Fill - Free fillable CBT-100S STATE OF NEW JERSEY DIVISION OF TAXATION (The State of New Jersey) PDF form

1. COMPLETING AND MAILING RETURNS:

Please read all instructions carefully before completing returns.

(a) Statutory references are to the New Jersey Statutes Annotated

and indicate, unless otherwise designated, the section of the

Corporation Business Tax Act, as amended and supplemented,

on which the instruction is based. To obtain additional

information or tax forms, follow the instructions on the bottom

of page 13.

(b) Remove the pre-printed name and address label from the front of

the booklet and place it in the appropriate space provided on the

return. If any information on this label is incorrect, make all

necessary changes on the label. If no label is provided, print or

type the Federal Employer Identification Number, New Jersey

Corporation Number, Corporation Name, complete address and

zip code in the space provided on the return.

of the return. Enter the total gross receipts less returns and

allowances as reported on Schedule A, line 1. This information

must be entered even if the taxpayer submits copies of Federal

schedules in lieu of completing Schedule A. The principal

business activity code should be taken from the taxpayer’s

Federal tax return. Be sure to provide the location of the

corporate books as well as a contact person and telephone

number.

(d) Send the completed return to: State of New Jersey, Division of

Taxation, Corporation Tax, PO Box 666, Trenton, NJ 08646-

0666. Use the large preprinted envelope provided in this packet

to mail the return.

2. All schedules and questions must be answered unless permission to

omit or substitute is indicated on the return form. All applicable

schedules must be submitted on the official New Jersey tax form or

an exact reproduction thereof. If the answer to any item is “No” or

“None”, write “No” or “None”. Do not merely leave the item blank.

3. (a) 1999 ACCOUNTING PERIODS AND DUE DATES:

The 1999 S Corporation Business Tax Return should only be

used for accounting periods ending on and after July 31, 1999

through June 30, 2000. The due dates for all 1999 S Corporation

Business Tax Returns and payments are reported on the

following schedule.

Calendar or fiscal accounting year is the same accounting period

upon which the taxpayer is required to report to the United

States Treasury Department for Federal Income Tax purposes.

Please note the ending month of the accounting period for

Federal returns and New Jersey returns must match, however,

the tax return year for the Federal and State returns may differ.

(i.e. A taxable year ending 8/31/99 may be filed on a 1998

Federal 1120; the same taxable year must be filed on a 1999 NJ

CBT-100S.) All accounting periods must end on the last day of

the month, except that taxpayers may use the same 52-53 week

accounting year that is used for Federal Income Tax purposes,

see N.J.A.C. 18:7-2.3.

Do not alter the year appearing in the upper left hand corner or

the taxable year caption on page 1 of the CBT-100S. Changing

the above information will delay the processing of your return.

If returns are required for a different year, please refer to the

forms ordering instructions on page 13 of this booklet.

(b) NEW CORPORATIONS:

(1) Every New Jersey corporation acquires a taxable status

beginning 1) on the date of its incorporation, or 2) on the

first day of the month following its incorporation if so stated

CLASS OF TAXPAYER

1. Non-Allocating

2. Allocating

3. NJ QSSS

A-2

A-3

CBT-100S

STATE OF NEW JERSEY

DIVISION OF TAXATION CORPORATION TAX

INSTRUCTIONS FOR S CORPORATION BUSINESS TAX RETURN

(Form CBT-100S - 1999)

SCHEDULE CHART

TAXPAYER MUST COMPLETE SCHEDULES INDICATED BY “X” FOR ITS RESPECTIVE CLASS

AND ATTACH A COPY OF THE CORRESPONDING FEDERAL RETURN 1120S

If accounting

period ends July 31, Aug 31, Sept 30, Oct. 31, Nov. 30, Dec. 31,

on: 1999 1999 1999 1999 1999 1999

Due date for Nov. 15, Dec. 15, Jan. 18, Feb. 15, Mar. 15, Apr. 17,

filing is: 1999 1999 2000 2000 2000 2000

If accounting

period ends Jan. 31, Feb. 29, Mar. 31, Apr. 30, May 31, June 30,

on: 2000 2000 2000 2000 2000 2000

Due date for May 15, June 15, July 17, Aug. 15, Sept. 15, Oct. 16,

filing is: 2000 2000 2000 2000 2000 2000

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SCHEDULES

P-1

NJ-K-1

in its certificate of incorporation. Every corporation

which incorporates, qualifies or otherwise acquires a

taxable status in New Jersey must file a Corporation

Business Tax Return. A tax return must be filed for each

fiscal period, or part thereof, beginning on the date the

corporation acquired a taxable status in New Jersey

regardless of whether it had any assets or conducted any

business activities. No return may cover a period

exceeding twelve (12) months, even by a day.

(2) Every corporation which incorporates, qualifies or

otherwise acquires a taxable status in New Jersey and

which has adopted a fiscal year other than December 31,

shall advise the Division of Taxation promptly of the date

of such accounting period. If no such advice is received

on or before April 17, 2000, the taxpayer will be deemed

“delinquent” if no return is filed on or before April 17,

2000.

(3) Every corporation that elects to be a New Jersey S

corporation must file a “New Jersey S Corporation or

New Jersey QSSS Election” (Form CBT-2553) within

one calendar month subsequent to the Federal S

corporation filing requirement.

CERTIFICATE OF AUTHORITY: In addition to any other

liabilities imposed by law, a foreign corporation which

transacts business in this State without a certificate of

authority shall forfeit to the State a penalty of not less than

$200.00, nor more than $1,000.00 for each calendar year, not

more than 5 years prior thereto, in which it shall have

transacted business in this State without a certificate of

authority. N.J.S.A. 14A:13-11(3).

4. (a) PAYMENT OF TAX: Make remittance payable to “State of

New Jersey - CBT” and forward with the preprinted payment

voucher, CAR-100, provided in this packet. MAKE OUT A

SEPARATE REMITTANCE FOR EACH TAX RETURN

(CBT-100S) OR ESTIMATED PAYMENT VOUCHER

(CBT-150) SUBMITTED. Do not remit the tax for two or

more returns in one check. Indicate the taxpayer’s Federal

Employer Identification Number on each remittance.

(b) All corporations are required to make installment payments of

estimated tax. Generally, these payments are remitted with

the form CBT-150. Refer to Instruction 38 for further

information.

5. ELECTRONIC FUNDS TRANSFERS: The Division of

Revenue has established procedures to allow the remittance of tax

payments through Electronic Funds Transfer (EFT). Taxpayers

with a prior year’s liability of $20,000 or more in any one tax are

required to remit all tax payments using EFT. If you have any

questions concerning the EFT program, call (609) 984-9830 or

write to N.J. Division of Revenue EFT Section, PO Box 191,

Trenton, N.J. 08646-0191.

6. PERSONAL LIABILITY OF OFFICERS AND

DIRECTORS: Any officer or director of any corporation who

shall distribute or cause to be distributed any assets in dissolution

or liquidation to the stockholders without having first paid all

corporation franchise taxes, fees, penalties and interest imposed

upon said corporation, in accordance with N.J.S.A. 14A:6-12,

N.J.S.A. 54:50-18 and other applicable provisions of law, shall be

personally liable for said unpaid taxes, fees, penalties and interest.

Compliance with N.J.S.A. 54:50-13 is also required in the case of

certain mergers, consolidations and dissolutions.

7. EXTENSION OF TIME TO FILE RETURN:

(a) The Division of Taxation will grant an automatic extension of

six (6) months for filing the final Corporation Business Tax

Return. In general, the extended period may not exceed six

(6) months from the original due date of the return. No

extensions will be granted unless requested on tentative return

form CBT-200-T which must be postmarked on or before the

due date for filing the return. The Tentative Return must show

the full name, address, Federal Employer Identification

Number, N.J. Corporation Number, the tax liability, and must

be submitted with payment for the total amount due. A

preprinted CBT-200-T voucher is included in this packet.

(b) If an extension has been requested, the corporation should

notify all shareholders of such request.

than $500 on line 1, may make a payment of 50 percent of line

1 in lieu of making the installment payments otherwise

required. Taxpayers who report a tax liability of $500 or more

on line 1 should not make an entry on line 2 and are required

to make installment payments as indicated in Instruction 38.

(d) PENALTIES AND INTEREST

(1) Interest - The annual interest rate is 3% above the average

predominant prime rate. Interest is imposed each month or

fraction thereof on the unpaid balance of tax from the

original due date to the date of payment. At the end of

each calendar year, any tax, penalties and interest

remaining due will become part of the balance on which

interest will be charged. The interest rates assessed by the

Division of Taxation are published in the quarterly issues

of the New Jersey State Tax News. To obtain a copy, refer

to the instructions at the bottom of page 13.

NOTE: The average predominant prime rate is the rate as

determined by the Board of Governors of the Federal

Reserve System, quoted by commercial banks to large

businesses on December 1st of the calendar year

immediately preceding the calendar year in which

payment was due or as redetermined by the Director in

accordance with N.J.S.A. 54:48-2.

(2) Insufficiency Penalty - If the amount paid with the

Tentative Return, Form CBT-200-T, is less than 90% of

the tax liability computed on Form CBT-100S, or in the

case of a taxpayer whose preceding return covered a full

12 month period, is less than the amount of the tax

computed at the rates applicable to the current accounting

year but on the basis of the facts shown and the law

applicable to the preceding accounting year, the taxpayer

may be liable for a penalty of 5% per month or fraction

thereof not to exceed 25% of the amount of underpayment

from the original due date to the date of actual payment.

8. ACCOUNTING METHOD: The return must be completed

using the same method of accounting, cash, accrual or other, that

was employed in the taxpayer’s Federal Income Tax Return.

9. RIDERS: Where space is insufficient, attach riders in the same

form as the original printed sheets. Only write on one side of the

sheet.

10. TAX RATES:

(a) The tax rate on entire net income that is not subject to federal

income taxation or such portion thereof as may be allocable to

New Jersey is 2.0% (.02). For taxpayers with total entire net

income (Schedule A, line 41) of $100,000 or less, the

applicable tax rate for entire net income that is not subject to

Federal corporate taxation is 0.5% (.005). Tax periods of less

than 12 months qualify for this reduced rate if the prorated

entire net income does not exceed $8,333 per month.

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(b) The tax rate is 9.00% (.09) of entire net income that is subject to

federal income taxation or such portion thereof as may be

allocable to New Jersey. For taxpayers with total entire net

income (Schedule A, line 41) of $100,000 or less, the applicable

tax rate for entire net income that is subject to federal corporate

taxation is 7.50% (.075). Tax periods of less than 12 months

qualify for this reduced rate if the prorated entire net income

does not exceed $8,333 per month.

allocated to New Jersey for the nonconsenting shareholders is

6.37% (.0637).

(d) MINIMUM TAX: The minimum tax requirement for all periods

is $200 for both domestic and foreign corporations. The

minimum tax cannot be prorated. Zero (0) returns are not

permitted.

11. CORPORATIONS REQUIRED TO FILE THIS RETURN:

(a) Every corporation that has elected and qualifies pursuant to

Section 1361 of the Internal Revenue Code and has qualified

and been accepted as a New Jersey S Corporation is required to

file a CBT-100S.

(b) Foreign corporations that meet the filing requirements and

whose income is immune from tax pursuant to Public Law 86-

272, 15 U.S.C. § 381 et seq., must obtain and complete Schedule

N, Nexus - Immune Activity Declaration, and remit the

minimum tax with the CBT-100S. Refer to instruction 28.

Qualified Subchapter S Subsidiary is eligible to be a New Jersey

Qualified Subchapter S Subsidiary. Every corporation that has

qualified and been accepted as a New Jersey Qualified

Subchapter S Subsidiary is required to file a New Jersey

Corporation Business Tax Return remitting only the minimum

tax liability of $200.

12. SIGNATURE: Each return must be signed by an officer of the

corporation who is authorized to attest to the truth of the statements

contained therein. The fact that an individual’s name is signed on

the return shall be prima facie evidence that such individual is

authorized to sign the return on behalf of the corporation. Tax

preparers who fail to sign the return or provide their assigned tax

identification number shall be liable for a $25.00 penalty for each

such failure. If the tax preparer is not self-employed, the name of

the tax preparer’s employer and the employer’s tax identification

number should also be provided. In the case of a corporation in

liquidation or in the hands of a receiver or trustee, certification shall

be made by the person responsible for the conduct of the affairs of

such corporation.

13. FINAL DETERMINATION OF NET INCOME BY FEDERAL

GOVERNMENT: Any change or correction made by the Internal

Revenue Service or other competent authority to taxable income

must be reported to the Division within ninety (90) days. Also,

amended NJ-K-1’s must be provided to the appropriate

shareholders. To amend CBT-100S returns, use the CBT-100S

form for the appropriate tax year and write “AMENDED

RETURN” clearly on the front page of the form.

FEDERAL/STATE TAX AGREEMENT: The New Jersey

Division of Taxation and the Internal Revenue Service participate in

a Federal/State program for the mutual exchange of tax information

to verify the accuracy and consistency of information reported on

Federal and New Jersey tax returns

14. SCHEDULE A - COMPUTATION OF ENTIRE NET

INCOME: Every taxpayer must complete this schedule on the

form provided. In lieu of completing lines 1 to 21, taxpayers may

submit a copy of the corresponding Federal Income Tax return,

Form 1120S.

(a) GENERAL:

(1) The figures shown on lines 1 to 21 must be the same as lines

1 to 21 on page 1 of the Federal Income Tax Return, Form

1120S.

(2) Line 31 - Must reflect entire net income in the same manner

and to the same extent as if no Federal Income Tax S or New

Jersey S election had been made.

(3) A copy of the Federal Form 1120S, including Schedule K,

must be submitted with the CBT-100S.

(b) Line 4: Add a rider or schedules showing the same information

shown on Federal Form 1120S, Form 4797.

which pass through to the individual shareholders as reported on

the Federal Schedule K. Be sure to report lines 26, 27 and 28 as

deductions.

Charitable contributions are limited to 10% of taxable income

for New Jersey purposes and should be stated separately on line

30.

Built-in gains must be reported on line 23(d) as a gross amount

exclusive of any net effects of taxes paid by the corporation.

(d) Line 32: Include any interest income that was not taxable for

Federal Income Tax purposes, and was not included in total

income reported on line 31, Schedule A.

(e) Line 33: Enter the total taxes paid or accrued to the United

States, a possession or territory of the United States, a state, a

political subdivision thereof, or the District of Columbia, on or

measured by profits or income, business presence or business

activity, or any sales and use tax paid by a utility vendor, taken

as a deduction in Schedule A and reflected in line 31. Refer to

Instruction 22.

(f) Line 34: Any tax paid by the corporation on behalf of any

shareholder should not have been deducted as an expense on

Schedule A. However, if the corporation expensed such taxes

on Schedule A, these taxes must be included in line 34.

