedule K-1 if not. Any one member limited liability
company should be included on this schedule. Corporations
who claim that their partnership investments are non-unitary
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and therefore are utilizing the Separate Tax Accounting Method
must complete Schedule O to report this activity.
35. SCHEDULE PC – PER CAPITA LICENSED PROFESSIONAL
FEE:
(a) Professional Corporations (PC) formed under N.J.S.A.
14A:17-1 et seq., or any similar laws of a possession or
territory of the US, a state, or political subdivision thereof,
are liable for a fee on Licensed Professionals.
(b) Per N.J.S.A. 14A:17-3, examples of licensed professionals
are: certied public accountants, architects, optometrists,
professional engineers, land surveyors, land planners,
chiropractors, physical therapists, registered professional
nurses, dentist, osteopaths, physicians and surgeons,
doctors of medicine, doctors of dentistry, podiatrists, chi-
ropodists, veterinarians and, subject to the Rules of the Su-
preme Court, attorneys at law.
(c) The fee is assessed provided there are more than two pro-
fessionals in the PC. The fee is assessed on profession-
als that are owners, shareholders, and/or employees of
the Professional Corporation. The number of professionals
should be calculated using a quarterly average. The fee for
each resident and nonresident professional with physical
nexus with New Jersey is $150. The fee for each nonresi-
dent professional without physical nexus with New Jersey
is $150 multiplied by the allocation factor of the corporation.
The fee is limited to $250,000 per year.
(d) In the event of a period shorter than a year, the fee and
limit may be prorated by months. A fraction of a month is
deemed to be a month.
(e) Line 2 – Installment Payment: A fty percent (50%) prepay-
ment towards the subsequent year’s fee is required with the
current year’s return.
(f) Line 6 – Credit: Amount to be credited towards next year’s
fee.
This fee is not eligible for refund.
36. SCHEDULE Q – QUALIFIED SUBCHAPTER S SUBSID-
IARIES (QSSS): New Jersey may recognize a Qualied
Subchapter S Subsidiary (QSSS) as a New Jersey QSSS
under the following conditions:
1. Both the QSSS and parent Subchapter S must be regis-
tered to do business in New Jersey.
2. The QSSS and the parent submit a copy of the federal
Form 8869 and complete the New Jersey Form 2553.
New Jersey Form CBT-2553 must be signed by a cor-
porate ofcer in which the corporate parent shareholder
consents to taxation by New Jersey.
3. Both the QSSS and parent corporation are recognized
as such federally.
In the event that the election request is approved, the QSSS
making the election is obligated to le a CBT-100S mini-
mum return annually. The Corporation Business Tax return
of the New Jersey QSSS will reect “zero” income and the
minimum tax based on the minimum tax scale below, un-
less the aggregate payroll of the group exceeds $5 million
which requires a minimum tax of $2,000 for all entities of
the controlled group. Total payroll refers to the total payroll
of the controlled group rather than total New Jersey payroll
of a single corporation. A New Jersey QSSS is required to
le annually a CBT- 100S minimum tax return which will
only include page 1, Schedule Q and Form CBT-100S-V,
and when applicable Schedule PC.
The parent is now obligated to report all assets, liabilities,
income and expenses of the QSSS on consolidated basis
on its CBT-100S, CBT- 100, or BFC-1 return.
Failure to meet the above conditions will result in the QSSS
being taxed as a C Corporation on a separate entity basis.
Refer to the table in instruction 10(d) for the minimum tax
rate schedule.
37. SCHEDULE R – DIVIDEND EXCLUSION
Taxpayers may exclude from entire net income 100% of
dividends from qualied subsidiaries, if such dividends
were included in the taxpayer’s gross income on Schedule
A. A qualied subsidiary is dened as ownership by the tax-
payer of at least 80% of the total combined voting power of
all classes of stock entitled to vote and at least 80% of the
total number of shares of all other classes of stock, except
non-voting stock which is limited and preferred as to divi-
dends. With respect to other dividends, the exclusion shall
be limited to 50% of such dividends included in the taxpay-
er’s gross income on Schedule A, provided the taxpayer
owns at least 50% of voting stock and 50% of the total num-
ber of shares of all other classes of stock. Taxpayers shall
not include money market fund or REIT income as part of
the dividend exclusion. Refer to instruction 14(j).
38. SCHEDULE S – DEPRECIATION AND SAFE HARBOR
LEASING: All taxpayers except for gas, electric and gas and
electric utilities (who must complete Schedule S, Part III), must
complete this schedule and must submit a copy of a com-
pleted federal Depreciation Schedule, Form 4562, even if it
is not required for federal purposes. Schedule S provides for
adjustments to depreciation and certain safe harbor leasing
transactions.
SCHEDULE S – PART I
Line 11 Additions:
(a) Add any depreciation or cost recovery (ACRS and MACRS)
which was deducted in arriving at federal taxable income on
recovery property placed in service on or after January 1,
1981, and prior to taxpayers’ accounting periods beginning
on and after July 7, 1993.
