New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 7 - CORPORATION BUSINESS TAX ACT
Subchapter 21 - COMBINED RETURNS
Section 18:7-21.25 - Banking corporations and combined groups

(a) Where at least one of the members of the combined group is a banking corporation, as defined at N.J.S.A. 54:10A-36, and the group privilege period has a fiscal year end, then before being included as a member of the combined group on the New Jersey combined return, the banking corporation must first file a short period return to align its privilege period with the combined group. Subsequent to filing a short period combined return, the banking corporation shall include and report its income and attributes as part of the combined group.

(b) Where a banking corporation that switched to a fiscal privilege period as a result of (a) above departs from a combined group, the banking corporation shall continue to file a fiscal privilege period return.

(c) Where at least one of the members of the combined group is a banking corporation, and the combined group has a calendar year privilege period, the banking corporation does not need to file a transitional return.

(d) For purposes of the deduction allowed in paragraph (4) of subsection (k) of section 4 at P.L. 1945, c. 162 (N.J.S.A. 54:10A-4), a combined group shall be treated as one taxpayer; provided, however, a combined group shall only be eligible for the deduction if at least one of the taxable members is a banking corporation and the taxable member has an international banking facility. The income of the combined group shall not be eligible for the deduction allowed in paragraph (4) of subsection (k) of section 4 at P.L. 1945, c. 162 (N.J.S.A. 54:10A-4), if such income was already eliminated pursuant to the provisions at N.J.S.A. 54:10A-4.6.

(e) Any banking corporation member of a combined group (or the managerial member electing on the banking corporation member's behalf), having an international banking facility that elects to take the deduction from entire net income provided for at N.J.A.C. 18:7-5.2(a)2 vii, shall complete the allocation factor at N.J.S.A. 54:10A-4.7, after intercompany eliminations. For the purpose of allocation, however, all amounts attributable, directly or indirectly, to the production of the eligible net income of an international banking facility, as defined at N.J.S.A. 54:10A-4(n), shall be included in both the numerator and the combined group denominator after intercompany eliminations, whether or not such international banking facility income amounts are otherwise attributable to New Jersey.

(f) All other banking corporations that have not filed transitionary returns must do so for privilege periods ending on and after July 31, 2020. See N.J.S.A. 54:10A-34.1 for more information.