(g) Line 35: Enter the depreciation and other adjustments from

Schedule S. (See Instruction 34).

(h) Line 36(a): DEDUCTION FOR FOREIGN TAXES PAID,

WITHHELD, OR DEEMED PAID: Taxes actually paid to or

withheld by a foreign country and claimed as a credit on the

Federal Income Tax Return may be deducted only to the extent

that the related income is included in entire net income on line

41. Any such taxes appearing as a deduction in arriving at line

31, entire net income before special deductions or net operating

loss deduction, must be adjusted to the extent that they relate to

dividends excluded from line 41.

The portion of any Section 78 gross-up included in dividend

income on line 23(b), Schedule A, that is not excluded from

entire net income on line 41, may be treated as a deduction for

foreign taxes.

Lines 36(b) and (c): Use these lines to report amounts of (1)

adjustments not otherwise specifically provided for and (2)

gross income, less deductions and expenses in connection

therewith, from sources outside the United States, not included

in Federal taxable income and (3) the net effect of the

elimination of non-operational and non-unitary partnership

income and expenses from line 36, Schedule O, Part I. Attach

separate riders explaining fully such items.

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(i) Line 38: A net operating loss for a taxable year may be carried

forward as a net operating loss deduction to a succeeding year.

An S corporation may carry forward losses generated as a C

corporation prior to its New Jersey S election. A net operating

loss is the excess of allowable deductions over gross income

used in computing entire net income. Neither a net operating

loss deduction nor the dividend exclusion is an allowable

deduction in computing a net operating loss. The statute

authorizes a carryover of the deduction for seven years.

Schedule A-1 must be completed if the net operating loss

deduction is taken. See instruction 15.

(j) Line 40: Dividends from all sources must be included in

Schedule A. However, an exclusion from entire net income for

certain dividend income may be taken as indicated in Schedule

R. Taxpayer may not include money market fund income as

part of the dividend exclusion.

(k) Line 41: If line 41 is a negative amount, DO NOT

SUBTRACT line 42 from line 41. The loss on line 41 should

be carried to line 43. The income on line 42 should be

multiplied by line 44 and carried to line 45.

(l) Line 42: Must reflect the income used as a basis in determining

the Federal tax payable by the corporation as reported on the

Federal Form 1120S, such as certain built-in gains, net passive

income, etc. Built-in gains must be reported on line 23(d) as a

gross amount exclusive of any net effects of taxes paid by the

corporation.

(m) RIGHT OF DIRECTOR TO CORRECT DISTORTIONS

OF NET INCOME: The Director is authorized to adjust and

redetermine items of gross receipts and expenses as may be

necessary to make a fair and reasonable determination of tax

payable under the Corporation Business Tax Act. For details

regarding the conditions under which this authority may be

exercised, refer to regulation N.J.A.C. 18:7-5.10.

15. SCHEDULE A-1 - NET OPERATING LOSS DEDUCTION

AND CARRYOVER: Complete this schedule only if a net

operating loss has been carried forward from a previous tax year

and claimed as a deduction on the current year’s return. An S

corporation may carry forward losses generated as a C corporation

prior to its New Jersey S election. Use lines 1 through 7, columns 1

through 4 to compute the net operating loss from a previous tax

year or years. Determine the amount of the net operating loss by

adding back to the loss reported on Schedule A, line 31 (CBT-

100S) or Schedule A, line 28 (CBT-100) all New Jersey

adjustments except for the dividend exclusion for that tax year. The

amount of a net operating loss allowed to be taken as a deduction in

the current tax year is limited to the amount of income reported on

line 37 of Schedule A for that tax year. Use lines 8 through 14 in

columns 1 and 4 to report for each year a net operating loss

deduction is taken, the amount of the previous year’s net operating

loss used to offset entire net income before the dividend exclusion.

The net amount reported on line 15 represents the unused net

operating loss carryover available for future use. If space is

insufficient due to the filing of more than one tax return for the

same tax year, attach a rider to report the required information.

16. SCHEDULE A-2 - COST OF GOODS SOLD: The amounts

reported on this schedule must be the same as the amounts reported

on the taxpayer’s Federal income tax return.

17. SCHEDULE A-3 - SUMMARY OF TAX CREDITS: This

schedule must be completed if one or more tax credits are claimed

for the current tax period. The total on line 10 must equal the

amount reported on page 1, line 10. Refer to Instruction 37 for tax

credit information.

18. SCHEDULE B - BALANCE SHEET: Every taxpayer must

complete this schedule. The amounts reported must be the same as

the year end figures shown on the taxpayer’s books.

19. SCHEDULE C - RECONCILIATION OF INCOME PER

BOOKS WITH INCOME PER RETURN: Every corporation

must complete this schedule.

20. SCHEDULE E - GENERAL INFORMATION: All taxpayers

must answer all questions on this schedule. In addition, riders must

be submitted where necessary in answering the questions.

21. SCHEDULE F - CORPORATE OFFICERS GENERAL

INFORMATION AND COMPENSATION: All applicable

information should be provided for each corporate officer

regardless of whether or not compensation was received.

22. SCHEDULE H - TAXES: Itemize all taxes which were in any

way deducted in arriving at taxable net income, whether reflected at

line 2 (Cost of goods sold and/or operations), line 12 (Taxes), line

19 and/or 28 (Other deductions) or anywhere on Schedule A. Also

refer to instruction 14(e).

23. OPTIONAL COPIES OF SCHEDULES A: Any taxpayer who

files a Federal Form 1120S with the Internal Revenue Service may

submit copies of page 1 in lieu of completing lines 1 to 21 of

Schedule A. Such copies or reproductions must be facsimiles of the

complete schedules; they must be of good legibility and on paper of

substantially the same weight and texture, and of a quality at least

as good as that used in the official form, CBT-100S. They must

also be of the same size as that of the official schedules, both as to

the overall dimensions of the paper and the image reproduced

thereon.

Separate pages must be fastened together in proper order and must

be attached to the return form. The taxpayer’s full name and

identifying number must be typed or printed on each reproduced

page or copy.

24. SCHEDULE J PART I - GENERAL INSTRUCTIONS

REGARDING ALLOCATION OF ADJUSTED ENTIRE NET

INCOME:

(a) WHO IS PERMITTED TO ALLOCATE: No domestic or

foreign corporation is permitted to allocate less than 100% of its

adjusted entire net income to New Jersey, unless, during the

period covered by the return, it actually maintained a regular

place of business outside of New Jersey other than a statutory

office.

(b) DEFINITION OF REGULAR PLACE OF BUSINESS: A

“regular place of business” is any bona fide office (other than a

statutory office), factory, warehouse, or other space of the

taxpayer which is regularly MAINTAINED, OCCUPIED and

USED by the taxpayer in carrying on its business and in which

one or more regular employees are in attendance. To maintain

a place of business, the taxpayer must either own or rent the

premises. That cost must be borne directly by the the taxpayer

and not by some related entity or person.

allocation factor in Schedule J, division must be carried to six

decimal places, e.g., .123456.

(d) ELECTION TO ALLOCATE: If the taxpayer is entitled to

allocate, the election should be made with the filing of the

Corporation Business Tax return regardless of the amount of

income reported on line 41 of Schedule A. Schedule J must be

completed to validate the election.

(e) Only the receipts, property and payroll expenses attributable to

operational activity are to be used in computing the allocation

factor denominators.

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25. SCHEDULE J PART II - AVERAGE VALUES: Average value

is generally computed on a quarterly basis where the taxpayer’s

accounting practice permits such computation. At the option of the

taxpayer or the State, a more frequent basis (monthly, weekly or

daily) may be used. Where the taxpayer’s accounting practice does

not permit computation of average value on a quarterly or more

frequent basis, semi-annual or annual frequency may be used only

where no distortion of average value results. If any basis other than

quarterly is used, state the basis and reasons for use thereof on rider.

The average values of real and tangible personal property owned

which are used in determining the property fraction of the allocation

factor are based on book value. The numerator and denominator

must take into account accumulated depreciation deferred for net

income purposes where the taxpayer accounts for its property on its

books on a Federal income tax basis. Rented or leased property is

valued at eight times its annual rent, including any amounts (such as

taxes) paid or accrued in addition to or in lieu of rent during the

period covered by the return. All other property which is used by

the taxpayer but is neither owned, rented or leased, should be valued

at book value, however, if no such book value exists, the market

value of the property should be used.

26. SCHEDULE J PART III - COMPUTATION OF

ALLOCATION FACTOR: This schedule may be omitted if the

taxpayer does not maintain a regular place of business outside this

State other than a statutory office, in which case the tax law requires

the allocation factor to be 100%.

(a) However, if the allocation factor is 100% but the taxpayer in fact

pays tax to another state based on or measured by income which

is included on Schedule A of this return, it may compute a

reduction in its N.J. Corporation Business Tax under certain

conditions. Refer to N.J.A.C. 18:7-8.3 for eligibility and the

method of computing such reduction. A copy of this regulation

can be obtained from the Taxpayer Forms Service which can be

contacted by following the instructions on the bottom of page

13. The credit for taxes paid to other jurisdictions may be

claimed on Page 1, line 8. New Jersey S corporations which

claim this credit must advise each shareholder of this

information so that they may properly complete their New

Jersey Gross Income Tax return.

(b) LINE 1 - PROPERTY FRACTION: For general information

regarding method of valuation in arriving at average values, see

instruction 25. Tangible personal property is within New Jersey

if and so long as it is physically situated or located here.

Property of the taxpayer held in New Jersey by an agent,

consignee or factor is (and property held outside New Jersey by

an agent, consignee or factor is not) situated or located within

New Jersey. Property, while in transit from a point outside New

Jersey to a point in New Jersey or vice versa does not have a

fixed situs either within or outside the State and, therefore, will

not be deemed to be “situated” or “located” either within or

outside New Jersey and accordingly the average value of such

property should be omitted from both the numerator and the

denominator of the property fraction. Ships, aircraft, satellites

used in the communications industry, and other mobile or

movable property are subject to the specific rules defined in

N.J.A.C. 18:7-8.4.

tangible personal property are allocated to New Jersey where the

goods are shipped to points within New Jersey.

Receipts from the sale of goods are allocable to New Jersey if

shipped to a New Jersey or a non-New Jersey customer where

possession is transferred in New Jersey. Receipts from the sale

of goods shipped to a taxpayer from outside of New Jersey to a

New Jersey customer by a common carrier are allocable to New

Jersey. Receipts from the sale of goods shipped from outside of

New Jersey to a New Jersey location where the goods are picked

up by a common carrier and transported to a customer outside of

New Jersey are not allocable to New Jersey.

Receipts from the following are allocable to New Jersey;

services performed in New Jersey; rentals from property

situated in New Jersey; royalties from the use in New Jersey of

patents or copyrights; all other business receipts earned in New

Jersey.

(d) LINES 2(e) and 2(g)

(1) RECEIPTS FROM SALES OF CAPITAL ASSETS:

Receipts from sales of capital assets (property not held by

the taxpayer for sale to customers in the regular course of

business), either within or outside New Jersey, should be

included in the numerator and the denominator based upon

the net gain recognized and not upon gross selling prices.

Where the taxpayer’s business is the buying and selling of

real estate or the buying and selling of such securities for

trading purposes, gross receipts from the sale of such assets

should be included in the numerator and the denominator of

the receipts fraction.

(2) DIVIDEND INCOME: The amount of dividends excluded

from entire net income at line 40, Schedule A, must not be

included in the numerator or denominator of the receipts

fraction.

(e) Lines 2(h) and 2(i) - The percentage of receipts in New Jersey

should be entered on both lines 2(h) and 2(i) to effect a double-

weighted receipts fraction in the computation of the allocation

factor.

(f) LINE 3 - PAYROLL FRACTION: In general, a taxpayer

reporting to the Division of Employment Security in the New

Jersey Department of Labor will allocate to New Jersey all

wages, salaries and other personal service compensation, etc.,

reportable to that Division, including the portions thereof, in

individual cases, in excess of taxable wages. All executive

salaries are includible in both the numerator and denominator.

See N.J.S.A. 54:10A-7 for the definition of wages, salaries and

other personal services compensation allocable to New Jersey.

(g) ALLOCATION FACTOR - GENERAL: The allocation

factor is computed by adding together the percentages shown at

lines 1(c), 2(h), 2(i) and 3(c) of Schedule J, Part III for the

period covered by the return, and dividing the total of the

percentages by four (4). However, if the property or payroll

fraction is missing, the remaining percentages are added and the

sum is divided by three. If the receipts fraction is missing, the

other two percentages are added and the sum is divided by two.

If two of the fractions are missing, the remaining percentage

may be used as the allocation factor. A fraction is not missing

merely because its numerator is zero, but is missing if its

denominator is zero.

If there is a declaration of nonoperational income, expenses, or

assets from Schedule O, those items attributable to the non-

operational activity should be excluded from the denominator of

all three fractions of the allocation factor.

27. SCHEDULE K - SHAREHOLDERS’ SHARES OF INCOME,

DEDUCTIONS, ETC.

(a) PART I

Line 1 - Enter the total number of shareholders as of the closing

date of this return.

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Line 2 - Enter the total number of nonresident shareholders

included on line 1 above.

Lines 3(a) and (b) - Enter the total number of nonconsenting

shareholders included on line 1 and the percentage of stock

owned as of the closing date of this return.

(b) PART II

Lines 2(a) - (l) - Enter the amounts of income or loss as reported

on the corresponding lines of your Federal Form 1120S,

Schedule K.

Lines 4(a) - (d) Additions

(a) Enter any State and municipal interest income that was not

included in line 3. Do not include interest received or

credited from obligations of the State of New Jersey or any

of its political subdivisions.

(b) Enter the total taxes paid or accrued to the United States, a

state, a political subdivision thereof, or the District of

Columbia on or measured by profits or income, or business

presence or business activity, including income taxes paid or

accrued by the corporation on behalf of, or in satisfaction of

the liabilities of, the shareholders of the corporation, taken as

a deduction on the CBT-100S, Schedule A and reflected in

line 3, Part II of Schedule K.

expenses paid and incurred to purchase, carry, manage or

conserve, and expenses of collection of the income or gain

from obligations the income or gain from which is

deductible pursuant to N.J.S.A. 54A:6-14 and 6-14.1, and

reflected in line 3, Part II of Schedule K.

(d) Enter any losses reflected in line 3 that are not deductible for

Gross Income Tax pursuant to N.J.S.A. 54A:6-14 and 6-

14.1, i.e. losses from exempt Federal obligations and/or

obligations of the State of New Jersey or its political

subdivisions.

