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2023 CBT-100
General Instructions for New Jersey Corporation Business Tax Return and Related Forms

Electronic Filing Mandate Distortion of Net Income
All taxpayers and tax preparers must file Corporation Business The Director is authorized to adjust and redetermine items of
Tax returns and make payments electronically. This mandate gross receipts and expenses as may be necessary to make
includes all returns, estimated payments, extensions, and a fair and reasonable determination of tax payable under the
vouchers. Visit the Division’s website or check with your soft- Corporation Business Tax Act. For details regarding the condi-
ware provider to see if they support any or all of these filings. tions under which this authority may be exercised, see regula-
tion N.J.A.C. 18:7-5.10.
Note: For privilege periods ending on and after July 31, 2023,
banking corporations and financial business corpora- Accounting Method
tions that are separate filers will use Form CBT-100 to The return must be completed using the same method of ac-
file their returns (previously these entities may have filed counting, cash, accrual or other basis, that was employed in
Form BFC-1). This also means that these filers are now the taxpayer’s federal income tax return.
subject to the electronic filing requirements for all tax fil-
ings and payments. BFC filers that submitted their pay- Federal/State Tax Agreement
ments through Electronic Funds Transfer (EFT) should The New Jersey Division of Taxation and the Internal Revenue
verify that they are using the correct EFT codes. Service participate in a federal/State program for the mutual
exchange of tax information to verify the accuracy and consis-
To file and pay the annual report electronically, visit the Division tency of information reported on federal and New Jersey tax
of Revenue and Enterprise Services’ website. returns.

Form BFC-1 has been discontinued. Schedule A-7
and Schedule L have also been discontinued. For Corporations Required to File
In general, every corporation existing under the laws of the
privilege periods ending on and after July 31, 2023, State of New Jersey is required to file a Corporation Business
banking corporations and financial business Tax return.
corporations that are separate filers must use Form CBT-
100. In addition, any ancillary forms (e.g., Form BFC-200T) In addition, a return must be filed by every foreign corporation
have also been discontinued. The corresponding Corporation that:
Business Tax form will be used for all prospective filings.
1. Holds a general certificate of authority to do business in
this State issued by the Secretary of State; or
2. Holds a certificate, license, or other authorization issued
Before You Begin by any other department or agency of this State authoriz-
Read all instructions carefully before completing returns. ing the company to engage in corporate activity within this
State; or
Include a complete copy of the federal Form 1120 (or any
other federal corporate return filed) and all related forms 3. Does business in this State; or
and schedules. See Technical Bulletin, TB-98(R), Federal 4. Employs or owns capital within this State; or
Return and the Forms and Schedules to Include with the Cor- 5. Employs or owns property in this State; or
poration Business Tax Return. Corporations that are part of a
federal consolidated group must include a federal income tax 6. Maintains an office in this State; or
return and the consolidating schedules showing the income 7. Derives receipts within this State that meet the thresholds
statement, balance sheets, and all other supporting information for bright-line economic nexus; or
for the taxpayer. 8. Engages in contacts within this State; or
Form 1120-F filers attach the 1120-F to the return. If no 1120-F 9. Maintains a stock of goods in New Jersey and makes de-
was completed but the income was reported on Form 5471, liveries to customers from such stock.
attach the 5471. If a non-U.S. corporation did not file federal
A foreign corporation that is a partner of a New Jersey part-
Form 1120-F and the income was not reported on federal Form
nership is deemed subject to tax in the State and must file a
5471, it must complete an 1120-F reporting its income and tax
return.
attributes as though the entity filed a federal return.
Nexus. For privilege periods ending on and after
Personal Liability of Officers and Directors July 31, 2023, corporations deriving receipts from
Any officer or director of any corporation who shall distribute or sources in New Jersey will be deemed to have
cause to be distributed any assets in dissolution or liquidation bright-line economic nexus if during the corporation’s tax year:
to the stockholders without having first paid all corporation
franchise taxes, fees, penalties and interest imposed on said • The receipts derived from New Jersey sources are more
corporation, in accordance with N.J.S.A. 14A:6-12, N.J.S.A. than $100,000, or
54:50-18 and other applicable provisions of law, shall be per-
sonally liable for said unpaid taxes, fees, penalties, and inter- • 200 or more separate transactions are delivered to custom-
est. Compliance with N.J.S.A. 54:50-13 is also required in the ers in New Jersey.
case of certain mergers, consolidations, and dissolutions. Corporations that do not meet either threshold above, and
do not create nexus in another way, do not have nexus even

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if they have New Jersey receipts. For more information, see under I.R.C. § 1362. A copy of Form 1120-S as filed must ac -
TB-108, Nexus for Corporation Business Tax for Privilege Peri- company the return that is submitted to New Jersey.
ods Ending on and after July 31, 2023.
Note: Check the box on page 1 to indicate the corporation is a
The attributes and activities of a QSSS, disregarded entity, or hybrid corporation.
unitary partnership are included as part of its parent corpora-
tion’s attributes and activities when determining whether the Domestic International Sales Corporations (DISC). A DISC
corporation has nexus. must complete this return as though no election had been
made under Sections 992-999 of the Internal Revenue Code. A
Corporations Claiming P.L. 86-272. Foreign corporations DISC must complete all applicable schedules on the return.
that meet the filing requirements and whose income is immune
from tax pursuant to Public Law 86-272, must obtain and com- Combinable Captive Insurance Companies. Combinable
plete Schedule N, Nexus – Immune Activity Declaration, and all captive insurance companies are not exempt from the Corpo-
of the schedules from the CBT-100. In addition, taxpayers must ration Business Tax. If the combinable captive insurance com-
include a copy of the Nexus Questionnaire. P.L. 86-272 filers pany is not included as a member of a combined group filing
are not subject to the surtax imposed by N.J.S.A. 54:10A-5.41, a New Jersey Corporation Business Tax Unitary Return, Form
and will enter zero on page 1, line 5. These corporations must CBT-100U, they must file a separate New Jersey Corporation
remit the minimum tax with the CBT-100. Business Tax Return, Form CBT-100.
Note: Check the box on page 1 to indicate the corporation is Note: A regular captive insurance company that does not meet
claiming P.L. 86-272. the definition of a combinable captive insurance com-
pany in N.J.S.A. 54:10A-4(y) is exempt from the Corpo-
For more information, see TB-109, Combined Group Filing ration Business Tax.
Methods for Privilege Periods Ending On and After July 31,
2023. For more information, see TB-86(R), Included and Excluded
Business Entities in a Combined Group and the Minimum Tax
Out-of-Business Corporations. Corporations that are “out of of a Taxpayer that is a Member of a Combined Group.
business” but have not dissolved or withdrawn their authority to
do business in New Jersey, are still obligated to file a return. A Foreign Sales Corporations (FSC). An FSC must com-
dissolution or withdrawal date must be established on or before plete this return as though no election had been made under
the last day of the current taxable period to avoid having to file Sections 922-927 of the Internal Revenue Code. FSCs must
a return for the next tax period. complete all applicable schedules on the return. Under Section
5, P.L. 106-519, no corporation may elect to be an FSC after
New Corporations. Every New Jersey corporation acquires a September 30, 2000.
taxable status beginning 1) on the date of its incorporation, or
2) on the first day of the month following its incorporation if so Financial Business Corporations. Corporations
stated in its certificate of incorporation. Every corporation that that qualify as financial businesses, those that derive
incorporates, qualifies, or otherwise acquires a taxable status 75% of their gross income from the financial activi-
in New Jersey must file a Corporation Business Tax return. A ties enumerated at N.J.A.C. 18:7-1.16(a)1 through (a)7, must
tax return must be filed for each fiscal period, or part thereof, file the New Jersey Corporation Business Tax Return, Form
beginning on the date the corporation acquired a taxable status CBT-100 or the Corporation Business Tax Unitary Return,
in New Jersey regardless of whether it had any assets or con- Form CBT-100U. All financial business corporations must
ducted any business activities. No return may cover a period check the box on page 1 to indicate that they are filing as a fi-
exceeding 12 months, even by a day. nancial corporation.
S Corporations. For privilege periods beginning on or after Banking Corporations. Banking corporations as
December 22, 2022, a corporation that has elected and quali- defined in N.J.S.A. 54:10A-36, must file the New Jer-
fies to be an S corporation pursuant to Section 1361 of the In- sey Corporation Business Tax Return, Form
ternal Revenue Code is required to file Form CBT-100S unless CBT-100 or the Corporation Business Tax Unitary Return,
the shareholders elect to be treated as a C corporation for New Form CBT-100U. All banking corporations must check the box
Jersey purposes. See Hybrid Corporations. on page 1 to indicate that they are filing as a banking
corporation.
Note: Corporations filing as New Jersey S corporations
must use Form CBT-100S. Form CBT-100 (or Form Professional Corporations. Corporations formed under
CBT-100U if they are part of a combined group) cannot N.J.S.A. 14A:17-1 et seq. or any similar laws of a possession
be used to file an S corporation return. or territory of the U.S., a state, or political subdivision thereof,
must complete Schedule PC. Examples of licensed profes-
Hybrid Corporations. A federal S corporation or Qualified sionals include certified public accountants, architects, optom-
Subchapter S Subsidiary that elects to file as a C corporation etrists, professional engineers, land surveyors, land planners,
for New Jersey purposes is a hybrid corporation. For informa- chiropractors, physical therapists, registered professional
tion on filing requirements, see TB-105, Corporation Business nurses, dentists, osteopaths, physicians and surgeons, doctors
Tax and Gross Income Tax Guidance regarding S Corporations of medicine, doctors of dentistry, podiatrists, veterinarians, and
and Qualified Subchapter S Subsidiaries. attorneys.
Federal S corporations that have elected to be New Jersey C Investment Company/Captive Investment Company. Tax-
corporations must complete Form CBT-100 or Form CBT100U, payers that meet statutorily enumerated definitions of a “cap-
whichever is applicable, as though no election had been made tive” must be included as members of the combined group.
A business that is not included on a New Jersey Corporation

