INSTRUCTIONS: ARIZONA CREDIT FOR INCREASED RESEARCH ACTIVITIES (Form 308)

Corporations use form 308 to claim an Arizona credit for increased research activities. This document can be obtained from the website of the Arizona Department of Revenue.

Arizona Credit For Increased Research Activities 308 Step 1: If not filing for the calendar year printed on the form, enter the beginning and ending dates of your fiscal year.

Arizona Credit For Increased Research Activities 308 Step 2: Enter your corporation name as it appears on form 120, 120S, 120X or 165 in the first blank box.

Arizona Credit For Increased Research Activities 308 Step 3: Enter your employer identification number in the second blank box.

Arizona Credit For Increased Research Activities 308 Step 4: Complete lines 1 and 2 in Part I, which concerns your qualifications for a refund of the current taxable year's excess credit.

Arizona Credit For Increased Research Activities 308 Step 5: Lines 3 through 24 of Part II concern calculation of the current taxable year's credit.

Arizona Credit For Increased Research Activities 308 Step 6: Lines 25 through 29 of Part III are for the use of S corporations only.

Arizona Credit For Increased Research Activities 308 Step 7: Document each partner's share of the credit separately on lines 30 through 33 of Part IV as applicable.

Arizona Credit For Increased Research Activities 308 Step 8: Part V concerns the refundable portion of the current taxable year's excess credit. Lines 34 through 39 of this section should only be completed if "yes" is checked on line 1.

Arizona Credit For Increased Research Activities 308 Step 9: Part VI concerns your available pre-2003 credit carryover. Complete lines 40 through 47 on the table provided as instructed.

Arizona Credit For Increased Research Activities 308 Step 10: Part VII concerns your available post-2002 credit carryover. Complete lines 48 through 56 on the table provided as instructed.

Arizona Credit For Increased Research Activities 308 Step 11: Part VIII concerns limitation of the pre-2003 credit carryover. Complete lines 57a through 57f as instructed.

Arizona Credit For Increased Research Activities 308 Step 12: Part IX concerns limitation of the post-2002 credit carryover. Complete lines 58a through 58e as instructed.

Arizona Credit For Increased Research Activities 308 Step 13: Part X concerns calculation of your total available nonrefundable credit. Complete lines 59 through 62 as instructed.