2023 CBT-100U
                          Instructions for Corporation Business Tax Unitary Return

Electronic Filing Mandate                                               Distortion of Net Income
All Corporation Business Tax returns and payments must be               The Director is authorized to adjust and redetermine items of 
made electronically. This mandate includes all returns, esti-           gross receipts and expenses as may be necessary to make 
mated payments, extensions, and vouchers. Visit the Division’s          a fair and reasonable determination of tax payable under the 
website or check with your software provider to see if they sup-        Corporation Business Tax Act. For details regarding the condi-
port 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: Form CBT-100U must be filed electronically even if one 
      or more members of the combined group is a banking                Accounting Method
      corporation or financial business corporation. BFC filers         The return must be completed using the same method of ac-
      that submitted their payments through Electronic Funds            counting, cash, accrual or other basis, that was used on the 
      Transfer (EFT) should verify that they are using the cor-         federal income tax return. If a federal income tax return was 
      rect EFT codes.                                                   not filed, use the same accounting method that would have 
                                                                        been used if a federal return was filed. 

Before You Begin                                                        Note: Members that only use I.F.R.S. as their method of ac-
Read all instructions carefully before completing returns.                    counting can use I.F.R.S. when reporting their income; 
                                                                              however, the member must include a rider noting the 
Include a complete copy of the federal Form 1120 (or any                      potential differences, if any, from the rest of the group.
other federal corporate return) that was filed with the fed-
eral government for (or on behalf of) each member of the com-
bined group, and include all related forms and schedules that           Riders
                                                                        If space is insufficient, include riders as PDFs in the same form 
were filed as part of the full and complete federal return of the 
                                                                        as the original printed sheets. The riders must be numbered 
member. For more information, see TB-98(R), Federal Return 
                                                                        and clearly list the schedule(s) and line(s) of each correspond-
and the Forms and Schedules to Include with the Corporation 
                                                                        ing rider item.
Business Tax Return.
Form 1120-F filers attach the 1120-F to the return. If no 1120-F        Federal/State Tax Agreement
was completed but the income was reported on Form 5471,                 The New Jersey Division of Taxation and the Internal Revenue 
attach the 5471. If a non-U.S. corporation did not file federal         Service participate in a federal/State program for the mutual ex-
Form 1120-F and the income was not reported on federal Form             change of tax information to verify the accuracy and consistency 
5471, it must complete an 1120-F reporting its income and tax           of information reported on federal and New Jersey tax returns.
attributes as though the entity filed a federal return. 

Managerial Member Responsibilities                                      Mandatory Combined Reporting
The managerial member acts as the agent on behalf of the                For group privilege periods ending on and after July 31, 2019, 
combined group. The managerial member is required to ad-                members that are part of a combined group must file a com-
dress all tax matters including, but not limited to: filing and         bined New Jersey return, Form CBT-100U. Combined returns 
amending tax returns, filing extensions, and making estimated           are mandatory, not elective. 
tax payments and/or any tax liability payment on behalf of its 
taxable members. The managerial member is also responsible              Definitions
for responding to notices and assessments for its combined              Combined group is a group of companies that have common 
group. (N.J.S.A. 54:10A-4.10)                                           ownership and are engaged in a unitary business, and at least 
                                                                        one company is subject to tax under this chapter. It includes 
The managerial member of the combined group must register               all business entities except as provided for under any section 
the group in order to file the combined return. Information on          of the Corporation Business Tax Act (1945), P.L.1945, c.162 
managerial member registration is available on the Division’s           (C.54:10A-1 et seq.). See N.J.S.A. 54:10A-4(z).
website.
                                                                        Note: Pursuant to N.J.S.A. 54:10A-4(h) a combined group is a 
Personal Liability of Officers and Directors                                  taxpayer for the purposes of the Corporation Business 
Even though the managerial member is responsible for making                   Tax Act.
payments on behalf of the combined group, each taxable mem-
ber is jointly and severally liable for the tax due. In addition,       Common ownership means that more than 50% of the vot-
any officer or director of any corporation who shall distribute or      ing control of each member of a combined group is directly or 
cause to be distributed any assets in dissolution or liquidation        indirectly owned by a common owner or owners, either corpo-
to the stockholders without having first paid all corporation           rate or noncorporate, whether or not the owner or owners are 
franchise taxes, fees, penalties, and interest imposed on said          members of the combined group. Whether voting control is in-
corporation, in accordance with N.J.S.A. 14A:6-12, N.J.S.A.             directly owned shall be determined in accordance with section 
54:50-18 and other applicable provisions of law, shall be per-          318 of the federal Internal Revenue Code, 26 U.S.C. s.318. 
sonally liable for said unpaid taxes, fees, penalties, and inter-       See: N.J.S.A. 54:10A-4(aa). The Division interprets N.J.S.A. 
est. Compliance with N.J.S.A. 54:50-13 is also required in the          54:10A-4(aa) to mean that all of the ownership rules, includ-
case of certain mergers, consolidations, and dissolutions.              ing the beneficial and constructive ownership rules of I.R.C. 

                                                                   - 1 -

section 318 apply since the definition of common ownership              reporting is not elective. See N.J.S.A. 54:10A-4.8; N.J.S.A. 
states that the control can be direct or indirect.                      54:10A-4.10; and N.J.S.A. 54:10A-4.11. 

Managerial member is the common parent corporation if that              Elective World-Wide Group Election. When making a world-
corporation is a taxable member. If the common parent corpo-            wide group election, the combined group must include all of the 
ration is not a taxable member, the group must select a taxable         income, attributes, and allocation factors of all of the worldwide 
member to be its managerial member or, at the discretion of             business entities that are members of the unitary combined 
the Director or upon failure of the combined group to select its        group, regardless of whether such members filed a federal tax 
managerial member, the Director will designate a taxable mem-           return or whether such members filed a federal consolidated 
ber of the combined group as managerial member.                         return(s). See N.J.S.A. 54:10A-4(kk) for more information. 

Member is a business entity that is a part of a combined group,         Elective Affiliated Group Election. For the purposes of the 
unless otherwise excluded. See “Corporations Required to                affiliated group election, “affiliated group” is defined pursuant to 
File” for more information.                                             N.J.S.A. 54:10A-4(x). Only business entities that are U.S. do-
                                                                        mestic corporations (as defined in N.J.S.A. 54:10A-4(x)) for the 
Taxable member is a member that is subject to tax pursuant              purposes of the definition can be included in the affiliated group 
to the Corporation Business Tax Act (1945), P.L.1945, c.162             return. Non-U.S. corporations that do not file a federal return 
(C.54:10A-1 et seq.). See N.J.S.A .54:10A-4(ff).                        cannot be included in a New Jersey affiliated group combined 
                                                                        return. 
Nontaxable member is a member that is not subject to tax. 
See N.J.S.A .54:10A-4(ee).                                              Note: In most cases, the New Jersey affiliated group com-
                                                                              bined return constitutes the multinational corporation’s 
Unitary business is a single economic enterprise that is made                 entire U.S. footprint.
up either of separate parts of a single business entity or of a 
group of business entities under common ownership that are              The sole U.S. domestic corporation in a world-wide combined 
sufficiently interdependent, integrated, or interrelated through        group cannot make the affiliated group election on its own. In 
their activities so as to provide a synergy and mutual benefit          this situation, the combined group must file a water’s-edge or 
that produces a sharing or exchange of value among them and             world-wide group combined return. 
a significant flow of value among the separate parts. A unitary 
business shall be construed to the broadest extent permitted            An affiliated group election by the U.S. domestic corporations 
under the Constitution of the United States. See N.J.S.A.               does not relieve the non-U.S. corporations of their New Jersey 
54:10A-4(gg) and TB-93, The Unitary Business Principle and              Corporation Business Tax liability. Thus, a non-U.S. corporation 
Combined Returns, for more information and the full definition          organized outside the United States that does not file a federal 
of a unitary business for the purposes of combined reporting.           return, but has with New Jersey, must still file a separate New 
                                                                        Jersey Corporation Business Tax return. 
Combined Return Filing Methods 
        P.L. 2023, c.96, included several changes impacting             Allocation Methods for Combined Returns 
        combined groups for privilege periods ending on and                      For privilege periods ending on and after July 31, 
        after July 31, 2023, and in future privilege periods.                    2023, New Jersey has adopted the Finnigan method 
These changes may impact taxpayers’ decisions on their com-                      as the allocation method for all combined groups 
bined return filing method option. As a result of the law change,       (see N.J.S.A. 54:10A-4.7.e and N.J.S.A. 54:10A-4.11.c). Addi-
the Division of Taxation is providing a one-time exception to           tionally, the combined group is treated as one taxpayer for pur-
prospectively allow a change to the combined group’s filing             poses of sourcing the unitary receipts. Under the Finnigan 
methods. If a combined group chooses to select a different fil-         method, the allocation factor attributes in the numerator are de-
ing method on the 2023 CBT-100U, the method selected on a               rived from all of the members of the combined group.
prior year CBT-100U will not be binding for subsequent years, 
and the method selected on the 2023 CBT-100U, will be con-              Note:  For combined returns filed for privilege periods ending 
sidered the start of the binding period for the purposes of                   before July 31, 2023, the allocation method was tied to 
N.J.S.A. 54:10A-4.11(b).                                                      the filing method (see TB-89(R) for more information on 
                                                                              allocation methods for previous years).
A combined return is a filing method for a group of business 
entities in a unitary business. Determining the combined group          Nexus 
members involves imposing certain statutory limitations, which                   For privilege periods ending on and after July 31, 
affect the treatment of income, allocation factors, and tax attri-               2023, corporations will be deemed to have bright-
butes. This decision is commonly referred to as “world-wide vs.                  line economic nexus if during the corporation’s tax 
water’s-edge.” As an alternative, there is an option to file the        year: 
New Jersey combined return as an “affiliated group” as defined 
by statute.                                                             •  The receipts derived from New Jersey sources are more 
                                                                         than $100,000, or
Information on combined return filing methods is available in 
TB-109, Combined Group Filing Methods for Privilege Periods             •  200 or more separate transactions are delivered to custom-
Ending on and After July 31, 2023.                                       ers in New Jersey.
                                                                        Corporations that do not meet either threshold above, and do 
Mandatory Default Water’s-Edge Group Basis returns in-                  not create nexus in another way, do not have nexus even if 
clude only entities with significant business operations within         they have New Jersey receipts. Information on nexus is avail-
the United States, with several inclusions and exceptions.              able in TB-108, Nexus for Corporation Business Tax for Privi-
This is the mandatory default filing method. Combined                   lege Periods Ending on and after July 31, 2023.
                                                                   - 2 -

Each member that has nexus with New Jersey is subject to                A foreign corporation that is a partner of a New Jersey partner-
the $2,000 minimum tax. A member of a combined group has                ship is deemed subject to tax in the State and must file a return.
nexus if the member meets the standards of N.J.S.A. 54:10A-2 
as either part of the unitary business of the combined group            Corporations Claiming P.L. 86-272. If the entire combined 
or independent of the combined group. If a member does not              group is claiming immunity from tax pursuant to P.L. 86-272, 
have nexus with New Jersey, the member is not subject to the            each member must complete Schedule N, Nexus – Immune 
minimum tax.                                                            Activity Declaration and the Nexus Questionnaire. In addition, 
                                                                        the combined group must complete page 1, the Members and 
Unitary Partnerships. Corporate partners that are unitary               Affiliates Schedule, and Schedules A, A-2, A-3, and A-4. Pay-
with a partnership that have either New Jersey receipts or              ment for the related minimum tax liability and the installment 
transactions with New Jersey customers have nexus with New              payment (if applicable) must be submitted. P.L. 86-272 filers 
Jersey if the corporate partner’s proportionate share of the            are not subject to the surtax imposed by N.J.S.A. 54:10A-5.41. 
partnership’s activities in New Jersey meet the thresholds for 
bright-line economic nexus. Corporate partners and unitary              New Corporations. Every New Jersey corporation acquires a 
partnerships must use the flow-through method of accounting             taxable status beginning 1) on the date of its incorporation, or 
and the nexus determination is based on the corporate part-             2) on the first day of the month following its incorporation if so 
ner’s proportionate share of the partnership’s activities.              stated in its certificate of incorporation. Every corporation that 
                                                                        incorporates, qualifies, or otherwise acquires a taxable status 
Disregarded Entities. The attributes and activities of the dis-         in New Jersey must file a Corporation Business Tax return. 
regarded entity are included with the member’s (owner of the 
disregarded entity) attributes and activities when determining          S corporation (or Qualified Subchapter S Subsidiary). If 
whether the member has nexus.                                           the entity makes an  election to be treated as a C corporation 
                                                                        under either N.J.S.A. 54:10A-4(ff) or N.J.S.A. 54:10A-5.22.d 
Note: A taxpayer that is not in a unitary business relationship         (see TB-105 for information on electing C corporation status), it 
      with a combined group must file a separate return if the          is subject to the rules of combined reporting. An entity included 
      taxpayer has nexus with New Jersey and the manage-                on a combined return will be taxed in the same manner as the 
      rial member of the combined return does not make the              other members of the combined group. A copy of Form 1120-S 
      election to file the affiliated group combined return.            as filed must be submitted. The entity does not need to file a 
                                                                        CBT-100S for the privilege periods that it is included as a mem-
                                                                        ber of the combined group.
Corporations Required to File
If one member of a combined group has nexus, the combined               Domestic International Sales Corporations (DISC). A DISC 
group must file a New Jersey combined return.                           must complete this return as though no election had been 
                                                                        made under Sections 992-999 of the Internal Revenue Code. A 
In general, every corporation existing under the laws of the            DISC must complete all applicable schedules on the return.
State of New Jersey is required to file a Corporation Business 
Tax return.                                                             Combinable Captive Insurance Companies. Combinable 
                                                                        captive insurance companies are not exempt from the Corpo-
A foreign corporation has nexus if that foreign corporation:            ration Business Tax.  
1. Holds a general certificate of authority to do business in this 
   State issued by the Secretary of State; or                           Note: A regular captive insurance company that does not 
                                                                              meet the definition of a combinable captive insurance 
2. Holds a certificate, license, or other authorization issued by             company in N.J.S.A. 54:10A-4(y) is still exempt from the 
   any other department or agency of this State authorizing the               Corporation Business Tax.
   company to engage in corporate activity within this State; or 
3.  Does business in this State; or                                             Captive Investment Company. Taxpayers that 
                                                                                meet statutorily enumerated definitions of a “captive” 
4. Employs or owns capital in this State; or                                    must be included as members of the combined 
5. Employs or owns property in this State; or                           group. 
6.  Maintains an office in this State; or
                                                                                Captive Regulated Investment Company. Taxpay-
7. Derives receipts within this State that meet the thresholds                  ers that meet statutorily enumerated definitions of a 
   for bright-line economic nexus; or                                           “captive” must be included as members of the com-
8. Engages in contacts within this State; or                            bined group. 

