318-P: Credit for Taxes Paid for Coal Consumed in Generating Electrical Power – Distribution to Partners (2024)
Arizona · Arizona DOR · Used for tax years 2024
Arizona Form 318-P reports a corporate partner’s share of a partnership’s credit for taxes paid for coal consumed in generating electrical power. It lists the partnership’s credit amount, the corporate partner’s ownership percentage, and the resulting share of the credit.
Who files this form
Partnerships distributing this credit must complete a separate 2024 Form 318-P for each corporate partner. They must give each corporate partner a copy and include a copy of each completed form with the partnership return.
Corporate partners use Form 318-P to complete their own Form 318 and include the completed Form 318-P with their return.
Individual taxpayers are not eligible to claim this credit.
What you'll need
To complete the 2024 Form 318-P, have:
- The partnership’s name and Employer Identification Number (EIN).
- The corporate partner’s name and Taxpayer Identification Number (TIN).
- The partnership’s Form 318, Part 1, line 4 credit amount.
- The corporate partner’s ownership percentage.
- The beginning and ending dates if the partnership uses a fiscal year.
Corporate partners need the completed Form 318-P from the partnership to complete their own Form 318.
How to file
Partnerships
- Complete a Form 318-P for each corporate partner.
- Enter the partnership’s credit from Form 318, Part 1, line 4 on line 3a.
- Enter the corporate partner’s ownership percentage on line 3b.
- Multiply line 3a by line 3b and enter the partner’s share of the credit on line 3c.
- Give each corporate partner a copy, keep a copy for your records, and include a copy of each completed form with the partnership return.
Corporate partners
- Enter the amount from Form 318-P, line 3c on your own Form 318, Part 1, line 3.
- Include the completed Form 318-P with your return and keep a copy for your records.
The form does not provide a mailing address or e-filing directions.
Common mistakes
- Claiming the credit as an individual. The form states that individual taxpayers are not eligible.
- Using the wrong tax year when reporting a fiscal-year partnership’s credit. If you file on a calendar-year basis but the partnership files on a fiscal-year basis, claim the credit for the year in which the partnership’s fiscal year ends.
- Leaving out required copies. Partnerships must provide a completed form to each corporate partner and include copies with the partnership return. Corporate partners must include their completed form with their own return. Both must keep copies for their records.
Questions people ask
Can an individual taxpayer claim this credit?
No. Individual taxpayers are not eligible to claim this credit.
Does the partnership complete one form for all corporate partners?
No. The partnership must complete a separate Form 318-P for each corporate partner.
How is a corporate partner’s share calculated?
Multiply the partnership’s credit amount on line 3a by the corporate partner’s ownership percentage on line 3b. Enter the result on line 3c.
Where does a corporate partner report the credit?
Enter the amount from Form 318-P, line 3c on the corporate partner’s own Form 318, Part 1, line 3.
What if the corporate partner uses a calendar year and the partnership uses a fiscal year?
Claim the credit on the corporate partner’s return for the year in which the partnership’s fiscal year ends.