308-P: Credit for Increased Research Activities – Distribution to Partners (2025)
Arizona · Arizona DOR · Used for tax years 2025
Arizona Form 308-P reports a partner’s 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 a certificate from the Arizona Commerce Authority.
Who files this form
A partnership distributing its research and development credit must complete a 2025 Form 308-P for each partner, except trust or estate partners.
If a partnership ownership share is held by a grantor trust that is disregarded for federal income tax purposes, that share is treated as owned by the grantor. The grantor may claim their share of the credit.
Individual partners use Form 308-P to complete Form 308-I. Corporate partners and partners that are partnerships use it to complete Form 308.
What you'll need
Have the following information and documents ready:
- The partnership’s name and employer identification number (EIN).
- The partner’s name, taxpayer identification number (TIN), and proportionate share.
- The partnership’s Form 308, including Part 4, line 29, for the total research and development credit.
- 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 also need their own Form 308-I or Form 308 to report their share of the credit.
How to file
Partnership steps
- Complete a separate Form 308-P for each eligible partner.
- Enter the partnership and partner information in Part 1.
- In Part 2, enter the credit from the partnership’s Form 308, Part 4, line 29. Multiply it by the partner’s proportionate share to calculate line 4.
- In Part 3, indicate whether the partnership received an Arizona Commerce Authority certificate. If yes, include a copy and complete lines 5 and 6. If no, stop: there is no refundable portion to pass through.
- Include a copy of each completed Form 308-P with the partnership return. Give each partner a copy, along with the certification if Part 3 is completed. Keep copies for the partnership’s records.
Partner steps
- Individual partners: Transfer line 4 to Form 308-I, Part 3, line 24, and line 6, if applicable, to Part 7, line 37b.
- Corporate or other partners: Transfer line 4 to Form 308, Part 3, line 28. The form directs corporate or other partners to enter line 6 on Form 308, Part 7, line 41b, and specifically directs partners that are partnerships or S corporations to enter it on Form 308, Part 5, line 33.
- If Part 3 is completed, include Form 308-P and a copy of the Arizona Commerce Authority certification with your return.
- Keep a copy of the form and certification for your records.
Form 308-P does not provide a mailing address or e-file directions.
Common mistakes
- Passing through a refundable amount without a certificate. Part 3 says to stop if the partnership has not received an Arizona Commerce Authority certificate. There is no refundable portion to pass through.
- Leaving out required copies. The partnership must include each completed Form 308-P with its return. If Part 3 is completed, partners must include Form 308-P and the certification with their returns.
- Claiming the credit in the wrong year when tax years differ. 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. The form tells partnerships to keep copies of completed Forms 308-P and partners to keep the form and certification.
Questions people ask
How is my share of the credit calculated?
The partnership multiplies its total research and development credit from Form 308, Part 4, line 29, by your proportionate share. The result appears on Form 308-P, line 4.
Can the partnership pass through a refundable credit without an Arizona Commerce Authority certificate?
No. Part 3 says there is no refundable portion to pass through if the partnership has not received the certificate.
Which form do I use to claim my share?
Individual partners use Form 308-I. Corporate partners and partners that are partnerships use Form 308.
What if I use a calendar tax year but the partnership uses a fiscal tax year?
Claim the credit on your return for the year in which the partnership’s fiscal year ends.
Can a grantor claim a share held through a grantor trust?
Yes. If the grantor trust is disregarded for federal income tax purposes, the ownership share is treated as owned by the grantor, who may claim their share of the credit.