2022 Credit for Business Contributions by an S Corporation            
to School Tuition Organizations for Displaced Students                                                    Arizona Form 
or Students with Disabilities - Individual                                                                      341-I 
                                                                 claiming  the  maximum amount allowed under the two 
For information or help, call one of the numbers listed:         individual private  school tuition credits (Arizona  Forms  323 
Phoenix                                   (602) 255-3381         and 348).   The corporate STO credit passed through from the S 
From area codes 520 and 928, toll-free    (800) 352-4090         Corporation  is a  different credit that  is  not  subject to the 
Tax forms, instructions, and other tax information               limitations  under the two individual private school tuition 
                                                                 credits. 
If you need tax forms, instructions, and other tax information, 
go to the department’s website at www.azdor.gov.                 Individual Shareholders of an S Corporation with a Fiscal 
                                                                 Year-End -  If you file your tax return on a calendar year basis, 
Income Tax Procedures and Rulings                                but the corporation files a  return for  a fiscal year, claim the 
These instructions  may refer to the department’s income tax     credit on your tax return for the year in which the corporation's 
procedures and rulings for more information.  To view or print   fiscal year ends. For example, if the corporation's tax year ends 
these, go to our  website  select Reports, Statistics and Legal  in February 2023, claim the credit on your 2023 tax return. 
Research from the  main  menu, then click on Legal Research      Co-owners of the S Corporation may each claim the pro rata 
and select a Document Type and    Category from the drop down    share of the credit allowed based on the taxpayers ownership 
menus.Publications                                               interest.  The total of  the credits allowed all owners of  the 
To view or print the department’s publications, go to  our       corporation may not exceed the amount that would have been 
website select Reports, Statistics and Legal Research from the   allowed a sole owner of the business. 
main  menu then click on Publications  in the left-hand  side    If the allowable tax credit exceeds the taxes otherwise due, or if 
column.                                                          there are no taxes due, you may carry the unused credit forward 
                                                                 for a period not to exceed the next  five  consecutive  taxable 
General Instructions                                             years’ income tax liability. 
NOTE:                                                            NOTE:    The maximum amount of credit established for the 
• Individual taxpayers that  did not  make the Small             current taxable year does    not  include any unused valid 
  Business Income election,      complete this credit form and   carryover amount(s) from prior taxable years.  Because this is 
  Arizona Form 301, Nonrefundable Individual Tax Credits         a nonrefundable tax credit, the total amount of available credit 
  and Recapture.  Include both completed forms  with your        [current  year  plus  any  valid  carryover  amount(s)]  that  a 
  Individual Income Tax Return, (Form 140, 140PY, 140NR          taxpayer may use for the taxable year cannot be greater than 
  or 140X).                                                      the tax liability shown. 
• Individual taxpayers that  made the Small Business             You cannot claim both a tax credit and an  Arizona  itemized 
  Income election, complete this credit form and Arizona         deduction for the amount of contributions made to a STO for 
  Form 301-SBI, Nonrefundable Individual Tax Credits and         which you are claiming a credit.  
  Recapture for Form 140-SBI, 140PY-SBI, 140NR-SBI and 
  140X-SBI.    Include both completed forms with your SBI        NOTE:  This tax credit is not allowed if the S Corporation or a 
  Tax Return (Form 140-SBI, 140PY-SBI, 140NR-SBI  or             shareholder designates the  contribution to the  STO  for the 
  140X-SBI).                                                     direct benefit of any dependent of a shareholder of the 
                                                                 corporation claiming  a credit under this section or if the 
Arizona  law allows an individual  shareholder  to claim a 
                                                                 corporation or a shareholder designates a student beneficiary 
nonrefundable tax credit for the pro rata share of contributions 
                                                                 as a condition of the contribution to the STO.   
made by  an  S Corporation  to  a school tuition organization 
(STO).                                                           The  tax  credit  is  not  allowed  if  the  S  Corporation  or  a 
                                                                 shareholder, with the intent to benefit a shareholder's 
The  S  Corporation  must  make  an  irrevocable  election  on 
                                                                 dependent, agrees with one or more other taxpayers to 
Arizona Form 341, Credit for Contributions to School Tuition 
                                                                 designate reciprocal contributions to school tuition 
Organization  for Displaced Students or Students with 
                                                                 organizations for the direct benefit of the other taxpayer's 
Disabilities,  to pass-through the credit to its  individual 
                                                                 dependent. 
shareholder(s).  The S Corporation making the election should 
give you  Arizona Form 341-S,          Credit  for  Corporate    For Arizona purposes, “dependent” has the same meaning 
Contributions  to  School  Tuition  Organizations  for Displaced provided in section § 152 of the Internal Revenue Code.  For 
Students or Students  with Disabilities  -  Distribution to      the purpose of this credit, it does not matter if the shareholder 
Shareholders of an S Corporation, showing your pro rata share    qualifies to take the dependent deduction.  
of the available credit for the taxable year.  The amount of the 
allowable credit you may claim is reported on Form 341-S. 
An individual  shareholder  may claim a corporate  STO  credit 
passed through from an S Corporation even if  the individual is 

