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2023 CBT-100U
Instructions for Corporation Business Tax Unitary Return
Electronic Filing Mandate
All Corporation Business Tax returns and payments must be
made electronically. This mandate includes all returns, esti-
mated payments, extensions, and vouchers. Visit the Division’s
website or check with your software provider to see if they sup-
port any or all of these lings.
Note: Form CBT-100U must be led electronically even if one
or more members of the combined group is a banking
corporation or nancial business corporation. BFC lers
that submitted their payments through Electronic Funds
Transfer (EFT) should verify that they are using the cor-
rect EFT codes.
Before You Begin
Read all instructions carefully before completing returns.
Include a complete copy of the federal Form 1120 (or any
with the fed-
eral government for (or on behalf of) each member of the com-
bined group, and include all related forms and schedules that
were led as part of the full and complete federal return of the
member. For more information, see TB-98(R), Federal Return
and the Forms and Schedules to Include with the Corporation
Business Tax Return.
Form 1120-F lers attach the 1120-F to the return. If no 1120-F
was completed but the income was reported on Form 5471,
attach the 5471. If a non-U.S. corporation did not le federal
Form 1120-F and the income was not reported on federal Form
5471, it must complete an 1120-F reporting its income and tax
attributes as though the entity led a federal return.
Managerial Member Responsibilities
The managerial member acts as the agent on behalf of the
combined group. The managerial member is required to ad-
dress all tax matters including, but not limited to: ling and
amending tax returns, ling extensions, and making estimated
tax payments and/or any tax liability payment on behalf of its
taxable members. The managerial member is also responsible
for responding to notices and assessments for its combined
group. (N.J.S.A. 54:10A-4.10)
The managerial member of the combined group must register
the group in order to le the combined return. Information on
managerial member registration is available on the Division’s
website.
Even though the managerial member is responsible for making
payments on behalf of the combined group, each taxable mem-
ber is jointly and severally liable for the tax due. In addition,
any ocer 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 on said
corporation, 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 per-
sonally liable for said unpaid taxes, fees, penalties, and inter-
est. Compliance with N.J.S.A. 54:50-13 is also required in the
case of certain mergers, consolidations, and dissolutions.
The Director is authorized to adjust and redetermine 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 condi-
tions under which this authority may be exercised, see regula-
tion N.J.A.C. 18:7-5.10.
Accounting Method
The return must be completed using the same method of ac-
counting, cash, accrual or other basis, that was used on the
federal income tax return. If a federal income tax return was
not led, use the same accounting method that would have
been used if a federal return was led.
Note: Members that only use I.F.R.S. as their method of ac-
counting can use I.F.R.S. when reporting their income;
however, the member must include a rider noting the
potential dierences, if any, from the rest of the group.
Riders
If space is insucient, include riders as PDFs in the same form
as the original printed sheets. The riders must be numbered
and clearly list the schedule(s) and line(s) of each correspond-
ing rider item.
Federal/State Tax Agreement
The New Jersey Division of Taxation and the Internal Revenue
Service participate in a federal/State program for the mutual ex-
change of tax information to verify the accuracy and consistency
of information reported on federal and New Jersey tax returns.
Mandatory Combined Reporting
For group privilege periods ending on and after July 31, 2019,
members that are part of a combined group must le a com-
bined New Jersey return, Form CBT-100U. Combined returns
are mandatory, not elective.
Combined group is a group of companies that have common
ownership and are engaged in a unitary business, and at least
one company is subject to tax under this chapter. It includes
all business entities except as provided for under any section
of the Corporation Business Tax Act (1945), P.L.1945, c.162
(C.54:10A-1 et seq.). See N.J.S.A. 54:10A-4(z).
Note: Pursuant to N.J.S.A. 54:10A-4(h) a combined group is a
taxpayer for the purposes of the Corporation Business
Tax Act.
Common ownership means that more than 50% of the vot-
ing control of each member of a combined group is directly or
indirectly owned by a common owner or owners, either corpo-
rate or noncorporate, whether or not the owner or owners are
members of the combined group. Whether voting control is in-
directly owned shall be determined in accordance with section
318 of the federal Internal Revenue Code, 26 U.S.C. s.318.
See: N.J.S.A. 54:10A-4(aa). The Division interprets N.J.S.A.
54:10A-4(aa) to mean that all of the ownership rules, includ-
ing the benecial and constructive ownership rules of I.R.C.
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section 318 apply since the denition of common ownership
states that the control can be direct or indirect.
Managerial member is the common parent corporation if that
corporation is a taxable member. If the common parent corpo-
ration is not a taxable member, the group must select a taxable
member to be its managerial member or, at the discretion of
the Director or upon failure of the combined group to select its
managerial member, the Director will designate a taxable mem-
ber of the combined group as managerial member.
Member is a business entity that is a part of a combined group,
unless otherwise excluded. See “Corporations Required to
File” for more information.
Taxable member is a member that is subject to tax pursuant
to the Corporation Business Tax Act (1945), P.L.1945, c.162
(C.54:10A-1 et seq.). See N.J.S.A. 54:10A-4().
Nontaxable member is a member that is not subject to tax.
See N.J.S.A. 54:10A-4(ee).
Unitary business is a single economic enterprise that is made
up either of separate parts of a single business entity or of a
group of business entities under common ownership that are
suciently interdependent, integrated, or interrelated through
their activities so as to provide a synergy and mutual benet
that produces a sharing or exchange of value among them and
a signicant ow of value among the separate parts. A unitary
business shall be construed to the broadest extent permitted
under the Constitution of the United States. See N.J.S.A.
54:10A-4(gg) and TB-93, The Unitary Business Principle and
Combined Returns, for more information and the full denition
of a unitary business for the purposes of combined reporting.
Combined Return Filing Methods
P.L. 2023, c.96, included several changes impacting
combined groups for privilege periods ending on and
after July 31, 2023, and in future privilege periods.
These changes may impact taxpayers’ decisions on their com-
bined return ling method option. As a result of the law change,
the Division of Taxation is providing a one-time exception to
prospectively allow a change to the combined group’s ling
methods. If a combined group chooses to select a dierent l-
ing method on the 2023 CBT-100U, the method selected on a
prior year CBT-100U will not be binding for subsequent years,
and the method selected on the 2023 CBT-100U, will be con-
sidered the start of the binding period for the purposes of
N.J.S.A. 54:10A-4.11(b).
A combined return is a ling method for a group of business
entities in a unitary business. Determining the combined group
members involves imposing certain statutory limitations, which
aect the treatment of income, allocation factors, and tax attri-
butes. This decision is commonly referred to as “world-wide vs.
water’s-edge.” As an alternative, there is an option to le the
New Jersey combined return as an “aliated group” as dened
by statute.
Information on combined return ling methods is available in
TB-109, Combined Group Filing Methods for Privilege Periods
Ending on and After July 31, 2023.
returns in-
clude only entities with signicant business operations within
the United States, with several inclusions and exceptions.
reporting is not elective. See N.J.S.A. 54:10A-4.8; N.J.S.A.
54:10A-4.10; and N.J.S.A. 54:10A-4.11.
Elective When making a world-
wide group election, the combined group must include all of the
income, attributes, and allocation factors of all of the worldwide
business entities that are members of the unitary combined
group, regardless of whether such members led a federal tax
return or whether such members led a federal consolidated
return(s). See N.J.S.A. 54:10A-4(kk) for more information.
For the purposes of the
aliated group election, “aliated group” is dened pursuant to
N.J.S.A. 54:10A-4(x). Only business entities that are U.S. do-
mestic corporations (as dened in N.J.S.A. 54:10A-4(x)) for the
purposes of the denition can be included in the aliated group
return. Non-U.S. corporations that do not le a federal return
cannot be included in a New Jersey aliated group combined
return.
Note: In most cases, the New Jersey aliated group com-
bined return constitutes the multinational corporation’s
entire U.S. footprint.
The sole U.S. domestic corporation in a world-wide combined
group cannot make the aliated group election on its own. In
this situation, the combined group must le a water’s-edge or
world-wide group combined return.
An aliated group election by the U.S. domestic corporations
does not relieve the non-U.S. corporations of their New Jersey
Corporation Business Tax liability. Thus, a non-U.S. corporation
organized outside the United States that does not le a federal
return, but has with New Jersey, must still le a separate New
Jersey Corporation Business Tax return.
Allocation Methods for Combined Returns
For privilege periods ending on and after July 31,
2023, New Jersey has adopted the Finnigan method
as the allocation method for all combined groups
(see N.J.S.A. 54:10A-4.7.e and N.J.S.A. 54:10A-4.11.c). Addi-
tionally, the combined group is treated as one taxpayer for pur-
poses of sourcing the unitary receipts. Under the Finnigan
method, the allocation factor attributes in the numerator are de-
rived from all of the members of the combined group.
Note: For combined returns led for privilege periods ending
before July 31, 2023, the allocation method was tied to
the ling method (see TB-89(R) for more information on
allocation methods for previous years).
Nexus
For privilege periods ending on and after July 31,
2023, corporations will be deemed to have bright-
line economic nexus if during the corporation’s tax
year:
• The receipts derived from New Jersey sources are more
than $100,000, or
• 200 or more separate transactions are delivered to custom-
ers in New Jersey.
Corporations that do not meet either threshold above, and do
not create nexus in another way, do not have nexus even if
they have New Jersey receipts. Information on nexus is avail-
able in TB-108, Nexus for Corporation Business Tax for Privi-
lege Periods Ending on and after July 31, 2023.
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Each member that has nexus with New Jersey is subject to
the $2,000 minimum tax. A member of a combined group has
nexus if the member meets the standards of N.J.S.A. 54:10A-2
as either part of the unitary business of the combined group
or independent of the combined group. If a member does not
have nexus with New Jersey, the member is not subject to the
minimum tax.
Unitary Partnerships. Corporate partners that are unitary
with a partnership that have either New Jersey receipts or
transactions with New Jersey customers have nexus with New
Jersey if the corporate partner’s proportionate share of the
partnership’s activities in New Jersey meet the thresholds for
bright-line economic nexus. Corporate partners and unitary
partnerships must use the ow-through method of accounting
and the nexus determination is based on the corporate part-
ner’s proportionate share of the partnership’s activities.
The attributes and activities of the dis-
regarded entity are included with the member’s (owner of the
disregarded entity) attributes and activities when determining
whether the member has nexus.
Note: A taxpayer that is not in a unitary business relationship
with a combined group must le a separate return if the
taxpayer has nexus with New Jersey and the manage-
rial member of the combined return does not make the
election to le the aliated group combined return.
Corporations Required to File
If one member of a combined group has nexus, the combined
group must le a New Jersey combined return.
In general, every corporation existing under the laws of the
State of New Jersey is required to le a Corporation Business
Tax return.
A foreign corporation has nexus if that foreign corporation:
1. Holds a general certicate of authority to do business in this
State issued by the Secretary of State; or
2. Holds a certicate, license, or other authorization issued by
any other department or agency of this State authorizing the
company to engage in corporate activity within this State; or
3. Does business in this State; or
4. Employs or owns capital in this State; or
5. Employs or owns property in this State; or
6. Maintains an oce in this State; or
7. Derives receipts within this State that meet the thresholds
for bright-line economic nexus; or
8. Engages in contacts within this State; or
9. Maintains a stock of goods in New Jersey and makes deliv-
eries to customers from such stock.
Foreign corporations see N.J.A.C. 18:7-1.6; N.J.A.C. 18:7-
1.8; N.J.A.C. 18:7-1.9; N.J.A.C. 18:7-1.10; N.J.A.C. 18:7-1.11;
N.J.A.C. 18:7-1.14 and TB-108 Nexus for Corporation Busi-
ness Tax for Privilege Periods Ending on and After July 31,
2023, for more information on nexus.
