338: Credit for Investment in Qualified Small Businesses (2025)
Arizona · Arizona DOR · Used for tax years 2025
Arizona Form 338 reports the credit for investment in qualified small businesses for 2025. It totals credits authorized by the Arizona Commerce Authority, credits passed through from partnerships or S corporations, and available credit carryovers.
Who files this form
Include Form 338 with your return to claim the Credit for Investment in Qualified Small Businesses. The 2025 form covers current-year credits, pass-through credits from partnerships and S corporations, and available carryovers from 2022, 2023 and 2024.
Partnerships must complete a separate Form 338-P for each partner. S corporations must complete a separate Form 338-S for each individual shareholder.
What you'll need
- A copy of the Arizona Commerce Authority’s Authorization of Tax Credits. The form says you must include it with your return to be eligible for the credit.
- Form 338-P, if you receive a pass-through credit from a partnership. Use Part 2, line 4.
- Form 338-S, if you receive a pass-through credit from an S corporation. Use Part 2, line 4.
- Original credit amounts and amounts previously used for any carryovers from 2022, 2023 and 2024.
- Form 301 if you did not make the Small Business Income election, or Form 301-SBI if you did.
How to file
Include Form 338 and a copy of the Arizona Commerce Authority’s Authorization of Tax Credits with your return.
- In Part 1, enter the authorized 2025 credit and any pass-through credits from Forms 338-P and 338-S. Add these amounts on line 4.
- In Part 4, calculate available carryovers by subtracting amounts previously used from the original credit amounts. Add the available carryovers on line 8.
- In Part 5, enter the current-year credit on line 9, the available carryover on line 10, and their total on line 11.
- Transfer those three amounts to columns (a), (b) and (c) of Form 301, Part 1, line 13. If you made the Small Business Income election, use Form 301-SBI, Part 1, line 9 instead.
Partnerships must give each partner a completed Form 338-P and a copy of the authorization. S corporations must give each individual shareholder a completed Form 338-S and a copy of the authorization.
The supplied form does not list a mailing address or e-filing instructions.
Common mistakes
- Not claiming the credit on a timely filed return. For the year the credit is available, you must claim it by your return’s original or extended due date. Otherwise, that year’s credit expires and no carryover is allowed.
- Leaving out the authorization. You must include a copy of the Arizona Commerce Authority’s Authorization of Tax Credits with your return to be eligible for the credit.
Questions people ask
Where do I find my authorized 2025 credit amount?
Enter the amount for taxable year 2025 shown on the Arizona Commerce Authority’s Authorization of Tax Credits on Form 338, line 1.
Where do I enter a pass-through credit?
Enter the amount from Form 338-P, Part 2, line 4 on Form 338, line 2 for a partnership credit. Enter the amount from Form 338-S, Part 2, line 4 on Form 338, line 3 for an S corporation credit.
Which carryover years are listed on the 2025 form?
Part 4 lists 2022, 2023 and 2024. For each year, subtract the amount previously used from the original credit amount to calculate the available carryover.
Does the Small Business Income election change where I report the credit?
Yes. If you made the election, transfer the Part 5 amounts to Form 301-SBI, Part 1, line 9. If you did not, transfer them to Form 301, Part 1, line 13.