Contents

2017 Instructions for Form FTB 3805Z

Enterprise Zone Businesses

References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and to the California Revenue and Taxation Code (R&TC).

What’s New

Principal Business Activity Codes

The Principal Business Activity Codes, located at the end of these instructions, have been updated and revised to reflect updates to the North American Industry Classification System (NAICS).

General Information

In general, for taxable years beginning on or after January 1, 2015, California law conforms to the Internal Revenue Code (IRC) as of January 1, 2015. However, there are continuing differences between California and federal law. When California conforms to federal tax law changes, we do not always adopt all of the changes made at the federal level. For more information, go to ftb.ca.gov and search for conformity. Additional information can be found in FTB Pub. 1001, Supplemental Guidelines to California Adjustments, the instructions for California Schedule CA (540 or 540NR), and the Business Entity tax booklets.

The instructions provided with California tax forms are a summary of California tax law and are only intended to aid taxpayers in preparing their state income tax returns. We include information that is most useful to the greatest number of taxpayers in the limited space available. It is not possible to include all requirements of the California Revenue and Taxation Code (R&TC) in the instructions. Taxpayers should not consider the instructions as authoritative law.

Enterprise Zone (EZ) Incentives Repealed

For taxable years beginning on or after January 1, 2014, taxpayers cannot generate the following EZ incentives:

  • Business Expense Deduction
  • Net Interest Deduction
  • Net Operating Loss

For taxable years beginning on or after January 1, 2014, taxpayers cannot generate any EZ Hiring Credit. However, qualified employees who are hired on or before December 31, 2013, by the qualified taxpayer within the EZ who paid or incurred qualified wages during the 60-month period immediately following the hire date, shall continue to qualify for the credit under this section for taxable years beginning on or after January 1, 2014.

For taxable years beginning on or after January 1, 2015, taxpayers cannot generate the EZ Sales or Use Tax Credit.

EZ Credits Carryover Period

The portion of any EZ sales or use tax credit or hiring credit remaining for carryover to taxable years beginning on January 1, 2014, shall be carried over only to the succeeding 10 taxable years if necessary, or until the credit is exhausted, whichever occurs first. Any hiring credits generated in the current taxable year for employees hired on or before December 31, 2013, and unusable in the current taxable year, may be carried over to the succeeding 10 taxable years.

Repeal of Geographically Targeted Economic Development Area Tax Incentives

The California legislature repealed and made changes to all of the Geographically Targeted Economic Development Area (G-TEDA) Tax Incentives. EZs and Local Agency Military Base Recovery Areas (LAMBRA) were repealed on January 1, 2014. The Targeted Tax Areas (TTA) and Manufacturing Enhancement Areas (MEA) both expired on December 31, 2012. For more information, go to ftb.ca.gov and search for repeal tax incentives.

EZ Incentives

Generally, no further EZ incentives can be generated after the expiration or repeal date. Any EZ credit carryover or EZ net operating loss carryover can continue to be utilized to the extent of tax on business income or business income attributable to the former EZ. For employers engaged in a trade or business in a former EZ, the hiring credit can be taken for qualified employees hired on or before the date of expiration or repeal of the EZ for the full five-year period of the hiring credit. However, the hiring credit may not be taken for any employees hired after the date of expiration or repeal of the EZ.

NASSCO AMT Reduction

The Board of Equalization ruled in the Appeal of NASSCO Holdings, Inc., 2010-SBE-001, November 17, 2010, that a corporate taxpayer may use EZ credits and/or the Manufacturing Investment Credit (MIC) to reduce corporate alternative minimum tax (AMT). Go to ftb.ca.gov and search for notice 2011-02 for additional information. However, the MIC carryover has expired. Therefore, corporate taxpayers can no longer use MIC carryover to offset against AMT.

Minimum Wage

For any employer who employs 25 or fewer employees, the California minimum wage is:

  • $10.00 per hour from January 1, 2017 through December 31, 2017.
  • $10.50 per hour from January 1, 2018 through December 31, 2018.

For any employer who employs 26 or more employees, the California minimum wage is:

  • $10.50 per hour from January 1, 2017 through December 31, 2017.
  • $11.00 per hour from January 1, 2018 through December 31, 2018.
Pass-Through Entities

For purposes of this booklet, the term “pass-through entity” refers to an S corporation, estate, trust, partnership, and a limited liability company (LLC). References to “partnerships” include LLCs classified as partnerships.

Single-Sales Factor Formula

R&TC Section 25128.7 requires all business income of an apportioning trade or business, other than an apportioning trade or business under R&TC Section 25128(b), to apportion its business income to California using the single-sales factor formula. For more information, get Schedule R, Apportionment and Allocation of Income, or go to ftb.ca.gov and search for single sales factor. However, business income apportioned to the EZ continues to be apportioned based on the property and payroll factors.

Assignment of Credit

Credit earned by members of a combined reporting group may be assigned to an affiliated corporation that is an eligible member of the same combined reporting group. A credit assigned may only be claimed by the affiliated corporation against its tax liability. For more information, see Schedule Z, Computation of Credit Limitations, on page 12, Assignment of Credit; or get form FTB 3544, Election to Assign Credit Within Combined Reporting Group; or form FTB 3544A, List of Assigned Credit Received and/or Claimed by Assignee; or go to ftb.ca.gov and search for credit assignment.

Introduction

Economic Development Area (EDA) Tax Incentives

California established four types of EDAs that have related tax incentives. These incentives have been established to stimulate growth and development in selected areas that were economically depressed. EDA tax incentives applied only to certain business transactions that were undertaken after an EDA had received final designation from the Housing and Community Development (HCD). Final designation was when the HCD designated an area to be an EDA. Tax incentives were available to individuals and businesses operating or investing within the geographic boundaries of the following EDAs:

  • Enterprise Zones (repealed on January 1, 2014)
  • Local Agency Military Base Recovery Areas (repealed on January 1, 2014)
  • Manufacturing Enhancement Areas (designation expired on December 31, 2012)
  • Targeted Tax Areas (designation expired on December 31, 2012)

Additional information on other EDAs can be found in the following Franchise Tax Board (FTB) tax booklets:

  • The LAMBRA tax incentives, FTB 3807, Local Agency Military Base Recovery Area Business Booklet.
  • The MEA hiring credit, FTB 3808, Manufacturing Enhancement Area Business Booklet.
  • The TTA tax incentives, FTB 3809, Targeted Tax Area Business Booklet.

References in this booklet to the “EZ” are interpreted as “the boundaries of the former EZ as it existed on December 31, 2013.”

Reporting Requirement

California statutes require the FTB to provide information to the California Legislature regarding the number of businesses using the EDA tax incentives, types of EDA tax incentives being used, and in which EDAs the businesses are claiming the tax incentives.

Complete items A through I on Side 1 of form FTB 3805Z, Enterprise Zone Deduction and Credit Summary, as applicable. This information will be used to meet the FTB’s statutory reporting requirement.

Purpose

This booklet provides specific information on the available EZ tax incentives. Taxpayers operating or investing in a trade or business located within a designated EZ may be eligible for the following credit and/or claim the following credit carryover and carryover deduction:

  • Hiring Credit
  • Sales or Use Tax Credit Carryover
  • NOL Carryover Deduction

Use this booklet to determine the correct amount of credits and deductions that a taxpayer may claim for operating or investing in a trade or business located within a designated EZ. Complete the worksheets in this booklet for each credit and deduction for which the business is eligible. Then enter the total credits and deductions on form FTB 3805Z.

Enterprise Zone Designation

EZs were established in California to provide tax incentives to businesses and allow private sector market forces to revive the local economy. The program offers special tax incentives to entities and individuals located in selected EZ areas and engaged in trades or businesses within the selected Standard Industrial Codes listed on page 19 of this booklet.

The areas listed below are the areas that have been officially designated as EZs.

Note: All EZs are repealed as of January 1, 2014.

Repealed zones
  • Anaheim
  • Arvin
  • Barstow
  • Calexico
  • Coachella Valley
  • Compton
  • Delano
  • Eureka
  • Fresno – City
  • Fresno – County
  • Harbor Gateway Communities
  • Hesperia
  • Imperial Valley
  • Kings County
  • Long Beach
  • Los Angeles – East (formerly Eastside)
  • Los Angeles – Hollywood
  • Merced (formerly Merced/Atwater)
  • Oakland
  • Oroville
  • Pasadena
  • Pittsburg-Bay Point
  • Richmond
  • Sacramento
  • Salinas Valley
  • San Bernardino (formerly Agua Mansa)
  • San Diego
  • San Francisco
  • San Joaquin (formerly Stockton)
  • San Jose
  • Santa Ana
  • Santa Clarita Valley
  • Sequoia Valley
  • Shasta Metro (formerly Redding/Anderson)
  • Siskiyou County (formerly Shasta Valley)
  • Southgate – Lynwood
  • Stanislaus (including Ceres, Modesto, Turlock and Stanislaus County)
  • Taft
  • West Sacramento
  • Yuba/Sutter
Expired zones
  • Altadena/Pasadena
  • Antelope Valley
  • Bakersfield/Kern (formerly SE Bakersfield)
  • Lindsay
  • Los Angeles – Central City
  • Los Angeles – Harbor Area
  • Los Angeles – Mid-Alameda Corridor
  • City of Lynwood
  • Los Angeles – Northeast Valley
  • Madera
  • Pittsburg
  • Porterville
  • Sacramento – Army Depot
  • Sacramento – Florin Perkins
  • San Diego – South Bay
  • San Diego – Metro
  • San Francisco
  • Shafter
  • Watsonville

For business eligibility or zone related information, including questions regarding EZ geographic boundaries and designation period dates, contact the HCD at hcd.ca.gov and search for directory of zone contacts to find Directory of Economic Development Areas.

For information that is zone-specific but not tax-specific, you may contact the HCD. See page 23 for the HCD contact information.

Important Considerations

In general, EZ tax incentives applied only to investments and business activities undertaken within the EZ after the zone received final designation and before the designation expired or was repealed. The taxpayer could also claim the incentives when the zone received conditional designation.

Who Can Claim the EZ Tax Incentives?

The EZ credits and deductions are available to individuals, sole proprietors, corporations, estates, trusts, and partnerships operating or investing in a trade or business located within a designated EZ.

Forms List

The titles of forms referred to in this booklet are:

Form 100
California Corporation Franchise or Income Tax Return
Form 100S
California S Corporation Franchise or Income Tax Return
Form 100W
California Corporation Franchise or Income Tax Return – Water’s-Edge Filers
Form 109
California Exempt Organization Business Income Tax Return
Form 540
California Resident Income Tax Return
Long Form 540NR
California Nonresident or Part-Year Resident Income Tax Return
Form 541
California Fiduciary Income Tax Return
Form 565
Partnership Return of Income
Form 568
Limited Liability Company Return of Income
Schedule CA (540)
California Adjustments – Residents
Schedule CA (540NR)
California Adjustments – Nonresidents or Part-Year Residents
Schedule P (540)
Alternative Minimum Tax and Credit Limitations – Residents
Schedule P (540NR)
Alternative Minimum Tax and Credit Limitations – ­Nonresidents and Part-Year Residents
Schedule R
Apportionment and Allocation of Income
FTB Pub. 1061
Guidelines for Corporations Filing a Combined Report
Schedule C (100S)
S Corporation Tax Credits
Schedule D-1
Sales of Business Property
Schedule K-1 (100S)
Shareholder’s Share of Income, Deductions, Credits, etc.
Schedule K-1 (541)
Beneficiary’s Share of Income, Deductions, Credits, etc.
Schedule K-1 (565)
Partner’s Share of Income, Deductions, Credits, etc.
Schedule K-1 (568)
Member’s Share of Income, Deductions, Credits, etc.
FTB 3544
Election to Assign Credit Within Combined Reporting Group
FTB 3544A
List of Assigned Credit Received and/or Claimed by Assignee
How to Claim Deductions and Credits

To claim any EZ deduction or credit, attach a completed form FTB 3805Z to the ­California tax return.

Attach a separate form FTB 3805Z for each EZ business operating or investing within a designated EZ and for each EZ in which the business operates. Also complete the following schedule and/or worksheets:

  • Corporations, complete Schedule Z and all the worksheets, except for Worksheet II, Income or Loss Apportionment, Section B.
  • Sole proprietors, complete Schedule Z and all the worksheets.
  • Trusts, estates, and partnerships, complete Worksheet IA Hiring Credit and Recapture, and Worksheet II, Section A.
  • Individual investors receiving pass-through EZ credits, complete Worksheet II, Section B and Schedule Z. All other investors complete Worksheet II, Section A and Schedule Z.
  • Individual investors receiving a pass-through loss, and having an overall NOL, complete Worksheet II, Section B and Worksheet III, Computation of NOL Carryover and Carryover Limitations. All other investors complete Worksheet III.