Lines 6(a) - (e) Subtractions

(a) Enter any interest income reflected in line 3 that is not

subject to Gross Income Tax pursuant to N.J.S.A. 54A:6-14

and 6-14.1, i.e. interest income on exempt Federal

obligations.

(b) Enter any gains reflected in line 3 that are not subject to New

Jersey Gross Income Tax pursuant to N.J.S.A. 54A:6-14 and

6-14.1, i.e. gains or losses from exempt Federal obligations

and/or obligations of the State of New Jersey or its political

subdivisions.

(d) 50% of meals and entertainment expenses not deductible for

Federal purposes.

(e) Other subtractions -

(1) Expenses to generate Federal tax exempt income that is

taxable for New Jersey Gross Income Tax purposes.

Attach schedule.

Line 1 (a) - If you have completed Schedule O - Nonoperational

Activity, enter the amount reported on Part I, line 34, of

Schedule O. If you have not completed Schedule O, enter zero

on this line. If the nonoperational income has already been

deducted from line 1 via adjustments made in Part II, make no

adjustments on this line.

Line 5 - If you have completed Schedule O - Nonoperational

Activity, enter the amount reported on Part III, line 31, column

C, Total Allocated New Jersey Portion. If you have not

completed Schedule O, enter a zero on this line.

(d) PART IV

Distributions for New Jersey tax purposes should be made in the

same manner as for Federal tax purposes following the rules

listed in Sections 1368 and 1371 of the Internal Revenue Code.

(e) PART IV-A

ANALYSIS OF NEW JERSEY ACCUMULATED

ADJUSTMENTS ACCOUNT (AAA) - This account reflects

New Jersey S corporation earnings after a New Jersey S

corporation election has been filed and approved.

NOTE: If applicable, the allocation percentage from Schedule

K, Part III, line 3 should be used for all allocated amounts

indicated below.

1. Column A includes:

Resident - All items of income, loss, reduction or

distribution regardless of where it is generated (include

both allocated and non-allocated amounts).

Nonresident - Items of income, loss, reduction or

distribution generated from New Jersey sources (include

allocated amounts only).

2. Column B includes:

Resident - No items.

Nonresident - Items of income, loss, reduction or

distribution generated from non-New Jersey sources

(include non-allocated amounts only).

Line 1 - Enter the prior year ending balance of the New Jersey

Accumulated Adjustments Account (AAA). For the first year of

the New Jersey S corporation election, the beginning balance of

the New Jersey AAA account will be zero.

Line 2 - Enter the net pro rata share of allocated and non-

allocated S corporation income or loss for resident shareholders

and the net pro rata share of allocated S corporation income for

nonresident shareholders.

Line 3 - Enter the total of the allocated and non-allocated tax-

exempt income or loss for resident shareholders and the

allocated tax-exempt income or loss for nonresident

shareholders.

Line 4 - Enter the total of the allocated and non-allocated other

reduction(s) for resident shareholders and the allocated other

reduction(s) for nonresident shareholders. Other reductions

include charitable contributions made by the S corporation,

taxes based on income paid by the S corporation (the taxes

added back on Schedule K, Part II, line 4b), health or life

insurance paid by the S corporation, fines and penalties paid by

the S corporation, club dues paid by the S corporation, and any

foreign taxes paid by the S corporation. Also, other reductions

should include any other adjustments for expenses which are

nondeductible for federal income tax purposes in determining

income but must be taken into consideration in calculating the

ending balance of AAA in the year the expenses are incurred or

paid, and are not already included in Schedule K, Part II.

Provide a Schedule detailing other reductions.

Line 5 - Enter the total of lines 1, 2, 3 and 4.

Line 6 - Enter the total of the allocated and non-allocated

distribution(s) for the resident shareholder and the allocated

distribution(s) for the nonresident shareholder. Federal rules

governing distributions must be followed.

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(f) PART IV-B

NEW JERSEY EARNINGS AND PROFITS ACCOUNT -

This account reflects New Jersey C corporation earnings prior to

any New Jersey S corporation election.

Line 1 - Enter the beginning balance of the New Jersey E & P

account. For the first year of the New Jersey S corporation

election, the beginning balance of the earnings and profits

account will be the retained earnings of the corporation prior to

the New Jersey S election. If the retained earnings of the

corporation prior to the New Jersey S election is a negative

amount, enter ZERO.

Line 2 - Enter any additions or adjustments that must be made

for Federal income tax purposes.

Line 3 - Enter any dividends paid during the tax year from the

earnings and profits account. Refer to instruction 27(e), line 6.

(g) PARTS V, VI and VII

Complete Parts V, VI and VII including shareholders’ full

names and social security numbers. List ALL shareholders in

the S corporation receiving either a Federal or New Jersey K-1.

Report all distributions issued to shareholders during the

reporting period whether in cash or property. If additional space

is required, attach separate schedules in the exact format for the

additional shareholders.

1. PART V - For resident shareholders, indicate their pro rata

share of S corporation income from all sources.

2. PART VI - For consenting non-resident shareholders,

indicate the income/loss allocated to New Jersey in column

column (D).

3. PART VII - For nonconsenting non-resident shareholders,

indicate the income/loss allocated to New Jersey in column

column (D). Enter on page 1, lines 16 and 17 of the CBT-

100S, the totals reported from Part VII, column (C), the

income allocated to New Jersey, and column (F), Gross

Income Tax Paid, respectively. If the income allocated to

New Jersey is a loss, enter a zero (0) on lines 16 and 17 on

page 1 of the CBT-100S.

28. SCHEDULE N - NEXUS - IMMUNE ACTIVITY DECLA-

RATION: Foreign corporations that claim their income is immune

from taxation pursuant to Public Law 86-272, 15 U.S.C. § 381 et

seq., must complete Schedule N and file it with the CBT-100S. This

schedule may be obtained from the Taxpayer Forms Service which

can be contacted by following the instructions on the bottom of page

13.

29. SCHEDULE O - NONOPERATIONAL ACTIVITY:

Corporations that claim to have nonoperational activity,

nonoperational assets or non-unitary partnership investments must

complete Schedule O and file it with the CBT-100S. This schedule

may be obtained from the Taxpayer Forms Service which can be

contacted by following the instructions on the bottom of page 13.

Complete lines 4(a) and 4(b) on page 1 only if a completed Schedule

O is attached to the return.

30. SCHEDULE P - SUBSIDIARY INVESTMENT ANALYSIS:

Itemize the investment in each subsidiary company, showing the

name of each subsidiary, the percentage of interest held in each

company, the individual book value included in the balance sheet

for each subsidiary investment and the amount of dividends

received from each subsidiary which is included in gross income on

Schedule A. Do not include advances or other receivables due to

subsidiaries in the book value reported at Column 3.

31. SCHEDULE P-1 - PARTNERSHIP INVESTMENT

ANALYSIS: Itemize the investment in each partnership, limited

liability company and any other entity which is treated for Federal

tax purposes as a partnership. List the name, the date and state

where organized, and the Federal Identification number for each

partnership. Also, check the type of ownership (general or limited),

the tax accounting method used to reflect your share of partnership

activity on this return (flow through method or separate accounting)

and whether or not the partnership has nexus in New Jersey. Attach

a copy of Schedule NJ-K-1 from form NJ-1065 if the partnership is

filing in New Jersey, or the Federal Schedule K-1 if not. Any one

member limited liability company should be included on this

schedule. Corporations who claim that their partnership

investments are non-unitary and therefore are utilizing the Separate

Tax Accounting Method must complete Schedule O to report this

activity and compute the appropriate amount of tax.

32. SCHEDULE Q - QUALIFIED SUBCHAPTER S

SUBSIDIARIES (QSSS): All Federal S Corporations which are

treated federally as a Qualified Subchapter S Subsidiary (QSSS)

will be recognized accordingly by New Jersey. However, to qualify

as a New Jersey QSSS, a copy of Federal Form 966 and a New

Jersey Form CBT-2553 signed by a corporate officer in which the

corporate parent shareholder consents to taxation by New Jersey

must be submitted. The Corporation Business Tax return of the

New Jersey QSSS will reflect a $200 minimum tax liability. The

assets, liabilities, income and expenses will be treated as those of the

parent corporation. Failure to file either a Federal Form 966 or a

New Jersey Form CBT-2553 with the corporate parents consent to

taxation by New Jersey will result in the denial of New Jersey QSSS

status and subject the entity to taxation in New Jersey as a C

corporation. A New Jersey QSSS, is required to annually file page

1 and Schedule Q of the Corporation Business Tax return and Form

CAR-100, the Corporation Business Tax Payment and Annual

Report form.

33. SCHEDULE R - DIVIDEND EXCLUSION: Taxpayers may

exclude from entire net income 100% of dividends from qualified

subsidiaries, if such dividends were included in the taxpayer’s gross

income on Schedule A. A qualified subsidiary is defined as

ownership by the taxpayer of at least 80 percent of the total

combined voting power of all classes of stock entitled to vote and at

least 80 percent of the total number of shares of all other classes of

stock, except non-voting stock which is limited and preferred as to

dividends. With respect to other dividends, the exclusion shall be

limited to 50% of such dividends included in the taxpayer’s gross

income on Schedule A. Taxpayers shall not include money market

fund income as part of the dividend exclusion.

34. SCHEDULE S - DEPRECIATION AND SAFE HARBOR

LEASING: All taxpayers except for gas, electric, and gas and

electric utilities (who must complete Schedule S, Part III) must

complete this schedule and must submit a copy of a completed

Federal Depreciation Schedule, Form 4562 even if it is not required

for Federal purposes. Schedule S provides for adjustments to

depreciation and certain safe harbor leasing transactions.

SCHEDULE S - PART I

Line 10 Additions:

(a) Add any depreciation or cost recovery (ACRS and MACRS)

which was deducted in arriving at Federal taxable income on

recovery property placed in service on or after January 1, 1981

and prior to taxpayers’ accounting periods beginning on and

after July 7, 1993.

(b) Add distributive share of ACRS and MACRS from a

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partnership.

other deduction which was claimed in arriving at Federal taxable

income as a result of a “safe harbor leasing” election made under

Section 168(f)(8) of the Federal Internal Revenue Code;

provided, however, any such amount with respect to a qualified

mass commuting vehicle pursuant to the Federal Internal

Revenue Code Section 168(f)(8)(D)(v) need not be added back

to net income.

Line 11 Deductions:

(a) Deduct depreciation on property placed in service after 1980 and

prior to taxpayers’ fiscal or calendar accounting periods

beginning on and after July 7, 1993 on which ACRS and

MACRS has been disallowed under 10(a) of this instruction

using any method, life and salvage value which would have been

allowable under the Federal Internal Revenue Code at December

31, 1980 but using the Federal basis for depreciation on the date

the property was placed in service.

(b) Deduct recomputed depreciation attributable to distributive share

of recovery property from a partnership.

taxable income solely as a result of a “safe harbor leasing”

election made under Section 168(f)(8) of the Federal Internal

Revenue Code provided, however, that any such income which

relates to a qualified mass commuting vehicle pursuant to

Federal Internal Revenue Code Section 168(f)(8)(D)(v) cannot

be deducted from net income.

(d) Where the user/lessee of qualified lease property which is

precluded from claiming a deduction for rent under 10(c) of this

instruction would have been entitled to cost recovery on property

which is subject to such “safe harbor lease” election in the

absence of that election, it may claim depreciation on the

property in accordance with 11(a) of this instruction.

(e) Gain or loss on property sold or exchanged is the amount

properly to be recognized in the determination of Federal taxable

income. However, on the physical disposal of recovery property,

whether on not a gain or loss is properly to be recognized under

the Federal Internal Revenue Code, there shall be allowed as a

deduction any excess, or there must be restored as an item of

income, any deficiency of depreciation disallowed at line 10(a)

over related depreciation claimed on that property at line 11(a).

A statutory merger or consolidation shall not constitute a

disposal of recovery property.

NOTE: Uncoupling is not required for property placed into service

during accounting periods beginning on or after July 7,

1993.

SCHEDULE S - PART III

All gas, electric and gas, and electric utilities must complete this

schedule in order to compute their New Jersey depreciation

allowable for the single asset account which is comprised of all

depreciable property placed in service prior to January 1, 1998. The

basis of this asset account will be the total Federal depreciable basis

as of December 31, 1997 plus the excess of the book depreciable

basis over the Federal tax basis as of December 31, 1997. This basis

will be reduced yearly by the Federal basis of these assets sold,

retired or disposed of from January 1, 1998 to date.

35. SCHEDULE NJ-K-1 - SHAREHOLDER’S SHARE OF

INCOME / LOSS: A copy of each shareholder’s Schedule NJ-K-1

must be attached to the CBT-100S. A copy of each NJ-K-1 must be

kept as part of the corporation’s records, and a separate copy must be

supplied to each individual shareholder on or before the date on

which the CBT-100S is to be filed. The instructions for this

schedule can be found on the reverse side of the form.

36. FORM NJ-1040-SC - PAYMENT ON BEHALF OF NON-

CONSENTING SHAREHOLDERS: A copy of each NJ-1040-SC

filed by the corporation on behalf of any nonconsenting shareholder

must be attached to the CBT-100S. A copy must be retained by the

corporation as part of its records, and a copy must also be supplied

to the shareholder on whose behalf the NJ-1040-SC was filed on or

before the due date of the CBT-100S. The instructions for this form

can be found on the reverse side of the form.

37. TAX CREDITS: (Refer to instruction 17)

(a) NEW JOBS INVESTMENT TAX CREDIT: This tax credit is

available for investment in new or expanded business facilities

that create new jobs in New Jersey. The investment must create

at least 5 new jobs (50 for large businesses), with a median

annual compensation of $30,700 for tax years beginning in 1998

and $31,050 for tax years beginning in 1999. New investment is

not eligible for the credit unless the average value of all real and

tangible personal property in this State has increased over the

prior year.

The facilities must have been purchased from an unrelated party

during or after the taxpayer’s accounting period beginning on or

after July 7, 1993, the effective date of this legislation. It must

be employed by the taxpayer in a taxable activity and must not

have been in use during the 90 day period prior to purchase.

Investments which qualify for the Manufacturing Equipment and

Employment Investment Tax Credit cannot also qualify for this

credit.

A new employee means a New Jersey resident, hired to fill a

regular, permanent position in this State which did not exist prior

to the qualified investment, and would not exist but for the

qualified investment. The employee must be unrelated to the

taxpayer and must not have been employed by the taxpayer

during the six months prior to the date the investment was placed

in service or use.

The taxpayer cannot claim a credit for a number of new

employees that exceeds either the increase in the taxpayer’s

average employment for the tax year, or one-half of the

taxpayer’s average employment for the year. Also, individuals

counted in determining the New Jobs Factor must not be ones for

whom the taxpayer is allowed an Urban Enterprise Zone or

Urban Development Project Employees Tax Credit.

