New Jersey R&D Tax Credit Summary
NJ R&D Tax Credit Available

Yes


Eligible Entities
  • C-Corporations
  • S-Corporations & Pass-Thru entities are limited to offset minimum tax

Deadline for Tax Filing

Due with New Jersey Tax Return


Data Required to Compute Credit
  • Claim Period Qualified R&D Expenses (QREs)
  • Gross Receipts for Prior 4 Years

Credit Carryforward
  • 7 Years
  • 15 Years for Specific Industries (see 'Special Notes' below)

NJ R&D Credit Summary

The New Jersey R&D tax credit equals:

  • 10% of the excess of the NJ qualified research expenses for the tax period over the base amount; plus
  • 10% of basic research payments for the tax period

Special Notes
  • NJ Fixed-Base Percentage (FBP) can be calculated using Payroll & Property fraction (Form NJ-NR-A) as an alternative method
  • Companies in the following industries can carry forward any unused R&D credit up to 15 years: advanced computing, advanced materials, biotechnology, electronic device technology, environmental technology, and medical device technology
  • 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.

NJ Research Tax Credit

Important Links and Forms:

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Assessment of your Federal
and NJ Research Credit
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