NEW JERSEY R&D TAX CREDIT SUMMARY
New Jersey State R&D Tax Credit
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