A small business taxpayer in 1999 means a taxpayer with an

annual payroll of not more than $2,304,150 and annual gross

receipts of not more than $6,910,050.

To claim this credit, the taxpayer must complete Form 304 and

attach it to the tax return. This form and related information may

be obtained from the Taxpayer Forms Service which can be

contacted by following the instructions on the bottom of page 13.

(b) URBAN ENTERPRISE ZONE TAX CREDITS: A taxpayer

which has been designated as a “qualified business” as defined

in the New Jersey Urban Enterprise Zones Act, N.J.S.A. 52:27H-

60 et seq., may qualify for either an employee tax credit or an

investment tax credit. To be eligible, the taxpayer must have

been certified as a qualified business by the Urban Enterprise

Zones Authority. Certification is renewable annually. The urban

enterprise zones are located in Asbury Park, Bridgeton, Camden,

Carteret, East Orange, Elizabeth, Guttenberg, Hillside,

Irvington, Jersey City, Kearny, Lakewood, Long Branch,

Millville, Mount Holly, Newark, North Bergen, Orange, Passaic,

Paterson, Pemberton Township, Perth Amboy, Phillipsburg,

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Plainfield, Pleasantville, Trenton, Union City, Vineland and

West New York. Further information can be obtained from

the New Jersey Urban Enterprise Zones Authority,

Department of Commerce and Economic Development, PO

Box 829, Trenton, New Jersey 08625-0829, phone (609) 292-

1912.

The forms required to validate the employee tax credit (Form

300) and the investment tax credit (Form 301) are available

from the Taxpayer Forms Service which can be contacted by

following the instructions on the bottom of page 13. Specific

information on these tax credits can be obtained from the Tax

Services Branch, phone (609) 292-5994.

(1) Employees Tax Credit: This credit is available to a

taxpayer who was certified as a qualified business in the

preceding tax year as well as the current tax year.

Qualifying employees must have been hired after

certification and must have worked six consecutive

months in the tax year following the tax year in which

employment began. To claim the credit, a completed

Form 300 must be attached to the tax return.

(2) Investment Tax Credit: A qualified business which is

not entitled to an employees tax credit may be entitled to

the investment tax credit. This credit is only available to

an employer with less than 50 employees. The investment

must be at least $5,000 if there are 10 or fewer employees,

and increases by $500 for each additional employee. To

qualify for the credit, the investment must be approved by

the Urban Enterprise Zones Authority. A completed Form

301 must be attached to the tax return to validate the

investment tax credit claim.

CREDIT : Any taxpayer who is actively engaged in the

conduct of business at a location within a project as defined

in N.J.S.A. 55: 19-1 et seq., and whose business at that

location consists primarily of manufacturing or other

business that is not retail sales or warehousing oriented, may

be entitled to claim the Redevelopment Authority Project Tax

Credit. This credit is allowed in the tax year next following

the tax year of qualification. To claim the credit, the taxpayer

must complete Form 302 and attach it to the return. This

form and related information may be obtained from the

Taxpayer Forms Service which can be contacted by following

the instructions on the bottom of page 13. Inquiries regarding

the projects should be directed to the New Jersey

Redevelopment Authority, PO Box 834, Trenton, New Jersey

08625-0834, phone (609) 292-3732.

(d) RECYCLING EQUIPMENT TAX CREDIT: A taxpayer

who purchased qualified recycling equipment on or after

October 1, 1987 and who received a certification for this

equipment from the Commissioner of the Department of

Environmental Protection may be eligible to claim the

Recycling Equipment Tax Credit. The recycling equipment

must have been used exclusively within New Jersey, except

for vehicles which must have been used primarily within New

Jersey.

The legislation governing this tax credit expired on

December 31, 1996, however, any unused credits claimed

prior to January 1, 1997, can be taken on the current tax

return subject to the limitations set forth on Form 303.

To claim this credit, the taxpayer must complete Form 303

and attach it to the tax return. This form and related

information may be obtained from the Taxpayer Forms

Service which can be contacted by following the instructions

on the bottom of page 13.

(e) MANUFACTURING EQUIPMENT AND

EMPLOYMENT INVESTMENT TAX CREDIT:

Investments in qualified manufacturing equipment made in

tax years beginning on or after January 1, 1994 may be

eligible for the Manufacturing Equipment and Employment

Investment Tax Credit. Such investment has the benefit of

allowing a tax credit computation for the tax year in which

the investment was made as well as each of the following two

tax years. The tax credit computation for the first year is

based on the cost of the qualified manufacturing equipment

placed in service in New Jersey during that tax year. The

computations for the two following tax years are based on the

average increase in New Jersey residents employed in New

Jersey subject to a limitation based on the cost of the

investment made in the first year.

The manufacturing equipment portion is limited to 2% of the

investment credit base of qualified equipment placed in

service in the tax year, up to a maximum allowed credit for

the tax year of $1,000,000. The employment investment

portion is valid for each of the two tax years next succeeding

the tax year for which the manufacturing equipment credit is

allowed, but is limited to 3% of the investment credit base,

not to exceed a maximum allowable amount for each of the

two tax years of $1,000 multiplied by the increase in the

average number of qualified employees.

To claim this credit, the taxpayer must complete Form 305

and attach it to the tax return. This form and related

information may be obtained from the Taxpayer Forms

Service which can be contacted by following the instructions

on the bottom of page 13.

(f) RESEARCH AND DEVELOPMENT TAX CREDIT: A

taxpayer who has performed qualified research activities in

New Jersey may be eligible to claim the Research and

Development Tax Credit. A credit for increased research

activities is allowed based on qualified expenditures made in

taxable years beginning on and after January 1, 1994. It

provides a credit of 10% of the excess qualified research

expenses over a base amount plus 10% of the basic research

payments.

Qualified research is limited to scientific experimentation or

engineering activities designed to aid in the development of a

new or improved product, process, technique, formula,

invention, or computer software programs held for sale, lease,

or license, or used by the taxpayer in a trade or business. For

in-house research expenses (see Section 41(b)(2) of the

Internal Revenue Code), this trade or business requirement

will be met if the taxpayer’s principal purpose for conducting

the research is to use the results of the research in the active

conduct of a future trade or business (see Section 41(b)(4) of

the Internal Revenue Code).

An 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. To claim this credit, the

taxpayer must complete Form 306 and attach it to the tax

return. This form and related information may be obtained

from the Taxpayer Forms Service which can be contacted by

following the instructions on the bottom of page 13.

(g) SMART MOVES FOR BUSINESS PROGRAMS TAX

CREDIT (FORMERLY THE EMPLOYER TRIP

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REDUCTION PLAN - RIDE SHARE TAX CREDIT): A

taxpayer who has registered with the New Jersey Department of

Transportation and who has an authorized report/plan to provide

commuter transportation benefits may claim a tax credit based

on the direct expenditures attributed to the plan.

The credit may be taken for expenditures attributed to

authorized plans approved after January 1, 1994. Taxpayers

subject to more than one tax for which the credit can be applied

must prorate the credit amount available based on the amount

that each liability has to the total of the liabilities in the reporting

period.

The ride share credit is equal to 10% of the cost of commuter

transportation benefits provided during the reporting period.

The maximum calculation equals the per employee limit

multiplied by the number of participating employees. The per

employee limit is adjusted annually in proportion to the

consumer price index.

To claim this credit, the taxpayer must complete Form 307 and

attach it to the tax return. This form and related information

may be obtained from the Taxpayer Forms Service which can be

contacted by following the instructions on the bottom of page

13.

(h) SMALL NEW JERSEY-BASED HIGH-TECHNOLOGY

BUSINESS INVESTMENT TAX CREDIT: A taxpayer may

claim a tax credit in an amount equal to 10% of the qualified

investment made by the taxpayer during the tax year in a small-

New Jersey-based high-technology business. The maximum

allowable credit for each tax year is $500,000 for each qualified

investment made by the taxpayer. The small high-technology

business must employ less than 225 employees, of which 75%

must have jobs in New Jersey. The small high-technology

business must conduct pilot scale manufacturing or qualified

research in New Jersey in the fields of advanced computing,

advanced materials, biotechnology, electronic device

technology, environmental technology, and medical device

technology.

To claim this credit, the taxpayer must complete Form 308 and

attach it to the tax return., This form and related information

may be obtained from the Taxpayer Forms Service which can be

contacted by following the instructions on the bottom of page

13.

(i) NEIGHBORHOOD AND BUSINESS CHILD CARE TAX

CREDIT: A taxpayer that is a member of a small-medium

business child care consortium for the three-year demonstration

program in accordance with section 4 of P.L. 1999,c.108, may

claim a tax credit in an amount equal to 15% of the taxpayer’s

expenditures made during the privilege period for child care

center physical plant or facilities. The expenditure may be for a

child care center owned and operated by the consortium or by a

contracted sponsoring organization. This expenditure must be

made on or after the designation of the consortium and before

the expiration of the demonstration program.

Also, a taxpayer may claim a tax credit in an amount equal to

10% of the taxpayer’s contribution made during the privilege

period to a sponsor of a neighborhood-based child care center

that was awarded a program grant. To qualify, the contribution

must be made on or after the awarding of the grant and before

the expiration of the demonstration program.

To claim this credit, the taxpayer must complete Form 309 and

attach it to the tax return. This form and related information

may be obtained from the Taxpayer Forms Service which can be

contacted by following the instructions on the bottom of page

13.

38. INSTALLMENT PAYMENTS: Taxpayers are required to make

installment payments of estimated tax. The requirement for making

these payments is based on the amount of the total tax liability

shown on the most recent return.

(a) If the 1999 Total Tax Liability is $500 or more, the taxpayer

must make installment payments towards 2000. These

payments are to be made on form CBT-150 and are due on or

before the 15th day of the 4th, 6th, 9th and 12th months of the

tax year. Details for making these payments can be found in the

CBT-150 instruction booklet.

(b) If the 1999 Total Tax Liability is less than $500, installment

payments may be made as indicated in (a) above OR in lieu of

making installment payments, the taxpayer may make a

payment of 50% of the 1999 total tax liability. For taxpayers

who qualify and wish to take advantage of this option, enter on

line 12, 50% of the amount on line 11. This will become part of

the payment to be made with the 1999 return and installment

payments will not be required. This payment should be claimed

as a credit when filing the 2000 return.

39. PAYMENTS AND CREDITS: Credit for the total amount of the

payments and credits listed below should be taken on page 1, line

14:

(a) Include installment tax payments made with the form CBT-150

as well as any payment made on line 14 of the 1998 CBT-100

or line 12 of the 1998 CBT-100S.

(b) Include the payment, if any, that was remitted with the tentative

return, form CBT-200-T.

the taxpayer elected to have credited to the current year’s tax.

Do not include any amount of the overpayment which the

taxpayer elected to have refunded.

(d) Include any payments remitted electronically through the

Electronic Funds Transfer Program.

40. LINE 18 -DELINQUENT FILING AND/OR TAX PAYMENT-

COMPUTATION OF PENALTY AND INTEREST:

Late Filing Penalty - 5% per month or fraction thereof of the total

tax liability not to exceed 25% of such tax liability. Also, a penalty

of $100 for each month the return is delinquent may be imposed.

For return periods beginning on or after January 1, 1999, late filing

penalty is calculated at 5% per month or fraction thereof of the

amount of underpayment not to exceed 25% of that underpayment,

except if no return has been filed within 30 days of the date on

which the first notice of delinquency in filing the return was sent,

the penalty shall accrue at 5% per month or fraction thereof of the

total tax liability not to exceed 25% of such tax liability.

Late Payment Penalty - 5% of the balance of Corporation Business

Tax and/or Gross Income Tax due paid after the due date for filing

the return may be imposed.

Interest - The annual interest rate is 3% above the average

predominant prime rate. Interest is imposed each month or fraction

thereof on the unpaid balance of Corporation Business Tax and/or

Gross Income Tax from the original due date to the date of payment.

At the end of each calendar year, any tax, penalties and interest

remaining due will become part of the balance on which interest

will be charged. The interest rates assessed by the Division of

Taxation are published in the quarterly issues of the New Jersey

State Tax News. To obtain a copy, refer to the instructions at the

bottom of page 13.

NOTE: The average predominant prime rate is the rate as

determined by the Board of Governors of the Federal Reserve

System, quoted by commercial banks to large businesses on

- 11 -

December 1st of the calendar year immediately preceding the

calendar year in which payment was due or as redetermined by the

Director in accordance with N.J.S.A. 54:48-2.

Civil Fraud - If any part of an assessment is due to civil fraud, there

shall be added to the tax an amount equal to 50% of the assessment

in accordance with N.J.S.A. 54:49-9.1

41. LINE 19 - UNDERPAYMENT OF ESTIMATED TAX: The

form CBT-160 must be used by taxpayers to determine whether an

underpayment exists in any of the installment payment periods or if

the corporation is subject to an interest charge, and if so, the amount

of interest. If the taxpayer qualifies for any of the exceptions to the

imposition of interest for any of the installment payments, Part II

must be completed and should be filed with the taxpayer’s return,

form CBT-100S, as evidence of such exception. The CBT-160

must be attached to the return and any interest due entered on Line

19, Page 1 of the form CBT-100S.

42. AMENDED RETURNS: To amend CBT-100S returns, use the

CBT-100S form for the appropriate tax year and write “AMENDED

RETURN” clearly on the front page of the form. Refer to

instruction 1 for the mailing address.

- 12 -

- 13 -

LIST OF CBT-100S SCHEDULES, FORMS AND INSTRUCTIONS

Page 1 . . . . . . . . . . . . . . . . . . Computation of Tax

Schedule A . . . . . . . . . . . . . . . Computation of Entire Net Income

Schedule A-1 . . . . . . . . . . . . . . Net Operating Loss Deduction and Carryover

Schedule A-2 . . . . . . . . . . . . . . Cost of Goods Sold

Schedule A-3 . . . . . . . . . . . . . . Summary of Tax Credits

Schedule B . . . . . . . . . . . . . . . Balance Sheet

Schedule C . . . . . . . . . . . . . . . Reconciliation of Income Per Books with Income Per Return

Schedule E . . . . . . . . . . . . . . . General Information

Schedule F . . . . . . . . . . . . . . . Corporate Officers - General Information and Compensation

Schedule H . . . . . . . . . . . . . . . Taxes

Schedule J . . . . . . . . . . . . . . . General Information for Allocating Taxpayers, Average Values,

Computation of Allocation Factor

Schedule K . . . . . . . . . . . . . . . Shareholders’ Shares of Income, Deductions, Etc.

