334-S: Credit for Motion Picture Production Costs – Distribution to Shareholders (2024)
Arizona · Arizona DOR · Used for tax years 2024
Arizona Form 334-S reports an S corporation shareholder’s share of the Credit for Motion Picture Production Costs, approved production expenses, and any credit to be recaptured. Shareholders use it to complete their own Form 334 and report the production expense addback when calc
Who files this form
Form 334-S is for distributing an S corporation’s Credit for Motion Picture Production Costs to its shareholders. Shareholders use it to complete their own Form 334.
The form’s directions say to complete Form 334-P for each shareholder, except for “trust or estate partners.” If an ownership share is held by a grantor trust disregarded for federal income tax purposes, it is treated as owned by the grantor. The grantor may claim that share of the credit.
What you'll need
To complete the form, have:
- The S corporation’s name, EIN and Priority Placement Number.
- The shareholder’s name, taxpayer identification number and ownership percentage.
- The S corporation’s Form 334, including the credit amount from Part 1, line 6, and any recapture amount from Part 2, line 12.
- The S corporation’s approved motion picture production expenses.
- For recapture, the Priority Placement Number of the recaptured credit and the date it was recaptured.
Shareholders must include the completed distribution form and a copy of the Arizona Commerce Authority Post-Approval with their return, and keep copies for their records.
How to file
The form gives these completion and return-attachment directions:
- Part 1: Enter the S corporation’s credit from Form 334, Part 1, line 6. Multiply it by the shareholder’s ownership percentage to find the shareholder’s credit on line 3c.
- Part 2: Enter the approved production expenses. Multiply them by the shareholder’s ownership percentage to find the shareholder’s expenses on line 4b.
- Part 3: Report the recaptured credit’s Priority Placement Number and recapture date. Multiply the recapture amount from the S corporation’s Form 334, Part 2, line 12, by the ownership percentage to find the shareholder’s recapture amount on line 5d.
S corporations: Provide each shareholder with the completed form and the Arizona Commerce Authority Post-Approval. The printed directions specifically say to keep a copy of each completed Form 334-P and include a copy with the S corporation return, even though this form is titled Form 334-S.
Shareholders: Include the completed form and a copy of the Post-Approval with your return. Keep copies of both.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Claiming the credit in the wrong year: If you file on a calendar-year basis and the S corporation files on a fiscal-year basis, claim the credit for the year in which the corporation’s fiscal year ends.
- Leaving out attachments: Shareholders must include the completed form and a copy of the Arizona Commerce Authority Post-Approval with their return.
- Missing the expense addback: Add the amount on line 4b back when calculating your Arizona taxable income.
- Missing the recapture entry: Enter the amount on line 5d on line 11 of your own Form 334.
- Not keeping records: Keep copies of the completed form and Post-Approval.
Questions people ask
Where do I report my share of the credit?
Enter the amount from line 3c on Part 1, line 5 of your own Form 334.
What do I do with my share of production expenses?
Add the amount on line 4b back when calculating your Arizona taxable income.
What does the recapture amount mean?
Line 5d is your share of the credit that has been determined to be incorrect. Enter it on line 11 of your Form 334.
Which year do I claim the credit if the corporation uses a fiscal year?
If you use a calendar year, claim the credit on your return for the year in which the corporation’s fiscal year ends.