N.J.A.C. 18:7-21.19 - Application of the Minimum Tax
(a) A taxable member of a combined group that is subject to the minimum tax must separately calculate that measure pursuant to N.J.A.C. 18:7-3.4. The payment of the minimum tax is required even when a corporation is not subject to tax on its income either through the means of a combined return or otherwise. However, for privilege periods ending on and after July 31, 2020, if the regular tax liability of the combined group exceeds the aggregate minimum tax of all of the taxable members of the combined group, then the combined group will only pay the regular tax liability and the taxable members will not additionally owe the statutory minimum tax.
(b) For privilege periods ending on or after July 31, 2019, the minimum tax shall be $ 2,000 for each taxable member of the combined group filing a New Jersey combined return if the member has nexus with New Jersey.
(c) A business entity that is a disregarded entity for Federal purposes is not considered a member of the combined group itself, and, therefore, does not have to pay the minimum tax. However, the income and attributes of the disregarded entity flow-through to the owner and will be included in the income and attributes of the combined group if a member owns the disregarded entity.
(d) A partnership is not itself a member of a combined group.
- For privilege periods ending on and after July 31, 2023, if a member of a combined group receives income from the unitary business from a partnership, the combined group's entire net income shall include the member's direct and indirect distributive share of the partnership's unitary business income, and the unitary partnership shall not be liable for the portion of the payment imposed pursuant to N.J.S.A. 54:10A-15.11 that is directly, or indirectly in the case of a tiered partnership, attributable to that member.