9. Maintains a stock of goods in New Jersey and makes deliv-                    Captive Real Estate Investment Trust. Real estate 
   eries to customers from such stock.                                          investment trusts that meet the statutorily enumer-
                                                                                ated definitions of a “captive” must be included as 
Foreign corporations see N.J.A.C. 18:7-1.6; N.J.A.C. 18:7-              members of the combined group. 
1.8; N.J.A.C. 18:7-1.9; N.J.A.C. 18:7-1.10; N.J.A.C. 18:7-1.11; 
N.J.A.C. 18:7-1.14 and TB-108 Nexus for Corporation Busi-               For more information, see TB-86(R), Included and Excluded 
ness Tax for Privilege Periods Ending on and After July 31,             Business Entities in a Combined Group and the Minimum Tax 
2023, for more information on nexus.                                    of a Taxpayer that is a Member of a Combined Group.

The attributes and activities of a QSSS, disregarded entity, or         Foreign Sales Corporations (FSC).An FSC must com-
unitary partnership are included as part of its parent corpora-         plete this return as though no election had been made under 
tion’s attributes and activities when determining whether the           Sections 922-927 of the Internal Revenue Code. FSCs must 
corporation has nexus.
                                                                   - 3 -

complete all applicable schedules on the return. Under Sec-               Former Member of Combined Group. A taxpayer that was 
tion 5, P.L. 106-519, no corporation may elect to be an FSC               a member of a combined group filing a New Jersey combined 
after September 30, 2000.                                                 return for part of the group privilege period and subsequently 
                                                                          departs the combined group to file on a separate entity basis 
Financial Business Corporations. Corporations that qualify                must report the income for months subsequent to departing the 
as financial businesses, those that derive 75% of their gross in-         combined group on a separate return (Form CBT-100) unless 
come from the financial activities enumerated at N.J.A.C. 18:7-           the member joined a second combined group that files a New 
1.16(a)1 through (a)7, must use Form CBT-100U if it meets the             Jersey combined return. The taxpayer filing a separate return 
combined group filing requirements.                                       would not report the income on CBT-100 for the months the 
                                                                          member was part of the combined group. Likewise, a taxpayer 
Banking Corporations. A banking corporation filing as part                that joined a second combined group that files a New Jersey 
of a combined group that uses a fiscal year basis must align              combined return would only report on the second group’s 
its privilege period with the combined group. For more infor-             return the income for the months the member was part of the 
mation, see TB-91, Banking Corporations and Combined Re-                  second combined group. If determining what amount of income 
turns. The combined return must be filed electronically even              is attributable to the portions of the 12-month period are for 
if one or more members of the combined group is a banking                 the periods before and after departing a combined group, the 
corporation.                                                              taxpayer must prorate their income/losses and receipts.

Professional Corporations. Corporations formed under                      Note: For a taxpayer that is a member of a combined group 
N.J.S.A. 14A:17-1 et seq. or any similar laws of a possession                   filing a New Jersey combined return and that member 
or territory of the U.S., a state, or political subdivision thereof,            properly dissolved and received tax clearance during 
must complete Schedule PC. Examples of licensed profes-                         the group privilege period, the income and tax liabilities 
sionals include certified public accountants, architects, optom-                of that member for the part of the group privilege period 
etrists, professional engineers, land surveyors, land planners,                 the member existed prior to dissolution must be reported 
chiropractors, physical therapists, registered professional                     on the combined return.
nurses, dentists, osteopaths, physicians and surgeons, doctors 
of medicine, doctors of dentistry, podiatrists, veterinarians, and        Included and Excluded Entity Types
attorneys.                                                                Not all business entities are included in a combined group. 
                                                                          The lists below provide information on which entities are or are 
Inactive Corporations. Inactive corporations that, during the             not included. Additional information is available in TB-86(R), 
period covered by the return, did not conduct any business, did           Included and Excluded Business Entities in a Combined Group 
not have any income, receipts or expenses, and did not own                and the Minimum Tax of a Taxpayer that is a Member of a 
any assets must complete Schedule I – Certificate of Inactivity           Combined Group.
in addition to page 1, the Members and Affiliates Schedule, 
and Schedules A, A-2, A-3, and A-4. Payment for the related               Included Entity Types
minimum tax liability and the installment payment (if applicable)         • U.S. Corporations
must be submitted electronically.  
                                                                          • Foreign Corporations
Portion of a Company’s Operations That are Nonunitary                     • Casino Licensees
With This Combined Group. There are instances when a                      • Banking Corporations
portion of a member’s business operations are independent of              •
                                                                             Financial Corporations
the unitary business activity of the combined group. Only the 
income, attributes, and allocation factors related to the portion         • Limited Liability Companies (unless treated as partnerships 
of a company’s operations that are part of a unitary business               or disregarded entities for federal purposes)
of the combined group are included in the calculation of the              • Foreign Limited Liability Companies (unless treated as part-
combined group’s entire net income and allocation factor. The               nerships or disregarded entities for federal purposes)
remaining portion of a member’s business operations may                   • S Corporations and Qualified Subchapter S Subsidiaries 
be subject to tax separately from the combined group if such                that have elected to be taxed as C corporations for New 
member individually conducts business in New Jersey or with                 Jersey purposes (regardless of whether the election is un-
another combined group (if it is engaged in a unitary business              der N.J.S.A. 54:10A-4(ff) or N.J.S.A. 54:10A-5.22.d). See 
with that combined group that also conducts business in New                 TB-105 for information about electing C corporation status. 
Jersey and files a CBT-100U). 
                                                                          • Combinable Captive Insurance Companies
Note:  A combined group member with business operations                   • Professional Corporations
       that are independent of the unitary business activity              • Captive investment companies as defined in N.J.S.A. 
       of the combined group must report such income on                     54:A-4(hh) 
       Schedule X. Schedule X will be used to calculate the               • Captive regulated investment companies as defined in 
                                                                            
       New Jersey taxable net income of that separate activity 
                                                                            N.J.S.A. 54:A-4(jj)
       income that must be reported in Part III of Schedule A, 
       Section I and Section II of the CBT-100U. Include a copy           • Captive real estate investment trusts as defined in N.J.S.A. 
       of Schedule X if completed. See Schedule X instructions              54:10A-4(ii) 
       for more information.                                              • Public utilities as defined at N.J.S.A. 54:10A-4(q) that are 
                                                                            not excluded pursuant to N.J.S.A. 54:10A-4.6(k)
See “Additional Forms and Instructions” for details on obtaining          •  Any other business entities however and/or wherever in-
Schedule X.                                                                 corporated or formed that are treated as corporations for 
                                                                            federal purposes except when excluded by statute or as 
                                                                            described below
                                                                     - 4 -

Casino Licensees                                                        • Captive Insurance Companies that do not meet the defini-
Pursuant to the Casino Control Act, any business conducted                tion of a Combinable Captive Insurance Company as de-
by an individual, partnership, or corporation or any other entity,        fined in N.J.S.A. 54:10A-4(y)
or any combination thereof, holding a license in New Jersey             •  All other insurance companies that are not Combinable 
is required to file a consolidated return. A consolidated return          Captive Insurance Companies
is similar to an affiliated group combined return. See N.J.S.A. 
5:12-148. All Casino licensees are taxable members. The affili-         •  Corporations exempt from the Corporation Business Tax 
ated businesses that are unitary with the casino licensees must           under N.J.S.A. 54:10A-3
also be included when completing CBT-100U.                              • Corporations that are regulated, in whole or in part, by the 
                                                                          Federal Energy Regulatory Commission, the New Jersey 
Note: Casino licensees filing as members of a combined 
                                                                          Board of Public Utilities, or similar regulatory body of an-
      group on Form CBT-100U meet the consolidated filing 
                                                                          other state, with respect to rates charged to customers for 
      requirements of both the Corporation Business Tax Act 
                                                                          electric or gas services and water and wastewater services. 
      and Casino Control Act (N.J.S.A. 5:12-148). No other 
                                                                          However, per N.J.A.C. 18:7-21.3(f), a utility may petition the 
      additional consolidated return is required for the privi-
                                                                          Director to join as a member of a combined group.
      lege period as long as the casino licensee is included 
      as a member of the New Jersey combined group filing               •  Real estate investment trusts, investment companies, 
      the CBT-100U. Casino licensees should report their net              and regulated investment companies of which at least 50 
      gaming receipts in accordance with U.S. G.A.A.P. and                percent of the shares, by vote or value, are owned or con-
      federal tax purposes on Schedule J.                                 trolled, directly or indirectly, by a state or federally chartered 
                                                                          bank, savings bank, or savings and loan association with 
Disregarded Entities                                                      assets that do not exceed $15 billion or that otherwise do 
A business entity that is treated as a disregarded entity for             not meet the definition of a “captive” real estate investment 
federal income tax purposes is also treated as a disregarded              trusts, investment companies, or regulated investment 
entity for New Jersey Corporation Business Tax purposes pur-              companies. 
suant to N.J.S.A. 42:2C-92. Disregarded entities also include 
legal partnerships that are disregarded entities for federal            A taxpayer that has nexus with New Jersey that is excluded 
purposes. A disregarded entity is not itself a member of a              from the New Jersey combined return must file a separate 
combined group. However, the tax attributes of a disregarded            return. 
entity are reported by a member of a combined group when the 
member owns the disregarded entity. The attributes of a disre-
garded entity owned by a member of a combined group are in-             When to File
cluded in the income and allocation factor of that member and           2023 Accounting Periods and Due Dates
the combined group. In making a determination of which mem-             The 2023 Corporation Business Tax return should only be 
bers are included in a water’s-edge combined group pursuant             used for accounting periods ending on and after July 31, 2023, 
to N.J.S.A. 54:10A-4.11, the disregarded entity’s attributes            through June 30, 2024. 
shall be used by the member that owns the disregarded entity. 
A disregarded entity is not subject to the $2,000 minimum tax           New Jersey Corporation Business Tax returns and payments, 
as a member of a combined group because a disregarded                   except estimated payments, are due the 15th day of the month 
entity is not a member of the combined group. However, if a             following the month the federal corporate income tax return is 
disregarded entity is part of a unitary business of a combined          originally due. If the due date falls on a weekend or a legal hol-
group, the owner of the disregarded entity will be a member of          iday, the return and payment are due on the following business 
the combined group and must be included as part of the com-             day. Use the following schedule for 2023 CBT-100U forms and 
bined group except as otherwise excluded.                               payments:

Entities that File as Partnerships for Federal Purposes                 If accounting   July 31,  Aug. 31,  Sept. 30,  Oct. 31, Nov. 30,  Dec. 31, 
Partnerships, limited partnerships, or limited liability compa-         period ends on: 2023     2023      2023     2023        2023     2023
                                                                        Due date for    Dec. 15,  Jan. 15,  Feb. 15,  Mar. 15,  Apr. 15, May 15, 
nies treated as partnerships for federal purposes are business          filing is:      2023     2024      2024     2024        2024     2024
entities that can be unitary with a combined group. However,            If accounting   Jan. 31, Feb. 28,  Mar. 31, Apr. 30,    May 31,  June 30, 
these entities are not members of a combined group for New              period ends on: 2024     2024      2024     2024        2024     2024
Jersey Corporation Business Tax purposes. Their income                  Due date for    June 15,  July 15, Aug. 15,  Sept. 15,  Oct. 15, Nov. 15, 
                                                                        filing is:      2024     2024      2024     2024        2024     2024
flows through to the corporate partners that are members of 
the combined group. Partnerships, limited partnerships, and             A New Jersey combined return must be filed for the account-
limited liability companies that are treated as partnerships for        ing period (calendar or fiscal, as applicable) of the managerial 
federal purposes are not subject to the $2,000 minimum tax as           member of the combined group, or part of the period, begin-
members of a combined group because they are not members                ning on the date the combined group acquired a taxable status 
of the combined group. However, Form NJ-CBT-1065 must still             in New Jersey regardless of whether it had any assets or con-
be filed.                                                               ducted any business activities. All accounting periods must end 
                                                                        on the last day of the month even if the managerial member 
Excluded Entity Types                                                   uses the same 52-53 week accounting year that is used for 
•  S Corporations and Qualified Subchapter S Subsidiaries               federal income tax purposes. The Division is aware that tax-
   that do not elect inclusion in the combined group under              payers cannot properly input dates for 52-53 week accounting 
   N.J.S.A. 54:10A-4(ff) or did not elect to be taxed as a C            years. In this case, taxpayers must enter the last day of the 
   corporation under N.J.S.A. 54:10A-5.22.d. See TB-105 for             month. Attach a rider showing the correct accounting period.
   information about electing C corporation status