The attributes and activities of a QSSS, disregarded entity, or
unitary partnership are included as part of its parent corpora-
tion’s attributes and activities when determining whether the
corporation has nexus.
A foreign corporation that is a partner of a New Jersey partner-
ship is deemed subject to tax in the State and must le a return.
Corporations Claiming P.L. 86-272. If the entire combined
group is claiming immunity from tax pursuant to P.L. 86-272,
each member must complete Schedule N, Nexus – Immune
Activity Declaration and the Nexus Questionnaire. In addition,
the combined group must complete page 1, the Members and
Aliates Schedule, and Schedules A, A-2, A-3, and A-4. Pay-
ment for the related minimum tax liability and the installment
payment (if applicable) must be submitted. P.L. 86-272 lers
are not subject to the surtax imposed by N.J.S.A. 54:10A-5.41.
New Corporations. 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 taxable status
in New Jersey must le a Corporation Business Tax return.
If
the entity makes an election to be treated as a C corporation
under either N.J.S.A. 54:10A-4() or N.J.S.A. 54:10A-5.22.d
(see TB-105 for information on electing C corporation status), it
is subject to the rules of combined reporting. An entity included
on a combined return will be taxed in the same manner as the
other members of the combined group. A copy of Form 1120-S
as led must be submitted. The entity does not need to le a
CBT-100S for the privilege periods that it is included as a mem-
ber of the combined group.
A DISC
must complete this return as though no election had been
made under Sections 992-999 of the Internal Revenue Code. A
DISC must complete all applicable schedules on the return.
Combinable Captive Insurance Companies. Combinable
captive insurance companies are not exempt from the Corpo-
ration Business Tax.
Note: A regular captive insurance company that does not
meet the denition of a combinable captive insurance
company in N.J.S.A. 54:10A-4(y) is still exempt from the
Corporation Business Tax.
Captive Investment Company. Taxpayers that
meet statutorily enumerated denitions of a “captive”
must be included as members of the combined
group.
Captive Regulated Investment Company. Taxpay-
ers that meet statutorily enumerated denitions of a
“captive” must be included as members of the com-
bined group.
Captive Real Estate Investment Trust. Real estate
investment trusts that meet the statutorily enumer-
ated denitions of a “captive” must be included as
members of the combined group.
For more information, see TB-86(R), Included and Excluded
Business Entities in a Combined Group and the Minimum Tax
of a Taxpayer that is a Member of a Combined Group.
Foreign Sales Corporations (FSC). An FSC must com-
plete this return as though no election had been made under
Sections 922-927 of the Internal Revenue Code. FSCs must
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complete all applicable schedules on the return. Under Sec-
tion 5, P.L. 106-519, no corporation may elect to be an FSC
after September 30, 2000.
Financial Business Corporations. Corporations that qualify
as nancial businesses, those that derive 75% of their gross in-
come from the nancial activities enumerated at N.J.A.C. 18:7-
1.16(a)1 through (a)7, must use Form CBT-100U if it meets the
combined group ling requirements.
Banking Corporations. A banking corporation ling as part
of a combined group that uses a scal year basis must align
its privilege period with the combined group. For more infor-
mation, see TB-91, Banking Corporations and Combined Re-
turns. The combined return must be led electronically even
if one or more members of the combined group is a banking
corporation.
Professional Corporations. Corporations formed under
N.J.S.A. 14A:17-1 et seq. or any similar laws of a possession
or territory of the U.S., a state, or political subdivision thereof,
must complete Schedule PC. Examples of licensed profes-
sionals include certied public accountants, architects, optom-
etrists, professional engineers, land surveyors, land planners,
chiropractors, physical therapists, registered professional
nurses, dentists, osteopaths, physicians and surgeons, doctors
of medicine, doctors of dentistry, podiatrists, veterinarians, and
attorneys.
Inactive Corporations. Inactive corporations that, during the
period covered by the return, did not conduct any business, did
not have any income, receipts or expenses, and did not own
any assets must complete Schedule I – Certicate of Inactivity
in addition to page 1, the Members and Aliates Schedule,
and Schedules A, A-2, A-3, and A-4. Payment for the related
minimum tax liability and the installment payment (if applicable)
must be submitted electronically.
There are instances when a
portion of a member’s business operations are independent of
the unitary business activity of the combined group. Only the
income, attributes, and allocation factors related to the portion
of a company’s operations that are part of a unitary business
of the combined group are included in the calculation of the
combined group’s entire net income and allocation factor. The
remaining portion of a member’s business operations may
be subject to tax separately from the combined group if such
member individually conducts business in New Jersey or with
another combined group (if it is engaged in a unitary business
with that combined group that also conducts business in New
Jersey and les a CBT-100U).
Note:
A combined group member with business operations
that are independent of the unitary business activity
of the combined group must report such income on
Schedule X.
Schedule X will be used to calculate the
New Jersey taxable net income of that separate activity
income that must be reported in Part III of Schedule A
,
Section I and Section II
of the CBT-100U.
Include a copy
of Schedule X if completed.
See Schedule X instructions
for more information.
See “Additional Forms and Instructions” for details on obtaining
Schedule X.
A taxpayer that was
a member of a combined group ling a New Jersey combined
return for part of the group privilege period and subsequently
departs the combined group to le on a separate entity basis
must report the income for months subsequent to departing the
combined group on a separate return (Form CBT-100) unless
the member joined a second combined group that les a New
Jersey combined return. The taxpayer ling a separate return
would not report the income on CBT-100 for the months the
member was part of the combined group. Likewise, a taxpayer
that joined a second combined group that les a New Jersey
combined return would only report on the second group’s
return the income for the months the member was part of the
second combined group. If determining what amount of income
is attributable to the portions of the 12-month period are for
the periods before and after departing a combined group, the
taxpayer must prorate their income/losses and receipts.
Note: For a taxpayer that is a member of a combined group
ling a New Jersey combined return and that member
properly dissolved and received tax clearance during
the group privilege period, the income and tax liabilities
of that member for the part of the group privilege period
the member existed prior to dissolution must be reported
on the combined return.
Included and Excluded Entity Types
Not all business entities are included in a combined group.
The lists below provide information on which entities are or are
not included. Additional information is available in TB-86(R),
Included and Excluded Business Entities in a Combined Group
and the Minimum Tax of a Taxpayer that is a Member of a
Combined Group.
Included Entity Types
• U.S. Corporations
• Foreign Corporations
• Casino Licensees
• Banking Corporations
• Financial Corporations
• Limited Liability Companies (unless treated as partnerships
or disregarded entities for federal purposes)
• Foreign Limited Liability Companies (unless treated as part-
nerships or disregarded entities for federal purposes)
• S Corporations and Qualied Subchapter S Subsidiaries
that have elected to be taxed as C corporations for New
Jersey purposes (regardless of whether the election is un-
der N.J.S.A. 54:10A-4() or N.J.S.A. 54:10A-5.22.d). See
TB-105 for information about electing C corporation status.
• Combinable Captive Insurance Companies
• Professional Corporations
• Captive investment companies as dened in N.J.S.A.
54:A-4(hh)
• Captive regulated investment companies as dened in
N.J.S.A. 54:A-4(jj)
• Captive real estate investment trusts as dened in N.J.S.A.
54:10A-4(ii)
• Public utilities as dened at N.J.S.A. 54:10A-4(q) that are
not excluded pursuant to N.J.S.A. 54:10A-4.6(k)
• Any other business entities however and/or wherever in-
corporated or formed that are treated as corporations for
federal purposes except when excluded by statute or as
described below
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Casino Licensees
Pursuant to the Casino Control Act, any business conducted
by an individual, partnership, or corporation or any other entity,
or any combination thereof, holding a license in New Jersey
is required to le a consolidated return. A consolidated return
is similar to an aliated group combined return. See N.J.S.A.
5:12-148. All Casino licensees are taxable members. The ali-
ated businesses that are unitary with the casino licensees must
also be included when completing CBT-100U.
Note: Casino licensees ling as members of a combined
group on Form CBT-100U meet the consolidated ling
requirements of both the Corporation Business Tax Act
and Casino Control Act (N.J.S.A. 5:12-148). No other
additional consolidated return is required for the privi-
lege period as long as the casino licensee is included
as a member of the New Jersey combined group ling
the CBT-100U. Casino licensees should report their net
gaming receipts in accordance with U.S. G.A.A.P. and
federal tax purposes on Schedule J.
A business entity that is treated as a disregarded entity for
federal income tax purposes is also treated as a disregarded
entity for New Jersey Corporation Business Tax purposes pur-
suant to N.J.S.A. 42:2C-92. Disregarded entities also include
legal partnerships that are disregarded entities for federal
purposes. A disregarded entity is not itself a member of a
combined group. However, the tax attributes of a disregarded
entity are reported by a member of a combined group when the
member owns the disregarded entity. The attributes of a disre-
garded entity owned by a member of a combined group are in-
cluded in the income and allocation factor of that member and
the combined group. In making a determination of which mem-
bers are included in a water’s-edge combined group pursuant
to N.J.S.A. 54:10A-4.11, the disregarded entity’s attributes
shall be used by the member that owns the disregarded entity.
A disregarded entity is not subject to the $2,000 minimum tax
as a member of a combined group because a disregarded
entity is not a member of the combined group. However, if a
disregarded entity is part of a unitary business of a combined
group, the owner of the disregarded entity will be a member of
the combined group and must be included as part of the com-
bined group except as otherwise excluded.
Entities that File as Partnerships for Federal Purposes
Partnerships, limited partnerships, or limited liability compa-
nies treated as partnerships for federal purposes are business
entities that can be unitary with a combined group. However,
these entities are not members of a combined group for New
Jersey Corporation Business Tax purposes. Their income
ows through to the corporate partners that are members of
the combined group. Partnerships, limited partnerships, and
limited liability companies that are treated as partnerships for
federal purposes are not subject to the $2,000 minimum tax as
members of a combined group because they are not members
of the combined group. However, Form NJ-CBT-1065 must still
be led.
Excluded Entity Types
• S Corporations and Qualied Subchapter S Subsidiaries
that do not elect inclusion in the combined group under
N.J.S.A. 54:10A-4() or did not elect to be taxed as a C
corporation under N.J.S.A. 54:10A-5.22.d. See TB-105 for
information about electing C corporation status
• Captive Insurance Companies that do not meet the deni-
tion of a Combinable Captive Insurance Company as de-
ned in N.J.S.A. 54:10A-4(y)
• All other insurance companies that are not Combinable
Captive Insurance Companies
• Corporations exempt from the Corporation Business Tax
under N.J.S.A. 54:10A-3
• Corporations that are regulated, in whole or in part, by the
Federal Energy Regulatory Commission, the New Jersey
Board of Public Utilities, or similar regulatory body of an-
other state, with respect to rates charged to customers for
electric or gas services and water and wastewater services.
However, per N.J.A.C. 18:7-21.3(f), a utility may petition the
Director to join as a member of a combined group.
• Real estate investment trusts, investment companies,
and regulated investment companies of which at least 50
percent of the shares, by vote or value, are owned or con-
trolled, directly or indirectly, by a state or federally chartered
bank, savings bank, or savings and loan association with
assets that do not exceed $15 billion that otherwise do
not meet the denition of a “captive” real estate investment
trusts, investment companies, or regulated investment
companies.
A taxpayer that has nexus with New Jersey that is excluded
return.
The 2023 Corporation Business Tax return should only be
used for accounting periods ending on and after July 31, 2023,
through June 30, 2024.
