308-P: Credit for Increased Research Activities – Distribution to Partners (2024)
Arizona · Arizona DOR · Used for tax years 2024
Arizona Form 308-P reports a partner’s proportionate share of a partnership’s credit for increased research activities. It also reports the partner’s share of the maximum refundable portion of the credit when the partnership has received certification from the Arizona Commerce Au
Who files this form
A partnership distributing the credit for increased research activities must complete a separate Form 308-P for each partner, except trust or estate partners.
If a partnership share is owned by a grantor trust that is disregarded for federal income tax purposes, the share is treated as owned by the grantor. The grantor may claim their share of the credit.
Partners use the completed Form 308-P to complete their own credit form.
What you'll need
- The partnership’s Form 308, including Part 4, line 29, for the total research and development credit.
- The partnership’s name and EIN, plus the partner’s name, TIN, and proportionate share percentage.
- If completing Part 3, the Arizona Commerce Authority certificate and the maximum refund amount from the partnership’s Form 308, Part 5, line 35.
Partners need their completed Form 308-P to complete their own credit form. If Part 3 is completed, partners must include Form 308-P and a copy of the certification with their return.
How to file
Partnerships: Include a copy of each completed Form 308-P with the partnership return. Give each partner a copy of their completed form and, if Part 3 is completed, the Arizona Commerce Authority certification. Keep a copy of each completed form for your records.
Partners: Use Form 308-P to complete your own credit form. If Part 3 is completed, include the completed Form 308-P and a copy of the certification with your return. Keep copies of the form and certification for your records.
The form does not provide a mailing address or e-file directions.
Common mistakes
- Passing through a refundable credit without a certificate. Part 3 says to stop if the partnership has not received an Arizona Commerce Authority certificate. No refundable portion can be passed through.
- Leaving out required copies. Partnerships must include each completed Form 308-P with their return. If Part 3 is completed, partners must include the form and certification with their own return.
- Claiming the credit in the wrong year. If you file on a calendar-year basis and the partnership files on a fiscal-year basis, claim the credit for the year in which the partnership’s fiscal year ends.
- Not keeping records. Partnerships must keep copies of completed Forms 308-P. Partners must keep copies of their form and certification.
Questions people ask
How is my share of the credit calculated?
The partnership enters its total credit from Form 308, Part 4, line 29, on Form 308-P, line 3. It multiplies that amount by your proportionate share on line 2(c) to calculate your credit on line 4.
Where do I enter the credit from line 4?
Individual partners enter it on Form 308-I, Part 3, line 24. Corporate or other partners enter it on Form 308, Part 3, line 28.
How is my maximum refundable portion calculated?
If the partnership has an Arizona Commerce Authority certificate, it enters the maximum refund amount from Form 308, Part 5, line 35, on Form 308-P, line 5. It multiplies that amount by your proportionate share to calculate line 6. Without the certificate, no refundable portion can be passed through.
Where do I enter the amount from line 6?
Individual partners enter it on Form 308-I, Part 7, line 37b. Corporate or other partners enter it on Form 308, Part 7, line 41b. Partners that are partnerships or S corporations enter it on Form 308, Part 5, line 33.
Which tax year do I use if the partnership has a fiscal year?
If you file on a calendar-year basis, claim the credit on your return for the year in which the partnership’s fiscal year ends.