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2023 CBT-100

General Instructions for New Jersey Corporation Business Tax Return and Related Forms

Electronic Filing Mandate

All taxpayers and tax preparers must le Corporation Business

Tax returns and make payments electronically. This mandate

includes all returns, estimated payments, extensions, and

vouchers. Visit the Division’s website or check with your soft-

ware provider to see if they support any or all of these lings.

ings and payments. BFC lers that submitted their pay-

ments through Electronic Funds Transfer (EFT) should

verify that they are using the correct EFT codes.

To le and pay the annual report electronically, visit the Division

of Revenue and Enterprise Services’ website.

Form BFC-1 has been discontinued. Schedule A-7

and Schedule L have also been discontinued. For

privilege periods ending on and after July 31, 2023,

banking corporations and nancial business

corporations that are separate lers must use Form CBT-

other federal corporate return led) and all related forms

and schedules. See Technical Bulletin, TB-98(R), Federal

Return and the Forms and Schedules to Include with the Cor-

poration Business Tax Return. Corporations that are part of a

federal consolidated group must include a federal income tax

return and the consolidating schedules showing the income

statement, balance sheets, and all other supporting information

for the taxpayer.

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,

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.

Distortion of Net Income

The Director is authorized to adjust and redetermine items of

The return must be completed using the same method of ac-

counting, cash, accrual or other basis, that was employed in

the taxpayer’s federal income tax return.

The New Jersey Division of Taxation and the Internal Revenue

Service participate in a federal/State program for the mutual

exchange of tax information to verify the accuracy and consis-

tency of information reported on federal and New Jersey tax

returns.

Corporations Required to File

this State issued by the Secretary of State; or

2. Holds a certicate, license, or other authorization issued

by any other department or agency of this State authoriz-

ing the company to engage in corporate activity within this

State; or

3. Does business in this State; or

4. Employs or owns capital within this State; or

5. Employs or owns property in this State; or

6. Maintains an oce in this State; or

7. Derives receipts within this State that meet the thresholds

return.

Nexus. For privilege periods ending on and after

July 31, 2023, corporations deriving receipts from

sources in New Jersey will be deemed to have

bright-line economic nexus if during the corporation’s tax year:

Corporations that do not meet either threshold above, and

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unitary partnership are included as part of its parent corpora-

tion’s attributes and activities when determining whether the

corporation has nexus.

Corporations Claiming P.L. 86-272. Foreign corporations

that meet the ling requirements and whose income is immune

from tax pursuant to Public Law 86-272, must obtain and com-

plete Schedule N, Nexus – Immune Activity Declaration, and all

of the schedules from the CBT-100. In addition, taxpayers must

include a copy of the Nexus Questionnaire. P.L. 86-272 lers

are not subject to the surtax imposed by N.J.S.A. 54:10A-5.41,

2023.

Out-of-Business Corporations. Corporations that are “out of

business” but have not dissolved or withdrawn their authority to

do business in New Jersey, are still obligated to le a return. A

dissolution or withdrawal date must be established on or before

the last day of the current taxable period to avoid having to le

a return for the next tax period.

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

ducted any business activities. No return may cover a period

exceeding 12 months, even by a day.

S Corporations. For privilege periods beginning on or after

December 22, 2022, a corporation that has elected and quali-

es to be an S corporation pursuant to Section 1361 of the In-

ternal Revenue Code is required to le Form CBT-100S unless

the shareholders elect to be treated as a C corporation for New

Jersey purposes. See Hybrid Corporations.

Note: Corporations ling as New Jersey S corporations

must use Form CBT-100S. Form CBT-100 (or Form

DISC must complete all applicable schedules on the return.

of a Taxpayer that is a Member of a Combined Group.

September 30, 2000.

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Form CBT-100.

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 the Certication of Inactivity section

on page 1. Payment for the related minimum tax liability and

the installment payment (if applicable) must be submitted elec-

tronically. See the Page 1 section for more information.

New Jersey enacted mandatory combined reporting for unitary

Return.

A member of a combined group ling a New Jersey combined

return does not have to le a separate return for the privilege

period or portion of the privilege period thereof that the tax-

payer was included as a member of the combined return. A

Visit the Division’s website for information about combined

reporting.