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Business Tax Unitary Return, Form CBT-100U must meet                      combined group member with business operations that are 
the statutory definition of an investment company (N.J.S.A.               independent of the unitary business activity of the combined 
54:10A-4(f)) to qualify for the preferential tax treatment pre-           group must report such income on Schedule X. Schedule X is 
scribed by N.J.S.A 54:10A-5(d). Investment companies of                   submitted with the combined return. The member will not com-
which at least 50 percent of the shares, by vote or value, are            plete a separate return.
owned or controlled, directly or indirectly, by a state or federally 
chartered bank, savings bank, or savings and loan association             Visit the Division’s website for information about combined 
with assets that do not exceed $15 billion or that otherwise do           reporting.
not meet the definition of a “captive” investment companies file 
Form CBT-100.                                                             Note:  A taxpayer that has nexus with New Jersey that is part 
                                                                                of a combined group or affiliated group, but excluded 
Regulated Investment Company/Captive Regulated Invest-                          from the New Jersey combined return must file a sepa-
ment Company. Taxpayers that meet statutorily enumerated                        rate return. 
definitions of a “captive” must be included as members of the 
combined group. A Regulated Investment Company that is not                Former Member of Combined Group. A taxpayer that was 
included on a New Jersey Corporation Business Tax Unitary                 a member of a combined group filing a New Jersey combined 
Return, Form CBT-100U, is subject to the minimum tax and                  return for part of the group privilege period and subsequently 
only completes page 1, the Annual General Questionnaire,                  departs the combined group to file on a separate entity basis  
Schedule A, and Schedule J of a separate New Jersey Cor-                  must report the income for months subsequent to departing the 
poration Business Tax Return, Form CBT-100, if they meet                  combined group on a separate return (Form CBT-100) unless 
the qualifications detailed in Part II of the Annual General              the taxpayer joined a second combined group that files a New 
Questionnaire. The election is effective only for the particular          Jersey combined return. The taxpayer filing a separate return 
year covered by the return. Regulated investment companies                would not report the income on Form CBT-100 for the months 
of which at least 50 percent of the shares, by vote or value,             during which the member was part of the combined group. If 
are owned or  controlled, directly or indirectly, by a state or           determining what amount of income is attributable to the por-
federally chartered bank, savings bank, or savings and loan               tions of the twelve-month period are for the periods before and 
association with assets that do not exceed $15 billion or that            after departing a combined group, the taxpayer must prorate 
otherwise do not meet the definition of a “captive” regulated             their income/losses and receipts. 
investment companies file Form CBT-100. 

Real Estate Investment Trust/Captive Real Estate Invest-                  When to File
ment Trust. Real estate investment trusts that meet the statu-            2023 Accounting Periods and Due Dates
torily enumerated definitions of a “captive” must be included as          The 2023 Corporation Business Tax return should only be 
members of the combined group. A real estate investment trust             used for accounting periods ending on and after July 31, 2023, 
that is not included on a New Jersey Corporation Business Tax             through June 30, 2024. 
Unitary Return, Form CBT-100U, files a separate New Jersey 
Corporation Business Tax Return, Form CBT-100. The election               New Jersey Corporation Business Tax returns and payments, 
is effective only for the particular year covered by the return.          except estimated payments, are due the 15th day of the month 
Real estate investment companies of which at least 50 per-                following the month the federal corporate income tax return is 
cent of the shares, by vote or value, are owned or  controlled,           originally due. If the due date falls on a weekend or a legal hol-
directly or indirectly, by a state or federally chartered bank,           iday, the return and payment are due on the following business 
savings bank, or savings and loan association with assets that            day. Use the following schedule for 2023 CBT-100 forms and 
do not exceed $15 billion or that otherwise do not meet the               payments:
definition of a “captive” Real estate investment companies file 
Form CBT-100.                                                             If accounting   July 31,  Aug. 31,  Sept. 30,  Oct. 31, Nov. 30,  Dec. 31, 
                                                                          period ends on: 2023    2023       2023      2023       2023     2023
Inactive Corporations. Inactive corporations that, during the             Due date for    Dec. 15,  Jan. 15,  Feb. 15,  Mar. 15,  Apr. 15, May 15, 
                                                                          filing is:      2023    2024       2024      2024       2024     2024
period covered by the return, did not conduct any business, did           If accounting   Jan. 31,  Feb. 28,  Mar. 31, Apr. 30,   May 31,  June 30, 
not have any income, receipts or expenses, and did not own                period ends on: 2024    2024       2024      2024       2024     2024
any assets, must complete the Certification of Inactivity section         Due date for    June 15,  July 15, Aug. 15,  Sept. 15,  Oct. 15, Nov. 15, 
on page 1. Payment for the related minimum tax liability and              filing is:      2024    2024       2024      2024       2024     2024
the installment payment (if applicable) must be submitted elec-           Calendar or fiscal accounting year is the same accounting pe-
tronically. See the Page 1 section for more information.                  riod that the taxpayer is required to report to the United States 
                                                                          Treasury Department for federal income tax purposes. The 
Combined Reporting                                                        ending month of the accounting period for federal returns and 
New Jersey enacted mandatory combined reporting for unitary               New Jersey returns must match, however, the tax return year 
businesses for tax years ending on and after July 31, 2019.               for the federal and State returns may differ. (i.e., a tax year 
Groups of companies that have common ownership and are                    ending 8/31/23 may be filed on a 2022 federal Form 1120; the 
engaged in a unitary business, where at least one member of               same tax year must be filed on a 2023 New Jersey CBT-100.) 
the group is subject to the New Jersey Corporation Business               All accounting periods must end on the last day of the month 
Tax, are required to calculate their tax liability on a combined          even if the taxpayer uses the same 52-53 week accounting 
basis on Form CBT-100U, Corporation Business Tax Unitary                  year that is used for federal income tax purposes. See N.J.A.C. 
Return.                                                                   18:7-2.3. The Division is aware that taxpayers cannot properly 
                                                                          input dates for 52-53 week accounting years. In this case, 
A member of a combined group filing a New Jersey combined                 taxpayers must enter the last day of the month. Attach a rider 
return does not have to file a separate return for the privilege          showing the correct accounting period. Returns for prior tax 
period or portion of the privilege period thereof that the tax-           years are available on the Division’s website.
payer was included as a member of the combined return. A 
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Extension of Time to File the current accounting year but on the basis of the facts shown
The Tentative Return and Application for Extension of Time to and the law applicable to the preceding accounting year, the
File, Form CBT-200-T, must be filed and paid electronically. taxpayer may be liable for a penalty of 5% per month or part
You can also check with your software provider to see if the of a month not to exceed 25% of the amount of underpayment
software you use supports filing of extensions. from the original due date to the date of actual payment.
Note: Banking corporations and financial corporations previ- Late Filing Penalty. 5% per month or part of a month on the
ously used Form BFC-200-T, which was discontinued amount of underpayment not to exceed 25% of that underpay-
for privilege periods ending on and after July 31, 2023. ment, except if no return has been filed within 30 days of the
Going forward these entities will use the corresponding date on which the first notice of delinquency in filing the return
Corporation Business Tax form and are subject to elec- was sent, the penalty will accrue at 5% per month or part of a
tronic filing requirements. month of the total tax liability not to exceed 25% of such tax
liability. Also, a penalty of $100 for each month the return is de-
Corporations will automatically receive a six-month extension linquent may be imposed.
only if they have paid at least 90% of the tax liability and timely
filed Form CBT-200-T. Late Payment Penalty. 5% of the balance of tax due paid after
the due date for filing the return may be imposed.
An extension of time is granted only to file your New Jersey
Corporation Business Tax return. There is no extension of time Interest. 3% above the average predominant prime rate for
to pay the tax due. The Division will notify you only if we deny every month or part of a month the tax is unpaid, compounded
your extension request, but not until after you actually file your annually. At the end of each calendar year, any tax, penalties
return. Penalties and interest are imposed whenever tax is paid and interest remaining due will become part of the balance on
after the original due date. which interest will be charged. The interest rates assessed by
the Division of Taxation are published online.
Note: An extension payment must include any applicable pro-
fessional corporation (PC) fees and/or installment pay- Note: The average predominant prime rate is the rate as
ments. See the online application for more information. determined by the Board of Governors of the Federal
Reserve System, quoted by commercial banks to large
businesses on December 1st of the calendar year im-
Payment of Tax mediately preceding the calendar year in which payment
The balance of tax due must be paid in full by the original due was due or as redetermined by the Director in accor-
date of the return. dance with N.J.S.A. 54:48-2.
In addition, corporations are required to make installment pay- Collection Fees. In addition, if the tax bill is sent to our col-
ments of estimated tax. The requirement for making these pay- lection agency, a referral cost recovery fee of 11% of any tax,
ments is based on the amount of the total tax liability shown on penalties, and interest due will be added to the liability in accor-
the most recent return. dance with N.J.S.A. 54:49-12.3. If a certificate of debt is issued
for the outstanding liability, a fee for the cost of collection of the
P.L. 2023, c.96 increased the installment payment tax may also be imposed.
safe harbor in N.J.S.A. 54:10A-15.2 from $500 to
$1,500. See page 1, line 7 instructions for more Underpayment of Estimated Tax. To calculate the amount of
information. interest for the underpayment of estimated tax, complete either
Form CBT-160-A or Form CBT-160-B. If the taxpayer qualifies
How to Pay for any of the exceptions to the imposition of interest for any of
To make payments electronically, go to the Division of Taxa- the installment payments, Part II must be completed and sub-
tion’s website. Taxpayers that do not have access to the inter- mitted with the return as evidence of such exception.
net can call the Division’s Customer Service Center at (609)
292-6400. Note: Banking corporations and financial corporations previ-
ously used Form BFC-160-A or Form BFC-160-B, which
Taxpayers with a prior year liability of $10,000 or more in any were discontinued for privilege periods ending on and
tax are required to make their payments for all taxes by Elec- after July 31, 2023. Going forward these entities will use
tronic Funds Transfer (EFT). For information or to enroll in the the corresponding Corporation Business Tax form and
program, visit the Division of Revenue and Enterprise Services’ are subject to electronic filing requirements.
website, call (609) 292-9292, fax (609) 984-6681, or write to NJ
Division of Revenue and Enterprise Services, EFT Section, PO Civil Fraud. If any part of an assessment is due to civil fraud,
Box 191, Trenton, NJ 08646-0191. there shall be added to the tax an amount equal to 50% of the
assessment in accordance with N.J.S.A. 54:49-9.1.
Note: Taxpayers that are required to remit payments by EFT
can satisfy the EFT requirement by making e-check or Transacting Business Without a Certificate of Authority. In
credit card payments. addition to any other liabilities imposed by law, a foreign corpo-
ration that transacts business in this State without a certificate
of authority shall forfeit to the State a penalty of not less than
$200, nor more than $1,000 for each calendar year, not more
Penalties and Interest than 5 years prior thereto, in which it shall have transacted
Insufficiency Penalty. If the amount paid with the Tentative
business in this State without a certificate of authority. N.J.S.A.
Return, Form CBT-200-T, is less than 90% of the tax liability
14A:13-11(3).
computed on Form CBT-100, or in the case of a taxpayer
whose preceding return covered a full 12-month period, is less
than the amount of the tax computed at the rates applicable to

