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2022 CBT-100U
Instructions for Corporation Business Tax Unitary Return

54:50-18 and other applicable provisions of law, shall be per-
Electronic Filing Mandate sonally liable for said unpaid taxes, fees, penalties, and inter-
All Corporation Business Tax returns and payments must be
made electronically. This mandate includes all returns, esti- est. Compliance with N.J.S.A. 54:50-13 is also required in the
mated payments, extensions, and vouchers. Visit the Division’s case of certain mergers, consolidations, and dissolutions.
website or check with your software provider to see if they sup-
port any or all of these filings. Distortion of Net Income
The Director is authorized to adjust and redetermine items of
Note: Form CBT-100U must be filed electronically even if one gross receipts and expenses as may be necessary to make
or more members of the combined group is a banking a fair and reasonable determination of tax payable under the
corporation or financial business corporation. 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.
A new, simplified, standardized return is being cre-
ated that will replace Form CBT-100U. See the
Division’s website for information about Accounting Method
implementation. 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 filed, use the same accounting method that would have
Before You Begin
been used if a federal return was filed.
Read all instructions carefully before completing returns.
Note: Members that only use I.F.R.S. as their method of ac-
Include a complete copy of the federal Form 1120 (or any counting can use I.F.R.S. when reporting their income;
other federal corporate return) that was filed with the fed- however, the member must include a rider noting the
eral government for (or on behalf of) each member of the com- potential differences, if any, from the rest of the group.
bined group, and include all related forms and schedules that
were filed as part of the full and complete federal return of the Riders
member. For more information, see TB-98(R), Federal Return If space is insufficient, include riders as PDFs in the same form
and the Forms and Schedules to Include with the Corporation as the original printed sheets. The riders must be numbered
Business Tax Return Pursuant to P.L. 2020, C. 118. and clearly list the schedule(s) and line(s) of each correspond-
ing rider item.
Form 1120-F filers attach the 1120-F to the return. If no 1120-F
was completed but the income was reported on Form 5471, Federal/State Tax Agreement
attach the 5471. If a non-U.S. corporation did not file federal The New Jersey Division of Taxation and the Internal Revenue
Form 1120-F and the income was not reported on federal Form Service participate in a federal/State program for the mutual ex-
5471, it must complete an 1120-F reporting its income and tax change of tax information to verify the accuracy and consistency
attributes as though the entity filed a federal return. of information reported on federal and New Jersey tax returns.

Managerial Member Responsibilities
The managerial member acts as the agent on behalf of the Mandatory Combined Reporting
combined group. The managerial member is required to ad- For group privilege periods ending on and after July 31, 2019,
dress all tax matters including, but not limited to: filing and members that are part of a combined group must file a com-
amending tax returns, filing extensions, and making estimated bined New Jersey return, Form CBT-100U. Combined returns
tax payments and/or any tax liability payment on behalf of its are mandatory, not elective.
taxable members. The managerial member is also responsible
for responding to notices and assessments for its combined
Definitions
group. (N.J.S.A. 54:10A-4.10) Combined group is a group of companies that have common
ownership and are engaged in a unitary business, and at least
The managerial member of the combined group must register one company is subject to tax under this chapter. It includes
the group in order to file the combined return. Information on all business entities except as provided for under any section
managerial member registration is available on the Division’s of the Corporation Business Tax Act (1945), P.L.1945, c.162
website. (C.54:10A-1 et seq.). See N.J.S.A. 54:10A-4(z).

Personal Liability of Officers and Directors For privilege periods ending on and after July 31, 2020, a
Even though the managerial member is responsible for making combined group is treated as one taxpayer for purposes of
payments on behalf of the combined group, each taxable mem- paragraph (1) of subsection (c) of section 5 of P.L.1945, c.162
ber is jointly and severally liable for the tax due. In addition, (C.54:10A-5) and section 1 of P.L. 2018, c.48 (C.54:10A-5.41)
any officer or director of any corporation who shall distribute or for the income derived from the unitary business.
cause to be distributed any assets in dissolution or liquidation
to the stockholders without having first paid all corporation Note: Pursuant to N.J.S.A. 54:10A-4(h) a combined group is a
franchise taxes, fees, penalties, and interest imposed on said taxpayer for the purposes of the Corporation Business
corporation, in accordance with N.J.S.A. 14A:6-12, N.J.S.A. Tax Act.

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Common ownership means that more than 50% of the vot- business entities that are members of the unitary combined
ing control of each member of a combined group is directly or group, regardless of whether such members filed a federal tax
indirectly owned by a common owner or owners, either corpo- return or whether such members filed a federal consolidated
rate or noncorporate, whether or not the owner or owners are return(s).
members of the combined group. Whether voting control is in-
directly owned shall be determined in accordance with section Elective Affiliated Group Election. For the purposes of the
318 of the federal Internal Revenue Code, 26 U.S.C. s.318. affiliated group election, “affiliated group” is defined pursuant to
See: N.J.S.A. 54:10A-4(aa). The Division interprets N.J.S.A. N.J.S.A. 54:10A-4(x). Only business entities that are U.S. do-
54:10A-4(aa) to mean that all of the ownership rules, including mestic corporations (as defined in N.J.S.A. 54:10A-4(x)) for the
the beneficial and constructive ownership rules of I.R.C. sec- purposes of the definition can be included in the affiliated group
tion 318 apply since the definition of common ownership states return. Non-U.S. corporations that do not file a federal return
that the control can be direct or indirect. cannot be included in a New Jersey affiliated group combined
return.
Managerial member is the common parent corporation if that
corporation is a taxable member. If the common parent corpo- Note: In most cases, the New Jersey affiliated group com-
ration is not a taxable member, the group must select a taxable bined return constitutes the multinational corporation’s
member to be its managerial member or, at the discretion of entire U.S. footprint.
the Director or upon failure of the combined group to select its
managerial member, the Director will designate a taxable mem- The sole U.S. domestic corporation in a world-wide combined
ber of the combined group as managerial member. group cannot make the affiliated group election on its own. In
this situation, the combined group must file a water’s-edge or
Member is a business entity that is a part of a combined group, world-wide group combined return.
unless otherwise excluded. See “Corporations Required to
File” for more information. An affiliated group election by the U.S. domestic corporations
does not relieve the non-U.S. corporations of their New Jersey
Taxable member is a member that is subject to tax pursuant Corporation Business Tax liability. Thus, a non-U.S. corporation
to the Corporation Business Tax Act (1945), P.L.1945, c.162 organized outside the United States that does not file a federal
(C.54:10A-1 et seq.). See N.J.S.A. 54:10A-4(ff). return, but has nexus with New Jersey, must still file a separate
New Jersey Corporation Business Tax return.
Nontaxable member is a member that is not subject to tax.
See N.J.S.A. 54:10A-4(ee). Allocation Methods for Combined Returns
The two methods available to allocate the income of a com-
Unitary business is a single economic enterprise that is made bined group are “Joyce” and “Finnigan.” These methods are
up either of separate parts of a single business entity or of a differentiated by their determination of the allocation factor.
group of business entities under common ownership that are Under either method, the allocation factor attributes included
sufficiently interdependent, integrated, and interrelated through in the denominator are the same. The denominator includes all
their activities so as to provide a synergy and mutual benefit of the combined group’s total factors, regardless of nexus. See
that produces a sharing or exchange of value among them and Schedule J instructions for more information.
a significant flow of value among the separate parts. A unitary
business shall be construed to the broadest extent permitted
Nexus
under the Constitution of the United States. See N.J.S.A. Each member that has nexus with New Jersey is subject to
54:10A-4(gg) and TB-93, The Unitary Business Principle and the $2,000 minimum tax. A member of a combined group has
Combined Returns, for more information and the full definition nexus if the member meets the standards of N.J.S.A. 54:10A-2
of a unitary business for the purposes of combined reporting. as either part of the unitary business of the combined group
or independent of the combined group. If a member does not
Combined Return Filing Methods have nexus with New Jersey, the member is not subject to the
A combined return is a filing method for a group of business minimum tax.
entities in a unitary business. Determining the combined group
members involves imposing certain statutory limitations, which Note: A taxpayer that is not in a unitary business relationship
affect the treatment of income, allocation factors, and tax attri- with a combined group must file a separate return if the
butes. This decision is commonly referred to as “world-wide vs. taxpayer has nexus with New Jersey and the manage-
water’s-edge.” As an alternative, there is an option to file the rial member of the combined return does not make the
New Jersey combined return as an “affiliated group” as defined election to file the affiliated group combined return.
by statute. Information is available in TB-89(R), Combined
Group Filing Methods.
Mandatory Default Water’s-Edge Group Basis returns in- Corporations Required to File
If one member of a combined group has nexus, the combined
clude only entities with significant business operations within group must file a New Jersey combined return.
the United States, with several inclusions and exceptions. This
is the mandatory default filing method. Combined report- In general, every corporation existing under the laws of the
ing is not elective. See N.J.S.A. 54:10A-4.8; N.J.S.A. 54:10A- State of New Jersey is required to file a Corporation Business
4.10; N.J.S.A. 54:10A-4.11; and TB-89(R) for more information Tax return.
on the entities that are statutorily required to be included.
A foreign corporation has nexus if that foreign corporation:
Elective World-Wide Group Election. When making a world-
wide group election, the combined group must include all of the 1. Holds a general certificate of authority to do business in this
income, attributes, and allocation factors of all of the worldwide State issued by the Secretary of State; or

