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State of California Franchise Tax Board

Sales or Use Tax Credit - IDR Questions


We listed suggested questions to verify the credit or deduction claimed.  We may ask additional questions depending on facts and circumstances.

  1. A schedule supporting the Enterprise Zone Sales or Use Tax Credit as claimed on Form 3805Z [1]. The schedule needs to include the following information:
    1. A description of the property purchased.
    2. The date the property was placed in service.
    3. The purchase amount.
    4. The amount of sales or use tax paid on its purchase.
  2. A copy of Worksheet V: Apportionment for Enterprise Zones, used to compute form FTB 3805Z.
  3. For assets [identify universe or sample]:
    1. Copies of invoices and canceled checks for property purchased. 
    2. The location where it is used.
    3. If purchased from a manufacturer located outside of California, records to substantiate that property of comparable quality and price was not available for purchase in California.

[1] Local Agency Military Base Recovery Area (LAMBRA), Form 3807; Targeted Tax Area (TTA), Form 3809.

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