New Jersey Corporation Business Tax returns and payments,
except estimated payments, are due the 15th day of the month
following the month the federal corporate income tax return is
originally due. If the due date falls on a weekend or a legal hol-
iday, the return and payment are due on the following business
day. Use the following schedule for 2023 CBT-100U forms and
payments:
If accounting
period ends on:
July 31,
2023
Aug. 31,
2023
Sept. 30,
2023
Oct. 31,
2023
Nov. 30,
2023
Dec. 31,
2023
Due date for
ling is:
Dec. 15,
2023
Jan. 15,
2024
Feb. 15,
2024
Mar. 15,
2024
Apr. 15,
2024
May 15,
2024
If accounting
period ends on:
Jan. 31,
2024
Feb. 28,
2024
Mar. 31,
2024
Apr. 30,
2024
May 31,
2024
June 30,
2024
Due date for
ling is:
June 15,
2024
July 15,
2024
Aug. 15,
2024
Sept. 15,
2024
Oct. 15,
2024
Nov. 15,
2024
A New Jersey combined return must be led for the account-
ing period (calendar or scal, as applicable) of the managerial
member of the combined group, or part of the period, begin-
ning on the date the combined group acquired a taxable status
in New Jersey regardless of whether it had any assets or con-
ducted any business activities. All accounting periods must end
on the last day of the month even if the managerial member
uses the same 52-53 week accounting year that is used for
federal income tax purposes. The Division is aware that tax-
payers cannot properly input dates for 52-53 week accounting
years. In this case, taxpayers must enter the last day of the
month. Attach a rider showing the correct accounting period.
- 6 -
The combined group’s reporting period for the New Jersey
combined return is the same tax period that the managerial
member uses for federal purposes. Generally, this is the same
privilege period as the federal consolidated return since in
most instances the managerial member is one of the members
included in the federal consolidated return. Any members that
operate under a dierent return period must le a short-period
return to align their privilege periods with the group’s privilege
period. This is done on a separate return. Aected mem-
bers must also scalize or annualize their income and attri-
butes reported as part of the combined group. See N.J.S.A.
54:10A-4.10.c and N.J.S.A. 54:10A-4.8.b.
Extension of Time to File
The Tentative Return and Application for Extension of Time to
File, Form CBT-200-T, must be led and paid electronically.
You can also check with your software provider to see if the
software you use supports ling of extensions.
Combined groups ling Form CBT-100U will automatically re-
ceive a six-month extension only if they have paid at least 90%
of the tax liability and timely led Form CBT-200-T.
An extension of time is granted only to le the New Jersey
combined return. There is no extension of time to pay the tax
due. The Division will notify you only if we deny your extension
request, but not until after you actually le your return. Pen-
alties and interest are imposed whenever tax is paid after the
original due date.
Note: An extension payment must include any applicable pro-
fessional corporation (PC) fees and/or installment pay-
ments. See the online application for more information.
How to Pay
The managerial member acts as the agent on behalf of the
combined group and is responsible for making payments on
behalf of the group.
To make payments electronically, go to the Division of Taxa-
tion’s website. Managerial members who do not have access
to the internet can call the Division’s Customer Service Center
at (609) 292-6400.
If registered, payments can also be made by Electronic Funds
Transfer (EFT). For information or to enroll in the program, visit
the Division of Revenue and Enterprise Services’ website, call
(609) 292-9292, fax (609) 984-6681, or write to NJ Division of
Revenue and Enterprise Services, EFT Section, PO Box 191,
Trenton, NJ 08646-0191.
Note: Managerial members that are required to remit pay-
ments by EFT can satisfy the EFT requirement by mak-
ing e-check or credit card payments.
Penalties and Interest
Each taxable member is jointly and severally liable for any
penalties and interest assessed. See N.J.S.A. 54:10A-4.8
and N.J.S.A. 54:10A-4.10.
. If the amount paid with the Tentative
Return, Form CBT-200-T, is less than 90% of the tax liability
computed on Form CBT-100U, or in the case of a combined
group with a preceding return covering a full 12-month period
that 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 preceding ac-
counting year, the combined group may be liable for a penalty
of 5% per month or part of a month not to exceed 25% of the
amount of underpayment from the original due date to the date
of actual payment.
Late Filing Penalty. 5% per month or part of a month 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
date on which the rst notice of delinquency in ling the return
was sent, the penalty will accrue at 5% per month or part of a
month 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 tax due paid after
the due date for ling the return may be imposed.
Interest. 3% above the average predominant prime rate for
every month or part of a month the tax is unpaid, compounded
annually. 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.
Note: The average predominant prime rate is the rate as
determined by the Board of Governors of the Federal
Reserve System, quoted by commercial banks to large
businesses on December 1st of the calendar year im-
mediately preceding the calendar year in which payment
was due or as redetermined by the Director in accor-
dance with N.J.S.A. 54:48-2.
Collection Fees. In addition, if the tax bill is sent to our col-
lection agency, a referral cost recovery fee of 11% of any tax,
penalties, and interest due will be added to the liability in accor-
dance with N.J.S.A. 54:49-12.3. If a certicate of debt is issued
for the outstanding liability, a fee for the cost of collection of the
tax may also be imposed.
Underpayment of Estimated Tax. To calculate the amount of
interest for the underpayment of estimated tax, complete either
Form CBT-160-A or Form CBT-160-B. If the combined group
qualies for any of the exceptions to the imposition of interest
for any of the installment payments, Part II must be completed
and submitted with the return as evidence of such exception.
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.
In
addition to any other liabilities imposed by law, a foreign corpo-
ration 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).
Amended Returns
To amend CBT-100U returns, use the CBT-100U form for the
appropriate tax year.
- 7 -
All CBT-100U amended returns must be submitted
electronically.
Any change or correction made by the Internal Revenue Ser-
vice to the federal taxable income must be reported to the Divi-
sion within 90 days.
Page 1 Line-by-Line Instructions
Enter the unitary ID number (this is the ID assigned to the man-
agerial member that begins with the letters “NU”), unitary group
name, and complete mailing address in the space provided on
the return. Also provide the managerial member’s FEIN, name,
complete mailing address, and contact information.
Check the box if this is an amended return.
If ling an amended return, enter the applicable code in the
boxes provided. If using code 10, “Other,” enter the reason in
the lines provided. If more space is needed, include a rider.
1. Change in allocation factor
2. IRS audit
3. Amended federal 1120 led
4. To take credit for payments/payments made by a
partnership
5. Adjustments to ENI
6. To change credit request to refund request or refund
request to credit request
7. Change in ling period
8. Change in tax credits reported
9. Adding or subtracting a combined return member
10. Other
Note: The managerial member cannot amend Form CBT-100U
to remove an S corporation from the group if the the
only reason is so that the S corporation can le Form
CBT-100S. Nor can a return be amended to change the
ling method (i.e., water’s-edge group, world-wide or
aliated group election).
Check the box to indicate which ling method is being used.
A New Jersey combined return will default to a water’s-edge
group, unless the managerial member makes a world-wide or
aliated group election (N.J.S.A. 54:10A-4.11). The election
must be made on a timely led original combined return in the
privilege period it becomes eective. The world-wide group
election and aliated group election cannot be made at the
same time, and the managerial member can only choose one
election. The elections are binding for the privilege period of
the election plus ve subsequent privilege periods. If ling on
an aliated group or world-wide basis, indicate the number of
years into the election period of the combined group.
P.L. 2023, c.96, included several changes impact-
ing combined groups for privilege periods ending
on and after July 31, 2023, and in future privilege
periods. These changes may impact taxpayers’
decisions on their combined return ling method option. As a
result of the law change, the Division of Taxation is providing
a one-time exception to prospectively allow a change to the
combined group’s ling methods. If a combined group
chooses to select a dierent ling method on the 2023 CBT-
100U, the method selected on a prior year CBT-100U will not
be binding for subsequent years, and the method selected
on the 2023 CBT-100U, will be considered the start of the
binding period for the purposes of N.J.S.A. 54:10A-4.11(b).
Check the box to indicate the entire combined group is claim-
ing P.L. 86-272.
Note:
For the purposes of N.J.S.A. 54:10A-4.7.e,
the group is one taxpayer. So although a
member may have P.L. 86-272 protection for
a single member, the combined group will not have P.L.
86-272 protection if one of the other members exceeds
the protections of P.L. 86-272 or if one of the other
members has activities in New Jersey that are not pro-
tected by P.L. 86-272.
If claiming P.L. 86-272, Schedule N, Nexus – Immune Activity
Declaration and the Nexus Questionnaire, must be completed
for each member. In addition the combined group must com-
plete page 1, the Members and Aliates Schedule, and Sched-
ules A, A-2, A-3, and A-4. Payment for the related minimum
tax liability and the installment payment (if applicable) must be
submitted. P.L. 86-272 lers are not subject to the surtax im-
posed by N.J.S.A. 54:10A-5.41.
Enter the greater of line 4a or line 4b, from the Group Com-
bined Total column of Schedule A, Section II, Part III.
Enter amount from the Group Combined column of Schedule
A-3, Part I, line 30.
CBT Tax Liability
Subtract line 2 from line 1.
Line 4 – Total Surtax on Taxable Net Income of Combined
Enter amount from
the Group Combined Total column of
Schedule A, Section II, Part III, line 7.
A taxpayer should not calculate any surtax if their tax year begins
on and after January 1, 2024.
Add line 3 and line 4.
Note: A taxpayer with a short period return that began on or
after January 1, 2024, and ended on or before June 30,
2024, with a taxable net income in excess of $10 million
is subject to the Corporate Transit Fee. See the Divi-
sion’s website for more information.
Line 6a – Number of Entities with Nexus
Enter the number of entities included in this return that have
nexus with New Jersey.
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Line 6b – Installment Payment Threshold
Multiply line 6a by $1,500.
Line 6c – Installment Payments
For tax years ending on and after July 31, 2023, the
threshold for making installment payments is the ag-
gregate of $1,500 for each member included on the
combined return.
The managerial member is required to make installment pay-
ments of estimated tax on behalf of the combined group. The
requirement for making these payments is:
• If the 2023 Total Tax Liability is greater than the ag-
gregate of $1,500 for each member included on the
combined return, the managerial member must make
installment payments toward 2024. These payments are to
be made electronically on Form CBT-150 and are due on
or before the 15th day of the 4th, 6th, 9th, and 12th months
of the tax year. If the combined group has 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. Information on making these payments can
be found on the Division’s website.
• If the 2023 Total Tax Liability does not exceed the ag-
gregate of $1,500 for each member included on the
combined return, installment payments may be made as
indicated above OR in lieu of making installment payments,
the managerial member may make a payment of 50% of the
2023 total tax liability. For a combined group that qualies
and wants to take advantage of this option, enter on line
6c, 50% of the amount on line 5. This will become part of
the payment to be made with the 2023 return and install-
ment payments will not be required. This payment should
be claimed as a credit when ling the 2024 return. There
are rare instances where tax credits can take the combined
group’s total tax liability to $1,500 or less. The only way a
combined group could use this estimated payment method
is if it claims such tax credit(s).
Line 7 – Professional Corporation Fees
Enter amount from the Group Combined Total column of
Schedule PC, line 9.
Line 8 – Total Tax and Professional Corporation Fees
Enter the total of lines 5, 6c, and 7.
Line 9 – Payments and Credits
Any payment not made under the unitary ID number, which
begins with the letters “NU,” must be transferred. Visit the Divi-
sion’s website for more information.
Include on this line:
• Installment tax payments made for 2023;
• Amounts paid with tentative return (form CBT-200-T);
• Any overpayment from the preceding tax return that the
taxpayer elected to have credited to the current year’s tax.
Do not include any amount of the overpayment that the tax-
payer elected to have refunded.
Note: Professional corporation installment payments from the
prior year may not be used to oset any current year tax
liability and are not eligible for refund.
Line 10 – Payments Made by Partnerships
Include the total payments made by partnerships on behalf
of the members. Total the amounts reported in column 6 of
Schedule P-1, Part I for all members. Submit copies of the
NJK-1s or K-1s (as applicable) reecting payments made by
each partnership entity.
