forms & instructions this booklet contains: 3809 … · and reform act of 1998 (public law...

STATE OF CALIFORNIAFRANCHISE TAX BOARD

CaliforniaForms & Instructions

3809This booklet contains:

Form FTB 3809, Targeted Tax Area Deduction and CreditSummary

2000Targeted Tax Area Business Booklet

Members of the Franchise Tax Board

Kathleen Connell, ChairDean Andal, Member

B. Timothy Gage, Member

FTB 3809 Booklet 2000

Instructions for Targeted Tax Area Businesses — Form FTB 3809References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 1998, and to the California Revenue and Taxation Code (R&TC).

ContentsGeneral Information . . . . . . . . . . . . . . . . . 2Hiring Credit . . . . . . . . . . . . . . . . . . . . . . . 3Hiring Credit & Recapture Worksheet . . . . 5Sales or Use Tax Credit . . . . . . . . . . . . . . . 6Sales or Use Tax Credit Worksheet . . . . . . 7Business Expense Deduction . . . . . . . . . . . 8Business Expense Deduction & Recapture

Worksheet . . . . . . . . . . . . . . . . . . . . . . 9Doing Business Totally Within the

Targeted Tax Area or Within andOutside the Targeted Tax Area . . . . . . . 10

Apportionment Worksheet . . . . . . . . . . . 11Net Operating Loss (NOL) Computation

and Loss Limitations . . . . . . . . . . . . . . 13Income or Loss Worksheet . . . . . . . . . . . 15NOL Worksheet . . . . . . . . . . . . . . . . . . . 16Computation of Credit Limitations . . . . . . 18Standard Industrial Classification

Manual, 1987 Edition (Partial Listing) 21Codes for Principal Business Activity . . . 24Form FTB 3809, Targeted Tax Area

Deduction and Credit Summary . . . . . . 27Computation of Credit Limitations

Worksheet . . . . . . . . . . . . . . . . . . . . . 28How to Get California Tax Information . . . 31Automated Toll-Free Phone Service . . . . . 32

General InformationCalifornia has established four types ofeconomic development areas (EDAs) thathave related tax incentives:• Enterprise Zones;• Local Agency Military Base Recovery Areas

(LAMBRAs);• Manufacturing Enhancement Areas

(MEAs); and• The Targeted Tax Area (TTA).A business may qualify for special deductionsand credits if it operates or invests in a tradeor business located within the geographicboundaries of one of these EDAs.California statutes require the Franchise TaxBoard (FTB) to provide information to theCalifornia Legislature and the Trade andCommerce Agency (TCA) regarding thenumber of businesses using the EDA taxincentives, types of EDA tax incentives beingused, and the EDAs in which the businessesare claiming the tax incentives.Note: To help us meet this requirement,please complete items A through J on formFTB 3809, Targeted Tax Area Deduction andCredit Summary, as applicable.For information about:• Enterprise zone tax incentives, get

FTB 3805Z, Enterprise Zone BusinessBooklet;

• LAMBRA tax incentives, get FTB 3807,Local Agency Military Base Recovery AreaBusiness Booklet; or

• The MEA hiring credit, get FTB 3808,Manufacturing Enhancement AreaBusiness Booklet.

Conformity. In general, California tax lawconforms to the Internal Revenue Code (IRC)as of January 1, 1998. However, there arecontinuing differences between California andfederal tax law. California has not conformed tomost of the changes made to the IRC by thefederal Internal Revenue Service Restructuringand Reform Act of 1998 (Public Law 105-206)and has not conformed to any of the changesmade by the Tax and Trade Relief Extension Actof 1998 (Public Law 105-277), the Miscella-neous Trade and Technical Corrections Act of1999 (Public Law 106-36), and the Ticket toWork and Work Incentives Improvement Act of1999 (Public Law 106-170).Income vs. Taxable. Effective for yearsbeginning on or after January 1, 2000,references to "income year" were replacedwith "taxable year" in all provisions of theBank and Corporation Tax Law (B&CTL), theAdministration of the Franchise and IncomeTax Law (AFITL), and the Personal Income TaxLaw (PITL). Therefore, all forms and instruc-tions have been revised to replace the term"income year" with "taxable year." Whenreferring to an income measurement periodbeginning before January 1, 2000, the term"taxable year" should be interpreted to mean"income year" as that term applied for thoseperiods prior to January 1, 2000.

A PurposeUse this booklet to determine the correctamount of deductions and credits that abusiness may claim for operating or investingin a trade or business within the TTA.Complete the worksheets in this booklet foreach deduction or credit for which thebusiness is eligible. Then enter the totaldeductions and credits on form FTB 3809.

B How to Claim Deductionsand Credits

To claim any TTA deduction or credit, thebusiness must attach form FTB 3809(included in this booklet) to its California taxreturn.Attach a separate form FTB 3809 for eachbusiness you operate or invest in that islocated within the TTA.To assist with the processing of the tax return,indicate that the business operates or investswithin the TTA by doing the following:Form 540 and Write “TTA” in the top leftForm 540NR margin of Form 540 orfilers: Form 540NR, Side 1.Form 100 filers: Claim TTA tax incentives

on Form 100, line 14,line 20, and line 24through line 27, asapplicable.

Form 100S filers: Claim TTA tax incentiveson Form 100S, line 12,line 19, and line 23through line 26, asapplicable.

Form 100W filers: Claim TTA tax incentiveson Form 100W, line 14,line 20, and line 24through line 27, asapplicable.

Form 109 filers: Check the “Yes” box forthe enterprise zone,LARZ, LAMBRA, MEA,or TTA question G on thetop of Form 109, Side 1.

Note: Keep all completed worksheets andsupporting documents for your records.

C Targeted Tax AreaDesignation

The purpose of the TTA is to stimulatedevelopment in a selected economically-depressed area. Special tax incentives areavailable to qualified entities and individualsthat operate or invest in a business locatedwithin the designated TTA.Businesses operating within the TTA do notneed to pre-qualify or receive prior approvalto take advantage of these special taxincentives.All of the incorporated cities in Tulare Countyand portions of the unincorporated areas ofTulare County received final designation as theTTA effective November 1, 1998. The eightincorporated cities in Tulare County are:

• Dinuba• Exeter• Farmersville• Lindsay• Porterville• Tulare• Visalia• Woodlake

Caution: The special tax incentives availableto businesses operating within the TTA canonly be taken for costs paid or incurred on orafter November 1, 1998, and before thedesignation expires.

D Important ConsiderationsTTA tax incentives apply only to:• Qualified assets purchased and placed in

service on or after November 1, 1998;• Qualified employees hired on or after

November 1, 1998; and/or• Net operating losses (NOLs) for taxable

years beginning on or afterNovember 1, 1998.

EligibilityTo qualify for any of the tax incentivesdescribed above, a taxpayer must meet bothof the following requirements:


1. Be engaged in a trade or business withinthe TTA; and

2. Be engaged in a line of business describedin Standard Industrial Classification Codes2000 to 2099, inclusive; 2200 to 3999,inclusive; 4200 to 4299, inclusive; 4500 to4599, inclusive; and 4700 to 5199,inclusive, of the Standard IndustrialClassification Manual published by theUnited States Office of Management andBudget, 1987 Edition.

Note: Although the FTB implemented the newPrincipal Business Activity (PBA) code chartthat is based on the North American IndustryClassification System (NAICS), 1997 Edition,the Standard Industrial Classification must beused when qualifying for the TTA taxincentives. The PBA and NAICS codes cannotbe used.In the case of any pass-through entity, thedetermination of whether a taxpayer is aqualified taxpayer for the business expensededuction, hiring credit, and sales or use taxcredit, is made at the entity level. Anybusiness expense deduction, hiring credit, orsales or use tax credit that is allowed to thepass-through entity is also passed through tothe partners or shareholders.

E Geographic BoundariesThe geographic boundaries of the TTA areused to determine whether tax incentives areavailable to a business in a specified location.Further information about the geographicboundaries of the TTA, Form TCA EZ1(Enterprise Zone, LAMBRA, and Targeted TaxArea Hiring Voucher), or other informationnot related to the tax incentives is availablefrom:

ENTERPRISE ZONE PROGRAMSCA TRADE AND COMMERCE AGENCY801 K STREET SUITE 1700SACRAMENTO CA 95814Telephone: (916) 324-8211FAX: (916) 322-7214Website: www.commerce.ca.gov

If your business is located within and outsidethe TTA, see Part IV for instructions on howto apportion income.

F Forms TableThe titles of forms referred to in this bookletare:Form 100 California Corporation

Franchise or Income Tax ReturnForm 100S California S Corporation

Franchise or Income Tax ReturnForm 100W California Corporation Franchise

or Income Tax Return —Water’s-Edge Filers

Form 109 California Exempt OrganizationBusiness Income Tax Return

Form 540 California Resident Income TaxReturn

Form 540NR California Nonresident or Part-Year Resident Income TaxReturn

Form 541 California Fiduciary Income Tax

ReturnForm 565 Partnership Return of IncomeForm 568 Limited Liability Company

Return of IncomeSchedule CA California Adjustments —

(540) ResidentsSchedule CA California Adjustments —

(540NR) Nonresidents or Part-YearResidents

Schedule P Alternative Minimum Tax andCredit Limitations

Schedule R Apportionment and Allocation ofIncome

FTB Pub. 1061 Guidelines for Corporationsfiling a Combined Report

Schedule C S Corporation Tax Credit(100S)

Schedule K-1 Shareholder’s Share of Income,(100S) Deductions, Credits, etc.

Schedule K-1 Beneficiary’s Share of Income,(541) Deductions, Credits, etc.

Schedule K-1 Partner’s Share of Income,(565) Deductions, Credits, etc.

Schedule K-1 Member’s Share of Income,(568) Deductions, Credits, etc.

