The Arizona State - Credit 304 - Enterprise Zone Credit was a nonrefundable tax credit available to individuals and corporations for net increases in qualified employment positions within a former enterprise zone. This credit was designed to encourage economic development in designated areas of Arizona.
Status and Eligibility
- The Enterprise Zone Credit was repealed effective July 1, 2011.
- The last tax year in which a taxpayer could establish the credit was 2011.
- Third-year credits could only be claimed in tax year 2013, provided the first-year credit was established before repeal and all statutory requirements were met.
- No new credits can be established for tax years beginning after June 30, 2011.
- Properly established credits may be carried forward for up to five taxable years, However 5 year carryover of credit is now also expired.
Claiming the Credit
- For individuals: Enter the credit carryover amount on Arizona Form 301, Part 1, line 1, column (b).
- For C Corporations, S corporations (if claimed at corporate level), and exempt organizations with unrelated business taxable income (UBTI): Enter the amount on Arizona Form 300, Part 1, line 1, column (b).
- Line 6 of Form 304 calculates the total enterprise zone credit carryover available by subtracting the amount from line 5 from line 4.
Source:
Form 304.pdf (Arizona Department of Revenue)
Disclaimer: Always verify with the current Federal or State Department of Revenue Forms and Instructions, as tax rules may change. For complex situations, consult a CPA or tax attorney.