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Beginning with Tax Year 2023, real estate invest-
Amended Returns ment trusts, investment companies, and regulated
To amend CBT-100 returns, use the CBT-100 form for the ap-
propriate tax year. investment companies that meet statutorily enumer-
ated definitions of a “captive” must be included as members of
Beginning with returns for a Tax Year 2019 and after, taxpayers the combined group. Visit the Division’s website for more infor-
must submit amended CBT returns electronically. mation on combined reporting.
Note: Beginning with returns for a Tax Year 2023, banking All corporations must complete page 1, the Annual General
corporations and financial business corporations that Questionnaire, and Schedules A (Parts I, II, and III), A-2, A-3,
are separate filers must use Form CBT-100. To amend A-4, and J of the return.
a return, the business must use the same form that was
originally filed. This means that for privilege periods Line 1 – Tax Base
ending before July 31, 2023, the business would file Enter amount from line 4 of Schedule A, Part III.
an amended Form BFC-1 for the appropriate tax year.
Line 2a – Amount of Tax
However, for privilege periods ending on or after July 31, Multiply line 1 by the applicable tax rate:
2023, the business would file an amended Form CBT-
100 for the appropriate tax year and such submissions • If line 1 is greater than $100,000, the tax rate is 9% (.09).
are required to be made electronically.
• If line 1 is greater than $50,000 and less than or equal
Final Determination of Net Income by Federal Government. to $100,000, the tax rate is 7.5% (.075). Tax periods of less
Any change or correction made by the Internal Revenue Ser- than 12 months qualify for the 7.5% rate if the prorated tax-
vice to the federal taxable income must be reported to the Divi- able net income does not exceed $8,333 per month.
sion within 90 days. • the tax rate is 6.5% (.065). Tax
If line 1 is $50,000 or less,
periods of less than 12 months qualify for the 6.5% rate if
the prorated taxable net income does not exceed $4,166
Page 1 Line-by-Line Instructions per month.
Enter the federal employer identification number, New Jersey
corporation number, corporation name, and complete address Line 2b – Total Minimum Tax
and ZIP Code in the space provided on the return. Enter the total minimum tax.
Check the appropriate box to indicate whether this is the initial The minimum tax is assessed based on the New Jersey gross
return or an amended return. receipts from Schedule J, line 6 as follows:
If filing an amended return, enter the applicable code in the New Jersey Gross Receipts Minimum Tax
boxes provided. If using code 10, “Other,” enter the reason in Less than $100,000 $500
the lines provided. If more space is needed, include a rider. $100,000 or more but less than $250,000 $750
$250,000 or more but less than $500,000 $1,000
1. Change in allocation factor $500,000 or more but less than $1,000,000 $1,500
2. IRS audit $1,000,000 or more $2,000
3. Amended federal 1120 filed If a taxpayer is filing a separate return and is a member of an
4. To take credit for payments/payments made by a affiliated or controlled group (as per I.R.C. § 1504 or § 1563)
partnership that has a total payroll of $5,000,000 or more for the tax year,
5. Adjustments to ENI the minimum tax is $2,000 regardless of the amount of the tax-
6. To change credit request to refund request or refund payer’s New Jersey gross receipts. Tax years of less than 12
request to credit request months are subject to the higher minimum tax if the prorated
7. Change in filing period total payroll exceeds $416,667 per month. Total payroll refers
8. Change in tax credits reported to the total payroll of the affiliated group rather than total New
9. Adding or subtracting a combined return member Jersey payroll of a single corporation. Taxpayers that are mem-
10. Other bers of an affiliated or controlled group must submit a schedule
Note: Taxpayers cannot file an amended return to change the of payroll per member and a copy of the taxpayer’s federal
entity type from an S corporation to a C corporation, or affiliations schedule, Form 851, with the return.
from a C corporation to an S corporation.
The minimum tax cannot be prorated. In general, zero (0)
Provide the remaining information requested on the top por- returns are not permitted.
tion of the return. The federal business activity code should
be taken from the taxpayer’s federal tax return. Provide the Line 3 – Tax Credits
location of the corporate books as well as a contact person and Enter the amount from Schedule A-3, Part I, line 30. Include
phone number. If the corporation is a professional corporation, the applicable credit form(s) with the return. See Schedule A-3
investment company, regulated investment company, real instructions for more information.
estate investment trust, hybrid corporation, financial business
corporation, banking corporation, or is claiming P.L. 86-272, Line 4 – CBT Tax Liability
check the appropriate box. Subtract line 3 from the greater of line 2a or 2b.

