312-P: Agricultural Water Conservation System Credit – Distribution to Partnership (2025)
Arizona · Arizona DOR · Used for tax years 2025
Arizona Form 312-P reports a partner’s share of a partnership’s current-year Agricultural Water Conservation System Credit based on ownership interest. The partner uses the reported pass-through credit amount to complete their own Form 312.
Who files this form
A partnership distributing this credit must complete a separate Form 312-P for each partner that is an individual, S corporation, or another partnership, and provide a copy to that partner.
Partners use Form 312-P to complete their own Form 312 and include both forms with their return.
What you'll need
To complete or use Form 312-P, have:
- The partnership’s name and employer identification number.
- The partner’s name, Social Security or employer identification number, and ownership interest.
- The partnership’s Form 312, Part 2, line 10, which supplies the credit amount used to determine the partner’s share.
- Each Form 312-P received, if the partner receives this credit from more than one partnership.
Partners also need their own Form 312 to report the pass-through credit.
How to file
For the partnership
- Complete a Form 312-P for each eligible partner, showing that partner’s ownership-based share of the credit on line 1.
- Give the partner a completed copy.
- Include a copy of each Form 312-P with Form 312.
- Keep a copy for your records.
For the partner
- Enter the amount from Form 312-P, line 1, on your own Form 312, Part 2, line 8.
- If you received Forms 312-P from more than one partnership, add the amounts and enter the total on that line.
- Include Form 312-P and your own Form 312 with your return, and keep a copy for your records.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Using the wrong tax 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 year ending in February 2026 produces a credit claimed on the 2026 return.
- Leaving out a pass-through amount. If you receive this credit from multiple partnerships, the form directs you to total all Forms 312-P amounts on Form 312, Part 2, line 8.
- Forgetting copies. Partnerships must give partners completed copies. Partners must include Form 312-P with their own Form 312 and return. Both are directed to keep copies for their records.
Questions people ask
What does line 1 show?
It shows the partner’s share of the partnership’s current-year credit, based on ownership interest and the amount from Form 312, Part 2, line 10.
Where do I report the credit I received?
Enter Form 312-P, line 1, on your own Form 312, Part 2, line 8. If you received more than one Form 312-P, enter the total of those amounts.
What if the partner is an S corporation?
The S corporation must also complete a separate Form 312-S for each individual shareholder, identifying the shareholder’s share of qualifying expenses and the pass-through credit amount.
What if the 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 each partner’s share of the pass-through credit.