318-P: Credit for Taxes Paid for Coal Consumed in Generating Electrical Power – Distribution to Partners (2025)
Arizona · Arizona DOR · Used for tax years 2025
Arizona Form 318-P reports the distribution of a partnership’s credit for taxes paid for coal consumed in generating electrical power to a corporate partner. It shows the partnership’s credit amount, the corporate partner’s ownership percentage, and that partner’s portion of the
Who files this form
Partnerships distributing this credit must complete a separate 2025 Form 318-P for each corporate partner 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 must include the completed Form 318-P with their return.
Individual taxpayers are not eligible to claim this credit.
What you'll need
To complete Form 318-P, have these details available:
- Partnership name and Employer Identification Number (EIN).
- Corporate partner’s name and Taxpayer Identification Number (TIN).
- Partnership credit amount from Form 318, Part 1, line 4.
- Corporate partner’s ownership percentage.
Corporate partners need their completed Form 318-P to report their share of the credit on their own Form 318.
How to file
Partnerships: Complete Form 318-P for each corporate partner. Provide each partner with a copy, keep a copy for your records, and include a copy of each completed form with your partnership return.
Corporate partners: Enter the credit 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 instructions.
Common mistakes
- Claiming the credit as an individual taxpayer. The form states that individual taxpayers are not eligible.
- Using the wrong tax year when filing on a calendar-year basis. If the partnership uses a fiscal year, claim the credit on your return 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
How is a corporate partner’s share of the credit calculated?
Multiply the partnership credit amount on line 3a by the corporate partner’s ownership percentage on line 3b. Enter the result on line 3c.
Where does the partnership credit amount come from?
Use the amount from Form 318, Part 1, line 4, for Form 318-P, line 3a.
Where does a corporate partner report the distributed credit?
Enter the amount from Form 318-P, line 3c, on the corporate partner’s own Form 318, Part 1, line 3.
Can an individual taxpayer claim this credit?
No. The form states that individual taxpayers are not eligible to claim this credit.
What if the corporate partner uses a calendar year but 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.