Form 3523 - Research Credit - 2015 (Page 8 of 8) in pdf

Part III – Credit Allocation and Carryover Per

The percentage representing taxable income attributable to your interest

in the business to your total taxable income for the year cannot exceed

Entity for Combined Report Filers

100%. If in the current taxable year you had no income attributable

to a particular business interest, you cannot claim any research credit

Complete this part for taxpayers with multiple members in a combined

related to that business this year; however, the credit can be carried

return with Research Credits.

over to succeeding years until exhausted. Likewise, any current year

In some cases, the total credit as seen in column (e) and the total

pass‑ through research credit that exceeds the IRC Section 41(g)

credit carryover in column (h) may not match the amounts on line 46

limitation may be carried over to succeeding years until exhausted.

and line 49 if the amounts on these lines include the credit related to a

All pass‑through credit carryovers will be subject to the IRC

member of the Controlled Group that is not part of the combined report.

Section 41(g) limitation in each subsequent year.

Credit Generated and/or Assigned Per Entity

Line 44

Column (b) – Enter the corporate number for each entity generating,

If any part of the amount on line 41 is from a passive activity, complete

claiming, or assigning the Research Credits.

form FTB 3801‑CR, Passive Activity Credit Limitations, or form FTB 3802,

Column (c) – Enter the total credit generated per taxpayer.

Corporate Passive Activity Loss and Credit Limitations, to determine your

Column (d) – Enter the amount of generated credit carryover from prior

allowable credit. Complete form FTB 3801‑CR or form FTB 3802 (using

years. Do not include any assigned credit.

California amounts) before completing the rest of this form.

Column (f) – Enter the amount of generated credit claimed against tax

Line 45

for each entity. This does not include any credits reported or claimed on

Enter any prior year research credit carryover from non-passive

form 3544A.

activities only. Any prior year research credit carryover from passive

Column (g) – Enter the total credit assigned to other corporations within

activities should have been included in the computation of allowable

the combined reporting group as reported on form 3544. Also, enter the

credits from passive activities (form FTB 3801‑CR or form FTB 3802) on

total of this amount on line 48.

line 44.

Note: Per R&TC 23663 credits assigned to a particular entity cannot

Individuals, shareholders, beneficiaries, partners, and members:

be reassigned.

If the non‑passive research credit carryover was generated from a

pass‑through entity, apply the IRC Section 41(g) limitation to the

credit carryover before entering the allowable carryover on line 45.

See the instructions for line 40 above on how to compute the IRC

Section 41(g) limitation.

Part II – Carryover Computation

Complete Part II to compute the amount of credit carryover for a future

year. Combined Report filers complete Part III before completing Part II.

Line 47 - Credit claimed

Do not include assigned credits claimed on form FTB 3544A.

This amount may be less than the amount on line 46 if your credit

is limited by your tax liability. For more information, see General

Information C, Limitations and refer to the credit instructions in your tax

booklet. Use credit code 183 when you claim this credit.

Line 48 - Total credit assigned

Corporations that assign credit to other corporations within combined

reporting group must complete form FTB 3544. Enter the total amount

of credit assigned from form FTB 3544, column (g) on this line.

Line 49

Enter the credit carryover that is available for use or assignment for

future years. This is the amount of credit that should be reported on

line 45 of the subsequent year form FTB 3523.

FTB 3523 Instructions 2015 Page 5

Form 3523 - Research Credit - 2015 Page 8

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