Note: A taxpayer that has nexus with New Jersey that is part

must report the income for months subsequent to departing the

Jersey combined return. The taxpayer ling a separate return

would not report the income on Form CBT-100 for the months

during which the member was part of the combined group. If

determining what amount of income is attributable to the por-

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-100 forms and

payments:

Calendar or scal accounting year is the same accounting pe-

riod that the taxpayer is required to report to the United States

Treasury Department for federal income tax purposes. The

ending month of the accounting period for federal returns and

New Jersey returns must match, however, the tax return year

for the federal and State returns may dier. (i.e., a tax year

ending 8/31/23 may be led on a 2022 federal Form 1120; the

same tax year must be led on a 2023 New Jersey CBT-100.)

All accounting periods must end on the last day of the month

years are available on the Division’s website.

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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.

Note: Banking corporations and nancial corporations previ-

ously used Form BFC-200-T, which was discontinued

for privilege periods ending on and after July 31, 2023.

Going forward these entities will use the corresponding

Corporation Business Tax 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. Penalties 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.

Payment of Tax

The balance of tax due must be paid in full by the original due

information.

To make payments electronically, go to the Division of Taxa-

tion’s website. Taxpayers that do not have access to the inter-

net can call the Division’s Customer Service Center at (609)

292-6400.

Taxpayers with a prior year liability of $10,000 or more in any

tax are required to make their payments for all taxes by Elec-

can satisfy the EFT requirement by making e-check or

credit card payments.

Penalties and Interest

Insuciency Penalty. If the amount paid with the Tentative

Return, Form CBT-200-T, is less than 90% of the tax liability

computed on Form CBT-100, or in the case of a taxpayer

whose preceding return covered a full 12-month period, is less

than the amount of the tax computed at the rates applicable to

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

Late Payment Penalty. 5% of the balance of tax due paid after

Interest. 3% above the average predominant prime rate for

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.

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 certicate of debt is issued

for the outstanding liability, a fee for the cost of collection of the

tax may also be imposed.

Form CBT-160-A or Form CBT-160-B. If the taxpayer qualies

for any of the exceptions to the imposition of interest for any of

the installment payments, Part II must be completed and sub-

mitted with the return as evidence of such exception.

Note: Banking corporations and nancial corporations previ-

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Amended Returns

To amend CBT-100 returns, use the CBT-100 form for the ap-

propriate tax year.

Beginning with returns for a Tax Year 2019 and after, taxpayers

must submit amended CBT returns electronically.

Note: Beginning with returns for a Tax Year 2023, banking

corporations and nancial business corporations that

are separate lers must use Form CBT-100. To amend

a return, the business must use the same form that was

All corporations must complete page 1, the Annual General

Questionnaire, and Schedules A (Parts I, II, and III), A-2, A-3,

A-4, and J of the return.

Line 1 – Tax Base

Enter amount from line 4 of Schedule A, Part III.

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(whichever is applicable) by the surtax rate. The rate is 2.5%

for tax years beginning on or after January 1, 2018, through

December 31, 2023.

Line 7 – Installment Payment

Taxpayers are required to make installment payments of esti-

mated tax. The requirement for making these payments is:

• If the 2023 Total Tax Liability is greater than $1,500, the

taxpayer 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. Taxpayers with

of making installment payments, the taxpayer may make a

payment of 50% of the 2023 total tax liability. For taxpayers

that qualify and want to take advantage of this option, enter

on line 7, 50% of the amount on line 6. This will become

part of the payment to be made with the 2023 return and

installment payments will not be required. This payment

should be claimed as a credit when ling the 2024 return.

Note: Banking corporations and nancial corporations pre-

viously used Form BFC-150, which was discontinued

for privilege periods ending on and after July 31, 2023.

Note: Check the box on page 1 to indicate the corporation is a

professional corporation.

See Schedule PC instructions for information about ling re-

quirements and examples of professional corporations.

Line 9 – Total Tax and Professional Corporation Fees

Enter the total of lines 6, 7, and 8.

Line 10a – Payments and Credits

Include on this line:

Note: Professional corporation installment payments from the

Line 10b – Payments made by Partnerships

Include the total payments made by partnerships on behalf of

the taxpayer that are reported in column 7 on Schedule P-1.

Submit copies of the NJK-1s or K-1s (as applicable) reecting

payments made by each partnership entity.

Line 10c – Refundable Tax Credits

Line 11 – Balance of Tax Due

Subtract line 10d from line 9 and enter the dierence.

Line 12 – Penalty and Interest Due

Include any penalties and interest. See the Penalties and Inter-

est section for information.

Note: If the taxpayer has an overpayment or no tax liability

amount on line 10d.

Line 15 – Refund

Enter the amount of your overpayment that you want refunded.