Schedule Z is on Side 2 of form FTB 3805Z.

To assist with the processing of the tax return, indicate that the business operates or invests within an EZ by doing the following:

Form 540 filers:
Claim EZ tax incentives on Form 540, lines 43 through 45, as applicable.
Long Form 540NR filers:
Claim EZ tax incentives on Long Form 540NR, lines 58 through 60, as applicable.
Form 100 filers:
Claim EZ tax incentives on Form 100, line 20, lines 24 through 26, as applicable.
Form 100S filers:
Claim EZ tax incentives on Form 100S, line 18, lines 22 through 24 as applicable.
Form 100W filers:
Claim EZ tax incentives on Form 100W, line 20, lines 24 through 26, as applicable.
Form 109 filers:
Check the “Yes” box for Question I at the top of Form 109, Side 1.

Keep all completed worksheets and supporting documents for your records.

Form FTB 3805Z – Instructions for Items A through I

For corporations, estates, trusts, exempt organizations, and sole proprietors, who operate a business in the EZ, complete items A through I.

Investors of pass-through entities, complete items A through D.

Standard Industrial Classification (SIC) and Principal Business Activity (PBA) Codes

The PBA codes are based on the North American Industry Classification System published by the United States Office of Management and Budget. The PBA codes are listed on page 20 through page 22 of this booklet. Enter the PBA code of your principal activities on form FTB 3805Z, Side 1.

For purposes of qualifying for the Long Beach EZ hiring credit, use the SIC codes listed on page 19. For the Long Beach EZ, enter the SIC code of the establishment that qualifies you to take this credit on form FTB 3805Z, Side 1. If your trade or business has more than one establishment, and if more than one of them qualifies you to take this credit, enter the SIC code that best represents your primary qualifying establishment.

Part I – Credits and Recapture

Line 1a – Hiring Credit

Note: All EZs are repealed as of January 1, 2014.

For employers engaged in a trade or business in a former (expired) or repealed EZ, the hiring credit can be taken for qualified employees hired on or before December 31, 2013, for the full 60-month period of the hiring credit. The hiring credit may not be taken for any employees hired on or after January 1, 2014. Hiring credits and carryovers may still be claimed to the extent of business income apportioned to the former expired or repealed EZ. The portion of any credit remaining for carryover to taxable years beginning on or after January 1, 2014, shall be carried over only to the succeeding 10 taxable years if necessary, or until the credit is exhausted, whichever occurs first. Any hiring credits generated in the current taxable year for employees hired on or before December 31, 2013, and unusable in the current taxable year, may be carried over to the succeeding 10 taxable years.

Employers hiring qualified employees, were required to obtain VoucherCert 10-07 from the local agency responsible for verifying employee eligibility on or before December 31, 2014. Do not file VoucherCert 10-07 with your tax return. Keep the voucher for your records. For vouchering questions, go to hcd.ca.gov and search for vouchering.

Employers engaged in a trade or business within an EZ may claim the hiring credit for a qualified employee. A qualified employee is an individual who meets all of the following:

  • Was hired after the EZ received its final designation and before the designation expired.
  • Spends at least 90% of work time for the qualified employer on activities directly related to the conduct of a trade or business located within an EZ.
  • Performs at least 50% of the work for the qualified employer within the boundaries of the EZ.
  • Qualifies for the former program area hiring credit or meets any of the following at the time of hire:
    1. A person receiving or eligible to receive subsidized employment, training, or services funded by the federal Job Training Partnership Act (JTPA) or its successor.
    2. A person eligible to be a voluntary or mandatory registrant under the Greater Avenues for Independence Act of 1985 (GAIN) or its successor.
    3. A member of a targeted group as ­defined in the federal Work ­Opportunity Tax Credit.
    4. An economically disadvantaged individual 14 years of age or older.
    5. A qualified dislocated worker.
    6. A disabled individual eligible for, enrolled in, or who completed a state rehabilitation plan.
    7. A service-connected disabled veteran.
    8. A veteran of the Vietnam era.
    9. A veteran who recently separated from military service.
    10. An ex-offender.
    11. A person eligible for, or a recipient of any of the following:
      • Federal Supplemental Security Income (SSI) benefits.
      • Aid to Families with Dependent Children (AFDC).
      • Supplemental Nutrition Assistance Program (SNAP).
      • State and local general assistance.
    12. A Native American.
    13. A resident of a targeted employment area (TEA).

For more information, refer to the federal JTPA or its successor, the Workforce Investment Act (WIA).

The percentage of wages used to compute the credit depends on the number of years the employee works for the employer in the EZ. The applicable percentage begins at 50% and declines 10% for each year of employment. After the fifth year of employment, no credit can be generated.

Wages that qualify for the hiring credit are those wages paid to a qualified employee for the consecutive 60-month period beginning on the first date the employee commenced employment with the employer. For this purpose, commencement of employment or the hire date is the first day of employment for which the individual receives wages/compensation. For an employer that operates a business that has regularly occurring seasonal or intermittent employment decreases and increases, reemployment of an individual is not a new hire; rather, it is a continuation of the prior employment and does not constitute commencement of employment for the qualified wages test.

The credit is based on the smaller of the following:

  • The actual hourly rate paid or incurred by the employer for work performed by the employee during the taxable year.
  • 150% of the minimum hourly wage established by the Industrial Welfare Commission.

Where the ­California minimum wage is higher than the federal minimum wage, the ­California minimum wage is used for purposes of computing the EZ hiring credit.

The California minimum wage were $8 per hour prior to July 1, 2014; $9.00 per hour from July 1, 2014 through December 31, 2015; and $10.00 per hour beginning on and after January 1, 2016.

For any employer who employs 25 or fewer employees, the California minimum wage is $10.00 per hour from January 1, 2017 through December 31, 2017. For purposes of computing the EZ hiring credit, 150% of the minimum wage is $15 per hour. For more information in regard to the California minimum wage, see General Information.

For purpose of the example below, the minimum wage prior to July 1, 2014, was $8.00 per hour. For purposes of computing the EZ hiring credit, 150% of the minimum wage was $12.00 per hour.

Example:

John Anderson was hired on January 1, 2013. John’s hourly rate for the first month was the minimum wage of $8.00. At the beginning of the second month, his hourly rate increased to $9.00. In the third month, John’s hourly rate increased to $13.00. The hourly rate that qualifies for the credit is limited to 150% of the minimum wage, or $12.00 per hour. The amount of qualified wages is computed as follows:

Month(s) Hours per month × Hourly rate allowed = Qualified wages per month
1 175 $8.00 $1,400.00
2 170 $9.00 $1,530.00
3 170 $12.00 $2,040.00
Long Beach Enterprise Zone

The percentage of wages on which the hiring credit is based increased for taxpayers engaged in aircraft manufacturing activities (described in Codes 3721, 3724, 3728, and 3812 of the Standard Industrial Classification Manual, 1987 Edition, published by the United States Office of Management and Budget). See page 19 for a list of qualified SIC codes. Qualified wages for purposes of the hiring credit for such aircraft manufacturers located in the Long Beach EZ, for up to a maximum of 1,350 qualified employees, are based on the smaller of the following:

  • The actual hourly rate paid or incurred by the employer for work performed by the employee during the taxable year.
  • The rates (based on the time qualified wages are paid or incurred) which represent 202% of the minimum hourly wage.

For any employer who employs 25 or fewer employees, the California minimum wage is $10.00 per hour from January 1, 2017 through December 31, 2017. For purposes of computing the EZ hiring credit, 202% of the minimum wage is $20.20 per hour.

Example:

John Anderson was hired on January 1, 2013. John’s hourly rate for the first month was $9.00. At the beginning of the second month, his hourly rate increased to $11.00. In the third month, John’s hourly rate increased to $16.50. The hourly rate that qualifies for the credit is limited to 202% of the minimum wage, or $16.16 per hour. The amount of qualified wages is computed as follows:

Month(s) Hours per month × Hourly rate allowed = Qualified wages per month
1 175 $9.00 $1,575.00
2 170 $11.00 $1,870.00
3 170 $16.16 $2,747.20
Record Keeping

Retain a copy of Form VoucherCert 10-07 and the documentation given to the vouchering agency. In addition, for each qualified employee, keep a schedule for the first 60 months of employment showing (at least):

  • Employee’s name.
  • Date the employee was hired.
  • Number of hours the employee worked for each month of employment.
  • Smaller of the hourly rate of pay for each month of employment or 150% (or 202%, if applicable) of the minimum wage.
  • Location of the employee’s job site and duties performed.
  • Records of any other federal or state subsidies received for hiring the qualified employee.
  • Total qualified wages per month for each month of employment.
Line 1b – Hiring Credit Recapture

Recapture the amount of credit attributable to an employee’s wages if the employer terminates the employee at any time during the longer of either of the following:

  • The first 270 days of employment (whether or not consecutive).
  • 90 days of employment plus 270 calendar days.

Employers of seasonal employees recapture the amount of hiring credit attributable to the employee’s wages if both of these apply:

  • The employer terminates the employee before the completion of 270 days of employment.
  • The 270 days is during the 60-month period beginning the day the employee commences employment with the employer.

A “day of employment” means any day the employee receives wage compensation (including a paid sick day, holiday, or vacation day).

The employer adds to the current year’s tax the amount of credit claimed in the year of termination and all prior years in which the credit was claimed for the terminated employee.

The credit recapture does not apply if the termination of employment was any of the following:

  • Voluntary on the part of the employee.
  • In response to misconduct of the ­employee as defined in Cal. Code Regs., tit. 22, sections 1256-30 to 1256-43.
  • Caused by the employee becoming disabled (unless the employee was able to return to work and the employer did not offer to reemploy the individual).
  • Carried out so that other qualified individuals could be hired, creating a net increase in both the number of qualified employees and the number of hours worked.
  • Due to a substantial reduction in the employer’s trade or business operations.

Instructions for Worksheet IA – Hiring Credit and Recapture

Section A – Credit Computation
Line 1, column (a)

Enter the name of each qualified employee. Attach additional schedule(s) if necessary.

Line 1, column (b) through column (f)

Enter in the appropriate columns the qualified wages paid or incurred during the taxable year to each qualified employee listed in column (a).

Example: If you are a 2014 calendar year taxpayer and you hired an employee on June 1, 2013, enter the total qualified wages paid to the employee for the period beginning January 1, 2014, and ending May 31, 2014, in column (b). You would enter the total qualified wages paid to the employee for the period beginning June 1, 2014, and ending December 31, 2014, in column (c).

(a)
Employee name
(b)
1st 12 months
(c)
2nd 12 months
John Doe Amount of qualified wages earned from 1/1/14 to 5/31/14. Amount of qualified wages earned from 6/1/14 through 12/31/14.

The qualified wages from June 1, 2013 to December 31, 2013, were put in column (b) on the 2013 worksheet.

The credit computation is based on a 12 month period beginning with the employee’s hiring date.

Line 2, column (b) through column (f)

Add the amounts in each column.

Line 3, column (b) through column (f)

Multiply the total in each column of line 2 by the percentage in each column.

Line 5

The following credits reduce the EZ hiring credit in the taxable year these credits are accrued. Use the following worksheet to determine the amount to enter on this line.

Credit

  1. LAMBRA Hiring Credit
  2. Enter the amount here if for the 2017 taxable year you claimed the Federal Work Opportunity Tax Credit for employees hired on or after January 1, 2010, and before August 31, 2011 (excluding unemployed veterans and disconnected youths as described in IRC Section 51(d)(14)).
  3. Total: Add line 1 and line 2. Enter on Worksheet IA, Section A, line 5

No other California jobs tax credit may be claimed for the same wage expense paid to employees shown in line 1, column (a).

Line 6
  1. For partnerships, enter the amount from line 6 on form FTB 3805Z, Side 1, Part I, line 1a. Include the current year hiring amount on Forms 565 and 568, Schedule K, line 15f and the distributive share of the credit to partners and members on Schedule K-1, line 15f. In addition, add the entire amount of the credit on Schedule K, line 1, column (c).
  2. For corporations, individuals, estates, and trusts, enter the amount from line 6 on Schedule Z, as follows:
    • Part II, line 8B, column (b) for ­corporations, individuals, estates, and trusts.
    • Part III, line 10, column (b) for S corporations.
    • Part IV, line 12, column (b) for ­corporations and S corporations subject to paying only the minimum franchise tax.

Important: Affiliated corporations that received credits assigned under R&TC Section 23663, do not include the assigned credits received on this worksheet. Those credits are entered and tracked on form FTB 3544A.