(b) Add any 30% or 50% bonus depreciation amounts and fed-
eral depreciation calculations which were deducted in arriv-
ing at federal taxable income on recovery property placed
in service during accounting periods beginning on and after
January 1, 2002, for which federal 30% or 50% bonus de-
preciation was taken. Include the initial 30% or 50% bonus
amount and the regular depreciation on the adjusted basis.
(c) Add distributive share of ACRS and MACRS from a
partnership.
(d) Add any interest, amortization or transactional costs, rent,
or any other deduction which was claimed in arriving at fed-
eral taxable income as a result of a “safe harbor leasing”
election made under Section 168(f)(8) of the federal Inter-
nal Revenue Code; provided, however, any such amount
with respect to a qualied mass commuting vehicle pursu-
ant to the federal Internal Revenue Code Section 168(f)(8)
(D)(v) need not be added back to net income.
(e) The $100,000 bonus section 179 deduction is partially dis-
allowed. Section 179 deduction is limited to a maximum of
$25,000 which was the maximum allowance for tax years
after 2002 per the Internal Revenue Code before the bonus
deduction was enacted. Enter on line 11(e) the difference
between the federal expense and the expense allowable for
New Jersey purposes.
Line 12 Deductions:
(a) Deduct depreciation on property placed in service after
1980 and prior to taxpayers’ scal or calendar account-
ing periods beginning on and after July 7, 1993, on which
ACRS and MACRS has been disallowed under 10(a) of
this instruction using any method, life and salvage value
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which would have been allowable under the federal Internal
Revenue Code at December 31, 1980, but using the federal
basis for depreciation on the date the property was placed in
service. Refer to Schedule S, Part II (A).
(b) Deduct recomputed depreciation for assets placed in service
during accounting periods beginning on and after January 1,
2002, and for which federal 30% or 50% bonus deprecia-
tion was taken under 11(b) of this instruction using the same
method and life which would have been allowable for federal
purposes, but using the federal basis for depreciation on the
date the property was placed in service and not as provided
after taking the 30% or 50% rst-year depreciation allow-
ance. Refer to Schedule S, Part II (B).
(c) Deduct recomputed depreciation attributable to distributive
share of recovery property from a partnership.
(d) Deduct any item of income included in arriving at federal
taxable income solely as a result of a “safe harbor leasing”
election made under Section 168(f)(8) of the federal Inter-
nal Revenue Code provided, however, that any such income
which relates to a qualied mass commuting vehicle pursu-
ant to federal Internal Revenue Code Section 168(f)(8)(D)(v)
cannot be deducted from net income.
(e) Where the user/lessee of qualied lease property which is
precluded from claiming a deduction for rent under 10(c) of
this instruction would have been entitled to cost recovery on
property which is subject to such “safe harbor lease” election
in the absence of that election, it may claim depreciation on
the property in accordance with 12(a) of this instruction.
(f) Gain or loss on property sold or exchanged is the amount
properly to be recognized in the determination of federal
taxable income. However, on the physical disposal of recov-
ery property, whether or not a gain or loss is properly to be
recognized under the federal Internal Revenue Code, there
shall be allowed as a deduction any excess, or there must
be restored as an item of income, any deciency of depreci-
ation disallowed at line 11(a) and (b) over related deprecia-
tion claimed on that property at line 12(a) and (b). A statutory
merger or consolidation shall not constitute a disposal of re-
covery property.
NOTE: Uncoupling of ACRS and MACRS is not required for
property placed into service during accounting periods
beginning on or after July 7, 1993.
SCHEDULE S – PART II (B)
All taxpayers must complete this schedule in order to compute
their New Jersey depreciation allowable for assets placed in
service during accounting periods beginning on and after Jan-
uary 1, 2002, and for which federal 30% or 50% bonus depre-
ciation was taken and/or for which excess section 179 depre-
ciation was disallowed and added back per Schedule S, Part I,
line 11(e). The form as is can be used for all applicable assets.
Identication should be reported in Column A (30% bonus, 50%
bonus, excess section 179). The basis is to be determined at the
date property is placed in service and not as provided after taking
the 30% or 50% rst-year depreciation allowance.
SCHEDULE S – PART III
(a) All gas, electric, and gas and electric utilities must complete
this schedule in order to compute their New Jersey deprecia-
tion allowable for the single asset account which is comprised
of all depreciable property placed in service prior to January
1, 1998. The basis of this asset account will be the total fed-
eral depreciable basis as of December 31, 1997, plus the ex-
cess of the book depreciable basis over the federal tax basis
as of December 31, 1997. This basis will be reduced yearly
by the federal basis of these assets sold, retired or disposed
of from January 1, 1998 to date.
(b) All taxpayers must complete Schedule S, Part I, lines 11(b),
12(b), 12(f), and 13 as well as Schedule S, Part II (B) in order
to compute their New Jersey depreciation allowable for as
-
sets placed in service during accounting periods beginning on
and after January 1, 2002, and for which federal 30% or 50%
bonus depreciation was taken. The basis is to be determined
at the date property is placed in service and not as provided
after taking the 30% or 50% rst-year depreciation allowance.