See the Corporations Required to File section for information Line 5a – Surtax
on the types of corporations. Every business entity that is subject to the Corporation Busi-
ness Tax is also subject to the surtax if the business entity has
an allocated taxable net income in excess of $1,000,000.

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Public utilities and New Jersey S corporations (as defined in Line 10a – Payments and Credits
N.J.S.A. 54:10A-4(q) and N.J.S.A. 54:10A-4(p), respectively) Include on this line:
are exempt from the surtax.
• Installment tax payments made for 2023;
Multiply the amount on Schedule A, Part III, line 2a, 2b, or 2c • Amounts paid with tentative return, form CBT-200-T. (Bank-
(whichever is applicable) by the surtax rate. The rate is 2.5% ing corporations and financial corporations previously used
for tax years beginning on or after January 1, 2018, through Form BFC-200T, which was discontinued for privilege peri-
December 31, 2023. ods ending on and after July 31, 2023.);
Line 5b – Pass-Through Business Alternative Income Tax • Any overpayment from the preceding tax return that the
Credit Applied to Surtax taxpayer elected to have credited to the current year’s tax.
Enter the amount from Form 329. Do not enter more than the Do not include any amount of the overpayment that the tax-
amount of surtax on line 5a. Include Form 329 with the return. payer elected to have refunded.
See Form 329 instructions for more information.
Note: Professional corporation installment payments from the
Line 5c – Balance of Surtax prior year may not be used to offset any current year tax
Subtract line 5b from line 5a and enter the result. liability and are not eligible for refund.

Line 6 – Tax Due Line 10b – Payments made by Partnerships
Enter the total of line 4 and line 5c. Include the total payments made by partnerships on behalf of
the taxpayer that are reported in column 7 on Schedule P-1.
Line 7 – Installment Payment Submit copies of the NJK-1s or K-1s (as applicable) reflecting
For tax years ending on and after July 31, 2023, the payments made by each partnership entity.
threshold for making installment payments is $1,500.
Line 10c – Refundable Tax Credits
Taxpayers are required to make installment payments of esti- Enter the amount from Schedule A-3, Part II, line 6. Include
mated tax. The requirement for making these payments is: the applicable credit form(s) with the return. See Schedule A-3
instructions for more information.
• If the 2023 Total Tax Liability is greater than $1,500, the
taxpayer must make installment payments toward 2024. Amount Due or Overpayment – Lines 11–17
These payments are to be made electronically on Form Compare lines 10d and 9.
CBT-150 and are due on or before the 15th day of the 4th,
6th, 9th and 12th months of the tax year. Taxpayers with • If line 10d is less than line 9, you have a balance due. Com-
gross receipts greater than or equal to $50,000,000 must plete lines 11, 12, and 13.
make installment payments on the 15th day of the 4th, 6th, • If line 10d is more than line 9, you have an overpayment.
and 12th months of the tax year. Information on making Complete line 12 (if applicable) and lines 14 through 17.
these payments can be found on the Division’s website.
Line 11 – Balance of Tax Due
• If the 2023 Total Tax Liability is $1,500 or less, install- Subtract line 10d from line 9 and enter the difference.
ment payments may be made as indicated above OR in lieu
of making installment payments, the taxpayer may make a Line 12 – Penalty and Interest Due
payment of 50% of the 2023 total tax liability. For taxpayers Include any penalties and interest. See the Penalties and Inter-
that qualify and want to take advantage of this option, enter est section for information.
on line 7, 50% of the amount on line 6. This will become
part of the payment to be made with the 2023 return and Note: If the taxpayer has an overpayment or no tax liability
installment payments will not be required. This payment and has calculated penalties and interest due, such
should be claimed as a credit when filing the 2024 return. amounts must be added to the balance due line or sub-
tracted from the overpayment.
Note: Banking corporations and financial corporations pre-
viously used Form BFC-150, which was discontinued Line 13 – Total Balance Due
for privilege periods ending on and after July 31, 2023. Enter the total of line 11 and line 12.
Going forward these entities will use the corresponding
Corporation Business Tax form and are subject to elec- Line 14 – Amount Overpaid
tronic filing requirements. See Notice: BFC-1 Returns Subtract the sum of line 9 and line 12 (if applicable) from the
Being Replaced with Form CBT-100. amount on line 10d.

Line 8 – Professional Corporation Fees Line 15 – Refund
Enter amount from Schedule PC, Part II, line 7. Enter the amount of your overpayment that you want refunded.

Note: Check the box on page 1 to indicate the corporation is a Line 16 – Credit to 2024
professional corporation. Enter the amount of your overpayment that you want to credit
to your 2024 tax liability.
See Schedule PC instructions for information about filing re-
quirements and examples of professional corporations. Line 17 – Credit to a Combined Group
Enter the amount of your overpayment that you want to credit
Line 9 – Total Tax and Professional Corporation Fees to a combined group. Also include the unitary ID number and
Enter the total of lines 6, 7, and 8. tax return year to which it is to be applied.

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Note:  An overpayment of tax by a corporation can only be               I.R.C. § 250 deductions for GILTI and FDII are no longer 
      credited to a combined group of which the corporation is          allowed.
      a member.
                                                                        Line 5 – Interest
Certification of Inactivity                                             Include a copy of federal Form 8916A if it was completed. 
Inactive corporations must complete page 1, the Annual Gen-
eral Questionnaire, and Schedules A (Parts I, II, and III), A-2,        Lines 8, 9, and 10
A-3, and A-4 of the CBT-100. A corporate officer must sign and          Include a rider or schedules showing the same information 
certify that the corporation did not conduct any business, did          shown on federal Form 1120, Schedule D and/or Form 4797. 
not have any income, receipts, or expenses, and did not own             Gains and losses resulting from the disposition of property 
any assets during the entire period covered by the tax return.          where an I.R.C. § 179 expense deduction was passed through 
                                                                        to S corporation shareholders are not reported on federal Form 
                                                                        4797, and should be reported on Schedule A, Part I, line 10. 
Signature                                                               If a sale of shares of stock or partnership interest resulted in a 
Each return must be signed by an officer of the corporation 
who is authorized to attest to the truth of the statements con-         taxable transfer of a controlling interest in certain commercial 
tained therein and to acknowledge that they understand they             real property under N.J.S.A. 54:15C-1, indicate on a rider.

are required to include copies of their federal return(s), forms,       Line 18 – Interest
and schedules. The fact that an individual’s name is signed on          Include a copy of federal Form 8916A and/or federal Form 
the return shall be prima facie evidence that such individual is        8990 if completed.
authorized to sign the return on behalf of the corporation. 
                                                                        Line 25 – Energy efficient commercial buildings deduction
Tax preparers who fail to sign the return or provide their              Include a copy of federal Form 7205 if completed.
assigned tax identification number shall be liable for a $25 
penalty for each such failure. If the tax preparer is not self-em-      Line 28 – Taxable income before federal net operating loss 
ployed, the name of the tax preparer’s employer and the                 deductions and federal special deductions
employer’s tax identification number should also be provided.           The amount on line 28 must agree with line 28, page 1, of the 
In the case of a corporation in liquidation or in the hands of a        taxpayer’s unconsolidated federal Form 1120 or the appropri-
receiver or trustee, certification shall be made by the person          ate line from any other federal corporate return filed.
responsible for the conduct of the affairs of such corporation.
                                                                        If the corporation has not filed a separate federal income tax 
                                                                        return, taxpayer must explain and reconcile the differences on 
Annual General Questionnaire                                            a rider. 
Part I
All taxpayers must answer all questions on this schedule. If                      Taxpayers must include a copy of the federal 
necessary, include a rider detailing the information requested in                 return and any forms or schedules that accompa-
the questions.                                                                    nied the return that was filed with the Internal Rev-
                                                                                  enue Service. Failure to include the forms and 
Part II                                                                 schedules will result in an incomplete New Jersey Corpora-
Regulated investment companies must answer all questions                tion Business Tax return and the taxpayer may be assessed 
in Part II. If the taxpayer does not meet all the requirements, it      penalties and interest for noncompliance. See Technical Bul-
cannot file as a regulated investment company.                          letin, TB-98, Federal Return and the Forms and Schedules to 
                                                                        Include with the Corporation Business Tax Return
Note:  Check the box on page 1 to indicate the corporation is a 
      regulated investment company.
                                                                        Part II – Modifications to Entire Net Income
                                                                        Additions
Schedule A                                                              Line 1 – Taxable income/(loss)
Every taxpayer must complete this schedule.                             Enter the amount from Schedule A, Part I, line 28.

