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Arizona Form
2021 Renewable Energy Production Tax Credit 343

For information or help, call one of the numbers listed: Co-owners of a business, including partners in a partnership
Phoenix (602) 255-3381 and shareholders of an S Corporation, may each claim only
From area codes 520 and 928, toll-free (800) 352-4090 the pro rata share of the credit allowed based on the
Tax forms, instructions, and other tax information ownership interest. The total of the credits allowed all such
If you need tax forms, instructions, and other tax information, owners may not exceed the amount that would have been
allowed for a sole owner of the business.
go to the department’s website atwww.azdor.gov.
Income Tax Procedures and Rulings The credit is available to an exempt organization that is
These instructions may refer to the department’s income tax subject to corporate income tax on unrelated business
procedures and rulings for more information. To view or taxable income (UBTI). The credit must result from the
print these, go to our website and select Reports & Legal activities that generate UBTI.
Research from the main menu, then click on Legal Research The unused portion of this tax credit may be carried forward
and select a Document Type and a Category from the drop for five succeeding taxable years.
down menus. For more information regarding this credit, review the
Publications program guidelines developed by Revenue, available at
To view or print the department’s publications, go to our www.azdor.gov on the Tax Credits page.
website, select Reports & Legal Research from the main
menu, and click on Publications in the left hand column. Specific Instructions

Complete the name and taxpayer identification number
(TIN) section at the top of the form. Indicate the period
General Instructions covered by the taxable year. Include the completed form
This credit provides nonrefundable individual and corporate with the tax return.
income tax credits for production of electricity by a qualified
energy generator that produces electricity using a qualified All returns, statements, and other documents filed with the
department require a TIN. The TIN for a corporation, an
energy resource. exempt organization with UBTI, an S Corporation, or a
The taxpayer must hold title to a qualified energy generator partnership is the taxpayer's employer identification number
that begins producing electricity from and after (EIN). The TIN for an individual is the taxpayer's Social
December 31, 2010, and before January 1, 2021. The credit Security Number (SSN) or an Internal Revenue Service
is effective for taxable years beginning from and after Individual Taxpayer Identification Number (ITIN). A
December 31, 2010. taxpayer that fails to include its TIN may be subject to a
“Qualified energy generator” means a facility that has at penalty.
least five megawatts generating capacity, that is located on
NOTE – To claim this credit:
land in Arizona owned or leased by the taxpayer, that
•
produces electricity using a qualified energy resource and Individual taxpayers that did not make the Small
that sells electricity to an unrelated entity, unless the Business Income election, complete this credit form
and Arizona Form 301, Nonrefundable Individual Tax
electricity is sold to a public service corporation. Credits and Recapture. Include both completed forms
“Qualified energy resource” means a resource that generates with your Individual Income Tax Return, (Form 140,
electricity through the use of only: solar light, solar heat, 140PY, 140NR, or 140X).
wind or biomass. • Individual taxpayers that made the Small Business
The Department of Revenue (Revenue) will certify credits Income election, complete this credit form and Arizona
on a first-come, first-served basis. The entity that holds title Form 301SBI, Nonrefundable Individual Tax Credits
to the qualified energy generator must apply between and Recapture for Form 140-SBI, 140PY-SBI, 1140NR-
January 2 and January 31 of the year following the calendar SBI, and 140S-SBI. Include both completed forms with
year of production. Fiscal year taxpayers will claim the your SBI Tax Return (Form 140-SBI, 140PY-SBI,
credit on the return for the taxable year in which the calendar 140NR-SBI, or 140X-SBI).
year ends. • C Corporations, S Corporations claiming this credit at
The amount of total credits Revenue may allow cannot the corporate level, and exempt organizations with
exceed $20 million in any calendar year. The amount of UBTI, complete this credit form and Arizona Form 300,
credit per facility is limited to $2 million per calendar year, Nonrefundable Corporate Tax Credits and Recapture.
for up to 10 consecutive calendar years. The amount of the Include both completed forms with your tax return.
credit is based on electricity produced, the qualified energy • S Corporations electing to pass this credit through to
resource used, the year of production, and Revenue its shareholders, complete this credit form. Also
certification. complete Form 343-S for each shareholder of the S
Revenue will issue a Certificate of Renewable Energy Corporation. Provide each shareholder a copy of his or
Production Tax Credit (Certificate) to the applicant if it is her completed Form 343-S. Include Form 343 and one
certified to claim the tax credit. Each taxpayer must include copy of each completed Form 343-S with your tax
a copy of the Certificate with the return. return.

