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Arizona Form
2021 Agricultural Pollution Control Equipment Credit 325
For information or help, call one of the numbers listed: addition to, or reconstruction, replacement, or
Phoenix (602) 255-3381 improvement of that property.
From area codes 520 and 928, toll-free (800) 352-4090 Amounts that qualify for the credit must be includible in
Tax forms, instructions, and other tax information the individual taxpayer's adjusted basis for the property. The
If you need tax forms, instructions, and other tax information, adjusted basis of any property for which the taxpayer has
go to the department’s website atwww.azdor.gov. claimed a credit must be reduced by the amount of credit
Income Tax Procedures and Rulings claimed for that property.
These instructions may refer to the department’s income tax If the allowable tax credit exceeds the taxes otherwise due or,
procedures and rulings for more information. To view or if there are no taxes due, the amount of the credit not used to
print these, go to our website and select Reports & Legal offset taxes may be carried forward for not more than five
Research from the main menu, then click on Legal Research taxable years as a credit against subsequent years' income tax
and select a Document Type and a Category from the drop liabilities.
down menus. NOTE – To claim this credit:
Publications • Individual taxpayers that did not make the Small
To view or print the department’s publications, go to our Business Income election: Complete this credit form and
website, select Reports & Legal Research from the main Arizona Form 301, Nonrefundable Individual Tax
menu, and click on Publications in the left hand column. Credits and Recapture. Include both completed forms
with your Individual Income Tax Return, (Form 140,
General Instructions 140PY, 140NR, or 140X).
Arizona Revised Statutes § 43-1081.01 provide • Individual taxpayers that made the Small Business
nonrefundable individual income tax credits for expenses that Income election: Complete this credit form and Arizona
a taxpayer incurred during the taxable year to purchase Form 301SBI, Nonrefundable Individual Tax Credits and
Recapture for Form 140-SBI, 140PY-SBI, 140NR-SBI,
agricultural pollution control equipment. and 140X-SBI. Include both completed forms with your
NOTE: Taxable year 2019 was the last year a corporate SBI Tax Return (Form 140-SBI, 140PY-SBI, 140NR-SBI,
taxpayer could claim this credit. S Corporations may not or 140X-SBI).
claim this credit at the corporate level or pass it through to • A partnership may pass this credit through to its
its shareholders. A partnership may not pass this credit individual partners: Complete this credit form and Form
through to its corporate partners; it may, however, pass this 325-P for each individual partner of the partnership.
credit through to its individual partners. Provide each individual partner a copy of his or her
\
The amount of the credit is equal to 25% of the cost of the completed Form 325-P. Include Form 325 and one copy
property. The maximum credit that a taxpayer may claim in a of each completed Form 325-P with your tax return.
taxable year is $25,000.
The Agricultural Pollution Control Equipment Credit claimed Specific Instructions
on Form 325 is in lieu of the Pollution Control Credit claimed Complete the name and taxpayer identification number (TIN)
on Form 315 with respect to the same equipment or expense. section at the top of the form. Indicate the period covered by
Individual partners in a partnership may each claim only the the taxable year. Include the completed form with the tax
pro rata share of the credit allowed based on their ownership return.
interest. The total of the credits allowed all such owners may All returns, statements, and other documents filed with the
not exceed the amount that would have been allowed for a department require a TIN. The TIN for a partnership is its
sole owner of the business. employer identification number (EIN). The TIN for an
To Qualify for the Credit: individual is the taxpayer's Social Security Number (SSN) or
• The individual taxpayer must be involved in the an Internal Revenue Service individual taxpayer
commercial production of livestock, livestock products identification number. Taxpayers that fail to include their
or agricultural, horticultural, viticultural or floricultural TIN may be subject to a penalty.
crops or products; AND Part 1 - Schedule of Equipment and Current
• The individual taxpayer must purchase tangible personal
Taxable Year's Credit Calculation
property that is primarily used in the taxpayer’s trade or
business in Arizona to control or prevent pollution. Lines 1 through 10
o Property eligible for the tax credit includes only that Column (a): Enter the date the qualifying agricultural
portion of the property directly used, constructed, or property was placed in service or the date it is expected to be
installed in Arizona to prevent, monitor, or reduce placed in service in Arizona.
air, water, or land pollution. Column (b): Enter a brief description of the Arizona
o Qualifying property includes a portion of a structure, property used in the taxpayer's business to control or prevent
building, installation, excavation, machine, pollution.
equipment, or device, and any attachment to, or