Schedule N * . . . . . . . . . . . . . . Nexus - Immune Activity Declaration

Schedule NJ-K-1 . . . . . . . . . . . Shareholder’s Share of Income/Loss

Schedule O * . . . . . . . . . . . . . . Nonoperational Activity

Schedule P . . . . . . . . . . . . . . . Subsidiary Investment Analysis

Schedule P-1 . . . . . . . . . . . . . . Partnership Investment Analysis

Schedule Q . . . . . . . . . . . . . . . Qualified Subchapter S Subsidiaries (QSSS)

Schedule R . . . . . . . . . . . . . . . Dividend Exclusion

Schedule S . . . . . . . . . . . . . . . Depreciation and Safe Harbor Leasing

Form NJ-1040-SC . . . . . . . . . . Payment on Behalf of Nonconsenting Shareholders

Form NJ-1080-C * . . . . . . . . . . Gross Income Tax - Nonresident Composite Return

Form 300 * . . . . . . . . . . . . . . . Urban Enterprise Zone Employees Tax Credit and Credit Carry Forward

Form 301 * . . . . . . . . . . . . . . . Urban Enterprise Zone Investment Tax Credit and Credit Carry Forward

Form 302 and 302-A * . . . . . . . Redevelopment Authority Project Tax Credit and Credit Carry Forward

Form 303 * . . . . . . . . . . . . . . . Recycling Equipment Tax Credit

Form 304 and 304-A * . . . . . . . New Jobs Investment Tax Credit

Form 305 and 305-A * . . . . . . . Manufacturing Equipment and Employment Investment Tax Credit

Form 306 and 306-A * . . . . . . . Research and Development Tax Credit

Form 307 and 307-A * . . . . . . . Smart Moves for Business Programs Tax Credit

Form 308 and 308-A * . . . . . . . Small New Jersey-Based High-Technology Business Investment

Tax Credit

Form 309 and 309-A * . . . . . . . Neighborhood and Business Child Care Tax Credit

* Must be requested from the Division’s Taxpayer Forms Service.

TAX FORMS AND INFORMATION

Requests for forms should be addressed to the New Jersey Division of Taxation, Taxpayer Forms Service, PO Box 269, Trenton, NJ

08646-0269. To listen to prerecorded information or to order forms and publications, dial 1-800-323-4400 from touch-tone phones

within New Jersey, or 609-826-4400 from touch-tone phones anywhere. Requests to receive the New Jersey State Tax News must

be made in writing to the New Jersey Division of Taxation, Office of Communication, PO Box 281, Trenton, NJ 08646-0281. If you

wish to speak to a Division representative, contact the Division of Taxation’s Call Center at 609-292-6400.

Many State tax forms and publications are available by fax and/or through the World Wide Web. Call NJ TaxFax at 609-826-4500

from your fax machine’s phone, or access the Division’s home page via your computer’s modem at:

http://www.state.nj.us/treasury/taxation/

COMPUTATION OF TENTATIVE TAX

1. Total Tentative Tax for Current Period

IMPORTANT: See Instruction 5 regarding minimum tax requirements. . . . . . . . . . . . . . . . . . . . . . . 1

2. Installment Payment (See Instruction 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3. Combined Total (Line 1 plus Line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4. Credits:

(a) Installments Paid

(Including payment on prior year’s return, if any) . . . . . . . . . . . . . 4(a)

(b) Overpayment Claimed as a Credit

(From prior period) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4(b)

Total Credits (Add Lines (a) and (b)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5. Net Balance Remitted Herewith (Line 3 minus Line 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

WARNING: Penalties may be assessed for underestimation of tax. See Instruction 7 on reverse side.

Remittance should be made payable to “State of New Jersey” and forwarded with this return to:

Division of Taxation - Corporation Tax, Revenue Processing Center, PO Box 666, Trenton, NJ 08646-0666

Corporation Name

Mailing Address

City State Zip Code

State of New Jersey

DIVISION OF TAXATION

TENTATIVE RETURN AND APPLICATION FOR EXTENSION OF TIME TO FILE

The New Jersey Corporation Business Tax Return (Form CBT-100) or

The New Jersey S Corporation Business Tax Return (Form CBT-100S)

For Taxable Years Ending on and After July 31, 1999

(See instructions on reverse side. Type or print the requested information.)

CBT-200-T

10-99, R-21

For accounting period beginning ____________________, ___________ and ending ____________________, ___________

Federal Employer Identification Number

NJ Corporation Number

State and Date of Incorporation

APPLICATION IS HEREBY MADE FOR AN AUTOMATIC EXTENSION OF SIX (6) MONTHS FOR FILING THE COMPLETED

RETURN OF THE ABOVE CORPORATION UNDER THE CORPORATION BUSINESS TAX ACT (N.J.S.A. 54:10A-1 et seq.)

Remittance to cover the full amount of the net balance due, as per computation below, must accompany this application.

No extension will be granted in the absence of such remittance.

SIGNATURE AND VERIFICATION

I declare under the penalties of perjury that I have been authorized by the above-named corporation to make this application and that to the best of my

knowledge and belief the statements made herein are true and correct.

___________________________________________________________________________________________________________________________

(Date) (Signature of Duly Authorized Officer of Taxpayer) (Title)

___________________________________________________________________________________________________________________________

(Date) (Tax Preparer’s Signature) (Address) (Preparer’s I.D. Number)

___________________________________________________________________________________________________________________________

(Name of Tax Preparer’s Employer) (Address) (Employer’s I.D. Number)

CBT-200-T Page 2

(Rev. 10-99, R-21)

INSTRUCTIONS

1. AUTOMATIC EXTENSION - Where a tentative return and tax payment are timely and properly filed, it is the policy of

the Division of Taxation to grant an automatic extension of six (6) months for filing the CBT-100 or the CBT-100S. The

return must include the computation of the tax liabilities on Lines 1 through 3 and must be submitted with payment of the

total amount due reflected at Line 5. The application must be postmarked on or before the original due date of the tax

return.

2. MAXIMUM EXTENSION - The extended period may not exceed six (6) months from the original due date of the return.

Therefore, there will be no additional extensions beyond this automatic extension.

3. Request for extension of time for filing a return must be signed by an officer of the corporation, an accountant authorized

to prepare this return, or any duly authorized agent of the taxpayer. Tax preparers who fail to sign the return and provide

their assigned tax identification number shall be liable for a $25 penalty for each such failure. If the tax preparer is not self-

employed, the name of the tax preparer’s employer and the employer’s tax identification number should also be provided.

4. Where a request for extension is duly made, it will be granted by the Division. Approved extensions will not be confirmed

in writing. If your request for extension is denied, this application will be returned with the reason for the denial stated

hereon.

5. MINIMUM TAX: The minimum tax requirement for all periods is $200 for both domestic and foreign Corporations.

The minimum tax cannot be prorated. Zero (0) returns are not permitted.

6. INSTALLMENT PAYMENT - Any taxpayer with a tax liability of less than $500 at Line 1, may make a payment of 50

percent of Line 1 in lieu of making the installment payments otherwise required.

7. PENALTIES AND INTEREST

a. Interest - The annual interest rate is 3% above the average predominant prime rate. Interest is imposed each month

or fraction thereof on the unpaid balance of tax from the original due date to the date of payment. At the end of

each calendar year, any tax, penalties and interest remaining due will become part of the balance on which interest

will be charged.

NOTE: The average predominant prime rate is the rate as determined by the Board of Governors of the Federal

Reserve System, quoted by commercial banks to large businesses on December 1st of the calendar year

immediately preceding the calendar year in which payment was due or as redetermined by the Director in

accordance with N.J.S.A. 54:48-2.

b. Insufficiency Penalty - If the amount paid with the Tentative Return, Form CBT-200-T, is less than 90% of the

tax liability computed on Form CBT-100 or CBT-100S, or in the case of a taxpayer whose preceding return covered

a full 12 month period, is less than the amount of the tax computed at the rates applicable to the current accounting

year, the taxpayer may be liable for a penalty of 5% per month or fraction thereof on the amount of underpayment

from the original due date to the date of actual payment.

c. Late Filing Penalty - 5% per month or fraction thereof of the total tax liability not to exceed 25% of such tax

liability. Also, a penalty of $100 for each month the return is delinquent may be imposed. For return periods

beginning on or after January 1, 1999, late filing penalty is calculated at 5% per month or fraction thereof on the

amount of underpayment not to exceed 25% of that underpayment, except if no return has been filed within 30 days

of the date on which the first notice of delinquency in filing the return was sent, the penalty shall accrue at 5% per

month or fraction thereof of the total tax liability not to exceed 25% of such tax liability.

d. Late Payment Penalty - 5% of the balance of tax due after the due date for filing the return may be imposed.

YOUR REQUEST FOR EXTENSION HAS BEEN DENIED BECAUSE OF THE REASON INDICATED BELOW:

The request was not postmarked on or before the original due date of the tax return.

The maximum six (6) months extension has already been granted.

Your request was received without the payment of the tax due. Resubmit Form CBT-200-T with payment of the

amount indicated on Line 5. Your completed application must be returned by _______________________________

for consideration.

Your request was received without payment of the tax due.

Your request was received without computation of tax liabilities at Lines 1 through 3 or credits at Line 4.

Your remittance of $__________________________ has been credited to your account.

DIVISION USE

PAGES 1 AND 2 MUST BE COMPLETED ON THIS FORM. ONLY EXACT COPIES MAY BE SUBSTITUTED.

1. Entire net income (from Schedule A, line 43) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Allocation factor (from Schedule J, Part III, line 5) Non-allocating taxpayers should not make an entry on

Line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Allocated Net Income - Multiply line 1 by line 2. Non-allocating taxpayers must enter the amount

from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Tax - Multiply line 3 by .02 or, if applicable, by .005. (see instruction 10(a)) . . . . . . . . . . . . . . . . . . . . . . . . . 4.

4a. Total nonoperational income $__________________________ (Attach Schedule O, Part I) (see instruction 29)

4b. Tax Due (N.J. Nexus). (Attach Schedule O, Part III) (Do not enter amount from line 4) . . . . . . . . . . . . . . . . 4b

5. Allocated Entire Net Income subject to Federal corporate income taxation (from Schedule A, line 45) . . . . . . 5.

6. Tax - Multiply line 5 by .09 or, if applicable, by .075. (see instruction 10(b)) . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. AMOUNT OF TAX (lines 4 plus 4b plus 6) (see instruction 10(d) for minimum tax) . . . . . . . . . . . . . . . . . . . 7.

8. Credit for taxes paid to other jurisdictions (see instruction 26(a)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

9. Subtract line 8 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

10. Tax Credits (from Schedule A-3) (see instruction 17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

11. TOTAL TAX LIABILITY - line 9 minus line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.

12. INSTALLMENT PAYMENT (see instruction 38) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

13. Total of line 11 plus line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.

14. PAYMENTS & CREDITS (see instruction 39) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.

15. Balance of Tax Due - line 13 minus line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.

16. Prorata Share of S Corporation Income for nonconsenting shareholders (from Schedule K, Part VII, line 6,

Column (C)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.

17. Gross Income Tax paid on behalf of nonconsenting shareholders - Line 16 x .0637 . . . . . . . . . . . . . . . . . . . 17.

18. Penalty and Interest Due - (see instructions 7(c) and 40)

Penalty ______________________ Interest________________________ . . . . . . . . . . . . . . . . . .Total 18.

19. Interest from CBT-160 (see instruction 41) (Attach Form CBT-160) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.

20. Annual Report Fee _________________ Registered Agent Change Fee _________________ Total . . . . . . 20.

21. Total Balance Due - line 15 plus line 17 plus line 18 plus line 19 plus line 20 . . . . . . . . . . . . . . . . . . . . . . . . 21.

22. If line 14 is greater than line 13 plus line 17 plus line 18 plus line 19

plus line 20 enter the amount of overpayment . . . . . . . . . . . . . . . . . . $

23. Amount of Item 22 to be Credited to 2000 return Refunded

•

1999

CBT-100S

1999-S - Page 1

SIGNATURE AND VERIFICATION (See Instruction 12)

I declare under the penalties provided by law, that this return (including any accompanying schedules and statements) has been examined by me and to the best of my knowledge and

belief is a true, correct and complete return. If the return is prepared by a person other than the taxpayer, his declaration is based on all the information relating to the matters required

to be reported in the return of which he has knowledge.

__________________________________________________________________________________________________________________________________________________

(Date) (Signature of Duly Authorized Officer of Taxpayer) (Title)

__________________________________________________________________________________________________________________________________________________

(Date) (Signature of Individual Preparing Return) (Address) (Preparer’s ID Number)

__________________________________________________________________________________________________________________________________________________

(Name of Tax Preparer’s Employer) (Address) (Employer’s ID Number)

Date of N.J. S Corporation election ____________________________________

State and date of incorporation _______________________________________

Date authorized to do business in N.J. _________________________________

Federal business activity code________________________________________

Corporation books are in the care of ___________________________________

at _______________________________________________________________

Telephone Number (_________) _________________________________

DIVISION USE

RP NP A ______________ R ______________

Place the label provided below. Make necessary corrections on the label. Otherwise,

type or print the requested information. Check if address change appears below.

