New Jersey R&D Tax Credit Summary

R&D Tax Credit Available:

Yes


Eligible Entities:

C-Corporations


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)

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:

  • Effective Jan 1, 2018, NJ allows the alternative simplified method to calculate the state credit
  • NJ Fixed-Base Percentage (FBP) can be calculated using Payroll & Property fraction (Form NJ-NR-A) as an alternative method (Existing Researchers Only)
  • 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.
Research Tax Credit
Important Links and Forms

NJ DOT
NJ Form 306

Contact Us for a No-Cost Assessment of your Federal and State Research Credit Estimate

Learn More About R&D Tax Credits