                                                                   - 5 -

The combined group’s reporting period for the New Jersey                applicable to the current accounting year but on the basis of 
combined return is the same tax period that the managerial              the facts shown and the law applicable to the preceding ac-
member uses for federal purposes. Generally, this is the same           counting year, the combined group may be liable for a penalty 
privilege period as the federal consolidated return since in            of 5% per month or part of a month not to exceed 25% of the 
most instances the managerial member is one of the members              amount of underpayment from the original due date to the date 
included in the federal consolidated return. Any members that           of actual payment.
operate under a different return period must file a short-period 
return to align their privilege periods with the group’s privilege      Late Filing Penalty. 5% per month or part of a month on the 
period. This is done on a separate return. Affected mem-                amount of underpayment not to exceed 25% of that underpay-
bers must also fiscalize or annualize their income and attri-           ment, except if no return has been filed within 30 days of the 
butes reported as part of the combined group. See N.J.S.A.              date on which the first notice of delinquency in filing the return 
54:10A-4.10.c and N.J.S.A. 54:10A-4.8.b.                                was sent, the penalty will accrue at 5% per month or part of a 
                                                                        month of the total tax liability not to exceed 25% of such tax 
Extension of Time to File                                               liability. Also, a penalty of $100 for each month the return is de-
The Tentative Return and Application for Extension of Time to           linquent may be imposed.
File, Form CBT-200-T, must be filed and paid electronically. 
You can also check with your software provider to see if the            Late Payment Penalty. 5% of the balance of tax due paid after 
software you use supports filing of extensions.                         the due date for filing the return may be imposed.

Combined groups filing Form CBT-100U will automatically re-             Interest. 3% above the average predominant prime rate for 
ceive a six-month extension only if they have paid at least 90%         every month or part of a month the tax is unpaid, compounded 
of the tax liability and timely filed Form CBT-200-T.                   annually. At the end of each calendar year, any tax, penalties, 
                                                                        and interest remaining due will become part of the balance on 
An extension of time is granted only to file the New Jersey             which interest will be charged. The interest rates assessed by 
combined return. There is no extension of time to pay the tax           the Division of Taxation are published online.
due. The Division will notify you only if we deny your extension 
request, but not until after you actually file your return. Pen-        Note: The average predominant prime rate is the rate as 
alties and interest are imposed whenever tax is paid after the                determined by the Board of Governors of the Federal 
original due date.                                                            Reserve System, quoted by commercial banks to large 
                                                                              businesses on December 1st of the calendar year im-
Note:  An extension payment must include any applicable pro-                  mediately preceding the calendar year in which payment 
       fessional corporation (PC) fees and/or installment pay-                was due or as redetermined by the Director in accor-
       ments. See the online application for more information.                dance with N.J.S.A. 54:48-2.

                                                                        Collection Fees. In addition, if the tax bill is sent to our col-
                                                                        lection agency, a referral cost recovery fee of 11% of any tax, 
How to Pay                                                              penalties, and interest due will be added to the liability in accor-
The managerial member acts as the agent on behalf of the 
combined group and is responsible for making payments on                dance with N.J.S.A. 54:49-12.3. If a certificate of debt is issued 
behalf of the group.                                                    for the outstanding liability, a fee for the cost of collection of the 
                                                                        tax may also be imposed.
To make payments electronically, go to the Division of Taxa-
tion’s website. Managerial members who do not have access               Underpayment of Estimated Tax. To calculate the amount of 
to the internet can call the Division’s Customer Service Center         interest for the underpayment of estimated tax, complete either 
at (609) 292-6400.                                                      Form CBT-160-A or Form CBT-160-B. If the combined group 
                                                                        qualifies for any of the exceptions to the imposition of interest 
If registered, payments can also be made by Electronic Funds            for any of the installment payments, Part II must be completed 
Transfer (EFT). For information or to enroll in the program, visit      and submitted with the return as evidence of such exception. 
the Division of Revenue and Enterprise Services’ website, call 
(609) 292-9292, fax (609) 984-6681, or write to NJ Division of          Civil Fraud. If any part of an assessment is due to civil fraud, 
Revenue and Enterprise Services, EFT Section, PO Box 191,               there shall be added to the tax an amount equal to 50% of the 
Trenton, NJ 08646-0191.                                                 assessment in accordance with N.J.S.A. 54:49-9.1.

Note:  Managerial members that are required to remit pay-               Transacting Business Without a Certificate of Authority. In 
       ments by EFT can satisfy the EFT requirement by mak-             addition to any other liabilities imposed by law, a foreign corpo-
       ing e-check or credit card payments.                             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 
                                                                        than 5 years prior thereto, in which it shall have transacted 
Penalties and Interest                                                  business in this State without a certificate of authority. N.J.S.A. 
Each taxable member is jointly and severally liable for any             14A:13-11(3).
penalties and interest assessed. See N.J.S.A. 54:10A-4.8 
and N.J.S.A. 54:10A-4.10.
Insufficiency Penalty. If the amount paid with the Tentative            Amended Returns
Return, Form CBT-200-T, is less than 90% of the tax liability           To amend CBT-100U returns, use the CBT-100U form for the 
computed on Form CBT-100U, or in the case of a combined                 appropriate tax year. 
group with a preceding return covering a full 12-month period 
that is less than the amount of the tax computed at the rates 

                                                                   - 6 -

All CBT-100U amended returns must be submitted                                  P.L. 2023, c.96, included several changes impact-
electronically.                                                                 ing combined groups for privilege periods ending 
                                                                                on and after July 31, 2023, and in future privilege 
Final Determination of Net Income by Federal Government.                        periods. These changes may impact taxpayers’ 
Any change or correction made by the Internal Revenue Ser-
                                                                       decisions on their combined return filing method option. As a 
vice to the federal taxable income must be reported to the Divi-
                                                                       result of the law change, the Division of Taxation is providing 
sion within 90 days. 
                                                                       a one-time exception to prospectively allow a change to the 
                                                                       combined group’s filing methods. If a combined group 
                                                                       chooses to select a different filing method on the 2023 CBT-
Page 1 Line-by-Line Instructions                                       100U, the method selected on a prior year CBT-100U will not 
Enter the unitary ID number (this is the ID assigned to the man-       be binding for subsequent years, and the method selected 
agerial member that begins with the letters “NU”), unitary group       on the 2023 CBT-100U, will be considered the start of the 
name, and complete mailing address in the space provided on            binding period for the purposes of N.J.S.A. 54:10A-4.11(b). 
the return. Also provide the managerial member’s FEIN, name, 
complete mailing address, and contact information.                     Check the box to indicate the entire combined group is claim-
                                                                       ing P.L. 86-272. 
Check the box if this is an amended return.
                                                                       Note:            For the purposes of N.J.S.A. 54:10A-4.7.e, 
If filing an amended return, enter the applicable code in the                           the group is one taxpayer. So although a 
boxes provided. If using code 10, “Other,” enter the reason in                          member may have P.L. 86-272 protection for 
the lines provided. If more space is needed, include a rider.                a single member, the combined group will not have P.L. 
                                                                             86-272 protection if one of the other members exceeds 
1.   Change in allocation factor
                                                                             the protections of P.L. 86-272 or if one of the other 
2.   IRS audit
                                                                             members has activities in New Jersey that are not pro-
3.   Amended federal 1120 filed
                                                                             tected by P.L. 86-272.
4.   To take credit for payments/payments made by a 
     partnership                                                       If claiming P.L. 86-272, Schedule N, Nexus – Immune Activity 
5.   Adjustments to ENI                                                Declaration and the Nexus Questionnaire, must be completed 
6.   To change credit request to refund request or refund              for each member. In addition the combined group must com-
     request to credit request                                         plete page 1, the Members and Affiliates Schedule, and Sched-
7.   Change in filing period                                           ules A, A-2, A-3, and A-4. Payment for the related minimum 
8.   Change in tax credits reported                                    tax liability and the installment payment (if applicable) must be 
9.   Adding or subtracting a combined return member                    submitted. P.L. 86-272 filers are not subject to the surtax im-
10.  Other                                                             posed by N.J.S.A. 54:10A-5.41.

Note:  The managerial member cannot amend Form CBT-100U                Line 1 – Total Tax of Combined Group
     to remove an S corporation from the group if the the              Enter the greater of line 4a or line 4b, from the Group Com-
     only reason is so that the S corporation can file Form            bined Total column of Schedule A, Section II, Part III.
     CBT-100S. Nor can a return be amended to change the 
     filing method (i.e., water’s-edge group, world-wide or            Line 2 – Total Tax Credits Used by Combined Group
     affiliated group election).                                       Enter amount from the Group Combined column of Schedule 
                                                                       A-3, Part I, line 30.
Check the box to indicate which filing method is being used. 
A New Jersey combined return will default to a water’s-edge            Line 3 – Total Combined Group CBT Tax Liability
group, unless the managerial member makes a world-wide or              Subtract line 2 from line 1.
affiliated group election (N.J.S.A. 54:10A-4.11). The election 
must be made on a timely filed original combined return in the         Line 4 – Total Surtax on Taxable Net Income of Combined 
privilege period it becomes effective. The world-wide group            Group Members
election and affiliated group election cannot be made at the           Enter amount from the Group Combined Total column of 
same time, and the managerial member can only choose one               Schedule A, Section II, Part III, line 7.
election. The elections are binding for the privilege period of 
the election plus five subsequent privilege periods. If filing on      A taxpayer should not calculate any surtax if their tax year begins 
an affiliated group or world-wide basis, indicate the number of        on and after January 1, 2024.
years into the election period of the combined group.
                                                                       Line 5 – Total Combined Group Tax Due
                                                                       Add line 3 and line 4.

                                                                       Line 6a – Number of Entities with Nexus 
                                                                       Enter the number of entities included in this return that have 
                                                                       nexus with New Jersey.

                                                                       Line 6b – Installment Payment Threshold 
                                                                       Multiply line 6a by $1,500.

                                                                       Line 6c – Installment Payments
                                                                                For tax years ending on and after July 31, 2023, the 
                                                                                threshold for making installment payments is the 
                                                                  - 7 -

aggregate of $1,500 for each member included on the com-                Note:  Unitary partnerships are exempt from paying the portion 
bined return.                                                               of the partnership withholding tax (N.J.S.A. 54:10A-
                                                                            15.11) that is directly or indirectly (in the case of a 
The managerial member is required to make installment pay-                  tiered partnership) attributable to the member of the 
ments of estimated tax on behalf of the combined group. The                 combined group that is a corporate partner in the unitary 
requirement for making these payments is:                                   partnership. 

