Form 3540 - California Credit Carryover And Recapture Summary

Code 185 – Orphan Drug Credit Carryover

Code 217 – Solar or Wind Energy System Credit Carryover

You may claim a credit carryover for expenses related to qualified

You may claim a credit carryover for the purchase and installation

clinical testing under former R&TC Sections 17057 and 23609.5, only

costs of a solar energy or wind energy system installed on California

if a carryover is available from taxable years 1987 through 1992.

property under former R&TC Sections 17053.84 and 23684, from

taxable years 2001 through 2005.

Code 184 – Political Contributions Credit Carryover

Limitation: The credit may be carried forward for up to eight years

(Individuals only)

from the year in which the credit was incurred, or until exhausted,

You may claim a credit carryover for political contributions you made

whichever occurs first.

prior to January 1, 1992, under former R&TC Section 17053.14, only if

Code 201 – Technological Property Contribution Credit

a carryover is available from taxable years 1987 through 1991.

Carryover (Corporations only)

The political contribution credit was the smaller of one of the following:

You may claim a credit carryover if you contributed technological

• 25% (.25) of the amount contributed.

property under former R&TC Section 23606, only if a carryover is

• $50 ($25 for married filing separately and single).

available from taxable years 1983 through 1984.

Code 174 – Recycling Equipment Credit Carryover

Code 178 – Water Conservation Credit Carryover

You may claim a credit carryover for the purchase of qualified

(Individuals, Estates, and Trusts only)

recycling equipment, which was certified by the California Integrated

You may claim a credit carryover for the costs of installing water

Waste Management Board, under former R&TC Sections 17052.14

conservation measures under former R&TC Section 17052.8, only if a

and 23612.5, only if a carryover is available from taxable years 1989

carryover is available from taxable years 1980 through 1982.

through 1993.

Code 161 – Young Infant Credit Carryover (Individuals only)

Code 186 – Residential Rental and Farm Sales Credit

Carryover (Individuals only)

You may claim a credit carryover for a dependent under 13 months

of age under former R&TC Section 17052.20, only if a carryover is

You may claim a credit carryover if you had a gain from the

available from taxable years 1991 through 1993.

sale of residential rental or farm property under former R&TC

Section 17061.5, only if a carryover is available from taxable years

D Limitations

1987 through 1991.

In general, a credit carryover cannot reduce the minimum franchise

Code 206 – Rice Straw Credit Carryover

tax (corporations and S corporations) and the annual tax (limited

partnerships, limited liability companies (LLCs) classified as

You may claim a credit carryover for the purchase of rice straw grown

partnerships, limited liability partnerships), the alternative minimum

in California under former R&TC Sections 17052.10 and 23610, only if

tax (corporations, exempt organizations, individuals, and fiduciaries),

a carryover is available from taxable years 1997 through 2007.

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

Limitation: The credit may be carried forward for up to ten years from

income tax (S corporations).

the year in which the credit was incurred, or until exhausted, whichever

Alternative Minimum Tax (AMT) may be reduced by the following

occurs first.

credit carryovers: solar energy credit, commercial solar energy credit

Code 171 – Ridesharing Credit Carryover (Pre-1989)

and the manufacturing investment credit (MIC). However, the MIC

carryover may only reduce the alternative minimum tax (AMT) for

You may claim a credit carryover for the cost of sponsoring a

corporations. Get Schedule P (100, 100W, 540, 540NR, or 541).

ridesharing program for your employees, or for operating a private,

third-party ridesharing program under former R&TC Sections 17053,

If the available credit carryover for the current taxable year exceeds

and 23605, only if a carryover is available from taxable years 1981

the current year tax, any unused amount may be carried over to

through 1986.

succeeding years unless the credit carryover period has expired. Apply

the carryover to the earliest taxable year possible.

Use Code 171 only for employer ridesharing credit carryovers from

pre-1989 taxable years. If you are claiming a credit carryover from

In no event can a credit carryover be carried back and applied against a

the employer ridesharing vehicle credit available in taxable years 1989

prior year’s tax.

through 1995, see codes 191 through 193 to determine which code to

Single Member LLC (SMLLC)

use.

If a taxpayer owns an interest in a disregarded business entity [a

single member limited liability company (SMLLC) not recognized

Code 200 – Salmon and Steelhead Trout Habitat Restoration

by California, and for tax purposes treated as a sole proprietorship

You may claim a credit carryover for the cost associated with salmon

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

and steelhead trout habitat restoration and improvement projects

amount received from the disregarded entity that can be utilized is

under former R&TC Sections 17053.66 and 23666, only if a carryover

limited to the difference between the taxpayer’s regular tax figured

is available from taxable years 1995 through 1999.

with the income of the disregarded entity, and the taxpayer’s regular

The credit amount is the lesser of 10% of qualified costs, or other

tax figured without the income of the disregarded entity.

amounts determined by the California Department of Fish and Game.

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

and is subject to statutory provisions that recognize otherwise

Code 180 – Solar Energy Credit Carryover

disregarded entities for certain tax purposes. Get Form 568, Limited

You may claim a credit carryover for the costs of installing solar

Liability Company Income Tax Booklet.

energy systems under former R&TC Sections 17052.5 and 23601, only

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

if a carryover is available from taxable years 1985 through 1988.

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

Code 179 – Solar Pump Credit Carryover

disregarded entity.

You may claim a credit carryover for the cost of installing a solar pump

system under former R&TC Sections 17052.1, 17052.4, 17052.8,

and 23607, only if a carryover is available from taxable years 1981

through 1983.

FTB 3540 Instructions 2014 Page 2

Form 3540 - California Credit Carryover And Recapture Summary - 2014 Page 3

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