FEDERAL EMPLOYER I.D. NUMBER N.J. CORPORATION NUMBER

CORPORATION NAME

MAILING ADDRESS

CITY STATE ZIP CODE

Total gross receipts less returns and allowances $__________________________________

¨ Check if initial return ¨ Check if 1120-S filer ¨ Check if final return

NEW JERSEY CORPORATION BUSINESS TAX RETURN

FOR TAXABLE YEARS ENDING JULY 31, 1999 THROUGH JUNE 30, 2000

Taxable year beginning ___________________, 19____, and ending ____________________, _____

1. Gross receipts or sales _____________________ Less returns and allowances ____________________ . . . . 1

2. Cost of goods sold (Schedule A-2, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3. Gross profit - Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4. Net gain (loss) from Form 4797 (attach Form 4797) (see instruction 14(b)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5. Other income (loss) (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

6. Total Income (loss). Combine lines 3 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

7. Compensation of officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

8. Salaries and wages ______________________ Less jobs credit ____________________ . . . . . . . . . . . . . . . 8

9. Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

10. Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

11. Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

12. Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

13. Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

14a Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14a

14b Depreciation claimed on Schedule A-2 and elsewhere on return . . . . . . . . . . . . . 14b

14c Subtract line 14b from line 14a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14c

15. Depletion (do not deduct oil and gas depletion) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

16. Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

17. Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

18. Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

19. Other deductions (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

20. Total deductions (add lines 7 through 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

21. Ordinary income (loss) from trade or business activities. Subtract line 20 from line 6 (see instruction 14(a)(1)) . 21

22. a. Gross income from all rental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22a

b. Expenses related to the above rental activities (attach schedule) . . . . . . . . . . 22b

c. Net income (loss) from all rental activities. Subtract line 22b from 22a . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22c

23. Portfolio income (loss):

a. Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23a

b. Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23b

c. Royalty income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23c

d. Capital gain net income (attach Schedule D (Form 1120S)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23d

e. Other portfolio income (loss) (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23e

24. Net gain (loss) under section 1231 (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

25. Other income (loss) (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

26. Section 179 expense deduction (attach Form 4562) (see instruction 14(c)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

27. Deductions related to portfolio income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

28. Other deductions (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

29. Combine lines 21 through 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

30. Charitable contributions (limited to 10% of line 29) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

31. Taxable income before net operating loss and special deductions. Subtract line 30 from line 29.

(see instruction 14(a) (2) and (3)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

32. Interest on Federal, State, Municipal and other obligations not included above (see instruction 14(d)) . . . . . . . . 32

33. New Jersey State & other States income taxes deducted above (see instruction 14(e)) . . . . . . . . . . . . . . . . . . 33

34. Taxes paid by the corporation on behalf of the shareholder (see instruction 14(f)) . . . . . . . . . . . . . . . . . . . . . . . 34

35. Depreciation and other adjustments from Schedule S (see instruction 34) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

36. a. Deduction for Foreign Taxes paid, withheld or deemed paid (see instruction 14(h)) . . . . . . . . . . . . . . . . . . . 36a

b. Other deductions. Explain on separate rider (see instruction 14(h)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36b

c. Other additions. Explain on separate rider (see instruction 14(h)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36c

37. Entire net income before net operating loss deduction and dividend exclusion. Total of lines 31 through 36(c) . 37

38. Net operating loss deduction from Schedule A-1 (see instructions 14(i) and 15) . . . . . . . . . . . . . . . . . . . . . . . .38

39. Entire Net Income before dividend exclusion (line 37 minus line 38) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

40. Dividend exclusion from Schedule R, Line 5 (see instruction 14(j)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

41. ENTIRE NET INCOME (line 39 minus line 40) (see instruction 14(k)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

42. Entire Net Income that is subject to Federal corporate income taxation

(see instruction 14(l)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

43. Entire Net Income that is not subject to Federal corporate income taxation

(line 41 minus line 42. Carry to page 1, line 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

44. Allocation Factor (from Schedule J, Part III, line 5) . . . . . . . . . . . . . . . . . . . 44 •

45. Allocated Entire Net Income that is subject to Federal corporate income taxation

(line 42 multiplied by line 44. Carry to page 1, line 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

COMPUTATION OF ENTIRE NET INCOME 1999-S - Page 2

SCHEDULE A

NAME AS SHOWN ON RETURN FEDERAL ID NUMBER

(1) (2) (3) (4)

Loss Reported on Sch. A, line 31 Add N.J. ENI Adj.’s Excluding

Fiscal Year Ended (CBT-100S) or Sch. A, line 28 (CBT-100) the Dividend Exclusion Amount

1999-S - Page 3

SCHEDULE A-1 NET OPERATING LOSS DEDUCTION AND CARRYOVER (See Instructions 14(i) and 15)

N.J. NOL’S 1. ()

2. ()

3. ()

4. ()

5. ()

6. ()

7. ()

N.J. NOL’S Used 8.

10.

11.

12.

13.

14.

N.J. NOL Carryover 15. Total lines 1 - 14, Column 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE A-2 COST OF GOODS SOLD

1. Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Additional section 263A costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Other costs (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Total - Add lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. Cost of goods sold - Subtract line 7 from line 6. Enter here and on Schedule A, line 2 . . . . . . . . . . . 8.

SCHEDULE A-3 SUMMARY OF TAX CREDITS (See Instruction 17)

1. New Jobs Investment Tax Credit from Form 304 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. EITHER: a) Urban Enterprise Zone Employee Tax Credit from Form 300

OR b) Urban Enterprise Zone Investment Tax Credit from Form 301 . . . . . . . . . . . . . . . . . 2.

3. Redevelopment Authority Project Tax Credit from Form 302 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Recycling Equipment Tax Credit from Form 303 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Manufacturing Equipment and Employment Investment Tax Credit from Form 305 . . . . . . . . . . . . . 5.

6. Research and Development Tax Credit from Form 306 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Smart Moves For Business Programs Tax Credit from Form 307 . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. Small New Jersey-Based High-Technology Business Investment Tax Credit from Form 308 . . . . . . 8.

9. Neighborhood and Business Child Care Tax Credit from Form 309 . . . . . . . . . . . . . . . . . . . . . . . . . 9.

10. Total tax credits taken on this return - Add lines 1 through 9. Enter here and on page 1, line 10 . . 10.

1. Cash

2. Trade notes and accounts receivable (net)

3. Loans to stockholders / affiliates

4. Stock of subsidiaries

5. Corporate stocks

6. Bonds, mortgages and notes

7. New Jersey State and local government obligations

8. All other government obligations

9. Patents and copyrights

10. Deferred charges

11. Goodwill

12. All other intangible personalty (itemize)

13.

Total intangible personal property

(total lines 1 to 12)

14. Land

15. Buildings and other improvements

16. Machinery and equipment (net)

17. Inventories

18. All other tangible personalty (net) (itemize on rider)

19.

Total real and tangible personal property

(total lines 14 to 18)

20. Total assets (add lines 13 and 19)

Liabilities and Stockholder’s Equity

21. Accounts payable

22. Mortgages, notes, bonds payable in less than 1 year (attach schedule)

23. Other current liabilities (attach schedule)

24. Loans from stockholders / affiliates

25. Mortgages, notes, bonds payable in 1 year or more (attach schedule)

26. Other liabilities (attach schedule)

27. Capital stock

28. Paid-in or capital surplus

29. Retained earnings - appropriated (attach schedule)

30. Retained earnings - unappropriated

31. Adjustments to shareholders’ equity (attach schedule)

32. Less cost of treasury stock

33. Total liabilities and stockholder’s equity (total lines 21 to 32)

SCHEDULE C RECONCILIATION OF INCOME PER BOOKS WITH INCOME PER RETURN (See Instruction 19)

1. Net income per books

2. Federal income tax

3. Excess of capital losses over capital gains

4. Income subject to tax not recorded on

books this year (itemize)

__________________________________

5. Expenses recorded on books this year not

deducted in this return (itemize)

(a) Depreciation $____________________

(b) Contributions Carryover $___________

6. Total of lines 1 through 5

1999-S - Page 4

SCHEDULE BBALANCE SHEET AS OF______________________________________________

Figures appearing below must be the same as year-end figures shown on the taxpayer’s books. If not, explain and reconcile on rider.

Assets Beginning of the Tax Year End of Tax Year

NAME AS SHOWN ON RETURN FEDERAL ID NUMBER

7. Income recorded on books this year not

included in this return (itemize)

(a) Tax-exempt interest $______________

(b) _______________________________

8. Deductions in this tax return not charged

against book income this year (itemize)

(a) Depreciation $ ____________________

(b) Contributions Carryover $____________

___________________________________

9. Total of lines 7 and 8

10. Income (Item 31, Sch. A) - line 6 less 9

(1) (2) (3) (4) (5) (6)

Dates Employed Percent of Amount of

Name and Current Address of Officer Social Security Number Title in this position Corporation Compensation

From To Stock Owned

(a) Total compensation of officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) Less: Compensation of officers claimed elsewhere on the return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) Balance of compensation of officers (enter here and on Schedule A, line 7, page 2) . . . . . . . . . . . . . . . . . . . . . .

1999-S - Page 5

1. Type of business __________________________________________________________________________________________________________

Principal products handled __________________________________________________________________________________________________

Internal Revenue Center where corresponding Federal tax return was filed ____________________________________________________________

2. FINAL DETERMINATION OF NET INCOME BY FEDERAL GOVERNMENT (See Instruction 13)

Has a change or correction in the amount of taxable income of the reporting corporation or for any other corporation purchased, merged or consolidated

with the reporting corporation, been finally determined by the Internal Revenue Service, and not previously reported to New Jersey?

Yes or No ____________________________. If Yes, an amended return must be filed.

3. This question must be answered by domestic corporations only -

(a) Does the taxpayer hold any personal property, including moneys, negotiable instruments, choses in action, interest, dividends, wages, debts or

demands, stocks, bonds, deposits, and the accretions thereon, due or belonging to another where the owner, beneficial owner or person entitled

to such property has been unknown, or where the whereabouts of such owner has been unknown, or where such personal property has been

unclaimed for a period of fourteen successive years, (five successive years in the case of cash items such as money, wages, cash dividends, etc.)

as of the last day of the accounting period covered in this return? Yes or No __________.

(b) If Yes, itemize on a separate rider the nature of the property, value thereof and last known names and addresses of such owners or persons.

4. This question must be answered by corporations with income from sources outside the United States.

(a) Is income from sources outside the United States included in entire net income at Item 41 of Schedule A? Yes or No __________.

(b) If the answer is no, set forth such items of gross income, the source, the deductions and the amount of foreign taxes paid thereon. Enter at Item

36(c), Schedule A the difference between the net of such income and the amount of foreign taxes paid thereon not previously deducted.

SCHEDULE E GENERAL INFORMATION (See Instruction 20)

ALL TAXPAYERS MUST ANSWER THE FOLLOWING QUESTIONS. RIDERS MUST BE PROVIDED WHERE NECESSARY.

SCHEDULE F CORPORATE OFFICERS - GENERAL INFORMATION AND COMPENSATION (See Instruction 21)

1. New Jersey Taxes

2. Other States & U.S. Possessions

3. City and Local Taxes

4. Federal Taxes

5. Total

6. Combine lines 5(a) and 5(b)

7. Sales & Use Taxes Paid by a Utility

Vendor

8. Add lines 6 and 7 - Carry to Schedule

A, line 33.

9. Taxes Paid to Foreign Countries

10. Total Taxes Deducted (Combine

line

5(f) and line 9.

SCHEDULE H TAXES (See Instructions 14 (e) and 22) Include all taxes paid or accrued during the accounting period wherever deducted on Schedule A.

(A) (B) (C) (D) (E) (F)

Corporation Corporation Property U.C.C or Other Taxes Total

Franchise/Business Business/Occupancy Taxes Payroll (attach schedule)

Taxes Taxes Taxes

AVERAGE VALUES (See instruction 25)

(Omit Cents)

Column A - New Jersey Column B - Everywhere

1. Land

2. Buildings and other Improvements

3. Machinery and Equipment

4. Inventories

5. All other Tangible Personalty Owned

(Itemize on Rider)

6. Property rented or leased

(8 x Annual Rent)

7. All other Property Used

Total Real and Tangible Personal Property

ASSETS

DIVISION USE ONLY

1999-S - Page 6

ALL TAXPAYERS WHO MAINTAIN A REGULAR PLACE OF BUSINESS OUTSIDE OF NEW JERSEY REGARDLESS OF THE

AMOUNT OF ENTIRE NET INCOME REPORTED ON SCHEDULE A, LINE 41, OF THE CBT-100S SHOULD COMPLETE

SCHEDULE J. THIS SCHEDULE SHOULD BE OMITTED IF THE TAXPAYER DOES NOT MAINTAIN A REGULAR PLACE OF

BUSINESS OUTSIDE THIS STATE OTHER THAN A STATUTORY OFFICE, IN WHICH CASE THE TAX LAW REQUIRES THE

ALLOCATION FACTOR TO BE 100% (1.000000).

PART I ALL ALLOCATING COMPANIES MUST ANSWER THE FOLLOWING QUESTIONS (See Instruction 24)

(a) State the number of regular corporate places of business maintained outside this State (See instruction 24(b)) _______________________________

(b) List address of at least one such regular place of business _________________________________________________________________________

(c) List the States in which the taxpayer maintained a permanent and continuous place of business, indicating type of establishment, such as warehouse,

factory, store, office, etc. ___________________________________________________________________________________________________

(d) Give address of every factory, warehouse, store, or other place of business in New Jersey, indicating type of establishment ____________________

_______________________________________________________________________________________________________________________

(e) Number of people employed (average) in New Jersey ____________________________ outside New Jersey _______________________________

(f) Explain in detail internal controls used in distribution of receipts in and out of New Jersey, as shown in Part III, line 2 __________________________

_______________________________________________________________________________________________________________________

(g) State the location of the actual seat of management or control of the corporation ______________________________________________________

SCHEDULE J

Parts I, II, & III

PART II AVERAGE VALUES (See Instruction 25)

(a) This schedule showing average values of real and tangible personal property must be completed by every taxpayer entitled to and electing to allocate.

(b) The average values of real and tangible personal property

owned

are to be computed on the basis of the average book values thereof and not on original

cost. Rented or leased property is valued at 8 times the annual rent, including any amounts paid or accrued in addition to or in lieu of rent during the

period covered by the return. All other property which is used by the taxpayer but is neither owned, rented or leased, should be valued at book value,

however, if no such book value exists, the market value of the property should be used.

(c) The frequency upon which the amounts in Columns A and B below have been averaged is _____________________________ (See instruction 25).

1. Average value of the taxpayer’s real and tangible personal property:

(a) In New Jersey (Part II, Column A, line 8) 1(a)

(b) Everywhere (Part II, Column B, line 8) 1(b)

2. Receipts:

(a) From sales of tangible personal property shipped to points within New Jersey.

(See instruction 26(c)) 2(a)

(b) From services performed in New Jersey 2(b)

(d) From royalties for the use in New Jersey of patents and copyrights 2(d)

(e) All other business receipts earned in New Jersey. (See instruction 26(d)) 2(e)

(f) Total New Jersey receipts (Total of lines 2(a) to 2(e), inclusive, in Column A) 2(f)

(g) Total receipts from all sales, services, rentals, royalties and other business

transactions everywhere. 2(g)

(h) Percentage in New Jersey (line 2(f) divided by line 2(g)). Enter in Column B. 2(h)

(i) Double-weighted receipts factor (Enter 2(h)) 2(i)

3. Wages, salaries and other personal service compensation (See instruction 26(f))

(a) In New Jersey 3(a)

(b) Everywhere 3(b)

4. Sum of New Jersey percentages shown at lines 1(c), 2(h), 2(i), and 3(c)

Enter in Column B. 4

5. Allocation Factor (line 4 divided by four, or by the number of percentages

included on line 4. See instruction 26(g)). Enter in Column B and carry to line 2,

page 1 and line 44, page 2, and Schedule K, Part III, line 3. 5

COLUMN A (omit cents) COLUMN B

Complete by carrying the fraction to six (6)

decimal places. Do not express as a

percent. Example:

123,456

1,000,000 =

PART III COMPUTATION OF ALLOCATION FACTOR (See Instruction 26)

6541 2 3

•

PART II NEW JERSEY S CORPORATION INCOME(LOSS)

1. Amount from Schedule A, line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1.

2. Add the following amounts from Federal 1120S, Schedule K

a. Net income (loss) from rental real estate activities . . . . . . . . . . a ___________________

b. Net income (loss) from other rental activities . . . . . . . . . . . . . . . b ___________________

c. Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c ___________________

d. Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d ___________________

e. Royalty income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e ___________________

f. Net short-term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . f ___________________

g. Net long-term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . g ___________________

h. Other portfolio income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . h ___________________

i. Net gain (loss) under section 1231 . . . . . . . . . . . . . . . . . . . . . . i ___________________

j. Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . j ___________________

k. Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . k ___________________

l. Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l ___________________

Total of 2(a) through 2(l) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Add line 1 plus line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Additions:

a. Interest income on state and municipal bonds other than

New Jersey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a ___________________

b. New Jersey State and other states’ income taxes deducted in

arriving at line 3 including taxes paid on behalf of the

shareholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b ___________________

c. All expenses included in line 3 to generate tax exempt income . c ___________________

d. Losses included in line 3 from U.S. Treasury and other obligations

pursuant to N.J.S.A. 54A:6-14 and 6-14.1 . . . . . . . . . . . . . . . . . d ___________________

Total of 4(a) through 4(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.