•  If the 2023 Total Tax Liability is greater than the ag-              Line 11a – Total Refundable Tax Credits Refunded to 
  gregate of $1,500 for each member included on the                     Members
  combined return, the managerial member must make                      Enter the amount from the Group Combined Total column of 
  installment payments toward 2024. These payments are to               Schedule A-3, Part II, line 6. This amount will be refunded to 
  be made electronically on Form CBT-150 and are due on                 the managerial member, which is responsible for distributing to 
  or before the 15th day of the 4th, 6th, 9th, and 12th months          the appropriate group members.
  of the tax year. If the combined group has gross receipts 
  greater than or equal to $50,000,000 must make installment            Line 11b – Total Refundable Tax Credits Applied to Group
  payments on the 15th day of the 4th, 6th, and 12th months             Enter the amount from the Group Combined Total column of 
  of the tax year. Information on making these payments can             Schedule A-3, Part II, line 7. 
  be found on the Division’s website. 
                                                                        Line 12 – Total Payments and Credits
•  If the 2023 Total Tax Liability does not exceed the ag-              Add lines 9, 10, and 11b and enter the result. 
  gregate of $1,500 for each member included on the 
  combined return, installment payments may be made as                  Amount Due or Overpayment – Lines 13–18
  indicated above OR in lieu of making installment payments,            Compare lines 12 and 8.
  the managerial member may make a payment of 50% of the 
  2023 total tax liability. For a combined group that qualifies         • If line 12 is less than line 8, you have a balance due. Com-
  and wants to take advantage of this option, enter on line               plete lines 13, 14, and 15.
  6c, 50% of the amount on line 5. This will become part of             • If line 12 is more than line 8, you have an overpayment. 
  the payment to be made with the 2023 return and install-                Complete line 14 (if applicable) and lines 16 through 18.
  ment payments will not be required. This payment should 
  be claimed as a credit when filing the 2024 return. There             Line 13 – Balance of Tax Due 
  are rare instances where tax credits can take the combined            Subtract line 12 from line 8 and enter the difference. 
  group’s total tax liability to $1,500 or less. The only way a 
  combined group could use this estimated payment method                Line 14 – Penalty and Interest Due
  is if it claims such tax credit(s).                                   Include any penalties and interest. See “Penalties and Interest” 
                                                                        for information.
Line 7 – Professional Corporation Fees
Enter amount from the Group Combined Total column of                    Note:  If the group has an overpayment or no tax liability and 
Schedule PC, line 9.                                                        has calculated penalties and interest due, such amounts 
                                                                            must be added to the balance due line or subtracted 
Line 8 – Total Tax and Professional Corporation Fees                        from the overpayment. 
Enter the total of lines 5, 6c, and 7.
                                                                        Line 15 – Total Balance Due
Line 9 – Payments and Credits                                           Enter the total of line 13 and line 14.
Any payment not made under the unitary ID number, which 
begins with the letters “NU,” must be transferred. Visit the Divi-      Line 16 – Amount Overpaid
sion’s website for more information.                                    Subtract the sum of line 8 and line 14 (if applicable) from the 
                                                                        amount on line 12. 
Include on this line:
• Installment tax payments made for 2023;                               Line 17 – Refund
                                                                        Enter the amount of the overpayment to be refunded. This 
• Amounts paid with tentative return (form CBT-200-T);                  amount will be refunded to the managerial member.
• Any overpayment from the preceding tax return that the 
  taxpayer elected to have credited to the current year’s tax.          Line 18 – Credit to 2024
                                                                        Enter the amount of the overpayment that you want to credit to 
  Do not include any amount of the overpayment that the tax-
                                                                        the 2024 combined group tax liability. 
  payer elected to have refunded.
Note:  Professional corporation installment payments from the           Signature 
       prior year may not be used to offset any current year tax        Each return must be signed by an officer of the managerial 
       liability and are not eligible for refund.                       member who is authorized to attest to the truth of the state-
                                                                        ments contained therein and to acknowledge that they un-
Line 10 – Payments Made by Partnerships                                 derstand they are required to include copies of their federal 
Include the total payments made by partnerships on behalf               return(s), forms, and schedules. The fact that an individual’s 
of the members. Total the amounts reported in column 6 of               name is signed on the return shall be prima facie evidence that 
Schedule P-1, Part I for all members. Submit copies of the              such individual is authorized to sign the return on behalf of all 
NJK-1s or K-1s (as applicable) reflecting payments made by              of the members of the combined group. 
each partnership entity. 
                                                                        Tax preparers who fail to sign the return or provide their 
                                                                        assigned tax identification number shall be liable for a $25 
                                                                   - 8 -

penalty for each such failure. If the tax preparer is not self-em-      Note:  If filing under the affiliated group election, the New Jer-
ployed, the name of the tax preparer’s employer and the                       sey combined group must match the members reported 
employer’s tax identification number should also be provided.                 in Section A.
In the case of a corporation in liquidation or in the hands of a 
receiver or trustee, certification shall be made by the person          Section A – Federal Consolidated Group. List the entities in-
responsible for the conduct of the affairs of such corporation.         cluded in the federal consolidated return(s). List the corporation 
                                                                        name, federal employer identification number (FEIN), and the 
                                                                        amount on line 28 of the federal Form 1120 or the appropriate 
Non-U.S. Corporations and Other 
                                                                        line of any other federal corporate return that was filed. The 
Corporations Without a Distinct                                         entities listed must match the entities reported on the federal 
Federal ID Number                                                       Form 851. 
There are situations where a corporation does not have a 
federal ID number or does not have its own separate distinct            Note: Cannabis licensees must use the amounts reported for 
federal ID number. When entering the ID number for these                      federal purposes. Do not include any New Jersey ad-
corporations, enter 999-999-991, 999-999-992, 999-999-993,                    justments to cannabis licensee income when completing 
etc., using consecutive numbers for each additional corporation               the Reconciliation with Consolidated Group. 
included in the return. If the corporation has its own distinct 
New Jersey State ID number, enter that number instead.                  Section B – Members Included in the New Jersey Com-
                                                                        bined Group Not Reported in Section A. List any members 
                                                                        included in the New Jersey combined group (CBT-100U) not 
Members and Affiliates Schedule
                                                                        included in Section A. Any member of the New Jersey CBT-
Part I and II                                                           100U that is not reported in Section A (federal consolidated 
All members that were part of the group for any part of the tax 
                                                                        group) must be reported in this section.
period must be included on this schedule. For each member, 
enter the corporation name, federal employer identification 
                                                                        Section C – Members Reported in Section A Not Included 
number (FEIN), and, if applicable, enter an Entity Type code                                                    List any entity from 
                                                                        in the New Jersey Combined Group. 
and check any box(es) that apply to the member.                         Section A that is not part of the New Jersey combined group. 
                                                                        Any member of the federal consolidated group that is reported 
If a member is an owner of a disregarded entity, attach a rider 
                                                                        in Section A and is not a member of the CBT-100U must be re-
detailing ownership. 
                                                                        ported in Section C. Members in this section will not be part 
If a member is inactive, they must complete Schedule I and              of the New Jersey combined return.
include it with the return. 
                                                                        Section D – Adjustments to Federal Taxable Income. Any 
For entity types listed below, enter the corresponding letter.          adjustment to federal taxable income must be reported in this 
Otherwise, leave blank.                                                 section. Include a rider detailing each adjustment and the rea-
                                                                        son for the adjustment.
Entity Types
H   –   Holding Company
B   –   Banking Corporation                                             Schedule A – Members/Totals
F  –    Financial Corporation                                                   Starting for Tax Year 2023, Schedule A has been 
CC   –  Combinable captive insurance company                                    split into two parts. The managerial member must 
CT  –   Captive real estate investment trust                                    complete Schedule A, Section I, Parts I–III for each 
CI  –   Captive investment company                                      member. Schedule A , Section II, Parts I–III must be completed 
CR  –   Captive regulated investment company                            with the total amounts of all members reported. The lines in 
S   –   Federal S Corporation (1120-S filer)                            Schedule A, Section I and Section II are the same. Some lines 
Q   –   Federal QSSS (1120-S filer)                                     will apply only to the members section or only to the totals 
L  –    Casino Licensee                                                 section.
M   –   Cannabis Licensee
P  –    Public Utility                                                  Intercompany Eliminations
                                                                        On Schedule A, Section II, column (a), enter the total amounts 
Part III and IV                                                         of all members prior to intercompany eliminations and adjust-
These sections of the schedule are used to add and remove               ments. In column (b), enter the intercompany eliminations and 
members from the group. Any members included on this                    adjustments. In column (c), enter the total amounts for the 
schedule that were not included on the last CBT-100U that was           combined group after intercompany eliminations and adjust-
filed will be added to the group.                                       ments. An item of income that was excluded under another 
                                                                        provision cannot be included in intercompany eliminations.
Part V 
This section of the schedule is used to report members that             Income of the Combined Group
have been excluded from the combined group.                             The relevant portions of N.J.S.A. 54:10A-4.6 require the in-
                                                                        come of the members derived from the unitary business of 
Part VI                                                                 the combined group to include what was reported for federal 
Any differences between members of the consolidated group               purposes (federal taxable income before federal net operating 
and members on the New Jersey combined return must be                   losses and federal special deductions) modified for New Jer-
reconciled in this section of this schedule. Furthermore, differ-       sey modifications (additions and subtractions) required by the 
ences between federal taxable income and taxable income/                Corporation Business Tax Act. See N.J.S.A. 54:10A-4(k). For a 
(loss) of combined group as reported on Schedule A, Section             member of the combined group that is a non-U.S. corporation, 
II, Part II, line 1(c), column c must be reconciled here.
                                                                   - 9 -

N.J.S.A. 54:10A-4.6.b requires all of the income be included                 excluded from Entire Net Income. This is true even for 
even if the entity did not file a federal return. In instances               the foreign corporation member that had the underlying 
where the other members of the combined group filed a federal                income which generated the GILTI. Once the underlying 
form 5471 with the IRS reporting the non-U.S. members in-                    income is excluded as a result of the statutes, there is 
come, the form 5471 may be used if the non-U.S. member did                   no stream of income to eliminate the GILTI against.
not file Form 1120-F. However, the copy of the Form 5471 that 
was filed with the federal government must be included with             Worldwide Groups
the combined return. The member’s income and tax attribute              All members must include all of their worldwide income. Mem-
data from Form 5471 must be entered in Part I of Schedule A             bers that are non-U.S. corporations must include their income 
in that member’s column as though the taxpayer filed a fed-             regardless of the terms of a tax treaty applicable to the mem-
eral return. If a non-U.S. corporation did not file federal Form        ber. Members that are Non-U.S. corporations are entitled to the 
1120-F or was not reported on federal Form 5471, it must                same deductions that members that are U.S. corporations are 
complete an 1120-F reporting its income and tax attributes as           allowed for federal purposes, to the extent such deductions are 
though the entity filed a federal return. For New Jersey pur-           allowed under the Corporation Business Tax Act. 
poses, on Schedule A, the non-U.S. corporation will make the 
additions and deductions. All data must match the federal               Note:  GILTI may be eliminated as long as the underlying in-
return that was filed or that would have been filed.                         come is included in Entire Net Income.

Note: Members that only use I.F.R.S. as their method of ac-             Federal Consolidated Return Principles 
      counting can use I.F.R.S. when reporting their income;            Combined returns are not necessarily the same as a consoli-
      however, the member must include a rider noting the               dated return, although they are similar. The principles set forth 
      potential differences, if any, from the rest of the group.        in the Treasury regulations promulgated under Section 1502 
                                                                        of the Internal Revenue Code generally apply to the extent 
Water’s-Edge and Affiliated Group members that were                     consistent with the New Jersey Corporation Business Tax Act 
formed in a foreign nation with a tax treaty with the U.S.              and the unitary business principle to a combined group filling 
Members that were formed in a foreign nation with a compre-             a New Jersey combined return. See N.J.S.A. 54:10A-4.6(h). 
hensive tax treaty with the United States do not include income         However, for purposes of the New Jersey Corporation Busi-
or losses excluded or exempted from federal taxable income              ness Tax Act, the starting point for taxable income is entire 
under the terms of the treaty in their New Jersey entire net in-        net income before net operating losses and special deduc-
come. However, no other deduction, exclusion, or elimination is         tions with several modifications for additions and deductions. 
permitted for the treaty excluded or exempted income or loss.           See N.J.S.A. 54:10A-4.6.e; N.J.S.A. 54:10A-4(k); N.J.S.A. 
The combined group must keep track of the income, deduc-                54:10A-4(bb); and MCI Communication Services, Inc. v. Direc-
tions, intercompany transactions, losses, and other attributes          tor Division of Taxation, Docket No. 013905-2010, (Tax Court 
of each member to ensure such treaty protected items are not            of New Jersey 2015); affirmed 2018 N.J. Super. Unpub. LEXIS 
included on the Schedule A, J, S, P-1, R, X, Form 500, Form             1401; cert. denied 195 A.3d 528 (October 18, 2018). 
306, and any other form/schedule.
                                                                        Note:  If the members of the combined group were required 
A Water’s-Edge or Affiliated combined group composed of the                  to reduce their tax attributes for federal purposes as 
members reporting GILTI for federal purposes cannot eliminate                a result of a discharge of indebtedness, the members 
the GILTI for New Jersey purposes if the underlying income                   must also do so for New Jersey purposes in the same 
that generated the GILTI was excluded from Entire Net Income.                manner.

Water’s-Edge and Affiliated Group members that were                     For the purposes of applying I.R.C. § 163(j) and N.J.S.A. 
formed in a foreign nation and effectively connected                    54:10A-4(k)(2)(K), the members included in a New Jersey 
income                                                                  combined return will be treated in the same manner as though 
If the member files a federal tax return, only include the mem-         they filed a single federal consolidated return. This is true re-
ber’s effectively connected income or loss reported for federal         gardless of whether the members of the New Jersey combined 
purposes, as modified by the provisions of the Corporation              return are on one federal consolidated return. See TB-87, 
Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et                 Guidance for Corporation Business Tax Filers and the IRC § 
seq.). If the member does not file a federal tax return but has         163(j) Limitation, for more information.
United States source income or loss, only include that United 
States source income or loss, as modified by the provisions             Note:  For the purposes of I.R.C. § 163(j), New Jersey follows 
of the Corporation Business Tax Act (1945), P.L.1945, c.162                  the Coronavirus Aid, Relief, and Economic Security 
(C.54:10A-1 et seq.), to the extent that United States source in-            (CARES) Act.
come or loss would otherwise be effectively connected income 
or loss if the member had been conducting a business that is            To the extent consistent with the Corporation Business Tax Act 
effectively connected to the United States. For the purpose             (1945), the federal rules and regulations governing consoli-
of determining what income or loss to include in entire net in-         dated return net operating losses and net operating loss car-
come, the member must take into account only the items of ex-           ryovers apply to the New Jersey net operating loss carryover 
pense and allocation factor receipts attributable to that income        provisions under N.J.S.A. 54:10A-4.6(h) as though the com-
or loss. Do not include expenses and receipts attributable to           bined group filed a federal consolidated return, regardless of 
excluded income or losses.                                              how the members of the combined group filed for federal pur-
                                                                        poses. See N.J.S.A. 54:10A-4.6(m) and N.J.S.A. 54:10A-4.5.
Note:  A Water’s-Edge or Affiliated combined groups composed 
      of the members reporting GILTI for federal purposes               Intercompany Dividend Elimination
      cannot eliminate the GILTI for New Jersey purposes                N.J.S.A. 54:10A-4.6 allows a 100% intercompany dividend 
      if the underlying income that generated the GILTI was             elimination for dividends and deemed dividends between 
                                                                  - 10 -