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Arizona Form 343

• Partnerships, complete this credit form. Also, complete NOTE: Trusts and estates which are partners in a
Form 343-P for each partner of the partnership. partnership are not eligible to claim these credits. However,
Provide each partner a copy of his or her completed the share of a partnership owned by a grantor trust that is
Form 343-P. Include Form 343 and one copy of each disregarded for federal income tax purposes is treated as
completed Form 343-P with your tax return. owned by the grantor. The grantor may claim his or her
share of these credits.
Part 1 - Qualification for and Current
Taxable Year’s Credit Part 3 - S Corporation Credit Election and
Line 1 Shareholder's Share of Credit
If the taxpayer received a Certificate from Revenue, check Lines 7, 7a, & 7b - S Corporation Credit Election
the “Yes” box. Otherwise, check the “No” box and skip line The S Corporation must complete line 7 and line 7a or line
2. 7b. The S Corporation must make an irrevocable election to
Line 2 either claim the current taxable year credit at the corporate
If you checked the “Yes” box on line 1, enter the amount of level, or pass the credit through to its shareholders. The S
credit for calendar year 2021 on your Certificate received Corporation election is made by:
from Revenue. Fiscal year taxpayers will claim the credit on • Checking the box on line 7a electing to claim the
the return for the taxable year in which the calendar year current taxable year credit at the corporate level; or,
ends. Be sure to include a copy of your Certificate. • Checking the box on line 7b to pass the current taxable
Line 3 year credit through to its shareholders.
If an entity from which you are claiming a pass through The election statement must be signed by an officer of the S
renewable energy production tax credit received a Certificate Corporation who is also a signatory to Arizona Form 120S.
from Revenue, check the “Yes” box. Otherwise, check the If the S Corporation elects to claim the credit itself, it must
“No” box, and skip line 4 and line 5. complete Part 4 and Part 5 as necessary.
If you checked the “No” box for both line 1 and line 3, do
If the S Corporation elects to pass this credit through to its
not file Form 343, unless you have carryovers from prior
shareholders, proceed to the instructions for completing
years. Form 343-S on page 4.
Line 4 If passing this credit through to the shareholders:
Enter the amount of this credit passed through from • Complete Form 343-S for each shareholder.
partnerships on Form(s) 343-P, line 3(c). • Provide a copy of completed Form 343-S to each
Line 5 shareholder.
Enter the amount of this credit passed through from S • Provide a copy of the Certificate of Renewable Energy
Corporations on Form(s) 343-S, line 3(c). Production Tax Credit received from Commerce to each
Line 6 partner.
Add lines 2, 4, and 5. Enter the total. This is the current • Include a copy of each completed Form 343-S with your
taxable year’s Renewable Energy Production Tax Credit. tax return.
• Keep a copy of each completed Form 343-S for your
Part 2 - Partnerships
records.
A partnership claiming this credit must pass it through to its
partners. Proceed to the instructions for completing Form Each S Corporation shareholder is entitled to only a pro rata
share of pass through credit based on ownership interest in
343-P on page 4.
the S Corporation. The total of the credit allowed to all
• Complete Form 343-P for each partner. shareholders may not exceed the amount that would have
• Provide a completed copy of Form 343-P to each been allowed for a sole owner.
partner.
• Provide a copy of the Certificate of Renewable Energy NOTE: Trusts and estates which are shareholders of an S
Production Tax Credit received from Commerce to each Corporation are not eligible to claim these credits.
However, the share of an S Corporation owned by a grantor
partner.
trust that is disregarded for federal income tax purposes is
• Include a copy of each completed Form 343-P with your
treated as owned by the grantor. The grantor may claim his
tax return.
or her share of these credits.
• Keep a copy of each completed Form 343-P for your
records. Part 4 - Available Credit Carryover
• Do not complete the remainder of this form. S Corporations , if this credit was claimed at the corporate
Each partner is entitled to only a pro rata share of each level in a prior taxable year and there is a carryover amount
credit based on the partner’s ownership interest in the available, complete Part 4.
partnership. The total of each credit allowed to all partners
may not exceed the amount that would have been allowed
for a sole owner.