Line 16 – Credit to 2024

Enter the amount of your overpayment that you want to credit

to your 2024 tax liability.

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Note: An overpayment of tax by a corporation can only be

credited to a combined group of which the corporation is

a member.

Certication of Inactivity

Inactive corporations must complete page 1, the Annual Gen-

eral Questionnaire, and Schedules A (Parts I, II, and III), A-2,

who is authorized to attest to the truth of the statements con-

tained therein and to acknowledge that they understand they

are required to include copies of their federal 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 the corporation.

Tax preparers who fail to sign the return or provide their

assigned tax identication 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

the questions.

Regulated investment companies must answer all questions

in Part II. If the taxpayer does not meet all the requirements, it

cannot le as a regulated investment company.

Note: Check the box on page 1 to indicate the corporation is a

regulated investment company.

Schedule A

Every taxpayer must complete this schedule.

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 modications to entire net

income in Part II. The taxpayer must attach a rider detailing the

math and the deductions being claimed.

Line 5 – Interest

Include a copy of federal Form 8916A if it was completed.

Lines 8, 9, and 10

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.

real property under N.J.S.A. 54:15C-1, indicate on a rider.

Include a copy of federal Form 8916A and/or federal Form

8990 if completed.

Line 25 – Energy ecient commercial buildings deduction

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

taxpayer’s unconsolidated federal Form 1120 or the appropri-

ate line from any other federal corporate return led.

If the corporation has not led a separate federal income tax

return, taxpayer must explain and reconcile the dierences on

a rider.

Taxpayers must include a copy of the federal

return and any forms or schedules that accompa-

nied the return that was led with the Internal Rev-

Part II – Modications to Entire Net Income

Line 1 – Taxable income/(loss)

Enter the amount from Schedule A, Part I, line 28.

Line 2 – Other federally exempt income

For tax years beginning on and after January 1, 2018, all in-

come that was exempt for federal income tax purposes under

any provision of the Internal Revenue Code or any federal law

must be added back. If such amounts were not added back on

any other line of Schedule A, include such amounts on line 2

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Line 4 – 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-

Line 5 – Depreciation modication being added to income

Line 6 – Other additions

Report any other additions to income for which a place has not

been provided somewhere else on the return. This includes,

a pre-allocation exclusion. In addition, the historic or-

dering (preventing the I.B.F. deduction from increasing net op-

erating losses) is no longer applicable. However, the change in

historic ordering is prospective only. Taxpayers cannot adjust

NOLs and PNOLs from privilege periods ending before July 31,

Line 12 – I.R.C. § 78 Gross-up

The portion of any I.R.C. § 78 gross-up included in dividend

income on line 4 of Schedule A, Part I, that is not excluded/de-

ducted from taxable net income elsewhere, may be deducted

Line 13a – Elimination of Nonoperational Activity

Line 13b – Elimination of Nonunitary Partnership Income

Enter the net eect of the elimination of nonunitary partnership

income and expenses from Schedule P-1, Part II, line 4.

Line 14 – Cannabis Licensee Deduction

A New Jersey cannabis licensee is allowed to deduct

their expenditures that would be eligible to be

claimed as a qualied research expense for purposes of the

New Jersey Research and Development Tax Credit on Form

306. Attach a rider detailing the calculations.

Line 15 – Other deductions

Report any other deduction adjustments for which a place has

not been provided somewhere else on the return. The taxpayer

must include a rider detailing the information.

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All taxpayers must complete Schedule J. Enter allocation

factor from Schedule J. See Schedule J instructions for more

information.

Line 19 – Allocated entire net income/(loss) before net op-

erating loss deductions

Multiply line 17 by line 18 and enter the result. If zero or less,

enter zero on line 21.

after the loss was originally generated. Information on

Line 20 – Net Operating Loss Deduction

Enter the amount of net operating loss deduction from

Form 500, Section C, line 3. Do not enter more than the

amount on line 19. See Form 500 instructions.

Subtract line 20 from line 19 and enter the result.

Enter the amount from Schedule O, Part III. See Schedule O

for more information. This schedule is available on the Divi-

sion’s website.

Note: Taxpayers cannot net nonoperational losses against op-

that is allowable in accordance with the New Jersey Corpora-

tion 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.

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.

The total on line 30 must equal the amount reported on page 1,

line 3. Amounts to be entered are calculated on the credit

If the credit form calculates an amount to be refunded, enter

the refundable portion on the appropriate line. The total on

line 6 must equal the amount reported on page 1, line 10c.