Arizona Form         Additional Credit for Increased Research Activities 
               346                                            for Basic Research Payments                                                                                  2022
Include with your return.

 For the calendar year 2022 or fiscal year beginning          M M D D             2 0 2 2  and ending                                                    M M D D Y Y Y Y              .

 All businesses must be certified by the Arizona Commerce Authority and the Department of Revenue before 
 applying for this credit.

 Name as shown on Form 140, 140PY, 140NR, 140X, 140-SBI, 140PY-SBI, 140NR-SBI, 140X-SBI,                                                                Social Security or 
 99T, 120, 120A, 120S, 120X, or 165                                                                                                                     Employer Identification Number

 Part 1 Qualification for Additional Credit
 1  Did you receive a Letter of Approval from the Arizona Department of Revenue (Revenue) 
    for this credit? ............................................................................................................................  Yes  No
    a  If “Yes”, include a copy of the letter.
    b  If “No”, go to line 3.
 2  Enter the credit amount from the Letter of Approval from Revenue ..........................................................................              2                        00
 3  Are you claiming this credit as a pass through from a partnership or S Corporation and you 
    received Form(s) 346-P from the partnership(s) and/or Form(s) 346-S from the 
    S Corporation(s)? ......................................................................................................................       Yes  No
    a  If “Yes”, include a copy of each Form 346-P or Form 346-S you received.
    b  If “No”, skip to line 4.

 4  If you answered “Yes” to the question on line 1 and/or the question on line 3, go to Part 2.

 5  If you answered “No” to the question on line 1 and to the question on line 3, STOP! YOU ARE NOT ELIGIBLE TO CLAIM THIS CREDIT.

 Part 2 Current Taxable Year’s Credit Calculation
 Portion Earned by the Taxpayer
 6  Basic research payments paid to qualified organizations:  See instructions ...........               6                                               00
 7  Qualified organization base period amount .......................................................... 7                                               00
 8  Subtract line 7 from line 6.  If less than zero, enter “0” ............................................................................................. 8                        00
 9  Multiply line 8 by 10% (.10).  Enter the result. The result cannot exceed the amount on line 2 ...............................                           9                        00
 Portion Passed Through From Partnerships or S Corporations
 10 Enter the total amount of this credit passed through from partnerships on Form 346-P, Part 2, line 4 ....................                                10                       00
 11 Enter the total amount of this credit passed through from S Corporations on Form 346-S, Part 2, line 4 ...............                                   11                       00

 Part 3 Total Current Year’s Credit
 12 Total Credit:  Add lines 9 through 11.  Enter the total.  This is the current year’s Additional Credit for  
    Increased Research Activities for Basic Research Payments ...........................................................................                    12                       00

 Part 4 Partnerships

A partnership claiming this credit must pass it through to its partners.
 •  Complete Form 346-P for each partner.
 •  Provide a completed copy of Form 346-P to each partner.
 •  File a copy of each completed Form 346-P with your tax return.
 •  Keep a copy of each completed Form 346-P for your records.

                                                                                                                                                                Continued on page 2 

ADOR 11165 (22)

      Name (as shown on page 1)                                                          TIN

      Part 5    S Corporation Credit Election and Shareholder’s Share of Credit
      13  The S Corporation has made an irrevocable election for the taxable year ending M M D D Y Y Y Y  to 
            (check only one box):
            13a  Claim the additional credit for increased research activities for basic research payments as shown on Part 3, line 12 (for the taxable 
                  year indicated above) at the corporate level;
                  OR
            13b  Pass the additional credit for increased research activities for basic research payments as shown on Part 3, line 12 (for the taxable 
                  year indicated above) through to its shareholders.

            Signature                                                  Title                                                                          Date

                Shareholders:
                If passing the credit through to the shareholders, complete Form 346-S for each shareholder.
                •  Provide a copy of the completed Form 346-S to each shareholder.
                •  File a copy of each completed Form 346-S with your tax return.
                •  Keep a copy of each completed Form 346-S for your records.

      Part 6    Available Credit Carryover
                                 (a)                                             (b)                        (c)                                                  (d) 
                                 Taxable Year                          Original Credit Amount Amount Previously Used                                  Available Carryover:
                                                                                                            or Expired
                                                                                                                                                      Subtract column (c) from 
                                                                                                                                                      column (b).
      14                                                                                 00                                                        00                           00
      15                                                                                 00                                                        00                           00
      16                                                                                 00                                                        00                           00
      17                                                                                 00                                                        00                           00
      18                                                                                 00                                                        00                           00

      19    Total Available Carryover:  Add lines 14 through 18 in column (d).  Enter the total. ................................................. 19                           00

                                                                                                                                                      Continued on page 3 

 ADOR 11165 (22)                                                    AZ Form 346 (2022)                                                                               Page 2 of 3

      Name (as shown on page 1)                                                               TIN

      Part 7      Total Additional Available Credit for Increased Research Activities for Basic Research Payments
      20 Current year’s credit:  Enter the amount from Part 3, line 12.
            •     Individuals that did not make the Small Business Income election:  Also, enter this amount on  
                  Form 301, Part 1, line 20, column (a).
            •     Individuals that made the Small Business Income election:  Also, enter this amount on Form 301-SBI,  
                  Part 1, line 15, column (a)
            •     Partnerships:  Enter “0”.
            •     S Corporations that passed the credit through to shareholders:  Enter “0”.
            •     C Corporations, S Corporations electing to claim this credit at the corporate level, and exempt organizations 
                  with UBTI:  Also, enter this amount on Form 300, Part 1, line 14, column (a) ....................................................    20            00
      21        Available credit carryover:  Enter the amount from Part 6, line 19.
                • Individuals that did not make the Small Business Income election:  Also, enter this amount on  
                  Form 301, Part 1, line 20, column (b).
                • Individuals that made the Small Income Business election:  Also, enter this amount on Form 301-SBI,  
                  Part 1, line 15, column (b)
                • C Corporations, S Corporations electing to claim this credit at the corporate level, and exempt organizations 
                  with UBTI:  Also, enter this amount on Form 300, Part 1, line 14, column (b) ......................................................  21            00
      22        Total available credit:  Add lines 20 and 21 and enter the total.
                • Individuals that did not make the Small Business Income election:  Also, enter this amount on  
                  Form 301, Part 1, line 20, column (c).
                • Individuals that made the Small Business Income election:  Also, enter this amount on Form 301-SBI,  
                  Part 1, line 15, column (c)
                • C Corporations, S Corporations electing to claim this credit at the corporate level, and exempt organizations 
                  with UBTI:  Also, enter this amount on Form 300, Part 1, line 14, column (c) ....................................................... 22            00

 ADOR 11165 (22)                                        AZ Form 346 (2022)                                                                                Page 3 of 3
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