                                                                        Line 2 – Other federally exempt income
Part I – Computation of Entire Net Income
        Cannabis Licensees. The income of a taxpayer,                   For tax years beginning on and after January 1, 2018, all in-
        that is registered as a cannabis licensee with New              come that was exempt for federal income tax purposes under 
        Jersey, shall be determined without regard to 26                any provision of the Internal Revenue Code or any federal law 
U.S.C. s.280E. However, Schedule A, Part I must be com-                 must be added back. If such amounts were not added back on 
pleted using the amounts that were reported for federal pur-            any other line of Schedule A, include such amounts online 2 
poses. The taxpayer will calculate the expenditures that would          and include a rider detailing such amounts and such provisions 
have been eligible to be claimed as a federal income tax de-            of the Internal Revenue Code.
duction (but that were disallowed for federal purposes because          Note:  Items of income excluded from federal taxable net in-
cannabis is a controlled substance under federal law) and in-                  come pursuant to the specific terms of a treaty do not 
clude those amounts in New Jersey modifications to entire net                  have to be added back to entire net income.
income in Part II. The taxpayer must attach a rider detailing the 
math and the deductions being claimed.                                  Line 3 – Interest on federal, state, municipal, and other 
                                                                        obligations
Line 4 – Dividends and other inclusions                                 Include any interest income that was not taxable for federal in-
        Beginning with Tax Year 2023, GILTI is treated as a             come tax purposes and was not included in taxable net income 
        dividend. Include a copy of federal Form 8992. The              reported on line 1.

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Line 4 – New Jersey State and other states taxes ordering (preventing the I.B.F. deduction from increasing net
Enter the total taxes paid or accrued to the United States, a operating losses) is no longer applicable. However, the change
possession or territory of the United States, a state, a political in historic ordering is prospective only. Taxpayers cannot adjust
subdivision thereof, or the District of Columbia, or to any for- NOLs and PNOLs from privilege periods ending before July 31,
eign country, state, province, territory or subdivisions thereof, 2023 using the law change from P.L. 2023, c.96.
on or measured by profits or income, business presence or
business activity, including any foreign withholding tax, or any Line 12 – I.R.C. § 78 Gross-up
sales and use tax paid by a utility vendor, taken as a deduction The portion of any I.R.C. § 78 gross-up included in dividend
in Part I of Schedule A and reflected in line 28. For additional income on line 4 of Schedule A, Part I, that is not excluded/de-
information see Technical Bulletin TB-80, Addback of Other ducted from taxable net income elsewhere, may be deducted
States’ Taxes, and the Schedule H instructions. on this line. Include a copy of federal foreign tax credit, Form
1118.
Line 5 – Depreciation modification being added to income
Enter the depreciation and other adjustments being added to Note: I.R.C. § 78 gross-up amounts cannot be included in
income. See Schedule S instructions for more information. the dividend exclusion calculation on Schedule R or
Form 332, which is the form used to calculate the Tiered
Line 6 – Other additions Subsidiary Dividend Pyramid Tax Credit.
Report any other additions to income for which a place has not
been provided somewhere else on the return. This includes, Line 13a – Elimination of Nonoperational Activity
but is not limited to: Enter the net effect of the elimination of nonoperational activity
from Schedule O, Part I, line 36. Schedule O is available on
• I.R.C. § 199A amounts that were deducted for federal the Division’s website.
purposes;
Line 13b – Elimination of Nonunitary Partnership Income
• Any deductions for research and experimental expenditures, Enter the net effect of the elimination of nonunitary partnership
to the extent that those research and experimental expen- income and expenses from Schedule P-1, Part II, line 4.
ditures are qualified research expenses or basic research
payments for which an amount of credit is claimed pursuant Line 14 – Cannabis Licensee Deduction
to section 1 of P.L.1993, c.175 (C.54:10A-5.24) unless those A New Jersey cannabis licensee is allowed to deduct
research and experimental expenditures are also used to their expenditures that would be eligible to be
compute a federal credit claimed pursuant to I.R.C. § 41. claimed as a federal income tax deduction and their
Note: See Notice: Timing of New Jersey Qualified Research expenditures that would qualify as qualified research expendi-
Expenditures. tures pursuant to section 174 of the Internal Revenue Code,
but were disallowed for federal purposes because cannabis is
Include separate riders explaining any items reported. a controlled substance under federal law. Any qualified re-
search expenditure that is claimed as a deduction may also be
Line 7 – Taxable Income/(Loss) claimed as a qualified research expense for purposes of the
Add lines 1 through 6. New Jersey Research and Development Tax Credit on Form
306. Attach a rider detailing the calculations.
Deductions
Line 8 – Dividend Exclusion Line 15 – Other deductions
Enter the amount from Schedule R, line 9. Report any other deduction adjustments for which a place has
not been provided somewhere else on the return. The taxpayer
Line 9 – Depreciation modification being subtracted from must include a rider detailing the information.
income
Enter the depreciation and other adjustments being subtracted For privilege periods beginning on and after January
from income if Schedule S, line 15 is a negative number. Enter 1, 2022, New Jersey qualified research expenditures
the amount as a positive number. See Schedule S instructions that are included on the Corporation Business Tax
for more information. Research and Development Tax Credit (Form 306) can be de-
ducted on the tax return in the same year that the expenditures
Line 10 – Previously Taxed Dividends are claimed on the credit form, rather than amortizing the ex-
If line 1 includes any dividends or GILTI that were previously penditures. This deduction only applies to New Jersey qualified
taxed for New Jersey purposes, complete Schedule PT and research expenditures. Non-New Jersey qualified research ex-
Schedule R to determine the amount that can be deducted. In- penditures are deductible in the same manner and with the
clude only dividends that were taxed in a prior tax year by New same timing as they are for federal purposes. Enter these
Jersey. Do not include any federal previously taxed income that amounts on line 15 and include a rider explaining the deduc-
was not taxed by New Jersey. Schedule PT is available on the tion. See Notice: Timing of New Jersey Qualified Research Ex-
Division’s website. penditures for more information. Cannabis licensees, include
these expenses on line 14, not line 15.
Line 11 – International Banking Facility Deduction (I.B.F.)
A banking corporation, as defined by N.J.S.A. 54:10A-4(n), that Line 16 – Total Deductions
is operating as an International Banking Facility may be eligible Add line 8 through line 15.
for an I.B.F. exclusion. Information on the exclusion can be
found at N.J.A.C. 18:7-5.2(a)2vii and N.J.A.C. 18:7-16. Line 17 – Entire net income/(loss) for New Jersey
purposes
For banking corporations only andfor privilege pe- Subtract line 16 from line 7.
riods ending on and after July 31, 2023, the I.B.F. is
a pre-allocation exclusion. In addition, the historic

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Line 18 – Allocation Factor from Schedule J Line 3a – New Jersey Nonoperational Income
All taxpayers must complete Schedule J. Enter allocation Enter the amount from Schedule O, Part III. See Schedule O
factor from Schedule J. See Schedule J instructions for more for more information. This schedule is available on the Divi-
information. sion’s website.
Line 19 – Allocated entire net income/(loss) before net op- Note: Taxpayers cannot net nonoperational losses against op-
erating loss deductions erational income.
Multiply line 17 by line 18 and enter the result. If zero or less,
enter zero on line 21. Line 3b – Nonunitary Partnership Income
Enter the amount from Schedule P-1, Part II, line 5. See
If the amount is zero or less, this is the taxpayer’s cur- Schedule P-1 instructions for more information.
rent year net operating loss that can be carried forward as a
post-allocation net operating loss (NOL) deduction to a suc- Note: Taxpayers cannot net nonunitary partnership losses
ceeding tax period pursuant to N.J.S.A. 54:10A-4(v). against operational income.

Note: A net operating loss is the excess of allowable deduc- Line 4 – Tax Base
tions over gross income used in computing entire net in- Add lines 3a and 3b to line 2a, 2b, or 2c, whichever is
come. A net operating loss deduction is not an allowable applicable.
deduction in computing a net operating loss. Post-allo-
cation net operating losses expire 20 privilege periods
after the loss was originally generated. Information on Schedule A-2
the net operating losses must be detailed on Form 500. Cost of Goods Sold
The amounts reported on this schedule must be the same as
Line 20 – Net Operating Loss Deduction the amounts reported on the taxpayer’s federal Form 1125-A.
Enter the amount of net operating loss deduction from Include Form 1125-A with the return.
Form 500, Section C, line 3. Do not enter more than the
amount on line 19. See Form 500 instructions.
Line 21 – Taxable net income Schedule A-3
Subtract line 20 from line 19 and enter the result. Summary of Tax Credits
This schedule must be completed if any tax credits are being
Part III – Computation of New Jersey Tax Base claimed for the current tax period. Any tax credit(s) claimed on
Line 1 – Taxable net income this schedule must be documented with a valid New Jersey
Enter the amount from Schedule A, Part II, line 21. Most Corporation Business Tax credit form and must be included
taxpayers will also enter this amount on line 2c. Investment with the tax return. See the Additional Forms and Instructions
companies and real estate investment trusts must follow the section for a list of available credit forms and for instructions
instructions on line 2a or line 2b, respectively. on obtaining them. If the taxpayer is claiming a valid tax credit
that is allowable in accordance with the New Jersey Corpora-
tion Business Tax Act for which a place has not been provided
Beginning with Tax Year 2023, captive real estate somewhere else on the schedule, report the amount on the
investment trusts, captive investment companies, “Other” line in the appropriate section of Schedule A-3.
and captive regulated investment companies must
be included as members of the combined group.
For more information on these requirements, see Corpora- Taxpayers must include the appropriate credit
tions Required to File. For more information on combined re- form in the year the credit was earned even if they
porting, see the Division’s website. are not claiming the credit on their tax return.