Credit Limitations
  • Businesses reduce any deduction for wages by the amount of the hiring credit.
  • S corporations are allowed only 1/3 of the EZ hiring credit by operation of law. S corporations reduce their wage deduction by 1/3 of the amount on Worksheet IA, Section A, line 6. Make the wage deduction adjustment on Form 100S, line 7. In addition, add back the entire amount of the credit on Form 100S, Schedule K, line 1, column (c).

    Example: In 2017, an S corporation qualified for a $3,000 EZ hiring credit. S corporations can claim only 1/3 of the credit ($3,000 x 1/3 = $1,000). Therefore, the S corporation must reduce its wage deduction by $1,000. On Form 100S, Schedule K, line 1, column (c), the S corporation would add $3,000 to its ordinary income or loss to reflect the credit passed through to the shareholder(s).

  • The amount of hiring credit claimed may not exceed the amount of tax on the EZ business income in any year. Use Schedule Z to compute the credit ­limitation.
  • In the case where the wage expense qualifies the business to take the EZ hiring credit as well as the LAMBRA, MEA, or TTA hiring credit, the business may claim only one credit.
  • The portion of any credit remaining for carryover to taxable years beginning on or after January 1, 2014, shall be carried over only to the succeeding 10 taxable years if necessary, or until the credit is exhausted, whichever occurs first. In the case of an S corporation, 1/3 of the credit can be carried over if it cannot be used in the current year. The remaining 2/3 must be disregarded and may not be carried over.

For additional information about the treatment of credits for S corporations, see instructions for Schedule Z.

Section B – Credit Recapture
Line 1, column (a)

Enter the name of the terminated employee. Attach additional schedule(s) if necessary.

Line 1, column (b)

Enter the amount of credit recapture for each employee listed in column (a).

Line 2

Enter the amount from line 2, column (b) on form FTB 3805Z, Side 1, Part I, line 1b.

Also, include the amount of hiring credit recapture on your ­California tax return or schedule as follows:

  • Form 100, Schedule J, line 5.
  • Form 100S, Schedule J, line 5 and Schedule K-1 (100S), line 17d.
  • Form 100W, Schedule J, line 5.
  • Form 109, Schedule K, line 4.
  • Form 540, line 63.
  • Long Form 540NR, line 73.
  • Form 541, line 37 and Schedule K-1 (541), line 14d.
  • Form 565, Schedule K, line 20c and Schedule K-1 (565), line 20c.
  • Form 568, Schedule K, line 20c and Schedule K-1 (568), line 20c.

Indicate that you included the hiring credit recapture on your tax return by writing “FTB 3805Z” in the space provided or next to the line on the schedule or form.

Partnerships identify the recapture amounts for partners and members on Schedule K-1 (565 or 568).

S corporation shareholders recapture the portion of credit that was previously claimed, based on the terminated employee’s wages. In addition, identify the recapture amount for shareholders on Schedule K-1 (100S). This amount will differ from the amount recaptured by the S corporation on Form 100S, Schedule J.

Line 1c – Sales or Use Tax Credit Carryover

All EZs are repealed as of January 1, 2014. For taxable years beginning on or after January 1, 2015, taxpayers cannot generate any sales or use tax credit. However, taxpayers can claim the EZ sales or use tax credit carryover from previous years to the extent of the amount of tax on the business income apportioned to the former EZ. The portion of any credit remaining for carryover to taxable years beginning on or after January 1, 2014 shall be carried over only to the succeeding 10 taxable years if necessary, or until the credit is exhausted, whichever occurs first.

Worksheet IA: Hiring Credit and Recapture – Enterprise Zones

Section A: Credit Computation

You cannot take the EZ hiring credit and another credit for the same wage expense.

  1.   Qualified wages paid or incurred for year of employment
    (a)
    Employee’s name
    (b)
    1st year
    (c)
    2nd year
    (d)
    3rd year
    (e)
    4th year
    (f)
    5th year
               
               
               
               
  2. Total. See instructions: (b) 1st year, (c) 2nd year, (d) 3rd year, (e) 4th year, (f) 5th year
  3. Multiply line 2 by the percentage for each column. See instructions: (b) 1st year: .50, (c) 2nd year: .40, (d) 3rd year: .30, (e) 4th year: .20, (f) 5th year: .10
  4. Add the amounts on line 3, column (b) through column (f)
  5. Enter the total amount of 2017 California and federal jobs tax credits allowed. See instructions.
  6. Subtract the amount on line 5 from the amount on line 4 and enter the result here. See instructions.
Section B: Credit Recapture
  1. (a)
    Terminated employee’s name
    (b)
    Recapture amount
       
       
  2. Total amount of credit recapture. Add the amount in column (b). See instructions for where to report on your California tax return.

Part II – Portion of Business Attributable to the Enterprise Zone

EZ tax credits are limited to the tax on business income attributable to operations within the EZ. EZ deductions are limited to business income attributable to operations within the EZ. If the business is located within and outside an EZ, or in more than one EZ, determine the portion of total business operations that are attributable to each EZ. Each taxpayer must complete one form FTB 3805Z for each zone, and therefore, must also compute the income limitation for each one.

For taxpayers operating in an expired EZ, any EZ credit or NOL carryover can be utilized to the extent of business income apportioned to the former EZ.

Business Income vs. Nonbusiness Income

Only business income is apportioned to the EZ to determine the incentive limitation.

Business income is defined as income arising from transactions and activities in the regular course of the trade or business. Business income includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the regular trade or business operations. Nonbusiness income is all income other than business income. See Cal. Code Regs., tit. 18 section 25120 for further references and examples of nonbusiness income.

For corporations and entities doing business in and outside of the enterprise zone, use Worksheet II, Section A, to determine the EZ apportionment factor to determine the amount of business income attributable to the Enterprise Zone.

Pass-through entities report to their shareholders, beneficiaries, partners, and members the following:

  1. The distributive (or pro-rata for S corporations) share of the business income apportioned to the EZ.
  2. The distributive (or pro-rata for S corporations) share of the business capital gains and losses apportioned to the EZ included in item 1.
  3. The distributive (or pro-rata for S corporation) share of the EZ property and payroll to corporate partners, members, shareholders, beneficiaries.

Report these items as other information on Schedule K-1 (100S, 541, 565 or 568.)

For an individual, use Worksheet II, Section B to determine business income attributable to the EZ. Business income includes but is not limited to California business income or loss from federal Form 1040 (Schedule C, Profit or Loss from Business (Sole Proprietorship); Schedule D, Capital Gains and Losses; Schedule E, Supplemental Income and Loss; Schedule F, Profit or Loss from Farming); and California Schedule D-1, Sales of Business Property (or federal Form 4797, Sales of Business Property, if California Schedule D-1 is not needed), as well as wages. Be sure to include casualty losses, disaster losses, and any business deductions reported on federal Form 1040, Schedule A as itemized deductions.

Generally, all income which arises from the conduct of trade or business operations of a taxpayer is business income.

If you elected to claim part or all of your current year disaster loss under IRC Section 165(i)(1) on prior year’s tax return, do not include the amount of the loss that was claimed on prior year’s tax return in your current year business income from the EZ.

Apportionment

Business income is apportioned to an EZ by multiplying the total California business income of the taxpayer by a fraction. The numerator is the property factor plus the payroll factor, and the denominator is two. Loss is apportioned to an EZ by multiplying the taxpayer’s total overall business loss by a fraction. If a taxpayer conducts businesses in more than one EZ, the EZ apportionment factor and credit limitations are computed separately for each EZ.

Property Factor

Property is defined as the average value of all real and tangible personal property owned or rented by the business and used during the taxable year to produce business income.

Property owned by the business is valued at its original cost. Original cost is the basis of the property for federal income tax purposes (prior to any federal adjustment) at the time of acquisition by the business, adjusted for subsequent capital additions or improvements and partial dispositions because of sale or exchange. Allowance for depreciation is not considered.

Rented property is valued at eight times the net annual rental rate. The net annual rental rate for any item of rented property is the total rent paid for the property, less total annual subrental rates paid by subtenants.

Payroll Factor

Payroll is defined as the total amount paid to the business’s employees as compensation for the production of business income during the taxable year.

Compensation means wages, salaries, commissions, and any other form of remuneration paid directly to employees for personal services.

Payments made to independent contractors or any other person not properly classified as an employee are excluded.

Compensation Within the Enterprise Zone

Compensation is considered to be within the EZ if any of the following tests are met:

  1. The employee’s services are performed within the geographical boundaries of the EZ.
  2. The employee’s services are performed within and outside the EZ, but the services performed outside the EZ are incidental to the employee’s service within the EZ.

    Incidental means any temporary or transitory service performed in connection with an isolated transaction.

  3. If the employee’s services are performed within and outside the EZ, the employee’s compensation is attributed to the EZ if any of the following items are met:
    1. The employee’s base of operations is within the EZ.
    2. There is no base of operations in any other part of the state in which some part of the service is performed, and the place from which the service is directed or controlled is within the EZ.
    3. The base of operations or the place from which the service is directed or controlled is not in any other part of the state in which some part of the service is performed and the employee’s residence is within the EZ.

      Base of operations is the permanent place from which employees start work and customarily return in order to receive instruction from the taxpayer or communications from their customers or persons; to replenish stock or other material; to repair equipment; or to perform any other functions necessary in the exercise of their trade or profession at some other point or points.

Corporations Filing a Combined Report

When determining the income attributable to the EZ, the business income of each corporation doing business in the EZ is the business income apportioned to California as determined under combined report mechanics. For more information on combined reports, get FTB Pub. 1061. Each corporation computes the income attributable to the EZ by multiplying California business by EZ apportionment factor computed in Worksheet II, Section A. The EZ property and payroll factors used to determine the EZ income includes only the taxpayer’s California amounts in the ­denominator. Each corporation doing business in the EZ compute the business income attributable to the EZ according to their own apportioned California business income and interstate apportionment factors.

Example: Computation of EZ income assigned to each entity operating within the EZ

Parent corporation A has two subsidiaries, B and C. Corporations A and B operate within an EZ. The combined group operates within and outside California and apportions its income to California using Schedule R. Assume the combined group’s business income apportioned to California was $1,000,000 and Corporation A’s and B’s share of business income assigned to California is $228,000 and $250,000 respectively. Corporation A’s and B’s separate EZ and separate California property and payroll factor amounts are shown as follows.

Business income apportioned to the EZ was determined as follows:

  A. B.
Property Factor
EZ property $1,000,000 $800,000
California property $1,000,000 $1,200,000
Apportionment % 100% 66.66%
Payroll Factor
EZ payroll $800,000 $800,000
California payroll $800,000 $1,000,000
Apportionment % 100% 80%
Average Apportionment %

(Property + Payroll Factors) ÷ 2

100% 73.33%
Apportioned Business Income $228,000 $250,000
EZ business income $228,000 $183,325

Instructions for Worksheet II – Income or Loss Apportionment

Section A – Income Apportionment

Use Worksheet II, Section A, Income Apportionment, to determine the amount of business income apportioned to the EZ.

If the business operates solely within a single EZ and all its property and payroll are solely within that single EZ, enter 100% (1.00) on Section A, line 4, column (c). Do not complete the rest of Worksheet II. The apportioned EZ business income determines the amount of the tax incentives that can be used. A taxpayer’s EZ business income is its California business income multiplied by the specific EZ apportionment percentage computed in Worksheet II, Section A.

Property Factor

When determining the income apportioned to the EZ, the numerator of the property factor is the average value of the real and tangible personal property owned or rented by the business and used within the EZ during the taxable year to produce EZ business income. See Worksheet II, Section A, column (b). The denominator of the property factor is the total average value of all the taxpayer’s real and tangible personal property owned or rented and used during the taxable year within California. See Worksheet II, Section A, column (a).

Payroll Factor

When determining income apportioned to the EZ, the numerator of the payroll factor is the taxpayer’s total compensation paid to the employees for working within the EZ during the taxable year. See Worksheet II, Section A, column (b). The denominator of the payroll factor is the taxpayer’s total compensation paid to employees working in California. See Worksheet II, Section A, column (a).

The average apportionment percentage shown on line 4 represents the portion of the taxpayer’s total business that is attributable to activities conducted within the EZ. Factors with zero balances in the totals of column (a) will not be included in the computation of the average apportionment percentage. For example, if the taxpayer does not have any payroll within or outside the EZ, the average apportionment percentage would be computed by dividing line 3 by one instead of by two as normally instructed.

Section B – Income or Loss Apportionment

Form 540 and Long Form 540NR filers, use Worksheet II, Section B to determine the amount to enter on the following:

  • Worksheet III, line 1 and line 6
  • Schedule Z, Part I, line 1 and line 3

Do not include disaster losses in any amounts used in the table.

Only California source business income is apportioned to the EZ. A taxpayer’s EZ business income is its California apportioned business income computed using Schedule R, multiplied by the specific EZ apportionment percentage computed using Worksheet II, Section A.