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2. Holds a certificate, license, or other authorization issued Note: A regular captive insurance company that does not
by any other department or agency of this State, authoriz- meet the definition of a combinable captive insurance
ing the company to engage in corporate activity within this company in N.J.S.A. 54:10A-4(y) is still exempt from the
State; or Corporation Business Tax.
3. Derives income from this State; or
Foreign Sales Corporations (FSC).An FSC must complete
4. Employs or owns capital in this State; or this return as though no election had been made under Sec-
5. Employs or owns property in this State; or tions 922-927 of the Internal Revenue Code. FSCs must com-
6. Maintains an office in this State. plete all applicable schedules on the return. Under Section 5,
P.L. 106-519, no corporation may elect to be an FSC after
Foreign corporations see N.J.A.C. 18:7-1.6; N.J.A.C. 18:7- September 30, 2000.
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-79(R), Nexus for Corporation Busi- Financial Business Corporations. Corporations that qualify
ness Tax, for more information on nexus. as financial businesses, those that derive 75% of their gross in-
come from the financial activities enumerated at N.J.A.C. 18:7-
A foreign corporation that is a partner of a New Jersey partner- 1.16(a)1 through (a)7, must use Schedule A-7 as a worksheet
ship is deemed subject to tax in the State and must file a return. and keep with their records. It does not need to be included
with the return. Schedule A-7 is available on the Division’s
Corporations Claiming P.L. 86-272. If the entire combined website. The combined return must be filed electronically even
group is claiming immunity from tax pursuant to P.L. 86-272, if one or more members of the combined group is a financial
each member must complete Schedule N, Nexus – Immune business corporation.
Activity Declaration and the Nexus Questionnaire. In addition,
the combined group must complete page 1, the Members and Banking Corporations. A banking corporation filing as part
Affiliates Schedule, and Schedules A, A-2, A-3, and A-4. Pay- of a combined group that uses a fiscal year basis must align
ment for the related minimum tax liability and the installment its privilege period with the combined group. For more infor-
payment (if applicable) must be submitted. P.L. 86-272 filers mation, see TB-91, Banking Corporations and Combined Re-
are not subject to the surtax imposed by N.J.S.A. 54:10A-5.41. turns. The combined return must be filed electronically even
if one or more members of the combined group is a banking
New Corporations. Every New Jersey corporation acquires a corporation.
taxable status beginning 1) on the date of its incorporation, or
2) on the first day of the month following its incorporation if so Professional Corporations. Corporations formed under
stated in its certificate of incorporation. Every corporation that N.J.S.A. 14A:17-1 et seq. or any similar laws of a possession
incorporates, qualifies, or otherwise acquires a taxable status or territory of the U.S., a state, or political subdivision thereof,
in New Jersey must file a Corporation Business Tax return. must complete Schedule PC. Examples of licensed profes-
sionals include certified public accountants, architects, optom-
S Corporations. Federal S corporations that have not elected etrists, professional engineers, land surveyors, land planners,
and been authorized to be New Jersey S corporations must chiropractors, physical therapists, registered professional
complete this return as though no election had been made nurses, dentists, osteopaths, physicians and surgeons, doctors
underI.R.C. § 1362. A copy of Form 1120-S as filed must of medicine, doctors of dentistry, podiatrists, veterinarians, and
be submitted. Lines 1 through 28 in Part I, Schedule A of the attorneys.
CBT-100U must be completed.
Inactive Corporations. Inactive corporations that, during the
New Jersey S Corporations. New Jersey S corporations period covered by the return, did not conduct any business, did
that elect to be included as a member on the combined re- not have any income, receipts or expenses, and did not own
turn will be taxed in the same manner as the other members any assets must complete Schedule I – Certificate of Inactivity
of the combined group. A copy of Form 1120-S as filed must in addition to page 1, the Members and Affiliates Schedule,
be submitted. Lines 1 through 28 in Part I, Schedule A of the and Schedules A, A-2, A-3, and A-4. Payment for the related
CBT-100U must be completed. A New Jersey S corporation minimum tax liability and the installment payment (if applicable)
that elects to be included as a member on a New Jersey must be submitted electronically.
Combined Return is treated in the same manner as a hybrid
corporation (i.e. a non-electing federal S corporation that is Portion of a Company’s Operations That are Nonunitary
a C corporation for CBT purposes), and does not need to file With This Combined Group. There are instances when a
a CBT-100S for the privilege periods that the New Jersey S portion of a member’s business operations are independent of
corporation elects to be a member of the combined group. See the unitary business activity of the combined group. Only the
GIT-9S, Income From S Corporations for more information on income, attributes, and allocation factors related to the portion
hybrid corporations. of a company’s operations that are part of a unitary business
of the combined group are included in the calculation of the
Domestic International Sales Corporations (DISC). A DISC combined group’s entire net income and allocation factor. The
must complete this return as though no election had been remaining portion of a member’s business operations may
made under Sections 992-999 of the Internal Revenue Code. A be subject to tax separately from the combined group if such
DISC must complete all applicable schedules on the return. member individually conducts business in New Jersey or with
another combined group (if it is engaged in a unitary business
Combinable Captive Insurance Companies. Combinable with that combined group that also conducts business in New
captive insurance companies are no longer exempt from the Jersey and files a CBT-100U).
Corporation Business Tax.
Note: A combined group member with business operations
that are independent of the unitary business activity of

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the combined group must report such income on Sched- • Professional Corporations
ule X. Schedule X will be used to calculate the New Jer- • Any other business entities however and/or wherever in-
sey taxable net income of that separate activity income corporated or formed that are treated as corporations for
that must be reported in Part III of Schedule A of the federal purposes except when excluded by statute or as
CBT-100U. Include a copy of Schedule X if completed. described below
See Schedule X instructions for more information.
Casino Licensees
See “Additional Forms and Instructions” for details on obtaining Pursuant to the Casino Control Act, any business conducted
Schedule X. by an individual, partnership, or corporation or any other entity,
or any combination thereof, holding a license in New Jersey
Former Member of Combined Group. A taxpayer that was is required to file a consolidated return. A consolidated return
a member of a combined group filing a New Jersey combined is similar to an affiliated group combined return. See N.J.S.A.
return for part of the group privilege period and subsequently 5:12-148. All Casino licensees are taxable members. The affili-
departs the combined group to file on a separate entity basis ated businesses that are unitary with the casino licensees must
must report the income for months subsequent to departing the also be included when completing CBT-100U.
combined group on a separate return (Form CBT-100) unless
the member joined a second combined group that files a New Note: Casino licensees filing as members of a combined
Jersey combined return. The taxpayer filing a separate return group on Form CBT-100U meet the consolidated filing
would not report the income on CBT-100 for the months the requirements of both the Corporation Business Tax Act
member was part of the combined group. Likewise, a taxpayer and Casino Control Act (N.J.S.A. 5:12-148). No other
that joined a second combined group that files a New Jersey additional consolidated return is required for the privi-
combined return would only report on the second group’s lege period as long as the casino licensee is included
return the income for the months the member was part of the as a member of the New Jersey combined group filing
second combined group. If determining what amount of income the CBT-100U. Casino licensees should report their net
is attributable to the portions of the 12-month period are for gaming receipts in accordance with U.S. G.A.A.P. and
the periods before and after departing a combined group, the federal tax purposes on Schedule J.
taxpayer must prorate their income/losses and receipts.
Disregarded Entities
Note: For a taxpayer that is a member of a combined group A business entity that is treated as a disregarded entity for
filing a New Jersey combined return and that member federal income tax purposes is also treated as a disregarded
properly dissolved and received tax clearance during entity for New Jersey Corporation Business Tax purposes pur-
the group privilege period, the income and tax liabilities suant to N.J.S.A. 42:2C-92. Disregarded entities also include
of that member for the part of the group privilege period legal partnerships that are disregarded entities for federal
the member existed prior to dissolution must be reported purposes. A disregarded entity is not itself a member of a
on the combined return. combined group. However, the tax attributes of a disregarded
entity are reported by a member of a combined group when
Included and Excluded Entity Types the member owns the disregarded entity. The attributes of a
Not all business entities are included in a combined group. disregarded entity owned by a member of a combined group
The lists below provide information on which entities are or are are included in the income and allocation factor of that mem-
not included. Additional information is available in TB-86(R), ber as well as the combined group. In making a determination
Included and Excluded Business Entities in a Combined Group of which members are included in a water’s-edge combined
and the Minimum Tax of a Taxpayer that is a Member of a group pursuant to N.J.S.A. 54:10A-4.11, the disregarded enti-
Combined Group. ty’s attributes shall be used by the member that owns the disre-
garded entity. A disregarded entity is not subject to the $2,000
Included Entity Types minimum tax as a member of a combined group because a
• U.S. Corporations disregarded entity is not a member of the combined group.
• Foreign Corporations However, if a disregarded entity is part of a unitary business of
• Casino Licensees a combined group, the owner of the disregarded entity will be
a member of the combined group and must be included as part
• Banking Corporations of the combined group except as otherwise excluded.
• Financial Corporations
• Limited Liability Companies (unless treated as partnerships Entities that File as Partnerships for Federal Purposes
or disregarded entities for federal purposes) Partnerships, limited partnerships, or limited liability compa-
nies treated as partnerships for federal purposes are business
• Foreign Limited Liability Companies (unless treated as part-
entities that can be unitary with a combined group. However,
nerships or disregarded entities for federal purposes)
these entities are not members of a combined group for New
• Federal S Corporations (that have not made a New Jersey Jersey Corporation Business Tax purposes. Their income
S Corporation election) flows through to the corporate partners that are members of
• New Jersey S Corporations (that have elected to be in- the combined group. Partnerships, limited partnerships, and
cluded in the combined group) limited liability companies that are treated as partnerships for
• Combinable Captive Insurance Companies federal purposes are not subject to the $2,000 minimum tax as
members of a combined group because they are not members
• Qualified Subchapter S Subsidiaries (that have not made a of the combined group. However, Form NJ-CBT-1065 must still
New Jersey S Corporation election) be filed.
• New Jersey Qualified Subchapter S Subsidiaries (that
elected to be included in the combined group)

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Excluded Entity Types                                                           accounting years. In this case, taxpayers will need to contact 
•  New Jersey S Corporations that do not elect inclusion in the                 the Division for assistance.
  combined group 
                                                                                The combined group’s reporting period for the New Jersey 
• New Jersey Qualified Subchapter S Subsidiaries that do not                    combined return is the same tax period that the managerial 
  elect inclusion in the combined group                                         member uses for federal purposes. Generally, this is the same 
• Captive Insurance Companies that do not meet the defini-                      privilege period as the federal consolidated return since in 
  tion of a Combinable Captive Insurance Company as de-                         most instances the managerial member is one of the members 
  fined in N.J.S.A. 54:10A-4(y)                                                 included in the federal consolidated return. Any members that 
                                                                                operate under a different return period must file a short-period 
•  All other insurance companies that are not Combinable                        return to align their privilege periods with the group’s privilege 
  Captive Insurance Companies                                                   period. This is done on a separate return. Affected mem-
•  Corporations exempt from the Corporation Business Tax                        bers must also fiscalize or annualize their income and attri-
  under N.J.S.A. 54:10A-3                                                       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.
• Corporations that are regulated, in whole or in part, by the 
  Federal Energy Regulatory Commission, the New Jersey                          Extension of Time to File
  Board of Public Utilities, or similar regulatory body of an-                  The Tentative Return and Application for Extension of Time to 
  other state, with respect to rates charged to customers for                   File, Form CBT-200-T, must be filed and paid electronically. 
  electric or gas services and water and wastewater services                    You can also check with your software provider to see if the 
• Real Estate Investment Trusts                                                 software you use supports filing of extensions.

• Regulated Investment Companies                                                Combined groups filing Form CBT-100U will automatically re-
• Investment Companies                                                          ceive a six-month extension only if they have paid at least 90% 
                                                                                of the tax liability and timely filed Form CBT-200-T.
A taxpayer that has nexus with New Jersey that is excluded 
                                                                                An extension of time is granted only to file the New Jersey 
from the New Jersey combined return must file a separate 
                                                                                combined return. There is no extension of time to pay the tax 
return. 
                                                                                due. The Division will notify you only if we deny your extension 
                                                                                request, but not until after you actually file your return. Pen-
                                                                                alties and interest are imposed whenever tax is paid after the 
When to File                                                                    original due date.
2022 Accounting Periods and Due Dates
The 2022 Corporation Business Tax return should only be                         Note:  An extension payment must include any applicable pro-
used for accounting periods ending on and after July 31, 2022,                         fessional corporation (PC) fees and/or installment pay-
through June 30, 2023.                                                                 ments. See the online application for more information. 
In general, the New Jersey Corporation Business Tax returns 
and payments, except estimated payments, are due 30 days 
after the original due date of the federal corporate income tax                 How to Pay 
                                                                                The managerial member acts as the agent on behalf of the 
return. For the administrative convenience of both the Division                 combined group and is responsible for making payments on 
and taxpayers, Corporation Business Tax returns filed by the                    behalf of the group.
15th day of the fifth month following the close of the privilege 
period are considered timely even if that date is more than 30                  To make payments electronically, go to the Division of Taxa-
days after the federal due date. If the due date falls on a week-               tion’s website. Managerial members who do not have access 
end or a legal holiday, the return and payment are due on the                   to the internet can call the Division’s Customer Service Center 
following business day. Use the following schedule for 2022                     at (609) 292-6400.
CBT-100U forms and payments:
                                                                                If registered, payments can also be made by Electronic Funds 
If accounting   July 31,  Aug. 31,  Sept. 30,  Oct. 31, Nov. 30,  Dec. 31,      Transfer (EFT). For information or to enroll in the program, visit 
period ends on: 2022     2022      2022     2022        2022     2022
Due date for    Dec. 15,  Jan. 15,  Feb. 15,  Mar. 15,  Apr. 15, May 15,        the Division of Revenue and Enterprise Services’ website, call 
filing is:      2022     2023      2023     2023        2023     2023           (609) 292-9292, fax (609) 984-6681, or write to NJ Division of 
If accounting   Jan. 31, Feb. 28,  Mar. 31, Apr. 30,    May 31,  June 30,       Revenue and Enterprise Services, EFT Section, PO Box 191, 
period ends on: 2023     2023      2023     2023        2023     2023           Trenton, NJ 08646-0191. 
Due date for    June 15,  July 15, Aug. 15, Sept. 15,   Oct. 15, Nov. 15, 
filing is:      2023     2023      2023     2023        2023     2023
                                                                                Note:  Managerial members that are required to remit pay-
A New Jersey combined return must be filed for the account-                            ments by EFT can satisfy the EFT requirement by mak-
ing period (calendar or fiscal, as applicable) of the managerial                       ing e-check or credit card payments.
member of the combined group, or part of the period, begin-
ning on the date the combined group acquired a taxable sta-
tus in New Jersey regardless of whether it had any assets or                    Penalties and Interest
conducted any business activities. All accounting periods must                  Each taxable member is jointly and severally liable for any 
end on the last day of the month, except that the managerial                    penalties and interest assessed. See N.J.S.A. 54:10A-4.8 
member may use the same 52-53 week accounting year that                         and N.J.S.A. 54:10A-4.10.
is used for federal income tax purposes. The Division is aware                  Insufficiency Penalty. If the amount paid with the Tentative 
that taxpayers cannot properly input dates for 52-53 week                       Return, Form CBT-200-T, is less than 90% of the tax liability 