Part I Hiring CreditQualified employers conducting a trade orbusiness within the TTA may claim the hiringcredit for a new employee who:• Was hired on or after November 1, 1998,

(see General Information C, Targeted TaxArea Designation);

• Spends at least 90% of his or her worktime (for the qualified employer) onactivities directly related to the conduct ofa trade or business located within the TTA;

• Performs at least 50% of the work (for thequalified employer) within the boundariesof the TTA; and

• Was at the time of hire:1. A person receiving or eligible to

receive subsidized employment,training, or services funded by thefederal Job Training Partnership Act(JTPA) or its successor;

2. A person eligible to be a voluntary ormandatory registrant under theGreater Avenues for IndependenceAct of 1985 (GAIN) or its successor;

3. A member of a targeted group asdefined in the federal Work Opportu-nity Tax Credit (WOTC) or itssuccessor;

4. An economically disadvantagedindividual 14 years of age or older;

5. A qualified dislocated worker;6. A disabled individual eligible for,

enrolled in, or who completed a staterehabilitation 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:

• Federal Supplemental SecurityIncome (SSI) benefits;

• Aid to Families with DependentChildren (AFDC);

• Food stamps; or• State and local general assistance;

12. A Native American; or13. A resident of the TTA.

Employers hiring qualified employees shouldget Form TCA EZ1 from the local agencyresponsible for verifying employee eligibility.Contact the local TTA coordinator for moreinformation on the local agency and verifica-tion process.The percentage of wages used to calculate thecredit depends on the number of years theemployee works for the employer in the TTA.The applicable percentage begins at 50% anddeclines 10% for each year of employment.After the fifth year of employment, no creditcan be generated.Wages that qualify for the hiring credit arethose wages paid or incurred to hire aqualified employee for the consecutive60-month period beginning on the first daythe employee commenced employment withthe employer. For an employer that operates abusiness that has regularly occurringseasonal or intermittent employmentdecreases and increases, reemployment of anemployee does not constitute commencementof employment for the qualified wages test.The credit is based on the smaller of thefollowing:• The actual hourly rate paid or incurred by

the employer for work performed by theemployee during the taxable year; or

• 150% of the minimum hourly wageestablished by the Industrial WelfareCommission.

Where the California minimum wage is higherthan the federal minimum wage, the Californiaminimum wage is used for purposes ofcomputing the TTA hiring credit. The estab-lished minimum wage after March 1, 1998, is$5.75 per hour. Effective January 1, 2001, theminimum wage will increase by $.50. The newminimum wage will be $6.25 per hour. Forpurposes of computing the TTA hiring credit,150% of the minimum wage is $8.62 per hour($9.37 beginning January 1, 2001).Example:Ray Smith was hired January 1, 2000.Ray's hourly rate for Month 1 was $7.00. Atthe beginning of Month 2, his hourly rateincreased to $8.00. For Month 3, Ray's hourlyrate increased to $9.00. The hourly rate thatqualifies for the credit is limited to 150% ofthe minimum wage, or currently $8.62 perhour.Month(s) Hours x Hourly = Qualified wages

per month rate per month1 175 $7.00 $1,225.002 170 8.00 $1,360.003 170 8.62 $1,465.40


Credit Limitations• The amount of hiring credit claimed may

not exceed the amount of tax on the TTAbusiness income in any year. UseWorksheet VI on Side 2 of form FTB 3809to compute the credit limitation.

• In the case where the business is qualifiedto take the TTA hiring credit as well asanother credit (e.g., enterprise zone, MEA,or LAMBRA) for the same wage expense,the business may only claim one credit forthat wage expense.

• The business may carry over any unusedhiring credit to future years until the creditis used. In the case of an S corporation,2/3 of the credit is lost and the remaining1/3 can be carried over if it cannot be usedin the current year.

For additional information about the treatmentof credits for S corporations, see Part VI.Record KeepingRetain a copy of Form TCA EZ1 to substanti-ate an individual's eligibility as a ‘’qualifiedemployee.’’ In addition, for each qualifiedemployee, keep a schedule of the first 60months 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% of theminimum wage;

• Location of the employee’s job site andduties performed;

• Records of any other federal or statesubsidies received for hiring the qualifiedemployee; and

• Total qualified wages per month for eachmonth of employment.

Instructions for Worksheet I —Hiring Credit & Recapture

Section A – Credit ComputationLine 1, column (a) – Enter the name of eachqualified employee. Attach additionalschedule(s) if necessary.Line 1, column (b) through column (d) –Enter in the appropriate column, the qualifiedwages paid or incurred during the taxable yearto each employee listed in column (a).

Line 2, column (b) through column (d) – Addthe amounts in each column.Line 3, column (b) through column (d) –Multiply the total in each column of line 2 bythe percentage in each column.Line 4 – Enter the amount from line 4 onform FTB 3809, Side 2, Worksheet VI, asfollows:• Part II, line 8B, column (b) for corpora-

tions, individuals, and estates and trusts;• Part III, line 10, column (b) for S corpora-

tions; or• Part IV, line 12, column (b) for corpora-

tions and S corporations subject to payingonly the minimum franchise tax.

Section B – Credit RecaptureThe employer must recapture the amount ofcredit attributable to an employee’s wages ifthe employer terminates the employee at anytime during the longer of:• The first 270 days of employment

(whether or not consecutive); or• 90 days of employment plus 270 calendar

days.Employers of seasonal employees mustrecapture the amount of credit attributable toa seasonal employee’s wages if the employerterminates employment before the completionof 270 days of employment during the60-month period beginning the day theemployee commences employment with theemployer.A “day of employment” means any day forwhich the employee receives wage compensa-tion (including a paid sick day, holiday, orvacation day).The employer must add to the current year’stax the amount of credit claimed in the year oftermination and all prior years in which thecredit was claimed for the terminatedemployee.Note: The credit recapture does not apply ifthe termination of employment was:• Voluntary on the part of the employee;• In response to misconduct of the

employee;• Caused by the employee becoming

disabled (unless the employee was able toreturn to work and the employer did notoffer to reemploy the individual);

• Carried out so that other qualifiedindividuals could be hired, creating a netincrease in both the number of qualifiedemployees and the number of hoursworked; or

• Due to a substantial reduction in theemployer’s trade or business operations.

Note: Enter the name(s) of employee(s) evenif one of the above exceptions to recapture ismet.Line 1, column (a) – Enter the name of theterminated employee(s). Attach additionalschedule(s) if necessary.Line 1, column (b) – Enter the amount ofcredit recapture for each employee listed incolumn (a).Line 2 – Enter the amount from line 2,column (b) on form FTB 3809, Side 1, Part V,line 5.Also, include the amount of hiring creditrecapture on your California tax return orschedule as follows:• Form 100, Schedule J, line 5;• Form 100S, Schedule J, line 5 and

Schedule K-1 (100S), line 23;• Form 100W, Schedule J, line 5;• Form 109, Schedule K, line 4;• Form 540, line 36;• Form 540NR, line 45;• Form 541, line 21b and Schedule K-1

(541), line 11e;• Form 565, Schedule K, line 22 and

Schedule K-1 (565), line 22; or• Form 568, Schedule K, line 22 and

Schedule K-1 (568), line 22.Indicate that you included the hiring creditrecapture on your tax return by writing“FTB 3809” in the space provided on theschedule or form.Partnerships and limited liability companies(LLCs) treated as partnerships must identifythe recapture amounts for their partners andmembers on Schedule K-1 (565 or 568).S corporation shareholders must recapturethe portion of the credit that was previouslyclaimed, based on the terminated employee’swages. S corporations must also identify therecapture amount for shareholders onSchedule K-1 (100S). This amount will differfrom the amount recaptured by theS corporation on Form 100S, Schedule J.


Worksheet I Hiring Credit & Recapture — Targeted Tax AreaSection A Credit Computation

Qualified wages paid or incurred for year of employment(a) (b) (c) (d) (e) (f)

Employee’s name 1st year 2nd year 3rd year 4th year 5th year1

2 Total. See instructions . . . . . . . . . . . . . . . ..50 .40 .30 .20 .10

3 Multiply line 2 by the percentage for eachcolumn. See instructions . . . . . . . . . . . . . .

4 Add the amounts on line 3, column (b) through column (d). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Note: You cannot take the TTA hiring credit as well as another credit for the same wage expense.

Section B Credit Recapture(a) (b)

Terminated employee’s name Recapture amount1

2 Total amount of credit recapture. Add the amount in column (b). See instructions for where toreport on your California tax return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2


Part II Sales or Use Tax CreditIndividuals, estates or trusts, partnerships,and LLCs treated as partnerships may claiman annual credit equal to the sales or use taxpaid or incurred to purchase up to $1 millionof qualified property per taxable year.Corporations may claim a credit equal to thesales or use tax paid or incurred to purchaseup to $20 million of qualified property pertaxable year. Individuals who are S corpora-tion shareholders may claim their pro-ratashare of pass-through credit to the extent theS corporation paid or incurred sales or usetax to purchase up to $1 million of qualifiedproperty. See the example in the third columnof this page.Qualified property is machinery or machineryparts used to:• Manufacture, process, fabricate, or

otherwise assemble a product;• Produce renewable energy resources; or• Control air or water pollution.In addition, qualified property is:• Data processing and communications

equipment including, but not limited to,computers, computer-automated draftingsystems, copy machines, telephonesystems, and fax machines; and

• Motion picture manufacturing equipmentcentral to production and postproductionincluding, but not limited to, cameras,audio recorders, and digital image andsound processing equipment.

The business must use the propertyexclusively within the boundaries of the TTA.Qualified property must be purchased andplaced in service after the TTA received itsdesignation.The use tax paid or incurred on purchases ofproperty outside California qualifies for thecredit only if property of a comparable qualityand price was not timely available in Californiaat the time it was purchased.Leased PropertyThe sales tax paid or incurred on qualifiedproperty being purchased using a financial(conditional sales) contract qualifies for thesales or use tax credit.To determine whether the lease qualifies as apurchase rather than a true lease, seeRevenue Ruling 55-540, 1955-2 C.B. 39, andFTB Legal Ruling 94-2, March 23, 1994.

Credit Limitations• The amount of sales or use tax credit

claimed may not exceed the amount of taxon the TTA business income in any year.After completing Worksheet II on page 7,use Worksheet VI on Side 2 of formFTB 3809 to compute the credit limitation.

• Any unused credit may be carried over andapplied against the tax on TTA businessincome in future years until exhausted.

• In the case where the business is qualifiedto take the TTA sales or use tax credit aswell as another state credit (e.g. enterprisezone sales or use tax credit, manufactur-ers’ investment credit, or LAMBRA salesor use tax credit) for the same piece ofproperty, the business may only claim onecredit for that property.