5. Add line 3 plus line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Subtractions:

a. U.S. Treasury and other interest income included in line 3 from

investments exempt under N.J.S.A. 54A:6-14 and 6-14.1 . . . . . a ___________________

b. Gains included in line 3 from U.S. Treasury and other obligations

pursuant to N.J.S.A. 54A:6-14 and 6-14.1 . . . . . . . . . . . . . . . . . b ___________________

c. IRS Section 179 expenses from Federal Schedule K . . . . . . . . c ___________________

d. The 50% of meals and entertainment expenses not deductible

for Federal purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d ___________________

e. Other subtractions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e ___________________

Total of 6(a) through 6(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. New Jersey S Corporation Income(Loss) - Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . 7.

PART III ALLOCATION OF S CORPORATION INCOME(LOSS)

1. New Jersey S Corporation Income(Loss) (Part II, line 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

a. Current period nonoperational activity (Schedule O, Part I, line 34) . . . . . . . . . . . . . . . . . . . . 1a

2. Total operational income(loss) (line 1 minus line 1a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Allocation factor (Schedule J, Part III, line 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3.

4. Allocated operational income(loss) (line 3 x line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Allocated nonoperational income(loss) (Schedule O, Part III, line 31) . . . . . . . . . . . . . . . . . . . . . 5.

6. Total allocated income(loss) (line 4 plus line 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. New Jersey CBT reported on CBT-100S (Page 1, line 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. New Jersey allocated income(loss) (line 6 minus line 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

9. Income(loss) not allocated to New Jersey (line 1 minus line 6) . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

1999-S - Page 7

SCHEDULE K SHAREHOLDERS’ SHARES OF INCOME, DEDUCTIONS, ETC. (See Instruction 27)

PART I

1. Total number of shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ____________________

2. Total number of nonresident shareholders . . . . . . . . . . . . . . . . . . . . . ____________________

3. a. Total number of nonconsenting shareholders . . . . . . . . . . . . . . . . ____________________

b. Percentage of stock owned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ___________________%

(E)

Distributions

1. Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Additions / Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Ending balance (line 1 plus line 2 minus line 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

1. Beginning balance . . . . . . . . . . . . . . . . . . . .

2. Net pro rata share of S corporation income .

3. Other income / loss . . . . . . . . . . . . . . . . . . .

4. Other reductions (attach schedule) . . . . . . . .

5. Total lines 1-4 . . . . . . . . . . . . . . . . . . . . . . .

6. Distributions . . . . . . . . . . . . . . . . . . . . . . . . .

7. Ending balance (line 5 minus line 6) . . . . . . .

SCHEDULE K - Continued 1999-S - Page 8

PART IV - A ANALYSIS OF NEW JERSEY ACCUMULATED ADJUSTMENTS ACCOUNT

(A) (B) (C)

New Jersey AAA Non New Jersey AAA Total of Columns (A) & (B)

NAME AS SHOWN ON RETURN FEDERAL ID NUMBER

PART IV - B NEW JERSEY EARNINGS AND PROFITS

PART V SUMMARY OF RESIDENT SHAREHOLDERS’ PRO RATA SHARES

(A) (B) (C) (D)

Name Social Security Number Pro Rata Share Distributions

Income / loss

6. TOTAL

PART VI SUMMARY OF CONSENTING NON-RESIDENT SHAREHOLDERS’ PRO RATA SHARES

(A) (B)

Name Social Security Number

Pro Rata Share Income / Loss

Allocated to NJ Not Allocated to NJ

(E)

Distributions

6. TOTAL

PART VII SUMMARY OF NONCONSENTING SHAREHOLDERS’ PRO RATA SHARES

(A) (B)

Name Social Security Number

Pro Rata Share Income / Loss

Allocated to NJ Not Allocated to NJ

(F)

Gross Income

Tax Paid

6. TOTAL

NOTE: Taxpayers must hold at least 80% of the combined voting power of all classes of stock entitled to vote and at least 80% of the total number of shares of all other classes

of stock, except non-voting stock which is limited and preferred as to dividends, for each subsidiary. Do not include advances to subsidiaries in book value.

SCHEDULE Q QUALIFIED SUBCHAPTER S SUBSIDIARIES (QSSS) (See Instruction 32)

(2)

Date and

State where

Organized

(7)

New

Jersey

Nexus

Yes No

(1)

Name of Partnership

LLC, or Other Entity

Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NAME AS SHOWN ON RETURN FEDERAL ID NUMBER

1999-S - Page 9

SCHEDULE P SUBSIDIARY INVESTMENT ANALYSIS (See Instruction 30)

(1)

Name of Subsidiary

(4)

Dividend Income

(as reported in Schedule A)

(3)

Book Value

(as reported in Schedule B)

(2)

Percentage of Interest

Voting Non-Voting

SCHEDULE R DIVIDEND EXCLUSION (See Instruction 33)

1. Dividend income included in Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2. Less: Dividend Income - Schedule P, Column (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3. Balance (line 1 less line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4. 50% of line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5. DIVIDEND EXCLUSION: Line 2 plus line 4 (Carry to Schedule A, line 40) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

SCHEDULE P-1 PARTNERSHIP INVESTMENT ANALYSIS (See Instruction 31)

(3)

Federal ID Number

(4)

Percentage

Ownership

(5)

Limited General

Partner Partner

(6)

Tax Accounting Method

Flow Separate

Through Accounting

1. Is this corporation a Qualified Subchapter S Subsidiary? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Yes _____ No _____

If yes, indicate the parent corporation’s name, address, and FID # below. A New Jersey QSSS must complete page 1 and this schedule only.

2. Does this corporation own any Qualified Subchapter S Subsidiaries? . . . . . . . . . . . . . . . . . . . . . . . . . .Yes _____ No _____

If yes, list all the QSSS’s names, addresses, and FID#’s below. Attach additional rider if necessary. Separately note those subsidiaries that have

made a New Jersey QSSS election and whose activities are included in this return.

1. Section 179 Deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2. MACRS - for assets placed in service during accounting periods beginning on and after

July 7, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3. MACRS - for assets placed in service during accounting periods beginning prior to July 7, 1993 . . . 3

4. ACRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5. Other Depreciation - for assets placed in service after December 31, 1980 . . . . . . . . . . . . . . . . . . . . 5

6. Other Depreciation - for assets placed in service prior to January 1, 1981 . . . . . . . . . . . . . . . . . . . . . 6

7. Listed Property - for assets placed in service during accounting periods beginning on and after

July 7, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

8. Listed Property - for assets placed in service during accounting periods beginning prior to

July 7, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

9. Total Depreciation claimed in arriving at Taxable Income, Line 31, Schedule A . . . . . . . . . . . . . . . . . . 9

ATTACH FEDERAL FORM 4562 TO RETURN

SCHEDULE S - PART I DEPRECIATION AND SAFE HARBOR LEASING (See Instruction 34)

1999-S - Page 10

Adjustments at Line 35, Schedule A

Depreciation and Certain Safe Harbor Lease Transactions

10. Additions

(a) ACRS and MACRS from Lines 3, 4, 5 & 8 above . . . . . . . . . . . a. _____________________

(b) Distributive share of ACRS and MACRS from a partnership . . . b. _____________________

pursuant to IRC Section 168(f)8 exclusive of elections made

with respect to mass commuting vehicles.

Interest . . . . . . . . . . . . . . . . . . . . . ____________________

Rent . . . . . . . . . . . . . . . . . . . . . . . ____________________

Amortization of Transactional Costs ____________________

Other Deductions . . . . . . . . . . . . . . .____________________ c .______________________

Total Line 10 (Lines a, b and c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 _____________________

11. Deductions

(a) New Jersey depreciation - (From Part II of this schedule) . . . . . a. ______________________

(b) Recomputed depreciation attributable to distributive share of

recovery property from a partnership (From Part II of this

schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b. ______________________

described at Line 10(c) solely as a result of that election . . . . . c. ______________________

(d) The lessee/user should enter the amount of depreciation which

would have been allowable under the Internal Revenue Code at

December 31, 1980 had there been no safe harbor lease

election (From Part II of this schedule) . . . . . . . . . . . . . . . . . . . d. ______________________

(e) Excess of accumulated ACRS and MACRS over accumulated

N.J. depreciation on physical disposal of recovery property

(attach computations) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e. ______________________

Total line 11 (Lines a, b, c, d and e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 _____________________

12. ADJUSTMENT - (line 10 minus line 11) Enter at line 35, Schedule A . . . . . . . . . . . . . . . . . . . . . . . . 12 _____________________

1999-S - Page 11

SCHEDULE S - PART II N.J. Depreciation on Recovery Property Placed in Service On or After January 1, 1981 and Prior to

Taxpayers Fiscal or Calendar Accounting Periods Beginning On and After July 7, 1993.

NAME AS SHOWN ON RETURN FEDERAL ID NUMBER

(A)

Description of Property

(B) (C) (D) (E) (F) (G)

Month, Day Use Federal Depreciation Method of N.J. Depreciation

and Year placed basis allowable in figuring Life or rate Computations

in service* earlier years depreciation

* Year placed in service acceptable for personal property only.

DO NOT USE “VARIOUS” IN ANY COLUMN.

Class Life Asset Depreciation Range (CLADR) System Depreciation - Attach Computations

Other depreciation (See instructions):

Column A - Do not classify as 3, 5, 10 or 15 year property. Classify

consistent with Internal Revenue Code at December 31, 1980.

Account for distributive share of partnership property and

deductions separately. Do not include certain safe harbor lease

property.

Column B - Clearly segregate property placed in service during each year.

Depreciation on personal property is to be computed using the

half-year convention such that one half year depreciation is to

be claimed to the exclusion of any other depreciation convention

allowable under the Internal Revenue Code at December 31,

1980 for property placed in service during the current year.

Column C - Basis is to be determined at the date property is placed in

service and not as provided under the Internal Revenue Code at

December 31, 1980. It is not to be restated where ACRS was

accepted for certain property placed in service during 1981.

Column D - Depreciation allowable under the method adopted and

consistently applied for property described. Do not adjust for

the effect of any ACRS deducted on the New Jersey

Corporation Business Tax Return for property placed in service

during 1981.

Column E - Any method allowable under the Internal Revenue Code at

December 31, 1980.

Column F - Any life or rate permissible under the Internal Revenue Code at

December 31, 1980. (LIVES PERMISSIBLE UNDER THE IRS

CODE AT DECEMBER 31,1980 FREQUENTLY DIFFER FROM

ACRS AND MACRS LIVES)

Column G - Consider any salvage value which was required to be

considered under Internal Revenue Code at December 31,

1980. Do not claim depreciation in the year of disposal.

Accumulated depreciation may not exceed accumulated ACRS

and MACRS deductions over the life of the property and

deductions for the final year or years are limited where ACRS

was deducted on the New Jersey return for property placed in

service during 1981.

INSTRUCTIONS

1. Total depreciation claimed in arriving at Schedule A, line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Federal depreciation for assets placed in service after 1-1-98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Net (subtract line 2 from line 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. New Jersey depreciation allowable on the Single Asset Account. (Assets placed in service prior to 1-1-98)

(a) Total adjusted Federal depreciable basis

as of 12-31-97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .a.

(b) Excess book depreciable basis over Federal

tax basis as of 12-31-97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .b.

Account property sold, retired, or disposed of to date . . . . . . . . .c.

(d) Total (line 4a plus 4b less line 4c) . . . . . . . . . . . . . . . . . . . . . . .d.

5. New Jersey depreciation (divide line 4d by 30) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. New Jersey adjustment (subtract line 5 from line 3) Carry to Schedule A, line 35 . . . . . . . . . . . . . . . 6.

SCHEDULE S - PART III NEW JERSEY DEPRECIATION FOR GAS, ELECTRIC, AND GAS AND ELECTRIC PUBLIC UTILITIES

1999-S - Page 12

NAME AS SHOWN ON RETURN FEDERAL ID NUMBER

Shareholder’s identifying number Federal employer identification number

Shareholder’s name, address, and ZIP code Corporation’s name, address, and ZIP code

See Instructions on Reverse Side

State of New Jersey

Division of Taxation

SHAREHOLDER’S SHARE OF INCOME / LOSS

For calendar year 1999 or tax year beginning _______________________, 19_____, and ending _______________________, _______

SCHEDULE NJ-K-1 1999-S - Page 13

(Form CBT-100S)

(5-99)

PART I

1. Shareholder’s percentage of stock ownership for tax year . . . . __________________________%

2. Shareholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¨ resident . . . . . . ¨ nonresident

3. Shareholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¨ consenting . . . . ¨ nonconsenting

4. Check applicable box: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¨ Final NJ-K-1 . . . ¨ Amended NJ-K-1

PART II

1. S Income(Loss) allocated to NJ . . . . . . . . . . . . . . . . . . . . . . . ________________________

2. S Income(Loss) not allocated to NJ . . . . . . . . . . . . . . . . . . . . ________________________

3. Pro rata share of S Corporation Income(Loss) (line 1 plus line 2) . ________________________

4. Total payments made on behalf of shareholder . . . . . . . . . . . . ________________________

5. Other Reductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ________________________

6. Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ________________________

7. NJ AAA beginning balance 1/1/99 . . . . . . . . . . . . . . . . . . . . . ________________________

8. NJ E & P beginning balance 1/1/99 . . . . . . . . . . . . . . . . . . . . ________________________

Individual shareholders should

follow instructions contained in

their NJ-1040 return packet

regarding the amounts reported

in this section.

Shareholders must include this

schedule with their NJ-1040 or

NJ-1040NR return.