Determine which portion of the taxpayer’s net income is “business income” and which portion is “nonbusiness income.” Only business income is apportioned to the EZ. See Part II, Portion of Business Attributable to the Enterprise Zone instructions, for a complete discussion of business and nonbusiness income.

Part I – Individual Income and Expense Items

Wages

Taxpayers with wages from a company located within and outside an EZ determine the EZ wage income by entering the percentage of the time that they worked within the EZ in column (b). The percentage of time should be for the same period for which the wages entered on line 1 were earned. Determine this percentage based on their record of time and events such as a travel log or entries in a daily planner.

Part II – Pass-Through Income or Loss

Individuals with a Schedule K-1

The individual partner, member, or shareholder completes Worksheet II, Section B, Part II, Pass-Through Income or Loss, and Schedule Z, Computation of Credit Limitation.

Multiple Pass-Through Entities

If you are a shareholder, beneficiary, partner, or member of multiple pass-through entities located in the same enterprise zone, see the example for computing your enterprise zone business income.

Example:

Pass-through entity Trade or business income from Schedule K-1 (100S, 541, 565, or 568) Entity’s EZ apportionment percentage EZ apportioned income
ABC, Inc. $40,000 80% $32,000
A, B, & C 30,000 10% 3,000
ABC, LLC 10,000 50% 5,000
Total     $40,000
Part III – Taxpayer’s Trade or Business

Business Income or Loss

Use business income or loss from federal Form 1040 Schedules C, C-EZ, E, and F, plus California adjustments from Schedule CA (540 or 540NR) for each trade or business. Also include business capital gains and losses from Schedule D and business gains and losses from California Schedule D-1 (or federal Form 4797, if California Schedule D-1 is not needed) as adjusted on Schedule CA (540 or 540NR).

Income Computation

Located Entirely Within the Enterprise Zone

Line 6 – Line 9: If your business operation reported on federal Form 1040 Schedule C, C-EZ, E, F, or other schedule is entirely within the EZ, enter the income or loss from this activity in column (a), and enter 1.00 in column (b).

Line 11 and Line 12: If the gain or loss reported on Schedule D or Schedule D-1 as adjusted on Schedule CA (540 or 540NR) was attributed to an asset used in an activity conducted entirely within the EZ, enter the gain or loss reported in column (a), and enter 1.00 in column (b).

Located Entirely Within California

Line 6 – Line 9: If your business operation reported on federal Form 1040 Schedule C, C-EZ, E, F, or other schedule is entirely within California, enter the income or loss from this activity in column (a). To determine the apportionment percentage in column (b), complete Worksheet II, Section A. Enter the percentage from Worksheet II, Section A, line 4, column (c) on Worksheet II, Section B, column (b).

Line 11 and Line 12: If the gain or loss reported on Schedule D or Schedule D-1 as adjusted on Schedule CA (540 or 540NR) was attributed to an asset used in an activity conducted entirely within California, enter the gain or loss reported in column (a). To determine the apportionment percentage in column (b), complete Worksheet II, Section A. Enter the percentage from Worksheet II, Section A, line 4, column (c) on Worksheet II, Section B, column (b).

Located Within and Outside the Enterprise Zone and California

Line 6 – Line 9: If your business operation reported on federal Form 1040 Schedule C, C-EZ, E, F, or other schedule is within and outside the EZ and California, get California Schedule R and complete line 1 through line 18b and line 28 through line 31. Enter the amount on Schedule R, line 18b and line 31 in column (a) of this worksheet. To determine the apportionment percentage in column (b), complete Worksheet II, Section A. Enter the percentage from Worksheet II, Section A, line 4, column (c) on Worksheet II, Section B, column (b).

When computing Schedule R, disregard any reference to Forms 100, 100S, 100W, 100X, 565, or 568. Also disregard any reference to Schedules R-3, R-4, or R-5.

Nonresidents that have an apportioning business that operates within the EZ should have already computed Schedule R, and can use those amounts when that schedule is referenced. Residents complete a Schedule R in order to determine their California source business income for purposes of the EZ credit computation.

Line 11 and Line 12: If the gain or loss reported on Schedule D or Schedule D-1 as adjusted on Schedule CA (540 or 540NR) was attributed to an asset used in an activity conducted within and outside the EZ and California, get Schedule R and complete Schedule R-1. Multiply the gain or loss reported by the percentage on Schedule R-1, Part A, line 2 or Part B, line 5 and enter the result in column (a). To determine the apportionment percentage in column (b), complete Worksheet II, Section A. Enter the percentage from Worksheet II, Section A, line 4, column (c) on Worksheet II, Section B, column (b).

Line 14 – If you are computing the EZ business income and the result on the Worksheet II, Section B, line 14, column (c) is a positive amount and:

  • You have EZ NOL carryovers, enter the amount on Worksheet III, line 1 and line 6 (skip line 2 through line 5).
  • You have EZ credit or credit carryovers, enter the amount on Schedule Z, Part I, line 1 and line 3 (skip line 2).

If the amount is negative, you do not have any business income attributed to the EZ and you cannot utilize any EZ NOL carryover, credit(s), or credit carryover(s) in the current taxable year.

Worksheet II: Income or Loss Apportionment – Enterprise Zones

Section A: Income Apportionment

Use Worksheet II, Section A, if your business has net income from sources within and outside an EZ.

  (a)
Total within California
(b)
Total within an EZ
(c)
Percentage within an EZ
column (b) ÷ column (a)
1. PROPERTY FACTOR

Average yearly value of owned real and tangible personal property used in the business (at original cost). See instructions for more information. Exclude property not connected with the business and the value of construction in progress.

Inventory     Not Applicable
Buildings     Not Applicable
Machinery and equipment     Not Applicable
Furniture and fixtures     Not Applicable
Delivery equipment     Not Applicable
Land     Not Applicable
Other tangible assets (attach schedule)     Not Applicable
Rented property used in the business. See instructions.     Not Applicable
Total property values      
2. PAYROLL FACTOR

Employees’ wages, salaries, commissions, and other compensation related to business income included in the tax return.

Total payroll      
3. Total percentage – sum of the percentages in column (c). Not Applicable Not Applicable  
4. Average apportionment percentage – 1/2 of line 3.
Enter here and on form FTB 3805Z, Side 1, line 2.
Not Applicable Not Applicable  
Section B: Income or Loss Apportionment
Part I: Individual Income and Expense Items

See instructions.

  (a)
Amount
(b)
Percentage of time providing services in the EZ
(c)
Apportioned amount
column (a) × column (b)
1. Wages      
2. Employee business expenses      
3. Total. Combine line 1, column (c) and line 2, column (c).  
Part II: Pass-Through Income or Loss

See instructions.

  (a)
Name of entity
(b)
Distributive or pro-rata share of business income or loss apportioned to the EZ from Schedule K-1 (100S, 541, 565, or 568) including capital gains and losses
4.    
   
5. Total. Add line 4, column (b).  
Part III: Taxpayer’s Trade or Business

See instructions.

(a)
Business income or loss
(b)
Apportionment percentage for the EZ
(c)
Apportioned income or loss
column (a) × column (b)
6. Schedule C or C-EZ      
7. Schedule E (Rentals)      
8. Schedule F    
9. Other business income or loss      
10. Total. Add line 6 through line 9, column (c).  
  (a)
Business gain or loss
(b)
Apportionment percentage for the EZ
(c)
Apportioned gain or loss
column (a) × column (b)
11. Schedule D      
12. Schedule D-1      
13. Total. Add line 11, column (c) and line 12, column (c).  
14. Total. Add line 3, line 10, and line 13, column (c), and line 5, column (b).  

Part III – Net Operating Loss (NOL) Carryover and Deduction

All EZs are repealed as of January 1, 2014.Taxpayers can no longer generate any EZ NOL beginning on or after January 1, 2014. However, taxpayers can claim an NOL carryover deduction from prior years.

For NOLs incurred in taxable years beginning on or after January 1, 2008, California has extended the NOL carryover period to 20 taxable years following the year of the loss. A business that operates or invests within an EZ that generated an NOL in a taxable year beginning before January 1, 2008, can carry the NOL forward 15 years. In addition, up to 100% of the NOL generated in an EZ can be carried forward.

For taxable years beginning in 2010 and 2011, California suspended the NOL carryover deduction. Taxpayers continued to compute and carryover NOLs during the suspension period. However, taxpayers with net income after state adjustments (pre-apportioned income) (corporations) or with modified adjusted gross income (individuals) of less than $300,000, or with disaster loss carryovers are not affected by the NOL suspension rules.

Corporations use line 17 of Forms 100 and 100W, or line 14 less line 16 of Form 100S to determine net income after state adjustments (pre-apportioned income).

Individuals use the amount shown on your federal tax return for the same taxable year without regard to the federal NOL deduction (Form 540/540NR, line 13, plus the federal NOL deduction listed on Schedule CA (540/540NR) column C, line 21c).

For taxable years beginning in 2008 and 2009, California suspended the NOL carryover deduction. Taxpayers continued to compute and carryover NOL during the suspension period. However, taxpayers with taxable income (corporations), net business income (individuals) of less than $500,000, or with disaster loss carryovers were not affected by the NOL suspension rules.

The carryover periods for any NOL or NOL carryover, for which a deduction is disallowed because of the 2008 - 2011 suspension, are extended by:

  • One year for losses incurred in taxable years beginning on or after January 1, 2010, and before January 1, 2011.
  • Two years for losses incurred in taxable years beginning before January 1, 2010.
  • Three years for losses incurred in taxable years beginning before January 1, 2009.
  • Four years for losses incurred in taxable years beginning before January 1, 2008.

For taxable years beginning in 2002 and 2003, California had suspended the NOL carryover deduction. Taxpayers continued to carryover an NOL during the suspension period. The carryover period for suspended losses was extended by two years for losses incurred before January 1, 2002, and by one year for losses incurred on or after January 1, 2002, and before January 1, 2003.

The business cannot generate NOLs from activities within the EZ before the first taxable year beginning on or after the date the EZ is officially designated.

Limitation

An EZ NOL carryover deduction can only offset business income attributable to operations within the EZ.

Election

If you elected and designated the carryover category (general or specific, EZ or LAMBRA NOL) on the original tax return for the year of a loss, file form FTB 3805Z for each year in which an EZ NOL deduction is being taken. The election is irrevocable.

If you elected the EZ NOL deduction, you are prohibited by law from carrying over any other type of NOL, relating to EZ activities, from this year.

Alternative Minimum Tax

For taxpayers claiming an EZ NOL carryover deduction, use Schedule P (100, 100W, 540, 540NR, or 541) to compute the NOL for alternative minimum tax purposes.

S Corporations

EZ NOLs incurred prior to becoming an S corporation cannot be used against S corporation income. See IRC Section 1371(b).

However, an S corporation is allowed to deduct an EZ NOL incurred after the “S” election is made. An S corporation may use the NOL carryover as a deduction against income subject to the 1.5% entity-level tax (3.5% for financial S corporations). The expenses (and income) giving rise to the loss are also passed through to the shareholders in the year the loss is incurred.

Combined Report

Corporations that are members of a unitary group filing a combined report must separately compute loss carryover for each corporation in the group (R&TC Section 25108) using their individual apportionment factors.

Unlike the NOL treatment on a federal consolidated tax return, a loss carryover for one member included in a combined report may not be applied to the intrastate apportioned income of another member included in a combined report.

Water’s-Edge Taxpayer

For any water’s-edge taxpayer, R&TC Section 24416(c) imposes a limitation on the NOL deduction if the NOL is generated during a non-water’s edge tax year. The NOL carryover is limited to the lesser of the NOL or the re-computed NOL. The re-computed NOL carryover is determined by computing the income and factors of the original worldwide combined reporting group, as if the water’s-edge election had been in force for the year of the loss. R&TC Section 24416(c) serves as a limitation. If this section applies, the NOL carryover for each corporation may only be decreased, not increased.

Instructions for Worksheet III – Computation of NOL Carryover and Carryover Limitations

Individuals, exempt trusts, and corporations with current year income and prior year EZ NOL carryover complete Worksheet III.

An EZ NOL carryover deduction can only offset business income attributable to operations within the EZ. Use this worksheet to compute the NOL carryover deduction for individuals, exempt trusts, and corporations to reduce current year business income from the EZ.

Line 1

See Part II for a discussion of business and nonbusiness income.

Form 540 and Form 540NR filers:

Be sure to include casualty losses, disaster losses, and any business deductions reported on federal Schedule A as itemized deductions.

Exception: If you elected to claim part or all of your current year disaster loss under IRC Section 165(i)(1) on prior year’s tax return, do not include the amount of loss that was claimed on prior year’s tax return in your current year business income for the EZ.