members of the combined group included on the same New                               The managerial member must include a copy of 
Jersey combined return. This elimination is a pre-allocation                         the federal returns and any forms or schedules 
elimination that occurs in column (b) of Schedule A, Section                         that accompanied the returns that were filed with 
II, Part I or on Schedule A, Section II, Part II (above line 20).                    the Internal Revenue Service. Failure to include 
Dividends and deemed dividends from subsidiaries that are not 
                                                                         the forms and schedules will result in an incomplete 
included as members of the combined group are not eligible                                                                 and the tax-
                                                                         New Jersey Corporation Business Tax return 
for this elimination, but may be eligible for the dividend exclu-        payer may be assessed penalties and interest for noncompli-
sion in Schedule R if those dividends and deemed dividends               ance. See Technical Bulletin, TB-98, Federal Return and the 
received from the excluded subsidiaries are part of the unitary          Forms and Schedules to Include with the Corporation Busi-
business of the combined group. An item of income that was               ness Tax Return.
excluded  under another provision cannot be included in inter-
company eliminations.
                                                                         Part II – Modifications to Entire Net Income
Note:  If the underlying income of the foreign corporation that          Additions  
     generated the GILTI was excluded from entire net in-                Line 1a – Taxable income/(loss)
     come, the GILTI is not eliminated as there is no corre-             Enter the amount from Schedule A, Part I, line 28.
     sponding amount to eliminate it against.
                                                                         Line 1b – Separate activity income
Part I – Computation of Entire Net Income                                Enter the amount of entire net income that is not derived from 
         Cannabis Licensees. The income of a taxpayer,                   the unitary business of the combined group. Also enter this 
         that is registered as a cannabis licensee with New              amount on Schedule X, Part I, line 1. See “Portion of a Com-
         Jersey, shall be determined without regard to 26                pany’s Operations That are Nonunitary With This Combined 
U.S.C. s.280E. However, Schedule A, Part I must be com-                  Group” for more information.
pleted using the amounts that were reported for federal pur-
poses. The taxpayer will calculate the expenditures that would           Line 1c – Taxable income/(loss) of combined group
have been eligible to be claimed as a federal income tax de-             Subtract line 1b from line 1a and enter the result. The amount 
duction (but that were disallowed for federal purposes because           in Schedule A, Section II, column (c) represents the entire net 
cannabis is a controlled substance under federal law) and in-            income attributable to the unitary business of the combined 
clude those amounts in New Jersey modifications to entire net            group before New Jersey additions and subtractions. 
income in Part II. The taxpayer must attach a rider detailing the 
math and the deductions being claimed.                                   Note:  The amount reported on Schedule A, Section II, line 1c, 
                                                                              column (c) must match the amount reported on Mem-
Line 4 – Dividends and Other Inclusions                                       bers and Affiliates Schedule, Part VI, line 9. 
         Beginning with Tax Year 2023, GILTI is treated as a 
         dividend. Include a copy of federal Form 8992. The              Line 2 – Income of non-U.S. group members (world-wide 
         I.R.C. § 250 deductions for GILTI and FDII are no               filers only)
longer allowed.                                                          If filing on a world-wide basis, enter the income attributable to 
                                                                         the unitary business of the combined group of the members 
Line 5 – Interest                                                        that were organized in a foreign nation, if such income was not 
Include a copy of federal Form 8916A if it was completed.                included on line 1c. See Income of the Combined Group for 
                                                                         more information. 
Line 8 and Line 9
Include a rider or schedules showing the same information                Line 3 – Other federally exempt income
shown on federal Form 1120, Schedule D and/or Form 4797.                 All income that was exempt for federal income tax purposes 
Gains and losses resulting from the disposition of property              under any provision of the Internal Revenue Code or any fed-
where an I.R.C. § 179 expense deduction was passed through               eral law must be added back. If such amounts were not added 
to S corporation shareholders are not reported on federal Form           back on any other line of Schedule A, include such amounts 
4797, and should be reported on Schedule A, Part I, line 10.             on line 3 and include a rider detailing such amounts and 
If a sale of shares of stock or partnership interest resulted in a       such provisions of the Internal Revenue Code. See N.J.S.A. 
taxable transfer of a controlling interest in certain commercial         54:10A-4(k)(2)(A).
real property under N.J.S.A. 54:15C-1, indicate so on a rider.
                                                                         Note:  Items of income excluded from federal taxable net in-
Line 18 – Interest                                                            come pursuant to the specific terms of a treaty do not 
Include a copy of federal Form 8916A and/or federal                           have to be added back to entire net income. Include a 
Form 8990 if completed.                                                       copy of federal Form 8833 that was included with the 
                                                                              federal return or a pro forma Form 8833 if none was 
Line 25 – Energy efficient commercial buildings deduction                     filed for the member.
Include a copy of federal Form 7205 if completed.
                                                                         Line 4 – Interest on federal, state, municipal, and other 
Line 28 – Taxable income before federal net operating loss               obligations
deductions and federal special deductions                                Include any interest income that was not taxable for federal in-
The amount on line 28 must agree with line 28, page 1, of the            come tax purposes and was not included in taxable net income 
federal Form 1120 or the appropriate line of any other federal           reported on line 1c.
corporate return that was filed or would have been filed by the 
member.                                                                  Line 5 – New Jersey State and other states taxes
                                                                         Enter the total taxes paid or accrued to the United States, a 
                                                                         possession or territory of the United States, a state, a political 

                                                                   - 11 -

subdivision thereof, or the District of Columbia, or to any for-        I.B.F. deduction under N.J.S.A. 54:10A-4(k)(4). See N.J.S.A. 
eign country, state, province, territory or subdivisions thereof,       54:10A-4.6(o).
on or measured by profits or income, business presence or 
business activity, including any foreign withholding tax taken as             For privilege periods ending on and after July 31, 
a deduction in Part I of Schedule A and reflected in line 28. For             2023, the I.B.F. deduction is a pre-allocation deduc-
additional information, see TB-80, Addback of Other States’                   tion. In addition, the historic ordering (preventing the 
Taxes, and the Schedule H instructions.                                 I.B.F. deduction from increasing net operating losses) is no lon-
                                                                        ger applicable. However, the change in historic ordering is pro-
Line 6 – Depreciation modification being added to income                spective only. Taxpayers cannot adjust NOLs and PNOLs from 
Enter the depreciation and other adjustments being added                privilege periods ending before July 31, 2023 using the law 
to income if Schedule S, line 15, is a positive number. See             change from P.L. 2023, c.96. 
Schedule S instructions for more information.
                                                                        Note: This deduction is taken in the Group Combined Total 
Line 7 – Other additions                                                      column of Schedule A, Section II, Part II. Income that 
Report any other additions to income for which a place has not                was eliminated or excluded above line 12 is not eligible 
been provided somewhere else on the return. This includes,                    for the I.B.F deduction.
but is not limited to: 
                                                                        Line 13 – I.R.C. § 78 Gross-Up 
• Gross income, less deductions and expenses in connection              The portion of any I.R.C. § 78 gross-up included in dividend 
  with such income, from sources outside the United States,             income on line 4 of Part I, that is not excluded/deducted from 
  not included in federal taxable income;                               taxable net income elsewhere may be treated as a deduction. 
• I.R.C. § 199A amounts that were deducted for federal                  Include a copy of 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. 
  payments for which an amount of credit is claimed pursuant 
  to section 1 of P.L.1993, c.175 (C.54:10A-5.24) unless those          Line 14a – Nonoperational Activity
  research and experimental expenditures are also used to               Enter the net effect of the elimination of nonoperational activity 
  compute a federal credit claimed pursuant to I.R.C. § 41.             from Schedule O, Part I, line 36. Schedule O is available on 
  Note: See Notice: Timing of New Jersey Qualified Research             the Division’s website. 
  Expenditures.  
                                                                        Note: Members cannot net nonoperational losses against op-
Include separate riders explaining any items reported.                        erational income.

Line 8 – Taxable income/(loss) with additions                           Line 14b – Nonunitary Partnership Income
Add line 1c through line 7 and enter the total.                         Enter the net effect of the elimination of nonunitary partnership 
                                                                        income and expenses from Schedule P-1, Part II, line 4 in col-
Deductions                                                              umn (c) of Schedule A, Section I, Part II.
Line 9 – Dividend Exclusion 
Enter the amount from Schedule R, line 9 in column (c) of               Note: Members cannot net nonunitary partnership losses 
Schedule A, Section II, Part II.                                              against operational income.

Line 10 – Depreciation modification being subtracted from               Line 15 – Net Deferred Tax Liability Deduction
income                                                                        The net deferred tax liability (NDTL) deduction can 
Enter the depreciation and other adjustments being subtracted                 be taken for privilege periods beginning on and after 
from income if Schedule S, line 15 is a negative number. Enter                January 1, 2023, by entities that submitted Form 
the amount on line 10 as a positive number. See Schedule S              DT-1 (New Jersey Corporation Business Tax Statement of Net 
instructions for more information.                                      Deferred Tax Liability Deduction) on or before July 1, 2020. 

Line 11 – Previously Taxed Dividends and Inclusions                     Eligible applicants enter one percent of the deduction amount 
If line 1 includes any dividends or GILTI that were previously          calculated on line 6 of Form DT-1. DO NOT    use the amount 
taxed for New Jersey purposes, complete Schedule PT and                 from line 7 of Form DT-1. Taxpayers claiming a NDTL deduc-
Schedule R to determine the amount that can be deducted.                tion must include a copy of Form DT-1 that was filed. For more 
Include only dividends or GILTI that was taxed in a prior tax           information, see TB-96, Net Deferred Tax Liability Deduction 
year by New Jersey. Do not include any federal previously               and Combined Returns.
taxed income that was not taxed by New Jersey. Schedule PT 
is available on the Division’s website.                                 P.L 2023, c.96 mandates the deduction to be taken over a min-
                                                                        imum of 27 group privilege periods. There is no requirement 
Line 12 – International Banking Facility Deduction (I.B.F.)             that the periods be consecutive. If an entity cannot use the 
If a combined group includes a taxable member that is a bank-           deduction in a particular group privilege period, because of the 
ing corporation with an international banking facility as defined       income limitation in N.J.S.A. 54:10A-4(k)(16)(G), the balance is 
by N.J.S.A. 54:10A-4(n), the combined group is eligible to              carried forward for use in a future period. 
deduct such income amounts that were not eliminated (so that 
the entire combined group is treated as one banking corpo-              For group privilege periods beginning on or after January 1, 
ration). The income must have otherwise been eligible for the           2023 but before January 1, 2030, the deduction is limited to 

                                                                  - 12 -

one percent of the total NDTL deduction per period for the first       Line 21 – Allocated entire net income/(loss) before net op-
seven group privilege periods.                                         erating loss deductions 
                                                                       Multiply the group entire net income on Schedule A, Section II, 
Note:  For group privilege periods beginning on or after Janu-         Part II, line 19, column (c) by the group allocation factor on line 
     ary 1, 2030, the NDTLD will be recalculated using any             20 and enter the result. 
     remaining NDTL amount. The amount will be limited to 
     5% for each period until fully used.                              If the amount is zero or less, this is the current year com-
                                                                       bined group net operating loss that can be carried forward 
For more information on the NDTLD and the calculation of the           as a post allocation net operating loss (NOL) deduction to a 
deduction amounts, see TB-96(R).                                       succeeding tax period pursuant to N.J.S.A. 54:10A-4(v) and 
                                                                       N.J.S.A. 54:10A-4.6.h. Skip lines 21 through 24 and enter zero 
Line 16 – Cannabis Licensee Deduction                                  on line 25.
          A New Jersey cannabis licensee is allowed to deduct 
          their expenditures that would be eligible to be              Line 22 – Allocated entire net income from Schedule X
          claimed as a federal income tax deduction and their          If the member completed Schedule X, include the allocated 
expenditures that would qualify as qualified research expendi-         entire net income from Part I of Schedule X on this line. If the 
tures pursuant to section 174 of the Internal Revenue Code,            amount is zero or less, enter zero. See Schedule X instructions 
but were disallowed for federal purposes because cannabis is           for more information.
a controlled substance under federal law. Any qualified re-
search expenditure that is claimed as a deduction may also be          Line 23 – Allocated entire net income/(loss) before net op-
claimed as a qualified research expense for purposes of the            erating loss deductions 
New Jersey Research and Development Tax Credit on Form                 Add lines 21 and 22 and enter the result. If zero or less, enter 
306. Attach a rider detailing the calculations.                        zero on line 25. 

Line 17 – Other Deductions                                             Line 24 – Net Operating Loss Deduction
Report any other deduction adjustments for which a place has           Enter the amount from Form 500U, Section C, line 3. Do 
not been provided somewhere else on the return. Include a              not enter more than the amount on line 23. See Form 500U 
rider detailing the information.                                       instructions.

