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Arizona Credit for Increased Research Activities
Extracted from PDF file 2023-arizona-form-308.pdf, last modified December 2009Credit for Increased Research Activities
Arizona Form 308 Credit for Increased Research Activities 2023 Include with your return. For the calendar year 2023 or fiscal year beginning M M D D 2 0 2 3 and ending M M D D Y Y Y Y . Name as shown on Form 99T, 120, 120A, 120S, 120X or 165 Employer Identification Number If the taxpayer is electing the Alternative Simplified Credit (ASC) for this year, check the box. ASC Part 1 Qualification for the Credit Yes No 1 Did you have qualified research expenses for the tax year indicated above?.............................. a If “Yes”, and you are claiming the Arizona Credit for Increased Research Activities, go to line 2. b If “No”, go to line 3. 2 Is this credit refundable?............................................................................................................... Yes No a If “Yes”: 1 Include a copy of the certification you received from the Arizona Commerce Authority (ACA). 2 Enter the maximum refund amount authorized by the ACA here and on Part 5, line 32 and Part 7, line 41a................................................................................................................................................. b If “No”, go to line 3. 3 Are you claiming a pass through of this credit from a partnership?.............................................. (If you are claiming a pass through of this credit from more than one partnership, include copies of all Form(s) 308-P you received.) 4 Is this pass through credit refundable?......................................................................................... 00 2a2 Yes No Yes No 5 If you answered “Yes” to the question on line 1, go to Part 2. 6 If you answered “No” to the question on line 1 and “Yes” to the question on line 3, go to Part 3. 7 If you answered “No” to the question on line 1 and “No” to the question on line 3, complete this form ONLY if you have credit carryovers. Go to Part 8. Otherwise, STOP! YOU ARE NOT ELIGIBLE TO CLAIM THIS CREDIT. Part 2 Current Taxable Year’s Regular Credit Calculation- (Complete lines 8 through 27a if electing to claim the regular credit or are revoking the prior year ASC election. To elect the Alternative Simplified Credit, skip to page 5, Part 12, line 75.) 8 Basic research payments paid or incurred to qualified organizations: See instructions............................................................................................................... 8 00 9 Qualified organization base period amount.................................................................. 9 00 10 Subtract line 9 from line 8. If less than zero, enter “0”.................................................................................................. 10 11 Wages for qualified services (do not include wages used in figuring the federal work opportunity credit)......................................................................................................... 11 00 12 Cost of supplies............................................................................................................ 12 00 13 Cost to rent or lease computers................................................................................... 13 00 14 Contract research expenses: See instructions............................................................... 14 00 15 Total research expenses: Add lines 11 through 14. Enter the total.............................. 15 00 16 Average annual Arizona gross receipts: See instructions............................................... 16 00 17 Fixed-base percentage [not more than 16% (.1600)]: See instructions......................... 17 • 18 Base amount: Multiply line 16 by the percentage on line 17. Enter the result............................................................. 18 19 20 21 22 Subtract line 18 from line 15. If less than zero, enter “0”.............................................................................................. Multiply line 15 by 50% (.50). Enter the result.............................................................................................................. Enter the lesser of line 19 or line 20............................................................................................................................. Add lines 10 and 21. Enter the total............................................................................................................................. 00 19 20 21 22 00 00 00 00 00 23 00 • If line 22 is $2,500,000 or less, complete line 23 and skip lines 24 through 26. • If line 22 is more than $2,500,000, skip line 23 and complete lines 24 through 26. 23 Multiply line 22 by 24% (.24). Enter the result.............................................................................................................. 24 Subtract $2,500,000 from line 22. Enter the difference................................................ 24 00 25 Multiply line 24 by 15% (.15). Enter the result.............................................................. 25 00 26 Add $600,000 to line 25. Enter the total....................................................................................................................... 26 27a If the taxpayer is electing the regular credit, enter the amount from line 23 or line 26................................................. 27a 27b If the taxpayer is electing the Alternative Simplified Credit, enter the amount from page 5, Part 12, line 88............... 27b ADOR 10135 (23) 00 00 00 Continued on page 2 Name (as shown on page 1) Part 3 EIN Current Taxable Year’s Credit Passed Through from Partnerships 28 Enter the total amount of this credit received from all Form(s) 308-P, Part 2, line 4. Include copies of those forms with your return............................................................................................................................................................. 28 00 29 00 30 Enter the amount of your current year credit from Part 4, line 29................................................................................ 