Members of the U.S. armed forces may subtract pay received for serving in a combat zone or an area given the treatment of a combat zone. Subtract only the amount included in your 2003 federal adjusted gross income.

Qualified Wood Stove, Wood Fireplace, or Gas Fired Fireplace

Arizona law provides a subtraction for converting an existing fireplace to a qualified wood stove, qualified wood fireplace, or gas fired fireplace and non-optional equipment directly related to its operation. You may subtract up to $500 of the costs incurred for converting an existing fireplace to a qualified wood stove, qualified wood fireplace, or gas fired fireplace on your property located in Arizona. When you figure your subtraction, do not include taxes, interest, or other finance charges.

A qualified wood stove or a qualified wood fireplace is a residential wood heater that was manufactured on or after July 1, 1990, or sold at retail on or after July 1, 1992. The residential wood heater must also meet the U.S. Environmental Protection Agency's July 1990 particulate emissions standards.

A qualified gas fired fireplace is any device that burns natural or liquefied petroleum gas as its fuel through a burner system that is permanently installed in the fireplace. The conversion of an existing wood burning fireplace to noncombustible gas logs that are permanently installed in the fireplace also qualifies as a gas fired fireplace.

Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years

You must make an entry here if all of the following apply:

1. During a year prior to 2003 you were required to repay amounts held under a claim of right.
2. You computed your tax for that prior year under Arizona's claim of right provisions.
3. A net operating loss or capital loss was established due to the repayment made in the prior year.
4. You are entitled to take that net operating loss or capital loss carryover into account when computing your 2003 Arizona taxable income.
5. The amount of the loss carryover allowed to be taken into account for Arizona purposes is more than the amount included in your federal income.

Enter the amount of loss carryover allowed for the taxable year under Arizona law is more than the amount included in your federal adjusted gross income.

Depreciation for Property for Which You Recomputed I.R.C. 179 Expense Under the Internal Revenue Code in Effect on January 1, 2003.

If you had to refigure the amount of I.R.C. § 179 expense allowed on the Arizona return under the Internal Revenue Code in effect on January 1, 2003 and you had to compute depreciation (on a modified 2002 federal Form 4562) for assets for which I.R.C. § 179 expense was recomputed, enter that depreciation here. If you are a shareholder in an S corporation that does business in Arizona and you received a statement from the S corporation specifying an amount of depreciation you may subtract on your Arizona full year resident return, enter that amount here.

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