Specific Line Instructions
If a taxpayer owns an interest in a disregarded business entity [a single
member limited liability company (SMLLC) not recognized by California,
Line 1 – Eligible Transportation Cost
and for tax purposes is treated as a sole proprietorship owned by an
individual or a branch owned by a corporation], the credit amount
Enter the eligible transportation costs paid or incurred in connection with
received from the disregarded entity that can be utilized is limited to the
the donated agricultural products for which you received certification
difference between the taxpayer’s regular tax figured with the income of
from the donee nonprofit charitable organization. If two or more
the disregarded entity, and the taxpayer’s regular tax figured without the
taxpayers share in the expenses eligible for the credit, each taxpayer shall
income of the disregarded entity.
be eligible to receive the tax credit in proportion to their respective share
of the expenses paid or incurred. If you are determining your eligible
If the disregarded entity reports a loss, the taxpayer may not claim the
transportation costs based on mileage, multiply the total miles connected
credit this year but can carry over the credit amount received from the
with transporting the donated agricultural product by $.14 (fourteen
cents). Otherwise, enter the actual transportation costs paid or incurred
For more information on SMLLC, get Form 568, Limited Liability
in connection with the donated agricultural products.
Company Tax Booklet.
Line 3 – Pass-Through Donated Agricultural Products
This credit cannot reduce the minimum franchise tax (corporations
and S corporations), annual tax (limited partnerships, limited liability
If you received more than one pass-through credit from S corporations,
partnerships, and LLCs classified as partnerships), the alternative
estates, trusts, partnerships, or LLCs classified as partnerships, add the
minimum tax (corporations, exempt organizations, individuals, and
amounts and enter the total on line 3. Attach a schedule showing the
fiduciaries), the built-in gains tax (S corporations), or the excess net
names and identification numbers of the entities from which the credits
passive income tax (S corporations).
were passed through to you.
This credit cannot reduce regular tax below tentative minimum tax. Get
Schedule P (100, 100W, 540, 540NR, or 541), Alternative Minimum Tax
Line 7a – Credit Claimed
and Credit Limitations, for more information.
Do not include assigned credits claimed on form FTB 3544A.
This credit is taken in lieu of any deduction otherwise allowable for the
This amount may be less than the amount on line 6 if your credit
same eligible transportation costs. Any deduction allowed for these same
is limited by your tax liability. For more information, see General
costs must be reduced by the amount of credit figured for the current
Information E, Limitations and refer to the credit instructions in your tax
taxable year (the amount shown on line 4).
booklet. Use credit code 204 when you claim this credit.
This credit is not refundable.
Line 7b – Total Credits Assigned
Corporations that assign credit to other corporations within combined
F Assignment of Credits
reporting group must complete form FTB 3544. Enter the total amount of
credit assigned from form FTB 3544, column (g) on this line.
Assigned Credits to Affiliated Corporations – Credit earned by
members of a combined reporting group may be assigned to an affiliated
corporation that is a member of the same combined reporting group. A
credit assigned may only be claimed by the affiliated corporation against
its tax liability. For more information, get form FTB 3544, Election to
Assign Credit Within Combined Reporting Group, or form FTB 3544A,
List of Assigned Credit Received and/or Claimed by Assignee or go to
ftb.ca.gov and search for credit assignment.
If the available credit exceeds the current year tax liability, the unused
credit may be carried over to succeeding years until exhausted. Apply the
carryover to the earliest taxable year possible. In no event can this credit
be carried back and applied against a prior year’s tax.
Page 2 FTB 3547 Instructions 2015