315: Pollution Control Credit (2025)

Who files this form

Form 315 is used to report the Pollution Control Credit. The form provides entries for:

• C corporations, S corporations claiming the credit at the corporate level, and exempt organizations with unrelated business taxable income (UBTI).
• Qualifying partnerships, which must pass the credit through to their corporate partners.
• Individuals with a valid carryover of this credit.

Individuals may no longer establish a new credit. Those with a valid carryover may use it for the remaining portion of the 5-year carryforward period and should complete Parts 5 and 6.

What you'll need

Have the information and forms needed for the parts that apply to you:

• Your name as shown on your tax return and your Social Security number or employer identification number.
• For qualifying equipment: its description, the date it was placed in service or is expected to be placed in service, and the total qualifying cost incurred during the taxable year.
• A separate equipment schedule if you need more space.
• Form(s) 315-P for credits passed through from partnerships to corporate partners.
• For carryovers: the taxable year, original credit amount, and amounts previously used or expired.

Partnerships passing through the credit must complete a Form 315-P for each corporate partner.

How to file

Include Form 315 with your tax return.

• Individuals with valid carryovers should skip to Part 5 and complete Parts 5 and 6.
• Partnerships passing through the credit must give each corporate partner a completed Form 315-P, include a copy of each with their tax return, and keep copies for their records.
• C corporations, S corporations claiming the credit at the corporate level, and exempt organizations with UBTI must also report the amounts from lines 25 through 27 on Form 300, Part 1, line 2, in the corresponding columns.
• Individuals report the carryover and total available credit on Form 301, Part 1, line 5, columns (b) and (c), if they did not make the SBI Election. Those who made the SBI Election use Form 301-SBI, Part 1, line 4, columns (b) and (c).

The provided form does not specify a mailing address or e-filing instructions.

Common mistakes

• Trying to establish a new credit as an individual. Individuals may only carry forward a valid existing credit for the remaining portion of the 5-year carryforward period.
• Failing to reduce the equipment's basis. A taxpayer electing to claim this credit under A.R.S. § 43-1170 must reduce the pollution control equipment's basis by the credit claimed when calculating Arizona depreciation or amortization.
• Missing partnership paperwork. Qualifying partnerships must pass the credit through to corporate partners, provide each partner a completed Form 315-P, attach copies to the return, and keep copies.
• Leaving Form 315 out of the return. The form says to include it with your return.

Questions people ask

How is the current-year credit calculated?

Part 1 multiplies total qualifying pollution control equipment costs incurred during the taxable year by 10%. Part 3 adds any credit passed through from partnerships and limits the total current-year credit to $500,000.

Can an individual claim a new Pollution Control Credit?

No. Individuals may no longer establish this credit. An individual with a valid carryover may carry it forward for the remaining portion of the 5-year carryforward period.

How do I calculate my available carryover?

In Part 5, subtract the amount previously used or expired from the original credit amount for each taxable year. Add the available amounts on lines 19 through 23 to get the total on line 24.

What must a partnership do with the credit?

A qualifying partnership must pass the credit through to its corporate partners and complete Form 315-P for each one. The partnership enters “0” for its current-year credit on Form 315, Part 6, line 25.

Official sources

• https://azdor.gov/forms