          For privilege periods beginning on and after January                When calculating the total taxable net income, the 
          1, 2022, New Jersey qualified research expenditures                 combined group must first add together the allocated 
          that are included on the Corporation Business Tax                   entire net income from the unitary business of the 
Research and Development Tax Credit (Form 306) can be de-              group and the portion of allocated entire net income of mem-
ducted on the tax return in the same year that the expenditures        bers with activities independent of the group. They must then 
are claimed on the credit form, rather than amortizing the ex-         subtract the prior net operating loss conversion carryover be-
penditures. This deduction only applies to New Jersey qualified        fore subtracting the net operating losses.
research expenditures. Non-New Jersey qualified research ex-
penditures are deductible in the same manner and with the              Line 25 – Combined group taxable net income/(loss)
same timing as they are for federal purposes. Enter these              Subtract line 24 from line 23 and enter the result. If less than 
amounts on line 17 and include a rider explaining the deduc-           zero, enter zero. 
tion. See Notice: Timing of New Jersey Qualified Research Ex-
penditures for more information. Cannabis licensees, include           Part III – Calculation of Group Tax and Surtax
these expenses on line 16, not line 17.                                For privilege periods ending on and after July 31, 2020, a com-
                                                                       bined group will be treated as one taxpayer for purposes of 
Line 18 – Total Deductions                                             paragraph (1) of subsection (c) of section 5 of P.L.1945, c.162 
Add lines 9 through 17 and enter the total.                            (C.54:10A-5) and section 1 of P.L. 2018, c.48 (C.54:10A-5.41) 
                                                                       for the income derived from the unitary business. However, 
Line 19 – Entire Net Income/(Loss) Subtotal                            the portion of income that is attributable to a member that is a 
Subtract line 18 from line 8 and enter the result.                     public utility exempt from the surtax shall not be included when 
                                                                       computing the surtax due.
           If Schedule A, Section II, Part II, line 19, column 
           (c) is positive, all of the members will have entire        Line 1 – Combined group taxable net income/(loss)
           net income derived from the unitary business of             Enter the amount from Schedule A, Section II, Part II, line 25. 
           the combined group. Conversely, if Schedule A, 
Section II, Part II, line 19, column (c) is negative, all of the       Line 2a – New Jersey nonoperational income 
members will have a combined group net operating loss de-              Enter the amount from Schedule O, Part III. See Schedule O 
rived from the unitary business of the combined group. The             for more information. The schedule is available on the Divi-
members will determine their share of the combined group               sion’s website. 
net operating loss by using the member’s current year alloca-
tion factor calculated from Schedule J. This amount becomes            Note:  Nonoperational losses cannot be netted against opera-
the member’s post allocation net operating loss for the cur-                  tional income.
rent period available for carryover into future privilege 
periods.                                                               Line 2b – Nonunitary partnership income 
                                                                       Enter the amount from Schedule P-1, Part II, line 5. See 
Line 20 – Allocation Factor from Schedule J                            Schedule P-1 instructions for more information. 
Enter the group allocation factor from Schedule J.  

                                                                 - 13 -

Note:  Nonunitary partnership losses cannot be netted against           amounts for the combined group after intercompany elimina-
      operational income.                                               tions and adjustments.

Line 3 – Tax base                                                       The amounts reported on this schedule must be the same as 
Add lines 1 through 2b in column (c) and enter the total.               the amounts reported on federal Form 1125-A. Include Form 
                                                                        1125-A with the return.
Line 4a – Amount of tax
For the combined group, multiply the amount on line 3 column 
(c) by the applicable tax rate. The tax rate is imposed at the 
                                                                        Schedule A-3 
group level. 
                                                                        Summary of Tax Credits
                                                                        This schedule must be completed if any tax credits are being 
•  If line 3 is greater than $100,000, the tax rate is 9% (.09).
                                                                        claimed for the current tax period. There are various tax credits 
•  If line 3 is greater than $50,000 and less than or equal             with a variety of limitations. Each tax credit has its own limita-
 to $100,000, the tax rate is 7.5% (.075). Tax periods of less          tions and carryovers. 
 than 12 months qualify for the 7.5% rate if the prorated en-
 tire net income does not exceed $8,333 per month.                           Taxpayers must include the appropriate credit 
•  If line 3 is $50,000 or less, the tax rate is 6.5% (.065). Tax            form in the year the credit was earned even if they 
 periods of less than 12 months qualify for the 6.5% rate if                 are not claiming the credit on their tax return.
 the prorated entire net income does not exceed $4,166 per 
 month. 
                                                                        In general, tax credits are earned by the member of the 
Line 4b – Aggregate minimum tax of combined group                       combined group and are shareable among combined group 
Multiply the number of taxable group members by $2,000 and              members. However, members are not required to share their 
enter the result.                                                       credits. See N.J.S.A. 54:10A-4.6.i and TB-90, Tax Credits and 
                                                                        Combined Returns. See the instructions of the applicable credit 
Line 5 – Combined group surtax                                          form(s) for more information.
If Schedule A, Section II, Part III, line 1 is more than 
$1,000,000, the group may be subject to the surtax.                     Any tax credit(s) claimed on this schedule must be docu-
                                                                        mented with a valid New Jersey Corporation Business Tax 
Note:  If there is a public utility company included as a member        Credit form and must be included with the tax return. See 
      of the combined group, do not include the portion of              “Additional Forms and Instructions” for a list of available credit 
      income attributable to that member when determining               forms and for instructions on obtaining them. If a member is 
      whether the group is subject to the surtax and, if ap-            claiming a valid tax credit that is allowable in accordance with 
      plicable, when calculating the surtax amount. Attach a            the New Jersey Corporation Business Tax Act for which a place 
      rider explaining this calculation.                                has not been provided somewhere else on the schedule, report 
                                                                        the amount on the “Other” line in the appropriate section of 
For privilege periods beginning on or after July 31, 2023 but on        Schedule A-3.
or before December 31, 2023, multiply Schedule A, Section II, 
Part III, line 1 by the surtax rate of 2.5%.                            Part I – Tax Credits Used Against Liability 
For tax years beginning on and after January 1, 2024, the sur-          On line 30, enter the total credits from all members in the 
tax has expired. Do not calculate a surtax. Enter zero.                 combined group column. This amount must equal the amount 
                                                                        reported on page 1, line 2. Amounts to be entered for each 
Line 6 – Pass-Through Business Alternative Income Tax                   member are calculated on the credit forms. See the specific 
Credit applied to surtax                                                New Jersey Corporation Business Tax Credit form for informa-
Enter the amount from Form 329. Include the applicable credit           tion about each credit.
form(s) with the return. See Schedule A-3 instructions for more 
information.                                                            Note:  Most tax credits cannot reduce the tax liability below the 
                                                                             minimum tax. However, there are rare instances where it 
Line 7 – Balance of Surtax                                                   can. Follow the instructions on the credit form regarding 
Subtract line 6 from line 5.                                                 how and where to record the information to ensure the 
                                                                             credit is properly offsetting the tax liability.

                                                                        Part II – Refundable Tax Credits
Schedule A-2 – Members/Totals                                           If a credit form for a member calculates an amount to be re-
Cost of Goods Sold                                                      funded, enter the refundable portion on the appropriate line for 
        Starting for Tax Year 2023 Schedule A-2 has been                that member. On line 6, enter the total for all members in the 
        split into two parts. The managerial member must                combined group column. This amount must equal the amount 
        complete Schedule A-2 – Members for each mem-                   reported on page 1, line 11a. On line 7, enter the total for all 
ber. Attach additional copies of Schedule A-2 – Members if the          members in the combined group column. This amount must 
space provided is not sufficient. Schedule A-2 – Totals must be         equal the amount reported on page 1, line 11b.
completed with the total amounts of all members reported. 

Enter member’s amounts in the member’s column of Schedule 
A-2 – Members. On Schedule A-2 – Totals in column (a), enter 
the total amounts of all members prior to intercompany elimina-
tions and adjustments. In column (b), enter the intercompany 
eliminations and adjustments. In column (c), enter the total 
                                                                  - 14 -

                                                                          Finnigan Method (see N.J.S.A. 54:10A-4.7.e and N.J.S.A. 
Schedule A-4                                                              54:10A-4.11.c). Additionally, the combined group is treated as 
Summary Schedule                                                          one taxpayer for purposes of sourcing the unitary receipts. 
This schedule must be completed for each member. Report 
the information on each line of Schedule A-4 from the return              Under the Finnigan method, the allocation factor attributes in 
schedules indicated. All lines must be completed as applicable.           the numerator are derived from all of the members of the com-
                                                                          bined group, regardless of whether a member has nexus with 
                                                                          New Jersey.
Schedule A-5 
       Schedule A-5 has been discontinued.                                The New Jersey receipts of all members of the combined 
                                                                          group are included in the numerator of the allocation factor of 
                                                                          the combined group; but a member’s New Jersey receipts that 
                                                                          are from activities that are not part of the unitary business of 
Schedule CG                                                               the combined group are included on Schedule X of that mem-
       Schedule CG has been discontinued.                                 ber and not the combined group.

                                                                          Note: Pursuant to N.J.S.A. 54:10A-4.6, when an item of in-
Schedule B                                                                      come is restored to a member, such restoration must be 
Balance Sheet                                                                   reflected in both the numerator (if applicable) and the 
Schedule B has four sections. The managerial member must                        group denominator.
complete Section I and Section III for each member. Sections II 
and Section IV must be completed with the total amounts of all            Enter each member’s amount in the member’s column. All 
members reported.                                                         members must be included on this schedule to properly to cal-
                                                                          culate the allocation factor. 
The amounts reported in Section I and Section III must be the 
same as the beginning-of-year and end-of-year figures shown               Only activities related to operational activity are to be used in 
on the member’s books.                                                    computing the general allocation factors. If the member has 
                                                                          nonoperational activity, see Schedule O. If the member has 
Where applicable, data must match amounts reported on                     nonunitary partnership income, see Schedule P-1.
Schedule L of the federal return. If not, explain and reconcile 
on a rider.                                                                         In computing the allocation factor for the members 
                                                                                    and the combined group as a whole, intercom-
                                                                                    pany receipts are eliminated. 
Schedule F
Corporate Officers – General Information and 
                                                                          Lines 1–5 – Receipts Fraction 
Compensation                                                              Receipts from sales of tangible personal property are allo-
Provide all applicable information for each corporate officer 
                                                                          cated to New Jersey if the goods are shipped to points within 
from the managerial member’s corporation regardless of 
                                                                          New Jersey. Receipts from the sale of goods are allocable to 
whether compensation was received. The data reported on 
                                                                          New Jersey if shipped to a New Jersey or a non-New Jersey 
Schedule F must match amounts reported on federal Form 
                                                                          customer where possession is transferred in New Jersey. 
1125-E. Include Form 1125-E with your return.
                                                                          Receipts from the sale of goods shipped to a taxpayer from 
                                                                          outside New Jersey to a New Jersey customer by a common 
                                                                          carrier are allocable to New Jersey. Receipts from the sale 
Schedule G                                                                of goods shipped from outside New Jersey to a New Jersey 
       Schedule G has been discontinued.                                  location where the goods are picked up by a common carrier 
                                                                          and transported to a customer outside New Jersey are not allo-
                                                                          cable to New Jersey. Receipts from the following are allocable 
Schedule H                                                                to New Jersey: services performed if the benefit of the service 
                                                                          is received in New Jersey; rentals from property situated in 
Taxes                                                                     New Jersey; royalties from the use in New Jersey of patents, 
Itemize all taxes that were in any way deducted in arriving at 
taxable net income, whether reflected in Schedule A, Part I at            copyrights, and trademarks; all other business receipts earned 
line 2 (Cost of goods sold and/or operations), line 17 (Taxes),           in New Jersey.
line 26 (Other deductions) or anywhere else on Schedule A. 
                                                                          Services are sourced based on market sourcing.
If the member is an includable public utility corporation (i.e., a 
public utility that is not excluded from the combined group per           World-Wide Groups. World-Wide groups must include world-
N.J.S.A. 54:10A-4.6(k)(2)), enter the sales tax paid by the utility                      However, to the extent the non-U.S. corporation 
                                                                          wide receipts.
                                                                          member’s reduced their income by being treated in the same 
vendor.
                                                                          manner as a U.S. corporation under N.J.S.A. 54:10A-4(kk), 
                                                                          the receipts reported on Schedule J, must reflect the reduced 
                                                                          amount.
Schedule J
Computation of Group and Members’ Allocation                              FDII. The gross receipts of the FDII are included in Schedule J.
Factors 
       For privilege periods ending on and after July 31,                 Receipts From Sales of Capital Assets. Receipts from sales 
       2023, all combined groups must use the                             of capital assets (property not held by the member for sale to 
                                                                    - 15 -

