Instructions For Form 332 - Arizona Credits For Healthy Forest Enterprises

Arizona Form 332

Arizona corporate income tax return, that group is considered

identification number. The TIN for an individual is the taxpayer's

a single taxpayer and therefore entitled to use no more than

social security number or an Internal Revenue Service individual

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

taxpayer identification number. Taxpayers that fail to include their

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

taxpayer identification number may be subject to a penalty.

increase in qualified employment positions or 200. Each co-

Part 1 - Business Information

owner would get a pro rata share of the credits. Therefore,

Lines 1 and 2 -

although a taxpayer may have more than 200 filled qualified

Enter the name and taxpayer identification number of the

employment positions, the taxpayer must select which of

healthy forest enterprise. For a corporation, an exempt

those positions should be used for computing the credits. The

organization with UBTI, a partnership, or an S corporation,

same employees who are used to compute the first year credit

use the taxpayer's employer identification number.

are used to compute the second and third year credits.

Lines 3 through 5 -

The number of qualified employment positions determined in the

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

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

questions on line 3, line 4, and line 5.

the same positions that were qualified in the first year can be

used to compute the credits in the two subsequent tax years.

Part 2 - Average Number of Full-Time

Employment Credit for Healthy Forest Enterprises

Employees

Use these lines to calculate the difference in the average number

Once the taxpayer has determined which employees it will use

of full-time employees that worked for the healthy forest

to compute the employment credit, the credit amount allowed

enterprise in this taxable year and the average for the

per employee is applied. Only employee wages incurred during

immediately preceding taxable year. The following worksheet

the period the taxpayer has been certified may be used for this

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

calculation. The credit amount per employee depends on the

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

employee’s year of employment, as follows.

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

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

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

taxable wages paid to an employee in a qualified employment

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

position in the first year or partial year of employment.

immediately preceding taxable year, that year’s average is

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

zero. Once the worksheet has been completed, enter the

taxable wages paid to an employee in a qualified employment

amounts on page 1 of Form 332.

position in the second year of continuous employment.

Average Number of Full-Time Employees Worksheet

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

Line 6

Line 7

taxable wages paid to an employee in a qualified employment

Current

Immediately

position in the third year of continuous employment.

Taxable Year

Preceding

Taxable Year

Training Credit for Healthy Forest Enterprises

January

Once the taxpayer has determined which employees it will use to

February

March

compute the training credit, the credit amount allowed per

April

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

May

and certifying the new employee incurred during the period the

June

taxpayer has been certified may be used for this calculation. The

July

credit amount per employee is the net cost to the taxpayer of

August

training and certifying the employee, but not to exceed $3,000 in

September

each of the first three years of employment.

October

November

Credit Carryovers

December

Total – add lines 1

Co-owners of a business, including partners in a partnership and

through 12.

shareholders of an S corporation, may each claim only a pro rata

Total

number

share of the allowable credits based on the ownership interest. The

months

during

the

taxable year in which

total of the credits allowed all owners may not exceed the amount

the

healthy

forest

that would have been allowed for a sole owner of the business.

enterprise

was

business.

Specific Instructions

Average – divide the

amount on line 13 by

Complete the name and taxpayer identification number

the amount on line 14.

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

Line 8 -

the taxable year. Include all supporting forms with the tax

Subtract the amount on line 7 from the amount on line 6. If

return.

the difference contains a decimal, enter the whole number

All returns, statements, and other documents filed with the

only - do not round up. This is the net increase in the average

department require a taxpayer identification number (TIN). The

number of full-time employees. If the difference is zero, the

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

enterprise cannot claim an employment credit for qualified

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

employment positions created during the current taxable year.

Instructions For Form 332 - Arizona Credits For Healthy Forest Enterprises - 2014 Page 2

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