Line 2

In modifying your income, deduct your capital losses only up to your capital gains. Enter as a positive number any net capital losses included in line 1.

Line 3

Corporations must reduce income by the disaster loss deduction and the deduction for excess net passive income.

Line 6

This is your modified taxable income (MTI). You may reduce this amount by your EZ NOL carryover deduction. Your EZ NOL carryover deduction may not be larger than your MTI. If your MTI is a loss in the current year or if it limits the amount of NOL you may use this year, carry over the NOL to future years.

Line 7

Enter the amount from line 6 in line 7, column (d). If this amount is zero or negative, transfer the amounts from line 9 through line 25, column (b) to column (e), and go to line 26.

Line 8 through Line 25

Enter the amounts on line 8 through line 25 as positive numbers.

In column (c), enter the smaller of the amount in column (b) or the amount in column (d) from the previous line.

In column (d), enter the result of subtracting column (c) from the balance on the previous line in column (d).

In column (e), enter the result of subtracting the amount in column (c) from the amount in column (b), as applicable.

Example:

(b)
Carryover from prior year
(c)
Amount deducted this year
(d)
Balance available to offset losses
(e)
Enterprise zone NOL carryover
Not Applicable Not Applicable $5,000 Not Applicable
$500 $500 $4,500 $0
Line 26

Total the amounts in column (b) and column (e). Enter the totals from line 26, columns (b), and (e) on form FTB 3805Z, Side 1, line 3a and line 3c, accordingly.

Your EZ NOL carryover deduction for 2017 is the total of column (c). Enter this amount on your California tax return or schedule as follows:

  • Form 100, line 20
  • Form 100S, line 18
  • Form 100W, line 20
  • Form 109, line 6
  • Schedule CA (540), line 21(e), column B
  • Schedule CA (540NR), line 21(e), column B

Worksheet III: Computation of NOL Carryover and Carryover Limitations – Enterprise Zones

See instructions.

  1. Enter the amount from Form 100, line 17; Form 100W, line 17; Form 100S, combined amounts of line 14 and line 16; or Form 109, line 1 or line 4. Form 540 or Long Form 540NR filers, enter the total from Worksheet II, Section B, line 14, column (c) on line 1 and line 6 (skip line 2 through line 5). See instructions. Corporations filing a combined report, enter the taxpayer’s business income assigned to California. See instructions for Part II.
    1. Form 100, Form 100W, Form 100S, and Form 109 filers: Enter any nonbusiness income included in line 1 as a negative number. Form 540 and Long Form 540NR filers leave blank.
    2. Form 100, 100W, 100S, and 109 filers: Enter any nonbusiness loss included in line 1 as a positive number. Form 540 and Long Form 540NR filers leave blank.
    3. Combine line 2a and line 2b.
  2. Form 100 and Form 100W filers: Enter the amount from Form 100, line 21 or Form 100W, line 21. Form 100S filers: Enter the total of the amounts from Form 100S, line 16 and line 19. Form 540, Long Form 540NR, and Form 109 filers: Enter -0-. Enter this amount as a negative number.
  3. Combine line 1, line 2c, and line 3. If zero or less, enter -0- on line 6.
  4. Enter the average apportionment percentage from Worksheet II, Section A, line 4.
  5. Modified taxable income. Multiply line 4 by line 5. See instructions.
(a)
Description
(b)
Carryover from prior year
(c)
Amount deducted this year
(d)
Balance available to offset losses
(e)
EZ NOL carryover to future years.
7. Modified taxable income from line 6 Not Applicable Not Applicable   Not Applicable
8. EZ NOL carryover beginning in 1996       Not Applicable
9. EZ NOL carryover beginning in 1997        
10. EZ NOL carryover beginning in 1998        
11. EZ NOL carryover beginning in 1999        
12. EZ NOL carryover beginning in 2000        
13. EZ NOL carryover beginning in 2001        
14. EZ NOL carryover beginning in 2002        
15. EZ NOL carryover beginning in 2003        
16. EZ NOL carryover beginning in 2004        
17. EZ NOL carryover beginning in 2005        
18. EZ NOL carryover beginning in 2006        
19. EZ NOL carryover beginning in 2007        
20. EZ NOL carryover beginning in 2008        
21. EZ NOL carryover beginning in 2009        
22. EZ NOL carryover beginning in 2010        
23. EZ NOL carryover beginning in 2011        
24. EZ NOL carryover beginning in 2012        
25. EZ NOL carryover beginning in 2013        
26. Total the amounts in column (b), (c) and column (e). See instructions.     Not Applicable  

Schedule Z – Computation of Credit Limitations

Credit Limitations

The amount of EZ credits you can claim on your California tax return is limited by the amount of tax attributable to EZ business income. The amount of tax attributable to the EZ business income is computed in this schedule. For corporations and other entities doing business in the enterprise zone, the EZ business income is computed in this schedule using the EZ apportionment factor formula computed on Worksheet II, Section A. For individuals, the EZ business income is computed on Worksheet II, Section B. Use Schedule Z to compute this limitation.

Assignment of Credit

Credit earned by members of a combined reporting group may be assigned to an affiliated corporation that is an eligible member of the same combined reporting group. A credit assigned may only be claimed by the affiliated corporation against its tax liability.

The eligible assignee shall be treated as if it originally generated the assigned credit. Any credit limitations or restrictions that applied to the assignor will also apply to the eligible assignee. The amount of EZ credits you may claim on your California tax return is limited to the tax attributable to a specific EZ. For zone credits assigned, the assignee must have a tax liability as a result of income generated in the same zone that the original credit was generated. For example, if the original credit was generated in the Fresno City EZ of the assignor, the assignee must have a tax liability on the income attributable to the Fresno City EZ in order to use the assigned credit. For more information on credit assignment, get form FTB 3544, or form FTB 3544A or go to ftb.ca.gov and search for credit assignment.

Other Limitations

If a taxpayer owns an interest in a disregarded business entity, the amount of the credit that can be utilized is limited to the difference between the taxpayer’s regular tax computed with the income of the disregarded entity, and the taxpayer’s regular tax computed without the income of the disregarded entity. Partnerships allocate the credit among the partners according to the partner’s distributive share as determined in a written partnership agreement. See R&TC Section 17039(e)(2).

Credits you are otherwise eligible to claim may be limited. Do not apply credits against the minimum franchise tax (corporations and S corporations), the annual tax (partnerships and QSub), the alternative minimum tax (exempt organizations, individuals, and fiduciaries), the built-in gains tax (S corporations) or the excess net passive income tax (S corporations).

Refer to the credit instructions in your tax booklet for more information.

S Corporations and the Application of Enterprise Zone Credits

The credits earned by an S corporation may be used to reduce EZ tax at both the corporate and the shareholder levels.

An S corporation may use 1/3 of the EZ credit to reduce the tax on the S corporation’s EZ business income. In addition, S corporation shareholders may claim their pro-rata share of the entire amount of the EZ credits computed under the Personal Income Tax Law.

Example: In 2017, an S corporation qualified for a $3,000 EZ hiring credit. The S corporation will be able to use 1/3 of the credit ($3,000 x 1/3 = $1,000), to offset the tax on the S corporation’s EZ business income.

The S corporation will also pass through a $3,000 credit to its shareholders to offset their individual tax (computed under the Personal Income Tax Law) on EZ business income.

S corporations attach form FTB 3805Z to Form 100S, California S Corporation Franchise or Income Tax Return, to claim the tax credits.

Shareholders should attach Schedule(s) K-1 (100S).

Carryover

If the amount of EZ credit available this year exceeds your tax, you may carry over any excess credit to future years. The portion of any credit remaining for carryover to taxable years beginning on or after January 1, 2014, shall be carried over only to the succeeding 10 taxable years if necessary, or until the credit is exhausted, whichever occurs first. Apply the carryover to the earliest taxable year possible. In no event can the credit be carried back and applied against a prior year’s tax. Generally, the credit cannot be transferred to another taxpayer unless:

  • There was a qualifying merger.
  • The credit qualifies under R&TC Section 23663 for assignment to an affiliated corporation. For additional information, get form FTB 3544, or form FTB 3544A.

For S corporations, the amount of the 1/3 credit that is in excess of the 1.5% entity-level tax (3.5% for financial S corporations) in the current year may also be carried forward and used in future years to offset the S corporation entity-level tax. See the instructions for Schedule Z, Part III for more information.

If a C corporation had unused credit carryovers when it elected S corporation status, the carryovers were reduced to 1/3 and transferred to the S corporation. The remaining 2/3 were disregarded. The allowable carryovers may be used to offset the 1.5% tax on net income in accordance with the respective carryover rules. These C corporation carryovers may not be passed through to shareholders. For more information, get Schedule C (100S), S Corporation Tax Credits.

Credit Code

Use credit code 176 to claim the EZ hiring credit and sales or use tax credit carryover on your tax return. Using an incorrect code may cause a delay in allowing the credit(s).

Instructions for Schedule Z – Computation of Credit Limitations

Reporting Requirements of S Corporations, Estates, Trusts, and Partnerships
  • Partnerships and LLCs treated as partnerships do not complete Schedule Z. The partners and members of these types of entities should compute their EZ income from all sources by completing the Schedule Z to determine the amount of EZ credits that they may claim on their California tax return. For individual partners, report the distributive share of all the business income apportioned to the EZ. For corporate partners, report the distributive share of the EZ property and payroll. Report these items as other information on Schedule K-1 (565).
  • S corporations and their shareholders complete Schedule Z.
  • Report to shareholders, beneficiaries, partners, and members, the distributive or pro-rata share of business income, loss, and deductions apportioned to the zone.
  • Separately state any distributive or pro-rata share of business capital gains and losses apportioned to the zone included in the amount above.
S Corporations

Complete only Part I and Part III of Schedule Z if your entity-level tax before credits is more than the minimum franchise tax.

Corporations and S corporations subject to the minimum franchise tax only

Complete only Part IV of Schedule Z.

All others

Complete Part I and Part II of Schedule Z.

Part I – Computation of Credit Limitations

For filers with NOL carryovers.

  • Complete Worksheet III first if you have an NOL carryover.
  • Then complete Schedule Z if you have any EZ credits.

If you do not have any NOL carryovers:

  • Individuals: Go to Worksheet II, Section B. Follow the instructions there. Enter the amount from Worksheet II, Section B, line 14, column (c) on Schedule Z, Part I, line 1 and line 3 (skip line 2).
  • Corporations: Follow the instructions for line 1 below.

Only business income is apportioned to the EZ to determine the incentive limitation. Business income is defined as income arising from transactions and activities in the regular course of the trade or business. Business income includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the regular trade or business operations. Nonbusiness income is all income other than business income.

For corporations filing a combined report, the business income of each corporation doing business in the EZ is the business income apportioned to California as determined under combined report mechanics. Get FTB Pub. 1061 for more information on combined reports and entity income apportionment.

Line 1

Enter all trade or business income. See form FTB 3805Z, Part II instructions for the definition of business income.

If a C corporation has a net loss for regular tax purposes, but has positive Alternative Minimum Taxable Income (AMTI), enter the taxpayer’s apportioned AMTI.

Line 2

If your business is located entirely within the EZ, enter 1.

This percentage is the apportionment percentage computed by the entity using Worksheet II, Section A, and represents the percentage of the entity’s business income attributable to the EZ.

Line 6a

Compute the tax as if the EZ taxable income represented all of your taxable income.

Individuals

Use the tax table or tax rate schedule in your tax booklet for your filing status.

Exempt organizations

Use the applicable tax rate in your tax booklet.

Corporations and S Corporations

Use the applicable tax rate.

If the amount on line 6a is the minimum franchise tax ($800), you cannot use your EZ credits this year. Complete Part IV of Schedule Z to compute the amount of credit carryover.

If a C corporation has a net loss for regular tax purposes and entered apportioned AMTI on line 1, use the applicable AMT rate. The result is the limitation based on EZ business income. Enter this amount on Part II, line 8A, column (f).

Example: Determination of EZ Income for Shareholders, Partners, or Members of Pass-Through Entities

John Anderson is vice president of ABC, Inc., an S corporation that has two locations: one in an EZ and one outside an EZ. Eighty percent (80%) of the S corporation’s business is attributable to the EZ.

This percentage was determined by ABC, Inc. using form FTB 3805Z, Worksheet II, Section A, when ABC’s S corporation tax return (Form 100S) was prepared. John divides his time equally (50/50) between the two offices of ABC, Inc.

Jackie Anderson (John’s spouse/RDP) works for ABC, Inc. at its office located in the EZ.