DepreciationAny taxpayer that claims this credit cannotincrease the basis of the qualified propertywith respect to the sales or use tax paid orincurred in connection with the purchase ofqualified property.To compute the difference between Californiaand federal depreciation, use the followingforms or schedules:• Form 100 or Form 100W filers –

FTB 3885, Corporation Depreciation andAmortization;

• Form 100S filers – Schedule B (100S),S Corporation Depreciation andAmortization;

• Form 109 filers – Form 109, Schedule J,Depreciation. Note: Exempt trusts useFTB 3885F, Depreciation and Amortization;

• Form 540 and Form 540NR filers –FTB 3885A, Depreciation and Amortization— Individuals;

• Form 541 filers – FTB 3885F, Depreciationand Amortization — Fiduciaries;

• Form 565 filers – FTB 3885P, Depreciationand Amortization — Partnerships; or

• Form 568 filers – FTB 3885L, Depreciationand Amortization — Limited LiabilityCompanies.

Record KeepingTo support the sales or use tax credit claimed,keep all records that document the purchaseof the qualified property, such as the salesreceipt and proof of payment. Additionally,keep all records that identify or describe:• The property purchased (such as serial

numbers, etc.);

• The amount of sales or use tax paid orincurred on its purchase;

• The location where it is used; and• If purchased from a manufacturer located

outside California, records to substantiatethat property of comparable quality andprice was not timely available for purchasein California.

Example:XYZ Inc., an S corporation, purchasesqualified property for $20 million ($20 m.).The sales tax rate is 6% (.06) and the entity-level tax rate is 1.5% (.015).The credit allowed XYZ Inc. and the depre-ciable basis of the qualified property forXYZ Inc. are figured as follows:

Depreciablebasis

Qualified property $20 m. $20 m.Sales tax paid

($20 m. x .06) 1.2 m. +1.2 m.Sales or use tax credit

allowed XYZ Inc. 1.2 m. (1.2 m.)Depreciable basis of qualified

property for XYZ Inc. $20 m.Credit allowed to offset the

entity-level tax ($1.2 m. x 1/3) $0.4 m.XYZ Inc. has two 50% shareholders. Thecredit passed through to the shareholders andthe depreciable basis of the qualified propertyfor the shareholders are figured as follows:

Depreciablebasis

Qualified property(purchased byXYZ Inc.) $20 m. $20 m.

Sales tax(paid by XYZ Inc.) 1.2 m. +1.2 m.

Maximum qualified costsfor sales or usetax credit 1 m.

Sales or use tax creditallowed the share-holders($1 m. x .06) .06 m. (.06 m.)

Depreciable basis of qualifiedproperty for theshareholders $21.14 m.

Total amount of credit allowedthe shareholders $.06 m.

Note: Each shareholder is allowed a passedthrough credit of $30,000 (.06 m. ÷ 2 =.03 m.) sales or use tax credit.


Instructions for Worksheet II— Sales or Use Tax CreditLine 1, column (a) – List the items ofqualified property purchased during the year.For each item, provide the location (streetaddress and city) of its use. Attach additionalschedule(s) if necessary.Line 1, column (b) – Enter the cost of theproperty listed in column (a).

Line 1, column (c) – Enter the amount ofsales or use tax paid or incurred on theproperty listed in column (a).Line 2, column (b) – Add the amounts inline 1, column (b).Caution: This amount cannot exceed$1 million for individuals, estates and trusts,partnerships, or LLCs treated as partnershipsor $20 million for corporations per taxableyear. When computing the amount of credit topass through to S corporation shareholders,use $1 million.

Line 2, column (c) – Add the amounts inline 1, column (c). Enter the total here and onform FTB 3809, Side 2, Worksheet VI, asfollows:• Part II, line 9B, column (b) for corpora-

tions, individuals, and estates and trusts;• Part III, line 11, column (b) for S corpora-

tions; or• Part IV, line 13, column (b) for corpora-

tions and S corporations subject to payingonly the minimum franchise tax.

Caution: Only the sales or use tax paid orincurred on the cost of qualified property upto the limitations in column (b) previouslystated, may be claimed as a credit.

Worksheet II Sales or Use Tax Credit — Targeted Tax Area(a) (b) (c)

Property description and location Cost Sales or use tax

1

2 Total the amounts in column (b) and column (c). See instructions . . . . . . . . . . . . . . 2


Part III Business ExpenseDeductionCertain businesses conducting a qualifiedtrade or business within the TTA may elect totreat 40% of the eligible cost of qualifiedproperty as a business expense rather than acapital expense. For the year the property isplaced in service, the business may deductthe eligible cost in the current year rather thandepreciate it over several years.Note: The TTA business expense deduction isnot allowed for estates and trusts.Qualified property is any recovery propertythat is IRC Section 1245 property whichincludes, but is not limited to, tangiblepersonal property (excluding buildings) andmost equipment and furnishings acquired bypurchase for exclusive use within the TTA.Office supplies and other small nondepre-ciable items are not included.The maximum aggregate cost applicable tothe 40% deduction the business may claim inany taxable year is determined by the numberof taxable years that have elapsed since theTTA received its final designation. The TTAreceived final designation onNovember 1, 1998.

The maximum aggregate cost is:Taxable year of designation . . . . . . $100,0001st taxable year after designation . $100,0002nd taxable year after designation . . $75,0003rd taxable year after designation . . $75,000Each remaining taxable year

after designation . . . . . . . . . . . . . . $50,000ElectionThe business must elect to treat the cost ofqualified property as a business expense inthe year the property is first placed in service.However, the TTA business expense deductionis not allowed if the property was:• Transferred between members of an

affiliated group;• Acquired as a gift or inherited;• Traded for other property;• Received from a personal or business

relation as defined in IRC Section 267 or707(b); or

• Described in IRC Section 168(f).Note: The TTA business expense deductionmust be claimed by making an election on theoriginal return filed, and thus cannot beclaimed on an amended return. Such anelection cannot be revoked without the writtenconsent of the FTB.A husband and wife filing separate returnsmay each claim 50% of the allowablededuction. In the case of a partnership, the40% limitation applies to the partnership andto each partner.

DepreciationIf the business elects to deduct the amountcomputed in Worksheet III, Section A, as abusiness expense, the depreciable basis of theproperty must be reduced by the deduction.Subtract the amount claimed as a businessexpense from the basis or cost of the propertyand depreciate the remaining basis or cost.Normal depreciation is allowed on the cost ofthe property in excess of the expensedamount, starting with the taxable yearfollowing the taxable year the property wasplaced in service.Corporations may not claim the additionalfirst-year depreciation allowed under R&TCSection 24356 on any item of property if anyportion of it was deducted as a businessexpense. All other taxpayers cannot claim thededuction allowed under IRC Section 179 onany item of property if any portion of it wasdeducted as a business expense.To compute the difference between Californiaand federal depreciation, use the followingforms or schedules:• Form 100 and Form 100W filers –

FTB 3885, Corporation Depreciation andAmortization;

• Form 100S filers – Schedule B (100S),S Corporation Depreciation andAmortization;

• Form 109 filers – Form 109, Schedule J,Depreciation;

• Form 540 and Form 540NR filers –FTB 3885A, Depreciation and Amortization— Individuals;

• Form 565 filers – FTB 3885P, Depreciationand Amortization — Partnerships; or

• Form 568 filers – FTB 3885L, Depreciationand Amortization — Limited LiabilityCompanies.

Instructions for Worksheet III— Business Expense Deduction& Recapture

Section A – DeductionComputationLine 2, column (a) – Enter a description ofthe property and the location (street addressand city) of its use. Attach additionalschedule(s) if necessary.Line 2, column (b) – Enter the cost of theproperty listed in column (a).Line 5 – Enter the amount from line 5,column (b) on form FTB 3809, Side 1, Part II,line 2, and on your California tax return orschedule as follows:• Form 100 and Form 100W, line 14;• Form 100S, line 12, Form 100S,

Schedule K, line 8, and Schedule K-1(100S), line 8;

• Form 109, Part II, line 24;• Schedule CA (540), column B, on the

applicable line for your business activity;• Schedule CA (540NR), column B, on the

applicable line for your business activity;• Form 565, Schedule K, line 9 and


Schedule K-1 (568), line 9.Note: If filing Form 540 or Form 540NR,indicate that you are claiming the businessexpense deduction by writing “FTB 3809”above the dotted line to the left of the amountentered on Form 540, line 14 or Form 540NR,line 14.

Section B – DeductionRecaptureThe deduction is subject to recapture (addedback to income) if, before the close of thesecond taxable year after the property wasplaced in service, the property is sold,disposed of, or no longer used exclusively inthe TTA trade or business. In that case, add tocurrent year income the amount previouslydeducted for that property.Line 1, column (a) – Enter a description ofthe property. Attach additional schedule(s) ifnecessary.Line 1, column (b) – Enter the amount of thebusiness expense deduction claimed for eachproperty listed in column (a).Line 2 – Enter the total on form FTB 3809,Side 1, Part V, line 6, and on your Californiatax return or schedule as follows:• Form 100, line 14, as a negative amount;• Form 100S, line 12, as a negative amount,

Form 100S, Schedule K, line 6, andSchedule K-1 (100S), line 6;

• Form 100W, line 14, as a negativeamount;

• Form 109, Part I, line 12;• Schedule CA (540), column C, on the

applicable line for your business activity;• Schedule CA (540NR), column C, on the

applicable line for your business activity;• Form 565, Schedule K, line 7 and


Schedule K-1 (568), line 7.Note: If filing Form 540 or Form 540NR,indicate that you are recapturing the businessexpense deduction by writing “FTB 3809”above the dotted line to the left of the amountentered on Form 540, line 16 or Form 540NR,line 16.


Worksheet III Business Expense Deduction & Recapture — Targeted Tax Area

Section A Deduction Computation

1 The maximum aggregate deduction:• Taxable year of designation, enter $40,000;• 1st taxable year after designation, enter $40,000• 2nd taxable year after designation, enter $30,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

(a) (b)Property description and location Cost

2

3 Total. Add the amounts on line 2, column (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4 Multiply line 3 by 40% (.40) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Enter the smaller of line 1 or line 4. This is the maximum amount deductible as a business expense

for the TTA. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Section B Deduction Recapture

(a) (b)Property description Recapture amount

1

2 Total recapture amount. Add the amounts on line 1, column (b). See instructions . . . . . . . . . . . . . . . . . 2


Part IV Doing BusinessTotally Within the Targeted TaxArea or Within and Outside theTargeted Tax AreaTTA tax credits are limited to the tax onbusiness income attributable to operationswithin the TTA. The TTA deduction (NOL) islimited to business income attributable tooperations within the TTA. If the business islocated within and outside the TTA, thetaxpayer must determine the portion of totalbusiness operations that are attributable tothe TTA.

