312-P: Agricultural Water Conservation System Credit – Distribution to Partnership (2024)
Arizona · Arizona DOR · Used for tax years 2024
Arizona Form 312-P reports a partner’s share of the Agricultural Water Conservation System Credit passed through by a partnership. It identifies the partnership and partner, the partner’s ownership interest, and the partner’s share of the current year’s credit.
Who files this form
A partnership distributing the agricultural water conservation system credit must complete a separate Form 312-P for each partner that is an individual, S corporation, or another partnership, and give that partner a copy.
The receiving partner uses Form 312-P to complete its own Form 312 and includes both forms with its return.
What you'll need
To complete Form 312-P, have:
- The partnership’s name and employer identification number.
- The partner’s name, Social Security number or employer identification number, and ownership interest.
- The partnership’s Form 312, Part 2, line 10, used to determine the partner’s pro rata share of the current year’s credit.
Partners need their completed Form 312-P to prepare their own Form 312. If you receive this credit from more than one partnership, use all of your Forms 312-P.
How to file
Partnerships: Complete a Form 312-P for each eligible partner, provide a copy to the partner, and keep a copy for your records. The form directs partnerships to include a copy of Form 312 and a copy of each Form 312-P with their Form 312.
Partners: Enter the amount from Form 312-P, line 1, on your own Form 312, Part 2, line 8. If you have Forms 312-P from multiple partnerships, add the amounts and enter the total. Include Form 312-P and your own Form 312 with your return, and keep a copy for your records.
The form does not provide a mailing address or e-filing instructions.
Common mistakes
- Claiming the credit in the wrong year: If you file on a calendar-year basis but the partnership uses a fiscal year, claim the credit for the year in which the partnership’s fiscal year ends. The form’s example says a partnership tax year ending in February 2025 means claiming the credit on your 2025 return.
- Leaving out a pass-through credit: If you receive this credit from more than one partnership, add all amounts from Forms 312-P before entering the total on Form 312, Part 2, line 8.
- Omitting the required attachments or records: Partners must include Form 312-P and their own Form 312 with their return. Both partnerships and partners are directed to keep copies.
Questions people ask
What does line 1 of Form 312-P show?
It shows the partner’s pro rata share of the current year’s credit, based on ownership interest, from the partnership’s Form 312, Part 2, line 10. This is the partner’s pass-through credit from that partnership.
Where do I enter this credit on my own Form 312?
Enter Form 312-P, line 1, on Form 312, Part 2, line 8. If you receive this credit from multiple partnerships, enter the combined total from all Forms 312-P.
What if the receiving partner is an S corporation?
The S corporation must also complete a separate Form 312-S for each individual shareholder, identifying that shareholder’s pro rata share of qualifying expenses and pass-through credit amount.
What if the receiving partner is another partnership?
That partnership must complete a separate Form 312-P for each of its partners that is an individual, S corporation, or another partnership, identifying the partner’s pro rata share of the pass-through credit.