Note: Unitary partnerships are exempt from paying the portion
of the partnership withholding tax (N.J.S.A. 54:10A-
15.11) that is directly or indirectly (in the case of a
tiered partnership) attributable to the member of the
combined group that is a corporate partner in the unitary
partnership.
Line 11a – Total Refundable Tax Credits Refunded to
Members
Enter the amount from the Group Combined Total column of
Schedule A-3, Part II, line 6. This amount will be refunded to
the managerial member, which is responsible for distributing to
the appropriate group members.
Enter the amount from the Group Combined Total column of
Schedule A-3, Part II, line 7.
Line 12 – Total Payments and Credits
Add lines 9, 10, and 11b and enter the result.
Compare lines 12 and 8.
• If line 12 is less than line 8, you have a balance due. Com-
plete lines 13, 14, and 15.
• If line 12 is more than line 8, you have an overpayment.
Complete line 14 (if applicable) and lines 16 through 18.
Subtract line 12 from line 8 and enter the dierence.
Include any penalties and interest. See “Penalties and Interest”
for information.
Note: If the group has an overpayment or no tax liability and
has calculated penalties and interest due, such amounts
must be added to the balance due line or subtracted
from the overpayment.
Enter the total of line 13 and line 14.
Line 16 – Amount Overpaid
Subtract the sum of line 8 and line 14 (if applicable) from the
amount on line 12.
Line 17 – Refund
Enter the amount of the overpayment to be refunded. This
amount will be refunded to the managerial member.
Line 18 – Credit to 2024
Enter the amount of the overpayment that you want to credit to
the 2024 combined group tax liability.
Signature
Each return must be signed by an ocer of the managerial
member who is authorized to attest to the truth of the state-
ments contained therein and to acknowledge that they un-
derstand they are required to include copies of their federal
- 9 -
return(s), forms, and schedules. 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 all
of the members of the combined group.
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-em-
ployed, 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 aairs of such corporation.
Non-U.S. Corporations and Other
There are situations where a corporation does not have a
federal ID number or does not have its own separate distinct
federal ID number. When entering the ID number for these
corporations, enter 999-999-991, 999-999-992, 999-999-993,
etc., using consecutive numbers for each additional corporation
included in the return.
If the corporation has its own distinct
New Jersey State ID number, enter that number instead.
Part I and II
All members that were part of the group for any part of the tax
period must be included on this schedule. For each member,
enter the corporation name, federal employer identication
number (FEIN), and, if applicable, enter an Entity Type code
and check any box(es) that apply to the member.
If a member is an owner of a disregarded entity, attach a rider
detailing ownership.
If a member is inactive, they must complete Schedule I and
include it with the return.
For entity types listed below, enter the corresponding letter.
Otherwise, leave blank.
Entity Types
H – Holding Company
B – Banking Corporation
F – Financial Corporation
CC – Combinable captive insurance company
CT – Captive real estate investment trust
CI – Captive investment company
CR – Captive regulated investment company
S – Federal S Corporation (1120-S ler)
Q – Federal QSSS (1120-S ler)
L – Casino Licensee
M – Cannabis Licensee
P – Public Utility
Part III and IV
These sections of the schedule are used to add and remove
members from the group. Any members included on this
schedule that were not included on the last CBT-100U that was
led will be added to the group.
Part V
This section of the schedule is used to report members that
have been excluded from the combined group.
Part VI
Any dierences between members of the consolidated group
and members on the New Jersey combined return must be
reconciled in this section of this schedule. Furthermore, dier-
ences between federal taxable income and taxable income/
(loss) of combined group as reported on Schedule A, Section
II, Part II, line 1(c), column c must be reconciled here.
Note: If ling under the aliated group election, the New Jer-
sey combined group must match the members reported
in Section A.
List the entities in-
cluded in the federal consolidated return(s). List the corporation
name, federal employer identication number (FEIN), and the
amount on line 28 of the federal Form 1120 or the appropriate
line of any other federal corporate return that was led. The
entities listed must match the entities reported on the federal
Form 851.
Note: Cannabis licensees must use the amounts reported for
federal purposes. Do not include any New Jersey ad-
justments to cannabis licensee income when completing
the Reconciliation with Consolidated Group.
Section B – Members Included in the New Jersey Com-
List any members
included in the New Jersey combined group (CBT-100U) not
included in Section A. Any member of the New Jersey CBT-
100U that is not reported in Section A (federal consolidated
group) must be reported in this section.
Section C – Members Reported in Section A Not Included
List any entity from
Section A that is not part of the New Jersey combined group.
Any member of the federal consolidated group that is reported
in Section A and is not a member of the CBT-100U must be re-
ported in Section C. Members in this section will not be part
of the New Jersey combined return.
Any
adjustment to federal taxable income must be reported in this
section. Include a rider detailing each adjustment and the rea-
son for the adjustment.
Schedule A – Members/Totals
Starting for Tax Year 2023, Schedule A has been
split into two parts. The managerial member must
complete Schedule A, Section I, Parts I–III for each
member. Schedule A , Section II, Parts I–III must be completed
with the total amounts of all members reported. The lines in
Schedule A, Section I and Section II are the same. Some lines
will apply only to the members section or only to the totals
section.
Intercompany Eliminations
On Schedule A, Section II, column (a), enter the total amounts
of all members prior to intercompany eliminations and adjust-
ments. In column (b), enter the intercompany eliminations and
adjustments. In column (c), enter the total amounts for the
combined group after intercompany eliminations and adjust-
ments. An item of income that was excluded under another
provision cannot be included in intercompany eliminations.
- 10 -
The relevant portions of N.J.S.A. 54:10A-4.6 require the in-
come of the members derived from the unitary business of
the combined group to include what was reported for federal
purposes (federal taxable income before federal net operating
losses and federal special deductions) modied for New Jer-
sey modications (additions and subtractions) required by the
Corporation Business Tax Act. See N.J.S.A. 54:10A-4(k). For a
member of the combined group that is a non-U.S. corporation,
N.J.S.A. 54:10A-4.6.b requires all of the income be included
even if the entity did not le a federal return. In instances
where the other members of the combined group led a federal
form 5471 with the IRS reporting the non-U.S. members in-
come, the form 5471 may be used if the non-U.S. member did
not le Form 1120-F. However, the copy of the Form 5471 that
was led with the federal government must be included with
the combined return. The member’s income and tax attribute
data from Form 5471 must be entered in Part I of Schedule A
in that member’s column as though the taxpayer led a fed-
eral return. If a non-U.S. corporation did not le federal Form
1120-F or was not reported on federal Form 5471, it must
complete an 1120-F reporting its income and tax attributes as
though the entity led a federal return. For New Jersey pur-
poses, on Schedule A, the non-U.S. corporation will make the
additions and deductions. All data must match the federal
Note: Members that only use I.F.R.S. as their method of ac-
counting can use I.F.R.S. when reporting their income;
however, the member must include a rider noting the
potential dierences, if any, from the rest of the group.
formed in a foreign nation with a tax treaty with the U.S.
Members that were formed in a foreign nation with a compre-
hensive tax treaty with the United States do not include income
or losses excluded or exempted from federal taxable income
under the terms of the treaty in their New Jersey entire net in-
come. However, no other deduction, exclusion, or elimination is
permitted for the treaty excluded or exempted income or loss.
The combined group must keep track of the income, deduc-
tions, intercompany transactions, losses, and other attributes
of each member to ensure such treaty protected items are not
included on the Schedule A, J, S, P-1, R, X, Form 500, Form
306, and any other form/schedule.
A Water’s-Edge or Aliated combined group composed of the
members reporting GILTI for federal purposes cannot eliminate
the GILTI for New Jersey purposes if the underlying income
that generated the GILTI was excluded from Entire Net Income.
income
If the member les a federal tax return, only include the mem-
ber’s eectively connected income or loss reported for federal
purposes, as modied by the provisions of the Corporation
Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et
seq.). If the member does not le a federal tax return but has
United States source income or loss, only include that United
States source income or loss, as modied by the provisions
of the Corporation Business Tax Act (1945), P.L.1945, c.162
(C.54:10A-1 et seq.), to the extent that United States source
income or loss would otherwise be eectively connected in-
come or loss if the member had been conducting a business
that is eectively connected to the United States. For the pur-
pose of determining what income or loss to include in entire
net income, the member must take into account only the items
of expense and allocation factor receipts attributable to that
income or loss. Do not include expenses and receipts attribut-
able to excluded income or losses.
Note: A Water’s-Edge or Aliated combined groups composed
of the members reporting GILTI for federal purposes
cannot eliminate the GILTI for New Jersey purposes
if the underlying income that generated the GILTI was
excluded from Entire Net Income. This is true even for
the foreign corporation member that had the underlying
income which generated the GILTI. Once the underlying
income is excluded as a result of the statutes, there is
no stream of income to eliminate the GILTI against.
All members must include all of their worldwide income. Mem-
bers that are non-U.S. corporations must include their income
regardless of the terms of a tax treaty applicable to the mem-
ber. Members that are Non-U.S. corporations are entitled to the
same deductions that members that are U.S. corporations are
allowed for federal purposes, to the extent such deductions are
allowed under the Corporation Business Tax Act.
Note: GILTI may be eliminated as long as the underlying in-
come is included in Entire Net Income.
Federal Consolidated Return Principles
Combined returns are not necessarily the same as a consoli-
dated return, although they are similar. The principles set forth
in the Treasury regulations promulgated under Section 1502
of the Internal Revenue Code generally apply to the extent
consistent with the New Jersey Corporation Business Tax Act
and the unitary business principle to a combined group lling
a New Jersey combined return. See N.J.S.A. 54:10A-4.6(h).
However, for purposes of the New Jersey Corporation Busi-
ness Tax Act, the starting point for taxable income is entire
net income before net operating losses and special deduc-
tions with several modications for additions and deductions.
See N.J.S.A. 54:10A-4.6.e; N.J.S.A. 54:10A-4(k); N.J.S.A.
54:10A-4(bb); and MCI Communication Services, Inc. v. Direc-
tor Division of Taxation, Docket No. 013905-2010, (Tax Court
of New Jersey 2015); armed 2018 N.J. Super. Unpub. LEXIS
1401; cert. denied 195 A.3d 528 (October 18, 2018).
Note: If the members of the combined group were required
to reduce their tax attributes for federal purposes as
a result of a discharge of indebtedness, the members
must also do so for New Jersey purposes in the same
manner.
For the purposes of applying I.R.C. § 163(j) and N.J.S.A.
54:10A-4(k)(2)(K), the members included in a New Jersey
combined return will be treated in the same manner as though
they led a single federal consolidated return. This is true re-
gardless of whether the members of the New Jersey combined
return are on one federal consolidated return. See TB-87,
Guidance for Corporation Business Tax Filers and the IRC §
163(j) Limitation, for more information.
Note: For the purposes of I.R.C. § 163(j), New Jersey follows
the Coronavirus Aid, Relief, and Economic Security
(CARES) Act.
To the extent consistent with the Corporation Business Tax
Act (1945), the federal rules and regulations governing con-
solidated return net operating losses and net operating loss
- 11 -
carryovers apply to the New Jersey net operating loss car-
ryover provisions under N.J.S.A. 54:10A-4.6(h) as though
the combined group led a federal consolidated return, re-
gardless of how the members of the combined group led for
federal purposes. See N.J.S.A. 54:10A-4.6(m) and N.J.S.A.
54:10A-4.5.
N.J.S.A. 54:10A-4.6 allows a 100% intercompany dividend
elimination for dividends and deemed dividends between mem-
bers of the combined group included on the same New Jersey
combined return. This elimination is a pre-allocation elimination
that occurs in column (b) of Schedule A, Section II, Part I or
on Schedule A, Section II, Part II (above line 20). Dividends
and deemed dividends from subsidiaries that are not included
as members of the combined group are not eligible for this
elimination, but may be eligible for the dividend exclusion in
Schedule R if those dividends and deemed dividends received
from the excluded subsidiaries are part of the unitary business
of the combined group. An item of income that was excluded
under another provision cannot be included in intercompany
eliminations.
