331-P: Credit for Donation of School Site – Distribution to Partners (2025)

Who files this form

Partnerships distributing the school site donation credit must complete a separate 2025 Form 331-P for each partner, except trust or estate partners.

If a partnership share is owned 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.

Partners use the completed Form 331-P to complete their own Form 331 and must include Form 331-P with their return.

What you'll need

To complete Form 331-P, have:

• The partnership’s name and Employer Identification Number (EIN).
• The partner’s name and Taxpayer Identification Number (TIN).
• The partnership’s Form 331, Part 1, line 11 credit amount.
• The partner’s ownership percentage.
• The partner’s portion of the expenses for donating the property as a school site.

Partners need the completed Form 331-P to prepare their own Form 331. Individual partners claiming the credit and itemized deductions on federal Schedule A also need the amount deducted on Arizona Schedule A to determine the required add-back.

How to file

Partnerships

• Complete a Form 331-P for each eligible partner.
• Enter the partnership credit from Form 331, Part 1, line 11 on line 3a.
• Enter the partner’s ownership percentage on line 3b. Multiply line 3a by that percentage and enter the partner’s credit share on line 3c.
• Enter the partner’s portion of the school site donation expenses on line 4.
• Give each partner a copy, keep a copy for your records, and include a copy of each completed Form 331-P with the partnership return.

Partners

• Enter the credit amount from Form 331-P, line 3c on your own Form 331, Part 1, line 9.
• Include the completed Form 331-P with your return and keep a copy for your records.

The form does not provide a mailing address or e-file directions.

Common mistakes

• Claiming the credit in the wrong year. If you file on a calendar-year basis and the partnership files on a fiscal-year basis, claim the credit for the year in which the partnership’s fiscal year ends.
• Missing required copies. Partnerships must give each partner a completed copy, include copies with the partnership return, and keep copies. Partners must include their completed form with their return and keep a copy.
• Skipping the corporate partner add-back. Corporate partners must add back the amount on line 4 when calculating Arizona taxable income.
• Claiming both the credit and an itemized deduction for the donation. Individual partners cannot claim both. If you claim the credit and itemized deductions on federal Schedule A, add back the lesser of the amount on line 4 or the amount deducted on Arizona Schedule A.

Questions people ask

How is my share of the credit calculated?

The partnership multiplies its credit amount on line 3a by your ownership percentage on line 3b. The result on line 3c is your portion of the credit.

Where do I report my credit share?

Enter the amount from Form 331-P, line 3c on your own Form 331, Part 1, line 9. Include the completed Form 331-P with your return.

Can a grantor claim a share held through a grantor trust?

Yes. If the grantor trust is disregarded for federal income tax purposes, the partnership share is treated as owned by the grantor, who may claim their share of the credit.

What does line 4 represent for partners?

The partner directions describe line 4 as your portion of the value of the donated property and improvements used to calculate the credit. Corporate partners must add it back when calculating Arizona taxable income. Individual partners claiming the credit and itemized deductions on federal Schedule A must add back the lesser of line 4 or the amount deducted on Arizona Schedule A.

Official sources

• https://azdor.gov/forms