Arizona Credit for New Employment

Form 345 is obsolete, and is no longer supported by the Arizona Department of Revenue.

Credit for New Employment
Arizona Form 345, 345-1, 345-2Arizona Form

Credit for New Employment

345

2019

Include with your return.
For the calendar year 2019 or fiscal year beginning M M D D 2 0 1 9 and ending M M D D Y Y Y Y .
Name as shown on Form 140, 140PY, 140NR, 140X, 99T, 120, 120A, 120S, 120X, or 165

Part 1

Business Information

Business Name

Business Location Address — Street
City

Social Security or
Employer Identification Number

State

ZIP Code

Employer Identification Number

4a What type of entity is the business?
 C Corporation  Exempt Organization  Limited Liability Company (LLC)
 Partnership  S corporation
 Sole Proprietorship
4b If the business is an LLC, what is the federal tax classification? Check only one box:
 C Corporation  Disregarded Entity
 Partnership
 S corporation
If the business is an LLC, a partnership or an S corporation, include a schedule that lists ownership information including: name, address, TIN,
and ownership percentage at the end of the tax year.

Part 2
5
6
7

Part 3

Qualification for Credit

Did you receive certification from the Arizona Commerce Authority?...........................................
If “Yes”, include a copy of the Certification.
Are you claiming a pass through of this credit from a partnership and/or an S corporation?.......
If “Yes”, include a copy of Form(s) 345-P and/or Form(s) 345-S.
If you answered “Yes” to the question on line 5 or on line 6, go to Part 3.
If you answered “No” to the questions on line 5 and on line 6, STOP!
YOU ARE NOT ELIGIBLE TO CLAIM THIS CREDIT.

Current Taxable Year’s Credit Calculation

Credit for employees in first year or partial year of employment in a qualified employment
position..................................................................................................................................
Credit for employees in the second year of continuous employment in a qualified
employment position.............................................................................................................
Credit for employees in the third year of continuous employment in a qualified
employment position.............................................................................................................

11
12
13

9
10

 Yes  No
 Yes  No

(a)
Number of
Employees

(b)
Available Credit:
Multiply column (a) by $3,000.

Enter the credit passed through from partnerships on Form(s) 345-P, line 3c .....................

Enter the credit passed through from S corporations on Form(s) 345-S, line 3c..................
Add lines 8 through 12 in column (b). Enter the total. This is your total current year’s
credit for New Employment...................................................................................................

Continued on page 2 

ADOR 11149 (19)

Name (as shown on page 1)

Part 4

TIN

Partnerships

A partnership claiming this credit must pass the credit through to its partners.
• Complete Form 345-P for each partner.
• Provide a completed copy of Form 345-P to each partner.
• Include a copy of each completed Form 345-P with your tax return.
• Keep a copy of each completed Form 345-P for your records.
• Do not complete Parts 5 through 7 of this form.

Part 5
14

S Corporation Credit Election and Shareholder’s Share of Credit

The S corporation has made an irrevocable election for the taxable year ending
(check only one box):

MM D D Y Y Y Y

14a  Claim the credit for new employment as shown on Part 3, line 13 (for the taxable year indicated above);

14b  Pass the credit for new employment as shown on Part 3, line 13 (for the taxable year indicated above) through to its shareholders.

Signature

Title Date

If passing the credit through to the shareholders, complete Form 345-S for each shareholder.
• Provide a copy of completed Form 345-S to each shareholder.
• Include a copy of each completed Form 345-S with your tax return.
• Keep a copy of each completed Form 345-S for your records.

Part 6

Available Credit Carryover
(a)

Taxable year................

Original credit amount.

Amount
previously used...........
Tentative carryover:
Subtract line 17
from line 16..................

(b)

(c)

(d)

(e)

Amount disallowed:
See instructions...........

Available carryover:
Subtract line 19
from line 18..................

Total Available Carryover.................................................................................................................................................

Continued on page 3 
ADOR 11149 (19)

AZ Form 345 (2019)

Page 2 of 3

Name (as shown on page 1)

Part 7

TIN

Total Available Credit

22 Current year’s credit for new employment:
•
Individuals, C Corporations, S corporations claiming this credit at the corporate level, or exempt organizations with
UBTI: Enter the amount from Part 3, line 13, column (b).
•
Individuals: Also, enter this amount on Form 301, Part 1, line 23, column (a).
•
C Corporations, S corporations claiming this credit at the corporate level, and exempt organizations with UBTI:
Also, enter this amount on Form 300, Part 1, line 16, column (a)................................................................................ 22
23 Available credit carryover from Part 6, line 21, column (e):
•
Individuals: Also, enter this amount on Form 301, Part 1, line 23, column (b).
•
C Corporations, S corporations claiming this credit at the corporate level, and exempt organizations with UBTI:
Also, enter this amount on Form 300, Part 1, line 16, column (b)................................................................................ 23
24 Total available credit: Add lines 22 and 23 and enter the total.
•
Individuals: Also, enter total here and on Form 301, Part 1, line 23, column (c).
•
C Corporations, S corporations claiming this credit at the corporate level, and exempt organizations with UBTI:
Also, enter total here and on Form 300, Part 1, line 16, column (c)............................................................................. 24

ADOR 11149 (19)

AZ Form 345 (2019)

Print 345

Page 3 of 3

Name (as shown on Form 345)

TIN

Page

Form 345-1

Employees at Business Location

2019

Complete a Form 345-1 for each employee, whether or not the employee is in a qualified employment position. See instructions
1

Employee name:

Employee’s Social Security Number (SSN)...............................................................................................................

