New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 7 - CORPORATION BUSINESS TAX ACT
Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT
Section 18:7-1.24 - Certain insurance companies subject to the corporation business tax

(a) Combinable captive insurance companies, as defined at N.J.S.A. 54:10A-4(y), are subject to the corporation business tax. A combinable captive insurance company is exempt from the tax imposed pursuant to N.J.S.A. 17:47B-12 and any other insurance premiums taxes imposed pursuant to any other laws of the State of New Jersey. A combinable captive insurance company that has nexus with New Jersey, but is not included as a member of a New Jersey combined return, must file a separate return.

(b) Captive insurance companies that do not meet the definition of a combinable captive insurance company are exempt from the corporation business tax and are excluded from the combined group reported on the combined return. Such captive insurance companies are subject to the insurance premiums tax at N.J.S.A. 17:47B-12.

(c) For the purposes of determining whether a captive insurance company is a combinable captive insurance company, the entity must use the same method of accounting used for Federal purposes.

(d) For more information on combined groups and combined reporting, see N.J.A.C. 18:7-21.