Instructions For Arizona Form 308 - Research And Development Expenses Credit

Instructions For Arizona Form 308 - Research And Development Expenses Credit - 1999 Page 8

Arizona Form 308

Taxpayer H may only use the amount of expenses required to

compute a credit equal to the difference between the credit

amount on line 68 and the maximum credit for the taxable

year. Therefore, taxpayer H may only use $3,636,364 of its

$3,900,000 carryover from the 1998 taxable year. This is the

amount of expenses required to compute a credit of $100,000

($3,636,364 X .0275 = $100,000), which is equal to the

difference between the credit amount on line 68 ($150,000)

and the maximum credit for the taxable year ($250,000).

Line 70 -

Standard credit computation: Multiply the amount on line

69 by 20% (.20). Enter the result. This is the credit for

carryover of excess qualified research expenses.

Alternative credit computation: Multiply the amount on

line 69 by 2.75% (.0275). Enter the result. This is the credit

for carryover of excess qualified research expenses.

Instructions For Arizona Form 308 - Research And Development Expenses Credit - 1999 Page 8