Business Income vs.Nonbusiness IncomeOnly business income is apportioned to theTTA to determine the incentive limitation. TTAtax credits are limited to tax on businessincome attributable to the operations withinthe TTA. The TTA deduction (NOL) is limitedto business income attributable to operationswithin the TTA.Business income is defined as income arisingfrom transactions and activities in the regularcourse of the trade or business. Businessincome includes income from tangible andintangible property if the acquisition,management, and disposition of the propertyconstitute integral parts of the regular trade orbusiness operations. Nonbusiness income isall income other than business income. GetTitle 18 Cal. Code Reg. Section 25120 forfurther references and examples of nonbusi-ness income.For an individual, business income includes,but is not limited to, California businessincome or loss from Schedules C, D, D-1 (orfederal Form 4797, Sales of BusinessProperty, if you did not have to file aSchedule D-1), E, and F, as well as wages. Besure to include casualty losses, disasterlosses, and any business deductions reportedon federal Form 1040 Schedule A as itemizeddeductions.In essence, all income which arises from theconduct of trade or business operations of ataxpayer is business income.Note: If you elected to carry back part or all ofyour current year disaster loss under IRCSection 165(i)(1), do not include the amountof the loss that was carried back in yourcurrent year business income for the TTA.Pass-through entities must report to theirshareholders, beneficiaries, partners, andmembers:1. The distributive (or pro-rata for

S corporations) share of the businessincome apportioned to the TTA; and

2. The distributive (or pro-rata forS corporations) share of the businesscapital gains and losses apportioned to theTTA included in item 1.

These items should be reported using theappropriate California schedules listed below:• Schedule K-1 (100S), line 23;• Schedule K-1 (541), line 11e;• Schedule K-1 (565), line 22; or• Schedule K-1 (568), line 22.

ApportionmentBusiness income is apportioned to the TTA bymultiplying the total California businessincome of the taxpayer by a fraction, thenumerator which is the property factor plusthe payroll factor, and the denominator whichis two. Loss is apportioned to the TTA bymultiplying the taxpayer's net businessoperating loss from all sources by a fraction,the numerator which is the property factorplus the payroll factor, and the denominatorwhich is two.Property FactorProperty is defined as the average value of allreal and tangible personal property owned orrented by the taxpayer and used during thetaxable year to produce business income.Note: Property is included in the factor if itwas available for use during the taxable year.Property owned by the business is valued atits original cost. Generally, original cost is thebasis of the property for federal income taxpurposes (prior to any federal adjustment) atthe time of acquisition by the business,adjusted for subsequent capital additions orimprovements and partial dispositionsbecause of sale or exchange. Allowance fordepreciation is not considered.Rented property is valued at eight times thenet annual rental rate. The net annual rentalrate for any item of rented property is the totalrent paid for the property, less total annualsubrental rates paid by subtenants.The numerator of the property factor is theaverage value of the taxpayer’s real andtangible personal property owned or rented bythe taxpayer and used within the TTA duringthe taxable year to produce TTA businessincome (column (b)).When determining income apportionment onWorksheet IV, Section A, the denominator ofthe property factor is the total average valueof all the taxpayer’s real and tangible personalproperty owned or rented and used during thetaxable year within California (column (a)).When determining loss apportionment onWorksheet IV, Section B, the denominator ofthe property factor is the total average valueof the taxpayer’s real and tangible personalproperty owned or rented and used during theyear in all business operation locations.Payroll FactorPayroll is defined as the total amount paid tothe business’s employees for compensationfor the production of business income duringthe taxable year.Compensation means wages, salaries,commissions, and any other form of

remuneration paid directly to employees forpersonal services.Payments made to independent contractors orany other person not properly classified as anemployee are excluded.Compensation Within the TTA.Compensation is considered to be within theTTA if any one of the following tests is met:• The employee’s services are performed

within the geographical boundaries of theTTA; or

• The employee’s services are performedwithin and outside the TTA, but theservices performed outside the TTA areincidental to the employee’s service withinthe TTA.

Note: Incidental means any temporary ortransitory service performed in connectionwith an isolated transaction.Compensation Within and Outside the TTA.If the employee’s services are performedwithin and outside the TTA, the employee’scompensation will be attributed to the TTA if:• The employee’s base of operations is

within the TTA; or• There is no base of operations in any other

part of the state in which some part of theservice is performed, but the place fromwhich the service is directed or controlledis within the TTA.

Base of operations is the permanent placefrom which employees start work andcustomarily return in order to receiveinstruction from the taxpayer or communica-tions from their customers or persons; toreplenish stock or other material; to repairequipment; or to perform any other functionsnecessary in the exercise of their trade orprofession at some other point or points.The numerator of the payroll factor is thetotal compensation paid to employees forworking within the TTA during the taxableyear (column (b)).When determining income apportionment onWorksheet IV, Section A, the denominator ofthe payroll factor is the taxpayer’s totalcompensation paid to employees working inCalifornia (column (a)).When determining loss apportionment onWorksheet IV, Section B, the denominator ofthe payroll factor is the taxpayer’s totalcompensation paid to employees working inall business operation locations.Corporations Which File a CombinedReport.Business income for each corporation doingbusiness in the TTA will be its businessincome assigned to California (see FTBPub. 1061 for further information oncombined reports and entity income assign-ment). The TTA property and payroll factorsused in the determination of TTA incomeincludes only the taxpayer’s Californiaamounts in the denominator.


Worksheet IV Apportionment — Targeted Tax AreaSection A Income ApportionmentUse Worksheet IV, Section A, if your business has net income (a) (b) (c)from sources within and outside the TTA. Total within Total within Percentage within the TTA

California the TTA (column (b) ÷ column (a))PROPERTY FACTOR1 Average yearly value of owned real and tangible personal

property used in the business (at original cost). See page 10for more information. Exclude property not connectedwith the business and the value of construction in progress.Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Machinery and equipment . . . . . . . . . . . . . . . . . . . . .Furniture and fixtures . . . . . . . . . . . . . . . . . . . . . . . .Delivery equipment . . . . . . . . . . . . . . . . . . . . . . . . . .Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other tangible assets (attach schedule) . . . . . . . . . . . .Rented property used in the business.

See page 10 for more information . . . . . . . . . . . . . .Total property values . . . . . . . . . . . . . . . . . . . . . . . .

PAYROLL FACTOR2 Employees’ wages, salaries, commissions, and other

compensation related to business income included inthe return.Total payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 Total percentage (sum of the percentages in column (c))4 Average apportionment percentage (1/2 of line 3).

Enter here and on form FTB 3809, Side 1, line 4 . . . . . .

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

Example – Computation of TTA incomeassigned to each entity operating withinthe TTA:Parent Corporation A has two subsidiaries,B and C. Corporations A and B operate withinthe TTA. The combined group operates withinand outside California and apportions itsincome to California using Schedule R. Thecombined group’s business income appor-tioned to California was $1,000,000. Corpora-tion A and B’s share of business incomeassigned to California is $228,000 and$250,000 respectively. Corporation A and B’sseparate TTA and separate California propertyand payroll factor amounts are shown on thispage.Business income apportioned to the TTA isdetermined as follows:

A BProperty FactorTTA Property $1,000,000 $ 800,000California Property $1,000,000 $1,200,000

Apportionment % 100% 66.66%Payroll FactorTTA Payroll $ 800,000 $ 800,000California Payroll $ 800,000 $1,000,000

Apportionment % 100% 80%Average Apport. % 100% 73.33%(Property + Payroll Factors)

2ApportionedBusiness Income $ 228,000 $ 250,000TTA Income $ 228,000 $ 183,333

Instructions for Worksheet IV— ApportionmentSection A – IncomeApportionmentNote: If the business operates solely withinthe TTA and all its property and payroll aresolely within the TTA, you do not have tocomplete this worksheet. Enter 100% (1.00)on line 4 of Sections A and B, column (c).

Use Worksheet IV, Section A, IncomeApportionment, to determine the amount ofbusiness income apportioned to the TTA. TheTTA business income determines the amountof the tax incentives that can be used.Only California source business income isapportioned to the TTA. A taxpayer’s TTAbusiness income is its California apportionedbusiness income multiplied by the specificTTA apportionment percentage.The TTA property and payroll factors used inthe determination of apportionable businessincome include only the taxpayer’s Californiaamounts in the denominator.

Section B – Loss ApportionmentUse Worksheet IV, Section B, Loss Apportion-ment, to determine your net operating lossapportioned to the TTA. A taxpayer’s TTA netoperating loss is its net business operatingloss from all sources multiplied by thespecific TTA apportionment percentagecomputed in Worksheet IV, Section B.The TTA property and payroll factors used inthe determination of the apportioned businessnet operating loss include worldwide amountsin the denominator.


Worksheet IV (continued)Section B Loss Apportionment (For the computation of current year net operating loss only)Use Worksheet IV, Section B, if your business has net losses (a) (b) (c)from sources within and outside the TTA. Total within and Total within Percentage within the TTA

outside the TTA the TTA (column (b) ÷ column (a))PROPERTY FACTOR1 Average yearly value of owned real and tangible personal

property used in the business (at original cost). See page 10for more information. Exclude property not connectedwith the business and the value of construction in progress.Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Machinery and equipment . . . . . . . . . . . . . . . . . . . . .Furniture and fixtures . . . . . . . . . . . . . . . . . . . . . . . . .Delivery equipment . . . . . . . . . . . . . . . . . . . . . . . . . .Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other tangible assets (attach schedule) . . . . . . . . . . . .Rented property used in the business.

See page 10 for more information . . . . . . . . . . . . . .Total property values . . . . . . . . . . . . . . . . . . . . . . . .

PAYROLL FACTOR2 Employees’ wages, salaries, commissions, and other

compensation related to business income included inthe return.Total payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 Total percentage (sum of the percentages in column (c))4 Average apportionment percentage (1/2 of line 3).