Note: If the underlying income of the foreign corporation that
generated the GILTI was excluded from entire net in-
come, the GILTI is not eliminated as there is no corre-
sponding amount to eliminate it against.
Part I – Computation of Entire Net Income
Cannabis Licensees. The income of a taxpayer,
that is registered as a cannabis licensee with New
Jersey, shall be determined without regard to 26
U.S.C. s.280E. However, Schedule A, Part I must be com-
pleted using the amounts that were reported for federal pur-
poses. The taxpayer will calculate the expenditures that would
have been eligible to be claimed as a federal income tax de-
duction (but that were disallowed for federal purposes because
cannabis is a controlled substance under federal law) and in-
clude those amounts in New Jersey modications to entire net
income in Part II. The taxpayer must attach a rider detailing the
math and the deductions being claimed.
Beginning with Tax Year 2023, GILTI is treated as a
dividend. Include a copy of federal Form 8992. The
I.R.C. § 250 deductions for GILTI and FDII are no
longer allowed.
Line 5 – Interest
Include a copy of federal Form 8916A if it was completed.
Line 8 and Line 9
Include a rider or schedules showing the same information
shown on federal Form 1120, Schedule D and/or Form 4797.
Gains and losses resulting from the disposition of property
where an I.R.C. § 179 expense deduction was passed through
to S corporation shareholders are not reported on federal Form
4797, and should be reported on Schedule A, Part I, line 10.
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, indicate so on a rider.
Line 18 – Interest
Include a copy of federal Form 8916A and/or federal
Form 8990 if completed.
Include a copy of federal Form 7205 if completed.
Line 28 – Taxable income before federal net operating loss
deductions and federal special deductions
The amount on line 28 must agree with line 28, page 1, of the
federal Form 1120 or the appropriate line of any other federal
corporate return that was led or would have been led by the
member.
The managerial member must include a copy of
the federal returns and any forms or schedules
that accompanied the returns that were led with
the Internal Revenue Service. Failure to include
the forms and schedules will result in an incomplete
New Jersey Corporation Business Tax return and the tax-
payer may be assessed penalties and interest for noncompli-
ance. See Technical Bulletin, TB-98, Federal Return and the
Forms and Schedules to Include with the Corporation Busi-
ness Tax Return.
Additions
Line 1a – Taxable income/(loss)
Enter the amount from Schedule A, Part I, line 28.
Line 1b – Separate activity income
Enter the amount of entire net income that is not derived from
the unitary business of the combined group. Also enter this
amount on Schedule X, Part I, line 1. See “Portion of a Com-
pany’s Operations That are Nonunitary With This Combined
Group” for more information.
Line 1c – Taxable income/(loss) of combined group
Subtract line 1b from line 1a and enter the result. The amount
in Schedule A, Section II, column (c) represents the entire net
income attributable to the unitary business of the combined
group before New Jersey additions and subtractions.
Note: The amount reported on Schedule A, Section II, line 1c,
column (c) must match the amount reported on Mem-
bers and Aliates Schedule, Part VI, line 9.
Line 2 – Income of non-U.S. group members (world-wide
If ling on a world-wide basis, enter the income attributable to
the unitary business of the combined group of the members
that were organized in a foreign nation, if such income was not
included on line 1c. See Income of the Combined Group for
more information.
Line 3 – Other federally exempt income
All income that was exempt for federal income tax purposes
under any provision of the Internal Revenue Code or any fed-
eral law must be added back. If such amounts were not added
back on any other line of Schedule A, include such amounts
on line 3 and include a rider detailing such amounts and
such provisions of the Internal Revenue Code. See N.J.S.A.
54:10A-4(k)(2)(A).
Note: Items of income excluded from federal taxable net in-
come pursuant to the specic terms of a treaty do not
have to be added back to entire net income. Include a
copy of federal Form 8833 that was included with the
federal return or a pro forma Form 8833 if none was
led for the member.
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Line 4 – Interest on federal, state, municipal, and other
obligations
Include any interest income that was not taxable for federal in-
come tax purposes and was not included in taxable net income
reported on line 1c.
Line 5 – New Jersey State and other states taxes
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, or to any for-
eign country, state, province, territory or subdivisions thereof,
on or measured by prots or income, business presence or
business activity, including any foreign withholding tax taken as
a deduction in Part I of Schedule A and reected in line 28. For
additional information, see TB-80, Addback of Other States’
Taxes, and the Schedule H instructions.
Enter the depreciation and other adjustments being added
to income if Schedule S, line 15, is a positive number. See
Schedule S instructions for more information.
Line 7 – Other additions
Report any other additions to income for which a place has not
been provided somewhere else on the return. This includes,
but is not limited to:
• Gross income, less deductions and expenses in connection
with such income, from sources outside the United States,
not included in federal taxable income;
• I.R.C. § 199A amounts that were deducted for federal
purposes;
• Any deductions for research and experimental expenditures,
to the extent that those research and experimental expen-
ditures 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 I.R.C. § 41.
Note: See Notice: Timing of New Jersey Qualied Research
Expenditures.
Include separate riders explaining any items reported.
Line 8 – Taxable income/(loss) with additions
Add line 1c through line 7 and enter the total.
Enter the amount from Schedule R, line 9 in column (c) of
Schedule A, Section II, Part II.
income
Enter the depreciation and other adjustments being subtracted
from income if Schedule S, line 15 is a negative number. Enter
the amount on line 10 as a positive number. See Schedule S
instructions for more information.
If line 1 includes any dividends or GILTI that were previously
taxed for New Jersey purposes, complete Schedule PT and
Schedule R to determine the amount that can be deducted.
Include only dividends or GILTI that was taxed in a prior tax
year by New Jersey. Do not include any federal previously
taxed income that was not taxed by New Jersey. Schedule PT
is available on the Division’s website.
If a combined group includes a taxable member that is a bank-
ing corporation with an international banking facility as dened
by N.J.S.A. 54:10A-4(n), the combined group is eligible to
deduct such income amounts that were not eliminated (so that
the entire combined group is treated as one banking corpo-
ration). The income must have otherwise been eligible for the
I.B.F. deduction under N.J.S.A. 54:10A-4(k)(4). See N.J.S.A.
54:10A-4.6(o).
For privilege periods ending on and after July 31,
2023, the I.B.F. deduction is a pre-allocation deduc-
tion. In addition, the historic ordering (preventing the
I.B.F. deduction from increasing net operating losses) is no lon-
ger applicable. However, the change in historic ordering is pro-
spective only. Taxpayers cannot adjust NOLs and PNOLs from
privilege periods ending before July 31, 2023 using the law
change from P.L. 2023, c.96.
Note: This deduction is taken in the Group Combined Total
column of Schedule A, Section II, Part II. Income that
was eliminated or excluded above line 12 is not eligible
for the I.B.F deduction.
The portion of any I.R.C. § 78 gross-up included in dividend
income on line 4 of Part I, that is not excluded/deducted from
taxable net income elsewhere may be treated as a deduction.
Include a copy of federal foreign tax credit, Form 1118.
Note: I.R.C. § 78 gross-up amounts cannot be included in
the dividend exclusion calculation on Schedule R or
Form 332, which is the form used to calculate the Tiered
Subsidiary Dividend Pyramid Tax Credit.
Line 14a – Nonoperational Activity
Enter the net eect of the elimination of nonoperational activity
from Schedule O, Part I, line 36. Schedule O is available on
the Division’s website.
Note: Members cannot net nonoperational losses against op-
erational income.
Line 14b – Nonunitary Partnership Income
Enter the net eect of the elimination of nonunitary partnership
income and expenses from Schedule P-1, Part II, line 4 in col-
umn (c) of Schedule A, Section I, Part II.
Note: Members cannot net nonunitary partnership losses
against operational income.
The net deferred tax liability (NDTL) deduction can
be taken for privilege periods beginning on and after
January 1, 2023, by entities that submitted Form
DT-1 (New Jersey Corporation Business Tax Statement of Net
Deferred Tax Liability Deduction) on or before July 1, 2020.
Eligible applicants enter one percent of the deduction amount
calculated on line 6 of Form DT-1. use the amount
from line 7 of Form DT-1. Taxpayers claiming a NDTL deduc-
tion must include a copy of Form DT-1 that was led. For more
information, see TB-96, Net Deferred Tax Liability Deduction
and Combined Returns.
- 13 -
P.L 2023, c.96 mandates the deduction to be taken over a min-
imum of 27 group privilege periods. There is no requirement
that the periods be consecutive. If an entity cannot use the
deduction in a particular group privilege period, because of the
income limitation in N.J.S.A. 54:10A-4(k)(16)(G), the balance is
carried forward for use in a future period.
For group privilege periods beginning on or after January 1,
2023 but before January 1, 2030, the deduction is limited to
one percent of the total NDTL deduction per period for the rst
seven group privilege periods.
Note: For group privilege periods beginning on or after Janu-
ary 1, 2030, the NDTLD will be recalculated using any
remaining NDTL amount. The amount will be limited to
5% for each period until fully used.
For more information on the NDTLD and the calculation of the
deduction amounts, see TB-96(R).
A New Jersey cannabis licensee is allowed to deduct
their expenditures that would be eligible to be
claimed as a federal income tax deduction and their
expenditures that would qualify as qualied research expendi-
tures pursuant to section 174 of the Internal Revenue Code,
but were disallowed for federal purposes because cannabis is
a controlled substance under federal law. Any qualied re-
search expenditure that is claimed as a deduction may also be
claimed as a qualied research expense for purposes of the
New Jersey Research and Development Tax Credit on Form
306. Attach a rider detailing the calculations.
Report any other deduction adjustments for which a place has
not been provided somewhere else on the return. Include a
rider detailing the information.
For privilege periods beginning on and after January
1, 2022, New Jersey qualied research expenditures
that are included on the Corporation Business Tax
Research and Development Tax Credit (Form 306) can be de-
ducted on the tax return in the same year that the expenditures
are claimed on the credit form, rather than amortizing the ex-
penditures. This deduction only applies to New Jersey qualied
research expenditures. Non-New Jersey qualied research ex-
penditures are deductible in the same manner and with the
same timing as they are for federal purposes. Enter these
amounts on line 17 and include a rider explaining the deduc-
tion. See Notice: Timing of New Jersey Qualied Research Ex-
penditures for more information. Cannabis licensees, include
these expenses on line 16, not line 17.
Add lines 9 through 17 and enter the total.
Line 19 – Entire Net Income/(Loss) Subtotal
Subtract line 18 from line 8 and enter the result.
If Schedule A, Section II, Part II, line 19, column
(c) is positive, all of the members will have entire
net income derived from the unitary business of
the combined group. Conversely, if Schedule A,
Section II, Part II, line 19, column (c) is negative, all of the
members will have a combined group net operating loss de-
rived from the unitary business of the combined group. The
members will determine their share of the combined group
net operating loss by using the member’s current year alloca-
tion factor calculated from Schedule J. This amount becomes
the member’s post allocation net operating loss for the cur-
rent period available for carryover into future privilege
periods.
Line 20 – Allocation Factor from Schedule J
Enter the group allocation factor from Schedule J.
Line 21 – Allocated entire net income/(loss) before net op-
erating loss deductions
Multiply the group entire net income on Schedule A, Section II,
Part II, line 19, column (c) by the group allocation factor on line
20 and enter the result.
If the amount is zero or less, this is the current year com-
bined group net operating loss that can be carried forward
as a post allocation net operating loss (NOL) deduction to a
succeeding tax period pursuant to N.J.S.A. 54:10A-4(v) and
N.J.S.A. 54:10A-4.6.h. Skip lines 21 through 24 and enter zero
on line 25.
