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Taxpayers that are members of a unitary group

Before the corporation completes Part II:

2. Does the credit have carryover provisions?

filing a combined report must separately compute

Yes

Enter the credit code, credit name,

• Complete Form 100W through line 24.

the NOL carryover or carryback and application

and credit amount in column (a) in the

• Figure the amount of credit(s) using a

of the NOL carryover or carryback for each

section indicated by the table. Enter ‑0‑

schedule or the credit form identified in the

corporation in the group (R&TC Section 25108).

in column (b). Enter the credit amount

Credit Table on the next page. Be sure to

in column (d). This is the amount of

NOL carryovers from pre‑water’s‑edge years are

attach the credit form or schedule to the tax

the credit the corporation may carry

limited to the lesser of the amount of NOL carryover

return, if applicable.

over and use in future years.

that would have resulted if a water’s‑edge election

To complete Part II:

Do not take the credit this year or in

had been in effect in the loss year, or the NOL

• Complete line 1 through line 3 to figure the

future years.

carryover as computed on a world‑wide basis

amount of excess tax the corporation may

under R&TC Section 24416.20(c).

Section A1 Instructions

offset by credits.

The amount carried over or carried back for AMT

Line 4 – If the corporation has the credit listed

• Identify in which section(s) of Part II the

is likely to differ from the amount (if any) that

in this section, complete column (a) through

corporation may take tax credit(s). Credits

is carried over or carried back for regular tax;

column (c). The corporation is allowed to

without carryover provisions are listed on

therefore, it is essential that the corporation retain

carryover the amount of the Prison Inmate

Schedule P (100W) in Section A1 and may be

adequate records for both AMT and regular tax.

Labor credit, that was disallowed due to the

taken only in that section. The corporation is

50% limitation for taxable years 2008 and 2009.

If the corporation had a loss from a farming

allowed to carryover the amount of the Prison

The carryover period for the disallowed credit

business due to Pierce’s disease, or from a

Inmate Labor credit that was disallowed due to

is extended by the number of taxable years the

business activity within an enterprise zone, the

the 50% limitation for taxable years 2008 and

credit was not allowed.

former Los Angeles Revitalization Zone, Local

2009. The carryover period for the disallowed

Agency Military Base Recovery Area, or the

credit is extended by the number of taxable

Section A2 Instructions

Targeted Tax Area, get form FTB 3805D, Net

years the credit was not allowed. Credits with

For taxable years beginning on or after

Operating Loss (NOL) Carryover Computation

carryover provisions are listed on the Credit

January 1, 2002, the credit for prior year AMT has

and Limitation ‑ Pierce’s Disease; FTB 3805Z,

Table on the next page. The table identifies the

to be applied before any credits that can reduce

Enterprise Zone Business Booklet; FTB 3806, Los

section(s) of Part II in which the corporation

the regular tax below the TMT in accordance with

Angeles Revitalization Zone Business Booklet;

may take these tax credits.

R&TC Section 23036(c).

FTB 3807, Local Agency Military Base Recovery

• If the corporation has credit(s) in Section B,

Line 5 through Line 9 – Follow the Credit Table

Area Business Booklet; or FTB 3809, Targeted Tax

be sure to complete line 10 in addition to the

Instructions on the next page to find out in

Area Business Booklet.

line(s) for the corporation’s credit(s).

which section to claim the credit. Then complete

• Complete column (a) through column (d) for

Line 9 and Line 10

column (a) through column (d) for each credit in

each line on which the corporation is taking a

The $40,000 exemption and the $150,000

each section before going to the next section.

credit. See “Column Instructions” below for

limitation apply to each corporation included in

Generally, it is to the corporation’s advantage

more information.

the combined report that has a filing requirement

• Once the corporation has completed Part II,

to apply credits with limited carryovers before

in California, to the extent that each corporation

credits with no limitation on the carryover.

see “How to Claim Credits” on the next page.

has AMTI.

However, the corporation may want to apply

Column Instructions – In column:

Line 16 – Banks and financial corporations

credits with no limitation on the carryover first if

Corporations with negative or zero taxable income

(a) Enter the amount of credit available to offset

that is more advantageous.

on Form 100W, line 23, enter ‑0‑.

tax.

Corporations may use these credits to reduce

(b) Figure the amount of credit the corporation is

Line 18 – Regular tax before credits

regular tax but not below TMT. The corporation

able to use this year by entering the smaller

For installment obligations subject to IRC

may be able to, if applicable, carry them over to

of the amount in column (a) or the amount in

Section 453(l)(2)(B) (Timeshares and Residential

future years. The credits that do not have shading

column (c) from the previous line.

Lots) and IRC Section 453A (Nondealer

in column (d) can be carried over to future years,

dispositions greater than $150,000), do not

if applicable, after reducing the regular tax down

offset by other credits by subtracting the

include tax increases for interest on the deferred

to TMT.

amount in column (b) from the balance in

tax liability.

Section B – Credits that may

column (c) of the previous line.

Line 19 – AMT

(d) Enter the amount of credit carryover available

reduce regular tax below TMT

If line 17 is more than zero, and if the corporation

to use in future years by subtracting the

has credits or credit carryovers, continue to

amount in column (b) from the amount in

Corporations may use these credits to reduce

Part II. Otherwise, stop here and enter the amount

column (a).

the regular tax below TMT. Corporations may

from line 19 on Form 100W, line 30.

also carry over to future taxable years any credits

Section A – Credits that reduce

Part II – Credits that Reduce

remaining after reducing the regular tax down

excess regular tax

to the minimum franchise tax, if applicable. But,

Tax

if the corporation has a tax balance and can

Section A Instructions

Complete Part II only if the corporation has tax

continue to use the credit in Section C, apply the

Line 3 – Subtract line 2 from line 1. If the amount

credits.

carryover in Section C.

is zero or less, continue to Question 1. If the

Use Part II to determine the following:

Section B Instructions

amount is greater than zero, go to the Section A1

• The amount of credit that may be used to

Line 11 through Line 14 – Follow the Credit

instructions.

offset tax.

Table Instructions on the next page to find out in

1. Does the Credit Table show that the

• The tax that may be offset.

which section to claim the credit. Then complete

corporation may take the credit only in

• The amount of credit, if any, that may be

column (a) through column (d) for each credit in

Sections A1 or A2?

carried over to future years.

each section before going to the next section.

Yes

Do not take the credit this year. Go to

• The order in which to claim credits, if the

question 2.

corporation has more than one credit to claim.

Go to Section B to figure the amount

Credits are applied against the tax on a separate

of credit the corporation may take this

entity basis. Unless otherwise provided by

year. Then continue to Section C if the

statutory authority, specific credits are only

corporation’s credit is listed in that

available to the corporation that incurred the

section.

expense that generated the credits.

Page 34 Form 100W Booklet 2013

Instructions For Schedule P (100w) - Alternative Minimum Tax And Credit Limitations-Water'S-Edge Filers - 2013 Page 4

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