39. SCHEDULE NJ-K-1 – SHAREHOLDER’S SHARE OF INCOME/
LOSS: A copy of each shareholder’s Schedule NJ-K-1 must be
attached to the CBT-100S. A copy of each NJ-K-1 must be kept
as part of the corporation’s records, and a separate copy must
be supplied to each individual shareholder on or before the date
on which the CBT-100S is to be led. The instructions for this
schedule can be found on the reverse side of the form.
40. FORM NJ-1040-SC – PAYMENT ON BEHALF OF NONCON-
SENTING SHAREHOLDERS: A copy of each NJ-1040-SC led
by the corporation on behalf of any nonconsenting shareholder
must be attached to the CBT-100S. A copy must be retained by
the corporation as part of its records, and a copy must also be
supplied to the shareholder on whose behalf the NJ-1040-SC
was led on or before the due date of the CBT-100S. The instruc-
tions for this form can be found on the reverse side of the form.
41. TAX CREDITS: (Refer to instruction 19)
(a) ANGEL INVESTOR TAX CREDIT – FORM 321: Taxpayers
that have been approved by the New Jersey Economic De-
velopment Authority may be allowed a tax credit for a quali-
fied investment in a New Jersey emerging technology com-
pany. To claim this credit, the taxpayer must complete Form
321 and attach it to the return. For information on obtaining
this form, see the index on page 16.
If an amount of credit to be refunded is calculated on the
credit form, that amount must be carried to page 1, line 10(b)
Refundable Tax Credits. See instruction 43(F).
(b) GROW NEW JERSEY TAX CREDIT – FORM 320: Taxpay-
ers that have been approved by the New Jersey Economic
Development Authority may be allowed a tax credit for a cap-
ital investment made in a qualified incentive area. To claim
this credit, the taxpayer must complete Form 320 and attach
it to the return. For information on obtaining this form, see the
index on page 16.
(c) WIND ENERGY FACILITY TAX CREDITS – FORM 322:
A Wind Energy Facility tax credit is awarded to businesses
for qualified wind energy facility located within an eligible
wind energy zone approved by the Economic Development
Authority. The business must have at least $50,000,000 in
capital investments into a qualifying facility. A tenant of the
business can qualify if there at least $17,500,000 in capital
investments made in the area being leased in the qualifying
facilities. Additionally, 300 new full time employees who are
subject to the New Jersey Gross Income Tax or are from a
state which has reciprocity with New Jersey, must have been
hired that do not qualify for certain other tax credits as enu-
merated in N.J.S.A.34:1B-209.4(3).
To claim this credit, the taxpayer must complete Form 322
and attach it to the return. For information on obtaining this
form, see the index on page 16.
(d) URBAN TRANSIT HUB TAX CREDIT – FORM 319: Taxpay-
ers that have been approved by the New Jersey Economic
Development Authority may be allowed a tax credit for capi-
tal investments made in qualified business facilities that are
located within eligible municipalities. To claim this credit, the
taxpayer must complete Form 319 and attach it to the return.
For information on obtaining this form, see the index on page
16.
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(e) BUSINESS RETENTION AND RELOCATION TAX CREDIT
– FORM 316: A taxpayer that has entered into a project
agreement with the New Jersey Commerce Commission and
received qualication for a grant of tax credits may be able
to claim this tax credit. Form 316 must be completed and
attached to the tax return. For information on obtaining this
form, see the index on page 16
(f) NEIGHBORHOOD REVITALIZATION STATE TAX CREDIT
– FORM 311: A taxpayer that contributes financial assistance
to a nonprofit sponsor may be granted a certificate authoriz-
ing a tax credit which may be used to offset their corporation
business tax liability. The tax credit may be granted in an
amount up to 100% of the approved assistance provided to a
nonprofit organization to implement a qualified project that is
part of an approved neighborhood preservation and revital-
ization plan. The credit may not exceed $1,000,000 for any
taxable year.
To claim this credit, the taxpayer must complete Form 311
and attach it to the tax return. For information on obtaining
this form, see the index on page 16.
(g) FILM PRODUCTION TAX CREDIT – FORM 318: A taxpayer
that incurs qualified film production expenses in New Jersey
may be able to claim this credit. In general, the credit is al-
lowed in an amount equal to 20% of the qualified film pro-
duction expenses subject to certain limitations. To claim this
credit, the taxpayer must complete Form 318 and attach it to
the tax return. For information on obtaining this form, see the
index on page 16.
Note: A new lm and digital media production credit was estab-
lished under P.L. 2018, c. 56, a new form is being cre-
ated and will be posted Online as soon as it becomes
available.