3a What credit year are you claiming for this employee?

 First

 Second

 Third

 Not qualified for credit, or fourth year or more

3b Is this employee a replacement of another employee who left a qualified employment position in the second or
third year? See instructions.........................................................................................................................................

 Yes

 No

3c If the answer to line 3b is “Yes”, did the total time the position was vacant from the date the employment position
was originally filled to the end of the current tax year total 90 days or less? See instructions........................................

 Yes

 No

3d If the answer to line 3c is “Yes”, enter the name of the replaced employee, his or her Social Security Number, and termination date:
Employee Name
Social Security Number
Termination Date

MM D D Y Y Y Y
4a Current date of employment......................................................................................................................................

MM D D Y Y Y Y

4b Termination date, if the employee was terminated before the end of the taxable year.............................................

MM D D Y Y Y Y

4c If the employee was terminated, is he or she replaced by a new hire in the same qualified employment position?.
If the answer is “Yes”, enter the name of the new hire, his or her Social Security Number, and hire date:
Employee Name
Social Security Number

 Yes

 No

Hire Date

MM D D Y Y Y Y
5a If employee was previously employed by the business, list the previous date of employment. See instructions........

MM D D Y Y Y Y

5b If employee was previously employed by the business, list the date of separation..................................................

MM D D Y Y Y Y

5c Did the employee relocate to this state from out of state?........................................................................................

 Yes

5d If the employee relocated from out of state, enter date of relocation........................................................................

MM D D Y Y Y Y

6a Is the employee in a permanent position that consists of at least 1750 hours per year?..........................................

 Yes

 No

 Yes

 No

6b If the answer to line 6a is “Yes”, list the number of hours the employee actually worked during the taxable year........
7

Are the employee’s job duties performed primarily at the location(s) of the business?.............................................

8a Employee’s annual compensation for the taxable year.............................................................................................

. 00

8b Employee’s HOURLY wage in dollars and cents.......................................................................................................

9a Total cost of health insurance provided by employer for employee. See instructions.................................................

. 00

9b Total cost of health insurance for employee paid by employer. See instructions........................................................

. 00

Is this employee in a new qualified employment position?........................................................................................

 Yes

 No

11a Has this employee been substituted for another employee in a qualified employment position?.............................

 Yes

 No

11b If answer on line 11a is “Yes”, list the date of substitution M M D D Y Y Y Y and indicate whether the individual is a second year
employee or a third year employee. See instructions for the qualification before answering this question.
Check only one box:  Second year employee
 Third year employee
ADOR 11149 (19)

Print 345-1

Name (as shown on Form 345)

TIN

Page

Form 345-2

Employees in Qualified Employment Positions
(a)
Employee’s Name

(b)
Social Security
Number

(c)
Type of Employee
Check the appropriate box.
This employee is a:
(c1)
(c2)
(c3)
1st Year
2nd Year
3rd Year
Employee Employee Employee

2019
(d)
Limitation on Total
Number of Credits
See instructions
before checking
this box.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24 TOTAL: Add lines 1 through 23 including only lines with check marks. Enter the total
for each column............................................................................................................... 24

If you are claiming more than 23 employees in qualified employment positions, complete additional schedules.
ADOR 11149 (19)

Print 345-2

Clear 345-2

Extracted from PDF file 2019-arizona-form-345.pdf, last modified October 2009

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More about the Arizona Form 345 Corporate Income Tax Tax Credit

We last updated the Credit for New Employment in May 2021, and the latest form we have available is for tax year 2019. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the Arizona Department of Revenue. You can print other Arizona tax forms here.

Other Arizona Corporate Income Tax Forms:

TaxFormFinder has an additional 95 Arizona income tax forms that you may need, plus all federal income tax forms.

Form Code	Form Name
Schedule ACA	Schedule ACA - Air Carrier Apportionment
Form 120S	Arizona S Corporation Income Tax Return Tax Return
Form 165	Arizona Partnership Income Tax Return Tax Return
Form 141AZ	Arizona Fiduciary Income Tax Return Tax Return
165 Schedule K-1	Schedule K-1 Resident Partner's Share of Adjustment to Partnership Income

Download all AZ tax forms 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 345 from the Department of Revenue in May 2021.

Show Sources >

Form 345 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 345

We have a total of six past-year versions of Form 345 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:

2019 Form 345