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Arizona Form
2022 Agricultural Pollution Control Equipment Credit 325
For information or help, call one of the numbers listed: Amounts that qualify for the credit must be includible in
Phoenix (602) 255-3381 the individual taxpayer's adjusted basis for the property. The
adjusted basis of any property for which the taxpayer has
From area codes 520 and 928, toll-free (800) 352-4090
claimed a credit must be reduced by the amount of credit
Tax forms, instructions, and other tax information claimed for that property.
If you need tax forms, instructions, and other tax information,
If the allowable tax credit exceeds the taxes otherwise due or,
go to the department’s website atwww.azdor.gov.
if there are no taxes due, the amount of the credit not used to
Income Tax Procedures and Rulings offset taxes may be carried forward for not more than five
These instructions may refer to the department’s income tax taxable years as a credit against subsequent years' income tax
procedures and rulings for more information. To view or liabilities.
print these, go to our website and select Reports & Legal
Research from the main menu, then click on Legal Research NOTE – To claim this credit:
and select a Document Type and a Category from the drop • Individual taxpayers that did not make the Small
Business Income election: Complete this credit form and
down menus.
Arizona Form 301, Nonrefundable Individual Tax
Publications Credits and Recapture. Include both completed forms
To view or print the department’s publications, go to our with your Individual Income Tax Return, (Form 140,
website, select Reports & Legal Research from the main 140PY, 140NR, or 140X).
menu, and click on Publications in the left hand column. • Individual taxpayers that made the Small Business
Income election: Complete this credit form and Arizona
General Instructions Form 301SBI, Nonrefundable Individual Tax Credits and
Arizona Revised Statutes § 43-1081.01 provide Recapture for Form 140-SBI, 140PY-SBI, 140NR-SBI,
nonrefundable individual income tax credits for expenses that and 140X-SBI. Include both completed forms with your
a taxpayer incurred during the taxable year to purchase SBI Tax Return (Form 140-SBI, 140PY-SBI, 140NR-SBI,
or 140X-SBI).
agricultural pollution control equipment.
• A partnership may pass this credit through to its
NOTE: Taxable year 2019 was the last year a corporate individual partners: Complete this credit form and Form
taxpayer could claim this credit. S Corporations may not 325-P for each individual partner of the partnership.
claim this credit at the corporate level or pass it through to Provide each individual partner a copy of his or her
its shareholders. A partnership may not pass this credit completed Form 325-P. Include Form 325 and one copy
through to its corporate partners; it may, however, pass this of each completed Form 325-P with your tax return.
credit through to its individual partners.
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The amount of the credit is equal to 25% of the cost of the Specific Instructions
property. The maximum credit that a taxpayer may claim in a Complete the name and taxpayer identification number (TIN)
taxable year is $25,000. section at the top of the form. Indicate the period covered by the
Individual partners in a partnership may each claim only the taxable year. Include the completed form with the tax return.
pro rata share of the credit allowed based on their ownership All returns, statements, and other documents filed with the
interest. The total of the credits allowed all such owners may department require a TIN. The TIN for a partnership is its
not exceed the amount that would have been allowed for a employer identification number (EIN). The TIN for an
sole owner of the business. individual is the taxpayer's Social Security Number (SSN) or
To Qualify for the Credit: an Internal Revenue Service individual taxpayer
• The individual taxpayer must be involved in the identification number. Taxpayers that fail to include their
commercial production of livestock, livestock products TIN may be subject to a penalty.
or agricultural, horticultural, viticultural or floricultural Part 1 - Schedule of Equipment and Current
crops or products; AND Taxable Year's Credit Calculation
• The individual taxpayer must purchase tangible personal
property that is primarily used in the taxpayer’s trade or Lines 1 through 10
business in Arizona to control or prevent pollution. Column (a): Enter the date the qualifying agricultural
o Property eligible for the tax credit includes only that property was placed in service or the date it is expected to be
portion of the property directly used, constructed, or placed in service in Arizona.
installed in Arizona to prevent, monitor, or reduce Column (b): Enter a brief description of the Arizona
air, water, or land pollution. property used in the taxpayer's business to control or prevent
o Qualifying property includes a portion of a structure, pollution.
building, installation, excavation, machine, Column (c): Enter the total cost incurred during the taxable year
equipment, or device, and any attachment to, or for qualifying agricultural property used to reduce pollution.
addition to, or reconstruction, replacement, or For additional information, see the section “To Qualify for
improvement of that property. the Credit” in column 1 of this page.