(h) SHELTERED WORKSHOP TAX CREDIT – FORM 317: A
taxpayer that provides employment to qualified handicapped
persons at sheltered workshops may be able to claim this tax
credit. In general, the credit is allowed in an amount equal
to 20% of the salary and wages paid during the tax year for
the employment of a qualified person not to exceed $1,000
for each qualified person for the tax year. To claim this credit,
the taxpayer must complete Form 317 and attach it to the tax
return. For information on obtaining this form, see the index
on page 16.
(i) AMA TAX CREDIT – FORM 315: A taxpayer who in a previ-
ous year(s) paid an Alternative Minimum Assessment (AMA)
liability which was in excess of the regular CBT liability may
take a credit against its regular CBT liability subject to the
following limitations. The credit taken shall not reduce the
taxpayer’s CBT liability to less than the Alternative Minimum
Assessment, nor to below the minimum tax due ($375 or
$1,500). To claim this credit, the taxpayer must complete
Form 315 and attach it to the tax return. For information on
obtaining this form, see the index on page 16
(j) ECONOMIC RECOVERY TAX CREDIT – FORM 313: A tax-
payer that is engaged in the conduct of business within a
qualified municipality and is not receiving a benefit under the
“New Jersey Urban Enterprise Zones Act” may claim a tax
credit equal to
$2,500 for each new full-time position at that location in credit
year one and $1,250 for each new full-time position at that
location in credit year two.
To claim this credit, the taxpayer must complete Form 313
and attach it to the tax return. For information on obtaining
this form, see the index on page 16.
(k) EFFLUENT EQUIPMENT TAX CREDIT – FORM 312: A tax-
payer that purchases treatment or conveyance equipment
for use in treatment of effluent for reuse in an industrial pro-
cess exclusively within New Jersey may be able to take a tax
credit. The credit is equal to 50% of the cost of the treatment
equipment or conveyance equipment less the amount of any
loan received and excluding the amount of sales and use tax.
The amount of credit claimed for the tax year in which the
purchase is made and the amount of credit claimed there-
for in each tax year thereafter shall not exceed 20% of the
amount of the total credit allowable. A copy of the determina-
tion of environmentally beneficial operation issued by the De-
partment of Environmental Protection along with an affidavit
affirming the equipment will only be used in New Jersey must
be filed with the tax return.
To claim this credit, the taxpayer must complete Form 312
and attach it to the tax return. For information on obtaining
this form, see the index on page 16.
(l) HMO ASSISTANCE FUND TAX CREDIT – FORM 310: A
member organization may offset against its corporation busi-
ness tax liability an amount of not more than 10% of any
assessment for each of the five tax years beginning on or af-
ter the third calendar year commencing after the assessment
was paid, except that no member organization may offset
more than 20% of its corporation business tax liability in any
one year.
To claim this credit, the taxpayer must complete Form 310
and attach it to the tax return. For information on obtaining
this form, see the index on page 16.
(m) SMALL NEW JERSEY-BASED HIGH-TECHNOLOGY
BUSINESS INVESTMENT TAX CREDIT – FORM 308: A
taxpayer may claim a tax credit in an amount equal to 10% of
the qualified investment made by the taxpayer during the tax
year in a small-New Jersey-based high-technology business.
The maximum allowable credit for each tax year is $500,000
for each qualified investment made by the taxpayer. The
small high- technology business must employ less than 225
employees, of which 75% must have jobs in New Jersey. The
small high- technology business must conduct pilot scale
manufacturing or qualified research in New Jersey in the
fields of advanced computing, advanced materials, biotech-
nology, electronic device technology, environmental tech-
nology, and medical device technology. At the time of this
printing, P.L. 1997, c. 349 (N.J.S.A. 54:10A-5.24b) expired
for privilege periods beginning on and after July 1, 2002.
To claim this credit, the taxpayer must complete Form 308
and attach it to the tax return. For information on obtaining
this form, see the index on page 16
(n) NEW JOBS INVESTMENT TAX CREDIT – FORM 304: This
tax credit is available for investment in new or expanded
business facilities that create new jobs in New Jersey. The
investment must create at least 5 new jobs (50 for large busi-
nesses) and meet the median annual compensation require-
ments for the current tax year. New investment is not eligible
for the credit unless the average value of all real and tangible
personal property in this State has increased over the prior
year.
The facilities must have been purchased from an unrelated
party during or after the taxpayer’s accounting period begin-
ning on or after July 7, 1993, the effective date of this legisla-
tion. It must be employed by the taxpayer in a taxable activity
and must not have been in use during the 90 day period prior
to purchase. Investments which qualify for the Manufacturing
Equipment and Employment Investment Tax Credit cannot
also qualify for this credit.
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A new employee means a New Jersey resident, hired to
ll a regular, permanent position in this State which did not
exist prior to the qualied investment, and would not exist
but for the qualied investment. The employee must be un-
related to the taxpayer and must not have been employed
by the taxpayer during the six months prior to the date the
investment was placed in service or use.