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computed on Form CBT-100U, or in the case of a combined 
group with a preceding return covering a full 12-month period               Amended Returns
                                                                            To amend CBT-100U returns, use the CBT-100U form for the 
that is less than the amount of the tax computed at the rates               appropriate tax year. 
applicable to the current accounting year but on the basis of 
the facts shown and the law applicable to the preceding ac-                 All CBT-100U amended returns must be submitted 
counting year, the combined group may be liable for a penalty               electronically. 
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               Final Determination of Net Income by Federal Government. 
of actual payment.                                                          Any change or correction made by the Internal Revenue Ser-
                                                                            vice to the federal taxable income must be reported to the Divi-
Late Filing Penalty. 5% per month or part of a month on the                 sion within 90 days. 
amount of underpayment not to exceed 25% of that underpay-
ment, except if no return has been filed within 30 days of the 
date on which the first notice of delinquency in filing the return 
was sent, the penalty will accrue at 5% per month or part of a              Page 1 Line-by-Line Instructions
                                                                            Enter the unitary ID number, unitary group name, and complete 
month of the total tax liability not to exceed 25% of such tax 
                                                                            mailing address in the space provided on the return. Also pro-
liability. Also, a penalty of $100 for each month the return is de-
                                                                            vide the managerial member’s FEIN, name, complete mailing 
linquent may be imposed.
                                                                            address, and contact information. 
Late Payment Penalty. 5% of the balance of tax due paid after 
                                                                            Check the box if this is an amended return.
the due date for filing the return may be imposed.
                                                                            If filing an amended return, enter the applicable code in the 
Interest. 3% above the average predominant prime rate for 
                                                                            boxes provided. If using code 10, “Other,” enter the reason in 
every month or part of a month the tax is unpaid, compounded 
                                                                            the lines provided. If more space is needed, include a rider.
annually. At the end of each calendar year, any tax, penalties, 
and interest remaining due will become part of the balance on               1.  Change in allocation factor
which interest will be charged. The interest rates assessed by              2.  IRS audit
the Division of Taxation are published online.                              3.  Amended federal 1120 filed
                                                                            4.  To take credit for payments/payments made by a 
Note: The average predominant prime rate is the rate as 
                                                                                partnership
      determined by the Board of Governors of the Federal 
                                                                            5.  Adjustments to ENI
      Reserve System, quoted by commercial banks to large 
                                                                            6.  To change credit request to refund request or refund 
      businesses on December 1st of the calendar year im-
                                                                                request to credit request
      mediately preceding the calendar year in which payment 
                                                                            7.  Change in filing period
      was due or as redetermined by the Director in accor-
                                                                            8.  Change in tax credits reported
      dance with N.J.S.A. 54:48-2.
                                                                            9.  Adding or subtracting a combined return member
Collection Fees. In addition, if the tax bill is sent to our col-           10. Other
lection agency, a referral cost recovery fee of 11% of any tax, 
                                                                            Check the box to indicate which filing method is being used. 
penalties, and interest due will be added to the liability in accor-
                                                                            A New Jersey combined return will default to a water’s-edge 
dance with N.J.S.A. 54:49-12.3. If a certificate of debt is issued 
                                                                            group, unless the managerial member makes a world-wide or 
for the outstanding liability, a fee for the cost of collection of the 
                                                                            affiliated group election (N.J.S.A. 54:10A-4.11). The election 
tax may also be imposed.
                                                                            must be made on a timely filed original combined return in the 
Underpayment of Estimated Tax. To calculate the amount of                   privilege period it becomes effective. The world-wide group 
interest for the underpayment of estimated tax, complete either             election and affiliated group election cannot be made at the 
Form CBT-160-A or Form CBT-160-B. If the combined group                     same time, and the managerial member can only choose one 
qualifies for any of the exceptions to the imposition of interest           election. The elections are binding for the privilege period of 
for any of the installment payments, Part II must be completed              the election plus five subsequent privilege periods. If filing on 
and submitted with the return as evidence of such exception.                an affiliated group or world-wide basis, indicate the number of 
                                                                            years into the election period of the combined group.
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               Check the box to indicate the entire combined group is claim-
assessment in accordance with N.J.S.A. 54:49-9.1.                           ing P.L. 86-272. 

Transacting Business Without a Certificate of Authority. In                 If claiming P.L. 86-272, Schedule N, Nexus – Immune Activity 
addition to any other liabilities imposed by law, a foreign corpo-          Declaration and the Nexus Questionaire, must be completed 
ration that transacts business in this State without a certificate          for each member. In addition the combined group must com-
of authority shall forfeit to the State a penalty of not less than          plete page 1, the Members and Affiliates Schedule, and Sched-
$200, nor more than $1,000 for each calendar year, not more                 ules A, A-2, A-3, and A-4. Payment for the related minimum 
than 5 years prior thereto, in which it shall have transacted               tax liability and the installment payment (if applicable) must be 
business in this State without a certificate of authority. N.J.S.A.         submitted. P.L. 86-272 filers are not subject to the surtax im-
14A:13-11(3).                                                               posed by N.J.S.A. 54:10A-5.41.

                                                                            Line 1 – Total Tax of Combined Group
                                                                            Enter amount from line 5, column (a) of Schedule A, Part III. 

                                                                       - 6 -

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Line 2 – Total Tax Credits Used by Combined Group Line 10 – Payments Made by Partnerships
Enter amount from line 6, column (a) of Schedule A, Part III. Include the total payments made by partnerships on behalf
of the members. Total the amounts reported in column 7 of
Line 3 – Total Combined Group CBT Tax Liability Schedule P-1, Part I for all members. Submit copies of the
Enter amount from line 7, column (a) of Schedule A, Part III. NJK-1s or K-1s (as applicable) reflecting payments made by
each partnership entity.
Line 4 – Total Surtax of Combined Group Members
Enter amount from line 8, column (a) of Schedule A, Part III. Line 11a – Total Refundable Tax Credits
Add the amounts from Schedule A-3, Part II, line 5 and Sched-
Line 5 – Total Combined Group Tax Due ule A-3, Part II, line 6 and enter the total.
Enter amount from line 9b, column (a) of Schedule A, Part III.
Line 11b – Total Refundable Tax Credits Refunded to
Line 6 – Installment Payments Members
The managerial member is required to make installment Enter the amount from Schedule A-3, Part II, line 5. This
payments of estimated tax on behalf of the combined group. amount will be refunded to the managerial member, which is
The requirement for making these payments is based on the responsible for distributing to the appropriate group members.
amount of the total tax liability shown on the most recent re-
turn. Any payment not made under the NU number must be Line 11c – Total Refundable Tax Credits Applied to Group
transferred. Visit the Division’s website for more information. Enter the amount from Schedule A-3, Part II, line 6.

• If the 2022 Total Tax Liability is greater than $500, the Line 12 – Total Payments and Credits
managerial member must make installment payments to- Add lines 9, 10, and 11c and enter the result.
ward 2023. These payments are to be made electronically
on Form CBT-150 and are due on or before the 15th day Amount Due or Overpayment – Lines 13–18
of the 4th, 6th, 9th, and 12th months of the tax year. If the Compare lines 12 and 8.
combined group has gross receipts greater than or equal
to $50,000,000 must make installment payments on the • If line 12 is less than line 8, you have a balance due. Com-
15th day of the 4th, 6th, and 12th months of the tax year. plete lines 13, 14, and 15.
Information on making these payments can be found on the • If line 12 is more than line 8, you have an overpayment.
Division’s website. Complete line 14 (if applicable) and lines 16 through 18.
• If the 2022 Total Tax Liability is $500 or less, installment Line 13 – Balance of Tax Due
payments may be made as indicated above OR in lieu of Subtract line 12 from line 8 and enter the difference.
making installment payments, the managerial member may
make a payment of 50% of the 2022 total tax liability. For a Line 14 – Penalty and Interest Due
combined group that qualifies and want to take advantage Include any penalties and interest. See “Penalties and Interest”
of this option, enter on line 6, 50% of the amount on line 5. for information.
This will become part of the payment to be made with the
2022 return and installment payments will not be required. Note: If the group has an overpayment or no tax liability and
This payment should be claimed as a credit when filing the has calculated penalties and interest due, such amounts
2023 return. There are rare instances where tax credits can must be added to the balance due line or subtracted
take the combined group’s total tax liability to $500 or less. from the overpayment.
The only way a combined group could use this estimated
payment method is if it claims such tax credit(s). Line 15 – Total Balance Due
Enter the total of line 13 and line 14.
Line 7 – Professional Corporation Fees
Enter amount from the combined group column of Sched- Line 16 – Amount Overpaid
Subtract the sum of line 8 and line 14 (if applicable) from the
ule PC, line 9.
amount on line 12.
Line 8 – Total Tax and Professional Corporation Fees
Enter the total of lines 5, 6, and 7. Line 17 – Refund
Enter the amount of the overpayment to be refunded. This
Line 9 – Payments and Credits amount will be refunded to the managerial member.
Include on this line:
Line 18 – Credit to 2023
• Installment tax payments made for 2022; Enter the amount of the overpayment that you want to credit to
the 2023 combined group tax liability.
• Amounts paid with tentative return (form CBT-200-T);
• Any overpayment from the preceding tax return that the Signature
taxpayer elected to have credited to the current year’s tax. Each return must be signed by an officer of the managerial
Do not include any amount of the overpayment that the tax- member who is authorized to attest to the truth of the state-
payer elected to have refunded;. ments contained therein and to acknowledge that they un-
derstand they are required to include copies of their federal
Note: Professional corporation installment payments from the return(s), forms, and schedules. The fact that an individual’s
prior year may not be used to offset any current year tax name is signed on the return shall be prima facie evidence that
liability and are not eligible for refund. such individual is authorized to sign the return on behalf of all
of the members of the combined group.

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Tax preparers who fail to sign the return or provide their would not be in federal taxable income. If a non-U.S. corpo-
assigned tax identification number shall be liable for a $25 ration did not file federal Form 1120-F or was not reported on
penalty for each such failure. If the tax preparer is not self-em- federal Form 5471, it must complete an 1120-F reporting its
ployed, the name of the tax preparer’s employer and the income and tax attributes as though the entity filed a federal
employer’s tax identification number should also be provided. return. For New Jersey purposes, on Schedule A, in Part I and
In the case of a corporation in liquidation or in the hands of a Part II, the non-U.S. corporation will make the additions and
receiver or trustee, certification shall be made by the person deductions. All data must match the federal return that was
responsible for the conduct of the affairs of such corporation. filed or that would have been filed.

