Instructions For Form Ftb 3541 - California Motion Picture And Television Production Credit - 2016 Page 3


Disregarded business entity. If a taxpayer owns an interest in a
Line 5b – Assignable credit carryover from prior year
disregarded business entity [for example, a single member limited
Complete this line only if you are a member of a combined reporting
liability company (SMLLC), which for tax purposes is treated as a sole
group. This is the assignable portion of line 5a, Credit carryover from
proprietorship if owned by an individual or a division if owned by a
prior year. Enter the prior year credit allocated to you by the CFC plus the
corporation], the credit amount received from the disregarded entity
credit you received from pass-through entities, less any credit amounts
is limited to the difference between the taxpayer’s regular tax figured
in prior years that were:
with the income of the disregarded entity, and the taxpayer’s regular tax
y Used to reduce your franchise or income tax liability
figured without the income of the disregarded entity. If the credit is sold
y Assigned to affiliated corporations
under Section 17053.85(c) or Section 17053.95(c), or assigned or sold
y Sold to unrelated parties (if the credit was attributable to an
under Section 23685(c) or Section 23695(c), this restriction does not
independent film)
y Applied against sales and use tax
Do not include any prior year credit amounts that you purchased or were
assigned to you by an affiliated corporation.
If the available credit exceeds the current year tax liability or is limited
Line 7a – Credit sold to other entities. Enter the amount of credit sold
by TMT (individual taxpayers only), the unused credit may be carried
to an unrelated party from form FTB 3551, box 7 (Total amount of credit
over for six years or until the credit is exhausted, whichever occurs first.
being sold).
Apply the credit carryover to the earliest taxable year. In no event can the
credit be carried back and applied against a prior year’s tax.
Line 8 – Credit assigned to affiliated corporations. If you assigned
a credit to an affiliated corporation pursuant to R&TC Section 23685
Retain all records that document the credit and carryover used in prior
or Section 23695, complete Part IV, Credit Assigned to Affiliated
years. The FTB may require access to these records.
Corporations Pursuant to R&TC Section 23685 or Section 23695. Enter
the amount from Part IV, line 22(d), on this line.
Specific Line Instructions
Line 9 – Credit passed through on Schedule K-1. Enter the amount
of credit passed through to shareholders, partners, or members on
Owner of credit. Enter the name of the owner of the credit and
Schedule K-1, on this line.
the California Corporation no. or FEIN or the California Secretary of State
(SOS) file number. If the name shown on the California return is the
Line 10a – Credit applied against sales and use taxes. If you applied
same as the owner of the credit, enter “Same”.
any portion of the credit against qualified sales and use taxes, enter the
amount on this line.
Part I – Available Credit
Part II – Carryover Computation
Credit certificate numbers (Lines 1b, 2b, 3b, 7b, and 10b) – Provide
the tax credit certificate number for the current year generated credit
Line 13a – Credit claimed
allocated to you from the CFC, passed through to you from a pass-
Do not include assigned credits claimed on form FTB 3544A.
through entity, purchased from a qualified taxpayer, assigned to you
This amount may be less than the amount on line 12 if your credit
from an affiliated corporation, or applied against BOE sales and use
is limited by your tax liability. For more information, see General
taxes. If you reported multiple credits, list all tax credit certificate
Information D, Limitations, and refer to the credit instructions in your tax
numbers on the respective lines or attach a schedule, if necessary.
booklet. When you claim the credit, use credit code 223 for the original
Failure to provide all tax credit certificate numbers may result in the
credit or code 237 for the new credit.
disallowance of the credit.
Note: If you enter an amount on line 13a, complete the table, Part V,
Line 1a – Current year generated credit. If you received a tax credit
Credit Claimed.
certificate from the CFC, enter the full amount of credit allocated to you
Line 13b – Total credit assigned
as shown on the CFC Tax Credit Certificate. If you received more than
Corporations that assign credit to other corporations within combined
one tax credit certificate during the taxable year, add the credit amounts
reporting group under R&TC Section 23663 must complete
from all credit certificates and enter the total on this line. If you received
form FTB 3544. Enter the total amount of credit assigned from
the credit from a pass–through entity, purchased the credit from a
form FTB 3544, column (g) on this line.
qualified taxpayer, or received the credit through an assignment from
another corporation pursuant to R&TC Section 23685 or Section 23695,
Part III – Assigned Credit from Affiliated
do not enter the amounts on this line. Instead, enter these amounts on
line 2a, line 3a, or line 4, respectively.
Corporations Pursuant to R&TC
Line 2a – Credit received from pass–through entities. Add the
Section 23685 or Section 23695.
pass-through credit amounts received from S corporations, estates,
trusts, partnerships, or LLCs taxed as a partnership, and enter the
Complete this table if you received credits assigned from an affiliated
total on this line. Attach a schedule showing the name, address, tax
corporation pursuant to R&TC Section 23685 or Section 23695.
identification number, and percentage of ownership for the flow-through
Line 15, column (a) – Assignor name. Enter the name of the
entity from which you received the credit.
corporation that assigned the credit.
Line 3a – Credit purchased from other entities. Enter the amount
Line 15, column (b) – Assignor corporation number, FEIN, or CA SOS
of credit purchased from a qualified taxpayer. Do not enter the
number. Enter the California corporation number, FEIN, or CA SOS
consideration amount paid for the credit.
number of the corporation that assigned the credit.
Line 4 – Credit received from affiliated corporations. If you received
Line 15, column (c) – Credit certificate number. Enter the credit
an assigned credit from an affiliated corporation pursuant to R&TC
certificate number from the qualified taxpayer’s (assignor’s) tax credit
Section 23685 or Section 23695, complete Part III, Credit Received from
certificate issued by the CFC.
Affiliated Corporations Pursuant to R&TC Section 23685 or Section
Line 15, column (d) – Credit received. Enter the amount of the credit
23695. Enter the amount from Part III, line 16 on this line.
received from the assignor.
FTB 3541 Instructions 2016 Page 3


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