Instructions For Form 345 - Arizona Credit For New Employment

Arizona Form 345

Part 8 - Total Available Credit

NOTE: Taxpayers who are partners or shareholders in multiple

entities claiming the credit must complete a schedule detailing

Line 40 -

the amount of the credit passed through from each partnership

Individuals, corporations (including S corporations that

or S corporation, and include the schedule with their tax returns.

elected to claim the credit), and exempt organizations with

Part 6 - Partner’s Share of Credit

UBTI - enter the amount from Part 4, line 19.

Lines 27 through 32 -

S corporation shareholders - enter the amount from Part 5,

line 23.

Complete Part 4, lines 27 through 32, separately for each

partner. The amounts in lines 30 through 32 will be used by

Partners of a partnership - enter the amount from Part 6, line

partners who receive pass-through credits from more than one

29.

entity or partners who will pass the credit to their partners or

This is the current year's credit for new employment.

S corporation shareholders (i.e. a tiered partnership).

Line 41 -

Each partner is entitled to only a pro rata share of the credit

based on the partner’s ownership interest in the partnership.

Enter the amount from Part 7, line 39, column (f). This is the

The total of the credit allowed to all partners may not exceed

total available credit carryover for new employment.

the amount that would have been allowed for a sole owner.

Line 42 -

The partnership must furnish each partner with a copy of the

Add line 40 and line 41 and enter the total. This is the total

Certification from Commerce and pages 1 through 3 of Form

available

credit

for

new

employment

for

qualified

345. Each partner must complete Part 7 and Part 8.

employment positions that may be applied to the current

NOTE: Taxpayers who are partners or shareholders in multiple

year's tax liability.

entities claiming the credit must complete a schedule detailing

Corporations, exempt organizations with UBTI, and

the amount of the credit passed through from each partnership

S corporations - enter the total here and on Form 300, Part 1,

or S corporation, and include the schedule with their tax returns.

line 20, column (c).

Part 7 - Available Credit Carryover

Individuals - enter the total here and on Form 301, Part 1, line 26,

column (c).

The taxpayer who is utilizing the credit carryover should

complete Part 7 only if its allowable credit for new

employment for qualified employment positions for prior

taxable years exceeded its Arizona income tax liability for

those taxable years.

Enter the taxable year(s) from which you are carrying over

the credit on line 33 in columns (a) through (e). On line 34,

enter the credit originally computed for that taxable year. On

line 35, enter the amount of the credit from that taxable year

already used. Subtract the amount on line 35 from the amount

on line 34 and enter the difference on line 36.

On line 37, enter the amount of the credit that is unallowable

because the business changed ownership. Subtract the amount

entered on line 37 from line 36, and enter the difference on

line 38.

Line 39 -

Add the amounts from columns (a) through (e) on line 38 and

enter the total in column (f) on line 39. This is the total credit

for new employment carryover available from prior taxable

years.

Instructions For Form 345 - Arizona Credit For New Employment - 2014 Page 5

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