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;
Members and Affiliates Schedule
Enter the requested information for each member of the however, the member must include a rider noting the
combined group. If necessary, include a rider detailing the re- potential differences, if any, from the rest of the group.
quested information. This schedule is used, in part, to add and
remove members from the group. Any members included on Federal Consolidated Return Principles
this schedule that were not included on the last CBT-100U that Combined returns are not necessarily the same as a consoli-
was filed will be added to the group. Likewise, any member dated return, although they are similar. The principles set forth
that was included on the last CBT-100U but is not included on in the Treasury regulations promulgated under Section 1502
this schedule will be removed from the group. All members that of the Internal Revenue Code generally apply to the extent
were part of the group for any part of the tax period must be consistent with the New Jersey Corporation Business Tax Act
included on this schedule. and the unitary business principle to a combined group filling
a New Jersey combined return. See N.J.S.A. 54:10A-4.6(h).
Non-U.S. Corporations and Other Corporations However, for purposes of the New Jersey Corporation Busi-
ness Tax Act, the starting point for taxable income is entire
Without a Distinct Federal ID Number net income before net operating losses and special deduc-
There are situations where a corporation does not
have a federal ID number or does not have its own tions with several modifications for additions and deductions.
separate distinct federal ID number. When entering See N.J.S.A. 54:10A-4.6.e; N.J.S.A. 54:10A-4(k); N.J.S.A.
the ID number for these corporations, enter 999-999-991, 999- 54:10A-4(bb); and MCI Communication Services, Inc. v. Direc-
999-992, 999-999-993, etc., using consecutive numbers for tor Division of Taxation, Docket No. 013905-2010, (Tax Court
each additional corporation included in the return. If the corpora- of New Jersey 2015); affirmed 2018 N.J. Super. Unpub. LEXIS
tion has its own distinct New Jersey State ID number, enter 1401; cert. denied 195 A.3d 528 (October 18, 2018).
that number instead.
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
Schedule A they filed a single federal consolidated return. This is true re-
The managerial member must complete this schedule for each gardless of whether the members of the New Jersey combined
member. return are on one federal consolidated return. See TB-87,
Guidance for Corporation Business Tax Filers and the IRC §
Intercompany Eliminations 163(j) Limitation, for more information.
Enter member’s amounts in the member’s column. In column
(c), enter the total amounts of all members prior to intercom- Note: For the purposes of I.R.C. § 163(j), New Jersey follows
pany eliminations and adjustments. In column (b), enter the in- the Coronavirus Aid, Relief, and Economic Security
tercompany eliminations and adjustments. In column (a) enter (CARES) Act.
the total amounts for the combined group after intercompany
eliminations and adjustments. To the extent consistent with the Corporation Business Tax Act
(1945), the federal rules and regulations governing consoli-
Income of the Combined Group dated return net operating losses and net operating loss car-
The relevant portions of N.J.S.A. 54:10A-4.6 require the in- ryovers apply to the New Jersey net operating loss carryover
come of the members derived from the unitary business of provisions under N.J.S.A. 54:10A-4.6(h) as though the com-
the combined group to include what was reported for federal bined group filed a federal consolidated return, regardless of
purposes (federal taxable income before federal net operating how the members of the combined group filed for federal pur-
losses and federal special deductions) modified for New Jer- poses. See N.J.S.A. 54:10A-4.6(m) and N.J.S.A. 54:10A-4.5.
sey modifications (additions and subtractions) required by the
Corporation Business Tax Act. See N.J.S.A. 54:10A-4(k). For a Intercompany Dividend Elimination
member of the combined group that is a non-U.S. corporation, N.J.S.A. 54:10A-4.6 allows a 100% intercompany dividend
N.J.S.A. 54:10A-4.6.b requires all of the income be included elimination for dividends and deemed dividends between mem-
even if the entity did not file a federal return. In instances bers of the combined group included on the same New Jersey
where the other members of the combined group filed a federal combined return. This elimination is a pre-allocation elimination
form 5471 with the IRS reporting the non-U.S. members in- that occurs in column (b) of Schedule A, Part I or on Sched-
come, the form 5471 may be used if the non-U.S. member did ule A, Part II (above line 21). Dividends and deemed dividends
not file Form 1120-F. However, the copy of the Form 5471 that from subsidiaries that are not included as members of the
was filed with the federal government must be included with combined group are not eligible for this elimination, but may
the combined return. The member’s income and tax attribute be eligible for the dividend exclusion in Schedule R if those
data from Form 5471 must be entered in Part I of Schedule A dividends and deemed dividends received from the excluded
in that member’s column as though the taxpayer filed a federal subsidiaries are part of the unitary business of the combined
return, and in Part II, line 2, enter the amount of income that group.
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Part I – Computation of Entire Net Income The managerial member must include a copy of
Lines 4b and 4c – FDII and GILTI the federal returns and any forms or schedules
The gross I.R.C. § 951A and the gross I.R.C. § 250(b) that accompanied the returns that were filed with
amounts included in income for federal purposes must be the Internal Revenue Service. Failure to include
included for New Jersey purposes. Enter the gross I.R.C. § the forms and schedules will result in an incomplete New
951A (GILTI) and/or the gross I.R.C. § 250(b) (FDII) amounts. Jersey Corporation Business Tax return and the taxpayer
Do not enter negative amounts on line 4b or 4c of Sched- may be assessed penalties and interest for noncompliance.
ule A, Part I. Include a copy of federal Forms 8993 and 8992 See Technical Bulletin, TB-98, Federal Return and the Forms
that were completed and submitted with federal Form 1120. Do and Schedules to Include with the Corporation Business Tax
not enter the net numbers. The I.R.C. § 250(a) deductions Return Pursuant to P.L. 2020, C. 118.
are taken in Schedule A, Part II since the I.R.C. § 250(a) de-
ductions permitted by N.J.S.A. 54:10A-4.15 are special deduc-
tions taken below line 28 for federal purposes (and are to be Part II – Modifications to Entire Net Income
taken below in Part II, and not in Part I). Additions
Line 1a – Taxable income/(loss)
A combined group may include the controlled foreign corpora- Enter the amount from Schedule A, Part I, line 28.
tions (CFC) that generated Global Intangible Low Tax Income
(GILTI) included in other members’ entire net income. Members Line 1b – Separate activity income
of a combined group that are incorporated under the laws of a Enter the amount of entire net income that is not derived from
foreign nation must include all world-wide income regardless the unitary business of the combined group. Also enter this
of whether it is included as income for federal purposes. If the amount on Schedule X, Part I, line 1. See “Portion of a Com-
CFCs are included as members in the combined return, the pany’s Operations That are Nonunitary With This Combined
GILTI income that is attributable to those CFCs should be elim- Group” for more information.
inated on Schedule A in column (b) rather than on an additional
special schedule. Line 1c – Taxable income/(loss) of combined group
Subtract line 1b from line 1a and enter the result. The amount
Note: Only GILTI amounts that are directly attributable to the in column (a) represents the entire net income attributable to
CFC combined group members that are included in the the unitary business of the combined group before New Jersey
same New Jersey combined return can be excluded. additions and subtractions.
GILTI that is not attributable to any of the members of
the same New Jersey combined return cannot be elimi- Note: The amount reported in column (a) on line 1c must
nated in column (b) of Schedule A. match the amount reported on Schedule CG, line 9.

Line 2 – Income of non-U.S. group members
To avoid double reporting the income on Sched- Enter the income attributable to the unitary business of the
ule A, Part I, members must reduce the amounts combined group of the members that were organized in a for-
reported on any other lines by the amount of the eign nation, if such income was not included on line 1c.
FDII and GILTI included on lines 4b and 4c.
Amounts on lines 4b and 4c cannot be negative. Line 3 – Other federally exempt income
All income that was exempt for federal income tax purposes
Line 5 – Interest under any provision of the Internal Revenue Code or any fed-
Include a copy of federal Form 8916A if it was completed. eral law must be added back. If such amounts were not added
back on any other line of Schedule A, include such amounts
Line 8 and Line 9 on line 3 and include a rider detailing such amounts and
Include a rider or schedules showing the same information such provisions of the Internal Revenue Code. See N.J.S.A.
shown on federal Form 1120, Schedule D and/or Form 4797. 54:10A-4(k)(2)(A).
Gains and losses resulting from the disposition of property
where an I.R.C. § 179 expense deduction was passed through Note: Items of income excluded from federal taxable net in-
to S corporation shareholders are not reported on federal Form come pursuant to the specific terms of a treaty do not
4797, and should be reported on Schedule A, Part I, line 10. have to be added back to entire net income. Include a
If a sale of shares of stock or partnership interest resulted in a copy of federal Form 8833 that was included with the
taxable transfer of a controlling interest in certain commercial federal return or a pro forma Form 8833 if none was
real property under N.J.S.A. 54:15C-1, indicate so on a rider. filed for the member.

Line 18 – Interest Line 4 – Interest on federal, state, municipal, and other
Include a copy of federal Form 8916A and/or federal obligations
Form 8990 if completed. Include any interest income that was not taxable for federal in-
come tax purposes and was not included in taxable net income
Line 28 – Taxable income before federal net operating loss reported on line 1c.
deductions and federal special deductions
The amount on line 28 must agree with line 28, page 1, of the Line 5 – New Jersey State and other states taxes
federal Form 1120 or the appropriate line of any other federal Enter the total taxes paid or accrued to the United States, a
corporate return that was filed or would have been filed by the possession or territory of the United States, a state, a political
member. subdivision thereof, or the District of Columbia, or to any for-
eign country, state, province, territory or subdivisions thereof,
on or measured by profits or income, business presence or
business activity, including any foreign withholding tax taken as
a deduction in Part I of Schedule A and reflected in line 28. For
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additional information, see TB-80, Addback of Other States’ Jersey. Do not include any federal previously taxed income that
Taxes, and the Schedule H instructions. was not taxed by New Jersey. Schedule PT is available on the
Division’s website.
Line 6 – Related party interest addback
Enter the total amount of interest deducted on Schedule A Lines 14(a)–14(b) – I.R.C. § 250(a) Deduction
that was paid to related members that were not included as If lines 4b and 4c of Schedule A, Part I include GILTI and/or FDII
members of this combined return and reported on Schedule G, amounts, enter the amount of the deduction allowable and taken
Part I. See Schedule G instructions for more information. for federal purposes under I.R.C. § 250(a) on the appropriate
line. The amounts claimed must match the amounts reported on
Line 7 – Related party intangible expenses and costs federal Form 8993 (federal Form 8993 must be submitted).
addback
Enter the total amount of intangible expenses and costs de- Note: If the GILTI income (or portion thereof) or FDII income
ducted on Schedule A that was paid to related members not (or portion thereof) amounts were excluded from the tax
included as members of this combined return and reported base or exempt from taxation by this State, no deduction
on Schedule G, Part II. See Schedule G instructions for more or portion of the deduction can be taken for the amount
information. of income that was excluded or exempt from taxation.
See N.J.S.A. 54:10A-4.15.
Line 9 – Depreciation modification being added to income
Enter the depreciation and other adjustments being added to Line 14c – Net GILTI previously taxed by New Jersey
income if Schedule S, line 9, is a positive number. See Sched- Enter the amount of net GILTI previously taxed by New Jersey
ule S instructions for more information. not deducted or excluded elsewhere on the return. Attach a
rider detailing the amount of GILTI that was previously taxed
Line 10 – Other additions and the years in which the tax was paid.
Report any other additions to income for which a place has not
been provided somewhere else on the return. This includes, Line 15 – I.R.C. § 78 Gross-Up
but is not limited to: 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/
• Gross income, less deductions and expenses in connection
deducted from taxable net income elsewhere may be treated
with such income, from sources outside the United States, as a deduction. This line cannot include the amount deducted
not included in federal taxable income; under the I.R.C. § 250(a) deduction. Include a copy of federal
• I.R.C. § 199A amounts that were deducted for federal foreign tax credit, Form 1118.
purposes;
Note: I.R.C. § 78 gross-up amounts cannot be included in
• Any deductions for research and experimental expenditures, the dividend exclusion calculation on Schedule R or
to the extent that those research and experimental expen- Form 332, which is the form used to calculate the Tiered
ditures are qualified research expenses or basic research Subsidiary Dividend Pyramid Tax Credit. In addition, if
payments for which an amount of credit is claimed pursuant any portion of the Section 78 amount is included in the
to section 1 of P.L.1993, c.175 (C.54:10A-5.24) unless those member’s Section 250 deduction, the amount being de-
research and experimental expenditures are also used to ducted on line 15 must be reduced accordingly.
compute a federal credit claimed pursuant to I.R.C. § 41.
Line 17a – Nonoperational Activity
Note: Items of income excluded from federal taxable net in- Enter the net effect of the elimination of nonoperational activity
come pursuant to U.S. tax treaties with the following from Schedule O, Part I, line 36. Schedule O is available on
countries are not required to be added back: India, Can- the Division’s website.
ada, Japan, Germany, Mexico, and the United Kingdom.
This list of countries is not all-inclusive. For information Note: Members cannot net nonoperational losses against op-
on a specific treaty country, contact the Division of erational income.
Taxation.
Line 17b – Nonunitary Partnership Income
Include separate riders explaining any items reported. Enter the net effect of the elimination of nonunitary partnership
income and expenses from Schedule P-1, Part II, line 4.
Line 11 – Taxable income/(loss) with additions
Add line 1c through line 10 and enter the total. Note: Members cannot net nonunitary partnership losses
against operational income.
Deductions
Line 12 – Depreciation modification being subtracted from Line 18 – Other deductions
income Report any other deduction adjustments for which a place has
Enter the depreciation and other adjustments being subtracted not been provided somewhere else on the return. Include a
from income if Schedule S, line 15 is a negative number. Enter rider detailing the information.
this amount on line 12 as a positive number. See Schedule S
instructions for more information. Line 19 – Total Deductions
Add lines 12 through 18 and enter the total.
Line 13 – Previously Taxed Dividends
If line 1 includes any dividends that were previously taxed for Line 20 – Entire Net Income/(Loss) Subtotal
New Jersey purposes, complete Schedule PT and Schedule R Subtract line 19 from line 11 and enter the result.
to determine the amount that can be deducted. Include only
dividends that were taxed in a prior privilege period by New

