Instructions For Form 332 - Arizona Credits For Healthy Forest Enterprises - 2014

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Arizona Form
2014 Credits for Healthy Forest Enterprises
332
The credits are based on the net increase in the number of
CREDITS FOR HEALTHY FOREST ENTERPRISES
qualified employment positions created and filled by a
CONTACT INFORMATION
business operating a healthy forest enterprise.
Arizona Commerce Authority
The employment credit is computed using the wages of
Certification requirements Certification forms
qualified employees of the business and the net increase in
Program guidelines
the number of qualified employment positions.
The training credit is based on the net cost to the taxpayer
Website:
of training and certifying a new employee in a qualified
Program Manager
(602) 845-1200
employment position, but not more than $3,000 in each of the
first three years of employment.
Arizona Department of Revenue
Positions occupied by employees that meet the following
Tax forms and instructions Information and assistance
criteria are considered qualified employment positions.
Website:
NOTE: The business claiming a credit under a twelve month
Taxpayer assistance
(602) 255-3381
certification from Commerce must employ at least three new
From area codes 520 and 928, toll-free
(800) 352-4090
employees in qualified employment positions in the first
taxable year in which the credits are claimed. This three
General Instructions
position minimum does not apply to businesses first claiming
the credit under a 60 month certification from Commerce.
Employment Credit for Healthy Forest Enterprises
EMPLOYEES IN QUALIFIED POSITIONS
Arizona Revised Statutes (A.R.S.) §§ 43-1076 and 43-1162 allow
1. Must be Arizona residents on their hire date.
a business that operates a healthy forest enterprise to receive a
2.
Must be permanent, full-time employees in positions that
nonrefundable employment credit against individual and corporate
require at least 1,550 hours per year. The 1,550 hour
income tax liabilities for taxable years beginning from and after
requirement does not include overtime hours. If forest
December 31, 2004 through December 31, 2024.
closures or weather conditions beyond the taxpayer’s
Training Credit for Healthy Forest Enterprises
control result in a shorter period, this would not disqualify
A.R.S. §§ 43-1076.01 and 43-1162.01 allow a business that
the employee so long as the position is still permanent and
operates a healthy forest enterprise to receive a nonrefundable
full-time, and all other qualifications are met.
training credit against individual and corporate income tax
3. Must have duties that primarily involve or directly
liabilities for taxable years beginning from and after
support the harvesting, transporting or processing of
December 31, 2011 through December 31, 2024.
qualifying forest products for commercial use.
In order to claim either credit, the business must be a qualified
4. Must be compensated at wages equal to or greater than
healthy forest enterprise, as certified by the Arizona Commerce
the wage offer of the county, as computed annually by
Authority (Commerce). The business must provide a copy of its
the Arizona Department of Economic Security research
Commerce certification to the department for approval before
administration division.
5. Cannot have been employed by the business within the
using the certification to obtain this credit.
twelve months preceding their hire date.
The credit is available to an exempt organization that is
6.
Must have been employed for at least ninety days during
subject to corporate income tax on unrelated business taxable
the first taxable year. An employee who is hired during the
income (UBTI). The credit must result from the activities that
last ninety days of the taxable year shall be considered a
generate UBTI.
new employee during the following taxable year.
While a taxpayer may claim both credits for healthy forest
7.
Must have employer-provided health insurance coverage, a
enterprises with respect to the same employees, the credits for
portion of which must be paid for by the employer. The
healthy forest enterprises are in lieu of the following credits,
employer must pay for at least twenty-five percent of the
with respect to the same employees:
premium or membership cost of the insurance program in the
The credit for new employment, under A.R.S. §§ 43-1074
third year the employer claims the credit for healthy forest
or 43-1161 (claimed on Arizona Form 345); and
enterprises. The employer must pay at least forty percent of
this cost in the fourth year it claims the credit, and at least fifty
The military reuse zone credit, under A.R.S. §§ 43-1079
percent of the cost in the fifth year it claims the credit.
or 43-1167 (claimed on Arizona Form 306).
In general, a qualified healthy forest enterprise is a business
Calculating the Credits
operation that enhances or sustains forest health, sustains or
The number of qualified employment positions on which the
recovers watershed or improves public safety. A qualified healthy
credits can be computed cannot exceed 200 per year per
forest enterprise must be primarily engaged in the business of
taxpayer. For example, if a taxpayer has several healthy
harvesting, transporting or processing of qualifying forest products
forest enterprises, the taxpayer would add up the net increase
for commercial use. To obtain information regarding additional
in qualified employment positions for all enterprises and
criteria for qualification, contact Commerce using the contact
compute the credit on that number or 200, whichever is the
information shown above.
lesser amount. If the net increase is being computed for a
group of corporations filing a combined or consolidated

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