INSTRUCTIONS: ARIZONA DEFENSE CONTRACTING CREDITS (Form 302) Qualified defense contractors certified by the Arizona Department of Commerce can use a form 302 to document nonrefundable tax credits they have been allotted previously or allowed to carry forward. This document can be found on the website of the Arizona Department of Revenue. You should only complete this form if the allowable defense contracting credits for qualifying taxable years exceeded Arizona income tax liability for those taxable years. Note that the Department of Commerce ended its certification of defense contractors following June 30, 2001 and that these certifications were only issued for five years. Therefore, tax year 2006 was the final year in which it was possible to create defense contracting credits to carry forward. Arizona Defense Contracting Credits 302 Step 1: If you are not filing for the tax year listed on the form in question, enter the beginning and ending dates of your fiscal year at the top of the form. Arizona Defense Contracting Credits 302 Step 2: Enter your name or names as entered on your form 140, 140PY, 140NR, 140X, 120, 120A, 120S, 120X or 165 return. Arizona Defense Contracting Credits 302 Step 3: Enter your Social Security number or employer identification number (EIN) where indicated. Arizona Defense Contracting Credits 302 Step 4: Only one table is to be completed on this form. In column a, you must enter the original credit amount computed for the taxable years in which the credits exceeded your income tax liability. Arizona Defense Contracting Credits 302 Step 5: In column b, enter the total amount of the credits from the taxable years in which they exceeded your income tax liability that have already been used. Arizona Defense Contracting Credits 302 Step 6: Subtract the amount of column b from column a. Arizona Defense Contracting Credits 302 Step 7: Enter the difference calculated in step 6 in column c. Arizona Defense Contracting Credits 302 Step 8: If you are filing as a corporation or S corporation, transfer the amount from column c to form 300, Part I, line 1. Arizona Defense Contracting Credits 302 Step 9: If you are filing as an individual, transfer the amount from column c to form 301, Part I, line 1. Arizona Defense Contracting Credits 302 Step 10: Attach your completed form 302 to the tax return you are filing.