Enter here and on Worksheet V, Section B, line 4 . . . . . .

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


Part V Net Operating Loss (NOL)Computation and Loss LimitationsA TTA NOL generated by a business thatoperates or invests within the TTA can becarried forward for 15 years but may not becarried back. In addition, up to 100% of theNOL generated in the TTA can be carriedforward.The business cannot generate NOLs fromactivities within the TTA until the first taxableyear beginning on or after the date the TTA isofficially designated. The TTA received finaldesignation on November 1, 1998.Limitation. A TTA NOL deduction can onlyoffset business income attributable tooperations within the TTA.Election. Taxpayers must elect and designatethe carryover category (general or specific,enterprise zone, LAMBRA, or TTA NOL) on theoriginal return for the year of a loss and fileform FTB 3809 for each year in which a TTANOL deduction is being taken. The election isirrevocable.Note: If you elect the TTA NOL deduction, youare prohibited by law from carrying over anyother type of NOL from this year.To determine which type of NOL will providethe greatest benefit, businesses that havegeneral or specific, enterprise zone, LAMBRA,or TTA NOLs, or that may qualify for thespecial NOL treatment should estimate futureincome and complete Worksheet V and thefollowing forms or worksheets if applicable:• FTB 3805Q, Net Operating Loss (NOL)

Computation and NOL and Disaster LossLimitations — Corporations;

• FTB 3805V, Net Operating Loss (NOL)Computation and NOL and Disaster LossLimitations — Individuals, Estates andTrusts;

• FTB 3805Z, Enterprise Zone BusinessBooklet, Worksheet VI; or

• FTB 3807, Local Agency Military BaseRecovery Area Business Booklet,Worksheet V.

Alternative Minimum Tax. Taxpayers claiminga TTA NOL deduction must determine theirNOL for alternative minimum tax purposes.Use Schedule P (100, 100W, 540, 540NR, or541) to compute the NOL for alternativeminimum tax purposes.S Corporations. TTA NOLs incurred prior tobecoming an S corporation cannot be usedagainst S corporation income. See IRCSection 1371(b).However, an S corporation is allowed todeduct a TTA NOL incurred after the “S”election is made. An S corporation may usethe NOL as a deduction against incomesubject to the 1.5% entity-level tax (3.5% forfinancial S corporations). The expenses (andincome) giving rise to the loss are alsopassed through to the shareholders in theyear the loss is incurred.

NOL Carryover Amount – NonapportioningCorporations Operating Totally Withinthe TTAFor taxpayers with all payroll and propertywithin the TTA, the NOL carryover is deter-mined by computing the business loss thatresults from business activity within the TTA.NOL Carryover Amount – CorporationsOperating Within and Outside the TTAIf the business is located within and outsidethe TTA, the loss amount available forcarryover is determined by apportioning thetotal business loss of the corporation to theTTA pursuant to the provisions of R&TCChapter 17 (commencing withSection 25101), with certain modifications tothe apportioning factors. The apportionmentfactors include the property and payrollfactors, and compare TTA property andpayroll to total property and payroll. Thisapportionment factor calculation is done onWorksheet IV, Section B. The loss carryover isdeducted from income apportioned by eachbusiness to the TTA in subsequent years. Thiscalculation is done on Worksheet V, Section C.Corporations that are members of a unitarygroup filing a combined report must sepa-rately compute loss carryover for eachcorporation in the group (R&TCSection 25108) using their individualapportionment factors.Unlike the NOL treatment on a federalconsolidated return, a loss carryover for onemember included in a combined report maynot be applied to the intrastate apportionedincome of another member included in acombined report.For water’s-edge purposes, each corporation’sNOL carryover is limited to the amountdetermined by recomputing the income andfactors of the original worldwide combinedreporting group as if the water’s-edge electionhad been in force for the year of the loss. TheTTA NOL carryover may not be increased as aresult of the recomputation.

Instructions for Income or LossWorksheetUse the Income or Loss Worksheet onpage 15 to determine the amount to enter on:• Worksheet V, Section A, line 1;• Worksheet V, Section C, line 1 and line 6

(Form 540 and Form 540NR filers); and• Worksheet VI, Part I, line 1 and line 3.Do not include disaster losses in any amountsused in the table.Only California source business income isapportioned to the TTA. A taxpayer's TTAbusiness income is its California apportionedbusiness income computed using Schedule R,multiplied by the specific TTA apportionmentpercentage computed using Worksheet IV,Section A.

The first step is to determine which portion ofthe taxpayer’s net income is “businessincome” and which portion is “nonbusinessincome,” since only business income may beapportioned to the TTA. See Part IV, DoingBusiness Totally Within the Targeted Tax Areaor Within and Outside the Targeted Tax Area,on page 10 for a complete discussion ofbusiness and nonbusiness income.Business income or loss reported on federalForm 1040 Schedule C, C-EZ, E, F, and otherschedules are reported on line 6 throughline 9. Line 11 and line 12 report businessgains or losses reported on Schedule D andSchedule D-1. All business income and lossesshould be adjusted for any differencesbetween California and federal amounts asshown on the Schedule CA (540 or 540NR).

Loss Computation (Use tocompute TTA NOL forWorksheet V, Section A)Located Entirely Within the TTALine 6 – Line 9If your business operation reported on federalForm 1040 Schedule C, C-EZ, E, F, or otherschedule is entirely within the TTA, enter theincome or loss from this activity incolumn (a), and enter 1.00 in column (b).Line 11 and Line 12If the gain or loss reported on Schedule D orSchedule D-1 (as adjusted on Schedule CA(540 or 540NR)) was attributed to an assetused in an activity conducted entirely withinthe TTA, enter the gain or loss reported incolumn (a), and enter 1.00 in column (b).Located Within and Outside the TTALine 6 – Line 9If your business operation reported on federalForm 1040 Schedule C, C-EZ, E, F, or otherschedule is within and outside the TTA, enterthe income or loss from this activity incolumn (a). To determine the percentagefigure in column (b), complete Worksheet IV,Section B. Enter the figure on Worksheet IV,Section B, line 4, in column (b) of thisworksheet.Line 11 and Line 12If the gain or loss reported on Schedule D orSchedule D-1 (as adjusted on Schedule CA(540 or 540NR)) was attributed to an assetused in an activity conducted within andoutside the TTA, enter the gain or lossreported in column (a). To determine thepercentage figure in column (b), completeWorksheet IV, Section B. Enter the figure onWorksheet IV, Section B, line 4, in column (b)of this worksheet.


Income Computation (Use tocompute TTA income forWorksheet V, Section C andWorksheet VI)Located Entirely Within the TTALine 6 – Line 9If your business operation reported on federalForm 1040 Schedule C, C-EZ, E, F, or otherschedule is entirely within the TTA, enter theincome or loss from this activity withincolumn (a), and enter 1.00 in column (b).Line 11 and Line 12If the gain or loss reported on Schedule D orSchedule D-1 (as adjusted on Schedule CA(540 or 540NR)) was attributed to an assetused in an activity conducted entirely withinthe TTA, enter the gain or loss reported incolumn (a), and enter 1.00 in column (b).Located Entirely Within CaliforniaLine 6 – Line 9If your business operation reported on federalForm 1040 Schedule C, C-EZ, E, F, or otherschedule is entirely within California, enter theincome or loss from this activity incolumn (a). To determine the percentagefigure in column (b), complete Worksheet IV,Section A. Enter the figure on Worksheet IV,Section A, line 4, in column (b) of thisworksheet.Line 11 and Line 12If the gain or loss reported on Schedule D orSchedule D-1 (as adjusted on Schedule CA(540 or 540NR)) was attributed to an assetused in an activity conducted entirely withinCalifornia, enter the gain or loss reported incolumn (a). To determine the percentagefigure in column (b), complete Worksheet IV,Section A. Enter the figure on Worksheet IV,Section A, line 4 in column (b) of thisworksheet.Located Within and Outside the TTA andCaliforniaLine 6 – Line 9If your business operation reported on federalForm 1040 Schedule C, C-EZ, E, F, or otherschedule is within and outside the TTA andCalifornia, get Schedule R and complete line 1through line 13b. Enter the figure onSchedule R, line 13b in column (a) of thisworksheet. To determine the percentage figurein column (b), complete Worksheet IV,Section A. Enter the figure on Worksheet IV,Section A, line 4 in column (b) of thisworksheet.

Note: When computing Schedule R, disregardany reference to Form 100, Form 100W,Form 565, or Form 568. Also, disregard anyreference to Schedule R-3, Schedule R-4, orSchedule R-5, and skip line 11.Nonresidents that have an apportioningbusiness that operates within the TTA shouldhave already computed Schedule R, and canuse those amounts when that schedule isreferenced. Residents that have an apportion-ing business will not have completed aSchedule R for California income taxpurposes since they are taxed on income fromall sources. However, in order for residents todetermine their California source businessincome for purposes of the TTA calculation,they also must complete a Schedule R.Line 11 and Line 12If the gain or loss reported on Schedule D orSchedule D-1 (as adjusted on Schedule CA(540 or 540NR)) was attributed to an assetused in an activity conducted within andoutside the TTA and California, getSchedule R and complete Schedule R-1.Multiply the gain or loss reported by thepercentage on Schedule R-1, line 5 and enterthe result in column (a). To determine thepercentage figure in column (b), completeWorksheet IV, Section A. Enter the figure onWorksheet IV, Section A, line 4 in column (b)of this worksheet.

Part I Individual Income andExpense ItemsWagesTaxpayers with wages from a companylocated within and outside the TTA mustdetermine the TTA wage income by enteringthe percentage of their time in column (b)(during the period for which the wagesentered on line 1 were earned) that theyworked within the TTA. This percentage mustbe determined based on their record of timeand events such as a travel log or entries in adaily planner.

