PDF document

- 1 -

FORM 317 New Jersey Corporation Business Tax
2022 Sheltered Workshop Tax Credit
Name as Shown on Return Federal ID Number Unitary ID Number, if applicable
NU
Read the instructions before completing this form
Combined Return Filers
The taxpayer is included as a taxable member on a New Jersey combined return. See instructions.
Fill in oval if member is not sharing its credit with other members of the group.
Part I Qualifications
1. Is each employee for which a credit is claimed a “Qualified Person” in accordance with P.L. 2005,
c. 318? ....................................................................................................................................................... YES NO
2. Did each employee for which a credit is claimed work for at least 26 weeks during the tax year and work
at least 25 hours per week at or under the supervision of a sheltered workshop? .................................... YES NO
Note: If the answer to either question 1 or 2 is “NO,” do not complete the rest of this form. The taxpayer does not qualify for this tax
credit. Otherwise, go to Part II.
Part II Calculation of the Available Credit
(A) (B) (C) (D)
Social Security Number Name Total Wages 20% of Column C – Max $1,000
3.
4.
5.
6.
7. Total of column D ..............................................................................................................................
8. Sheltered Workshop Tax Credit carried over from prior year ...........................................................
9. Total credit available (add lines 7 and 8) ..........................................................................................
Part III Calculation of the Allowable Credit Amount and Carryover
(Combined return filers DO NOT complete Part III. Continue with Part IV.)
10. Enter tax liability from page 1, line 2 of CBT-100, CBT-100S, or BFC-1 .................................. 10.
11. Enter the required minimum tax liability (see instructions) ............................................................ 11.
12. Subtract line 11 from line 10 ..................................................................................................... 12.
13. Enter 50% of the tax liability reported on line 10 ...................................................................... 13.
14. Enter the lesser of line 12 or line 13 ......................................................................................... 14.
15. Other tax credits used by taxpayer on current year’s return (see instructions):
(a)
(b)
(c)
(d) ..............................Total 15.
16. Subtract line 15 from line 14. If zero or less, enter zero ........................................................... 16.
17. Allowable credit for the current tax period. Enter the lesser of line 9 or 16 here and on Part I,
Schedule A-3 of the CBT-100, CBT-100S, or BFC-1 ................................................................ 17.
18. Amount of credit carryover to following year’s return (subtract line 17 from line 9) .................. 18.

- 2 -

Enlarge image

Name as Shown on Return Federal ID Number Unitary ID Number, if applicable
NU
Part IV Calculation of Allowable Credit Amount and Carryover – Combined Return Filers ONLY
Section A – ALL Combined Return Filers
19. Enter the group tax liability from Schedule A, Part III, line 5, column (a) of CBT-100U ...................... 19.
20. Enter the aggregate minimum tax of combined group members (see instructions) ................................ 20.
21. Subtract line 20 from line 19 ............................................................................................................... 21.
22. Enter 50% of the tax liability reported on line 19 ................................................................................ 22.
23. Enter the lesser of line 21 or line 22 ................................................................................................... 23.
24. Other tax credits used by combined group on current year’s return (see instructions):
(a)
(b)
(c)
(d) ......................................Total 24.
25. Subtract line 24 from line 23. If zero or less, enter zero ..................................................................... 25.
26. Allowable credit for the current tax period. Enter the lesser of line 9 or line 25. If sharing, also
enter in the member’s column of Part I, Schedule A-3 of the CBT-100U ........................................... 26.
If SHARING credit, complete line 27.
If NOT sharing credit, skip line 27 and complete Section B.
27. Amount of credit carryover to following year’s return (subtract line 26 from line 9) ............................ 27.
Section B – Combined Return Filers NOT Sharing Credit
28. a) Enter combined group tax liability from line 19 ............................ 28a.
b) Divide line 28a by the combined group allocation factor from
Schedule J, line 9 ........................................................................ 28b.
c) Member’s share of combined group tax liability – Multiply line 28b by member’s allocation factor
from Schedule J, line 9 .................................................................................................................. 28c.
29. Required minimum tax liability ............................................................................................................ 29. 2,000
30. Subtract line 29 from line 28c ............................................................................................................. 30.
31. Enter 50% of the tax liability reported on line 28c .............................................................................. 31.
32. Enter the lesser of line 30 or line 31 ................................................................................................... 32.
33. Other tax credits used by taxpayer on current year’s return (see instructions):
(a)
(b)
(c)
(d) .......................................Total 33.
34. Subtract line 33 from line 32. If zero or less, enter zero ..................................................................... 34.
35. Allowable credit for the current tax period. Enter the lesser of line 26 or line 34 here and in the
member’s column of Part I, Schedule A-3 of the CBT-100U .............................................................. 35.
36. Amount of credit carryover to following year’s return (subtract line 35 from line 9) ............................ 36.

- 3 -

Enlarge image

                                              Instructions for Form 317 
                                              Sheltered Workshop Tax Credit
This form must be completed by any taxpayer claiming a Sheltered Workshop Tax Credit and/or credit carryover as provided for in 
P.L. 2005, c.318. In general, a tax credit is allowed in an amount equal to 20% of the salary and wages paid by the taxpayer during the tax 
year for the employment of a qualified person but cannot exceed $1,000 for each qualified person for the tax year. If the taxpayer claims 
this credit on Form CBT-100, CBT-100U, CBT-100S, or BFC-1, a completed Form 317 must be included with the return to validate the 
claim.
Parts III and IV are used to calculate the allowable credit and carryover. Taxpayers filing Forms CBT-100, CBT-100S, or BFC-1 complete 
Part III and CBT-100U filers complete Part IV.
Note: Only complete the applicable lines from Parts II–IV where the full amount of the Sheltered Workshop Tax Credit claimed on the cur-
rent return is the result of a  Sheltered Workshop Tax Credit carried forward from a previous tax year.
The amount of the tax credit that cannot be applied to the current tax period due to the applicable limitations can be carried over to the 
seven tax years following the tax year for which the credit was allowed.