Line 2a – Investment Company
Qualified investment companies enter 40% of line 1. See the Part I – Tax Credits Used Against Liability
Corporations Required to File section for information about in- The total on line 30 must equal the amount reported on page 1,
vestment companies. line 3. Amounts to be entered are calculated on the credit
forms. See the specific New Jersey Corporation Business Tax
Note: Check the box on page 1 to indicate the corporation is credit form for information about each credit.
an investment company.
Note: Most tax credits cannot reduce the tax liability below the
Line 2b – Real Estate Investment Trust minimum tax. However, there are rare instances where it
Qualified real estate investment trusts enter 4% of line 1. See can. Follow the instructions on the credit form regarding
the Corporations Required to File section for information about how and where to record the information to ensure the
real estate investment trusts. credit is properly offsetting the tax liability.

Note: Check the box on page 1 to indicate the corporation is a Part II – Refundable Tax Credits
real estate investment trust. If the credit form calculates an amount to be refunded, enter
the refundable portion on the appropriate line. The total on
Line 2c – All Others line 6 must equal the amount reported on page 1, line 10c.
Enter the amount from line 1 if the taxpayer is not filing as ei-
ther an investment company or a real estate investment trust.

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copyrights, and trademarks; all other business receipts earned
Schedule A-4 in New Jersey.
Summary Schedule
Every corporation must complete this schedule. Report the in- Services are sourced based on market sourcing.
formation on each line of Schedule A-4 from the return sched-
ules indicated. All lines must be completed as applicable. Receipts from Sales of Capital Assets: Receipts from sales
of capital assets (property not held by the taxpayer for sale to
customers in the regular course of business), either within or
Schedule B outside New Jersey, should be included in the numerator and
Balance Sheet the denominator based on the net gain recognized and not on
Every taxpayer must complete this schedule. The amounts re- gross selling prices. If the taxpayer’s business is the buying
ported must be the same as the year-end figures shown on the and selling of real estate or the buying and selling of securities
taxpayer’s books. Where applicable, data must match amounts for trading purposes, gross receipts from the sale of such as-
reported on Schedule L of the federal pro forma or federal sets should be included in the numerator and the denominator
return. If not, explain and reconcile on rider. Consolidated in- of the receipts fraction.
formation is not permitted on separate returns. If the taxpayer
is included in a consolidated federal income tax return, this Note: The amount of dividends (deemed and/or paid divi-
schedule must be completed by the taxpayer on its own sepa- dends) excluded from entire net income pursuant to
rate basis. N.J.S.A. 54:10A-4(k)(5), are not included in the numer-
ator or denominator of the receipts fraction. However,
the dividend (deemed and/or paid dividends) values
that are not excluded are included in the numerator or
Schedule F denominator.
General Information and Compensation
All applicable information should be provided for each corpo-
rate officer regardless of whether compensation was received. GILTI is now treated as a dividend for New Jersey
The data reported on Schedule F must match what is reported purposes and is reported on the dividends and
on federal Form 1125-E. Include Form 1125-E with your return. other inclusions line (Schedule A, Part I, line 4).

Line 8 – Allocation Factor
Schedule G Divide line 6 (New Jersey based receipts) by line 7 (Total Re-
Schedule G has been discontinued. ceipts everywhere) and enter the result. When computing the
allocation factor in Schedule J, division must be carried to six
(6) decimal places, e.g., 0.123456.
Schedule H
Taxes
Itemize all taxes that were in any way deducted in arriving at Schedule P-1
taxable net income, whether reflected in Schedule A, Part I at Partnership Investment Analysis
line 2 (Cost of goods sold and/or operations), line 17 (Taxes), Part I – Partnership Information
line 26 (Other deductions), or anywhere else on Schedule A. Itemize the investment in each partnership, limited liability
company and any other entity that is treated for federal tax
purposes as a partnership. List the name, the federal identi-
fication number, and the date and state where organized for
Schedule J
each partnership. Also, check the type of ownership (general or
Computation of Allocation Factor limited), the tax accounting method used to reflect your share
All taxpayers must complete this schedule.
of partnership activity on this return (flow through method or
Only activities related to operational activity are to be used in separate accounting) and whether or not the partnership has
computing the general allocation factors. If the taxpayer has nexus in New Jersey. Itemize in column 7 the amount of tax
nonoperational activity, see Schedule O. If the taxpayer has payments made on behalf of the taxpayer by partnership enti-
nonunitary partnership income, see Schedule P-1. ties. Carry the total amount of taxes paid on behalf of taxpayer
to page 1, line 10b. Include a copy of Schedule NJK-1 from
Lines 1–5 – Receipts Fraction Form NJ-1065. Any one member limited liability company must
Receipts from sales of tangible personal property are allo- be included on this schedule.
cated to New Jersey if the goods are shipped to points within
New Jersey. Receipts from the sale of goods are allocable to Part II – Separate Accounting of Nonunitary
New Jersey if shipped to a New Jersey or a non-New Jersey Partnership Income
customer where possession is transferred in New Jersey. Taxpayers that use a Separate Tax Accounting Method on
Receipts from the sale of goods shipped to a taxpayer from nonunitary partnership investments must complete Part II to
outside New Jersey to a New Jersey customer by a common compute the appropriate amount of tax. Pursuant to N.J.S.A.
carrier are allocable to New Jersey. Receipts from the sale 54:10A-6, taxpayers must enter a single sales factor allocation
of goods shipped from outside New Jersey to a New Jersey in column 3. Do not use three factor allocation (property, pay-
location where the goods are picked up by a common carrier roll, and sales) from the partnership return (Form NJ-1065).
and transported to a customer outside New Jersey are not allo-
cable to New Jersey. Receipts from the following are allocable
to New Jersey: services performed if the benefit of the service
is received in New Jersey; rentals from property situated in
New Jersey; royalties from the use in New Jersey of patents,
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from privilege periods ending before July 31, 2023, using
Schedule PC the law change from P.L. 2023, c.96.
Per Capita Licensed Professional Fee
Professional corporations (PC) formed under N.J.S.A. • GILTI is now treated as a dividend for New Jersey purposes
14A:17-1 et seq. or any similar laws of a possession or territory and is reported on the dividends and other inclusions line
of the U.S., a state, or political subdivision thereof, are liable (Schedule A, Part I, line 4).

for a fee on licensed professionals. • The maximum dividend exclusion increased from 95% to
Per N.J.S.A. 14A:17-3, examples of licensed professionals are: 100% from qualified subsidiaries if such dividends were
certified public accountants, architects, optometrists, profes- included in the taxpayer’s gross income on Schedule A.
sional engineers, land surveyors, land planners, chiropractors, However, a claw-back provision that requires a 5% reduc-
physical therapists, registered professional nurses, dentist, tion of the exclusion amount has been added (see N.J.S.A.
osteopaths, physicians and surgeons, doctors of medicine, 54:10A-4(k)(5)(F)(ii)).
doctors of dentistry, podiatrists, veterinarians and, subject to Taxpayers cannot include the following as part of the dividend
the Rules of the Supreme Court, attorneys at law. exclusion:
Note: Licenses acquired through vocational training and/or • Money market fund or REIT income;

apprenticeships within those trades are not considered • FDII (as this is not considered income from dividends or
licensed professionals. Examples include plumbers,
deemed dividends for New Jersey Corporation Business
electricians, HVAC technicians, cosmetologists, fire and
Tax purposes); or
burglar alarm services, acupuncturists, hair stylists, ele-
vator, escalator, and moving walkway mechanics, lock- • The portion of I.R.C. § 78 gross-up deducted on line 13,
smiths, and court reporters. Part II, Schedule A.

