(a)

1. (1) To qualify for the benefits of this program, a company must complete Form AR1036 listing:

   1. (A) Each employee’s name for which tuition reimbursement payments were made during the tax year;
   2. (B) The total amount reimbursed for tuition, fees, and books for each employee; and
   3. (C) The total amount of credit being claimed.
2. (2) Form AR1036 must be fully completed and attached to the eligible company's tax return.

(b)

1. (1) If the eligible company is a partnership, limited liability company, or Subchapter S corporation, additional information is required in Section C of Form AR1036.
2. (2) The total amount of the allowable tuition reimbursement credit will flow through to the members of the income tax pass-through entity (partnership, limited liability company, or Subchapter S corporation).

3. (3)

   1. (A) The credit should then be allocated to each member based upon that member's proportionate share of the entity's net income and loss.
   2. (B) A member's proportionate share is generally equivalent to the member's percentage of ownership in the entity.

4. (4) A duplicate Form AR1036 must be:

   1. (A) Produced for each member; and
   2. (B) Included with each member’s tax return.