Definitions:
Qualified Person means an extended employee, within the meaning of that term as set forth in section 2 of P.L.1971, c.272 (C.34:16-
40), to whom the Commissioner of the Department of Labor and Workforce Development, under subsection (b) of section 18 of 
P.L.1966, c.113(C.34:11-56a17) shall have issued a special license authorizing employment at wages less than the minimum wage 
rate, and who, for at least 26 weeks during the tax year, shall have performed at least 25 hours per week of work at or under the su-
pervision of a sheltered workshop pursuant to a contract between the taxpayer and the sheltered workshop.

Sheltered Workshop means an occupation-oriented facility operated by a nonprofit agency with which the Division of Vocational 
Rehabilitation Services in the Department of Labor and Workforce Development shall have entered into a contract under section 4 of 
P.L.1971, c.272 (C.34:16-42) to furnish extended employment programs to eligible individuals.

Combined Return Filers
If filing a combined return, the form must be completed by the member that earned the credit. All combined return filers must check the 
combined return filers box at the top of the form and complete Part IV, Section A. 
Members Opting Not to Share. In general, tax credits are earned by a member of the combined group and are shareable with the com-
bined group. However, members are not required to share their credits. See N.J.S.A. 54:10A-4.6.i and TB-90(R), Tax Credits and Com-
bined Returns. In addition to Section A, members that choose not to share must also complete Part IV, Section B and fill in the oval at the 
top of the form to indicate they are not sharing the credit.

       Taxpayers must include the appropriate credit form in the year the credit was earned even if they are not claiming the credit on their tax 
       return.

Part I – Qualifications
The answer to both questions must be “YES.” If the answer to either question is “NO,” the taxpayer is not entitled to the Sheltered Work-
shop Tax Credit.

Part II – Calculations of the Available Credit
Enter the information in columns A through D for each qualified person for which a tax credit is claimed. Enter in column D the lesser of 
20% of the amount in column C or $1,000. Include a schedule if additional entries must be made.

Part III – Calculation of the Allowable Credit Amount and Carryover (for CBT-100, CBT-100S, and BFC-1 
Filers only)
For CBT-100, CBT-100S, and BFC-1 filers, the allowable Sheltered Workshop Tax Credit for the current tax period is calculated in Part III. 
Combined return filers do not complete Part III, and must complete Part IV instead. The amount of this credit in addition to the amount of 
any other tax credits taken is limited to 50% of the taxpayer’s total tax liability and cannot exceed an amount that would reduce the total tax 
liability below the statutory minimum. 
Line 11 – The minimum tax is assessed based on the New Jersey Gross Receipts as follows:

                       New Jersey Gross Receipts                           CBT-100/BFC-1  CBT-100S
                       Less than $100,000                                          $500        $375
                       $100,000 or more but less than $250,000                     $750        $562
                       $250,000 or more but less than $500,000                     $1,000      $750
                       $500,000 or more but less than $1,000,000                   $1,500      $1,125
                       $1,000,000 or more                                          $2,000      $1,500

- 4 -

Enlarge image

If a taxpayer is filing a separate return and is a member of an affiliated or controlled group that has a total payroll of $5,000,000 or more for 
the return period, the minimum tax is $2,000. Tax periods of less than 12 months are subject to the higher minimum tax if the prorated total 
payroll exceeds $416,667 per month.
Line 15 – Taxpayers claiming multiple credits must list any credits already applied to the tax liability to ensure accuracy of the calculation 
for maximum credit allowable.

Part IV – Calculation of the Allowable Credit Amount and Carryover for Combined Return Filers
For CBT-100U filers, the allowable Sheltered Workshop Tax Credit for the current year is calculated in Part IV. All combined return filers 
must complete Section A. Members that choose not to share their credit must also complete Section B.
Section A – To be completed by ALL combined return filers
This section calculates the amount of credit allowable for the group. If a member chooses not to share their credit with the group, Section A 
must still be completed to ensure the credit allowed for the member does not exceed the amount that would otherwise be allowed against 
the group tax liability.
The amount of the credit calculated in this section cannot exceed 50% of the group tax liability otherwise due and cannot reduce the tax 
liability to an amount less than the aggregate statutory minimum tax of the group members.
Line 20 – Multiply the number of taxable group members by $2,000 and enter the result.
Line 24 – Combined groups claiming multiple credits must list any credits already applied to the group tax liability to ensure accuracy of 
the calculation for maximum credit allowable.
Section B
This section is used to calculate the amount of credit allowable for members that choose not to share their credit with the group. Section B 
is completed based on the member’s share of the group tax liability. The amount of the credit calculated in this section cannot exceed 50% 
of the member’s tax liability otherwise due and cannot reduce the tax liability to an amount less than $2,000. The amount of the credit is 
also limited to the amount that would otherwise be allowed against the group tax liability if the member had been sharing the credit.
Line 33 – Members claiming multiple credits must list any credits already applied to the member’s tax liability to ensure accuracy of the 
calculation for maximum credit allowable.

PDF file checksum: 1046452921

(Plugin #1/9.12/13.0)