Looking for a California Tax Forms And Templates? Download it for free!

2015 Instructions for Form FTB 3580

Application and Election to Amortize Certified Pollution Control Facility

References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and to the California Revenue and Taxation Code (R&TC).

General Information

You must have completed construction, reconstruction, or erection

of the property after December 31, 1968. However, if the treatment

A Purpose

facility is used in connection with any plant or other property not

in operation before January 1, 1969, you must have completed the

Use form FTB 3580, Application and Election to Amortize Certified

construction, reconstruction, or erection of the treatment facility

Pollution Control Facility, to request certification of a pollution control

property after December 31, 1975.

facility placed in service in California, and to elect to amortize the

You must have acquired the property after December 31, 1968, if

basis over a period of 60 months. This election follows the provisions

the original use of the property begins with you after this date.

of the Internal Revenue Code (IRC) Section 169 and the California

Original use – means the first use to which the property is put,

Revenue and Taxation Code (R&TC) Sections 17250(b) and 24372.3,

whether or not the use corresponds to your current use of the

which are subject to the rules relating to corporate preferences of IRC

property.

Sections 291(a)(4) and 1363(b)(4), and R&TC Sections 24449 and

23800. The amortizable basis for this purpose may be limited. See

C Amortization Period

definition of amortizable basis below.

At your election, the 60-month amortization period begins with the

The certified pollution control facility amortization deduction is in lieu

month following the date in which you completed or acquired the

of otherwise allowable depreciation.

facility.

B Definitions

For C corporations that elect to amortize during the first three

taxable years following the conversion of a C corporation to an

Adjusted basis – includes the cost of purchase and installation or, if

S corporation, only 80% of the adjusted basis of the certified pollution

the facility is fabricated by you, the cost of labor and materials.

control facilities may be amortized over 60 months. Accordingly,

If the useful life of the facility is more than 15 years, you must reduce

for corporations the amortizable basis of certified pollution control

the adjusted basis of the facility to an amount that is in the same ratio

facilities for which a rapid amortization election is made must be

as 15 years is to the facility’s total years of useful life.

reduced by 20% (see IRC Sections 291(a)(4) and 1363(b)(4), and

For example: If the adjusted basis of the facility is $500,000 and its

R&TC Sections 24449 and 23800 ).

useful life is 20 years, then compute the amortizable basis as follows:

D Election and Certification

$500,000 x 15 = $375,000

Make the election to amortize the amortizable basis of a certified

pollution control facility by completing Part I and Part II of form

The $375,000, if elected, will be amortized over 60 months. The

FTB 3580. Then apply for certification as follows:

remaining adjusted basis of $125,000 ($500,000 less $375,000) may

Air pollution. If this election applies to air pollution, apply for

be depreciated over 20 years, the useful life of the facility.

certification from the State Air Resources Board. Mail the original and

You may not increase the basis elected to be amortized by the cost of

two copies of the completed form FTB 3580 to:

additions or improvements after the amortization period begins.

STATIONARY SOURCE DIVISION

ATTN: DIVISION CHIEF

Amortizable basis – the portion of the adjusted basis that may be

amortized, for determining gain, of a certified pollution control facility.

STATE AIR RESOURCES BOARD

PO BOX 2815

Certified pollution control facility – a new identifiable treatment

SACRAMENTO CA 95812-2815

facility located in California and used, in connection with a plant

Telephone: 916.322.6026

or other property in operation before January 1, 1976, to abate or

control water or atmospheric pollution or contamination by removing,

The State Air Resources Board will add its certification to Part III if

altering, disposing, storing, or preventing the creation or emission of

the facility meets the law requirements. They will return the original

and one copy of form FTB 3580 to you. Attach the original to the first

pollutants, contaminants, wastes, or heat.

tax return you file with the Franchise Tax Board (FTB) on which you

The facility must not significantly:

deduct the amortization. Keep the copy for your records.

•

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

Water pollution. If this election applies to water pollution, apply for

total operating costs of such plant or other property.

certification from the State Water Resources Control Board. Mail the

•

Alter the nature of the manufacturing or production process, or

original and two copies of the completed form FTB 3580 to:

facility.

DIVISION OF WATER QUALITY

The State Air Resources Board (air pollution) or the State Water

ATTN: DEPUTY DIRECTOR

Resources Control Board (water pollution) must certify that the

STATE WATER RESOURCES CONTROL BOARD

pollution control facility conforms with the state program or

PO BOX 100

requirements for abatement or control of water, or atmospheric

SACRAMENTO CA 95812-0100

pollution or contamination.

Telephone: 916.341.5700

New identifiable treatment facility – tangible property, not including

The State Water Resources Control Board will add its certification to

a building and its structural components unless the building is

Part III if the facility meets the law requirements. They will return the

exclusively a treatment facility, which is subject to an allowance for

original and one copy of form FTB 3580 to you. Attach the original

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

to the first tax return you file with the FTB on which you deduct the

treatment facility, and must meet one of the following two conditions:

amortization. Keep the copy for your records.

Page 2 FTB 3580 Instructions 2015

Form 3580 - California Application And Election To Amortize Certified Pollution Control Facility Page 2

Related Articles

Related forms

Related Categories