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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).

General Information

ble as a treatment facility, and must meet one of the

following two conditions:

A Purpose

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

B Definitions

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:

follows:

Air pollution. If this election applies to air pollution, you

$500,000 x

= $375,000

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

records.

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

or contamination.

(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-

Side 2

FTB 3580 Instructions

(REV. 1998)

Instructions For Form Ftb 3580 - Application To Amortize Certified Pollution Control Facility

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