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If column (a) of line 20 is positive, all of the mem- Line 28 – Combined group taxable net income/(loss)
bers will have entire net income derived from the Subtract line 27b from line 26 and enter the result. If less than
unitary business of the combined group. Con- zero, enter zero.
versely, if column (a) of line 20 is negative, all of
the members will have a combined group net operating loss Part III – Calculation of Tax Credits, Minimum
derived from the unitary business of the combined group. Tax and Surtax, and Group Tax
The members will determine their share of the combined For privilege periods ending on and after July 31, 2020, a com-
group net operating loss by using the member’s current year bined group will be treated as one taxpayer for purposes of
allocation factor calculated from Schedule J. This amount be- paragraph (1) of subsection (c) of section 5 of P.L.1945, c.162
comes the member’s post allocation net operating loss for (C.54:10A-5) and section 1 of P.L. 2018, c.48 (C.54:10A-5.41)
the current period available for carryover into future privilege for the income derived from the unitary business. However,
periods. the portion of income that is attributable to a member that is a
public utility exempt from the surtax shall not be included when
Line 21 – Group Allocation Factor from Schedule J computing the surtax due.
Enter the group allocation factor from Schedule J.
Line 1 – Combined group taxable net income/(loss)
Line 22 – Allocated entire net income/(loss) before net op- Enter the amount from Schedule A, Part II, line 28.
erating loss deductions and dividend exclusion
Multiply the group entire net income on line 20, column (a) by Line 2 – Member’s taxable net income from separate
the group allocation factor on line 21 and enter the result. activities
If the member completed Schedule X, include the taxable net
If the amount is zero or less, this is the current year com- income from Part I of Schedule X on this line. If the amount is
bined group net operating loss that can be carried forward zero or less, enter zero. See Schedule X instructions for more
as a post allocation net operating loss (NOL) deduction to a information.
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 23 through 26 and enter zero Line 3a – New Jersey nonoperational income
on line 28. Enter the amount from Schedule O, Part III. See Schedule O
for more information. The schedule is available on the Divi-
Line 23 – Net operating loss (NOL) deduction sion’s website.
Enter the amount from Form 500U, Section C, line 3. Do
not enter more than the amount on line 22. See Form 500U Note: Nonoperational losses cannot be netted against opera-
instructions. tional income.

Line 24 – Allocated entire net income before allocated div- Line 3b – Nonunitary partnership income
idend exclusion Enter the amount from Schedule P-1, Part II, line 5. See
Subtract line 23 from line 22 and enter the result. If the amount Schedule P-1 instructions for more information.
is zero or less, enter zero here and on line 28.
Note: Nonunitary partnership losses cannot be netted against
Line 25 – Allocated dividend exclusion operational income.
Enter the amount from Schedule R, line 12. Do not enter more
than the amount on line 24. See Schedule R instructions for Line 4 – Tax base
more information. Add lines 1 through 3b in column (a) and enter the total.

Pursuant to N.J.S.A. 54:10A-4(k)(5), N.J.S.A. 54:10A-4(u), Line 5 – Amount of tax
N.J.S.A. 54:10A-4(v), and N.J.S.A. 54:10A-4(w), the dividend For the combined group, multiply the amount on line 4 by the
exclusion is now an allocated exclusion. applicable tax rate. The tax rate is imposed at the group level.

Line 26 – Allocated entire net income subtotal • If line 4 is greater than $100,000, the tax rate is 9% (.09).
Subtract lines 25 from line 24 and enter the result. • If line 4 is greater than $50,000 and less than or equal
to $100,000, the tax rate is 7.5% (.075). Tax periods of less
Line 27a – I.B.F. exclusion than 12 months qualify for the 7.5% rate if the prorated en-
If a combined group includes a taxable member that is a bank- tire net income does not exceed $8,333 per month.
ing corporation with an international banking facility as defined
by N.J.S.A. 54:10A-4(n), the combined group is eligible to • If line 4 is $50,000 or less, the tax rate is 6.5% (.065). Tax
deduct such income amounts that were not eliminated (so that periods of less than 12 months qualify for the 6.5% rate if
the entire combined group is treated as one banking corpo- the prorated entire net income does not exceed $4,166 per
ration). The income must have otherwise been eligible for the month.
I.B.F. deduction under N.J.S.A. 54:10A-4(k)(4) and is an allo-
cated amount. See N.J.S.A. 54:10A-4.6(o). Also enter this amount on page 1, line 1.

Note: Income that was eliminated above line 27a is not eligible Line 6 – Tax credits
for the I.B.F exclusion. Enter the amount from Schedule A-3, Part I, line 30. Also enter
this amount on page 1, line 2. Include the applicable credit
Line 27b – Allocated I.B.F. exclusion form(s) with the return. See Schedule A-3 instructions for more
Multiply the amount on line 27a, column (a) by the group allo- information.
cation factor from line 21 and enter the result.

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Line 7 – CBT tax liability Part I – Tax Credits Used Against Liability
Subtract line 6 from line 5 and enter the result. Also enter this On line 30, enter the total credits from all members in the
amount on page 1, line 3. combined group column. This amount must equal the amount
reported on Schedule A, Part III, line 6. Amounts to be entered
Line 8 – Total surtax of combined group for each member are calculated on the credit forms. See the
Enter the amount from Schedule A-5, Part II, line 5. Also enter specific New Jersey Corporation Business Tax Credit form for
this amount on page 1, line 4. information about each credit.

Line 9a – Aggregate minimum tax of combined group Note: Most tax credits cannot reduce the tax liability below the
Multiply the number of taxable group members by $2,000 and minimum tax. However, there are rare instances where it
enter the result. can. Follow the instructions on the credit form regarding
how and where to record the information to ensure the
Line 9b – Tax due credit is properly offsetting the tax liability.
Add the surtax calculated on line 8 to the greater of line 7 or
line 9a. Also enter this amount on page 1, line 5. Part II – Refundable Tax Credits
If a credit form for a member calculates an amount to be re-
Note: If a tax credit can be applied to 100% of the tax liability, funded, enter the refundable portion on the appropriate line for
add the surtax (if applicable) to any remaining liability that member. On line 6, enter the total for all members in the
not exhausted on the credit form and enter the amount combined group column. This amount must equal the amount
on line 9b. reported on page 1, line 11b. 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 11c.
Schedule A-2
Cost of Goods Sold
Enter member’s amounts in the member’s column. In column Schedule A-4
(c), enter the total amounts of all members prior to intercom- Summary Schedule
pany eliminations and adjustments. In column (b), enter the in- This schedule must be completed for each member. Report
tercompany eliminations and adjustments. In column (a), enter the information on each line of Schedule A-4 from the return
the total amounts for the combined group after intercompany schedules indicated. All lines must be completed as applicable.
eliminations and adjustments.

The amounts reported on this schedule must be the same as
the amounts reported on federal Form 1125-A. Include Form Schedule A-5
1125-A with the return. Computation of Group and Member Surtax
For privilege periods beginning on or after January 1, 2020,
a combined group or an affiliated group is a taxpayer for pur-
poses of the surtax; therefore, the surtax is calculated at the
Schedule A-3 group level. If Schedule A, Part III, line 1, column (a) is more
Summary of Tax Credits than $1,000,000, the group is subject to the surtax.
This schedule must be completed if any tax credits are being
claimed for the current tax period. There are various tax credits
Part I – Combined Group Surtax
with a variety of limitations. Each tax credit has its own limita- The combined group surtax portion of this schedule is used to
tions and carryovers. calculate the surtax imposed on the combined group. Part I is
also used to apply the shareable portion of the Pass-Through
Taxpayers must include the appropriate credit Business Alternative Income Tax credit, which is calculated
form in the year the credit was earned even if they on Form 329. The credit is only shareable if the pass-through
are not claiming the credit on their tax return. entity is unitary with both the member and the combined group.
See N.J.S.A. 54:10A-5.43(c)

In general, tax credits are earned by the member of the Line 1 – Combined group taxable net income/(loss)
combined group and are shareable among combined group Enter the amount from Schedule A, Part II, line 28. Public
members. However, members are not required to share their utilities are not subject to the surtax. If an includable public
credits. See N.J.S.A. 54:10A-4.6.i and TB-90, Tax Credits and utility (i.e., a public utility that is not excluded under N.J.S.A.
Combined Returns. See the instructions of the applicable credit 54:10A-4.6(k)) is a member of the combined group, the portion
form(s) for more information. of the taxable net income attributable to that public utility must
be excluded. Subtract the public utility’s portion of Schedule A,
Any tax credit(s) claimed on this schedule must be docu- Part II, line 28 before entering an amount on Schedule A-5,
mented with a valid New Jersey Corporation Business Tax Part I, line 1.
Credit form and must be included with the tax return. See
“Additional Forms and Instructions” for a list of available credit Line 2 – Surtax on combined group taxable net income
forms and for instructions on obtaining them. If a member is Multiply line 1 by the surtax rate. The rate is 2.5% for tax years
claiming a valid tax credit that is allowable in accordance with beginning on or after January 1, 2018, through December 31,
the New Jersey Corporation Business Tax Act for which a place 2023. See Surtax for more information.
has not been provided somewhere else on the schedule, report
the amount on the “Other” line in the appropriate section of
Schedule A-3.