30 00 31 Multiply line 30 by 75% (.75). Enter the result............................................................................................................. 31 00 34 00 35 00 Part 4 Total Current Taxable Year Credit for Increased Research Activities 29 Total Current Year Credit: If the taxpayer is electing the regular credit, add line 27a and line 28. Enter the total. If the taxpayer is electing to claim the Alternative Simplified Credit, add line 27b and line 28. Enter the total. • Partnerships: Enter this amount on Part 2, line 3 of the partner’s Form 308-P. • S Corporations passing this credit through to its shareholders: Enter this amount on Part 2, line 3 of the shareholder’s Form 308-S......................................................................................................................................... Partnerships and S Corporations Only Part 5 Determining Maximum Refund Amount to be Passed Through 32 Enter the amount of your maximum refundable credit from Part 1, line 2a2................ 33 Enter the total maximum refundable credits received from partnerships on Form(s) 308-P, Part 3, line 6...................................................................................................... 32 00 33 00 34 Add line 32 and line 33. Enter the total. This is the maximum refundable credit for this taxable year........................ 35 Enter the lesser of line 31 or line 34. This is the maximum refund amount to be passed through to partners or shareholders.......................................................................................................................................................... Partnerships: Partnerships qualifying for this credit must pass it through to their partners. When passing this credit through to your partners, complete Form 308-P for each partner. • Provide a completed copy of Form 308-P to each partner. • Include a copy of each completed Form 308-P with your tax return. • Keep a copy of each completed Form 308-P for your records. Part 6 S Corporation Credit Election and Shareholder’s Share of the Credit S Corporations may elect to pass this credit through to its shareholders, or it may choose to keep it and apply it to its tax liability generated at the S Corporation level. 36 The S Corporation has made an irrevocable election for the taxable year ending (check only one box): 36a 36b MM D D Y Y Y Y to: Claim the credit for increased research and development as shown on Part 4, line 29 (for the taxable year indicated above); OR Pass the credit as shown on Part 4, line 29 (for the taxable year indicated above) through to its shareholders. Signature Title Date If passing the credit through to the shareholders: • Complete Form 308-S for each individual shareholder. • Provide a copy of each completed Form 308-S to each shareholder. • Include a copy of each completed Form 308-S with your tax return. • If the S Corporation passed the current year credit through to its shareholders, AND it has carryovers of this credit from prior years, skip Part 7 and complete the remainder of this form as appropriate. • Enter “0” on Part 11, line 72. ADOR 10135 (23) AZ Form 308 (2023) Page 2 of 5 Name (as shown on page 1) EIN Refundable Portion of the Taxpayer’s Current Taxable Year’s Excess Credit Part 7 Complete Part 7 only if you checked “Yes” in Part 1, line 2 or 4. 37 Current taxable year’s credit: Enter the amount from Part 4, line 29.......................................................................... 37 38a Enter the current year’s tax, including recapture amounts, from Form 99T, line 8; or Form 120, line 18; or Form 120A, line 10; Form 120S, line 14; or Form 120X, line 18(c)....................................................................................................................... 38a 00 38b Nonrefundable tax credits: Enter the amount of nonrefundable tax credits from Form 300, Part 1, line 17 less the amount (if any) on Form 300, Part 1, line 1, column (c)..................................................................................................................... 38b 00 38c Current taxable year’s credit for increased research activities that will be used to offset the current taxable year’s tax liability: Subtract line 38b from line 38a and enter the difference. If the difference is zero or more, enter it on Part 11, line 72; also enter it on Form 300, Part 1, line 1, column (a), and Form 300, Part 2, line 26. If less than zero, enter “0”............................................................................................................................................................... 38c 39 Current taxable year’s excess credit: Subtract line 38c from line 37 and enter the difference. If less than zero, enter “0”, because no refund is available..................................................................................................................... 39 00 40 Tentative refundable credit: Multiply line 39 by 75% (.75). Enter the result................................................................. 40 00 41c 00 42 00 00 00 Maximum refundable credit: See instructions. 41a Enter the maximum refundable credit amount authorized by ACA from Part 1, line 2a2. 41b Enter the partner’s maximum refundable credit amount from Form 308-P, Part 3, line 6. If this credit was passed through to you from more than one partnership, total the amounts indicated on Forms 308-P, Part 3, line 6. ................................................ 41a 00 41b 00 41c Add the amounts on lines 41a and 41b. Enter the total here....................................................................................... 42 Refundable Credit: Enter the lesser of line 40 or line 41c. Also enter this amount on Form 99T, line 12; or Form 120, line 22; or Form 120A, line 14; Form 120S, line 20; or Form 120X, line 22(c)............................................ Complete Part 8 if you have carryovers from prior years. If you elect to receive a refund of 75% of the excess credit, you cannot carry forward any amount from the year of the refund. Part 8 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 Available Credit Carryover Generated Before 01/01/2022 (a) Taxable Year (b) Original Credit Amount (c) Amount Previously Used or Expired 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 Total Available Carryover: Add lines 44 through 57 in column (d). Enter the total................................................ ADOR 10135 (23) AZ Form 308 (2023) 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 58 (d) Available Carryover: Subtract column (c) from column (b). 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 Page 3 of 5 Name (as shown on page 1) Part 9 59 60 61 62 63 64 65 66 67 68 69 EIN Available Credit Carryover Generated After 12/31/2021 (a) Taxable Year (b) Original Credit Amount (c) Amount Previously Used or Expired 00 00 00 00 00 00 00 00 00 00 Total Available Carryover: Enter the amount on line 59, column (d). Enter the total............................................ 00 00 00 00 00 00 00 00 00 00 (d) Available Carryover: Subtract column (c) from column (b). 00 00 00 00 00 00 00 00 00 00 00 69 Total Credit Carryover(s) Part 10 If you completed Part 7 and are receiving a refund or if you have no carryovers of this credit, do not complete Part 10. Complete Part 10 to figure the amount of credit carryover(s) you may claim to offset your tax liability this year. 70a Enter the credit carryover generated before 01/01/2022 from Part 8, line 58, column (d)........................................... 70a 00 70b Enter the credit carryover generated after 12/31/2021 from Part 9, line 69, column (d).............................................. 70b 00 71 Add lines 70a and 70b. Enter the total. This is the total credit carryover available..................................................... 71 00 72 00 73 00 74 00 Part 11 Total Available Nonrefundable Credit 72 Current year’s credit: If you completed Part 7 and are receiving a refund, enter the amount from Part 7, line 38c. If you are not receiving a refund, enter the amount from Part 4, line 29. Partnerships and S Corporations that passed the current year credit through to partners or shareholders, enter “0”. • Also enter this amount on Form 300, Part 1, line 1, column (a)................................................................................ 73 Total credit carryover: If you completed Part 7 and are receiving a refund, enter “0”. Otherwise, enter the credit carryover from Part 10, line 71. • Also enter this amount on Form 300, Part 1, line 1, column (b)................................................................................ 74 Total available credit: Add lines 72 and 73. Enter the total. • Also enter this amount on Form 300, Part 1, line 1, column (c)................................................................................ ADOR 10135 (23) AZ Form 308 (2023) Page 4 of 5 Name (as shown on page 1) EIN ALTERNATIVE SIMPLIFIED CREDIT WORKSHEET Part 12 Current Taxable Year’s Alternative Simplified Credit Calculation- (Complete lines 75 through 88 if electing the Alternative Simplified Credit. To elect the regular Credit, complete Part 2, lines 8 through 27a.) 75 Basic research payments paid or incurred to qualified organizations:......................... 75 76 Qualified organization base period amount.................................................................. 76 00 00 77 00 78 Multiply line 77 by 20% (.20) Enter the result. ............................................................................................................ 78 79 Wages for qualified services (do not include wages used in figuring the federal work opportunity credit)......................................................................................................... 79 00 80 Cost of supplies............................................................................................................ 80 00 81 Cost to rent or lease computers................................................................................... 81 00 82 Contract research expenses: See instructions............................................................... 82 00 83 Total research expenses: Add lines 79 through 82. Enter the total............................. 83 00 00 77 Subtract line 76 from line 75. Enter the difference. If less than zero, enter “0”............................................................ 84 Enter your total qualified research expenses for the prior 3 years. If you had no qualified research in any of those 3 years, skip lines 85 and 86. ................................ 84 85 Divide line 84 by 6.0 Enter the result........................................................................... 85 00 00 86 Subtract line 85 from line 83. Enter the difference. If less than zero, enter “0”............ 86 00 87 Multiply line 86 by 14% (.14). If you skipped lines 85 and 86, multiply line 83 by 6% (.06). Enter the result.............. 87 00 88 Add lines 78 and 87. Enter the total. Also, enter this amount on Part 2, line 27b and complete the remainder of Form 308................................................................................................................................................. 00 88 Print ADOR 10135 (23) AZ Form 308 (2023) Page 5 of 5
Arizona Form 308
More about the Arizona Form 308 Corporate Income Tax Tax Credit TY 2023
We last updated the Credit for Increased Research Activities in February 2024, so this is the latest version of Form 308, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form 308 directly from TaxFormFinder. You can print other Arizona tax forms here.
Related Arizona Corporate Income Tax Forms:
TaxFormFinder has an additional 95 Arizona income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Arizona Form 308.
| Form Code | Form Name |
|---|---|
| Form 308-I | Credit for Increased Research Activities - Individuals |
View all 96 Arizona Income Tax Forms
Form Sources:
Arizona usually releases forms for the current tax year between January and April. We last updated Arizona Form 308 from the Department of Revenue in February 2024.
Form 308 is an Arizona Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Arizona Form 308
We have a total of ten past-year versions of Form 308 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2012 Form 308
Arizona Form 308
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