Form 306 - 2004 Military Reuse Zone Credit Instructions (Page 3 of 7) in pdf

Arizona Form 306

Line 6 -

Part IV - Credit Calculation for Dislocated

Military Base Employees

Enter the employment baseline.

A newly established business in a military reuse zone would

306: Complete this section.

AGGREGATE SUMMARY FORM

not have any full-time employment within the zone during

Do not complete an aggregate summary Form 306-2.

the immediately preceding taxable year. The employment

Lines 13 through 18 and Form 306-2

baseline for this employer is zero.

Before completing lines 13 through 18, complete the Form

An established business already located in an area which

306-2 listing each dislocated military base employee for

subsequently becomes a designated military reuse zone

whom the business is claiming a credit.

would have full-time employment at this location during the

immediately preceding taxable year. This employer would

Line 13, column (a) -

enter the employment baseline established with the

Enter the number of dislocated military base employees from

Department of Economic Security for the fourth quarter of

Form 306-2, line 26, column (c1).

the preceding year.

NOTE: The maximum number of dislocated military base

Line 7 -

employees entered on line 13, column (a), cannot exceed the

Subtract the amount on line 6 from the amount on line 5. If

maximum number of new employees entered on Part III, line

this amount is less than one, enter zero. If this amount

12. If the business is claiming the military reuse zone credit

contains a decimal, round down to the next whole number.

for dislocated military base employees and non-dislocated

This is the net increase in employment.

military base employees, the total number of employees

Part III - Maximum Number of New Employees

claimed in both categories cannot exceed the maximum

number of new employees from Part III, line 12.

306: Leave this section blank.

AGGREGATE SUMMARY FORM

Do not complete an aggregate summary Form 306-1 or an

Line 13, column (c) -

aggregate summary Form 306-3.

Multiply the amount entered on line 13, column (a) by the amount

Lines 8 through 12 and Form 306-1 and Form 306-3

on line 13, column (b). Enter the result on line 13, column (c).

This is the allowable credit for new dislocated military base

The maximum number of new employees for which the

employees in the first year of employment in the zone.

business may claim the military reuse zone credit is limited to

the lesser of the total number of new employees or the net

Line 14, column (a) -

increase in employment. Complete Form 306-1 listing each

Enter the total number of dislocated military base employees

dislocated military base employee in the first year of

in the second year of continuous employment in the zone

employment in the military reuse zone. Complete Form 306-3

from Form 306-2, line 26, column (c2).

listing each non-dislocated military base employee in the first

year of employment in the military reuse zone.

Arizona's statutes do not require that the dislocated military

base employee who is claimed in the second year of

Line 8 -

continuous employment be the same dislocated military base

Enter the total number of new employees employed in the

employee who was claimed in the first year of employment.

zone who are dislocated military base employees from the

Therefore, if one of the originally claimed new dislocated

Form(s) 306-1. "Dislocated military base employee" means a

military base employees leaves employment in year two, the

civilian who previously had permanent full-time civilian

business can claim the second year credit for another

employment on the military facility at the date the closure of

dislocated military base employee who is in the second year

the facility was finally determined under federal law, as

of continuous employment in the zone.

certified by the Arizona Department of Commerce.

Line 14, column (c) -

Line 9 -

Multiply the amount entered on line 14, column (a) by the

Enter the total number of new employees employed in the

amount on line 14, column (b). Enter the result on line 14,

zone who are not dislocated military base employees from the

column (c). This is the allowable credit for dislocated

Form(s) 306-3.

military base employees in the second year of continuous

Line 10 -

employment in the zone.

Add line 8 and line 9 and enter the total.

Line 15, column (a) -

Line 11 -

Enter the total number of dislocated military base employees

Enter the net increase in employment from Part II, line 7.

in the third year of continuous employment in the zone from

Form 306-2, line 26, column (c3).

Line 12 -

Arizona's statutes do not require that the dislocated military

Enter the lesser of line 10 or line 11. This is the maximum

base employee who is claimed in the third year of continuous

number of new employees for which the business may claim

employment be the same dislocated military base employee

the military reuse zone credit.

Form 306 - 2004 Military Reuse Zone Credit Instructions Page 3

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