John and Jackie Anderson have the following 2017 items of California income and expense:

  • John’s salary from ABC, Inc: $100,000
  • Jackie’s salary from ABC, Inc: 75,000
  • Interest on savings account: 1,000
  • Dividends: 3,000
  • Schedule K-1 (100S) from ABC, Inc.: Ordinary income: 40,000
  • John’s unreimbursed employee expenses from federal Schedule A: (2,000)

The Anderson’s EZ business income (total amount to be reported on line 3) is computed as follows:

  • John’s EZ salary ($100,000 × 50%): $50,000
  • Jackie’s EZ salary ($75,000 × 100%): 75,000
  • Pass-through ordinary income from ABC, Inc. ($40,000 × 80%): 32,000
  • John’s unreimbursed employee business expenses (2,000 × 50%): (1,000)
  • Total EZ income (Schedule Z, Part I, line 3): $156,000

The standard deduction and personal or dependency exemptions are not included in the computation of EZ business income since they are not related to trade or business activities.

John and Jackie compute the tax (to be entered on Schedule Z, Part I, line 6a) on the total EZ business income of $156,000 (as if it represents all of their income).

Line 6b – Corporations and S corporations

If the amount on line 6b is the minimum franchise tax ($800), you cannot use your EZ credits this year. Complete Part IV of Schedule Z to compute the amount of credit carryover.

Part II – Limitation of Credits for Corporations, Individuals, Estates, and Trusts

Use Part II of Schedule Z if you are a corporation, individual, estate, or trust. Corporations and S corporations that are subject to paying only the minimum franchise tax, go to Part IV.

Individuals that received a Schedule K-1, complete Schedule Z, Part II, using the information from the Schedule K-1.

Line 8A, column (f)

Enter the amount from line 7. This is the amount of limitation based on the tax on EZ business income.

Line 8A, column (g)

Enter the amount of credit that is used on Schedule P (100, 100W, 540, 540NR, or 541), column (b). The amount cannot be greater than the amount on line 8A, column (f) or the amount computed on line 8B, column (e). Enter this amount on form FTB 3805Z, Side 1, line 1a.

Line 8B, column (b)

Enter the amount of the current year credit that was computed on Worksheet IA, Section A, line 6. Individuals enter the current year hiring credit from the Schedule K-1.

Line 8B, column (c)

Enter the amount of the total prior year credit carryover. This is the amount of credit that was previously computed on Worksheet IA, Section A in the prior year minus the amount that was allowed to be taken on the prior year tax return.

Line 8B, column (d)

Enter the amount of credit assigned to affiliated corporations that are members of the same combined reporting group from form FTB 3544, column (g). Only C corporations who completed the form will enter an amount in this column. Individuals, and Estates and Trusts, leave blank and go to column (e) instructions.

Line 8B, column (e)

Add the amount of the current year credit on line 8B, column (b) and the amount of the total prior year carryover on line 8B, column (c), then subtract the amount on line 8B, column (d), if any.

Line 8B, column (f)

Compare the amounts on line 8A, column (f) and line 8A, column (g). Enter the smaller amount.

Line 8B, column (h)

Subtract the amount on line 8B, column (f) from the amount on line 8B, column (e). Enter the result on line 8B, column (h). This is the amount of credit that can be carried over to future years.

This carryover includes both the Schedule P (100, 100W, 540, 540NR, or 541) limitation and the limitation based on EZ business income.

Line 9A, column (f)

Subtract the amount on line 8B, column (f) from the amount on line 8A, column (f). If the result is zero, your remaining credits are limited and must be carried over to future years. In this case, enter the amount from line 9B, column (e) on line 9B, column (h).

Line 9A, column (g)

Enter the amount of credit that is used on Schedule P (100, 100W, 540, 540NR, or 541), column (b). The amount cannot be greater than the amount on line 9A, column (f) or the amount computed on line 9B, column (e). Enter this amount on form FTB 3805Z, Side 1, line 1c.

Line 9B, column (c)

Enter the amount of the total prior year credit carryover from prior year Schedule Z, Part II, line 9B, column (h).

Line 9B, column (d)

Enter the amount of credit assigned to affiliated corporations that are members of the same combined reporting group from form FTB 3544, column (g). Only C corporations who completed the form will enter an amount in this column. Individuals, and Estates and Trusts, leave blank and go to column (e) instructions.

Line 9B, column (e)

Subtract the amount on line 9B, column (d), if any, from the total prior year carryover on line 9B, column (c).

Line 9B, column (f)

Compare the amounts on line 9A, column (f) and line 9A, column (g). Enter the smaller amount.

Line 9B, column (h)

Subtract the amount on line 9B, column (f) from the amount on line 9B, column (e). Enter the result on line 9B, column (h). This is the amount of credit that can be carried over to future years.

This carryover includes both the Schedule P (100, 100W, 540, 540NR, or 541) limitation and the limitation based on EZ business income.

Example: Part II

Assume the ABC Business has $8,000 of tax. The business computed a credit limitation based on zone income of $7,000 on Schedule Z, line 7.

The business has the following credits:

  • Hiring credit — $500 and a $300 carryover from a prior year
  • Sales or use tax credit carryover — $9,000

Schedule Z, Part II would be computed as follows:

Part II: Limitation of Credits for Corporations, Individuals, Estates, and Trusts. See instructions.

(a)
Credit name
(b)
Credit amount
(c)
Total prior year carryover
(d)
Total credit assigned from form FTB 3544, col. (g)
(e)
Total credit sum of col. (b) plus col. (c), minus col. (d)
(f)
Limitation based on EZ business income
(g)
Credit used on Sch. P
Can never be greater than col. (e) or col. (f)
(h)
Total credit carryover col. (e) minus col. (f)
8. Hiring credit A Not Applicable Not Applicable Not Applicable Not Applicable 7,000 800 Not Applicable
B 500 300 –0– 800 800 Not Applicable –0–
9. Sales or use tax credit carryover A Not Applicable Not Applicable Not Applicable Not Applicable 6,200 6,200 Not Applicable
B Not Applicable 9,000 –0– 9,000 6,200 Not Applicable 2,800
Part III – Limitation of Credits for S Corporations Only

Use Part III of Schedule Z only if you are an S corporation. Adjust Schedule C (100S) to reflect the EZ business tax limitation (Part I, line 7) after completing this worksheet.

Line 10, column (b)

Enter the amount of current year credit that was computed on Worksheet IA in column (b) for line 10. Also include this amount on Form 100S, Schedule K, line 13d.

Line 10, column (c)

Multiply the amount on line 10, column (b) by 1/3. Enter this amount in column (c). The amount in column (c) is the maximum amount of the current year credit that may be used by the S corporation to offset its 1.5% entity-level tax (3.5% for financial S corporations).

Also include this amount on Schedule C (100S).

Line 10, column (d)

Enter the amount of total prior year credit carryover. This is the amount of credit that was previously computed on the prior year Worksheet IA, minus the amount that was allowed to be taken on the prior year return.

Line 11, column (d)

Enter the amount of the total prior year credit carryover from prior year Schedule Z, Part III, line 11, column (g).

Line 10 and Line 11, column (e)

Add the amounts of the current year credits in column (c), as applicable, and the total prior year carryovers in column (d).

Line 10 and Line 11, column (f)

Enter the credit amounts that were used by the S corporation in the current year to offset its 1.5% entity-level tax (3.5% for financial S corporations). Enter the amounts in column (f) for line 10 and line 11 on form FTB 3805Z, Side 1, line 1a and line 1c, as applicable.

Line 10 and Line 11, column (g)

Subtract the amount in column (f) for each line from the amounts in column (e). These are the credit amounts that can be carried over to future years and used by the S corporation.

Part IV – Limitation of Credits for Corporations and S Corporations Subject to Paying Only the Minimum Franchise Tax

Use Part IV of Schedule Z if you are a corporation or S corporation subject to paying only the minimum franchise tax.

Line 12, column (b)

Enter the amount of current year credit that was computed on Worksheet IA. S corporations may enter only 1/3 of the amount from Worksheet IA on line 12, column (b).

Line 12, column (c)

Enter the amount of the total prior year credit carryover. This is the amount of credit that was previously computed on Worksheet IA in the prior year, minus the amount that was allowed to be taken on the prior year return. S corporations may only enter 1/3 of the amount from Worksheet IA in the prior year, minus the amount that was allowed to be taken on the prior year return.

Line 13, column (c)

Enter the amount of the total prior year credit carryover from prior year Schedule Z, Part IV, line 13, column (e).

Line 12 and Line 13, column (d)

Enter the amounts of credits assigned to affiliated corporations that are members of the same combined reporting group from form FTB 3544, column (g). Only C corporations who completed the form will enter an amount in this column. S corporations, leave blank and go to column (e) instructions.

Line 12 and Line 13, column (e)

Add the amounts in column (b), as applicable, and column (c) for line 12 and line 13, then subtract the amounts in column (d), if any, for line 12 and line 13. These are the credit amounts that can be carried over to future years.

Standard Industrial Classification Manual, 1987 Edition (Partial Listing)

The Standard Industrial Classification (SIC) Manual classifies business activities based upon establishments, which are defined in the SIC Manual as an economic unit, generally at a single physical location, where business is conducted, or where services or industrial operations are performed. A taxpayer’s enterprise may consist of more than one establishment. The SIC Manual provides the following examples of establishments: A factory, mill, store, hotel, movie theater, mine, farm, ranch, bank, railroad depot, airline terminal, sales office, warehouse, or central administrative office. Where distinct and separate economic activities are performed at a single physical location (such as construction activities operated out of the same physical location as a lumber yard), each activity should be treated as a separate establishment where:

  1. No one industry description in the SIC Manual includes such combined activities.
  2. The employment in each economic activity is significant.
  3. Separate reports are prepared on the number of employees, their wages and salaries, sales or receipts, property and equipment, and other types of financial data, such as financial statements, job costing, and profit center accounting.

The SIC Manual is organized using a hierarchical structure, first by division, next by two-digit major groups within each division, then by three-digit industry groups within each major group, and finally by four-digit industry codes within each industry group.

For purposes of this publication, SIC Codes 3721, 3724, 3728, and 3812 are listed since only Long Beach taxpayers with establishments in these industry codes qualify for the EZ hiring credit.

The complete Standard Industrial Classification Manual, 1987 Edition, is available for purchase from:

NATIONAL TECHNICAL INFORMATION SERVICE
5301 SHAWNEE ROAD
ALEXANDRIA, VIRGINIA 22312
Order No. PB 87-100012

Or to view the manual, go to osha.gov and search for SIC code.

The four-digit industry codes within Division D of the SIC Manual are:

3721
Research and Development on Aircraft
3724
Aircraft Engines and Engine Parts
3728
Aircraft Parts and Auxiliary Equipment, not elsewhere classified
3812
Search and Navigation Equipment

FTB 3805Z
Principal Business Activity Codes

This list of principal business activities and their associated codes is designed to classify a business by the type of activity in which it is engaged to facilitate the administration of the California Revenue and Taxation Code (R&TC). These principal business activity codes are based on the North American Industry Classification System published by the United States Office of Management and Budget.

For purposes of qualifying for the Long Beach EZ hiring credit, refer to the Standard Industrial Classification Manual (SIC). A partial listing of the SIC codes is located on page 19 of this booklet.