The taxpayer cannot claim a credit for a number of new em-
ployees that exceeds either the increase in the taxpayer’s
average employment for the tax year, or one-half of the tax-
payer’s average employment for the year. Also, individuals
counted in determining the New Jobs Factor must not be
ones for whom the taxpayer is allowed an Urban Enterprise
Zone or Urban Development Project Employees Tax Credit.
A small or mid-sized business taxpayer must also meet the
annual payroll and annual gross receipts requirements for
the current tax year to qualify.
To claim this credit, the taxpayer must complete Form 304
and attach it to the tax return. For information on obtaining
this form, see the index on page 16.
(o) MANUFACTURING EQUIPMENT AND EMPLOYMENT
INVESTMENT TAX CREDIT – FORM 305: Investments in
qualified manufacturing equipment made in tax years be-
ginning on or after January 1, 1994, may be eligible for the
Manufacturing Equipment and Employment Investment Tax
Credit. Such investment has the benefit of allowing a tax
credit computation for the tax year in which the investment
was made as well as each of the following two tax years.
The tax credit computation for the first year is based on the
cost of the qualified manufacturing equipment placed in ser-
vice in New Jersey during that tax year. The computations
for the two following tax years are based on the average
increase in New Jersey residents employed in New Jersey
subject to a limitation based on the cost of the investment
made in the first year.
The manufacturing equipment portion is limited to 2% (or
4%, if applicable) of the investment credit base of quali-
ed equipment placed in service in the tax year, up to a
maximum allowed credit for the tax year of $1,000,000. The
employment investment portion is valid for each of the two
tax years next succeeding the tax year for which the man-
ufacturing equipment credit is allowed, but is limited to 3%
of the investment credit base, not to exceed a maximum
allowable amount for each of the two tax years of $1,000
multiplied by the increase in the average number of quali-
ed employees.
To claim this credit, the taxpayer must complete Form 305
and attach it to the tax return. For information on obtaining
this form, see the index on page 16.
(p) RESEARCH AND DEVELOPMENT TAX CREDIT – FORM
306: A taxpayer that has performed qualified research ac-
tivities in New Jersey may be eligible to claim the Research
and Development Tax Credit. Qualied research is lim-
ited to scientic experimentation or engineering activities
designed to aid in the development of a new or improved
product, process, technique, formula, invention, or com-
puter software programs held for sale, lease, or license, or
used by the taxpayer in a trade or business. For in-house
research expenses (see Section 41(b)(2) of the Internal
Revenue Code), this trade or business requirement will be
met if the taxpayer’s principal purpose for conducting the
research is to use the results of the research in the active
conduct of a future trade or business (see Section 41(b)(4)
of the Internal Revenue Code).
For tax years beginning prior to January 1, 2018, the credit
is based on the federal corporate income tax Research
and Development credit permitted under Internal Revenue
Code section 41 in effect on June 30, 1992, which was a
nonrefundable credit.
For tax years beginning after January 1, 2018, the credit is
based on the federal corporate income tax credit portion of
the credit permitted under Internal Revenue Code section
41 currently in effect without regard to any subsequent re-
peal or action by Congress making the federal corporate
income tax credit refundable. The New Jersey Research
and Development Tax Credit is 10% of certain qualifying
expenses and 10% of certain qualifying payments based
on the applicable rules, regulations, and methods allowable
for computing the federal corporate income tax Research
and Development credit under Internal Revenue Code sec-
tion 41. The amounts used by a taxpayer for computing
the separate federal payroll tax credit pursuant to Internal
Revenue Code section 41(h) and Internal Revenue Code
section 3111(f) do not qualify for the purposes of computing
the New Jersey corporation business tax credit.
An S corporation is allowed to claim a credit in connection
with increasing research activities to the extent of its New
Jersey corporation tax liability. Pass through of this credit
to shareholders is not permitted. To claim this credit, the
taxpayer must complete Form 306 and attach it to the tax
return. For information on obtaining this form, see the index
on page 16.
(q) RECYCLING EQUIPMENT TAX CREDIT – FORM 303: A
taxpayer that purchased qualified recycling equipment on
or after October 1, 1987 and that received a certification
for this equipment from the Commissioner of the Depart-
ment of Environmental Protection may be eligible to claim
the Recycling Equipment Tax Credit. The recycling equip-
ment must have been used exclusively within New Jersey,
except for vehicles which must have been used primarily
within New Jersey.
The legislation governing this tax credit expired on Decem-
ber 31, 1996, however, any unused credits claimed prior
to January 1, 1997, can be taken on the current tax return
subject to the limitations set forth on Form 303.
To claim this credit, the taxpayer must complete Form 303
and attach it to the tax return. For information on obtaining
this form, see the index on page 16.
(r) REDEVELOPMENT AUTHORITY PROJECT TAX CREDIT
– FORM 302: Any taxpayer that is actively engaged in the
conduct of business at a location within a project as defined
in N.J.S.A. 55: 19-1 et seq., and whose business at that lo-
cation consists primarily of manufacturing or other business
that is not retail sales or warehousing oriented, may be
entitled to claim the Redevelopment Authority Project Tax
Credit. This credit is allowed in the tax year next following
the tax year of qualification. To claim the credit, the taxpayer
must complete Form 302 and attach it to the return. For in-
formation on obtaining this form, see the index on page 16.
