New Jersey R&D Tax Credit Summary

New Jersey R&D Tax Credit, R&D Tax Credit

New Jersey State R&D Tax Credit

Refundable Tax Credit – Yes*

The credit can be sold through the NJ Tax Certificate Transfer Program*

Download A Practical Guide to Identifying, Gathering, and Documenting A Sustainable Research Tax Credit Claim

In general, corporate entities are allowed a credit against the corporation business tax for qualified expenditures with respect to research conducted in New Jersey. Details are as follows:

    • The amount of the credit allowed equals 10% of the excess of the qualified research expense for the fiscal or calendar year over a base amount and 10% of the basic research payments
    • The credit is only available to C and S corporations
    • A New Jersey S corporation’s credits are limited to its New Jersey corporation tax liability and pass-through of the credit to the individual shareholders isn’t permitted
    • The credit is not available to partnerships and other pass-through entities

Carryforward 

Unused research and development credits may be carried forward for up to seven years.

Flow-Through Entities

A New Jersey S-Corporation is allowed to claim a credit in connection with increasing research activities to the extent of its New Jersey corporation tax liability. Pass through of this credit to shareholders is not permitted.

How to obtain the credit? 

For taxable periods beginning on and after January 1, 2013, complete Form 306.

Find out if you qualify for the R&D tax credit

 

SELL YOUR NOL’s AND R&D CREDITS

If your company hasn’t considered the R&D credit in the past because you have net operating losses (NOLs) and could not utilize the credit contact us today to find out which states allow you to sell your credits and losses for up to 95 cents on the dollar. Also, qualified start-up companies can now take a credit on their payroll taxes for their R&D credit, allowing your company to utilize the R&D credit immediately, even if your company does not have taxable income.
FIND OUT MORE TODAY

States Offering R&D Credit:

                             States Without R&D Credit

Alabama
District of Columbia
Missouri
Montana
Nevada
Oklahoma
South Dakota
Tennessee
Washington
West Virginia
Wyoming