New Jersey Provides Updated CBT Guidance

The New Jersey Division of Taxation has issued several technical bulletins related to the corporation business tax (CBT):

• TB-79(R) provides general guidelines for determining whether the activities of a corporation create nexus with New Jersey for the purposes of imposing the Corporation Business Tax for privilege periods ending before July 31, 2023. 
• TB-88(R) addresses I.R.C. § 951A, I.R.C. § 250, N.J.S.A. 54:10A-4(k)(2)(I), and N.J.S.A. 54:10A-4.4 (in the context of New Jersey combined returns only), and the relevant portions of N.J.S.A. 54:10A-4.6 for privilege periods ending before July 31, 2023.
• TB-89(R) discusses the combined group filing methods and allocation methods for privilege periods ending before July 31, 2023.
• TB-92(R) discusses the application of IRC §951A and IRC §250 enacted as part of the TCJA to the New Jersey Corporation Business Tax (CBT) Act. The Division of Taxation has made a decision to revise the allocation methodology of Global Intangible Low-Taxed Income and Foreign Derived Intangible Income from the gross domestic product methodology detailed in TB-85(R).
• TB-108 provides general guidelines for determining whether the activities of a corporation create nexus with New Jersey for the purposes of imposing the CBT for privilege periods ending on and after July 31, 2023.
• TB-109 discusses combined reporting allocation method, income reporting and filing methods effective for privilege periods ending on and after July 31, 2023.
• TB-110 discusses the changes to the CBT treatment for Global Intangible Low Taxed Income (GILTI), I.R.C. s. 250(a) deduction, and Foreign-derived intangible income (FDII).