Inquiries regarding the projects should be directed to the
New Jersey Redevelopment Authority, PO Box 834, Tren-
ton, New Jersey 08625-0834, phone 609-292- 3732.
(s) URBAN ENTERPRISE ZONE TAX CREDITS: A taxpayer
which has been designated as a “qualified business” as
defined in the New Jersey Urban Enterprise Zones Act,
N.J.S.A. 52:27H-60 et seq., may qualify for either an em-
ployee tax credit or an investment tax credit. To be eligible,
the taxpayer must have been certified as a qualified busi-
ness by the Urban Enterprise Zones Authority. Certification
is renewable annually. The urban enterprise zones are
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located in Asbury Park, Bayonne City, Bridgeton, Camden,
Carteret, East Orange, Elizabeth, Gloucester City, Gutten-
berg, Hillside, Irvington, Jersey City, Kearny, Lakewood,
Long Branch, Millville, Mount Holly, New Brunswick, New-
ark, North Bergen, Orange, Passaic, Paterson, Pemberton
Township, Perth Amboy, Phillipsburg, Plainfield, Pleasant-
ville, Roselle Borough, Trenton, Union City, Vineland, West
New York and the Joint Wildwoods. Further information can
be obtained from the New Jersey Urban Enterprise Zones
Authority, New Jersey Commerce and Economic Growth
Commission, PO Box 820, Trenton, New Jersey 08625-
0820, phone 609-292-1912.
The forms required to validate the employee tax credit
(Form 300) and the investment tax credit (Form 301) can be
obtained by following the instructions on page 16. Specic
information on these tax credits can be obtained from the
Regulatory Services Branch, PO Box 269, Trenton, New
Jersey 08695-0269, phone 609-292-5994.
(1) Employees Tax Credit – FORM 300: This credit is
available to a taxpayer who was certied as a qualied
business in the preceding tax year as well as the current
tax year. Qualifying employees must have been hired
after certication and must have worked six consecutive
months in the tax year following the tax year in which
employment began. To claim the credit, a completed
Form 300 must be attached to the tax return.
(2) Investment Tax Credit – FORM 301: A qualied busi-
ness which is not entitled to an employees tax credit
may be entitled to the investment tax credit. This credit
is only available to an employer with less than 50 em-
ployees. The investment must be at least $5,000 if there
are 10 or fewer employees, and increases by $500 for
each additional employee. To qualify for the credit, the
investment must be approved by the Urban Enterprise
Zones Authority. A completed Form 301 must be at-
tached to the tax return to validate the investment tax
credit claim.
(t) RESIDENTIAL ECONOMIC REDEVELOPMENT AND
GROWTH TAX CREDIT – FORM 323: Taxpayers that have
been approved by the New Jersey Economic Development
Authority may be allowed a tax credit in lieu of an incentive
grant. To claim this credit, the taxpayer must complete Form
323 and attach it to the return. For information on obtaining
this form, see the index on page 16.
(u) BUSINESS EMPLOYMENT INCENTIVE PROGRAM TAX
CREDIT – FORM 324: In order to qualify for this tax credit,
the taxpayer must have received a tax credit certificate is-
sued by the New Jersey Economic Development Authority
(EDA). If the taxpayer claims this credit on Form CBT-100,
Form CBT-100S, or Form BFC-1, a completed Form 324,
and EDA certificate must be attached to the tax return to
validate the claim. The forms should be sent by mail to the
New Jersey Division of Taxation, Office Audit at PO Box
269 Trenton, New Jersey 08646-0269. Failure to submit
this documentation by mail will result in the delay and/or
denial of the tax credit claimed.
(v) PUBLIC INFRASTRUCTURE TAX CREDIT – FORM 325:
In order to qualify for this tax credit, the taxpayer must have
received a tax credit certificate issued by the New Jersey
Economic Development Authority (EDA). If the taxpayer
claims this credit on Form CBT-100, Form CBT-100S, or
Form BFC-1, a completed Form 325 and EDA certificate
must be attached to the tax return to validate the claim.
The forms should be sent by mail to the New Jersey Divi-
sion of Taxation, Office Audit at PO Box 269 Trenton, New
Jersey 08646-0269. Failure to submit this documentation
by mail will result in the delay and/or denial of the tax credit
claimed.
(w) OTHER TAX CREDITS: Include on Line 23 of Schedule A-3
any other valid tax credit(s) allowable in accordance with
the New Jersey Corporation Business Tax Act for which a
place has not been provided somewhere else on the sched-
ule. Any tax credit(s) claimed on this line must be docu-
mented with a valid New Jersey Corporation Business Tax
Credit Form, which is required to be submitted with the tax
return.
