Glossary · Change & Conversion
MRRA Credit Request
In short
The filing a prime contractor uses to recover retail-equivalent tax already paid on materials after a contract converts from MRRA to Modification.
In full
An MRRA Credit Request recovers tax already paid on materials when a contract converts from MRRA to Modification. Its statutory basis is A.R.S. § 42-5008.01(D), which entitles a person who paid an amount on property reasonably believed to be within the MRRA exclusion to an offset against the tax liability assessed once a final determination goes the other way.
Only the prime contractor in charge of the contract can claim it, and only where the contract changed to Modification through change orders or incorrect categorization. Where a scope-related change order brings about the conversion, the reclassification applies from the start of the contract, as ADOR Tax Policy stated in writing on September 30, 2026.
The submission: gather an Affidavit of Retail TPT Equivalent Paid by the Subcontractor from every subcontractor, complete one MRRA Credit Summary Workbook per project per request, and email it to the Department with a POA or Disclosure Authorization Form 285, 285B or 285C where someone other than the taxpayer submits. The Department assigns a request number, reviews the calculation, may ask for sample invoices, and issues a Determination Letter.
ADOR states the credit "should be requested within no more than six (6) months" of the change. Whether that is a hard limit or an advisory window is not established by A.R.S. § 42-5008.01(D), which sets no period.
ADOR's published procedure is written throughout around a prime contractor with subcontractors. A contractor working without subcontractors has no affidavits to collect and only their own receipts, and what such a contractor submits instead is not addressed.
A.R.S. § 42-5008.01(D); ADOR MRRA Credit Request Procedure; ADOR Tax Policy information letter, 2026-09-30