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Arizona Form 343

Lines 8 through 12 Line 15
Use Part 4 to figure your total available credit carryover Enter the available credit carryover from prior years.
from prior taxable years. Complete lines 8 through 12, Individuals, C Corporations, S Corporations that elected to
columns (a) through (d), if you claimed the credit on a prior claim the credit at the corporate level, and exempt
year’s return and the credit exceeded your tax liability. organizations with UBTI : Enter the amount from Part 4, line
Enter the taxable year(s) from which you are carrying over 13, column (d).
the credit in column (a) on lines 8 through 12. In column (b), Individuals that did not make the Small Business Income
enter the credit originally computed for that taxable year. In election: Enter the total. Also, enter this amount on Form
column (c), enter the amount of the credit from that taxable 301, Part 1, line 20, column (b).
year which you have already used. Subtract the amount in Individuals that made the Small Business Income election:
column (c) from the amount in column (b) and enter the Enter the total. Also, enter this amount on Form 301-SBI,
difference in column (d). Part 1, line 15, column (b).
Line 13 C Corporations, S Corporations that elected to claim the
Add the amounts entered on lines 8 through 12 in column credit at the corporate level, and exempt organizations with
(d). Enter the total. This is the total credit carryover UBTI: Enter the total. Also, enter this amount on Form 300,
available for the current taxable year. Part 1, line 13, column (b).
Part 5 - Total Available Credit Line 16
Line 14 Add line 14 and line 15. Enter the total. This is the total
available renewable energy production tax credit that may be
Enter the current year’s credit. applied to the current year's tax liability.
Individuals, C Corporations, S Corporations that elected to
Individuals that did not make the Small Business Income
claim the credit at the corporate level, and exempt
election: Enter the total. Also, enter this amount on Form
organizations with UBTI : Enter the amount from Part 1, line
301, Part 1, line 20, column (c).
6.
Individuals that made the Small Business Income election:
Partnerships: Enter “0”.
Enter the total. Also, enter this amount on Form 301-SBI,
S Corporations that passed the current year credit through
Part 1, line 15, column (c).
to shareholders: Enter “0”.
C Corporations, S Corporations that elected to claim the
Individuals that did not make the Small Business Income
credit at the corporate level, and exempt organizations with
election: Enter the total. Also, enter this amount on Form
UBTI: Enter the total. Also, enter this amount on Form 300,
301, Part 1, line 20, column (a). Part 1, line 13, column (c).
Individuals that made the Small Business Income election:

Enter the total. Also, enter this amount on Form 301-SBI,
Part 1, line 15, column (a).
C Corporations, S Corporations that elected to claim the
credit at the corporate level, and exempt organizations with
UBTI: Enter the total. Also, enter this amount on Form 300,
Part 1, line 13, column (a).

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Arizona Form 343

Form 343-P, Form 343-S, S Corporation
Distribution to Partners of a Distribution to Shareholders of an S
Partnership Corporation
Enter the taxable year for which this credit is being passed Enter the taxable year for which this credit is being passed
through to your partners. through to your shareholders.
Complete Form 343-P for each partner of the partnership, Complete Form 343-S for each shareholder of the S
except for trust or estate partners. However, a partnership Corporation, except for trust or estate shareholders.
ownership share that is owned by a grantor trust that is However, an S Corporation ownership share that is owned
disregarded for federal income tax purposes is treated as by a grantor trust that is disregarded for federal income tax
owned by the grantor. The grantor may claim his or her purposes is treated as owned by the grantor. The grantor
share of the credit. may claim his or her share of the credit.
The partnership must furnish each partner with their The S Corporation must furnish each shareholder with a
completed copy of Form 343-P, including additional completed copy of Form 343-S, including additional
schedules as needed. schedules as needed.

NOTE: Form 343-P is used to distribute the partnership’s NOTE: Form 343-S is used to distribute the S
share of this credit to its partners. Corporation’s share of this credit to its shareholders.

Distribution of the Credit Distribution of the Credit
To distribute the credit to the partners of the partnership To distribute the credit to the S Corporation
(complete lines 1 through 3): shareholders (complete lines 1 through 3):
Line 1 Line 1
Enter the partnership’s name and EIN in the spaces Enter the S Corporation’s name and EIN in the spaces
provided. provided.
Line 2 Line 2
Enter the partner’s name and TIN in the spaces provided. Enter the shareholder’s name and TIN in the spaces
provided.
Line 3a
Line 3a
Enter the amount of this credit from Form 343, Part 1, line 6.
Enter the amount of this credit from Form 343, Part 3, line 6.
Line 3b
Line 3b
Enter the partner’s ownership percentage.
Enter the shareholder’s ownership percentage.
Line 3c
Multiply line 3a by line 3b and enter the result. Line 3c
Multiply line 3a by line 3b and enter the result.
This is the partner’s portion of this credit.
This is the shareholder’s portion of this credit.

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