Part II Pass-Through Income orLossMultiple Pass-Through EntitiesIf you are a shareholder, beneficiary, partner,or member in multiple pass-through entities

with businesses located within and outsidethe TTA from which you received TTA taxincentives, see the example below forcomputing business income in the TTA.Example:

Trade orbusinessincomefromSchedule K-1 Entity’s TTA TTA

Pass-through (100S, 541, apportionment apportionedentity 565, or 568) percentage incomeABC, Inc. $40,000 80% $32,000A, B & C 30,000 10% 3,000ABC, LLC 10,000 50% 5,000

$40,000

Part III Taxpayer’s Trade orBusinessBusiness Income or LossUse business income or loss from federalForm 1040 Schedules C, C-EZ, E, and F, plusCalifornia adjustments from Schedule CA(540 or 540NR) for each trade or business.Also, include business capital gains andlosses from Schedule D and business gainsand losses from Schedule D-1.Line 14If you are computing the TTA NOL and theresult on the Income or Loss Worksheet,line 14, column (c) is a negative amount,enter this amount on Worksheet V, Section A,line 1. Note: If the amount is positive, you donot have a TTA NOL.If you are computing the TTA businessincome and the result on the Income or LossWorksheet, line 14, column (c) is a positiveamount and:• You have TTA NOL carryovers, enter the

amount on Worksheet V, Section C, line 1and line 6 (skip line 2 through line 5). Alsoenter the amount from the Income or LossWorksheet, line 14, column (c) onWorksheet VI, Part I, line 1 and line 3 (skipline 2) if you have TTA credits; or

• You do not have TTA NOL carryovers butyou do have TTA credits or creditcarryovers, enter the amount on Work-sheet VI, Part I, line 1 and line 3 (skipline 2).

Note: If the amount is negative, you do nothave any business income attributable to theTTA and you cannot utilize any TTA NOLcarryover, credit(s), or credit carryover(s) inthe current taxable year.


Income or Loss Worksheet — Targeted Tax AreaPart I Individual Income and Expense Items. See instructions.

(a) (b) (c)Amount % of time providing services in Apportioned amount

the TTA (a) x (b)

1 Wages . . . . . . . . . . . . . . . . . . . . . .

2 Employee business expenses . . . . . .

3 Subtotal: Enter the total of line 1, column (c) and line 2, column (c) on this line . . . . . . . . . . . . . . . . . . . . .

Part II Pass-Through Income or Loss. See instructions.(a) (b)

Name of entity Distributive or pro-rata share of business income or loss apportionedto the TTA from Schedule K-1 (100S, 541, 565, or 568) including

capital gains and losses

4

5 Subtotal: Enter the total of line 4, column (b) on this line . . . . . . . . . . .

Part III Taxpayer’s Trade or Business. See instructions.(a) (b) (c)

Business income or loss Apportionment % Apportioned income or lossfor the TTA (a) x (b)

6 Schedule C or C-EZ . . . . . . . . . . . . . .

7 Schedule E (Rentals) . . . . . . . . . . . . .

8 Schedule F . . . . . . . . . . . . . . . . . . . .

9 Other business income or loss . . . . .

10 Subtotal: Enter the total of line 6 through line 9, column (c) on this line . . . . . . . . . . . . . . . . . . . . . . . . . . . .(a) (b) (c)

Business gain Apportionment % Apportioned gain or lossor loss for the TTA (a) x (b)

11 Schedule D . . . . . . . . . . . . . . . . . . . .

12 Schedule D-1 . . . . . . . . . . . . . . . . . .

13 Subtotal: Enter the total of line 11, column (c) and line 12, column (c) on this line . . . . . . . . . . . . . . . . . . . .

14 Total: Enter the total of column (c) for line 3, line 10, and line 13, and line 5, column (b)on this line. See instructions on page 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


Instructions for Worksheet V —Net Operating Loss Computationand Loss LimitationsIndividuals and exempt trusts with a currentyear loss should complete Section A.Corporations with a current year losscomplete Section B. Individuals, exempttrusts, and corporations with current yearincome and a prior year TTA NOL carryovercomplete Section C.

Section A – Computation ofCurrent Year NOL — Individualsand Exempt TrustsUse this section to compute the TTA NOL tobe carried over to future years by individualsand exempt trusts. Complete Section A only ifyou have a current year loss.You must complete form FTB 3805V, NetOperating Loss (NOL) Computation and NOLand Disaster Loss Limitations — Individuals,Estates and Trusts, before you can computethe allowable TTA loss.To compute the TTA NOL, separate businessincome and deductions from nonbusinessincome and deductions. See Part IV for acomplete discussion of business andnonbusiness income.

Section B – Computation ofCurrent Year NOL —CorporationsUse this section to compute the TTA NOL tobe carried over to future years for corpora-tions. Complete Section B only if thecorporation has a current year loss.

You must complete form FTB 3805Q, NetOperating Loss (NOL) Computation and NOLand Disaster Loss Limitations — Corpora-tions, before you can compute the allowableTTA loss.

Section C – Computation ofNOL Carryover and CarryoverLimitationsUse this section to compute the TTA NOLdeduction for individuals, exempt trusts, andcorporations. The TTA NOL deduction is usedto reduce current year income from the TTA.Line 1 – See Part IV for a discussion ofbusiness and nonbusiness income.Note to Form 540 and Form 540NR filers:Be sure to include casualty losses, disasterlosses, and any business deductions reportedon Schedule A as itemized deductions.Exception: If you elected to carry back part orall of your current year disaster loss underIRC Section 165(i)(1), do not include theamount of the loss that was carried back inyour current year business income forthe TTA.Line 2 – In modifying your income, deductyour capital losses only up to your capitalgains. Enter as a positive number any netcapital losses included in line 1.Line 3 – Corporations must reduce income bythe disaster loss deduction and the deductionfor excess net passive income.Line 6 – This is your modified taxable income(MTI). You may reduce this amount by yourTTA NOL deduction. Your TTA NOL deductionmay not be larger than your MTI. If your MTIis a loss in the current year or if it limits theamount of NOL you may use this year, youmust carry over the NOL to future years.

Line 7 – Enter the amount from line 6 incolumn (d). If this amount is zero or negative,transfer the amounts from line 8 and line 9,column (b) to line 8 and line 9, column (e).Go to line 10.Line 8 and Line 9 – Enter the amounts online 8 and line 9 as positive numbers.In column (c), enter the smaller of the amountin column (b) or the amount in column (d)from the previous line.In column (d), enter the result of subtractingcolumn (c) from the balance on the previousline in column (d).In column (e), enter the result of subtractingthe amount in column (c) from the amount incolumn (b), as applicable.Example:

(b) Carry- (c) Amount (d) Balance (e)over from deducted available to TTA NOLprior year this year offset losses carryover

$5,000

$ 500 $ 500 4,500 $ 0

Line 10 – Enter the amount of your currentyear NOL in column (e). For individuals andexempt trusts, enter the amount fromSection A, line 7. For corporations, enter theamount from Section B, line 7.Line 11 – Total the amounts in column (b),column (c), and column (e). Enter the totalsfrom column (b), column (c), and column (e)on form FTB 3809, Side 1, line 3a, line 3b,and line 3c, accordingly.Your TTA NOL deduction for 2000 is the totalof column (c). Enter this amount on yourCalifornia tax return or schedule as follows:• Form 100, line 20;• Form 100S, line 19;• Form 100W, line 20;• Form 109, line 3 or line 11;• Schedule CA (540), line 21e, column B; or• Schedule CA (540NR), line 21e, column B.

Worksheet V Net Operating Loss (NOL) — Targeted Tax AreaSection A Computation of Current Year Net Operating Loss — Individuals and Exempt Trusts1 Net trade or business loss from all sources. Individuals: Enter the total from the Income or Loss Worksheet, line 14,

column (c) (page 15) as a positive number. For purposes of this worksheet section, do not include any 2000 lossesor disaster loss carryovers in line 1. See instructions for definition of business income (page 10).Exempt Trusts: Enter the amount from Form 109, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 Total business capital losses included in line 1. Enter as a positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Total business capital gains included in line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 If line 2 is greater than line 3, enter the difference as a positive number; otherwise enter -0- . . . . . . . . . . . . . . . . . . . 45 Subtract line 4 from line 1. If the result is zero or less, do not complete the rest of this section. You do not have a

current year NOL from the TTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Enter the amount from form FTB 3805V, Part I, Section A, line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Enter the smaller of line 5 or line 6 here and in Section C, line 10, column (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

This is the TTA NOL carryover from 2000 to 2001.


Worksheet V (continued)Section B Computation of Current Year Net Operating Loss — Corporations

Note: If you have a TTA NOL and a prior year general NOL, see instructions on page 13.During the year the corporation incurred the NOL, the corporation was a: m C corporation m S corporation m Exempt corporation 1 Net loss for state purposes from Form 100 or Form 100W, line 17; Form 100S, combined amounts of line 15 and

line 17; or Form 109, line 1. Enter as a positive number. Note: Apportioning corporations, enter the amount fromSchedule R, line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 a 2000 disaster relief loss included in line 1. Enter as a positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2ab Nonbusiness income included in line 1. Enter as a negative number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2bc Nonbusiness losses included in line 1. Enter as a positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2cd Combine line 2a through line 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d

3 Subtract line 2d from line 1. If zero or less, do not complete the rest of this section; the corporation does not havea current year NOL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4 Enter the average apportionment percentage from Worksheet IV, Section B, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Multiply line 3 by line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Enter the amount from form FTB 3805Q, Part I, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Enter the smaller of line 5 or line 6 here and in Section C, line 10, column (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

This is the TTA NOL carryover from 2000 to 2001.

Section C Computation of NOL Carryover and Carryover Limitations — Individuals, Exempt Trusts, and Corporations. See instructions.1 Enter the amount from Form 100 or Form 100W, line 17; Form 100S, combined amounts

of line 15 and line 17; or Form 109, line 1 or line 10. Form 540 and Form 540NR filers,enter the total from the Income or Loss Worksheet, line 14, column (c) (page 15) online 1 and line 6 (skip line 2 through line 5). See instructions. Note: Corporations whichfile a combined report, enter the taxpayer’s business income assigned to California(See instructions Part IV) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 a Form 100, Form 100W, Form 100S, and Form 109 filers: Enter any nonbusinessincome included in line 1 as a negative number. Form 540 and Form 540NR filersleave blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a

b Form 100, Form 100W, Form 100S, and Form 109 filers: Enter any nonbusiness loss included in line 1 as a positive number. Form 540 and Form 540NR filersleave blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b

c Combine line 2a and line 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c3 Form 100 or Form 100W filers: Enter the amount from Form 100 or Form 100W, line 21.

