Instructions For Arizona Form 308 - Credit For Increased Research Activities

Arizona Form 308

S corporation received a Certificate from Commerce, it must

previous taxable years will carryover for possible use in the next

also complete line 34. If the S corporation received a pass-

taxable year, provided they do not expire this taxable year.

through credit from a partnership, and the partnership

NOTE: If you complete Part 6 and are receiving a refund, do

received a Certificate from Commerce, the S corporation

not complete Part 9 or Part 10.

must also complete line 35.

Line 41 -

After the S corporation completes Parts 1, 2 and 3, it must

complete Part 4, lines 31 through 35, separately for each

Enter the amount of the current taxable year's credit. Corporations,

shareholder. The S corporation must furnish each shareholder

exempt organizations with UBTI, or S corporations, enter the

with a copy of pages 1 through 4 of Form 308, and a copy of

amount from Part 3, line 29. Exempt organizations with UBTI that

the Certificate, if applicable.

are S corporation shareholders, enter the credit from Part 4, line

33. Corporate partners of a partnership or exempt organizations

Each exempt organization shareholder must complete Parts 6

with UBTI that are partners of a partnership, enter the amount

through 11, as applicable. All individual S corporation

shareholders should complete Arizona Form 308-I.

from Part 5, line 38.

Line 42a -

Part 5 - Partner's Share of Credit

Enter the current taxable year's tax, including recapture, from

Lines 36 through 40 -

Form 99T, line 8; or Form 120, line 18; or Form 120A,

After a partnership completes Parts 1, 2 and 3, it must

line 10; or Form 120S, line 14; or Form 120X, line 18(c).

complete Part 5, lines 36 through 40, separately for each

Line 42b -

partner. The partnership must furnish each partner with a

Enter the amount of nonrefundable tax credits from Form 300.

copy of pages 1 through 4 of Form 308 and a copy of the

Exclude the credit or carryover for increased research activities.

Certificate, if applicable. Each corporate partner must

complete Parts 6 through 11, as applicable. A partner that is

Line 42c -

an exempt organization with UBTI must complete Parts 6

Enter the current taxable year's credit for increased research

through 11, as applicable. All individual partners should

activities that will be used to offset the current taxable year's tax

complete Arizona Form 308-I.

liability. Subtract line 42b from line 42a. Enter the difference. If

Part 6 - Refundable Portion of the Current

the difference is zero or more, also enter it on Part 11, line 66; also

enter it on Form 300, Part 1, line 4, column (a), and Form 300,

Taxable Year's Excess Credit

Part 2, line 36. If the difference is less than zero, enter zero.

Complete Part 6 if any of the following apply:

Line 43 -

1) You are a corporation, and exempt organization with

Subtract line 42c from line 41. Enter the difference. If the

UBTI, or an S corporation that elects to claim the credit,

difference is less than zero, enter zero; no refund is available for

and the "Yes" box on Part 1, line 1 and/or Part 1, line 3,

this taxable year. This is the current taxable year's excess credit.

is checked and you elect to receive a refund of up to

Line 44 -

75% of your excess credit, limited by the amount on

line 2 and/or line 5;

Multiply line 43 by 75% and enter the result. This is your

tentative refundable credit.

Line 45 -

2) You are a corporate partner in a partnership or an

Enter the maximum refundable credit. Corporations, exempt

exempt organization with UBTI that is a partner in a

organizations with UBTI, or S corporations, enter the amount

partnership, and the "Yes" box on Part 1, line 1 and/or

from Part 1, line 2. S corporations that are eligible for a refund

Part 1, line 3, is checked and you elect to receive a

because of a flow through from a partnership, enter the amount

refund of 75% of your excess credit, limited by the

from Part 1, line 5. Exempt organizations with UBTI that are

amount on line 39 and/or line 40;

S corporation shareholders enter the amount from Part 4, line 34

or line 35. Corporate partners of a partnership or exempt

3) You are an exempt organization S corporation

organizations with UBTI that are partners of a partnership, enter

shareholder, and the "Yes" box on Part 1, line 1 and/or

the amount from Part 5, line 39 or line 40.

Part 1, line 3, is checked and you elect to receive a

Line 46 -

refund of 75% of your excess credit, limited by the

Enter the lesser of line 44 or line 45. Complete Part 7 and

amount on line 34 and/or line 35.

Part 8, only if you have carryovers from taxable years prior to

If you are an individual receiving a pass through from a

2014. Otherwise, skip Part 9 and Part 10.

partnership or an S corporation, you must complete Form 308-I

Enter the amount from line 46 on Form 99T, line 12; or

to claim your refund. Include both the entity’s Form 308 and

Form 120, line 22; or Form 120A, line 14; or Form 120S,

your Form 308-I with your individual tax return.

line 18; or Form 120X, line 22. On the same line, be sure to

The excess credit is the current taxable year's credit for increased

check box 308 indicating you are claiming a refundable credit

research activities less the current taxable year's tax liability.

for increased research activities.

Carryovers of the credit for increased research activities from

Instructions For Arizona Form 308 - Credit For Increased Research Activities - 2014 Page 4

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