The fee is assessed provided there are more than two pro- Dividends and deemed dividends from all sources must be
fessionals in the PC. The fee is assessed on professionals included in Schedule A. However, taxpayers may exclude from
that are owners, shareholders, and/or employees of the pro- entire net income 100% of dividends from qualified subsidiar-
fessional corporation. The number of professionals should be ies, less the 5% clawback, if such dividends were included in
calculated using a quarterly average. The fee for each resident the taxpayer’s gross income on Schedule A. A qualified subsid-
and nonresident professional with physical nexus with New iary is defined as ownership by the taxpayer of at least 80% of
Jersey is $150. The fee for each nonresident professional the total combined voting power of all classes of stock entitled
without physical nexus with New Jersey is $150 multiplied by to vote and at least 80% of the total number of shares of all
the allocation factor of the corporation. The fee is limited to other classes of stock, except non-voting stock which is limited
$250,000 per year. and preferred as to dividends.
In the event of a period shorter than a year, the fee and limit With respect to other dividends, the exclusion is limited to 50%
may be prorated by months. A fraction of a month is deemed to of such dividends included in the taxpayer’s gross income on
be a month. Schedule A, less the 5% clawback, provided the taxpayer owns
at least 50% of voting stock and 50% of the total number of
Check the box on page 1 to indicate the corporation is a pro- shares of all other classes of stock.
fessional corporation.
Any subsidiary that is owned less than 50% is not entitled to a
Part II, line 4 – Installment Payment: A 50% prepayment to- dividend exclusion.
wards the subsequent year’s fee is required with the current
year’s return. If the taxpayer received tiered dividends from a tiered subsidi-
ary that filed and paid tax in excess of the minimum tax to New
Part II, line 8 – Credit: Amount to be credited towards next Jersey on those same dividends, do not include these divi-
year’s fee. This fee is not eligible for refund. dends on Schedule R.
The tiered dividend exclusion from certain subsidiaries is calcu-
Schedule P lated separately on Form 332. See Form 332 for more informa-
Schedule P has been discontinued. tion. This form is available on the Division’s website.

New Jersey follows the federal ownership attribu-
tion rule changes under I.R.C. §958(b) and I.R.C.
Schedule R
§318 that broadened the federal attribution rules
Dividend Exclusion that were retroactive to January 1, 2017, in addi-
P.L. 2023, c.96, made a series of technical correc-
tions, clarifications, and changes that affect Sched- tion to the already broad Corporation Business Tax attribution
ule R. rules.

• For privilege periods ending on and after July 31, 2023, the Schedule PT – Previously Taxed Dividends: If you had
dividend exclusion is a pre-allocation exclusion. subsidiary dividend income that was reported in a previous tax
year for New Jersey Corporation Business Tax purposes and
• The historic ordering limitation (preventing the dividend ex- for which you paid greater than the New Jersey minimum tax
clusion from increasing net operating losses) is no longer in that tax year and those same dividends are included in your
applicable. However, the change in historic ordering is pro- entire net income this tax year, complete Schedule PT in con-
spective only. Taxpayers cannot adjust NOLs and PNOLs junction with Schedule R. See Schedule PT for more informa-
tion. This schedule is available on the Division’s website.

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Column B – Use the federal basis adding back the special de-
Schedule S preciation reduction.
All taxpayers must complete this schedule and must in-
clude a copy of a completed federal Depreciation Schedule, Enter the bonus depreciation claimed (50% or
Column C –
Form 4562. Schedule S provides for adjustments to deprecia- 30%). If both categories of bonus depreciation are claimed,
tion and certain safe harbor leasing transactions. Gas, electric provide a rider detailing the assets that used 50% and the as-
and gas, and electric utilities must also complete Schedule S, sets that used 30%.
Part II, for property placed in service prior to January 1, 1998.
Column D – Enter the convention that was used for federal
Part I – Depreciation and Safe Harbor Leasing purposes. The applicable conventions are Half-Year Conven-
New Jersey has decoupled from I.R.C. §168(k) tion, Mid-Quarter Convention, or the Mid-Month Convention.
bonus depreciation and I.R.C. § 179 expensing
provisions. See N.J.S.A. 54:10A-4(k)(12) and Column E – Enter the method that was selected for federal
N.J.S.A. 54:10A-4(k)(13). Adjustments must be purposes. The applicable methods are 200% declining bal-
made accordingly. ance, 150% declining balance, or straight-line.
Line 1 through Line 6 – These lines detail the depreciation Column F – Enter the amount of federal depreciation claimed
deduction reflected in the Computation of Entire Net Income on federal Form 4562.
(Schedule A, Part I) into several categories. In most circum- To determine the New Jersey depreciation, multi-
Column G –
stances, the information can be found on federal Form 4562. ply column B by the applicable rate from the appropriate table
Line 7 – Enter the amount reported on the federal Form 4562. (See IRS Pub. 946 for complete tables). Enter the total on
Schedule S, Part I, line 9.
Line 8 – Enter the amount of current depreciation on property
placed in service in prior years carried over into the current Worksheet II
period. Column D – Enter the federal depreciation claimed up to the
date the property was sold.
Line 9 – Enter the amount from Depreciation Worksheet I,
line 10, column F. Column E – Enter the New Jersey depreciation claimed up to
the date the property was sold.
Line 11 – IRC § 179 limitation. Enter the lesser of line 1 or
$25,000. Column F – Enter the difference between column D and col-
umn E. If the amount is positive, there is an excess of depre-
Line 12 – Enter the amount from Worksheet II, line 16, col- ciation that must be added to the federal amount claimed on
umn F. If the amount is positive, add it to the total reported on Part I, line 7. If the amount is negative, there is a deficiency
line 15. If it is negative, subtract it from the total. that must be deducted from Part I, line 7.
Line 13 – Enter any adjustment to depreciation that is an addi-
tion. This can include, but is not limited to, partnership activity.
Form 500
Line 14 – Enter any adjustment to depreciation that is a deduc- Post Allocation Net Operating Loss (NOL) and
tion. This can include, but is not limited to, partnership activity. Prior Net Operating Loss Conversion Carryover
(PNOL) Deductions
Part II – New Jersey Depreciation for Gas, The historic ordering (preventing the dividend
Electric, and Gas and Electric Public Utilities exclusion and international banking facility deduction
Gas, electric, and gas and electric utilities must complete this from increasing net operating losses) is no longer
schedule to compute their New Jersey depreciation allowable applicable.
for the single asset account, which is comprised of all depre-
ciable property placed in service prior to January 1, 1998. The Note: The change in historic ordering is prospective only. Tax-
payers cannot adjust NOLs and PNOLs from privilege
basis of this asset account will be the total federal depreciable
periods ending before July 31, 2023, using the P.L.
basis as of December 31, 1997, plus the excess of the book
2023, c.96 law change.
depreciable basis over the federal tax basis as of December 31,
1997. This basis will be reduced yearly by the federal basis of For New Jersey Corporation Business Tax purposes, net oper-
these assets sold, retired or disposed of from January 1, 1998, ating losses and net operating loss carryovers have a 20-year
to date. carryover period and can only be carried forward. No carry-
Note: Gas, electric and gas, and electric utilities may have backs are allowed. PNOLs can only be carried forward for the
20 privilege periods following the period of the initial loss.
adjustments from both Part I and Part II. If the taxpayer
has amounts reported on Schedule S, Part II, lines 1 For tax years beginning on and after January 1, 2020, the fed-
through 5, enter the amount from Schedule S, Part I, eral rules and regulations governing consolidated return net
line 15 onto Schedule S, Part II, line 6b, not Schedule A, operating losses and net operating loss carryovers apply to the
Part II, line 5 or line 9. New Jersey net operating loss carryover provisions to the ex-
tent they are consistent with the provisions of the New Jersey
Worksheet I Corporation Business Tax Act. If the New Jersey and federal
Column A – Sort the property you acquired and placed in provisions differ, the New Jersey Corporation Business Tax Act
service during the tax year 2023 according to its classification provisions govern. New Jersey generally follows the federal
(3-year property, 5-year property, etc.) as shown in column A. rules governing mergers, acquisitions, reorganizations, spin-
offs, split-offs, dissolution, bankruptcy, or any form of cessation