Line 22 – Allocated entire net income from Schedule X
If the member completed Schedule X, include the allocated
entire net income from Part I of Schedule X on this line. If the
amount is zero or less, enter zero. See Schedule X instructions
for more information.
Line 23 – Allocated entire net income/(loss) before net op-
erating loss deductions
Add lines 21 and 22 and enter the result. If zero or less, enter
zero on line 25.
Enter the amount from Form 500U, Section C, line 3. Do
not enter more than the amount on line 23. See Form 500U
instructions.
When calculating the total taxable net income, the
combined group must rst add together the allocated
entire net income from the unitary business of the
group and the portion of allocated entire net income of mem-
bers with activities independent of the group. They must then
subtract the prior net operating loss conversion carryover be-
fore subtracting the net operating losses.
Line 25 – Combined group taxable net income/(loss)
Subtract line 24 from line 23 and enter the result. If less than
zero, enter zero.
For privilege periods ending on and after July 31, 2020, a com-
bined group will be treated as one taxpayer for purposes of
paragraph (1) of subsection (c) of section 5 of P.L.1945, c.162
(C.54:10A-5) and section 1 of P.L. 2018, c.48 (C.54:10A-5.41)
for the income derived from the unitary business. However,
the portion of income that is attributable to a member that is a
public utility exempt from the surtax shall not be included when
computing the surtax due.
- 14 -
Line 1 – Combined group taxable net income/(loss)
Enter the amount from Schedule A, Section II, Part II, line 25.
Line 2a – New Jersey nonoperational income
Enter the amount from Schedule O, Part III. See Schedule O
for more information. The schedule is available on the Divi-
sion’s website.
Note: Nonoperational losses cannot be netted against opera-
tional income.
Line 2b – Nonunitary partnership income
Enter the amount from Schedule P-1, Part II, line 5. See
Schedule P-1 instructions for more information.
Note: N
onunitary partnership losses
cannot be netted against
operational income.
Line 3 – Tax base
Add lines 1 through 2b in column (c) and enter the total.
Line 4a – Amount of tax
For the combined group, multiply the amount on line 3 column
(c) by the applicable tax rate. The tax rate is imposed at the
group level.
• If line 3 is greater than $100,000, the tax rate is 9% (.09).
• If line 3 is greater than $50,000 and less than or equal
to $100,000, the tax rate is 7.5% (.075). Tax periods of less
than 12 months qualify for the 7.5% rate if the prorated en-
tire net income does not exceed $8,333 per month.
• If line 3 is $50,000 or less, the tax rate is 6.5% (.065). Tax
periods of less than 12 months qualify for the 6.5% rate if
the prorated entire net income does not exceed $4,166 per
month.
Line 4b – Aggregate minimum tax of combined group
Multiply the number of taxable group members by $2,000 and
enter the result.
Line 5 – Combined group surtax
If Schedule A, Section II, Part III, line 1 is more than
$1,000,000, the group may be subject to the surtax.
Note: If there is a public utility company included as a member
of the combined group, do not include the portion of
income attributable to that member when determining
whether the group is subject to the surtax and, if ap-
plicable, when calculating the surtax amount. Attach a
rider explaining this calculation.
For privilege periods beginning on or after July 31, 2023 but on
or before December 31, 2023, multiply Schedule A, Section II,
Part III, line 1 by the surtax rate of 2.5%.
For tax years beginning on and after January 1, 2024, the sur-
tax has expired. Do not calculate a surtax. Enter zero.
Line 6 – Pass-Through Business Alternative Income Tax
Credit applied to surtax
Enter the amount from Form 329. Include the applicable credit
form(s) with the return. See Schedule A-3 instructions for more
information.
Line 7 – Balance of Surtax
Subtract line 6 from line 5.
Schedule A-2 – Members/Totals
Starting for Tax Year 2023 Schedule A-2 has been
split into two parts. The managerial member must
complete Schedule A-2 – Members for each mem-
ber. Attach additional copies of Schedule A-2 – Members if the
space provided is not sucient. Schedule A-2 – Totals must be
completed with the total amounts of all members reported.
Enter member’s amounts in the member’s column of Schedule
A-2 – Members. On Schedule A-2 – Totals in column (a), enter
the total amounts of all members prior to intercompany elimina-
tions and adjustments. In column (b), enter the intercompany
eliminations and adjustments. In column (c), enter the total
amounts for the combined group after intercompany elimina-
tions and adjustments.
The amounts reported on this schedule must be the same as
the amounts reported on federal Form 1125-A. Include Form
1125-A with the return.
Schedule A-3
Summary of Tax Credits
This schedule must be completed if any tax credits are being
claimed for the current tax period. There are various tax credits
with a variety of limitations. Each tax credit has its own limita-
tions and carryovers.
Taxpayers must include the appropriate credit
form in the year the credit was earned even if they
are not claiming the credit on their tax return.
In general, tax credits are earned by the member of the
combined group and are shareable among combined group
members. However, members are not required to share their
credits. See N.J.S.A. 54:10A-4.6.i and TB-90, Tax Credits and
Combined Returns. See the instructions of the applicable credit
form(s) for more information.
Any tax credit(s) claimed on this schedule must be docu-
mented with a valid New Jersey Corporation Business Tax
Credit form and must be included with the tax return. See
“Additional Forms and Instructions” for a list of available credit
forms and for instructions on obtaining them. If a member is
claiming a valid tax credit that is allowable in accordance with
the New Jersey Corporation Business Tax Act for which a place
has not been provided somewhere else on the schedule, report
the amount on the “Other” line in the appropriate section of
Schedule A-3.
Part I – Tax Credits Used Against Liability
On line 30, enter the total credits from all members in the
combined group column. This amount must equal the amount
reported on page 1, line 2. Amounts to be entered for each
member are calculated on the credit forms. See the specic
New Jersey Corporation Business Tax Credit form for informa-
tion about each credit.
Note: Most tax credits cannot reduce the tax liability below the
minimum tax. However, there are rare instances where it
can. Follow the instructions on the credit form regarding
how and where to record the information to ensure the
credit is properly osetting the tax liability.
- 15 -
Part II – Refundable Tax Credits
If a credit form for a member calculates an amount to be re-
funded, enter the refundable portion on the appropriate line for
that member.
On line 6, enter the total for all members in the
combined group column. This amount must equal the amount
reported on page 1, line 11a. On line 7, enter the total for all
members in the combined group column. This amount must
equal the amount reported on page 1, line 11b.
Schedule A-4
Summary Schedule
This schedule must be completed for each member. Report
the information on each line of Schedule A-4 from the return
schedules indicated. All lines must be completed as applicable.
Schedule A-5
Schedule A-5 has been discontinued.
Schedule CG has been discontinued.
Schedule B
Balance Sheet
Schedule B has four sections. The managerial member must
complete Section I and Section III for each member. Sections II
and Section IV must be completed with the total amounts of all
members reported.
The amounts reported in Section I and Section III must be the
same as the beginning-of-year and end-of-year gures shown
on the member’s books.
Where applicable, data must match amounts reported on
Schedule L of the federal return. If not, explain and reconcile
on a rider.
Schedule F
Compensation
Provide all applicable information for each corporate ocer
from the managerial member’s corporation regardless of
whether compensation was received. The data reported on
Schedule F must match amounts reported on federal Form
1125-E. Include Form 1125-E with your return.
Schedule G has been discontinued.
Schedule H
Taxes
Itemize all taxes that were in any way deducted in arriving at
taxable net income, whether reected in Schedule A, Part I at
line 2 (Cost of goods sold and/or operations), line 17 (Taxes),
line 26 (Other deductions) or anywhere else on Schedule A.
If the member is an includable public utility corporation (i.e., a
public utility that is not excluded from the combined group per
N.J.S.A. 54:10A-4.6(k)(2)), enter the sales tax paid by the utility
vendor.
Schedule J
Factors
For privilege periods ending on and after July 31,
2023, all combined groups must use the Fin-
nigan Method (see N.J.S.A. 54:10A-4.7.e and
N.J.S.A. 54:10A-4.11.c). Additionally, the combined group is
treated as one taxpayer for purposes of sourcing the unitary
receipts.
Under the Finnigan method, the allocation factor attributes in
the numerator are derived from all of the members of the com-
bined group, regardless of whether a member has nexus with
New Jersey.
The New Jersey receipts of all members of the combined
group are included in the numerator of the allocation factor of
the combined group; but a member’s New Jersey receipts that
are from activities that are not part of the unitary business of
the combined group are included on Schedule X of that mem-
ber and not the combined group.
Note: Pursuant to N.J.S.A. 54:10A-4.6, when an item of in-
come is restored to a member, such restoration must be
reected in both the numerator (if applicable) and the
group denominator.
Enter each member’s amount in the member’s column. All
members must be included on this schedule to properly to cal-
culate the allocation factor.
Only activities related to operational activity are to be used in
computing the general allocation factors. If the member has
nonoperational activity, see Schedule O. If the member has
nonunitary partnership income, see Schedule P-1.
In computing the allocation factor for the members
and the combined group as a whole, intercom-
pany receipts are eliminated.
Lines 1–5 – Receipts Fraction
Receipts from sales of tangible personal property are allo-
cated to New Jersey if the goods are shipped to points within
New Jersey. 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 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 New Jersey to a New Jersey
location where the goods are picked up by a common carrier
and transported to a customer outside New Jersey are not allo-
cable to New Jersey. Receipts from the following are allocable
to New Jersey: services performed if the benet of the service
is received in New Jersey; rentals from property situated in
New Jersey; royalties from the use in New Jersey of patents,
copyrights, and trademarks; all other business receipts earned
in New Jersey.
- 16 -
Services are sourced based on market sourcing.
World-Wide groups must include world-
wide receipts. However, to the extent the non-U.S. corporation
member’s reduced their income by being treated in the same
manner as a U.S. corporation under N.J.S.A. 54:10A-4(kk),
the receipts reported on Schedule J, must reect the reduced
amount.
The gross receipts of the FDII are included in Schedule J.
Receipts From Sales of Capital Assets. Receipts from sales
of capital assets (property not held by the member for sale to
customers in the regular course of business), either within or
outside New Jersey, should be included in the numerator and
the denominator based on the net gain recognized and not on
gross selling prices. If the member’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 as-
sets should be included in the numerator and the denominator
of the receipts fraction.
The amount of dividends or in-
clusions (deemed and/or paid dividends/inclusions) excluded
from entire net income pursuant to N.J.S.A. 54:10A-4(k)(5), are
not included in the numerator or denominator of the receipts
fraction. However, the dividend/inclusion (deemed and/or paid
dividend/inclusion) values that are not excluded are included in
the numerator or denominator.
GILTI is now treated as a dividend for New Jersey
purposes and is reported on the dividends and
other inclusions line (Schedule A, Part I, line 4).
-
turns – No CFCs included as members.
Only the portion of the receipts attributable to GILTI
that has not been excluded or eliminated are in-
cluded in Schedule J.
members.
If the underlying income of the CFC that generated
the GILTI was excluded from entire net income, the
GILTI is not eliminated or excluded. The GILTI attrib-
utable to CFCs is ineligible for the exclusion. Only the portion
of the receipts attributable to GILTI that has not been excluded
or eliminated is included in Schedule J.
members.
The GILTI attributable to CFCs included in the com-
bined group is eliminated and not subject to the divi-
dend exclusion. The CFC’s underlying receipts are
included in Schedule J.
Line 9 – Allocation Factor
Divide line 6c by the group denominator from line 8 and enter
the result. When computing the allocation factor on Sched-
ule J, division must be carried to six (6) decimal places, e.g.,
0.123456.
Note: Exclusions and adjustments are made before calculat-
ing the allocation factor, and the allocation factor must
be calculated using post exclusion and adjustment
numbers.