Form 100S filers: Enter the total of the amount from Form 100S, line 17 and line 20.Form 540, Form 540NR, and Form 109 filers: Enter -0-. Enter this amount as anegative number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4 Combine line 1, line 2c, and line 3. If zero or less, enter -0- on line 6 . . . . . . . . . . . . . . 45 Enter the average apportionment percentage from Worksheet IV, Section A, line 4 . . . . 56 Modified taxable income. Multiply line 4 by line 5. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

(a) (b) (c) (d) (e)Description Carryover from Amount deducted Balance available to TTA NOL carryover

prior year this year offset losses

7 Modified taxable income from line 6 . . . . . .8 TTA NOL carryover beginning in 1998.

Only for taxable years beginning on orafter November 1, 1998. See instructions . .

9 TTA NOL carryover beginning in 1999.See instructions . . . . . . . . . . . . . . . . . . . .

10 TTA NOL carryover beginning in 2000.See instructions . . . . . . . . . . . . . . . . . . . .

11 Total the amounts in column (b), column (c),and column (e). See instructions . . . . . . . .


Part VI Computation of CreditLimitationsCredit Limitations. The amount of credit youcan claim on your California tax return islimited by the amount of tax attributable toTTA business income. Use Worksheet VI onform FTB 3809, Side 2 to compute thislimitation.If a taxpayer owns an interest in a disregardedbusiness entity, the amount of the credit thatcan be utilized is limited to the differencebetween the taxpayer's regular tax computedwith the income of the disregarded entity, andthe taxpayer's regular tax computed withoutthe income of the disregarded entity. For moreinformation on disregarded business entities,get Form 568, Limited Liability Company TaxBooklet.Partnerships must allocate the credit amongthe partners according to the partners’distributive share as determined in a writtenpartnership agreement (R&TCSection 17039(e)).Credits you are otherwise eligible to claim maybe limited. Do not apply credits against theminimum franchise tax (corporations, limitedpartnerships, limited liability partnerships,LLCs, and S corporations), the alternativeminimum tax (corporations, exempt organiza-tions, individuals, and fiduciaries), the built-ingains tax (S corporations), or the excess netpassive income tax (S corporations).Refer to the credit instructions in your taxbooklet for more information.Members of a Unitary or Combined Group.The TTA credits cannot be allocated orotherwise transferred to another taxpayer,even if the other taxpayer is a member of aunitary or combined group or otherwiseaffiliated with the taxpayer that earned thecredit. For example, a subsidiary corporationthat generates a TTA hiring credit cannotallocate the credit to the parent corporation.S Corporations and the Application of TTACredits. An S corporation may use its TTAcredits to reduce TTA tax at both the corpo-rate and shareholder levels.An S corporation may use 1/3 of the TTA cred-its, to reduce the tax on the S corporation’sTTA business income. In addition,S corporation shareholders may claim theirpro-rata share of the entire amount of the TTAcredits calculated under the Personal IncomeTax Law.Example: In 2000, an S corporation qualifiedfor a $3,000 TTA hiring credit. TheS corporation will be able to use 1/3 of thecredit ($3,000 x 1/3 = $1,000) to offset thetax on the corporation’s TTA income.The S corporation will also pass-through a$3,000 credit to its shareholders to offsettheir individual tax (computed under thePersonal Income Tax Law) on TTA income.S corporations should attach form FTB 3809to Form 100S, California S Corporation

Franchise or Income Tax Return, to claim thetax credits. If form FTB 3809 is not attachedto the return, the credits may be disallowed.The investors need to attach Form 3809 totheir returns.Carryover. If the amount of credit available thisyear exceeds your TTA tax, you may carry overany excess credit to future years untilexhausted. Apply the carryover to the earliesttaxable year(s) possible. In no event can thecredit be carried back and applied against aprior year’s tax.For S corporations, the amount of the 1/3credit that is in excess of the 1.5% entity-leveltax (3.5% for financial S corporations) in thecurrent year may also be carried forward andused in future years to offset the S corpora-tion entity-level business tax. See theinstructions for Worksheet VI, Part III formore information.Credit Code Number. You must use creditcode number 210 to claim the TTA hiring andsales or use tax credits on your tax return.Using an incorrect code number may cause adelay in allowing the credit(s).

Instructions for Form FTB 3809Qualified Taxpayer’s SIC Code Activity –Enter the SIC code of the establishment thatqualifies you to take this credit. If yourenterprise has more than one establishment,and if more than one of the establishmentsqualifies you to take this credit, enter the SICcode that best represents your primaryqualifying establishment.Do not enter the PBA code from your state orfederal tax return. PBA codes are based on theNAICS and they are not the same as SICcodes. See General Information D, ImportantConsiderations.

Instructions for Worksheet VI— Computation of CreditLimitationsNote: Worksheet VI is on Side 2 of formFTB 3809.Partnerships and LLCs treated as partnershipsdo not complete Worksheet VI. The partners andmembers of these types of entities shouldcomplete Worksheet VI in order to determine theamount of TTA credits that they may claim ontheir California tax return. S corporations andtheir shareholders must complete Worksheet VI.Reporting Requirements of S Corporations,Estates and Trusts, Partnerships, and LLCsTreated as Partnerships• Report to shareholders, beneficiaries,

partners, and members, the distributive orpro-rata share of business income, losses,and deductions apportioned to the TTA;and

• Separately state any distributive or pro-rata share of business capital gains andlosses apportioned to the TTA included inthe amount above.

S corporations: Complete only Part I andPart III of this worksheet if your entity-leveltax before credits is more than the minimumfranchise tax.Corporations and S corporations subject tothe minimum franchise tax only: Completeonly Part IV of this worksheet.All others: Complete Part I and Part II of thisworksheet.

Part INote: For filers with NOLs or NOL carryovers.• Complete Worksheet V first if you have a

current year NOL or an NOL carryover.• Then complete Worksheet VI of Side 2 of

the FTB 3809 if you have any TTA credits.If you do not have a current year NOL or anyNOL carryovers:• Individuals: Go to the Income or Loss

Worksheet in Part V. Follow the instruc-tions there. Enter the amount from theIncome or Loss Worksheet, line 14,column (c) on Worksheet VI, Part I, line 1and line 3 (skip line 2).

• Corporations: Follow the instructions forline 1 below.

Line 1 – Enter all trade or business income.See Part IV on page 10 for the definition ofbusiness income.Line 2 – If your business is located entirelywithin the TTA, enter 1.Specifically, this percentage is the apportion-ment percentage computed by the entity usingWorksheet IV, Apportionment, and representsthe percentage of the entity’s businessattributable to the TTA.Line 6a – Compute the tax as if the TTA taxableincome represented all of your taxable income.Individuals: Use the tax table or tax rateschedule in your tax booklet for your filingstatus. Exempt organizations: Use theapplicable tax rate in your tax booklet.Corporations and S corporations: Use theapplicable tax rate.Example (Determination of TTA Income forShareholders, Partners, or Members ofPass-Through Entities):Ray Smith is vice president of ABC, Inc., anS corporation that has two locations: onewithin the TTA and one outside the TTA. Eightypercent (80%) of the S corporation’s businessis attributable to the TTA.Note: This percentage was determined by ABC,Inc. using Worksheet IV when ABC’sS corporation return (Form 100S) wasprepared.) Ray divides his time equally(50%/50%) between the two offices of ABC,Inc.Mary Smith (Ray’s spouse) works for ABC,Inc. at its office located within the TTA.Ray and Mary Smith have the following itemsof California income and expense for the 2000tax year:


Ray’s salary from ABC, Inc. . . . . . . $100,000Mary’s salary from ABC, Inc. . . . . . . . 75,000Interest on savings account . . . . . . . . 1,000Dividends . . . . . . . . . . . . . . . . . . . . . . 3,000Schedule K-1 (100S) from ABC, Inc.:

Ordinary income . . . . . . . . . . . . . . . 40,000TTA business expense deduction . . (5,000)*

Ray’s unreimbursed employeeexpenses from federal Schedule A . (2,000)

*The TTA business expense deduction is aseparately stated item on Schedule K-1(100S), line 8.The Smith’s TTA income (total amount to bereported on line 3) is computed as follows:Ray’s TTA salary ($100,000 x 50%) . $50,000Mary’s TTA salary ($75,000 x 100%) . 75,000Pass-through ordinary income from

ABC, Inc. ($40,000 x 80%) . . . . . . 32,000TTA business expense deduction

from ABC, Inc. . . . . . . . . . . . . . . . (5,000)Ray’s unreimbursed employee business

expenses ($2,000 x 50%) . . . . . . (1,000)Total TTA income

(Worksheet VI, Part I, line 3) . . . $151,000Note: The standard deduction and personal ordependency exemptions are not included inthe computation of TTA income since they arenot related to trade or business activities.Ray and Mary must compute the tax (to beentered on Worksheet VI, Part I, line 6a) onthe total TTA income of $151,000 (as if itrepresents all of their income). Using the taxrate schedule in their tax booklet for filingstatus married filing joint, the 2000 taxfigured on $151,000 is $10,534.Line 6b – Corporations and S corporations:If the amount on line 6b is the minimumfranchise tax ($800), you cannot use your TTAcredits this year. You should complete Part IVof the worksheet to figure the amount ofcredit carryover.

Part IIUse Part II of Side 2 of the FTB 3809 if youare a corporation, individual, estate, or trust.Corporations and S corporations that aresubject to paying only the minimum franchisetax, go to Part IV of Side 2 of the FTB 3809.Line 8A, column (e) – Enter the amount fromline 7. This is the amount of limitation basedon the tax on TTA business income.Line 8A, column (f) – Enter the amount ofcredit that is used on Schedule P (100, 100W,540, 540NR, or 541), column (b). Theamount cannot be greater than the amount online 8A, column (e) or the amount computedon line 8B, column (d). Enter this amount onform FTB 3809, Side 1, line 1a.Line 8B, column (b) – Enter the amount ofthe current year credit that was computed onWorksheet I, Section A, line 4.Line 8B, column (c) – Enter the amount of thetotal prior year credit carryover. This is theamount of credit that was previously figuredon Worksheet I, Section A, in the prior year,minus the amount that was allowed to be takenon the prior year return.Line 8B, column (d) – Add the amount of thecurrent year credit on line 8B, column (b) andthe amount of the total prior year carryover online 8B, column (c).Line 8B, column (e) – Compare the amountson line 8A, column (e) and line 8A,column (f). Enter the smaller amount.Line 8B, column (g) – Subtract the amounton line 8B, column (e) from the amount online 8B, column (d). Enter the result online 8B, column (g). This is the amount ofcredit that can be carried over to future years.Note: This carryover includes both theSchedule P (100, 100W, 540, 540NR, or 541)limitation and the limitation based on TTAbusiness income.