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Line 3 – Pass-Through Business Alternative Income Tax Jersey combined return must be reconciled on this schedule.
Credit Furthermore, differences between federal taxable income
Enter the amount from Form 329, line 23b. Do not enter more and taxable income/(loss) of combined group as reported on
than the amount of surtax on line 2. Include the applicable Schedule A, Part II, line 1(c) must be reconciled here.
credit form(s) with the return. See Schedule A-3 instructions for
more information. Note: If filing under the affiliated group election, the New Jer-
sey combined group must match the members reported
Part II – Member’s Surtax in Section A.
The member’s surtax portion of this schedule is used to calcu-
late the remaining portion of the group’s surtax after the share- Section A – Federal Consolidated Group
able portion of the Pass-Through Business Alternative Income List the entities included in the federal consolidated return(s).
Tax credit is applied. The remaining portion of the combined List the corporation name, federal employer identification num-
group surtax is apportioned to each member and then added to ber (FEIN), and the amount on line 28 of the federal Form 1120
any amount of surtax that a member may have from activities or the appropriate line of any other federal corporate return that
independent of the group. The nonshareable portion of the was filed. The entities listed must match the entities reported
Pass-Through Business Alternative Income Tax credit then is on the federal Form 851.
applied against this amount. The Pass-Through Business Al-
ternative Income Tax credit is nonshareable if the pass through Section B – Members Included in the New Jersey Com-
entity is unitary with the member but not the combined group. bined Group Not Reported in Section A
See N.J.S.A. 54:10A-5.43(d) List any members included in the New Jersey combined group
(CBT-100U) not included in Section A. Any member of the New
Line 1a–1c – Calculating member’s share of combined Jersey CBT-100U that is not reported in Section A (federal con-
group surtax solidated group) must be reported in this section.
Divide the balance of combined group surtax by the group
allocation factor, then multiply the result by the member’s allo- Section C – Members Reported in Section A Not Included
cation factor to arrive at the member’s share of the combined in the New Jersey Combined Group
group surtax. List any entity from Section A that is not part of the New Jer-
sey combined group. Any member of the federal consolidated
Line 2a–2b – Calculating surtax on member’s independent group that is reported in Section A and is not a member of
taxable net income the CBT-100U must be reported in Section C. Members in
Multiply the member’s taxable net income from separate activ- this section will not be part of the New Jersey combined
ities from Schedule X by the surtax rate. The rate is 2.5% for return.
tax years beginning on or after January 1, 2018, through De-
cember 31, 2023. See Surtax for more information. Section D – Adjustments to Federal Taxable Income
Any adjustment to federal taxable income must be reported in
Line 4 – Pass-Through Business Alternative Income Tax this section. Include a rider detailing each adjustment and the
Credit reason for the adjustment.
Enter the amount from Form 329, line 32d. Do not enter more
than the amount of surtax on line 3. Include the applicable
credit form(s) with the return. See Schedule A-3 instructions for Schedule E
more information. Schedule E has been discontinued. If a member has overpay-
ments from a previously filed separate return or that made pay-
Line 5 – Total surtax ments under their own account the managerial member must
Subtract the amount on line 4 in the combined group column provide a spreadsheet separate from the return. Please visit
from the amount on line 3 in the combined group column and the Division’s website for more information.
enter the result. This is the total surtax for the combined group.
Enter this amount on Schedule A, Part III, line 8.
Schedule F
Corporate Officers – General Information and
Schedule B Compensation
Schedule B has been discontinued. The Division will use data Provide all applicable information for each corporate officer
from federal Form 1120, Schedule L. 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
Schedule C and Schedule C-1 1125-E. Include Form 1125-E with your return.
Schedules C and C-1 have been discontinued. The Division
will use data from federal Form 1120, Schedules M-1, M-2, and
M-3.
Schedule G
Interest
If the member is claiming an exception to the disallowance of
Schedule CG the expense reported in Part I or Part II of Schedule G, the
Reconciliation With Consolidated Group member must complete and include Schedule G-2. The sched-
Schedule CG is used to reconcile taxable income of the federal ule is available on the Division’s website.
consolidated group to the taxable income of the members re-
ported on the New Jersey CBT-100U. Any differences between Intercompany transactions between members of the combined
members of the consolidated group and members on the New group are eliminated/adjusted on Schedule A, Part I or Part II
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and are exempt from the related party addbacks pursuant to In computing the allocation factor for the members
N.J.S.A. 54:10A-4(k)(2)(i) and N.J.S.A. 54:10A-4.4. Report and the combined group as a whole, intercom-
those amounts on the respective line of column (b) on Sched- pany receipts are eliminated.
ule A. Do not report these amounts on Schedule G.

Note: Treaty exceptions have been limited pursuant to P.L.
2018, c. 48. There are additional requirements to meet Lines 1–5 – Receipts Fraction
the treaty exceptions that are reported for the purposes Receipts from sales of tangible personal property are allo-
of Part I and Part II of Schedule G. See the instructions cated to New Jersey if the goods are shipped to points within
for Schedule G-2 for more information. New Jersey. Receipts from the sale of goods are allocable to
New Jersey if shipped to a New Jersey or a non-New Jersey
For definitions, see N.J.S.A. 54:10A-4(k)(2)(i) and N.J.S.A. customer where possession is transferred in New Jersey.
54:10A-4.4. Receipts from the sale of goods shipped to a taxpayer from
outside New Jersey to a New Jersey customer by a common
Part I – Interest carrier are allocable to New Jersey. Receipts from the sale
Interest paid, accrued, or incurred to related members that of goods shipped from outside New Jersey to a New Jersey
was deducted in calculating taxable net income on Sched- location where the goods are picked up by a common carrier
ule A, Part I, line 28, must be reported on Schedule G, Part I. and transported to a customer outside New Jersey are not allo-
Enter the total of such interest expense on Schedule A, Part II, cable to New Jersey. Receipts from the following are allocable
line 6. to New Jersey: services performed if the benefit of the service
is received in New Jersey; rentals from property situated in
Do not include interest expenses and costs that were deducted New Jersey; royalties from the use in New Jersey of patents,
directly or indirectly for, related to, or in connection with the copyrights, and trademarks; all other business receipts earned
direct or indirect acquisition, maintenance, management, own- in New Jersey.
ership, sale, exchange, or disposition of intangible property in
Part I of Schedule G. Services are sourced based on market sourcing,
not cost of performance. See N.J.A.C.
Part II – Interest expenses and costs and intangible ex- 18:7-8.10A.
penses and costs
Interest expenses and costs and intangible expenses and
costs directly or indirectly paid, accrued, or incurred to, or in Receipts From Sales of Capital Assets. Receipts from sales
connection directly or indirectly with one or more direct or indi- of capital assets (property not held by the member for sale to
rect transactions with one or more related members that were customers in the regular course of business), either within or
deducted in calculating taxable net income on Schedule A, outside New Jersey, should be included in the numerator and
Part I, line 28, must be reported on Schedule G, Part II. Enter the denominator based on the net gain recognized and not on
the total of such intangible expenses and costs on Schedule A, gross selling prices. If the member’s business is the buying
Part II, line 7. 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
Schedule H of the receipts fraction.
Taxes
Itemize all taxes that were in any way deducted in arriving at Note: The amount of dividends (deemed and/or paid divi-
taxable net income, whether reflected in Schedule A, Part I at dends) excluded from entire net income pursuant to
line 2 (Cost of goods sold and/or operations), line 17 (Taxes), N.J.S.A. 54:10A-4(k)(5), are not included in the numer-
line 26 (Other deductions) or anywhere else on Schedule A. ator or denominator of the receipts fraction. However,
the dividend (deemed and/or paid dividends) values
If the member is an includable public utility corporation (i.e., a that are not excluded are included in the numerator or
public utility that is not excluded from the combined group per denominator.
N.J.S.A. 54:10A-4.6(k)(2)), enter the sales tax paid by the utility
vendor. Schedule J must be completed after calculating
the Dividend Exclusion line on the respective
parts of Schedule R but before calculating the line
Schedule J for the Allocated Dividend Exclusion. The amount
Computation of Group and Members’ Allocation from the Dividend Exclusion line from Schedule R is the
Factors amount to use when calculating the dividends and deemed
Enter each member’s amount in the member’s column. All dividends excluded from the numerator and/or denominator
members must complete this schedule to calculate the alloca- for the purposes of completing Schedule J.
tion factor.
Line 9 – Allocation Factor
Only activities related to operational activity are to be used in Divide line 6c by the group denominator from line 8 and enter
computing the general allocation factors. If the member has the result. When computing the allocation factor on Sched-
nonoperational activity, see Schedule O. If the member has ule J, division must be carried to six (6) decimal places, e.g.,
nonunitary partnership income, see Schedule P-1. 0.123456.

Note: Eliminations and adjustments are made before calculat-
ing the Allocation Factor, and the Allocation Factor must