Special Industry Sourcing Rules
Airlines. Airlines have special sourcing rules pursuant to
N.J.S.A. 54:10A-6.3, which states: “Notwithstanding the pro-
visions of section 6 of P.L.1945, c.162 (C.54:10A-6), the sales
fraction for the transportation revenues of a taxpayer that is an
airline shall be determined as the ratio of revenue miles in this
State divided by total revenue miles; provided however, that if
a taxpayer that is an airline is engaged in the transportation of
passengers, the transportation of freight, or the rental of air-
craft, the ratio under this section shall be determined by means
of an average of a passenger revenue mile fraction, freight rev-
enue mile fraction, and rental revenue mile fraction weighted
to reect the taxpayer’s relative gross receipts from passenger
transportation, freight transportation, and rentals.” See also
N.J.S.A. 54:10A-6.3; N.J.A.C. 18:7-8.1; N.J.A.C. 18:7-8.10;
and N.J.A.C. 18:7-8.10A.
Transportation Companies. Transportation companies
have special sourcing rules for combined groups pursuant to
N.J.S.A. 54:10A-4.7.b, which states: “All business income of a
combined group engaged in the transportation of freight by air
or ground shall be apportioned to this State by multiplying the
income by a fraction, the numerator of which is the ton miles
traveled by the combined group’s mobile assets in this State by
type of mobile asset and the denominator of which is the total
ton miles traveled by the combined group’s mobile assets ev-
erywhere. This section applies if 50% or more of the combined
group’s entire net income is derived from the transportation of
freight by air or ground.” If the combined group meets the qual-
ications of N.J.S.A. 54:10A-4.7.b, attach a rider and enter the
applicable amounts on line 9 of Schedule J.
Schedule L
Schedule L has been discontinued.
Schedule P-1
Partnership Investment Analysis
Part I – Partnership Information
Itemize the investment in each partnership, limited liability com-
pany, and any other entity that is treated for federal tax pur-
poses as a partnership. List the name, the federal identication
number, and the date and state where organized for each part-
nership. Also, check the type of ownership (general or limited),
the tax accounting method used to reect your share of part-
nership activity on this return (ow through method or separate
accounting), and whether or not the partnership has nexus in
New Jersey. Itemize in column 6 the amount of tax payments
made on behalf of the member by partnership entities. Carry
the total amount of taxes paid on behalf of members to page 1,
line 10. Include a copy of Schedule NJK-1 from Form NJ-1065.
Any single-member limited liability company must be included
on this schedule.
Part II – Separate Accounting of Nonunitary Partnership
Income
Members that use a Separate Tax Accounting Method on
nonunitary partnership investments must complete Part II to
compute the appropriate amount of tax. Pursuant to N.J.S.A.
54:10A-6, members must enter a single sales factor allocation
in column 3.
- 17 -
Schedule PC
Per Capita Licensed Professional Fee
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 U.S., a state, or political subdivision thereof, are liable
for a fee on licensed professionals.
Examples of licensed professionals are: certied public ac-
countants, architects, optometrists, professional engineers,
land surveyors, land planners, chiropractors, physical thera-
pists, registered professional nurses, dentist, osteopaths, phy-
sicians and surgeons, doctors of medicine, doctors of dentistry,
podiatrists, veterinarians and, subject to the Rules of the Su-
preme Court, attorneys at law (N.J.S.A. 14A:17-3).
Note: Licenses acquired through vocational training and/or
apprenticeships within those trades are not considered
licensed professionals. Examples include plumbers,
electricians, HVAC technicians, cosmetologists, re and
burglar alarm services, acupuncturists, hair stylists, ele-
vator, escalator, and moving walkway mechanics, lock-
smiths, and court reporters.
The fee is assessed provided there are more than two pro-
fessionals in the PC. The fee is assessed on professionals
that are owners, shareholders, and/or employees of the pro-
fessional 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 nonresident 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.
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.
Check the box on the Members and Aliates Schedule to indi-
cate this is a professional corporation for applicable members.
Line 4 – Installment Payment: A 50% prepayment towards the
subsequent year’s fee is required with the current year’s return.
Line 8 – Credit: Amount to be credited towards next year’s fee.
This fee is not eligible for refund.
Schedule R
P.L. 2023, c.96, made a series of technical correc-
tions, clarications, and changes that aect Sched-
ule R.
• For privilege periods ending on and after July 31, 2023, the
dividend exclusion is a pre-allocation exclusion.
• The historic ordering limitation (preventing the dividend ex-
clusion from increasing net operating losses) is no longer
applicable. However, the change in historic ordering is pro-
spective only. Taxpayers cannot adjust NOLs and PNOLs
from privilege periods ending before July 31, 2023, using
the law change from P.L. 2023, c.96.
• GILTI is now treated as a dividend for New Jersey purposes
and is reported on the dividends and other inclusions line
(Schedule A, Part I, line 4).
• The maximum dividend exclusion increased from 95% to
100% from qualied subsidiaries if such dividends were
included in the taxpayer’s gross income on Schedule A.
However, a claw-back provision that requires a 5% reduc-
tion of the exclusion amount has been added (see N.J.S.A.
54:10A-4(k)(5)(F)(ii)). Note: The claw-back provision does
not apply to intercompany dividend transactions between
members of the New Jersey combined return.
Intercompany dividends (and deemed dividends)
between members of the combined group that
were eliminated/excluded above Schedule A,
Part II, line 20 are not eligible for the dividend ex-
clusion and are not to be included in the computation
on Schedule R. Only dividends and deemed dividends that
are a part of the unitary business of the combined group that
were received from subsidiaries that were not included as
members of the same New Jersey combined return are eligi-
ble for the exclusion. Water’s-edge and world-wide basis l-
ers, see Schedule X for more information.
Taxpayers cannot include the following as part of the dividend
exclusion:
• Money market fund or REIT income;
• FDII (this is not considered income from dividends or
deemed dividends for New Jersey Corporation Business
Tax purposes); or
• The portion of I.R.C. § 78 gross-up deducted on Schedule
A, Sections I and II, Part II, line 13; or
• Dividend income that was excluded or eliminated from en-
tire net income of the combined group under another provi-
sion. For example, if the dividend income was excluded pur-
suant to N.J.S.A. 54:10A-4.6.b(2) or N.J.S.A. 54:10A-4(k)
(18), it is ineligible for an additional deduction, elimination,
or exclusion.
Dividends and deemed dividends from all sources must be
included in Schedule A. However, taxpayers may exclude from
entire net income 100% of dividends from qualied subsidiar-
ies, less the 5% clawback, if such dividends were included in
the taxpayer’s gross income on Schedule A. A qualied subsid-
iary is dened as ownership by the taxpayer 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 dividends.
With respect to other dividends, the exclusion is limited to 50%
of such dividends included in the taxpayer’s gross income on
Schedule A, less the 5% clawback, provided the taxpayer owns
at least 50% of voting stock and 50% of the total number of
shares of all other classes of stock.
Any subsidiary that is owned less than 50% is not entitled to a
dividend exclusion.
Note: If the underlying income of the foreign corporation’s in-
come that generated the GILTI was excluded from entire
net income, the GILTI is not eliminated as there is no
corresponding amount to eliminate it against.
If the taxpayer received tiered dividends from a tiered subsid-
iary that led and paid tax to New Jersey on those same divi-
dends, do not include these dividends on Schedule R.
- 18 -
The tiered dividend exclusion from certain subsidiaries is calcu-
lated separately on Form 332. See Form 332 for more informa-
tion. This form is available on the Division’s website.
New Jersey follows the federal ownership attribu-
tion rule changes under I.R.C. § 958(b) and I.R.C.
§ 318 that broadened the federal attribution rules
that were retroactive to January 1, 2017, in addi-
tion to the already broad Corporation Business Tax attribution
rules.
:
If a taxpayer had subsidiary dividend income that was reported
in a previous privilege period for New Jersey Corporation Busi-
ness Tax purposes and for which the taxpayer paid greater
than the New Jersey minimum tax in that privilege period
and those same dividends are included in entire net income
this privilege period, complete Schedule PT in conjunction
with Schedule R. See Schedule PT for more information. The
schedule is available on the Division’s website.
Schedule S
This schedule must be completed for each member and a
copy of a completed federal Depreciation Schedule, Form
4562 must be included with the return. Schedule S provides
for adjustments to depreciation and certain safe harbor leasing
transactions.
New Jersey has decoupled from I.R.C. § 168(k)
bonus depreciation and I.R.C. § 179 expensing
provisions. See N.J.S.A. 54:10A-4(k)(12) and
N.J.S.A. 54:10A-4(k)(13). Adjustments must be
made accordingly.
Line 1 through Line 6 – These lines detail the depreciation
deduction reected in the Computation of Entire Net Income
(Schedule A) into several categories. In most circumstances,
the information can be found on federal Form 4562.
Line 7 – Enter the amount reported on the federal Form 4562.
Line 8 – Enter the amount of current depreciation on property
placed in service in prior years.
Line 9 – Enter the amount from Depreciation Worksheet I,
line 10, column F.
Line 11 – IRC § 179 limitation. Enter the lesser of line 1 or
$25,000.
Line 12 – Enter the amount from Worksheet II, line 16, col-
umn F. If the amount is positive, add it to the total at line 15. If it
is negative, subtract it from the total.
Line 13 – Enter any adjustment to depreciation that is an addi-
tion. This can include, but is not limited to, partnership activity.
Line 14 – Enter any adjustment to depreciation that is a deduc-
tion. This can include, but is not limited to, partnership activity.
Column A – Sort the property you acquired and placed in ser-
vice during Tax Year 2023 according to its classication (3-year
property, 5-year property, etc.) as shown in column A.
Column B – Use the federal basis adding back the special de-
preciation reduction.
Column C – Enter the bonus depreciation claimed (50% or
30%). If both categories of bonus depreciation are claimed,
provide a rider detailing the assets that used 50% and the as-
sets that used 30%.
Enter the convention that was used for federal
purposes. The applicable conventions are Half-Year Conven-
tion, Mid-Quarter Convention, or the Mid-Month Convention.
Column E – Enter the method that was selected for federal
purposes. The applicable methods are 200% declining bal-
ance, 150% declining balance, or straight-line.
Column F – Enter the amount of federal depreciation claimed
on federal Form 4562.
To determine the New Jersey depreciation, multi-
ply column B by the applicable rate from the appropriate table
(See IRS Pub. 946 for complete tables). Enter the total on
Schedule S, Part I, line 9.
Enter the federal depreciation claimed up to the
date the property was sold.
Column E – Enter the New Jersey depreciation claimed up to
the date the property was sold.
Column F – Enter the dierence between column D and col-
umn E. If the amount is positive, there is an excess of depre-
ciation that must be added to the federal amount claimed on
Part I, line 7. If the amount is negative, there is a deciency
that must be deducted from Part I, line 7.
Form 500U
Prior Net Operating Loss Conversion Carryover
(PNOL) and Post Allocation Net Operating Loss
The historic ordering (preventing the dividend
exclusion and international banking facility deduction
from increasing net operating losses) is no longer
applicable.
Note: The change in historic ordering is prospective only. Tax-
payers cannot adjust NOLs and PNOLs from privilege
periods ending before July 31, 2023, using the P.L.
2023, c.96 law change.
In addition, for privilege periods ending on and after July 31,
2023, the combined group post-allocation net operating losses/
loss carryovers are applied on a group level. Taxpayers must
add the allocated entire net income from the unitary business
of the combined group and the portion of allocated entire net
income of members with activities independent of the group
before subtracting the prior net operating loss conversion
carryovers and the net operating losses.
The combined group and the members of the combined group
must use tracing protocols for all PNOLs and NOLs.
For New Jersey Corporation Business Tax purposes, net oper-
ating losses and net operating loss carryovers have a 20-year
carryover period and can only be carried forward. No carry-
backs are allowed.
