Form 306 - 2004 Military Reuse Zone Credit Instructions (Page 5 of 7) in pdf

Arizona Form 306

Line 21, column (a) -

Line 23, column (c) -

Enter the total number of non-dislocated military base

Multiply the amount entered on line 23, column (a) by the

employees in the third year of continuous employment in the

amount on line 23, column (b). Enter the result on line 23,

zone from Form 306-4, line 26, column (c3).

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

military base employees in the fifth year of continuous

Arizona's statutes do not require that the non-dislocated

employment in the zone.

military base employee who is claimed in the third year of

continuous employment be the same non-dislocated military

Line 24 -

base employee who was claimed in the second year of

Add the numbers in column (a) on lines 19, 20, 21, 22, and

employment. Therefore, if one of the originally claimed new

23. Enter the total in column (a) on line 24. The number

non-dislocated military base employees leaves employment

shown on line 24, column (a), is the total number of non-

in year three, the business can claim the third year credit for

dislocated military base employees for which the business is

another non-dislocated military base employee who is in the

claiming the military reuse zone credit.

third year of continuous employment in the zone.

Add the amounts in column (c) on lines 19, 20, 21, 22, and

Line 21, column (c) -

23. Enter the total in column (c) on line 24. The amount

Multiply the amount entered on line 21, column (a) by the

shown on line 24, column (c) is the total allowable military

amount on line 21, column (b). Enter the result on line 21,

reuse zone credit for non-dislocated military base employees

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

for the current taxable year.

military base employees in the third year of continuous

Part VI - S Corporation Credit Election and

employment in the zone.

Shareholder's Share of Credit

Line 22, column (a) -

Line 25 -

Enter the total number of non-dislocated military base

This portion of the Form 306 must be completed by the S

employees in the fourth year of continuous employment in

corporation in order for the S corporation or its shareholders

the zone from Form 306-4, line 26, column (c4).

to claim the military reuse zone credit. The S corporation

Arizona's statutes do not require that the non-dislocated

must make an irrevocable election either to claim the credit

military base employee who is claimed in the fourth year of

or to pass the credit through to its shareholders. The election

continuous employment be the same non-dislocated military

statement must be signed by one of the officers of the S

base employee who was claimed in the third year of

corporation who is also a signatory to the Form 120S.

employment. Therefore, if one of the originally claimed new

306: If the S corporation

AGGREGATE SUMMARY FORM

non-dislocated military base employees leaves employment

elects to claim the credit itself, do not complete Section VI on

in year four, the business can claim the fourth year credit for

the aggregate summary.

another non-dislocated military base employee who is in the

fourth year of continuous employment in the zone.

Lines 26 through 29 -

Line 22, column (c) -

Single zone location: If the S corporation has one business

location in a military reuse zone, it must complete Form 306,

Multiply the amount entered on line 22, column (a) by the

Parts I through V. Then, it must complete Part VI, lines 26

amount on line 22, column (b). Enter the result on line 22,

through 29, separately for each shareholder. The S corporation

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

must furnish each shareholder with a copy of the completed

military base employees in the fourth year of continuous

Form 306.

employment in the zone.

306: If the S corporation has

Line 23, column (a) -

multiple zone locations, it must complete an aggregate

Enter the total number of non-dislocated military base

summary Form 306. Enter the taxpayer name and employer

employees in the fifth year of continuous employment in the

identification number as shown on the tax return. Indicate the

zone from Form 306-4, line 26, column (c5).

period covered by the taxable year (in an MM/DD/YYYY

Arizona's statutes do not require that the non-dislocated

format). Enter “aggregate summary” at the top of page 1 of

Form 306. Complete Parts IV and V. Then, complete Part VI,

military base employee who is claimed in the fifth year of

lines 26 through 29, separately for each shareholder. The S

continuous employment be the same non-dislocated military

corporation must provide each shareholder a copy of the

base employee who was claimed in the fourth year of

completed aggregate summary Form 306 and the completed

employment. Therefore, if one of the originally claimed new

non-dislocated military base employees leaves employment

Forms 306 for each zone location. The S corporation does

not have to provide each shareholder with a copy of the

in year five, the business can claim the fifth year credit for

Forms 306-1, 306-2, 306-3 and 306-4.

another non-dislocated military base employee who is in the

fifth year of continuous employment in the zone.

Each shareholder must complete Parts VIII and IX.

Form 306 - 2004 Military Reuse Zone Credit Instructions Page 5

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