Form 3540 - California Credit Carryover And Recapture Summary - 2014


Credit Carryover and
Recapture Summary
Attach to your California tax return.
CA Corporation no.
Name(s) as shown on your California tax return
California Secretary of State (SOS) file number
Part I – Credit Carryover
Name of
Credit carryover available
Credit carryover
Credit carryover to
repealed credit
from prior years
used this year
future years
Part II – Credit Recapture (See Credit Recapture Instructions)
Total credit claimed for all years
Proration percentage:
Credit recapture amount
Employer Childcare
(60 months less number of months facility
column (a) x column (b)
Program Credit (ECPC)
operated ÷ 60 months)
Code 189
Total credit claimed for all years
Proration percentage:
Credit recapture amount
Farmworker Housing
(360 months less number of months facility
column (a) x column (b)
Credit (FWHC)
operated ÷ 360 months)
Code 207
for years that are past the statute of limitations.
General Information
Business Tax Credit Limitation – For taxable years beginning on
References in these instructions are to the California Revenue and
or after January 1, 2008, and before January 1, 2010, business tax
Taxation Code (R&TC).
credits could only offset 50% of the tax (corporations) or net tax
Part I Carryover
(individuals), if a corporation’s taxable income was $500,000 or
more, or if an individual’s net business income was $500,000 or more.
A Purpose
Business tax credits disallowed due to the 50% limitation may be
carried over. The carryover period for disallowed credits was extended
Use form FTB 3540, Credit Carryover and Recapture Summary, Part I,
by the number of taxable years the credits were not allowed.
to figure a prior year credit carryover of one or more repealed credits
that no longer have separate credit forms. Credit carryovers may
You do not need to complete this form if you file Schedule P (100,
not be carried back and applied against a prior year’s tax. The repeal
100W, 540, 540NR, or 541). However, complete this form if you are
dates have passed for the credits listed on this form, however, these
required to report a credit recapture on Part II.
credits have carryover provisions. You may claim these credits only if
B Assignment of Credits
carryovers are available from a prior year.
Note: Do not use form FTB 3540 to claim a Los Angeles Revitalization
Assigned Credits to Affiliated Corporations – For taxable years
beginning on or after July 1, 2008, credits earned by members of a
Zone (LARZ) Hiring Credit Carryover & Sales or Use Tax Credit
combined reporting group may be assigned to an affiliated corporation
Carryover (Code 159); Targeted Tax Area (TTA) Sales or Use Tax
Credit Carryover (Code 210); or Local Agency Military Base Recovery
that is a member of the same combined reporting group. A credit
Area (LAMBRA) Sales or Use Tax Credit Carryover (Code 198). Get
assigned may only be applied by the affiliated corporation against their
tax in a taxable year beginning on or after January 1, 2010.
forms FTB 3806, Los Angeles Revitalization Zone Business Booklet,
FTB 3809, Targeted Tax Area Business Booklet, and FTB 3807, Local
For more information, get form FTB 3544, Election to Assign Credit
Agency Military Base Recovery Area Business Booklet to determine the
Within Combined Reporting Group, or form FTB 3544A, List of
amount of credit carryover you may claim.
Assigned Credit Received and/or Claimed by Assignee or go to and search for credit assignment.
You must keep your old tax returns along with the appropriate
information to substantiate that you are entitled to the credits claimed
on this form. The FTB can request that information even on tax returns
FTB 3540 2014 Side 1
For Privacy Notice, get FTB 1131 ENG/SP.


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