Agriculture, Forestry, Fishing, and Hunting

Crop Production

Code
 
111100
Oilseed & Grain Farming
111210
Vegetable & Melon Farming (including potatoes & yams)
111300
Fruit & Tree Nut Farming
111400
Greenhouse, Nursery, & Floriculture Production
111900
Other Crop Farming (including tobacco, cotton, sugarcane, hay, peanut, sugar beet, & all other crop farming)

Animal Production

112111
Beef Cattle Ranching & Farming
112112
Cattle Feedlots
112120
Dairy Cattle & Milk Production
112210
Hog & Pig Farming
112300
Poultry & Egg Production
112400
Sheep & Goat Farming
112510
Aquaculture (including shellfish & finfish farms & hatcheries)
112900
Other Animal Production

Forestry and Logging

113110
Timber Tract Operations
113210
Forest Nurseries & Gathering of Forest Products
113310
Logging

Fishing, Hunting and Trapping

114110
Fishing
114210
Hunting & Trapping

Support Activities for Agriculture and Forestry

115110
Support Activities for Crop Production (including cotton ginning, soil preparation, planting, & cultivating)
115210
Support Activities for Animal Production
115310
Support Activities for Forestry

Mining

211120
Crude Petroleum Extraction
211130
Natural Gas Extraction
212110
Coal Mining
212200
Metal Ore Mining
212310
Stone Mining & Quarrying
212320
Sand, Gravel, Clay, & Ceramic & Refractory Mineral Mining & Quarrying
212390
Other Nonmetallic Mineral Mining & Quarrying
213110
Support Activities for Mining

Utilities

221100
Electric Power Generation, Transmission & Distribution
221210
Natural Gas Distribution
221300
Water, Sewage, & Other Systems
221500
Combination Gas and Electric

Construction

Construction of Buildings

236110
Residential Building Construction
236200
Nonresidential Building Construction

Heavy and Civil Engineering Construction

237100
Utility System Construction
237210
Land Subdivision
237310
Highway, Street, & Bridge Construction
237990
Other Heavy & Civil Engineering Construction

Specialty Trade Contractors

238100
Foundation, Structure, & Building Exterior Contractors (including framing carpentry, masonry, glass, roofing, & siding)
238210
Electrical Contractors
238220
Plumbing, Heating, & Air-Conditioning Contractors
238290
Other Building Equipment Contractors
238300
Building Finishing Contractors (including drywall, insulation, painting, wallcovering, flooring, tile, & finish carpentry)
238900
Other Specialty Trade Contractors (including site preparation)

Manufacturing

Food Manufacturing

311110
Animal Food Mfg
311200
Grain & Oilseed Milling
311300
Sugar & Confectionery Product Mfg
311400
Fruit & Vegetable Preserving & Specialty Food Mfg
311500
Dairy Product Mfg
311610
Animal Slaughtering and Processing
311710
Seafood Product Preparation & Packaging
311800
Bakeries, Tortilla & Dry Pasta Mfg
311900
Other Food Mfg (including coffee, tea, flavorings, & seasonings)

Beverage and Tobacco Product Manufacturing

312110
Soft Drink & Ice Mfg
312120
Breweries
312130
Wineries
312140
Distilleries
312200
Tobacco Manufacturing

Textile Mills and Textile Product Mills

313000
Textile Mills
314000
Textile Product Mills

Apparel Manufacturing

315100
Apparel Knitting Mills
315210
Cut & Sew Apparel Contractors
315220
Men’s & Boys’ Cut & Sew Apparel Mfg
315240
Women’s, Girls’ and Infants’ Cut and Sew Apparel Mfg
315280
Other Cut & Sew Apparel Mfg
315990
Apparel Accessories & Other Apparel Mfg

Leather and Allied Product Manufacturing

316110
Leather & Hide Tanning & Finishing
316210
Footwear Mfg (including rubber & plastics)
316990
Other Leather & Allied Product Mfg

Wood Product Manufacturing

321110
Sawmills & Wood Preservation
321210
Veneer, Plywood, & Engineered Wood Product Mfg
321900
Other Wood Product Mfg

Paper Manufacturing

322100
Pulp, Paper, & Paperboard Mills
322200
Converted Paper Product Mfg

Printing and Related Support Activities

323100
Printing & Related Support Activities

Petroleum and Coal Products Manufacturing

324110
Petroleum Refineries (including integrated)
324120
Asphalt Paving, Roofing, & Saturated Materials Mfg
324190
Other Petroleum & Coal Products Mfg

Chemical Manufacturing

325100
Basic Chemical Mfg
325200
Resin, Synthetic Rubber, & Artificial & Synthetic Fibers & Filaments Mfg
325300
Pesticide, Fertilizer, & Other Agricultural Chemical Mfg
325410
Pharmaceutical & Medicine Mfg
325500
Paint, Coating, & Adhesive Mfg
325600
Soap, Cleaning Compound, & Toilet Preparation Mfg
325900
Other Chemical Product & Preparation Mfg

Plastics and Rubber Products Manufacturing

326100
Plastics Product Mfg
326200
Rubber Product Mfg

Nonmetallic Mineral Product Manufacturing

327100
Clay Product & Refractory Mfg
327210
Glass & Glass Product Mfg
327300
Cement & Concrete Product Mfg
327400
Lime & Gypsum Product Mfg
327900
Other Nonmetallic Mineral Product Mfg

Primary Metal Manufacturing

331110
Iron & Steel Mills & Ferroalloy Mfg
331200
Steel Product Mfg from Purchased Steel
331310
Alumina & Aluminum Production & Processing
331400
Nonferrous Metal (except Aluminum) Production & Processing
331500
Foundries

Fabricated Metal Product Manufacturing

332110
Forging & Stamping
332210
Cutlery & Handtool Mfg
332300
Architectural & Structural Metals Mfg
332400
Boiler, Tank, & Shipping Container Mfg
332510
Hardware Mfg
332610
Spring & Wire Product Mfg
332700
Machine Shops; Turned Product; & Screw, Nut, & Bolt Mfg
332810
Coating, Engraving, Heat Treating, & Allied Activities
332900
Other Fabricated Metal Product Mfg

Machinery Manufacturing

333100
Agriculture, Construction, & Mining Machinery Mfg
333200
Industrial Machinery Mfg
333310
Commercial & Service Industry Machinery Mfg
333410
Ventilation, Heating, Air-Conditioning, & Commercial Refrigeration Equipment Mfg
333510
Metalworking Machinery Mfg
333610
Engine, Turbine, & Power Transmission Equipment Mfg
333900
Other General Purpose Machinery Mfg

Computer and Electronic Product Manufacturing

334110
Computer & Peripheral Equipment Mfg
334200
Communications Equipment Mfg
334310
Audio & Video Equipment Mfg
334410
Semiconductor & Other Electronic Component Mfg
334500
Navigational, Measuring, Electromedical, & Control Instruments Mfg
334610
Manufacturing & Reproducing Magnetic & Optical Media

Electrical Equipment, Appliance, and Component Manufacturing

335100
Electric Lighting Equipment Mfg
335200
Major Household Appliance Mfg
335310
Electrical Equipment Mfg
335900
Other Electrical Equipment & Component Mfg

Transportation Equipment Manufacturing

336100
Motor Vehicle Mfg
336210
Motor Vehicle Body & Trailer Mfg
336300
Motor Vehicle Parts Mfg
336410
Aerospace Product & Parts Mfg
336510
Railroad Rolling Stock Mfg
336610
Ship & Boat Building
336990
Other Transportation Equipment Mfg

Furniture and Related Product Manufacturing

337000
Furniture & Related Product Manufacturing

Miscellaneous Manufacturing

339110
Medical Equipment & Supplies Mfg
339900
Other Miscellaneous Manufacturing

Wholesale Trade

Merchant Wholesalers, Durable Goods

423100
Motor Vehicle & Motor Vehicle Parts & Supplies
423200
Furniture & Home Furnishings
423300
Lumber & Other Construction Materials
423400
Professional & Commercial Equipment & Supplies
423500
Metal & Mineral (except Petroleum)
423600
Household Appliances and Electrical and Electronic Goods
423700
Hardware, & Plumbing & Heating Equipment & Supplies
423800
Machinery, Equipment, & Supplies
423910
Sporting & Recreational Goods & Supplies
423920
Toy & Hobby Goods & Supplies
423930
Recyclable Materials
423940
Jewelry, Watch, Precious Stone, & Precious Metals
423990
Other Miscellaneous Durable Goods

Merchant Wholesalers, Nondurable Goods

424100
Paper & Paper Products
424210
Drugs & Druggists’ Sundries
424300
Apparel, Piece Goods, & Notions
424400
Grocery & Related Products
424500
Farm Product Raw Materials
424600
Chemical & Allied Products
424700
Petroleum & Petroleum Products
424800
Beer, Wine, & Distilled Alcoholic Beverages
424910
Farm Supplies
424920
Book, Periodical, & Newspapers
424930
Flower, Nursery Stock, & Florists’ Supplies
424940
Tobacco & Tobacco Products
424950
Paint, Varnish, & Supplies
424990
Other Miscellaneous Nondurable Goods

Wholesale Electronic Markets and Agents and Brokers

425110
Business to Business Electronic Markets
425120
Wholesale Trade Agents & Brokers

Retail Trade

Motor Vehicle and Parts Dealers

441110
New Car Dealers
441120
Used Car Dealers
441210
Recreational Vehicle Dealers
441222
Boat Dealers
441228
Motorcycle, ATV, and All Other Motor Vehicle Dealers
441300
Automotive Parts, Accessories, & Tire Stores

Furniture and Home Furnishings Stores

442110
Furniture Stores
442210
Floor Covering Stores
442291
Window Treatment Stores
442299
All Other Home Furnishings Stores

Electronics and Appliance Stores

443141
Household Appliance Stores
443142
Electronics Stores (including Audio, Video, Computer, and Camera Stores)

Building Material and Garden Equipment and Supplies Dealers

444110
Home Centers
444120
Paint & Wallpaper Stores
444130
Hardware Stores
444190
Other Building Material Dealers
444200
Lawn & Garden Equipment & Supplies Stores

Food and Beverage Stores

445110
Supermarkets and Other Grocery (except Convenience) Stores
445120
Convenience Stores
445210
Meat Markets
445220
Fish & Seafood Markets
445230
Fruit & Vegetable Markets
445291
Baked Goods Stores
445292
Confectionery & Nut Stores
445299
All Other Specialty Food Stores
445310
Beer, Wine, & Liquor Stores

Health and Personal Care Stores

446110
Pharmacies & Drug Stores
446120
Cosmetics, Beauty Supplies, & Perfume Stores
446130
Optical Goods Stores
446190
Other Health & Personal Care Stores

Gasoline Stations

447100
Gasoline Stations (including convenience stores with gas)

Clothing and Clothing Accessories Stores

448110
Men’s Clothing Stores
448120
Women’s Clothing Stores
448130
Children’s & Infants’ Clothing Stores
448140
Family Clothing Stores
448150
Clothing Accessories Stores
448190
Other Clothing Stores
448210
Shoe Stores
448310
Jewelry Stores
448320
Luggage & Leather Goods Stores

Sporting Goods, Hobby, Book, and Music Stores

451110
Sporting Goods Stores
451120
Hobby, Toy, & Game Stores
451130
Sewing, Needlework, & Piece Goods Stores
451140
Musical Instrument & Supplies Stores
451211
Book Stores
451212
News Dealers & Newsstands

General Merchandise Stores

452200
Department Stores
452300
General Merchandise Stores, incl. Warehouse Clubs and Supercenters

Miscellaneous Store Retailers

453110
Florists
453210
Office Supplies & Stationery Stores
453220
Gift, Novelty, & Souvenir Stores
453310
Used Merchandise Stores
453910
Pet & Pet Supplies Stores
453920
Art Dealers
453930
Manufactured (Mobile) Home Dealers
453990
All Other Miscellaneous Store Retailers (including tobacco, candle, & trophy shops)

Nonstore Retailers

454110
Electronic Shopping & Mail-Order Houses
454210
Vending Machine Operators
454310
Fuel Dealers (including Heating Oil and Liquefied Petroleum)
454390
Other Direct Selling Establishments (including door-to-door retailing, frozen food plan providers, party plan merchandisers, & coffee-break service providers)

Transportation and Warehousing

Air, Rail, and Water Transportation

481000
Air Transportation
482110
Rail Transportation
483000
Water Transportation

Truck Transportation

484110
General Freight Trucking, Local
484120
General Freight Trucking, Long-distance
484200
Specialized Freight Trucking

Transit and Ground Passenger Transportation

485110
Urban Transit Systems
485210
Interurban & Rural Bus Transportation
485310
Taxi Service
485320
Limousine Service
485410
School & Employee Bus Transportation
485510
Charter Bus Industry
485990
Other Transit & Ground Passenger Transportation

Pipeline Transportation

486000
Pipeline Transportation

Scenic & Sightseeing Transportation

487000
Scenic & Sightseeing Transportation

Support Activities for Transportation

488100
Support Activities for Air Transportation
488210
Support Activities for Rail Transportation
488300
Support Activities for Water Transportation
488410
Motor Vehicle Towing
488490
Other Support Activities for Road Transportation
488510
Freight Transportation Arrangement
488990
Other Support Activities for Transportation

Couriers and Messengers

492110
Couriers
492210
Local Messengers & Local Delivery

Warehousing and Storage

493100
Warehousing & Storage (except lessors of miniwarehouses & self- storage units)

Information

Publishing Industries (except Internet)

511110
Newspaper Publishers
511120
Periodical Publishers
511130
Book Publishers
511140
Directory & Mailing List Publishers
511190
Other Publishers
511210
Software Publishers

Motion Picture and Sound Recording Industries

512100
Motion Picture & Video Industries (except video rental)
512200
Sound Recording Industries

Broadcasting (except Internet)

515100
Radio & Television Broadcasting
515210
Cable & Other Subscription Programming

Telecommunications

517000
Telecommunications (including paging, cellular, satellite, cable & other program distribution, resellers, & other telecommunications & internet service providers)

Data Processing Services

518210
Data Processing, Hosting, & Related Services

Other Information Services

519100
Other Information Services (including news syndicates, libraries, internet publishing & broadcasting)

Finance and Insurance

Depository Credit Intermediation

522110
Commercial Banking
522120
Savings Institutions
522130
Credit Unions
522190
Other Depository Credit Intermediation

Nondepository Credit Intermediation

522210
Credit Card Issuing
522220
Sales Financing
522291
Consumer Lending
522292
Real Estate Credit (including mortgage bankers & originators)
522293
International Trade Financing
522294
Secondary Market Financing
522298
All Other Nondepository Credit Intermediation

Activities Related to Credit Intermediation

522300
Activities Related to Credit Intermediation (including loan brokers, check clearing, & money transmitting)

Securities, Commodity Contracts, and Other Financial Investments and Related Activities

523110
Investment Banking & Securities Dealing
523120
Securities Brokerage
523130
Commodity Contracts Dealing
523140
Commodity Contracts Brokerage
523210
Securities & Commodity Exchanges
523900
Other Financial Investment Activities (including portfolio management & investment advice)

Insurance Carriers and Related Activities

524140
Direct Life, Health, & Medical Insurance Carriers
524150
Direct Insurance (except Life, Health, & Medical) Carriers
524210
Insurance Agencies & Brokerages
524290
Other Insurance Related Activities (including third-party administration of insurance and pension funds)

Funds, Trusts, and Other Financial Vehicles

525100
Insurance & Employee Benefit Funds
525910
Open-End Investment Funds (Form 1120-RIC)
525920
Trusts, Estates, & Agency Accounts
525990
Other Financial Vehicles (including mortgage REITS & closed-end investment funds)

“Offices of Bank Holding Companies” and “Offices of Other Holding Companies” are located under Management of Companies (Holding Companies) on next page.