42. INSTALLMENT PAYMENTS: Taxpayers are required to make
installment payments of estimated tax. The requirement for
making these payments is based on the amount of the total tax
liability shown on the most recent return.
(a) If the 2018 Total Tax Liability is greater than $375, the
taxpayer must make installment payments towards 2019.
These payments are to be made electronically with Form
CBT-150 and are due on or before the 15th day of the 4th,
6th, 9th and 12th months of the tax year. Taxpayers with
gross receipts greater than or equal to $50,000,000 must
make installment payments on the 15th day of the 4th, 6th
and 12th months of the tax year. Details for making these
payments can be found in the CBT-150 instruction booklet.
(b) If the 2018 Total Tax Liability is $375 (or less for peri-
ods beginning on and after January 1, 2013), installment
payments may be made as indicated in (a) above OR in lieu
of making installment payments, the taxpayer may make a
payment of 50% of the 2018 total tax liability. For taxpayers
who qualify and wish to take advantage of this option, enter
on line 7, 50% of the amount on line 6. This will become
part of the payment to be made with the 2018 return and
installment payments will not be required. This payment
should be claimed as a credit when ling the 2019 return.
43. PAYMENTS AND CREDITS: Credit for the total amount of the
payments and credits listed below should be taken on page 1,
line 10:
(a) Include installment tax payments made electronically with
Form CBT-150 as well as any payment made on line 19 of
the 2018 CBT-100 or line 10 of the 2018 CBT-100S.
(b) Include the payment, if any, that was remitted electronically
with the tentative return, form CBT-200-T.
(c) Include any overpayment from the preceding tax return
which the taxpayer elected to have credited to the current
year’s tax.
Do not include any amount of the overpayment which the tax-
payer elected to have refunded.
(d) Include any payments remitted electronically through the
Electronic Funds Transfer Program.
(e) Line 10(a). Include the total payments made by partner-
ships on behalf of the taxpayer that are reported in Column
7 on Schedule P-1. Submit copies of the K-1’s reecting
payments made by each partnership entity to an outside
collection agency. For delinquent periods, if that period is
assigned to an outside collection agency, a Referral Cost
Recovery Fee will be assessed prior to the ling of a Certif-
icate of Debt.
(f) Line 10(b). Include the amount of credit(s) calculated on
the applicable credit form(s) that is statutorily refundable.
44. DELINQUENT FILING AND/OR TAX PAYMENT – COMPUTA-
TION OF PENALTY AND INTEREST:
Late Filing Penalty – 5% per month or fraction thereof on the
amount of underpayment not to exceed 25% of that underpay-
ment, except if no return has been led within 30 days of the
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date on which the rst notice of delinquency in ling the return
was sent, the penalty shall accrue at 5% per month or fraction
thereof of the total tax liability not to exceed 25% of such tax
liability. Also, a penalty of $100 for each month the return is de-
linquent may be imposed.
Late Payment Penalty – 5% of the balance of Corporation Busi-
ness Tax and/or Gross Income Tax due paid after the due date
for ling the return may be imposed.
Interest – The annual interest rate is 3% above the average
predominant prime rate. Interest is imposed each month or frac-
tion thereof on the unpaid balance of tax from the original due
date to the date of payment. At the end of each calendar year,
any tax, penalties and interest remaining due will become part
of the balance on which interest will be charged. The interest
rates assessed by the Division of Taxation are published online
at www.nj.gov/treasury/taxation/interest.shtml.
Note: The average predominant prime rate is the rate as deter-
mined by the Board of Governors of the Federal Reserve
System, quoted by commercial banks to large businesses
on December 1st of the calendar year immediately pre-
ceding the calendar year in which payment was due or as
redetermined by the Director in accordance with N.J.S.A.
54:48-2.
Civil Fraud – If any part of an assessment is due to civil fraud,
there shall be added to the tax an amount equal to 50% of the
assessment in accordance with N.J.S.A. 54:49-9.1.
UNDERPAYMENT OF ESTIMATED TAX – Taxpayers must use ei-
ther Form CBT-160-A or Form CBT-160-B to determine whether an
underpayment exists in any of the installment payment periods and
if the corporation is subject to an interest charge on such under-
payment, the amount of interest. If the taxpayer qualies for any of
the exceptions to the imposition of interest for any of the installment
payments, Part II must be completed and should be led with the
taxpayer’s return, Form CBT-100S, as evidence of such exception.
The CBT-160 must be attached to the return and any interest due
included on line 14, Page 1 of Form CBT-100S.
45. REFERRAL COST RECOVERY FEE: In accordance with
N.J.S.A. 54:49-12.3, a Referral Cost Recovery Fee of 10.7% of
any tax, penalty and interest due will be added to your liability if
the matter is assigned to an outside collection agency. For delin-
quent periods, if that period is assigned to an outside collection
agency, a Referral Cost Recovery Fee will be assessed prior to
the ling of a Certicate of Debt.