- 19 -
For tax years beginning on and after January 1, 2020, the fed-
eral rules and regulations governing consolidated return net
operating losses and net operating loss carryovers apply to the
New Jersey net operating loss carryover provisions to the ex-
tent they are consistent with the provisions of the New Jersey
Corporation Business Tax Act. If the New Jersey and federal
provisions dier, the New Jersey Corporation Business Tax Act
provisions govern. New Jersey generally follows the federal
rules governing mergers, acquisitions, reorganizations, spin-
os, split-os, dissolution, bankruptcy, or any form of cessation
of a business. New Jersey also follows any other provision of
the federal rules that limits or reduces federal net operating
losses and federal net operating loss carryovers. See N.J.S.A.
54:10A-4.6(m), and N.J.S.A. 54:10A-4.5(c).
Post Allocation Net Operating Losses (NOLs) are losses
that were generated in privilege periods ending on or after July
31, 2019. These losses occur on a post allocation basis.
For privilege periods ending on and after July 31,
2023, the NOLs of the combined group and the
NOLs of any taxable members of the combined
group can be pooled together for use by the combined group
against the entire group’s allocated entire net income (which
includes both the income from the unitary business of the
combined group and the portion of income from any member
with activities independent of the group).
Members must keep track of their proportionate share of NOLs
in case the members depart the combined group in a future
period. See TB-95(R), Net Operating Losses and Combined
Groups, for more information.
In addition, NOLs are limited to 80% of the combined group’s
taxable net income for tax years ending on or after July 31,
2023. N.J.S.A. 54:10A-4(w) mandates that the I.R.C. § 172(a)
(2) limitation applies to net operating losses calculated pursu-
ant to N.J.S.A. 54:10A-4(v) and N.J.S.A. 54:10A-4.6(h). The
I.R.C. § 172(a)(2) limitation applies at the combined group
level. (August 1, 2023, is substituted for the reference to Jan-
uary 1, 2018, in 26 U.S.C. s.172(a)(2)(A), and July 31, 2023,
is substituted for the reference to December 31, 2017, in 26
U.S.C. s.172(a)(2)(A).)
Prior Net Operating Losses (PNOLs) are losses that were
generated in privilege periods ending prior to July 31, 2019.
To use these losses, the unused, unexpired amounts were
required to be converted to a post allocation basis using the
member’s allocation factor from their last tax return led for
privilege period ending prior to July 31, 2019.
For privilege periods ending on and after July 31,
2023, if members of the combined group have any
remaining unused, unexpired PNOLs, the amounts
are pooled together and used by the combined group against
the entire group’s allocated entire net income (which includes
both the income from the unitary business of the combined
group and the portion of income from any member with
activities independent of the group). Since the PNOLs are
pooled, combined group members are no longer permitted to
buy and sell PNOLs to each other.
PNOLs must be deducted from allocated entire
net income before any NOLs can be deducted.
If the member(s) has a discharge of indebtedness amount that
is excluded from federal taxable income under subparagraph
(A), (B), or (C) of paragraph (1) of subsection (a) of I.R.C. sec-
tion 108, adjustments need to be made to the group’s PNOLs,
NOLs, and/or post allocation net operating loss carryovers.
Since the discharge of indebtedness amount is not an allo-
cated amount, the group must multiply the discharge of indebt-
edness amount by its current year allocation factor before mak-
ing any adjustment to the net operating losses or net operating
loss carryovers.
The group must rst reduce the PNOLs by the allocated dis-
charge of indebtedness amount. If the allocated discharge of
indebtedness amount exceeds all of group’s PNOLs and the
group has post allocation net operating loss carryovers, the
group must also reduce the post allocation net operating loss
carryovers by the remaining balance. If, after reducing their
post allocation net operating loss carryovers by the discharge
of indebtedness amount, there are still post allocation net op-
erating loss carryovers available, the group may then reduce
their allocated entire net income by the remaining post alloca-
tion net operating loss carryover.
Section A – Computation of Prior Net Operating Losses
This section is only applicable if members of the combined
group has loss carryovers from periods ending prior to July 31,
2019. Only complete this section if the total combined group
allocated entire net income/(loss) before net operating loss
deductions on Schedule A, Section II, Part II, line 23 is positive
(i.e., income).
Note: PNOLs expire 20 privilege periods after the loss was
originally generated. No carrybacks are allowed.
If the combined group is not claiming a PNOL, enter zero on
Section C, line 1 and continue with Section B.
Line 1 – Enter the Aggregate Total Converted Prior Net Oper-
ating Losses of the Combined Group reported on Form 500U-
P, Part II, line 22.
Line 2 – Enter the amount of PNOLs reported on line 1 that
was deducted in a previous year.
Line 3 – Enter the amount of PNOLs reported on line 1 that
has expired.
Line 4 – Enter the total amount excluded from federal taxable
income under subparagraph (A), (B), or (C) of paragraph (1)
of subsection (a) of Internal Revenue Code (26 U.S.C. s.108)
in the current year. If the amount is greater than the PNOLs
reported on line 1 (less lines 2 and 3), carry the remainder to
Section B, line 4. If the amount recorded is based on multiple
members, include a rider detailing the calculation by member
Line 5 – Subtract the amounts reported on lines 2 through 4
from the amount on line 1. This is the total amount of PNOLs
available for deduction in the current year.
Line 6 – Enter the amount from Schedule A, Section II, Part II,
line 23.
Line 7 – Enter the lesser of lines 5 or 6. This is the current pe-
riod PNOL deduction. Also enter this amount on line 7 of Sec-
tion B and line 1 of Section C.
- 20 -
Section B – Post Allocation Net Operating Losses (NOL)
This section is only applicable to loss carryovers from periods
ending on and after July 31, 2019. Only complete this section
if the total combined group allocated entire net income/(loss)
before net operating loss deductions on Schedule A, Section II,
Part II, line 23 is positive (i.e., income).
Losses, deductions, and expenditures that are excluded from
entire net income pursuant to N.J.S.A. 54:10A-4.6.b(2) or
N.J.S.A. 54:10A-4(k)(18), are not permitted to be included in
net operating losses or net operating loss carryovers.
Section B is used to calculate the amount of the New Jersey
post allocation net operating loss carryover.
The post allocation net operating loss deduction is subtracted
from allocated entire net income after the combined group uses
all of the available PNOLs.
Line 1 – Enter the Aggregate Total Post Allocation Net Operat-
ing Losses of the Combined Group reported on Form 500U-PA,
line 22.
Line 2 – Enter the amount of NOLs reported on line 1 that was
deducted in a previous period.
Line 3 – Enter the amount of NOLs reported on line 1 that has
previously expired.
Line 4 – Enter the amount of any adjustments required under
provisions of the federal Internal Revenue Code other than
the I.R.C. § 172(a)(2) limitation. New Jersey generally follows
the federal rules governing mergers, acquisitions, reorganiza-
tions, spin-os, split-os, dissolution, bankruptcy, or any form
of cessation of a business. New Jersey also follows any other
provision of the federal rules that limits or reduces federal net
operating losses and federal net operating loss carryovers. See
N.J.S.A. 54:10A-4.5(c) for more information. If the member re-
ported an amount in Section A, line 3 of Form 500U, only enter
the excess here. (Section A, line 1 minus lines 2 and 3.)
Do not include any I.R.C. § 172(a)(2) limitation
adjustments on line 4. The I.R.C. §172(a)(2) lim-
itation computation is applied at lines 9
through 14. The I.R.C. § 172(a)(2) limitation ap-
plies at the combined group level.
Line 5 – Subtract the amounts reported on lines 2 through 4
from the amount on line 1. This is the total amount of post allo-
cation NOLs available for deduction in the current year.
Line 6 – Enter the allocated entire net income/(loss) before net
operating loss deductions from Schedule A, Section II, Part II,
line 23
. If the amount is less than zero, enter zero.
Line 7 – Enter the PNOL claimed on Section A, line 7.
Line 8 – Subtract line 7 from line 6. If the amount is zero, enter
zero on Section C, line 2 and stop here.
Line 9 – Enter the total amount of NOLs included on line 5 that
were generated in privilege periods beginning before August
1, 2023.
Line 10 – Enter the total the amount of NOLs included on line
5 that were generated in privilege periods beginning after
July 31, 2023.
Line 11 –
Subtract line 9 from line 8.
Line 12 – Enter 80% of line 11.
Line 13 – Add line 9 to the lesser of line 10 or line 12.
Line 14 – Enter the lesser of line 8 or line 13. This is the cur-
rent period NOL deduction. Also enter on line 2 of Section C.
Note: A taxable member that leaves a New Jersey combined
group must take their share of the combined group post
allocation net operating loss carryover. The combined
group cannot continue to use that portion of the loss.
Line 1 – Enter the amount from from Section A, line 7.
Line 2 – Enter the amount from from Section B, line 14.
Line 3 – Add lines 1 and 2. Enter here and on Schedule A,
Section II, Part II, line 24, column (c).
Form 500U-P
Form 500U-P was designed to help taxpayers transition to the
new net operating loss regime. Taxpayers were required to
convert these losses using the allocation factor from the last
privilege period ending before July 31, 2019. A copy of this
form must be included with the taxpayer’s return each year
until the losses are used up or expired but is not recomputed
each year.
Form 500U-PA
Net Operating Loss
Line (a) – Enter the date the privilege period ended. All periods
must end on or after July 31, 2019.
Line (b) – Enter the net operating loss for each period. Enter
the entire loss for the period. Do not net with previously de-
ducted or expired amounts. Amounts that have been previously
deducted or that are expired must be reported on Form 500U,
Section B on lines 2 and 3. The converted losses can only be
carried forward for the 20 privilege periods following the period
of the initial loss.
Note: For privilege periods ending after June 30, 2014, the
loss reported each year must not include any amount
excluded from federal taxable income under subpara-
graph (A), (B), or (C) of paragraph (1) of subsection (a)
of Internal Revenue Code (26 U.S.C. s.108).
Line 21 – Enter the total post allocation net operating loss car-
ryover for each member. Add lines 1b through 20b.
Line 22 – Add the amounts on line 21 for all members and
enter the total. This is the amount that is carried to Form 500U,
Section B, line 1.
Additional Forms and Instructions
Most of the forms and schedules needed to complete the re-
turn are included with Form CBT-100U. However, there are
several stand alone forms and schedules that can be obtained
on the Division’s website. This includes:
- 21 -
• Schedule I: Certicate of Inactivity (Form CBT-100U Filers
ONLY
• Schedule N: Nexus – Immune Activity Declaration and the
Nexus Questionnaire
• Schedule O: Nonoperational Activity
• Schedule PT: Dividend Exclusion for Certain Previously
Taxed Dividends
• Schedule X: Member’s Taxable Income From Sources Other
Than the Unitary Business of the Combined Group (Form
CBT-100U Filers ONLY)
• Form 301: Urban Enterprise Zone Investment Tax Credit
• Form 302: Redevelopment Authority Project Tax Credit
• Form 304: New Jobs Investment Tax Credit
• Form 305: Manufacturing Equipment and Employment In-
vestment Tax Credit
• Form 306: Research and Development Tax Credit
• Form 311: Neighborhood Revitalization State Tax Credit
• Form 312: Euent Equipment Tax Credit
• Form 313: Economic Recovery 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 326: Drug Donation Program Tax Credit
• Form 327: Film and Digital Media Tax Credit
• Form 328: Tax Credit for Employers of Employees With
Impairments
• Form 329: Pass-Through Business Alternative Income Tax
Credit
• Form 330: Apprenticeship Program Tax Credit
• Form 331: Tax Credit for Employer of Organ/Bone Marrow
Donor
• Form 332: Tiered Subsidiary Dividend Pyramid Tax Credit
• Form 333: Tax Credit for Investing in a Qualied Facility
and Hiring Employees to Manufacture Personal Protective
Equipment
• Form 334: Innovation Evergreen Fund Tax Credit
• Form 335: Unit Concrete Products Tax Credit
