Schedule ACA: Air Carrier Apportionment (2025)
Arizona · Arizona DOR · Used for tax years 2025
Arizona Schedule ACA calculates an air carrier’s Arizona apportionment ratio using revenue aircraft miles flown within Arizona for flights beginning or ending in Arizona and total revenue aircraft miles flown everywhere. The schedule is included with the tax return.
Who files this form
A taxpayer that is a qualifying air carrier must use this alternate method to apportion its business income to Arizona. The taxpayer must be engaged in air commerce, meaning transportation of people or property for hire by aircraft in interstate, intrastate, or international transportation.
For Form 120 filers filing a combined or consolidated return, the combined group or Arizona affiliated group must use this method if 50 percent or more of the taxpayer’s gross income comes from air commerce. A single apportionment ratio applies to all group members.
What you'll need
Have the following information ready:
- The name shown on Form 99T, 120, 120S, 120X, or 165.
- The employer identification number (EIN).
- Revenue aircraft miles flown within Arizona for flights beginning or ending in Arizona.
- Total revenue aircraft miles flown everywhere.
How to file
Include Schedule ACA with the tax return.
- Enter Arizona revenue aircraft miles for flights beginning or ending in Arizona on line 1.
- Enter total revenue aircraft miles flown everywhere on line 2.
- Divide line 1 by line 2. Carry the result to six decimal places and enter it on line 3.
- Also enter the ratio on the applicable return or schedule:
- Form 99T, page 1, line 4.
- Form 120, page 1, line 9.
- Form 120S, page 1, line 7, and Form 120S, Schedule K-1(NR), column (b).
- Form 120X, page 1, line 9(c).
- Form 165, Schedule K-1(NR), column (b).
The supplied text does not provide a mailing address or e-filing instructions.
Common mistakes
- Leaving Schedule ACA out of the tax return. The form specifically reminds filers to include the schedule with the return.
Questions people ask
How is the Arizona apportionment ratio calculated?
Divide revenue aircraft miles flown within Arizona for flights beginning or ending in Arizona by total revenue aircraft miles flown everywhere. Carry the result to six decimal places.
What are revenue aircraft miles flown?
These are aircraft miles flown in revenue service. Aircraft miles are computed using airport-to-airport distances for each flight stage actually completed, whether or not the flight follows the scheduled pattern.
Does a flag stop count if the aircraft does not land?
Yes. Operation to a flag stop counts as a completed stage even if a landing is not actually made.
What if airport-to-airport distances do not apply?
Determine aircraft miles flown by multiplying the aircraft type’s normal cruising speed by the airborne hours.