customers in the regular course of business), either within or           to reflect the taxpayer’s relative gross receipts from passenger 
outside New Jersey, should be included in the numerator and              transportation, freight transportation, and rentals.” See also 
the denominator based on the net gain recognized and not on              N.J.S.A. 54:10A-6.3; N.J.A.C. 18:7-8.1; N.J.A.C. 18:7-8.10; 
gross selling prices. If the member’s business is the buying             and N.J.A.C. 18:7-8.10A.
and selling of real estate or the buying and selling of securities 
for trading purposes, gross receipts from the sale of such as-           Transportation Companies. Transportation companies 
sets should be included in the numerator and the denominator             have special sourcing rules for combined groups pursuant to 
of the receipts fraction.                                                N.J.S.A. 54:10A-4.7.b, which states: “All business income of a 
                                                                         combined group engaged in the transportation of freight by air 
Dividends and Inclusions. The amount of dividends or in-                 or ground shall be apportioned to this State by multiplying the 
clusions (deemed and/or paid dividends/inclusions) excluded              income by a fraction, the numerator of which is the ton miles 
from entire net income pursuant to N.J.S.A. 54:10A-4(k)(5), are          traveled by the combined group’s mobile assets in this State by 
not included in the numerator or denominator of the receipts             type of mobile asset and the denominator of which is the total 
fraction. However, the dividend/inclusion (deemed and/or paid            ton miles traveled by the combined group’s mobile assets ev-
dividend/inclusion) values that are not excluded are included in         erywhere. This section applies if 50% or more of the combined 
the numerator or denominator.                                            group’s entire net income is derived from the transportation of 
                                                                         freight by air or ground.” If the combined group meets the qual-
                                                                         ifications of N.J.S.A. 54:10A-4.7.b, attach a rider and enter the 
          GILTI is now treated as a dividend for New Jersey              applicable amounts on line 9 of Schedule J.
          purposes and is reported on the dividends and 
          other inclusions line (Schedule A, Part I, line 4). 
                                                                         Schedule L
                                                                                  Schedule L has been discontinued.
Water’s-Edge Group Basis or Affiliated Group Basis Re-
turns – No CFCs included as members. 
          Only the portion of the receipts attributable to GILTI 
          that has not been excluded or eliminated are in-               Schedule P-1
          cluded in Schedule J.                                          Partnership Investment Analysis
                                                                         Part I – Partnership Information
Water’s-Edge Group Basis Returns – With CFCs included as                 Itemize the investment in each partnership, limited liability com-
members.                                                                 pany, and any other entity that is treated for federal tax pur-
          If the underlying income of the CFC that generated             poses as a partnership. List the name, the federal identification 
          the GILTI was excluded from entire net income, the             number, and the date and state where organized for each part-
          GILTI is not eliminated or excluded. The GILTI attrib-         nership. Also, check the type of ownership (general or limited), 
utable to CFCs is ineligible for the exclusion. Only the portion         the tax accounting method used to reflect your share of part-
of the receipts attributable to GILTI that has not been excluded         nership activity on this return (flow through method or separate 
or eliminated is included in Schedule J.                                 accounting), and whether or not the partnership has nexus in 
                                                                         New Jersey. Itemize in column 6 the amount of tax payments 
World-Wide Group Basis Returns – with CFCs included as                   made on behalf of the member by partnership entities. Carry 
members.                                                                 the total amount of taxes paid on behalf of members to page 1, 
          The GILTI attributable to CFCs included in the com-            line 10. Include a copy of Schedule NJK-1 from Form NJ-1065. 
          bined group is eliminated and not subject to the divi-         Any single-member limited liability company must be included 
          dend exclusion. The CFC’s underlying receipts are              on this schedule. 
included in Schedule J.
                                                                         Part II – Separate Accounting of Nonunitary Partnership 
Line 9 – Allocation Factor                                               Income
Divide line 6c by the group denominator from line 8 and enter            Members that use a Separate Tax Accounting Method on 
the result. When computing the allocation factor on Sched-               nonunitary partnership investments must complete Part II to 
ule J, division must be carried to six (6) decimal places, e.g.,         compute the appropriate amount of tax. Pursuant to N.J.S.A. 
0.123456.                                                                54:10A-6, members must enter a single sales factor allocation 
                                                                         in column 3.
Note: Exclusions and adjustments are made before calculat-
      ing the allocation factor, and the allocation factor must 
      be calculated using post exclusion and adjustment                  Schedule PC 
      numbers.
                                                                         Per Capita Licensed Professional Fee
                                                                         Professional corporations (PC) formed under N.J.S.A. 
Special Industry Sourcing Rules                                          14A:17-1 et seq. or any similar laws of a possession or territory 
Airlines. Airlines have special sourcing rules pursuant to               of the U.S., a state, or political subdivision thereof, are liable 
N.J.S.A. 54:10A-6.3, which states: “Notwithstanding the pro-             for a fee on licensed professionals. 
visions of section 6 of P.L.1945, c.162 (C.54:10A-6), the sales 
fraction for the transportation revenues of a taxpayer that is an        Examples of licensed professionals are: certified public ac-
airline shall be determined as the ratio of revenue miles in this        countants, architects, optometrists, professional engineers, 
State divided by total revenue miles; provided however, that if          land surveyors, land planners, chiropractors, physical thera-
a taxpayer that is an airline is engaged in the transportation of        pists, registered professional nurses, dentist, osteopaths, phy-
passengers, the transportation of freight, or the rental of air-         sicians and surgeons, doctors of medicine, doctors of dentistry, 
craft, the ratio under this section shall be determined by means         podiatrists, veterinarians and, subject to the Rules of the Su-
of an average of a passenger revenue mile fraction, freight rev-         preme Court, attorneys at law (N.J.S.A. 14A:17-3).
enue mile fraction, and rental revenue mile fraction weighted 
                                                                   - 16 -

Note:  Licenses acquired through vocational training and/or                        Intercompany dividends (and deemed dividends) 
     apprenticeships within those trades are not considered                        between members of the combined group that 
     licensed professionals. Examples include plumbers,                            were eliminated/excluded above Schedule A, 
     electricians, HVAC technicians, cosmetologists, fire and                      Part II, line 20 are not eligible for the dividend ex-
     burglar alarm services, acupuncturists, hair stylists, ele-         clusion and are not to be included in the computation 
     vator, escalator, and moving walkway mechanics, lock-               on Schedule R. Only dividends and deemed dividends that 
     smiths, and court reporters.                                        are a part of the unitary business of the combined group that 
                                                                         were received from subsidiaries that were not included as 
The fee is assessed provided there are more than two pro-
                                                                         members of the same New Jersey combined return are eligi-
fessionals in the PC. The fee is assessed on professionals 
                                                                         ble for the exclusion. Water’s-edge and world-wide basis fil-
that are owners, shareholders, and/or employees of the pro-
                                                                         ers, see Schedule X for more information.
fessional corporation. The number of professionals should be 
calculated using a quarterly average. The fee for each resident 
                                                                        Taxpayers cannot include the following as part of the dividend 
and nonresident professional with physical nexus with New 
                                                                        exclusion:
Jersey is $150. The fee for each nonresident professional 
without physical nexus with New Jersey is $150 multiplied by            • Money market fund or REIT income; 
the allocation factor of the corporation. The fee is limited to 
$250,000 per year.                                                      • FDII (this is not considered income from dividends or 
                                                                          deemed dividends for New Jersey Corporation Business 
In the event of a period shorter than a year, the fee and limit           Tax purposes); or 
may be prorated by months. A fraction of a month is deemed to           • The portion of I.R.C. § 78 gross-up deducted on Schedule 
be a month.                                                               A, Sections I and II, Part II, line 13; or 
Check the box on the Members and Affiliates Schedule to indi-           •  Dividend income that was excluded or eliminated from en-
cate this is a professional corporation for applicable members.           tire net income of the combined group under another provi-
                                                                          sion. For example, if the dividend income was excluded pur-
Line 4 – Installment Payment: A 50% prepayment towards the                suant to N.J.S.A. 54:10A-4.6.b(2) or N.J.S.A. 54:10A-4(k)
subsequent year’s fee is required with the current year’s return.         (18), it is ineligible for an additional deduction, elimination, 
                                                                          or exclusion.
Line 8 – Credit: Amount to be credited towards next year’s fee. 
                                                                        Dividends and deemed dividends from all sources must be 
This fee is not eligible for refund.
                                                                        included in Schedule A. However, taxpayers may exclude from 
                                                                        entire net income 100% of dividends from qualified subsidiar-
                                                                        ies, less the 5% clawback, if such dividends were included in 
Schedule R                                                              the taxpayer’s gross income on Schedule A. A qualified subsid-
Dividend Exclusion                                                      iary is defined as ownership by the taxpayer of at least 80% of 
         P.L. 2023, c.96, made a series of technical correc-            the total combined voting power of all classes of stock entitled 
         tions, clarifications, and changes that affect Sched-          to vote and at least 80% of the total number of shares of all 
         ule R.                                                         other classes of stock, except non-voting stock which is limited 
• For privilege periods ending on and after July 31, 2023, the          and preferred as to dividends. 
  dividend exclusion is a pre-allocation exclusion. 
                                                                        With respect to other dividends, the exclusion is limited to 50% 
• The historic ordering limitation (preventing the dividend ex-         of such dividends included in the taxpayer’s gross income on 
  clusion from increasing net operating losses) is no longer            Schedule A, less the 5% clawback, provided the taxpayer owns 
  applicable. However, the change in historic ordering is pro-          at least 50% of voting stock and 50% of the total number of 
  spective only. Taxpayers cannot adjust NOLs and PNOLs                 shares of all other classes of stock. 
  from privilege periods ending before July 31, 2023, using 
  the law change from P.L. 2023, c.96.                                  Any subsidiary that is owned less than 50% is not entitled to a 
                                                                        dividend exclusion.
• GILTI is now treated as a dividend for New Jersey purposes 
  and is reported on the dividends and other inclusions line            Note:  If the underlying income of the foreign corporation’s in-
  (Schedule A, Part I, line 4).                                              come that generated the GILTI was excluded from entire 
•  The maximum dividend exclusion increased from 95% to                      net income, the GILTI is not eliminated as there is no 
  100% from qualified subsidiaries if such dividends were                    corresponding amount to eliminate it against.
  included in the taxpayer’s gross income on Schedule A. 
  However, a claw-back provision that requires a 5% reduc-              If the taxpayer received tiered dividends from a tiered subsid-
  tion of the exclusion amount has been added (see N.J.S.A.             iary that filed and paid tax to New Jersey on those same divi-
  54:10A-4(k)(5)(F)(ii)). Note: The claw-back provision does            dends, do not include these dividends on Schedule R. 
  not apply to intercompany dividend transactions between 
  members of the New Jersey combined return.                            The tiered dividend exclusion from certain subsidiaries is calcu-
                                                                        lated separately on Form 332. See Form 332 for more informa-
                                                                        tion. This form is available on the Division’s website.

                                                                  - 17 -

         New Jersey follows the federal ownership attribu-                    Column C – Enter the bonus depreciation claimed (50% or 
         tion rule changes under I.R.C. § 958(b) and I.R.C.                   30%). If both categories of bonus depreciation are claimed, 
         § 318 that broadened the federal attribution rules                   provide a rider detailing the assets that used 50% and the as-
         that were retroactive to January 1, 2017, in addi-                   sets that used 30%.
tion to the already broad Corporation Business Tax attribution 
rules.                                                                        Column D – Enter the convention that was used for federal 
                                                                              purposes. The applicable conventions are Half-Year Conven-
                                                                              tion, Mid-Quarter Convention, or the Mid-Month Convention.
Schedule PT – Previously Taxed Dividends and Inclusions: 
If a taxpayer had subsidiary dividend income that was reported                            Enter the method that was selected for federal 
                                                                              Column E – 
in a previous privilege period for New Jersey Corporation Busi-               purposes. The applicable methods are 200% declining bal-
ness Tax purposes and for which the taxpayer paid greater                     ance, 150% declining balance, or straight-line.
than the New Jersey minimum tax in that privilege period 
and those same dividends are included in entire net income                    Column F – Enter the amount of federal depreciation claimed 
this privilege period, complete Schedule PT in conjunction                    on federal Form 4562.
with Schedule R. See Schedule PT for more information. The 
schedule is available on the Division’s website.                              Column G – To determine the New Jersey depreciation, multi-
                                                                              ply column B by the applicable rate from the appropriate table 
                                                                              (See IRS Pub. 946 for complete tables). Enter the total on 
Schedule S                                                                    Schedule S, Part I, line 9.
Depreciation and Safe Harbor Leasing
This schedule must be completed for each member and a                         Worksheet II
copy of a completed federal Depreciation Schedule, Form                       Column D – Enter the federal depreciation claimed up to the 
4562 must be included with the return. Schedule S provides                    date the property was sold.
for adjustments to depreciation and certain safe harbor leasing 
transactions.                                                                 Column E – Enter the New Jersey depreciation claimed up to 
                                                                              the date the property was sold.
         New Jersey has decoupled from I.R.C. § 168(k) 
         bonus depreciation and I.R.C. § 179 expensing                        Column F – Enter the difference between column D and col-
         provisions. See N.J.S.A. 54:10A-4(k)(12) and                         umn E. If the amount is positive, there is an excess of depre-
         N.J.S.A. 54:10A-4(k)(13). Adjustments must be                        ciation that must be added to the federal amount claimed on 
         made accordingly.                                                    Part I, line 7. If the amount is negative, there is a deficiency 
                                                                              that must be deducted from Part I, line 7.
Line 1 through Line 6 – These lines detail the depreciation 
deduction reflected in the Computation of Entire Net Income 
(Schedule A) into several categories. In most circumstances,                  Form 500U
the information can be found on federal Form 4562.                            Prior Net Operating Loss Conversion Carryover 
Line 7 – Enter the amount reported on the federal Form 4562.                  (PNOL) and Post Allocation Net Operating Loss 
                                                                              (NOL) Deductions 
Line 8 – Enter the amount of current depreciation on property                      The historic ordering (preventing the dividend 
placed in service in prior years.                                                  exclusion and international banking facility deduction 
                                                                                   from increasing net operating losses) is no longer 
Line 9 – Enter the amount from Depreciation Worksheet I,                      applicable. 
line 10, column F.                                                                  The change in historic ordering is prospective only. Tax-
                                                                              Note:
                                                                                   payers cannot adjust NOLs and PNOLs from privilege 
Line 11 – IRC § 179 limitation. Enter the lesser of line 1 or 
                                                                                   periods ending before July 31, 2023, using the P.L. 
$25,000. 
                                                                                   2023, c.96 law change.
Line 12 – Enter the amount from Worksheet II, line 16, col-
                                                                              In addition, for privilege periods ending on and after July 31, 
umn F. If the amount is positive, add it to the total at line 15. If it 
                                                                              2023, the combined group post-allocation net operating losses/
is negative, subtract it from the total.
                                                                              loss carryovers are applied on a group level. Taxpayers must 
Line 13 – Enter any adjustment to depreciation that is an addi-               add the allocated entire net income from the unitary business 
tion. This can include, but is not limited to, partnership activity.          of the combined group and the portion of allocated entire net 
                                                                              income of members with activities independent of the group 
Line 14 – Enter any adjustment to depreciation that is a deduc-               before subtracting the prior net operating loss conversion 
tion. This can include, but is not limited to, partnership activity.          carryovers and the net operating losses.
                                                                              The combined group and the members of the combined group 
Worksheet I                                                                   must use tracing protocols for all PNOLs and NOLs. 
Column A – Sort the property you acquired and placed in ser-
vice during Tax Year 2023 according to its classification (3-year             For New Jersey Corporation Business Tax purposes, net oper-
property, 5-year property, etc.) as shown in column A.                        ating losses and net operating loss carryovers have a 20-year 
                                                                              carryover period and can only be carried forward. No carry-
Column B – Use the federal basis adding back the special de-                  backs are allowed. 
preciation reduction.