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of a business. New Jersey also follows any other provision of Line 2 – Enter the amount of PNOL reported on line 1 that was
the federal rules that limits or reduces federal net operating deducted in a previous year.
losses and federal net operating loss carryovers.
Line 3 – Enter the amount of PNOL that has expired.
Post Allocation Net Operating Loss (NOL) are losses that
were generated in tax years ending on or after July 31, 2019. Line 4 – Enter the amount excluded from federal taxable in-
These losses occur on a post-allocation basis. come under subparagraph (A), (B), or (C) of paragraph (1) of
subsection (a) of Internal Revenue Code (26 U.S.C. s.108). If
NOLs are limited to 80% of the taxpayer’s taxable net in- the amount is greater than the PNOL reported on line 1 (less
come for tax years ending on or after July 31,2023. N.J.S.A. lines 2 and 3), carry the remainder to Section B, line 5.
54:10A-4(w) mandates that the I.R.C. § 172(a) (2) limitation
applies to net operating losses calculated pursuant to N.J.S.A. Line 5 – Subtract the amounts reported on lines 2 through 4
54:10A-4(v).(August 1, 2023, is substituted for the reference from the amount on line 1. This is the total amount of PNOL
to January 1, 2018, in 26 U.S.C. s.172(a)(2)(A), and July 31, available for deduction in the current year.
2023, is substituted for the reference to December 31, 2017, in
26 U.S.C. s.172(a)(2)(A).) Line 6 – Enter the amount reported on Schedule A, Part II,
line 19. If the amount is less than zero, enter zero.
The Prior Net Operating Losses (PNOL) are losses that were
generated in tax years ending prior to July 31, 2019. In order Line 7 – Enter the lesser of lines 5 or 6. This is the current year
to use these losses, the unused unexpired amounts must be PNOL deduction. Enter the amount on Section B, line 8 and
converted to a post-allocation basis. This conversion is done Section C, line 1.
on Worksheet 500-P.
Section B – Post Allocation Net Operating
Losses (NOL)
PNOLs must be deducted from allocated entire This section is only applicable to loss carryovers from periods
net income before any NOLs can be deducted. ending on and after July 31, 2019. Only complete this section
if the Allocated Entire Net Income/(Loss) before net operating
loss deductions on Schedule A, Part II, line 19 is positive.
Discharge of Indebtedness
If the taxpayer has a discharge of indebtedness amount that Line 1 – Enter the amount of loss reported on 2021 Schedule
is excluded from federal taxable income under subparagraph A, Part II, line 22 and/or 2022 CBT-100, Schedule A, Part II,
(A), (B), or (C) of paragraph (1) of subsection (a) of I.R.C. sec- line 19 Enter the year in which the loss was generated.
tion 108, adjustments need to be made to the PNOLs, NOLs,
and/or post allocation net operating loss carryovers. Since the Section B is used to calculate the amount of the New Jersey
discharge of indebtedness amount is not an allocated amount, post allocation net operating loss carryover.
the taxpayer must multiply the discharge of indebtedness
The post allocation net operating loss deduction is subtracted
amount by its current year allocation factor before making any
from allocated entire net income after the taxpayer uses all of
adjustment to the net operating losses or net operating loss
the available PNOLs.
carryovers.
The taxpayer must first reduce the PNOLs by the allocated On line 1, taxpayers will only check the box next
discharge of indebtedness amount. If the allocated discharge to the Return Period Ending entry if the NOL is
of indebtedness amount exceeds all of taxpayer’s PNOLs and from a tax period in which the taxpayer was a tax-
the taxpayer has post allocation net operating loss carryovers, able member on a New Jersey combined return.
the taxpayer must also reduce the post allocation net operating
loss carryovers by the remaining balance. If, after reducing the Note: The loss reported each year must not include any
post allocation net operating loss carryovers by the discharge amount excluded from federal taxable income under
of indebtedness amount, there are still post allocation net oper- subparagraph (A), (B), or (C) of paragraph (1) of sub-
ating loss carryovers available, the taxpayer may then reduce section (a) of Internal Revenue Code (26 U.S.C. s.108).
its allocated entire net income by the remaining post allocation
net operating loss carryover. Line 2 – Enter the total of all losses from line 1.
Section A – Computation of Prior Net Operating Line 3 – Enter that portion of the loss reported on line 2 that
was deducted in a previous year.
Losses (PNOL) Deduction
This section is only applicable if the taxpayer has loss carry- Line 4 – Enter the amount of the NOL that has expired.
overs from periods ending prior to July 31, 2019. Only com-
plete this section if the Allocated Entire Net Income/(Loss) Note: NOLs can be carried forward to each of the 20 privilege
before net operating loss deductions on Schedule A, Part II, periods following the privilege period of the loss.
line 19 is positive.
Line 5 – Enter the amount of any adjustments required under
If the taxpayer is not claiming a PNOL, enter zero on Section provisions of the federal Internal Revenue Code other than
C, line 1 and continue with Section B. the I.R.C. § 172(a)(2) limitation. New Jersey generally follows
the federal rules governing mergers, acquisitions, reorganiza-
Line 1 – Enter the total amount reported in Worksheet 500-P, tions, spin-offs, split-offs, dissolution, bankruptcy, or any form
Part II, column 3. of cessation of a business. New Jersey also follows any other
provision of the federal rules that limits or reduces federal net
operating losses and federal net operating loss carryovers. See

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N.J.S.A. 54:10A-4.5(c) for more information. If the taxpayer • Form 301: Urban Enterprise Zone Investment Tax Credit
reported an amount in Section A, line 4 of Form 500, only enter
the excess here. (Section A, line 1 minus lines 2, 3, and 4.) • Form 302: Redevelopment Authority Project Tax Credit
• Form 304: New Jobs Investment Tax Credit
Do not include any I.R.C. § 172(a)(2) limitation • Form 305: Manufacturing Equipment and Employment In-
adjustments on line 5. The I.R.C. §172(a)(2) lim- vestment Tax Credit
itation computation is applied at lines 10
through 15. • Form 306: Research and Development Tax Credit
• Form 311: Neighborhood Revitalization State Tax Credit
Line 6 – Subtract the amounts reported on lines 3 through 5
from the amount on line 2. This is the total amount of post allo- • Form 312: Effluent Equipment Tax Credit

cation NOL available for deduction in the current year. • Form 313: Economic Recovery Tax Credit
Line 7 – Enter the amount reported on Schedule A, Part II, • Form 315: AMA Tax Credit
line 19. If the amount is less than zero, enter zero.
• Form 316: Business Retention and Relocation Tax Credit
Line 8 – Enter the PNOL claimed on Section A, line 7. • Form 317: Sheltered Workshop Tax Credit

Line 9 – Subtract line 8 from line 7. If the amount is zero, enter • Form 318: Film Production Tax Credit
zero on Section C, line 2 and continue with Section C.
• Form 319: Urban Transit Hub Tax Credit

Line 10 – Enter the portion of line 6 generated for privilege • Form 320: Grow New Jersey Tax Credit
periods ending on or after July 31, 2019, but beginning before
August 1, 2023. • Form 321: Angel Investor Tax Credit
Line 11 – Enter the portion of line 6 generated for privilege pe- • Form 322: Wind Energy Facility Tax Credit
riods beginning after July 31, 2023. • Form 323: Residential Economic Redevelopment and
Growth Tax Credit
Line 12 – Subtract line 10 from line 9.
• Form 324: Business Employment Incentive Program Tax
Line 13 – Enter 80% of line 12. Credit
Line 14 – Add line 10 to the lesser of line 11 or line 13. • Form 325: Public Infrastructure Tax Credit
Line 15 – Enter the lesser of line 9 or line 14 here and on line • Form 326: Drug Donation Program Tax Credit
2 of Section C. • Form 327: Film and Digital Media Tax Credit
Section C – Total Net Operating Loss Deduction • Form 328: Tax Credit for Employers of Employees With
Line 1 – Enter the amount from from Section A, line 7. Impairments
• Form 329: Pass-Through Business Alternative Income Tax
Line 2 – Enter the amount from Section B, line 15. Credit
Line 3 – Add lines 1 and 2. Enter here and on Schedule A, Part • Form 330: Apprenticeship Program Tax Credit
II, line 20.
• Form 331: Tax Credit for Employer of Organ/Bone Marrow
Donor
Worksheet 500-P
Worksheet 500-P was designed to help taxpayers transition to • Form 332: Tiered Subsidiary Dividend Pyramid Tax Credit
the new net operating loss regime. Taxpayers were required to
convert these losses using the allocation factor from the last • Form 334: Innovation Evergreen Fund Tax Credit
privilege period ending before July 31, 2019. A copy of this • Form 335: Unit Concrete Products Tax Credit
form must be included with the taxpayer’s return each year
until the losses are used up or expired but is not recomputed
each year.

Additional Forms and Instructions
Most of the forms and schedules needed to complete the
return are included with Form CBT-100. However, there are
several stand alone forms and schedules that taxpayers can
obtain on the Division’s website. This includes:
• Schedule N: Nexus – Immune Activity Declaration and the
Nexus Questionnaire
• Schedule O: Nonoperational Activity
• Schedule PT: Dividend Exclusion for Certain Previously
Taxed Dividends

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