46. AMENDED RETURNS: To amend CBT-100S returns, use the
CBT-100S form for the appropriate tax year and write “AMENDED
RETURN” clearly on the front page of the form. Mail to: State
of New Jersey, Division of Taxation, CBT Refund Group, PO
Box 259, Trenton, New Jersey 08695-0259.
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INDEX OF CBT-100S SCHEDULES, FORMS, AND INSTRUCTIONS
Page
2,3 ............. Schedule A .........................Computation of Entire Net Income
4 ............... Schedule A-2 .....................Cost of Goods Sold
4 ............... Schedule A-3 .....................Summary of Tax Credits
5 ............... Schedule A-4 .....................Summary Schedule
5 ............... Schedule A-GR ..................Computation of New Jersey Gross Receipts and Minimum Tax
6 ............... Schedule B ........................Balance Sheet
6 ............... Schedule C ........................Reconciliation of Income Per Books with Income Per Return
7 ............... Schedule E ........................General Information
7 ............... Schedule F.........................Corporate Ofcers – General Information and Compensation
8 ............... Schedule G ........................Interest, Interest Expenses and Costs and Intangible Expenses and Costs
* ............... Schedule G-2 .....................Claim for Exceptions to Disallowed Interest and Intangible Expenses and Costs
8 ............... Schedule H ........................Taxes
20 .............. Schedule I ..........................Certication of Inactivity
9 ............... Schedule J .........................General Information for Allocating Taxpayers and Computation of Allocation Factor
10, 11 ........... Schedule K ........................Shareholders’ Shares of Income, Deductions, Etc
12, 13, 14........ Schedule K Liquidated .......Shareholders’ Shares of Income, Deductions, Etc
* ............... Schedule N ........................Nexus – Immune Activity Declaration
21, 22........... Schedule NJ-K-1................Shareholder’s Share of Income/Loss and Instructions
* ............... Schedule O ........................Nonoperational Activity
15 .............. Schedule P ........................Subsidiary Investment Analysis
15 .............. Schedule P-1 .....................Partnership Investment Analysis
15 .............. Schedule PC ......................Per Capita Licensed Professional Fee
15 .............. Schedule Q ........................Qualied Subchapter S Subsidiaries (QSSS)
15 .............. Schedule R ........................Dividend Exclusion
16-19 ........... Schedule S ........................Depreciation and Safe Harbor Leasing
23, 24........... Form NJ-1040-SC ..............Payment on Behalf of Nonconsenting Shareholders and Instructions
* ............... Form NJ-1080-C ................Gross Income Tax – Nonresident Composite Return
* ............... Form 300 ...........................Urban Enterprise Zone Employees Tax Credit and Credit Carry Forward
* ............... Form 301 ...........................Urban Enterprise Zone Investment Tax Credit and Credit Carry Forward
* ............... Form 302 and 302-A ..........Redevelopment Authority Project Tax Credit and Credit Carry Forward
* ............... Form 303 ...........................Recycling Equipment Tax Credit
* ............... Form 304 and 304-A ..........New Jobs Investment Tax Credit
* ............... Form 305 and 305-A ..........Manufacturing Equipment and Employment Investment Tax Credit
* ............... Form 306 and 306-A ..........Research and Development Tax Credit
* ............... Form 308 and 308-A ..........Small New Jersey-Based High-Technology Business Investment Tax Credit
* ............... Form 310 ...........................HMO Assistance Fund Tax Credit
* ............... Form 311 ............................Neighborhood Revitalization State Tax Credit
* ............... Form 312 ...........................Efuent Equipment Tax Credit
* ............... Form 313 ...........................Economic Recovery Tax Credit
* ............... Form 314 ...........................Remediation Tax Credit
* ............... Form 315 ...........................AMA Tax Credit
* ............... Form 316 ...........................Business Retention and Relocation Tax Credit
* ............... Form 317 ...........................Sheltered Workshop Tax Credit
* ............... Form 318 ...........................Film Production Tax Credit
* ............... Form 319 ...........................Urban Transit Hub Tax Credit
* ............... Form 320 ...........................Grow New Jersey Tax Credit
* ............... Form 321 ...........................Angel Investor Tax Credit
* ............... Form 322 ...........................Wind Energy Facility Tax Credit
* ............... Form 323 ...........................Residential Economic Redevelopment and Growth Tax Credit
* ............... Form 324 ...........................Business Employment Incentive Program Tax Credit
* ............... Form 325 ...........................Public Infrastructure Tax Credit
* ............... Form 500 ...........................Net Operating Loss Deduction and Carryover
* These schedules and forms are available on the Division of Taxation’s website or by contacting the Division.
TAX FORMS AND INFORMATION
Tax forms, information, and Tax Topics Bulletins, are available on the Division of Taxation’s website at www.nj.gov/treasury/taxation.
NJ TaxTalk provides prerecorded information on New Jersey tax topics by calling on a touch-tone phone either within New Jersey at
1-800-323-4400 or 609-826-4400 elsewhere. To speak to a Division of Taxation representative, call the Division’s Customer Service
Center at 609-292-6400.
