Instructions For Form Ftb 3580 - 1999 printable pdf download

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

treatment facility) subject to an allowance for depreciation

as provided in IRC Section 167. It must be identifiable as a

treatment facility, and must meet one of the following two

A Purpose

conditions:

Use form FTB 3580 to request certification of a pollution

1. You must have completed construction, reconstruction,

control facility placed in service in California, and to elect

or erection of the property after December 31, 1968.

to amortize the basis over a period of 60 months. This

However, if the treatment facility is used in connection

election is in accordance with the provisions of IRC Section

with any plant or other property not in operation before

169 and R&TC Sections 17250(e) and 24372.3. The

January 1, 1969, you must have completed the

amortizable basis for this purpose may be limited. See

construction, reconstruction, or erection of the

definition of amortizable basis below.

treatment facility property after December 31, 1975; or

2. You must have acquired the property after December 31,

The amortization deduction, if elected, is in lieu of

1968, if the original use of the property begins with you.

depreciation otherwise allowable with respect to the

certified pollution control facility.

Original use means the first use to which the property is

put, regardless of whether the use corresponds to your use

B Definitions

of the property.

Amortizable basis is that portion of the adjusted basis (for

C Amortization Period

determining gain) of a certified pollution control facility

that may be amortized. Adjusted basis includes the cost of

At your election, the 60-month amortization period begins

purchase and installation or, if the facility is fabricated by

with the month following the month, or with the year

you, the cost of labor and materials.

following the year, in which you completed or acquired the

facility.

If the facility has a useful life of more than 15 years, you

must reduce the adjusted basis of the facility to an amount

D Election and Certification

that is in the same ratio as 15 years is to the 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:

$500,000 x 15 = $375,000

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 FTB 3580

The remaining adjusted basis of $125,000 ($500,000

to:

less $375,000) may be depreciated over the useful life

STATIONARY SOURCE DIVISION

of the facility.

ATTN DIVISION CHIEF

You may not increase the basis elected to be amortized

STATE AIR RESOURCES BOARD

by the cost of additions or improvements after the

PO BOX 2815

amortization period begins.

SACRAMENTO CA 95812-2815

Certified pollution control facility is a new identifiable

The State Air Resources Board will add its certification to

treatment facility located in California and used, in

Part III if the facility meets the requirements of the R&TC.

connection with a plant or other property in operation

The Board will return the original and one copy of form

before January 1, 1976, to abate or control water or

FTB 3580 to you. Attach the original to the first return filed

atmospheric pollution or contamination by removing,

with the Franchise Tax Board (FTB) on which you take the

altering, disposing, storing, or preventing the creation or

amortization. Keep the copy for your records.

emission of pollutants, contaminants, wastes, or heat.

Water pollution. If this election applies to water pollution,

It must not significantly:

you must apply for certification from the State Water

Resources Control Board. Mail three copies of the

• Increase the output or capacity, extend the useful life, or

completed form FTB 3580 to:

reduce the total operating costs of such plant 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 State

The State Water Resources Control Board will add its

Water Resources Control Board (water pollution) must

certification to Part IV if the facility meets the requirements

certify that the pollution control facility is in conformity

of the R&TC. The Board will return the original and one copy

with the state program or requirements for abatement or

of form FTB 3580 to you. Attach the original to the first

control of water, or atmospheric pollution or contamina-

return filed with the FTB on which you take the amortization.

tion.

Keep the copy for your records.

New identifiable treatment facility includes only tangible

property (not including a building and its structural

components, other than a building that is exclusively a

FTB 3580 Instructions 1999

Instructions For Form Ftb 3580 - 1999

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