Real Estate and Rental and Leasing

Real Estate

531110
Lessors of Residential Buildings & Dwellings (including equity REITs)
531120
Lessors of Nonresidential Buildings (except Miniwarehouses) (including equity REITs)
531130
Lessors of Miniwarehouses & Self-Storage Units (including equity REITs)
531190
Lessors of Other Real Estate Property (including equity REITs)
531210
Offices of Real Estate Agents & Brokers
531310
Real Estate Property Managers
531320
Offices of Real Estate Appraisers
531390
Other Activities Related to Real Estate

Rental and Leasing Services

532100
Automotive Equipment Rental & Leasing
532210
Consumer Electronics & Appliances Rental
532281
Formal Wear & Costume Rental
532282
Video Tape & Disc Rental
532283
Home Health Equipment Rental
532284
Recreational Goods Rental
532289
All Other Consumer Goods Rental
532310
General Rental Centers
532400
Commercial & Industrial Machinery & Equipment Rental & Leasing

Lessors of Nonfinancial Intangible Assets (except copyrighted works)

533110
Lessors of Nonfinancial Intangible Assets (except copyrighted works)

Professional, Scientific, and Technical Services

Legal Services

541110
Offices of Lawyers
541190
Other Legal Services

Accounting, Tax Preparation, Bookkeeping, and Payroll Services

541211
Offices of Certified Public Accountants
541213
Tax Preparation Services
541214
Payroll Services
541219
Other Accounting Services

Architectural, Engineering, and Related Services

541310
Architectural Services
541320
Landscape Architecture Services
541330
Engineering Services
541340
Drafting Services
541350
Building Inspection Services
541360
Geophysical Surveying & Mapping Services
541370
Surveying & Mapping (except Geophysical) Services
541380
Testing Laboratories

Specialized Design Services

541400
Specialized Design Services (including interior, industrial, graphic, & fashion design)

Computer Systems Design and Related Services

541511
Custom Computer Programming Services
541512
Computer Systems Design Services
541513
Computer Facilities Management Services
541519
Other Computer Related Services

Other Professional, Scientific, and Technical Services

541600
Management, Scientific, & Technical Consulting Services
541700
Scientific Research & Development Services
541800
Advertising & Related Services
541910
Marketing Research & Public Opinion Polling
541920
Photographic Services
541930
Translation & Interpretation Services
541940
Veterinary Services
541990
All Other Professional, Scientific, & Technical Services

Management of Companies (Holding Companies)

551111
Offices of Bank Holding Companies
551112
Offices of Other Holding Companies

Administrative and Support and Waste Management and Remediation Services

Administrative and Support Services

561110
Office Administrative Services
561210
Facilities Support Services
561300
Employment Services
561410
Document Preparation Services
561420
Telephone Call Centers
561430
Business Service Centers (including private mail centers & copy shops)
561440
Collection Agencies
561450
Credit Bureaus
561490
Other Business Support Services (including repossession services, court reporting, & stenotype services)
561500
Travel Arrangement & Reservation Services
561600
Investigation & Security Services
561710
Exterminating & Pest Control Services
561720
Janitorial Services
561730
Landscaping Services
561740
Carpet & Upholstery Cleaning Services
561790
Other Services to Buildings & Dwellings
561900
Other Support Services (including packaging & labeling services, & convention & trade show organizers)

Waste Management and Remediation Services

562000
Waste Management & Remediation Services

Educational Services

611000
Educational Services (including schools, colleges, & universities)

Health Care and Social Assistance

Offices of Physicians and Dentists

621111
Offices of Physicians (except mental health specialists)
621112
Offices of Physicians, Mental Health Specialists
621210
Offices of Dentists

Offices of Other Health Practitioners

621310
Offices of Chiropractors
621320
Offices of Optometrists
621330
Offices of Mental Health Practitioners (except Physicians)
621340
Offices of Physical, Occupational & Speech Therapists, & Audiologists
621391
Offices of Podiatrists
621399
Offices of All Other Miscellaneous Health Practitioners

Outpatient Care Centers

621410
Family Planning Centers
621420
Outpatient Mental Health & Substance Abuse Centers
621491
HMO Medical Centers
621492
Kidney Dialysis Centers
621493
Freestanding Ambulatory Surgical & Emergency Centers
621498
All Other Outpatient Care Centers

Medical and Diagnostic Laboratories

621510
Medical & Diagnostic Laboratories

Home Health Care Services

621610
Home Health Care Services

Other Ambulatory Health Care Services

621900
Other Ambulatory Health Care Services (including ambulance services & blood & organ banks)

Hospitals

622000
Hospitals

Nursing and Residential Care Facilities

623000
Nursing & Residential Care Facilities

Social Assistance

624100
Individual & Family Services
624200
Community Food & Housing, & Emergency & Other Relief Services
624310
Vocational Rehabilitation Services
624410
Child Day Care Services

Arts, Entertainment, and Recreation

Performing Arts, Spectator Sports, and Related Industries

711100
Performing Arts Companies
711210
Spectator Sports (including sports clubs & racetracks)
711300
Promoters of Performing Arts, Sports, & Similar Events
711410
Agents & Managers for Artists, Athletes, Entertainers, & Other Public Figures
711510
Independent Artists, Writers, & Performers

Museums, Historical Sites, and Similar Institutions

712100
Museums, Historical Sites, & Similar Institutions

Amusement, Gambling, and Recreation Industries

713100
Amusement Parks & Arcades
713200
Gambling Industries
713900
Other Amusement & Recreation Industries (including golf courses, skiing facilities, marinas, fitness centers, & bowling centers)

Accommodation and Food Services

Accommodation

721110
Hotels (except Casino Hotels) & Motels
721120
Casino Hotels
721191
Bed & Breakfast Inns
721199
All Other Traveler Accommodation
721210
RV (Recreational Vehicle) Parks & Recreational Camps
721310
Rooming & Boarding Houses Dormitories, & Workers’ Camps

Food Services and Drinking Places

722300
Special Food Services (including food service contractors & caterers)
722410
Drinking Places (Alcoholic Beverages)
722511
Full Service Restaurants
722513
Limited Service Restaurants
722514
Cafeterias and Buffets
722515
Snack and Non-alcoholic Beverage Bars

Other Services

Repair and Maintenance

811110
Automotive Mechanical & Electrical Repair & Maintenance
811120
Automotive Body, Paint, Interior, & Glass Repair
811190
Other Automotive Repair & Maintenance (including oil change & lubrication shops & car washes)
811210
Electronic & Precision Equipment Repair & Maintenance
811310
Commercial & Industrial Machinery & Equipment (except Automotive & Electronic) Repair & Maintenance
811410
Home & Garden Equipment & Appliance Repair & Maintenance
811420
Reupholstery & Furniture Repair
811430
Footwear & Leather Goods Repair
811490
Other Personal & Household Goods Repair & Maintenance

Personal and Laundry Services

812111
Barber Shops
812112
Beauty Salons
812113
Nail Salons
812190
Other Personal Care Services (including diet & weight reducing centers)
812210
Funeral Homes & Funeral Services
812220
Cemeteries & Crematories
812310
Coin-Operated Laundries & Drycleaners
812320
Drycleaning & Laundry Services (except Coin-Operated)
812330
Linen & Uniform Supply
812910
Pet Care (except Veterinary) Services
812920
Photofinishing
812930
Parking Lots & Garages
812990
All Other Personal Services

Religious, Grantmaking, Civic, Professional, and Similar Organizations

813000
Religious, Grantmaking, Civic, Professional, & Similar Organizations (including condominium and homeowners associations)

How to Get California Tax Information

(Keep This Page For Future Use)

Your Rights as a Taxpayer

Our goal at the FTB is to make certain that your rights are protected so that you will have the highest confidence in the integrity, efficiency, and fairness of our state tax system. FTB 4058, California Taxpayers’ Bill of Rights, includes information on your rights as a California taxpayer, the Taxpayers’ Rights Advocate Program, and how you can request written advice from the FTB on whether a particular transaction is taxable. See “Where to Get Tax Forms and Publications” below.

Where to Get Tax Forms and Publications

By Internet

You can download, view, and print California tax forms and publications at ftb.ca.gov/forms.

Access other state agencies’ websites at ca.gov.

By phone

To order current year California tax forms and publications, call our automated phone service. Refer to the list in your tax booklet and find the code for the form you want to order. Call 800.338.0505 and follow the recorded instructions.

Allow two weeks to receive your order. If you live outside California, allow three weeks to receive your order.

In person

Many post offices and libraries provide free California personal income tax booklets during the filing season.

Employees at libraries, post offices, and quick print businesses cannot provide tax information or assistance.

By mail

Write to:

TAX FORMS REQUEST UNIT
FRANCHISE TAX BOARD
PO BOX 307
RANCHO CORDOVA CA 95741-0307

Letters

If you write to us, be sure your letter includes your federal employer identification number (FEIN), California Secretary of State (SOS) file number, California corporation number, social security number (SSN) or individual taxpayer identification number (ITIN), your daytime and evening telephone numbers, and a copy of the notice (if applicable). Send your letter to:

CORRESPONDENCE, ANALYSIS, SUPPORT
AND EDUCATION SECTION MS F283
FRANCHISE TAX BOARD
PO BOX 1468
SACRAMENTO CA 95812-1468

We will respond to your letter within ten weeks. In some cases, we may need to call you for additional information.

Do not attach correspondence to your tax return unless the correspondence relates to an item on your tax return.

Internet and Telephone Assistance

Telephone assistance is available year-round from 7 a.m. until 5 p.m. Monday through Friday, except holidays. Hours subject to change.

Website:
ftb.ca.gov
Telephone:
800.852.5711 from within the United States
916.845.6500 from outside the United States
TTY/TDD:
800.822.6268 for persons with hearing or speech disability
711 or 800.735.2929 California relay service

Asistencia Por Internet y Teléfono

Asistencia telefónica está disponible durante todo el año desde las 7 a.m. hasta las 5 p.m. de lunes a viernes, excepto días feriados. Las horas están sujetas a cambios.

Sitio web:
ftb.ca.gov
Teléfono:
800.852.5711 dentro de los Estados Unidos
916.845.6500 fuera de los Estados Unidos
TTY/TDD:
800.822.6268 para personas con discapacidades auditivas o del habla
711 ó 800.735.2929 servicio de relevo de California

EZ Contact Information

For business eligibility or zone related information, including questions regarding EZ geographic boundaries and designation period dates, contact the HCD at hcd.ca.gov and search for directory of zone contacts to find Directory of Economic Development Areas.

For information that is zone-specific but not tax-specific, contact the HCD at:

DEPARTMENT OF HOUSING &
COMMUNITY DEVELOPMENT
DIVISION OF FINANCIAL ASSISTANCE
ENTERPRISE ZONE PROGRAMS
2020 WEST EL CAMINO AVENUE SUITE 650
SACRAMENTO, CA 95833

Mailing address

PO BOX 952054
SACRAMENTO CA 94252-2054

Website: hcd.ca.gov
Telephone: 916.274.0575
Fax: 916.263.2764

or for tax-specific information contact:

FRANCHISE TAX BOARD
Website: ftb.ca.gov
Telephone: 916.845.3464