Instructions For Form 345 - Arizona Credit For New Employment

Arizona Form 345

taxable year. Multiply the number in column (a) by $3,000

through 9, column (b) in Part 4, lines 16 through 19,

and enter the result in column (b).

respectively.

Line 8 -

If you checked "No" to the question on line 5, but checked

"Yes" to the question on line 10, enter the amounts from Part

In column (a), enter the number of employees in the third

3, lines 12 through 15 in Part 4, lines 16 through 19,

year of continuous employment in a qualified employment

respectively.

position as certified by Commerce for the business for this

taxable year. Multiply the number in column (a) by $3,000

If credit amounts are included in both Part 2 and Part 3, total

and enter the result in column (b).

those amounts in Part 4 using the instructions that follow.

Line 9 -

Line 16 -

Enter the sum of the numbers on lines 6, 7 and 8 in each

Enter the total of line 6, column (b) and line 12.

column. The number in column (a) is the total number of

Line 17 -

employees certified by Commerce for the business for this

Enter the total of line 7, column (b) and line 13. Generally,

taxable year. The amount in column (b) is the current year’s

the amount on line 17 cannot exceed the amount of first year

credit for new employment.

credits claimed in the prior year.

Part 3 - Qualification for Credit and Credit

Line 18 –

Amount Passed Through From S Corporations

Enter the total of line 8, column (b) and line 14. Generally,

and Partnerships

the amount on line 18 cannot exceed the amount of second

Line 10 -

year credits claimed in the prior year.

Did an entity from which you are claiming a pass through

Line 19 -

credit for new employment receive a Certification from

Enter the total of lines 16, 17 and 18. This is the current

Commerce? If so, check the "Yes" box. Otherwise, check the

year’s credit for new employment.

"No" box and skip lines 11 through 15.

Part 5 - S Corporation Credit Election and

Line 11 -

Shareholder’s Share of Credit

If you checked the "Yes" box on line 10, enter the name of

Line 20 -

the entity that received the Certification from Commerce, and

its taxpayer identification number on line 11.

An S corporation must make an irrevocable election to either

Line 12 -

claim the credit itself or pass the credit through to its

shareholders. The election statement must be signed by one

Enter your share of the credit for employees in first year or

of the officers of the S corporation who is also a signatory to

partial year of employment in a qualified employment

Arizona Form 120S. If the S corporation elects to claim the

position. Enter the amount from the S corporation’s Form

credit itself, it can skip lines 21 through 26 and complete Part

345, Part 5, line 24 or the partnership’s Form 345, Part 6, line

7 and Part 8.

30.

If the S corporation elects to pass the credit through to its

Line 13 -

shareholders, it must first complete Form 345, Parts 1, 2, and

Enter your share of the credit for employees in the second

4. If the S corporation received a pass through credit from a

year of continuous employment in a qualified employment

partnership, it must also complete Part 3. The S corporation

position. Enter the amount from the S corporation’s Form

must then complete Part 5, lines 21 through 26, separately for

345, Part 5, line 25 or the partnership’s Form 345, Part 6, line

each shareholder.

31.

Lines 21 through 26 -

Line 14 -

If the S corporation elects to pass the credit through to its

Enter your share of the credit for employees in the third year

shareholders, it must complete lines 21 through 26 separately

of continuous employment in a qualified employment

for each shareholder. The amounts in lines 24 through 26 will

position. Enter the amount from the S corporation’s Form

be used by shareholders who receive pass-through credits

345, Part 5, line 26 or the partnership’s Form 345, Part 6, line

from more than one entity.

32.

Each S corporation shareholder is entitled to only a pro rata

Line 15 -

share of pass-through credit based on ownership interest in

the S corporation. The total of the credit allowed to all

Enter the total of lines 12, 13 and 14. This is your share of

shareholders may not exceed the amount that would have

the current year’s credit for new employment.

been allowed for a sole owner.

Part 4 - Current Taxable Year’s Credit

The S corporation must furnish each shareholder with a copy

If you checked "No" to the question on line 10 and skipped

of the Certification from Commerce and pages 1 through 3 of

lines 11 through 15, enter the amounts from Part 2, lines 6

Form 345. Each shareholder must complete Part 7 and Part 8.

Instructions For Form 345 - Arizona Credit For New Employment - 2014 Page 4

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