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be calculated using post-elimination and adjustment group’s mobile assets in this State by type of mobile asset and
numbers. the denominator of which is the total ton miles traveled by the
combined group’s mobile assets everywhere. This section ap-
Sourcing GILTI and FDII for Combined Groups plies if 50% or more of the combined group’s entire net income
Water’s-Edge Group Basis or Affiliated Group Basis Returns is derived from the transportation of freight by air or ground.”
– No CFCs included. Members must include the net GILTI If the combined group meets the qualifications of N.J.S.A.
(i.e., the GILTI reduced by the I.R.C. § 250(a) GILTI deduction) 54:10A-4.7.b, attach a rider and enter the applicable amounts
and net FDII income (i.e., the receipts attributable to the FDII on line 9 of Schedule J.
reduced by the I.R.C. § 250(a) FDII deduction) amounts in
the numerator (if applicable) and the group denominator of the
allocation factor on Schedule J pursuant to N.J.S.A. 54:10A- Allocation Methods for Combined Returns
4.7. The GILTI income and FDII income and the corresponding The two methods available to allocate the income of a combined
I.R.C. § 250(a) deductions must be reported on Schedule A. group are “Joyce” and “Finnigan.” These allocation methods
Do not include the underly ing receipts of the controlled foreign derive their names from California Franchise Tax Board cases.
corporation generating the GILTI in the numerator or group These methods are differentiated by their determination of the
denominator since the controlled foreign corporations were not allocation factor. Under either method, the allocation factor attri-
included as members of the combined return. butes included in the denominator are the same. The denomina-
tor includes all of the combined group’s total factors, regardless
Water’s-Edge Group Basis or World-Wide Group Basis of nexus.
Returns – With CFCs included as members. Members must
include the CFC’s receipts (net of the I.R.C. § 250(a) deduction The Joyce method includes all of the New Jersey alloca-
for GILTI) in the numerator (if applicable) and the group de- tion factor attributes in the numerator that were derived from
nominator pursuant to N.J.S.A. 54:10A-4.7. The GILTI income members that have nexus with New Jersey. The Finnigan
is excluded from the combined group’s entire net income, as method includes all New Jersey allocation factor attributes in
described in TB-88, Combined Groups: Exclusion of Double In- the numerator that were derived from all of the members of the
clusion of GILTI and Treatment of Related Party Addbacks, and combined group, regardless of whether a member has nexus
the GILTI must be excluded in the allocation factor. This is to with New Jersey.
prevent the double taxation and double counting of the income
and receipts derived from the same source since the CFC’s The allocation method is tied to the combined return filing
income is already included in the combined group’s entire net method that the managerial member uses to file the com-
income. The combined group must include the net FDII income bined return. The Water’s-Edge Group Basis and World-Wide
(i.e., the receipts attributable to the FDII reduced by the I.R.C. § Group Basis returns follow Joyce method pursuant to N.J.S.A.
250(a) FDII deduction) amount in the numerator (if applicable) 54:10A-4.7.
and the group denominator of the allocation factor on Sched-
ule J, pursuant to N.J.S.A. 54:10A-4.7. The GILTI income, CFC Note: A member of a combined group can have nexus with
income, and FDII income and the corresponding I.R.C. § 250(a) New Jersey by deriving receipts from New Jersey or
deductions must be reported on Schedule A as part of the com- from any other factors pursuant to N.J.A.C. 18:7-1.6
bined group’s entire net income. through N.J.A.C. 18:7-1.11. The member can have
nexus as part of the unitary business of the combined
See TB-92(R), Sourcing IRC § 951A (GILTI) and IRC § 250 group or it may have nexus independently.
(FDII), for more information.
Affiliated Group Basis returns follow Finnigan method as statu-
Airlines torily prescribed by N.J.S.A. 54:10A-4.11.c.
Airlines have special sourcing rules pursuant to N.J.S.A.
54:10A-6.3, which states: “Notwithstanding the provisions of Note: Pursuant to N.J.S.A. 54:10A-4.6, when an item of in-
section 6 of P.L.1945, c.162 (C.54:10A-6), the sales fraction come is restored to a member, such restoration must be
for the transportation revenues of a taxpayer that is an airline reflected in both the member’s numerator (if applicable)
shall be determined as the ratio of revenue miles in this State and the group denominator.
divided by total revenue miles; provided however, that if a tax-
payer that is an airline is engaged in the transportation of pas-
sengers, the transportation of freight, or the rental of aircraft, Schedule L
the ratio under this section shall be determined by means of Allocation of New Jersey Corporation Business
an average of a passenger revenue mile fraction, freight rev- Tax for Banking and Financial Corporation
enue mile fraction, and rental revenue mile fraction weighted
to reflect the taxpayer’s relative gross receipts from passenger Members Among New Jersey Municipalities
Office Location in New Jersey – List all offices maintained by
transportation, freight transportation, and rentals.” See also
the member in this State by indicating the exact taxing district
N.J.S.A. 54:10A-6.3; N.J.A.C. 18:7-8.1; N.J.A.C. 18:7-8.10;
(municipality) and county.
and N.J.A.C. 18:7-8.10A.
Note: The mailing address of an office is not necessarily the
Transportation Companies taxing district.
Transportation companies have special sourcing rules for
combined groups pursuant to N.J.S.A. 54:10A-4.7.b, which Deposit Balances or Receipts – Banking corporations must
states: “All business income of a combined group engaged in use the deposit balances. Financial corporations use the re-
the transportation of freight by air or ground shall be appor- ceipts allocable to such location.
tioned to this State by multiplying the income by a fraction, the
numerator of which is the ton miles traveled by the combined Percentages – The percentage indicated is based on the indi-
vidual deposit balances for banking corporations or receipts for
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financial corporations divided by total deposit balances in New Jersey is $150. The fee for each nonresident professional
Jersey, or total receipts in New Jersey, respectively. without physical nexus with New Jersey is $150 multiplied by
the allocation factor of the corporation. The fee is limited to
Member’s totals are the sum of the individual taxing district $250,000 per year.
amounts and percentages. Total percentage reported must
equal 100%. Also, each individual computation should be car- In the event of a period shorter than a year, the fee and limit
ried to six decimal places. may be prorated by months. A fraction of a month is deemed to
be a month.

Check the box on the Members and Affiliates Schedule to indi-
Schedule P-1
cate this is a professional corporation for applicable members.
Partnership Investment Analysis
Part I – Partnership Information Installment Payment: A 50% prepayment towards the
Line 4 –
Itemize the investment in each partnership, limited liability com-
subsequent year’s fee is required with the current year’s return.
pany, and any other entity that is treated for federal tax pur-
poses as a partnership. List the name, the federal identification Line 8 – Credit: Amount to be credited towards next year’s fee.
number, and the date and state where organized for each part- This fee is not eligible for refund.
nership. Also, check the type of ownership (general or limited),
the tax accounting method used to reflect your share of part-
nership activity on this return (flow through method or separate
accounting), and whether or not the partnership has nexus in Schedule R
New Jersey. Itemize in column 7 the amount of tax payments Dividend Exclusion
made on behalf of the member by partnership entities. Carry Intercompany dividends (and deemed dividends)
the total amount of taxes paid on behalf of members to page 1, between members of the combined group that
line 10. Include a copy of Schedule NJK-1 from Form NJ-1065. were eliminated/excluded above Schedule A,
Any single-member limited liability company must be included Part II, line 20 are not eligible for the dividend ex-
on this schedule. clusion and are not to be included in the computation
on Schedule R. Only dividends and deemed dividends that
Part II – Separate Accounting of Nonunitary Partnership are a part of the unitary business of the combined group that
Income were received from subsidiaries that were not included as
Members that use a Separate Tax Accounting Method on members of the same New Jersey combined return are eligi-
nonunitary partnership investments must complete Part II to ble for the exclusion. Water’s-edge and world-wide basis fil-
compute the appropriate amount of tax. Pursuant to N.J.S.A. ers, see Schedule X for more information.
54:10A-6, members must enter a single sales factor allocation
in column 3. Do not use three-factor allocation (property, pay- For privilege periods ending on and after July 31, 2020, for pur-
roll, and sales) from the partnership return (Form NJ-1065). poses of the dividend exclusion, the members of a combined
group filing a New Jersey combined return are treated as one
taxpayer with regard to dividends and deemed dividends that
Schedule PC were received as part of the unitary business of the combined
Per Capita Licensed Professional Fee group. See N.J.S.A. 54:10A-4(k)(5)(E).
Professional corporations (PC) formed under N.J.S.A.
14A:17-1 et seq. or any similar laws of a possession or territory For privilege periods ending on and after July 31, 2019, the
of the U.S., a state, or political subdivision thereof, are liable dividend exclusion is a post allocation exclusion.
for a fee on licensed professionals.
Dividends from all sources must be included in Schedule A.
Examples of licensed professionals are: certified public ac- However, taxpayers may exclude from entire net income 95%
countants, architects, optometrists, professional engineers, of dividends from qualified subsidiaries, if such dividends were
land surveyors, land planners, chiropractors, physical thera- included in the taxpayer’s gross income on Schedule A and not
pists, registered professional nurses, dentist, osteopaths, phy- eliminated.
sicians and surgeons, doctors of medicine, doctors of dentistry,
podiatrists, veterinarians and, subject to the Rules of the Su- Taxpayers cannot include the following as part of the dividend
preme Court, attorneys at law (N.J.S.A. 14A:17-3). exclusion:
• Money market fund or REIT income;
Note: Licenses acquired through vocational training and/or
apprenticeships within those trades are not considered • GILTI or FDII (this is not considered income from dividends
licensed professionals. Examples include plumbers, or deemed dividends for New Jersey Corporation Business
electricians, HVAC technicians, cosmetologists, fire and Tax purposes); or
burglar alarm services, acupuncturists, hair stylists, ele- • The portion of I.R.C. § 78 gross-up deducted on line 15,
vator, escalator, and moving walkway mechanics, lock- Part II, Schedule A.
smiths, and court reporters.
A qualified subsidiary is defined as ownership by the tax-
The fee is assessed provided there are more than two pro- payer of at least 80% of the total combined voting power of
fessionals in the PC. The fee is assessed on professionals all classes of stock entitled to vote and at least 80% of the
that are owners, shareholders, and/or employees of the pro- total number of shares of all other classes of stock, except
fessional corporation. The number of professionals should be non-voting stock which is limited and preferred as to dividends.
calculated using a quarterly average. The fee for each resident With respect to other dividends, the exclusion is limited to 50%
and nonresident professional with physical nexus with New of such dividends included in the taxpayer’s gross income on
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Schedule A, provided the taxpayer owns at least 50% of vot- Line 9 – Enter the amount from Depreciation Worksheet I,
ing stock and 50% of the total number of shares of all other line 10, column F.
classes of stock.
Line 11 – IRC § 179 depreciation in excess of New Jersey
A 95% dividend exclusion will be granted for dividends that are allowable deduction. If line 1 is more than $25,000, enter
included in entire net income from an 80% or greater owned $25,000. Otherwise, leave blank.
subsidiary. If the taxpayer owns 50%, but less than 80% of a
subsidiary, they are entitled to a 50% exclusion. Any subsid- Line 12 – Enter the amount from Worksheet II, line 16, col-
iary that is owned less than 50% is not entitled to a dividend umn F. If the amount is positive, add it to the total reported on
exclusion. See N.J.S.A. 54:10A-4(k)(5), N.J.S.A. 54:10A-4(u), line 15. If it is negative, subtract it from the total.
N.J.S.A. 54:10A-4(v), and N.J.S.A. 54:10A-4(w) for more
information. Line 13 – Enter any adjustment to depreciation that is an addi-
tion. This can include, but is not limited to, partnership activity.
If the taxpayer received tiered dividends from a tiered subsid-
iary that filed and paid tax to New Jersey on those same divi- Line 14 – Enter any adjustment to depreciation that is a deduc-
dends, do not include these dividends on Schedule R. tion. This can include, but is not limited to, partnership activity.

The tiered dividend exclusion has been phased out and re- Worksheet I
placed with the Tiered Subsidiary Dividend Pyramid Tax Credit Column A – Sort the property you acquired and placed in ser-
on Form 332. The tiered dividends from certain subsidiaries vice during Tax Year 2022 according to its classification (3-year
may be eligible for a tax credit, which is calculated separately property, 5-year property, etc.) as shown in column A.
on Form 332. See Form 332 for more information. This form is
available on the Division’s website. Column B – Use the federal basis adding back the special de-
preciation reduction.
New Jersey follows the federal ownership attribu-
tion rule changes under I.R.C. § 958(b) and I.R.C. Column C – Enter the bonus depreciation claimed (50% or
§ 318 that broadened the federal attribution rules 30%). If both categories of bonus depreciation are claimed,
that were retroactive to January 1, 2017, in addi- provide a rider detailing the assets that used 50% and the as-
tion to the already broad Corporation Business Tax attribution sets that used 30%.
rules.
Column D – Enter the convention that was used for federal
Schedule PT – Previously Taxed Dividends: If a taxpayer purposes. The applicable conventions are Half-Year Conven-
had subsidiary dividend income that was reported in a previ- tion, Mid-Quarter Convention, or the Mid-Month Convention.
ous privilege period for New Jersey Corporation Business Tax
purposes and for which the taxpayer paid greater than the Column E – Enter the method that was selected for federal
New Jersey minimum tax in that privilege period and those purposes. The applicable methods are 200% declining bal-
same dividends are included in entire net income this privilege ance, 150% declining balance, or straight-line.
period, complete Schedule PT in conjunction with Schedule R.
See Schedule PT for more information. The schedule is avail- Column F – Enter the amount of federal depreciation claimed
able on the Division’s website. on federal Form 4562.

