Instructions for Form FTB 3580
Application to Amortize Certified Pollution Control Facility
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 1998, and to the California Revenue and Taxation Code (R&TC).
ble as a treatment facility, and must meet one of the
following two conditions:
1. You must have completed construction, reconstruc-
tion or erection of the property after December 31,
Use form FTB 3580 to request certification of a pollution
1968. However, if the treatment facility is used in
control facility placed in service in California, and to
connection with any plant or other property not in
elect to amortize the basis over a period of 60 months.
operation before January 1, 1969, you must have
This election is in accordance with the provisions of IRC
completed the construction, reconstruction or erec-
Section 169 and R&TC Sections 17250(e) and 24372.3.
tion of the treatment facility property after
The amortizable basis for this purpose may be limited.
December 31, 1975; or
See definition of amortizable basis below.
2. You must have acquired the property after
The amortization deduction, if elected, is in lieu of
December 31, 1968, if the original use of the prop-
depreciation otherwise allowable with respect to the cer-
erty begins with you.
tified pollution control facility.
Original use means the first use to which the property
is put, regardless of whether the use corresponds to
your use of the property.
Amortizable basis is that portion of the adjusted basis
(for determining gain) of a certified pollution control facil-
C Amortization Period
ity that may be amortized. Adjusted basis includes the
At your election, the 60-month amortization period
cost of purchase and installation or, if the facility is fabri-
begins with the month following the month, or with the
cated by you, the cost of labor and materials.
year following the year, in which you completed or
If the facility has a useful life of more than 15 years,
acquired the facility.
you must reduce the adjusted basis of the facility to an
amount that is in the same ratio as 15 years is to the
D Election and Certification
facility’s total years of useful life.
Make the election to amortize the amortizable basis of a
For example, if the adjusted basis of the facility is
certified pollution control facility by completing Part I and
$500,000 and its useful life is 20 years, then compute
Part II of form FTB 3580. Then apply for certification as
the amortizable basis as follows:
Air pollution. If this election applies to air pollution, you
must apply for certification from the State Air Resources
Board. Mail three copies of the completed form to:
The remaining adjusted basis of $125,000 ($500,000
STATIONARY SOURCE DIVISION
less $375,000) may be depreciated over the useful life
ATTN DIVISION CHIEF
of the facility.
STATE AIR RESOURCES BOARD
You may not increase the basis elected to be amortized
PO BOX 2815
by the cost of additions or improvements after the amor-
SACRAMENTO CA 95812-2815
tization period begins.
The State Air Resources Board will add its certification
Certified pollution control facility is a new identifiable
to Part III if the facility meets the requirements of the
treatment facility located in California and used, in con-
R&TC. The Board will return the original and one copy
nection with a plant or other property in operation before
of form FTB 3580 to you. Attach the original to the first
January 1, 1976, to abate or control water or
return filed with the Franchise Tax Board (FTB) on
atmospheric pollution or contamination by removing,
which you take the amortization. Keep the copy for your
altering, disposing, storing or preventing the creation or
emission of pollutants, contaminants, wastes or heat.
Water pollution. If this election applies to water pollu-
It must not significantly:
tion, you must apply for certification from the State
Increase the output or capacity, extend the useful
Water Resources Control Board. Mail three copies of
life, or reduce the total operating costs of such plant
the completed form to:
or other property; or
STATE WATER RESOURCES CONTROL BOARD
Alter the nature of the manufacturing or production
PO BOX 100
process or facility.
SACRAMENTO CA 95812-0100
The State Air Resources Board (air pollution) or the
The State Water Resources Control Board will add its
State Water Resources Control Board (water pollution)
certification to Part IV if the facility meets the require-
must certify that the pollution control facility is in con-
ments of the R&TC. The Board will return the original
formity with the state program or requirements for
and one copy of form FTB 3580 to you. Attach the origi-
abatement or control of water or atmospheric pollution
nal to the first return filed with the Franchise Tax Board
(FTB) on which you take the amortization. Keep the
New identifiable treatment facility includes only tangi-
copy for your records.
ble property (not including a building and its structural
components, other than a building that is exclusively a
treatment facility) subject to an allowance for deprecia-
tion as provided in IRC Section 167. It must be identifia-
FTB 3580 Instructions