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State of California Franchise Tax Board

Changes to 2012 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, above Important Information 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. What’s New
    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 2012

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