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Changes to 2011 Forms

Updates to the Form 3541 on 03/07/2014 –– California Motion Picture and Television Production Credit

We replaced text on:

  1. Page 1 – Column 1, What’s New section
  2. Page 2 – Column 1, D Limitations, Paragraph 2
  3. Page 2 – Column 2, E Carryover, Paragraph 1

Previous Version

  1. Note: new text added.
  2. The credit cannot reduce regular tax below the tentative minimum tax. For more information, get Schedule P (100, 100W, 540, 540NR, or 541), Alternative Minimum Tax and Credit Limitations.
  3. If the available credit exceeds the current year tax liability or is limited by tentative minimum tax, the unused credit may be carried over for six years or until the credit is exhausted, whichever occurs first.

Revised Version

  1. For taxable years beginning on or after January 1, 2011, the California Motion Picture and Television Production Credit can reduce tax below the tentative minimum tax (TMT) for corporations. For more information, see Revenue & Taxation Code (R&TC) Section 23036 or get Schedule P (100), Alternative Minimum Tax and Credit Limitations – Corporations.
  2. For corporate taxpayers, the credit can reduce the regular tax below the tentative minimum tax. For individual taxpayers, the credit cannot reduce regular tax below the tentative minimum tax. For more information, get Schedule P (100, 100W, 540, 540NR, or 541), Alternative Minimum Tax and Credit Limitations.
  3. If the available credit exceeds the current year tax liability or is limited by tentative minimum tax (individual taxpayers only), the unused credit may be carried over for six years or until the credit is exhausted, whichever occurs first.

Reason for the changes

AB 1173 (Chaptered 10/04/13) amended R&TC Section 23036 retroactively to allow corporate taxpayers to use the credit to reduce regular tax below tentative minimum tax for taxable years beginning on or after January 1, 2011.

Impact

The amount of credit a corporate taxpayer can claim against tax liability may increase, thereby resulting in decreased tax liability.

Back to Tax Form Changes for 2011


Updates to the Form 3541 on 02/29/2012 –– California Motion Picture and Television Production Credit

We replaced text on:

  1. Form 3541, Side 1, Line 1.
  2. Form 3541 Instructions, Page 2, Column 2, Line 1 and Line 2.

Previous Version

  1. Current year generated credit. See instructions………………… 1 ______________
  2. Line 1 – Current year generated credit. If you received Form M from CFC, enter the full amount of credit allocated to you by the CFC as shown on Form M. If you received the credit from a pass through entity, purchased the credit from a qualified taxpayer, or received the credit through an assignment from another corporation pursuant to R&TC Section 23685, do not enter the amounts on this line. Instead, enter these amounts on line 2, line 3, or line 4, respectively.

    Line 2 – Credit received from pass through entities. Add the pass through credit amounts received from S corporations, estates and trusts, partnerships, or LLCs taxed as a partnership, and enter the total on this line. Attach a schedule showing the names and taxpayer identification numbers of the entities from which the credits were passed through to you.

Revised Version

  1. a Current year generated credit. See instructions………………… 1a ______________
    b Credit certificate number ______________
  2. Line 1a – Current year generated credit. If you received Form M from CFC, enter the full amount of credit allocated to you by the CFC as shown on Form M. If you received more than one Form M during the taxable year, add the credit amounts from all Form Ms and enter the total on this line. If you received the credit from a pass through entity, purchased the credit from a qualified taxpayer, or received the credit through an assignment from another corporation pursuant to R&TC Section 23685, do not enter the amounts on this line. Instead, enter these amounts on line 2, line 3, or line 4, respectively.

    Line 1b – Enter the credit certificate number from Form M for the current year generated credit entered on line 1a. If you reported multiple credits on line 1a, list all credit certificate numbers on this line.

    Line 2 – Credit received from pass through entities. Add the pass through credit amounts received from S corporations, estates and trusts, partnerships, or LLCs taxed as a partnership, and enter the total on this line. Attach a schedule showing the taxpayer names and identification numbers of the entities from which the credits were passed through to you, the credit certificate number from the original certificate issued by the CFC, and the ownership percentage from the pass-through entity.

Reason for the changes

We made the changes to enable taxpayers to properly report all current year generated credit and all credit received from pass through entities.

Impact

No tax impact .

Back to Tax Form Changes for 2011