325-P: Agricultural Pollution Control Equipment Credit – Distribution to Partners (2025)
Arizona · Arizona DOR · Used for tax years 2025
Arizona Form 325-P reports an individual partner’s share of a partnership’s Agricultural Pollution Control Equipment Credit. It lists the partnership’s credit amount, the partner’s ownership percentage, and the resulting portion of the credit.
Who files this form
Partnerships must complete a 2025 Form 325-P for each individual partner and include a copy of each completed form with the partnership return. They must also give each individual partner a copy and keep copies for their records.
Individual partners must use this form to complete their own Form 325, include the completed Form 325-P with their return, and keep a copy.
If a partnership ownership share is held by a grantor trust that is disregarded for federal income tax purposes, the share is treated as owned by the grantor. The grantor may claim their share of the credit.
Corporate taxpayers are not eligible to claim this credit.
What you'll need
To complete Form 325-P, have:
- The partnership’s name and Employer Identification Number (EIN).
- The individual partner’s name, Taxpayer Identification Number (TIN), and ownership percentage.
- The partnership’s Form 325, Part 3, line 18, which shows the credit amount to distribute.
Individual partners need their completed Form 325-P to complete their own Form 325 and must include Form 325-P with their return.
How to file
For the 2025 form, partnerships should:
- Complete Part 1 with the partnership and individual partner information.
- Enter the partnership credit from Form 325, Part 3, line 18, on line 3.
- Multiply line 3 by the partner’s ownership percentage on line 2(c). Enter the partner’s portion of the credit on line 4.
- Give the individual partner a copy, keep a copy, and include a copy with the partnership return.
Individual partners should include the line 4 amount on their own Form 325, Part 2, line 15. Include the completed Form 325-P with the individual return and keep a copy.
Common mistakes
- Claiming the credit for the wrong year: If you file on a calendar-year basis and the partnership files on a fiscal-year basis, claim the credit on your return for the year in which the partnership’s fiscal year ends.
- Leaving out required copies: Partnerships must include each completed Form 325-P with their return and provide a copy to each individual partner. Individual partners must include their completed form with their own return. Both must keep copies.
- Putting the partner’s credit on the wrong line: The amount on Form 325-P, line 4, belongs on the individual partner’s Form 325, Part 2, line 15.
- Claiming the credit as a corporate taxpayer: Corporate taxpayers are not eligible.
Questions people ask
How is my share of the credit calculated?
The partnership multiplies its credit amount on line 3 by your ownership percentage on line 2(c). Your share appears on line 4.
Where do I report my share of the credit?
Include the amount from Form 325-P, line 4, on your own Form 325, Part 2, line 15.
What if I use a calendar tax year but the partnership uses a fiscal year?
Claim the credit on your return for the year in which the partnership’s fiscal year ends.
Can a grantor claim the credit for a share held by a trust?
If the partnership share is owned by a grantor trust that is disregarded for federal income tax purposes, it is treated as owned by the grantor. The grantor may claim their share of the credit.
Can corporate taxpayers claim this credit?
No. The form states that corporate taxpayers are not eligible to claim this credit.