                                                                        - 18 -

For tax years beginning on and after January 1, 2020, the fed-            Discharge of Indebtedness 
eral rules and regulations governing consolidated return net              If the member(s) has a discharge of indebtedness amount that 
operating losses and net operating loss carryovers apply to the           is excluded from federal taxable income under subparagraph 
New Jersey net operating loss carryover provisions to the ex-             (A), (B), or (C) of paragraph (1) of subsection (a) of I.R.C. sec-
tent they are consistent with the provisions of the New Jersey            tion 108, adjustments need to be made to the group’s PNOLs, 
Corporation Business Tax Act. If the New Jersey and federal               NOLs, and/or post allocation net operating loss carryovers. 
provisions differ, the New Jersey Corporation Business Tax Act            Since the discharge of indebtedness amount is not an allo-
provisions govern. New Jersey generally follows the federal               cated amount, the group must multiply the discharge of indebt-
rules governing mergers, acquisitions, reorganizations, spin-             edness amount by its current year allocation factor before mak-
offs, split-offs, dissolution, bankruptcy, or any form of cessation       ing any adjustment to the net operating losses or net operating 
of a business. New Jersey also follows any other provision of             loss carryovers.
the federal rules that limits or reduces federal net operating 
losses and federal net operating loss carryovers. See N.J.S.A.            The group must first reduce the PNOLs by the allocated dis-
54:10A-4.6(m), and N.J.S.A. 54:10A-4.5(c).                                charge of indebtedness amount. If the allocated discharge of 
                                                                          indebtedness amount exceeds all of group’s PNOLs and the 
Post Allocation Net Operating Losses (NOLs) are losses                    group has post allocation net operating loss carryovers, the 
that were generated in privilege periods ending on or after July          group must also reduce the post allocation net operating loss 
31, 2019. These losses occur on a post allocation basis.                  carryovers by the remaining balance. If, after reducing their 
                                                                          post allocation net operating loss carryovers by the discharge 
       For privilege periods ending on and after July 31,                 of indebtedness amount, there are still post allocation net op-
       2023, the NOLs of the combined group and the                       erating loss carryovers available, the group may then reduce 
       NOLs of any taxable members of the combined                        their allocated entire net income by the remaining post alloca-
group can be pooled together for use by the combined group                tion net operating loss carryover.
against the entire group’s allocated entire net income (which 
includes both the income from the unitary business of the                 Section A – Computation of Prior Net Operating Losses 
combined group and the portion of income from any member                  (PNOL) Deduction
with activities independent of the group).                                This section is only applicable if members of the combined 
                                                                          group has loss carryovers from periods ending prior to July 31, 
Members must keep track of their proportionate share of NOLs              2019. Only complete this section if the total combined group 
in case the members depart the combined group in a future                 allocated entire net income/(loss) before net operating loss 
period. See TB-95(R), Net Operating Losses and Combined                   deductions on Schedule A, Section II, Part II, line 23 is positive 
Groups, for more information.                                             (i.e., income).

In addition, NOLs are limited to 80% of the combined group’s              Note:  PNOLs expire 20 privilege periods after the loss was 
taxable net income for tax years ending on or after July 31,                   originally generated. No carrybacks are allowed.
2023. N.J.S.A. 54:10A-4(w) mandates that the I.R.C. § 172(a)
(2) limitation applies to net operating losses calculated pursu-          If the combined group is not claiming a PNOL, enter zero on 
ant to N.J.S.A. 54:10A-4(v) and N.J.S.A. 54:10A-4.6(h). The               Section C, line 1 and continue with Section B.
I.R.C. § 172(a)(2) limitation applies at the combined group 
level. (August 1, 2023, is substituted for the reference to Jan-          Line 1 – Enter the Aggregate Total Converted Prior Net Oper-
uary 1, 2018, in 26 U.S.C. s.172(a)(2)(A), and July 31, 2023,             ating Losses of the Combined Group reported on Form 500U-
is substituted for the reference to December 31, 2017, in 26              P, Part II, line 22. 
U.S.C. s.172(a)(2)(A).) 
                                                                          Line 2 – Enter the amount of PNOLs reported on line 1 that 
Prior Net Operating Losses (PNOLs) are losses that were                   was deducted in a previous year.
generated in privilege periods ending prior to July 31, 2019. 
To use these losses, the unused, unexpired amounts were                   Line 3 – Enter the amount of PNOLs reported on line 1 that 
required to be converted to a post allocation basis using the             has expired.
member’s allocation factor from their last tax return filed for 
privilege period ending prior to July 31, 2019.                           Line 4 – Enter the total amount excluded from federal taxable 
                                                                          income under subparagraph (A), (B), or (C) of paragraph (1) 
       For privilege periods ending on and after July 31,                 of subsection (a) of Internal Revenue Code (26 U.S.C. s.108) 
       2023, if members of the combined group have any                    in the current year. If the amount is greater than the PNOLs 
       remaining unused, unexpired PNOLs, the amounts                     reported on line 1 (less lines 2 and 3), carry the remainder to 
are pooled together and used by the combined group against                Section B, line 4. If the amount recorded is based on multiple 
the entire group’s allocated entire net income (which includes            members, include a rider detailing the calculation by member
both the income from the unitary business of the combined 
group and the portion of income from any member with                      Line 5 – Subtract the amounts reported on lines 2 through 4 
activities independent of the group). Since the PNOLs are                 from the amount on line 1. This is the total amount of PNOLs 
pooled, combined group members are no longer permitted to                 available for deduction in the current year. 
buy and sell PNOLs to each other. 
                                                                          Line 6 – Enter the amount from Schedule A, Section II, Part II, 
                                                                          line 23.
       PNOLs must be deducted from allocated entire 
       net income before any NOLs can be deducted.                        Line 7 – Enter the lesser of lines 5 or 6. This is the current pe-
                                                                          riod PNOL deduction. Also enter this amount on line 7 of Sec-
                                                                          tion B and line 1 of Section C.

                                                                    - 19 -

Section B – Post Allocation Net Operating Losses (NOL)                   Line 11 – Subtract line 9 from line 8. 
This section is only applicable to loss carryovers from periods 
ending on and after July 31, 2019. Only complete this section            Line 12 – Enter 80% of line 11. 
if the total combined group allocated entire net income/(loss) 
before net operating loss deductions on Schedule A, Section II,          Line 13 – Add line 9 to the lesser of line 10 or line 12.
Part II, line 23 is positive (i.e., income).
                                                                         Line 14 – Enter the lesser of line 8 or line 13. This is the cur-
Losses, deductions, and expenditures that are excluded from              rent period NOL deduction. Also enter on line 2 of Section C. 
entire net income pursuant to N.J.S.A. 54:10A-4.6.b(2) or 
N.J.S.A. 54:10A-4(k)(18), are not permitted to be included in            Note: A taxable member that leaves a New Jersey combined 
net operating losses or net operating loss carryovers.                         group must take their share of the combined group post 
                                                                               allocation net operating loss carryover. The combined 
Section B is used to calculate the amount of the New Jersey                    group cannot continue to use that portion of the loss.
post allocation net operating loss carryover. 
                                                                         Section C – Total Net Operating Loss Deduction
The post allocation net operating loss deduction is subtracted           Line 1 – Enter the amount from from Section A, line 7.
from allocated entire net income after the combined group uses 
all of the available PNOLs.                                              Line 2 – Enter the amount from from Section B, line 14.

Line 1 – Enter the Aggregate Total Post Allocation Net Operat-           Line 3 – Add lines 1 and 2. Enter here and on Schedule A, 
ing Losses of the Combined Group reported on Form 500U-PA,               Section II, Part II, line 24, column (c).
line 22. 

Line 2 – Enter the amount of NOLs reported on line 1 that was            Form 500U-P
deducted in a previous period.                                           Form 500U-P was designed to help taxpayers transition to the 
                                                                         new net operating loss regime. Taxpayers were required to 
Line 3 – Enter the amount of NOLs reported on line 1 that has            convert these losses using the allocation factor from the last 
previously expired.                                                      privilege period ending before July 31, 2019. A copy of this 
                                                                         form must be included with the taxpayer’s return each year 
Line 4 – Enter the amount of any adjustments required under              until the losses are used up or expired but is not recomputed 
provisions of the federal Internal Revenue Code other than               each year. 
the I.R.C. § 172(a)(2) limitation. New Jersey generally follows 
the federal rules governing mergers, acquisitions, reorganiza-
tions, spin-offs, split-offs, dissolution, bankruptcy, or any form 
of cessation of a business. New Jersey also follows any other            Form 500U-PA
                                                                         Net Operating Loss 
provision of the federal rules that limits or reduces federal net        Line (a) – Enter the date the privilege period ended. All periods 
operating losses and federal net operating loss carryovers. See          must end on or after July 31, 2019.
N.J.S.A. 54:10A-4.5(c) for more information. If the member re-
ported an amount in Section A, line 3 of Form 500U, only enter           Line (b) – Enter the net operating loss for each period. Enter 
the excess here. (Section A, line 1 minus lines 2 and 3.)                the entire loss for the period. Do not net with previously de-
                                                                         ducted or expired amounts. Amounts that have been previously 
           Do not include any I.R.C. § 172(a)(2) limitation              deducted or that are expired must be reported on Form 500U, 
           adjustments on line 4. The I.R.C. §172(a)(2) lim-             Section B on lines 2 and 3. The converted losses can only be 
           itation computation is applied at lines 9                     carried forward for the 20 privilege periods following the period 
           through 14. The I.R.C. § 172(a)(2) limitation ap-             of the initial loss.
plies at the combined group level.
                                                                         Note:  For privilege periods ending after June 30, 2014, the 
Line 5 – Subtract the amounts reported on lines 2 through 4                    loss reported each year must not include any amount 
from the amount on line 1. This is the total amount of post allo-              excluded from federal taxable income under subpara-
cation NOLs available for deduction in the current year.                       graph (A), (B), or (C) of paragraph (1) of subsection (a) 
                                                                               of Internal Revenue Code (26 U.S.C. s.108).
Line 6 – Enter the allocated entire net income/(loss) before net 
operating loss deductions from Schedule A, Section II, Part II,          Line 21 – Enter the total post allocation net operating loss car-
line 23.If the amount is less than zero, enter zero.                     ryover for each member. Add lines 1b through 20b. 

Line 7 – Enter the PNOL claimed on Section A, line 7.                    Line 22 – Add the amounts on line 21 for all members and 
                                                                         enter the total. This is the amount that is carried to Form 500U, 
Line 8 – Subtract line 7 from line 6. If the amount is zero, enter       Section B, line 1.
zero on Section C, line 2 and stop here.

Line 9 – Enter the total amount of NOLs included on line 5 that          Additional Forms and Instructions
were generated in privilege periods beginning before August              Most of the forms and schedules needed to complete the re-
1, 2023.                                                                 turn are included with Form CBT-100U. However, there are 
                                                                         several stand alone forms and schedules that can be obtained 
Line 10 – Enter the total the amount of NOLs included on line            on the Division’s website. This includes: 
5 that were generated in privilege periods beginning after 
July 31, 2023. 

                                                                   - 20 -

• 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 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 326: Drug Donation Program Tax Credit
• Form 327: Film and Digital Media Tax Credit
• Form 328: Tax Credit for Employers of Employees With 
  Impairments
• Form 329: Pass-Through Business Alternative Income Tax 
  Credit
• Form 330: Apprenticeship Program Tax Credit
• Form 331: Tax Credit for Employer of Organ/Bone Marrow 
  Donor
• Form 332: Tiered Subsidiary Dividend Pyramid Tax Credit
• Form 333: Tax Credit for Investing in a Qualified Facility 
  and Hiring Employees to Manufacture Personal Protective 
  Equipment
• Form 334: Innovation Evergreen Fund Tax Credit
• Form 335: Unit Concrete Products Tax Credit

                                                              - 21 -