New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 7 - CORPORATION BUSINESS TAX ACT
Subchapter 21 - COMBINED RETURNS
Section 18:7-21.28 - Combined groups engaged in transportation of freight by air or ground

(a) All business income of a combined group engaged in the transportation of freight by air or ground shall be apportioned to this State by multiplying the income by a fraction, the numerator of which is the ton miles traveled by the combined group's mobile assets in this State by type of mobile asset and the denominator of which is the total ton miles traveled by the combined group's mobile assets everywhere. This section applies if 50 percent or more of the combined group's entire net income is derived from the transportation of freight by air or ground. See N.J.A.C. 18:7-21.13(b).

(b) If 50 percent or more of the combined group's entire net income is derived from the transportation of freight by air or ground, as described at (a) above, then (a) above applies, and N.J.A.C. 18:7-8.10A(dealing with the sourcing of receipts for certain services) does not apply.

(c) If less than 50 percent of the combined group's entire net income is derived from the transportation of freight by air or ground, then N.J.A.C. 18:7-8.10A(dealing with the sourcing of receipts for certain services) applies.

(d) This section shall apply to combined groups filing on a water's-edge group basis, a worldwide group basis, or an affiliated group basis.

(e) For the purposes at (a) above, receipts attributable to the income of certain international shipping companies and international airlines that were excluded from entire net income pursuant to N.J.S.A. 54:10A-4(k)(9) are not considered when determining whether 50 percent or more of the combined group's entire net income is derived from the transportation of freight by air or ground. Thus, when the income is excluded from the entire net income of the group pursuant to N.J.S.A. 54:10A-4(k)(9), but 50 percent or more of the remaining income that is included in the combined group's entire net income is derived from the transportation of freight by air or ground the income, (a) above shall apply.