Instructions For Arizona Form 306 - Military Reuse Zone Credit

Arizona Form 306

interest. The total of the credits allowed all owners may not

Line 5 -

exceed the amount that would have been allowed for a sole

Enter the average employment in the military reuse zone for

owner of the business.

the current taxable year. Complete the worksheet below to

The credit is available to an exempt organization that is

determine the average employment during the current taxable

subject to corporate income tax on unrelated business taxable

year.

income (UBTI). The credit must result from the activities that

On lines 1 through 12 below, enter the number of employees

generate UBTI.

employed at the end of each month by the business located in

Aggregate summary:

This is a single Form 306 that

the military reuse zone.

combines the results of multiple business locations in a military

reuse zone or zones. Taxpayers having multiple business

Average Full-Time Employment Worksheet

locations must first complete separate Forms 306, 306-1,

Line 5 Column –

306-2, 306-3, and 306-4 for each business location, whether

Current Taxable

those locations are in the same military reuse zone or multiple

Year

military reuse zones. Then, complete an aggregate summary of

January

Form 306. Do not complete aggregate summaries of

Forms 306-1 through 306-4.

February

Taxpayers do

need to complete the following portions of

NOT

March

an aggregate summary of Form 306:

April



Part 1 - Business Information

May



Part 2 - Net Increase in Employment

June



Part 3 - Lines 8 through 11 (line 12 must still be completed)

July

Specific Instructions

August

Complete the name and taxpayer identification number

September

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

October

the taxable year. Include the completed form with the tax

November

return.

All returns, statements, and other documents filed with the

December

department require a taxpayer identification number (TIN).

Total – Add lines 1 through 12.

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

Total number of months during

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

the taxable year in which the

identification number. The TIN for an individual is the

employer was in business.

taxpayer's social security number or an Internal Revenue

Average – Divide the amount on

Service individual taxpayer identification number. Taxpayers

line 13 by the amount on line 14.

that fail to include their TIN may be subject to a penalty.

Line 6 -

Part 1 - Business Information

Enter the previous year’s fourth quarter employment. A

Lines 1 through 4 -

newly established business in a military reuse zone that did

On lines 1 through 3, enter the business’s name, its actual

not have any employment within the zone during the fourth

location in the zone (may not be its mailing address), and

quarter of the immediately preceding taxable year would

employer identification number. On line 4, enter the name of

enter zero.

the military reuse zone in which the business is located.

An established business already located in an area that

subsequently becomes a designated military reuse zone could

NOTE: If there is more than one location in a military reuse

have employment in the zone during the fourth quarter of the

zone, include a schedule listing the name, location address,

immediately preceding taxable year. This employer would

employer identification number, and zone of each location.

enter their previous year’s fourth quarter employment in the

Part 2 - Net Increase in Employment

zone only, based on their report to the Arizona Department of

The military reuse zone credit is based on net increases in

Economic Security for unemployment tax purposes.

employment of full-time employees working in a military

Line 7 -

reuse zone. Whether there has been a net increase in

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

employment is determined by comparing the average

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

employment in the zone during the current taxable year with

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

the prior year’s fourth quarter employment in the zone. The

This is the net increase in employment.

prior year figure must be based on the employer’s

unemployment insurance report to the Arizona Department of

Economic Security, limited to employment in the zone.

Instructions For Arizona Form 306 - Military Reuse Zone Credit - 2014 Page 2

Related Articles

Related forms

Related Categories