PART III

1. Interest paid to shareholder (per 1099-INT) . . . . . . . . . . . . . . ________________________

2. Indebtedness:

a. From corporation to shareholder . . . . . . . . . . . . . . . . . . . . . ________________________

b. From shareholder to corporation . . . . . . . . . . . . . . . . . . . . . ________________________

THIS FORM MAY BE REPRODUCED

1999

1999-S - Page 14

INSTRUCTIONS FOR SCHEDULE NJ-K-1

PART I

Line 1 Shareholder’s percentage of stock ownership as reported on Federal 1120S.

Line 2 Indicate shareholder’s residency status at year’s end.

Line 3 Indicate whether shareholder is a consenting or nonconsenting shareholder. All original shareholders must

be consenting. Any shareholder who signed the CBT-2553 is a consenting shareholder.

Line 4 If applicable, indicate if this schedule is a final or amended NJ-K-1.

PART II

Line 1 Enter shareholder’s share of New Jersey allocated S corporation income(loss) from Part III, line 8 of

Schedule K.

New Jersey S corporations which claim a credit for taxes paid to other jurisdictions in accordance with

N.J.A.C. 18:7-8.3 will report 100% of the shareholder’s net pro rata share as allocated to New Jersey.

Line 2 Enter shareholder’s share of S corporation income(loss) not allocated to New Jersey from Part III, line 9 of

Schedule K.

Line 4 Total payments made on behalf of the shareholder as reported in Part VII, Column (F), of Schedule K. This

amount must equal the amount of the payment reported on Form NJ-1040-SC, Payment on Behalf of

Nonconsenting Shareholders.

Line 5 Enter shareholders share of Other Reductions on shareholder’s New Jersey Accumulated Adjustment

Account.

Line 6 Enter distributions shareholder received during the year as reported in Part V, VI or VII, of Schedule K.

Line 7 Enter the shareholder’s NJ AAA 1/1/99 beginning balance.

Line 8 Enter the shareholder’s NJ E & P 1/1/99 beginning balance.

PART III

Line 1 Enter the amount of any interest paid to the shareholder which should be reported by the S corporation on

Federal Form 1099-INT. Include any other interest paid to the shareholder that was deducted by the S

corporation in arriving at income reflected in Part II, line 9 of Schedule K.

Line 2 a. Enter the total amount of indebtedness of the corporation to the shareholder at year’s end.

b. Enter the total amount of indebtedness of the shareholder to the corporation at year’s end.

NOTE: A New Jersey electing S corporation doing business in New Jersey may file a NJ-1080-C composite return

on behalf of its qualified nonresident shareholders who elect to be included in the composite filing. Every

participating shareholder must make the election to be part of the composite return in writing each year by

using Form NJ-1080-E or a form substantially similar.

1999

Page

Shareholder Information

Social Security Number

________________ / ___________ / ________________

Last Name First name

Street Address

City State Zip Code

FOR OFFICIAL USE ONLY

New Jersey Gross Income Tax

Payment on Behalf of

Nonconsenting Shareholders

1040-SC

(5-99)

Tax Year Beginning _________________________ and Ending _________________________

New Jersey S Corporation Information

Federal Identification Number NJ Corporation Number

Taxpayer Name

Address

City State Zip Code

Amount of Payment from Schedule K,

Part VII, Column (F) of the CBT-100S

THIS FORM MAY BE REPRODUCED

Shareholder Information

Social Security Number

________________ / ___________ / ________________

Last Name First Name

Street Address

City State Zip Code

FOR OFFICIAL USE ONLY

New Jersey Gross Income Tax

Payment on Behalf of

Nonconsenting Shareholders

1040-SC

(5-99)

Tax Year Beginning _________________________ and Ending _________________________

New Jersey S Corporation Information

Federal Identification Number NJ Corporation Number

Taxpayer Name

Address

City State Zip Code

Amount of Payment from Schedule K,

Part VII, Column (F) of the CBT-100S

THIS FORM MAY BE REPRODUCED

Shareholder Information

Social Security Number

________________ / ___________ / ________________

Last Name First Name

Street Address

City State Zip Code

FOR OFFICIAL USE ONLY

New Jersey Gross Income Tax

Payment on Behalf of

Nonconsenting Shareholders

1040-SC

(5-99)

Tax Year Beginning _________________________ and Ending _________________________

New Jersey S Corporation Information

Federal Identification Number NJ Corporation Number

Taxpayer Name

Address

City State Zip Code

Amount of Payment from Schedule K,

Part VII, Column (F) of the CBT-100S

THIS FORM MAY BE REPRODUCED

INSTRUCTIONS FOR NJ-1040-SC 1999-S - Page 16

For the S Corporation:

1. A separate form must be completed for each nonconsenting shareholder and submitted with the CBT-100S. Attach the completed

form(s) to the front of page 1 of the CBT-100S that is filed by the corporation.

2. Payment Due Date;

Payment should be remitted no later than the time for the filing of the CBT-100S for the accounting or privilege period of the S

corporation.

3. The payment amount on the NJ-1040-SC should match the amount on the individual shareholder’s NJ-K-1, Part II, line 4.

4. The remittance for the total of all NJ-1040-SC forms is to be included with any corporation business tax due as shown on page 1 of

the CBT-100S form.

5. A copy of the completed form must be supplied to each shareholder on whose behalf it was filed on or before the due date of the

CBT-100S.

For the Shareholder:

1. Payments made by the S corporation on behalf of the shareholder does not release the shareholder of his responsibility for making

estimated payments as required under the New Jersey Gross Income Tax Statutes.

2. A copy of the NJ-1040-SC form must accompany the NJ-1040-NR (nonresident) return you file. The payment is to be claimed on

the return along with any other estimated payments you have made.

3. Be sure to keep a copy of the form for your records.

INSTRUCTIONS FOR NJ-1040-SC

For the S Corporation:

1. A separate form must be completed for each nonconsenting shareholder and submitted with the CBT-100S. Attach the completed

form(s) to the front of page 1 of the CBT-100S that is filed by the corporation.

2. Payment Due Date;

Payment should be remitted no later than the time for the filing of the CBT-100S for the accounting or privilege period of the S

corporation.

3. The payment amount on the NJ-1040-SC should match the amount on the individual shareholder’s NJ-K-1, Part II, line 4.

4. The remittance for the total of all NJ-1040-SC forms is to be included with any corporation business tax due as shown on page 1 of

the CBT-100S form.

5. A copy of the completed form must be supplied to each shareholder on whose behalf it was filed on or before the due date of the

CBT-100S.

For the Shareholder:

1. Payments made by the S corporation on behalf of the shareholder does not release the shareholder of his responsibility for making

estimated payments as required under the New Jersey Gross Income Tax Statutes.

2. A copy of the NJ-1040-SC form must accompany the NJ-1040-NR (nonresident) return you file. The payment is to be claimed on

the return along with any other estimated payments you have made.

3. Be sure to keep a copy of the form for your records.

INSTRUCTIONS FOR NJ-1040-SC

For the S Corporation:

1. A separate form must be completed for each nonconsenting shareholder and submitted with the CBT-100S. Attach the completed

form(s) to the front of page 1 of the CBT-100S that is filed by the corporation.

2. Payment Due Date;

Payment should be remitted no later than the time for the filing of the CBT-100S for the accounting or privilege period of the S

corporation.

3. The payment amount on the NJ-1040-SC should match the amount on the individual shareholder’s NJ-K-1, Part II, line 4.

4. The remittance for the total of all NJ-1040-SC forms is to be included with any corporation business tax due as shown on page 1 of

the CBT-100S form.

5. A copy of the completed form must be supplied to each shareholder on whose behalf it was filed on or before the due date of the

CBT-100S.

For the Shareholder:

1. Payments made by the S corporation on behalf of the shareholder does not release the shareholder of his responsibility for making

estimated payments as required under the New Jersey Gross Income Tax Statutes.

2. A copy of the NJ-1040-SC form must accompany the NJ-1040-NR (nonresident) return you file. The payment is to be claimed on

the return along with any other estimated payments you have made.

3. Be sure to keep a copy of the form for your records.

25% of tax 50% of tax 75% of tax 100% of tax

22.5% of tax 45% of tax 67.5% of tax` 90% of tax

13. Amount of underpayment from line 9 . . . . . . . . . . . . . . . . . . . . . . . . . .

14. Enter same installment dates used above at line 5 . . . . . . . . . . . . . . . . .

15. Enter the date of payment or the 15th day of the 4th month after

the close of the tax year, whichever is earlier . . . . . . . . . . . . . . . . . . . .

16. Number of months from the date on line 14 to the date on line 15.

(A part of a month is deemed to be a full month.) . . . . . . . . . . . . . . . . .

17. Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18. Installment interest due - Add columns (a), (b), (c), and (d) of line 17.

Enter the total here and on page 1, line 19, of Form CBT-100 or CBT-100S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CORPORATE NAME FEDERAL EMPLOYER I.D. NUMBER N.J. CORPORATION NUMBER

5. Enter in columns (a) through (d) the installment dates that correspond to

the 15th day of the 4th, 6th, 9th, and 12th months of your tax year . . . .

6. Enter 25% of Line 4 in Columns (a) through (d) . . . . . . . . . . . . . . . . . .

7. (a) Amount paid or credited for each period . . . . . . . . . . . . . . . . . . . .

(b) Overpayment of previous installment (enter any overpayment shown

on line 9 that is more than the total of all prior underpayments as a

credit against the next installment) . . . . . . . . . . . . . . . . . . . . . . . . .

8. Add lines 7(a) and 7(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9. Underpayment (subtract line 8 from line 6) or overpayment (subtract

line 6 from line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(a) (b) (c) (d)

Underpayment of Estimated N.J. Corporation Business Tax

Attach to your tax return (Form CBT-100 or CBT-100S)

For taxable years ending July 31, 1999 through June 30, 2000

CBT-160

N.J. Division of Taxation

(5-99)

PART I How to Compute Your Underpayment

Note: If you meet any of the exceptions that avoid the underpayment charge for ANY quarter, complete PART II.

1. Amount of Tax from Form CBT-100, Line 13, page 1 or Form CBT-100S, Line 11, page 1 . . . . . . . . . . . . . . . . . .

2. 90% of Line 1. If you were qualified and elected to make a single payment in lieu of paying installments of

estimated tax, you may enter zero. (See Instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Enter the amount of tax from Form CBT-100, Line 13, page 1 or Form CBT-100S, Line 11, page 1 from the

preceding taxable year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Enter the lesser of Lines 2 or 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART II Exceptions (See Instructions)

10. Total amount paid or credited from the beginning of the tax year through

the installment dates that correspond to the 15th day of the 4th, 6th, 9th,

and 12th months of your tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11. Exception 1, tax based on the facts shown on the prior year’s return but

using current year’s rates (if prior return was for a period of less than a

year, see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12. Exception 2, tax based on annualized tax . . . . . . . . . . . . . . . . . . . . . . .

PART III Installment Interest Due (See Instructions)

THIS FORM MAY BE REPRODUCED

CBT-160 (5-99) INSTRUCTIONS Page 2

Purpose of Form

This Form CBT-160 is used by corporations to determine whether they paid enough estimated tax, whether they are subject to an

interest charge for underpayment of estimated tax, and if so, the amount of interest.

How to Use This Form

Complete Part I of Form CBT-160 to find out if you have an underpayment for any of the four payment periods. If you have an

underpayment on Line 9 (Column a, b, c or d), go to Part II, Exceptions. If you cannot meet either of the exceptions for a payment

period, go to Part III, Installment Interest Due. If you are using Form CBT-160 either to compute the interest on underpayment of

estimated tax or to show that you qualify for any exception, attach Form CBT-160 to your tax return, Form CBT-100 or CBT-100S.

Part I - How to Compute Your Underpayment

Complete Lines 1 through 9 in Part I. The instructions for most of these lines are on the form itself. Follow the instructions below

for Line 7(b) and Line 9.

Line 7(b) - Enter any overpayment shown on Line 9 that is more than the total of all earlier underpayments.

Line 9 - If Line 9 shows an underpayment, complete Part II to see if either of the exceptions apply.

Part II - Exceptions

You will not have to pay interest if all of your tax payments (Part II, Line 10) were made on time and are equal to or more than either

of the amounts computed as explained by the exceptions (Lines 11 and 12) for the same payment period (Column a, b, c or d).

Exception I - Tax Based on Prior Year’s Return Using Current Year’s Rates

This exception applies if the amount the corporation paid is equal to or more than the tax computed by using the current year’s

rates but based on the facts shown on the prior year’s return and the law that applies to the prior year. If the prior year return

covered a period of less than a year, the prior return must be annualized by dividing the taxable net income by the number of

whole months covered by the short period return and multiplying by 12.

Exception II - Tax Based on Annualized Tax

This exception applies if the estimated tax paid was equal to or more than 90% of the amount the corporation would owe if

its estimated tax was based on a tax computed from annualizing tax for the months preceding an installment date.

A corporation may annualize its tax as follows:

a. For the first 3 months if the installment was required to be paid in the 4th month.

b. For the first 3 months or for the first 5 months if the installment was required to be paid in the 6th month.

c. For the first 6 months or for the first 8 months if the installment was required to be paid in the 9th month.

d. For the first 9 months or for the first 11 months if the installment was required to be paid in the 12th month.

Note: Initial New Jersey S Corporations should use the previous year CBT-100 income and the applicable CBT-100S rate.

a. The rate on entire net income that is not subject to Federal income taxation is 2.0% (.02), except for taxpayers with

total entire net income of $100,000 or less, the applicable tax rate is 0.5% (.005).

b. The rate on taxable income that is subject to Federal income taxation is 9%, except for taxpayers with total entire net

income of $100,000 or less, the applicable tax rate is 7.50% (.075).

Part III - Installment Interest Due

If no exception applies, complete Lines 13 through 18.

A payment of estimated tax on or before any installment date is considered a payment of any previous underpayment only to the

extent the payment is more than the amount of the current installment as figured on Line 6. If the corporation made more than one

payment for an installment, attach a separate computation for that installment.

Interest is computed on the amount of the underpayment from the installment due date to the date of payment or the original due

date of the final tax return, whichever is earlier. The annual interest rate is 3% above the average predominant prime rate and is

imposed each month or fraction thereof the underpayment exists. Changes in the average predominant prime rate must be reflected

in the interest calculation. The interest rates assessed by the Division of Taxation are published in the quarterly issues of the New

Jersey State Tax News.

The average predominant prime rate is the rate as determined by the Board of Governors of the Federal Reserve System, quoted

by commercial banks to large businesses on December 1st of the calendar year immediately preceding the calendar year in which

payment was due or as redetermined by the Director in accordance with N.J.S.A. 54:48-2.

Fill Online, Printable, Fillable, Blank CBT-100S STATE OF NEW JERSEY DIVISION OF TAXATION (The State of New Jersey) Form

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