Form 3547 - California Donated Agricultural Products Transportation Credit

G Carryover

If a C corporation had unused credit carryovers when it elected

S corporation status, the carryovers were reduced to 1/3 and transferred

If the available credit exceeds the current year tax liability, the unused

to the S corporation. The remaining 2/3 were disregarded. The allowable

credit may be carried over to succeeding years until exhausted. Apply the

carryovers may be used to offset the 1.5% tax on net income in

carryover to the earliest taxable year possible. In no event can this credit

accordance with the respective carryover rules. These C corporation

be carried back and applied against a prior year’s tax.

carryovers may not be passed through to shareholders. For more

information, get Schedule C (100S), S Corporation Tax Credits.

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

Enter the eligible transportation costs paid or incurred in connection with

individual or a branch owned by a corporation], the credit amount

the donated agricultural products for which you received certification

received from the disregarded entity that can be utilized is limited to the

from the donee nonprofit charitable organization. If two or more

difference between the taxpayer’s regular tax figured with the income of

taxpayers share in the expenses eligible for the credit, each taxpayer shall

the disregarded entity, and the taxpayer’s regular tax figured without the

be eligible to receive the tax credit in proportion to their respective share

income of the disregarded entity.

of the expenses paid or incurred. If you are determining your eligible

An SMLLC may be disregarded as an entity separate from its owner, and

transportation costs based on mileage, multiply the total miles connected

is subject to statutory provisions that recognize otherwise disregarded

with transporting the donated agricultural product by $.14 (fourteen

entities for certain purposes, for example:

cents). Otherwise, enter the actual transportation costs paid or incurred

in connection with the donated agricultural products.

• The tax and fee of an LLC

• The tax return filing requirements of an LLC

Line 3 – Pass-Through Donated Agricultural Products

• The credit limitations previously mentioned

Transportation Credit(s)

Get Form 568, Limited Liability Company Tax Booklet, for more

If you received more than one pass-through credit from S corporations,

information.

estates, trusts, partnerships, or LLCs classified as partnerships, add the

amounts and enter the total on line 3. Attach a schedule showing the

If the disregarded entity reports a loss, the taxpayer may not claim the

names and identification numbers of the entities from which the credits

credit this year but can carry over the credit amount received from the

were passed through to you.

disregarded entity.

This credit cannot reduce the minimum franchise tax (corporations

Line 7a – Credit Claimed (excluding assigned credits claimed

and S corporations), annual tax (limited partnerships, limited liability

on form FTB 3544A)

partnerships, and LLCs classified as partnerships), the alternative

The amount of this credit you may claim on your tax return may be

minimum tax (corporations, exempt organizations, individuals, and

limited. See General Information E, Limitations. Also refer to the

fiduciaries), the built-in gains tax (S corporations), or the excess net

credit instructions in your tax booklet for more information. Use credit

passive income tax (S corporations).

code 204 when you claim this credit.

This credit cannot reduce regular tax below tentative minimum tax. Get

Line 7b – Credit Assigned to Other Corporations

Schedule P (100, 100W, 540, 540NR, or 541), Alternative Minimum Tax

Corporations that completed form FTB 3544 for this credit, enter the

and Credit Limitations, for more information.

amount from column (g) on this line.

This credit is taken in lieu of any deduction otherwise allowable for the

same eligible transportation costs. Any deduction allowed for these same

costs must be reduced by the amount of credit figured for the current

taxable year (the amount shown on line 4).

This credit is not refundable.

F Assignment of Credits

Assigned Credits to Affiliated Corporations – For taxable years beginning

on or after July 1, 2008, 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 in taxable years

beginning on or after January 1, 2010. 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.

Page 2 FTB 3547 Instructions 2014

Form 3547 - California Donated Agricultural Products Transportation Credit - 2014 Page 2

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