TAXABLE YEAR
CALIFORNIA FORM
2012
3523
Research Credit
Attach to your California tax return.
SSN or ITIN or California corporation no.
FEIN
Name(s) as shown on return
California Secretary of State (SOS) file number
Part I Credit Computation. Read the instructions before completing this form.
Section A Regular Credit. Skip this section and go to Section B, Alternative Incremental Credit, if you are electing the alternative incremental credit.
Line 1 through line 4 are to be completed only by corporations (other than S corporations, personal holding companies, and service organizations).
Individuals, estates, trusts, partnerships, S corporations, and limited liability companies (LLCs), begin on line 5.
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1 Basic research payments paid or incurred during the taxable year. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
00
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2 Base period amount. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
00
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3 Subtract line 2 from line 1. If less than zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
00
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4 Multiply line 3 by 24% (.24) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
00
Qualified research expenses paid or incurred.
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5 Wages for qualified services. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
00
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6 Cost of supplies. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
00
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7 Rental or lease costs of computers. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
00
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8 Enter the applicable percentage of contract research expenses. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
00
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9 Total qualified research expenses. Add line 5 through line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
00
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10 Enter fixed-base percentage, but not more than 16% (.16). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
%
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11 Enter average annual gross receipts. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
00
12 Base amount. Multiply line 11 by the percentage on line 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
00
13 Subtract line 12 from line 9. If zero or less, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
00
14 Multiply line 9 by 50% (.50). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
00
15 Enter the smaller of line 13 or line 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
00
16 Multiply line 15 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
00
17 a Regular credit. Add line 4 and line 16. If you do not elect the reduced credit under IRC Section 280C(c), enter the
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result here, and see instructions for the schedule to attach. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17a
00
b Reduced regular credit under IRC Section 280C(c). Multiply line 17a by the applicable percentage below:
• 87.7% (.877) for individuals and estates or trusts
• 91.16% (.9116) for corporations
• 98.5% (.985) for S corporations
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Enter the reduced credit amount and write “Section 280C(c)’’ on the dotted line to the left of line 17b. . . . . . . . . . . . . . . . . .
17b
00
FTB 3523 2012 Side 1
7311123
For Privacy Notice, get form FTB 1131.