Arizona Form 308 - Credit For Increased Research Activities - 2016

ADVERTISEMENT

Arizona Form
2016 Credit for Increased Research Activities
308
research
expenses
and
Arizona
basic
research
CONTACTS
FOR
REFUND
OF
CREDIT
FOR
payments. Taxpayers cannot use the federal alternative
INCREASED RESEARCH ACTIVITIES
credit computation method.
Arizona Commerce Authority
The allowable current taxable year credit is a
percentage of:
Application forms
o
The excess, if any, of the Arizona qualified
Program guidelines
research expenses for the taxable year, over the
Website:
base amount; and
Program Manager
(602) 845-1200
o
The Arizona basic research payments.
CONTACTS FOR NONREFUNDABLE CREDIT FOR
The termination provisions of IRC § 41 do not apply.
INCREASED RESEARCH ACTIVITIES
For 2016, if the allowable expenses do not exceed
Arizona Department of Revenue
$2,500,000, the allowable credit is 24% of this amount. If
Tax forms and instructions
the allowable expenses exceed $2,500,000, the allowable
Information and assistance
credit amount is $600,000 plus 15% of the amount of
expenses over $2,500,000, subject to certain limitations.
Website:
A portion of the current year's excess credit may be
Taxpayer assistance
(602) 255-3381
refundable if you qualify.
From area codes 520 and 928, toll-free
(800) 352-4090
Corporate Taxpayers: If two or more members of a unitary
General Instructions
group or an Arizona affiliated group incur qualifying expenses,
the individual members of the group are not considered
NOTE:
2016 F
308
separate taxpayers. When a combined return or a consolidated
THE
ORM
IS USED BY TAXPAYERS THAT ARE
, E
return is filed, the unitary group or the Arizona affiliated group
CORPORATIONS
XEMPT
ORGANIZATIONS
WITH
UNRELATED
(UBTI), S
is considered a single taxpayer.
BUSINESS
TAXABLE
INCOME
CORPORATIONS
OR
. I
2016 F
PARTNERSHIPS
NDIVIDUAL TAXPAYERS MUST USE THE
ORM
REFUNDABLE PORTION OF THE CURRENT YEAR’S
308-I.
EXCESS CREDIT
Arizona Revised Statutes (A.R.S.) § 43-1168 provides a
If you qualify, and if the current taxable year’s credit for
corporate income tax credit for increased research activities in
increased research activities exceeds your income tax liability,
a taxable year.
a portion of the excess credit may be refundable to you. To
This credit is available to corporate taxpayers, corporate
qualify to receive this refund:
partners, exempt organizations subject to corporate income
You must have less than 150 full-time employees.
tax on unrelated business income (UBTI), or S corporation
You must apply to the Arizona Commerce Authority
shareholders.
(ACA) and receive a Certificate of Qualification
An exempt organization may utilize this credit only if it
(Certificate) to be eligible to receive a refund.
results from activities that generate UBTI.
The refund amount is the lesser of:
An S corporation may claim this credit against income
75% of the excess credit, or
Arizona is taxing at the corporate level, or it may make
the maximum refund amount indicated on the
an irrevocable election to pass this credit through to its
Certificate; any additional amount is waived.
shareholders.
The excess credit is the current year's credit less the current
A partnership must pass this credit through to its
year's tax liability. The 75% refund is only available for the
partners.
current year's excess credit for increased research activities.
If two or more taxpayers, including shareholders of an
The election to make this credit refundable must be made when
S corporation and partners in a partnership, share in the
you originally file your return to claim the current year’s credit.
eligible expenses, each taxpayer is eligible to claim a
proportionate share of the credit.
If two or more taxpayers, including shareholders of an
S corporation and partners in a partnership, share in the eligible
This credit is in lieu of the solar liquid fuel credit (claimed
expenses, each taxpayer is eligible to claim a proportionate
on Arizona Form 344) with respect to the same expenses.
share of the refund. An S corporation must apply for the
This credit is allowed in an amount computed pursuant to
Certificate on behalf of its shareholders. A partnership must
Internal Revenue Code (IRC) § 41 with the following
apply for the Certificate on behalf of its partners.
exceptions:
NOTE: The refund of this credit is calculated after your tax
Qualified research includes only research conducted in
liability. You must calculate all of your other credits before
Arizona. The term "qualified research", for purposes of
you can determine the current year's excess credit.
the Arizona tax credit, means qualified research, as
CARRY OVER OF UNUSED CREDIT
defined in IRC § 41, that is conducted in Arizona and
If your current taxable year’s credit exceeds your tax liability,
basic research, as defined in IRC § 41, which is
and you did not receive a refund of 75% of the excess, you may
conducted in Arizona.
carry forward the unused portion of your credit to the next 15
The amount of the credit is based on the federal regular
consecutive taxable years. Due to various law changes, the
credit computation method for Arizona qualified

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial
Go
Page of 7