Column G – To determine the New Jersey depreciation, multi-
ply column B by the applicable rate from the appropriate table
Schedule S (See IRS Pub. 946 for complete tables). Enter the total on
Depreciation and Safe Harbor Leasing Schedule S, Part I, line 9.
This schedule must be completed for each member and a
copy of a completed federal Depreciation Schedule, Form Worksheet II
4562 must be included with the return. Schedule S provides
Column D – Enter the federal depreciation claimed up to the
for adjustments to depreciation and certain safe harbor leasing
date the property was sold.
transactions.
Column E – Enter the New Jersey depreciation claimed up to
New Jersey has decoupled from I.R.C. § 168(k) the date the property was sold.
bonus depreciation and I.R.C. § 179 expensing
provisions. See N.J.S.A. 54:10A-4(k)(12) and Column F – Enter the difference between column D and col-
N.J.S.A. 54:10A-4(k)(13). Adjustments must be umn E. If the amount is positive, there is an excess of depre-
made accordingly. ciation that must be added to the federal amount claimed on
Part I, line 7. If the amount is negative, there is a deficiency
Line 1 through Line 6 – These lines detail the depreciation that must be deducted from Part I, line 7.
deduction reflected in the Computation of Entire Net Income
(Schedule A, Part I) into several categories. In most circum-
stances, the information can be found on federal Form 4562. Form 500U
Line 7 – Enter the amount reported on the federal Form 4562. Prior Net Operating Loss Conversion Carryover
(PNOL) and Post Allocation Net Operating Loss
Line 8 – Enter the amount of current depreciation on property (NOL) Deductions
placed in service in prior years. Prior Net Operating Losses (PNOLs) are losses that were
generated in privilege periods ending prior to July 31, 2019.
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To use these losses, the unused, unexpired amounts must be Section A – Computation of Prior Net Operating Losses
converted to a post allocation basis. This conversion is done (PNOL) Deduction
on Form 500U-P. PNOLs can only be carried forward for the This section is only applicable if a member has loss carryovers
20 privilege periods following the period of the initial loss. See from periods ending prior to July 31, 2019. Only complete this
TB-95, Net Operating Losses and Combined Groups, for more section if the total combined group allocated entire net income/
information. (loss) before net operating loss deductions and dividend exclu-
sion on Schedule A, Part II, line 22 is positive (i.e., income).

PNOLs must be deducted from allocated entire PNOLs expire 20 privilege periods after the loss was
Note:
net income before any NOLs can be deducted. originally generated. PNOLs cannot be shared.

If any members had a PNOL, check the box marked “Yes” for
those members that are NOT using a PNOL and begin Form
Post Allocation Net Operating Losses (NOLs) are losses that 500 at Section A, line 1 for every member that IS USING a
were generated in privilege periods ending on or after July 31, PNOL.
2019. These losses occur on a post allocation basis.
If no members are claiming a PNOL Check the “No” box in the
For New Jersey Corporation Business Tax purposes, net oper- group combined column. Enter zero on Section C, line 1 and
ating losses and net operating loss carryovers have a 20-year continue with Section B.
carryover period and can only be carried forward. No carry-
backs are allowed. Line 1 – Enter the total amount reported on Form 500U-P,
Part II, line 21 for each member.
For tax years beginning on and after January 1, 2020, the fed-
eral rules and regulations governing consolidated return net Line 2 – Enter the amount of PNOLs reported on line 1 that
operating losses and net operating loss carryovers apply to the was deducted in a previous year.
New Jersey net operating loss carryover provisions to the ex-
tent they are consistent with the provisions of the New Jersey Line 3 – Enter the amount of PNOLs reported on line 1 that
Corporation Business Tax Act. If the New Jersey and federal has expired.
provisions differ, the New Jersey Corporation Business Tax Act
provisions govern. New Jersey generally follows the federal Line 4 – Enter the amount of PNOLs reported on line 1 that
rules governing mergers, acquisitions, reorganizations, spin- was used on the current period Schedule X. An affiliated group
offs, split-offs, dissolution, bankruptcy, or any form of cessation election is an election to deem all of the activities as one single
of a business. New Jersey also follows any other provision of business. As such, line 4 is not applicable to affiliated group
the federal rules that limits or reduces federal net operating basis returns.
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). Line 5 – Enter the amount excluded from federal taxable in-
come under subparagraph (A), (B), or (C) of paragraph (1) of
Discharge of Indebtedness subsection (a) of Internal Revenue Code (26 U.S.C. s.108) in
If a member has a discharge of indebtedness amount that is the current year. If the amount is greater than the PNOLs re-
excluded from federal taxable income under subparagraph (A), ported on line 1 (less lines 2, 3, and 4), carry the remainder to
(B), or (C) of paragraph (1) of subsection (a) of I.R.C. section Section B, line 5.
108, adjustments need to be made to the member’s PNOLs,
NOLs, and/or post allocation net operating loss carryovers. Line 6 – Subtract the amounts reported on lines 2 through 5
Since the discharge of indebtedness amount is not an allo- from the amount on line 1. This is the total amount of PNOLs
cated amount, the member must multiply the discharge of in- available for deduction in the current year. If the amount is zero
debtedness amount by its current year allocation factor (mem- or less, enter zero.
ber’s numerator over the group’s denominator) before making
any adjustment to the net operating losses or net operating Line 7a – Enter the amount from Schedule A, Part II, line 20,
loss carryovers. column (a).If the amount is less than zero, enter zero.

The members must first reduce their PNOLs by the allocated Line 7b – Multiply line 7a by the member’s allocation factor
discharge of indebtedness amount. If the allocated discharge from Schedule J, line 9.
of indebtedness amount exceeds all of a member’s PNOLs
and the member has post allocation net operating loss carry- Line 8a – Enter the lesser of lines 6 or 7b. This is the current
overs, the member must also reduce the post allocation net period PNOL deduction. Also enter this amount on line 8 of
operating loss carryovers by the remaining balance. If, after Section B.
reducing their post allocation net operating loss carryovers
by the discharge of indebtedness amount, there are still post Line 8b – Total the member columns and enter the result in the
allocation net operating loss carryovers available, the taxable combined group column. Also enter this amount on line 1 of
member may then reduce their allocated entire net income by Section C.
the remaining post allocation net operating loss carryover.
Section B – Post Allocation Net Operating Losses (NOL)
Members must keep accurate books and records to keep track This section is only applicable to loss carryovers from periods
of the various PNOLs and NOLs. 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 and dividend exclusion on
Schedule A, Part II, line 22 is positive (i.e., income).

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Section B is used to calculate the amount of the New Jersey Line 8 – Enter the amount from Section A, line 8a.
post allocation net operating loss carryover. There are two
types of post allocation net operating loss carryovers: Line 9 – Subtract line 8 from line 7b and enter the result.

• Combined group post allocation NOLs (these are losses Line 10 – Enter the lesser of lines 6 or 9.
that were generated by the current combined group) and
• Separate return post allocation NOLs (these are losses that Line 11 – Subtract line 10 from line 6. This is the amount of
were generated outside the current combined group) NOLs available to share with other taxable members.

The post allocation net operating loss deduction is subtracted Line 12 – Enter the amount of NOLs shared with other tax-
from allocated entire net income after the member uses all of able members in the current year. This amount cannot exceed
its PNOLs. the amount on line 11. Taxable members can only share the
combined group post allocation net operating losses with other
Certain taxable members may be eligible to share their post taxable members that were part of the same combined group
allocation net operating losses. If a loss was generated on a in the period in which the loss was generated. Provide a rider
previously filed combined return, the taxable members that that breaks out the amount of shared NOL by each taxable
were included on that return are each allotted a portion of the member.
loss. Taxable members can use their portion of these combined
group post allocation net operating loss (NOL) carryovers, or Line 13 – Enter the amount of NOLs received from other tax-
they can share their portion with other taxable members that able members in the current year. This amount cannot exceed
were part of the same combined group in the period in which the amount on line 9 less line 10. Taxable members can only
the loss was generated. See TB-95, Net Operating Losses and receive the combined group post allocation net operating
Combined Groups, for more information. losses from other taxable members that were part of the same
combined group in the period in which the loss was generated.
Note: Separate return post allocation net operating loss car- Provide a rider that breaks out the amount of received NOL by
ryovers and NOLs generated on Schedule X are not each taxable member.
shareable.
Line 14 – Add line 10 and line 13 and enter the total. The
Line 1 – Enter the total amount reported on Form 500U-PA, amount cannot exceed the amount on line 9. This is the current
Part II, line 21 for each member. period NOL deduction. Enter the total of the members’ amounts
in the combined group column and on line 2 of Section C.
Line 2 – Enter the amount of NOLs reported on line 1 that was
deducted in a previous period or was shared with another tax- Note: A taxable member that leaves a New Jersey combined
able member in a previous period. group must take their share of the combined group post
allocation net operating loss carryover. The combined
Line 3 – Enter the amount of NOLs reported on line 1 that has group cannot continue to use that member’s portion of
previously expired. the loss.

Line 4 – Enter the amount of the separate return NOLs re- Losses generated on Schedule X cannot be
ported on line 1 that was used on the current period Sched- shared or used by the group. These losses can
ule X. An affiliated group election is an election to deem all only be used on Schedule X.
of the activities as one single business. As such, line 4 is not
applicable to affiliated group basis returns.

Line 5 – Enter the amount of any adjustments required under
provisions of the federal Internal Revenue Code. New Jersey Form 500U-P
generally follows the federal rules governing mergers, acqui- Form 500U-P was designed to help taxpayers transition to the
sitions, reorganizations, spin-offs, split-offs, dissolution, bank- new net operating loss regime. Taxpayers were required to
ruptcy, or any form of cessation of a business. New Jersey also convert these losses using the allocation factor from the last
follows any other provision of the federal rules that limits or privilege period ending before July 31, 2019. A copy of this
reduces federal net operating losses and federal net operating form must be included with the taxpayer’s return each year
loss carryovers. See N.J.S.A. 54:10A-4.5(c) for more informa- until the losses are used up or expired but is not recomputed
tion. If the member reported an amount in Section A, line 5 of each year.
Form 500U, only enter the excess here. (Section A, line 1 mi-
nus lines 2, 3, 4, and 5.)
Form 500U-PA
Line 6 – Subtract the amounts reported on lines 2 through 5 Part I
from the amount on line 1. This is the total amount of NOLs Enter the date on which the member entered the group.
available for deduction in the current year. If the amount is less
than zero, enter zero. Part II – Net Operating Loss
Line (a) – Enter the date the privilege period ended. All periods
Line 7a – Enter the amount from Schedule A, Part II, line 20, must end on or after July 31, 2019.
column (a).If the amount is less than zero, enter zero.
Line (b) – Enter the net operating loss for each period. Enter
Line 7b – Multiply line 7a by the member’s allocation factor the entire loss for the period. Do not net with previously de-
from Schedule J, line 9. ducted or expired amounts. Amounts that have been previously
deducted or that are expired must be reported on Form 500U,

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Section B on lines 2 and 3. The converted losses can only be            • Form 328: Tax Credit for Employers of Employees With 
carried forward for the 20 privilege periods following the period         Impairments
of the initial loss.                                                    • Form 329: Pass-Through Business Alternative Income Tax 
                                                                          
Note:  For privilege periods ending after June 30, 2014, the              Credit
  loss reported each year must not include any amount                   • Form 330: Apprenticeship Program Tax Credit
  excluded from federal taxable income under subpara-
  graph (A), (B), or (C) of paragraph (1) of subsection (a)             • Form 331: Tax Credit for Employer of Organ/Bone Marrow 
  of Internal Revenue Code (26 U.S.C. s.108).                             Donor
                                                                        • Form 332: Tiered Subsidiary Dividend Pyramid Tax Credit
Line 21 – Enter the total post allocation net operating loss 
carryover. Add lines 1b through 20b. This is the amount that is         • Form 333: Tax Credit for Investing in a Qualified Facility 
carried to Form 500U, Section B, line 1.                                  and Hiring Employees to Manufacture Personal Protective 
                                                                          Equipment
                                                                        • Form 334: Innovation Evergreen Fund Tax Credit
Additional Forms and Instructions
Most of the forms and schedules needed to complete the re-              • Form 335: Unit Concrete Products Tax Credit
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: 

• Schedule A-7: Gross Income Test for Financial Businesses 
  (Form CBT-100U Filers ONLY)
• Schedule G-2: Claim for Exceptions to Disallowed Interest 
  and Intangible Expenses and Costs 
• Schedule I: Certificate 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 300: Urban Enterprise Zone Employees Tax Credit
• 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: Effluent 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 327: Film and Digital Media Tax Credit

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