                                                                                                                   Arizona Form 341-I 
                                                                                                                                
                                                                        • In column (b) enter the credit originally computed for that 
Line-by-Line Instructions 
                                                                          taxable year listed in column (a).  
Enter your name and taxpayer identification number (TIN) as             • In column (c) enter the amount of the credit  from that 
shown on  Arizona Forms  140, 140NR, 140PY or 140X.                       taxable year which you have already used.  
Indicate the period covered by the  taxable  year.    Include  the      • Subtract the amount in column (c) from column (b) and 
completed form with the income tax return.                                enter the difference in column (d).  
All returns, statements, and  other  documents filed with the           • Add lines 13 through 17, column (d).   
department require a TIN. The TIN for an individual is  the             Enter the total on line 18, column (d). 
taxpayer's Social Security Number (SSN) or for a business, the 
employer identification  number (EIN).  Taxpayers that  fail to        Part 4 - Total Available Credit 
include their identification number may be subject to a penalty.       Line 19  
NOTE:    Complete Parts 1, 2 and 4 if you are claiming a new           Enter the amount from Part 2, line 12.   
credit for the current tax year.                                       Individuals that did not  make the Small Business  Income 
                                                                       election:  Also enter this amount on Form 301, Part 1, line 17, 
If you are only claiming a carryover amount from a previous 
                                                                       column (a). 
credit, complete Parts 3 and 4. 
                                                                       Individuals that made the Small Business Income election:  
Part 1 - School Tuition Organization Information                       Also enter this amount on  Form 301-SBI, Part 1, line  12, 
                                                                       column (a). 
NOTE:    If you are claiming a pro rata credit from more than 
one  S Corporation, check the box in Part 1.  Complete  and            Line 20  
include a separate Part 1 for each S Corporation.                      Enter the amount from Part 3, line 18, column (d).   
                                                                       Individuals that did not  make the Small Business  Income 
In the space provided, enter the S Corporation’s name and EIN 
                                                                       election:  Also enter this amount on Form 301, Part 1, line 17, 
for which  you are  claiming a   pro rata  share of  credit for 
                                                                       column (b). 
contributions made during the taxable year. 
                                                                       Individuals that made the Small Business Income election:  
Lines 1 through 10  
                                                                       Also enter this amount on  Form 301-SBI, Part 1, line  12, 
On lines 1 through  10, enter  the name and credit approval            column (b). 
number for all STOs the S Corporation made a contribution to 
for which you are claiming a     pro rata share of credit for the      Line 21 - Total Available Credit 
current taxable year.                                                  Add line 19 and line 20. Enter the total.   
This information is shown on  page 1 of the  S Corporation’s           Individuals that did not  make the Small Business  Income 
Arizona Form 341-S.                                                    election:  Also enter this amount on Form 301, Part 1, line 17, 
                                                                       column (c). 
If  you  need additional space  to  list all  STOs  for which 
contributions were made by a specific S Corporation, include a         Individuals that made the Small Business Income election:  
separate  schedule  showing  the  names  and  credit  approval         Also enter this amount on  Form 301-SBI, Part 1, line  12, 
number for each and include with the form.                             column (c). 
                                                                        
Line 11 - Taxpayer’s Pro Rata Share of Contributions 
Made by the S Corporation named in Part 1 
Enter the amount from the S Corporation’s Arizona Form 341-S, 
line 13. 
Part 2 - Current Year’s Credit 
Line 12  
Enter the amount of  your pro rata share of the contributions 
made to the STOs listed in Part 1. 
If you are claiming a   pro rata share of credit from more than 
one  S  Corporation, add all  amounts on line 11 from each 
separate Part 1, and enter the total. 
Part 3 - Available Credit Carryover 
Lines 13 through 18  
Complete Part 3, lines 13 through 18 to figure your available 
credit carryover from taxable years 2017 through 2021 if you 
claimed this credit and the credit was more than your tax.  

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