Form 332 Instructions - Credits For Healthy Forest Enterprises

Arizona Form 332

Calculating the Credits

Specific Instructions

The number of qualified employment positions on which the

Complete the name and taxpayer identification number section

credits can be computed cannot exceed 200 per year per

at the top of the form. Indicate the period covered by the

taxpayer. For example, if a taxpayer has several healthy forest

taxable year. Include all supporting forms with the tax return.

enterprises, the taxpayer would add up the net increase in

All returns, statements, and other documents filed with the

qualified employment positions for all enterprises and

department require a taxpayer identification number (TIN).

compute the credit on that number, or 200, whichever is the

The TIN for a corporation, an exempt organization with UBTI,

lesser amount. Therefore, although a taxpayer may have more

an S corporation, or a partnership is the taxpayer's employer

than 200 filled qualified employment positions, the taxpayer

identification number. The TIN for an individual is the

must select which of those positions should be used for

taxpayer's Social Security Number or an Internal Revenue

computing the credits. The same employees who are used to

Service individual taxpayer identification number. Taxpayers

compute the first year credit are used to compute the second

that fail to include their TIN may be subject to a penalty.

and third year credits.

Part 1 - Healthy Forest Enterprises Information

If the net increase is being computed for a group of

NOTE: Taxpayers claiming only a pass through of this credit

corporations filing a combined or consolidated Arizona

from Form 332-P and/or Form 332-S and are claiming:

corporate income tax return, that group is considered a single

•

The Employment Credit, skip to Part 5, line 17, column

taxpayer and therefore entitled to use no more than 200

(d).

positions for its credit calculations. Co-owners of the same

•

The Training Credit, Skip to Part 6, line 22, column (b).

enterprise(s) are similarly limited to the lesser of the net

increase in qualified employment positions or 200. Each co-

Lines 1 and 2 -

owner would get a pro rata share of the credits.

Enter the name and TIN of the healthy forest enterprise. For a

The number of qualified employment positions determined in

corporation, an exempt organization with UBTI, a partnership,

the first year will never increase in the second or third year.

or an S corporation, use the taxpayer's employer identification

Only the same positions that were qualified in the first year

number.

can be used to compute the credits in the two subsequent tax

Line 3 -

years.

Reserved for future use.

Employment Credit for Healthy Forest Enterprises

Lines 4 and 5 -

Once the taxpayer has determined which employees it will use

to compute the employment credit, the credit amount allowed

Check only one box on each line to answer each of the

questions line 4 and line 5.

per employee is applied. Only employee wages incurred

during the period the taxpayer has been certified may be used

Part 2 - Average Number of Full-Time

for this calculation. The credit amount per employee depends

Employees

on the employee’s year of employment, as follows.

Use these lines to calculate the difference in the average

First year employees: The lesser of $500 or one-fourth of the

number of full-time employees that worked for the healthy

taxable wages paid to an employee in a qualified employment

forest enterprise in this taxable year and the average for the

position in the first year or partial year of employment.

immediately preceding taxable year. The following worksheet

Second year employees: The lesser of $1,000 or one-third of

can be helpful in figuring the average. The column for each

the taxable wages paid to an employee in a qualified

year corresponds to line 6 and line 7 on page 1 of Form 332.

employment position in the second year of continuous

On lines 1 through 12 of the worksheet, enter the number of

employment.

full-time employees employed at the end of each month of the

Third year employees: The lesser of $1,500 or one-half of

year indicated. If the enterprise was not in operation in the

the taxable wages paid to an employee in a qualified

immediately preceding taxable year, that year’s average is

employment position in the third year of continuous

zero. Once the worksheet is completed, enter the amounts on

employment.

page 1 of Form 332.

Training Credit for Healthy Forest Enterprises

Once the taxpayer has determined which employees it will use

to compute the training credit, the credit amount allowed per

employee is applied. Only the net cost to the taxpayer of

training and certifying the new employee incurred during the

period the taxpayer has been certified may be used for this

calculation. The credit amount per employee is the net cost to

the taxpayer of training and certifying the employee, but not to

exceed $3,000 in each of the first three years of employment.

Form 332 Instructions - Credits For Healthy Forest Enterprises - 2016 Page 2

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