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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. 



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                                                                                                                   Arizona Form 325 
                                                                      
If there are  more than 10 items of  qualifying property,            NOTE:   Trusts and estates which are partners in a 
complete additional schedules.  Include  the completed               partnership are not eligible to claim this credit.  However, 
 schedules with Form 325.                                            the share of a partnership owned by a grantor trust that is 
Line  11                                                             disregarded for federal income tax purposes is treated as 
Add  lines 1 through 10 in column (c) and enter the total.           owned by the grantor.   The grantor may claim his or her 
                                                                     share of the credit.   
Line  12                                                              
Enter the total cost of equipment from additional schedules.          Part 5 - Available Credit Carryover  
Line  13                                                             Complete Part  5  only if  you claimed this credit  for prior 
Add lines 11 and 12 and enter the total. This is the total cost      taxable years and the credit  exceeded  your  Arizona income 
of agricultural pollution control equipment  incurred during           tax liability for those taxable years.  
this taxable year.                                                    Lines 19 through 23   
Line  14                                                             Enter the taxable years from which the credit is carried over 
Multiply line 13 by 25%.  Enter the result.                          in column (a) on lines 19 through 23. In column (b), enter the 
                                                                     credit originally computed  for that taxable  year.  In column 
Part 2  –  Credit Passed Through From                                (c), enter the amount of the credit from that taxable  year 
 Partnerships                                                        which was previously used or expired. Subtract the amount in 
NOTE:     If you received a pass through of this credit from         column (c)  from  the amount in column (b) and enter the 
more than one partnership, total the amounts received from           difference  in column (d).  
all Forms 325-P and enter the total.  Include a copy of each          Line 24   
Form  325-P you received with your return.                           Add the amounts entered on lines 19 through 23 in column 
Line  15                                                              (d). Enter the total on line 24, column (d). 
Enter the total amount  of  the credit passed through  from           Part 6 - Total Available Credit  
partnerships on Form(s) 325-P, line 4.                               Line  25   
Part  3 - Total Current Year Credit                                  Individuals: Enter the current year's credit from Part 3, line 
Line  16                                                             18. 
Add  lines 14 and 15.  Enter the total.                               Partnerships : Enter “0”. 
Line  17 - Maximum Credit Allowed                                    Individuals  that did not  make the Small Business Income 
                                                                     election: Enter this amount  on Form 301, Part 1, line  10, 
The maximum credit amount allowed for this credit is 
                                                                     column  (a). 
 $25,000. 
                                                                     Individuals that  made the Small Business Income election:  
Line  18                                                             Enter this amount on Form 301-SBI, Part 1, line 6, column 
Enter the lesser of line 16 or line 17.  This is your maximum        (a). 
current  year credit  for  agricultural pollution control 
                                                                     Line  26   
 equipment.   
                                                                     Individuals:  Enter the amount from Part  5, line  24, column 
Partnerships    -continue to Part 4.                                  (d). This is the total available credit carryover. 
Individuals   -skip to Part 5.                                       Individuals  that did not  make the Small Business Income 
Part 4  -  Partnerships Passing  Through the                         election:  Enter this amount  on Form 301,  Part  1, line  10, 
                                                                      column (b).    
 Credit 
                                                                     Individuals that  made the Small Business Income election:  
Partnerships claiming this credit must pass it through to its 
                                                                     Enter this amount on Form 301-SBI, Part  1, line  6, 
partners.  Proceed to the instructions  on page  3  for 
                                                                     column  (b). 
completing Form 325-P. 
Each partner is entitled to only a  pro rata   share of the credit   Line  27   
based on the partner’s ownership interest in the partnership.        Individuals: Add line 25 and line 26.  Enter the total. This is 
The total of the credit allowed to all partners may not exceed       the total available agricultural pollution control equipment 
the amount that would have been allowed for a sole owner.            credit  that  may be applied to the current  taxable  year's tax 
                                                                     liability.  
                                                                     Individuals  that did  not make  the Small Business Income 
                                                                     election:  Enter  this amount  on  Form 301, Part 1, line  10, 
                                                                     column  (c). 
                                                                     Individuals that  made the Small Business Income election:  
                                                                     Enter this amount on Form 301-SBI, Part  1, line  6, 
                                                                     column  (c).   
                                                                                                          
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                                                                                                                Arizona Form 325 
                                                                   
                       Form 325-P,                                 Part 2 Distribution of the Credit 
   Distribution to Individual Partners of a                       Line 3   
                                                                  Enter the  total amount of the partnership’s credit  for 
                       Partnership                                Agricultural Pollution Control Equipment  from  Form 325, 
Enter the taxable year from which this credit is being passed      Part 3, line 18. 
through to your individual partners.                              Line 4   
Complete  Form 325-P for each  individual  partner of the         Multiply  the amount on line 3 by the  individual  partner’s 
partnership  except for  trust  or estate partners.  However, a   ownership percentage shown  on line 2(c).  Enter the result.  
partnership ownership share that is owned by a grantor trust      This is the partner’s portion of this credit. 
that is disregarded for federal income tax purposes is treated     
as owned by the grantor.  The grantor may claim his or her        Each individual partner will use this form to complete their 
share of the credit.                                              own Form 325.   
The partnership  must  furnish each  individual  partner with       
their completed copy of Form 325-P, including additional            
schedules as needed. 
Part  1  –  Partnership and  Individual  Partner 
Information 
Line 1   
Enter the partnership name and EIN in the spaces provided. 
Line 2   
Enter the  individual  partner’s name,  SSN, and  ownership 
percentage in the spaces provided. 

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