Line 9A, column (e) – Subtract the amounton line 8B, column (e) from the amount online 8A, column (e). If the result is zero, yourremaining credits are limited and must becarried over to future years. In this case, enterthe amount from line 9B, column (d) online 9B, column (g).Line 9A, column (f) – Enter the amount ofcredit that is used on Schedule P (100, 100W,540, 540NR, or 541), column (b). Theamount cannot be greater than the amount online 9A, column (e) or the amount computedon line 9B, column (d). Enter this amount onform FTB 3809, Side 1, line 1b.Line 9B, column (b) – Enter the amount ofthe current year credit that was computed onWorksheet II, line 2, column (c).Line 9B, column (c) – Enter the amount ofthe total prior year credit carryover. This is theamount of credit that was previously figuredon Worksheet II in the prior year, minus theamount that was allowed to be taken on theprior year return.Line 9B, column (d) – Add the amount of thecurrent year credit on line 9B, column (b) andthe amount of the total prior year carryover online 9B, column (c).Line 9B, column (e) – Compare the amountson line 9A, column (e) and line 9A,column (f). Enter the smaller amount.Line 9B, column (g) – Subtract the amounton line 9B, column (e) from the amount online 9B, column (d). Enter the result online 9B, column (g). This is the amount ofcredit that can be carried over to future years.Note: This carryover includes both theSchedule P (100, 100W, 540, 540NR, or 541)limitation and the limitation based on TTAbusiness income.

Example: Part II

The ABC Business has $8,000 of tax. The business computed a credit limitation based on the TTA income of $7,000 on Worksheet VI, line 7.The business has the following credits:Hiring credit — $500 and a $300 carryover from a prior yearSales or use tax credit — $9,000Worksheet VI, Part II would be computed as follows:

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

(a) (b) (c) (d) (e) (f) (g)Credit Credit Total Total credit Limitation Used on Schedule P Carryovername amount prior year (add col. (b) based on (can never be greater (col. (d) minus

carryover and col. (c)) TTA business income than col. (d) or col. (e)) col. (e))

8 Hiring creditA 7,000 800

B 500 300 800 800 –0–

9 Sales or usetax credit

A 6,200 6,200

B 9,000 –0– 9,000 6,200 2,800


Part IIIUse Part III of Side 2 of the FTB 3809 only ifyou are an S corporation.Line 10 and Line 11, column (b) – Enter theamounts of current year credits that werecomputed on Worksheet I and Worksheet II incolumn (b) for line 10 and line 11, asapplicable. Also enter this amount onForm 100S:• Schedule C, line 4; and• Schedule K, line 13.You may need to adjust your Schedule C (100S)to reflect the TTA tax limitation (Part I, line 7) toyour credits after completing this worksheet.Line 10 and Line 11, column (c) – Multiplythe amounts on line 10 and line 11,column (b) by 1/3. Enter these amounts incolumn (c). The amounts in column (c) arethe maximum amounts of the current yearcredits that may be used by the S corporationto offset its 1.5% entity-level tax (3.5% forfinancial S corporations).

Line 10 and Line 11, column (d) – Enter theamounts of total prior year credit carryover.These are the credit amounts that werepreviously figured on the prior year Work-sheet I and Worksheet II, minus the amountsthat were allowed to be taken on the prioryear return.Line 10 and Line 11, column (e) – Add theamounts of the current year credits incolumn (c) and the total prior year carryoversin column (d).Line 10 and Line 11, column (f) – Enter thecredit amounts that were used by theS corporation in the current year to offset its1.5% entity-level tax (3.5% for financialS corporations). Enter the amounts incolumn (f) for line 10 and line 11 on formFTB 3809, Side 1, line 1a and line 1b, asapplicable.Line 10 and Line 11, column (g) – Subtractthe amount in column (f) for each line fromthe amounts in column (e). These are thecredit amounts that can be carried over tofuture years and used by the S corporation.

Part IVUse Part IV of Side 2 of the FTB 3809 if youare a corporation or S corporation subject topaying only the minimum franchise tax.Line 12 and Line 13, column (b) – Enter theamounts of current year credits that werecomputed on Worksheet I and Worksheet II.S corporations may enter only 1/3 of theamounts from Worksheet I and II on line 12,column (b) and line 13, column (b), asapplicable.Line 12 and Line 13, column (c) – Enter theamounts of the total prior year creditcarryovers. These are the credit amounts thatwere previously figured on Worksheet I andWorksheet II in the prior year, minus theamounts that were allowed to be taken on theprior year return. S corporations may enteronly 1/3 of the amounts from Worksheet I andWorksheet II.Line 12 and Line 13, column (d) – Add theamounts in column (b) and column (c) forline 12 and line 13. These are the creditamounts that can be carried over to futureyears.


Standard Industrial Classification Manual, 1987 Edition (Partial Listing)The Standard Industrial Classification (SIC) Manual is orga-nized using a hierarchial structure, first by division, then bytwo-digit major groups within each division, then by three-digitindustry groups within each major group, and finally byfour-digit industry codes within each industry group.Classification of business activities is based upon establish-ments, which are defined in the SIC Manual as an economicunit, generally at a single physical location, where business isconducted, or where services or industrial operations areperformed. A taxpayer’s enterprise may consist of more thanone establishment. The SIC Manual provides the followingexamples of establishments: A factory, mill, store, hotel, movietheater, mine, farm, ranch, bank, railroad depot, airlineterminal, sales office, warehouse, or central administrativeoffice. Where distinct and separate economic activities areperformed at a single physical location (such as constructionactivities operated out of the same physical location as alumber yard), each activity should be treated as a separateestablishment where: (1) No one industry description in theSIC Manual includes such combined activities; (2) Theemployment in each economic activity is significant; and

(3) Separate reports are prepared on the number of employ-ees, their wages and salaries, sales or receipts, property andequipment, and other types of financial data, such as financialstatements, job costing, and profit center accounting.

For purposes of this publication, the following SIC codes arelisted since only taxpayers with establishments in theseindustry codes qualify for the TTA tax incentives:• SIC Codes 2000 through 2099;• SIC Codes 2200 through 3999;• SIC Codes 4200 through 4299;• SIC Codes 4500 through 4599; and• SIC Codes 4700 through 5199.

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

NATIONAL TECHNICAL INFORMATION SERVICE5285 PORT ROYAL ROADSPRINGFIELD VIRGINIA 22161Order No. PB 87-100012

The manual is also available on the Internet at:www.osha.gov/oshstats/sicser.html

The four-digit industry codes within Division D of the SIC Manual are: (nec means “not elsewhere classified”)3291 Abrasive products2891 Adhesives & sealants2879 Agricultural chemicals, nec3563 Air & gas compressors3728 Aircraft parts & equipment, nec3724 Aircraft engines & engine parts3721 Aircraft2812 Alkalies & chlorine3354 Aluminum extruded products3355 Aluminum rolling & drawing, nec3365 Aluminum foundries3353 Aluminum sheet, plate, & foil3363 Aluminum die-casting3483 Ammunition, except for small

arms, nec3826 Analytical instruments2077 Animal & marine fats & oils2387 Apparel belts2389 Apparel & accessories, nec3446 Architectural metal work3292 Asbestos products2952 Asphalt felts & coatings2951 Asphalt paving mixtures & blocks3581 Automatic vending machines2396 Automotive & apparel trimmings3465 Automotive stampings2673 Bags: plastic, laminated, & coated2674 Bags: uncoated paper & multiwall3562 Ball & roller bearings2063 Beet sugar2836 Biological products except

diagnostic2782 Blankbooks & looseleaf binders3312 Blast furnace & steel mills3564 Blowers & fans3732 Boat building & repairing3452 Bolts, nuts, rivets, & washers2731 Book publishing2732 Book printing2789 Bookbinding & related work2086 Bottled & canned soft drinks2342 Bras, girdles, & allied garments2051 Bread, cake, & related products3251 Brick & structural clay tile2211 Broadwoven fabric mills, cotton2221 Broadwoven fabric mills, manmade2231 Broadwoven fabric mills, wool3991 Brooms & brushes3995 Burial caskets

3578 Calculating & accountingequipment

2064 Candy & other confectioneryproducts

2062 Cane sugar refining2033 Canned fruits & vegetables2091 Canned & cured fish & seafood2032 Canned specialties2394 Canvas & related products3955 Carbon paper & inked ribbons2895 Carbon black3624 Carbon & graphite products3592 Carburetors, pistons, rings, &

valves2273 Carpets & rugs2823 Cellulosic manmade fiber3241 Cement, hydraulic3253 Ceramic wall & floor tile2043 Cereal breakfast foods2022 Cheese, natural & processed2899 Chemical preparations, nec2067 Chewing gum2066 Chocolate & cocoa products3255 Clay refractories2295 Coated fabrics, not rubberized3316 Cold finishing of steel shapes2754 Commercial printing, gravure2752 Commercial printing, lithographic2759 Commercial printing, nec3582 Commercial laundry equipment3646 Commercial lighting fixtures3669 Communication equipment3577 Computer peripheral equipment,

nec3575 Computer terminals3572 Computer storage devices3271 Concrete block & brick3272 Concrete products, nec3531 Construction machinery2679 Converted paper products, nec3535 Conveyors & conveying equipment2052 Cookies & crackers3351 Copper rolling & drawing3366 Copper foundries2298 Cordage & twine2653 Corrugated & solid fiber boxes3961 Costume jewelry2074 Cottonseed oil2021 Creamery butter

3466 Crowns & closures3643 Current-carrying wiring devices2391 Curtains & draperies3087 Custom compound purchased

resins3281 Cut stone & stone products3421 Cutlery2865 Cyclic crudes & intermediates2034 Dehydrated fruits, vegetables, &

soups3843 Dental equipment & supplies2675 Die-cut paper products2085 Distilled & blended liquors2047 Dog & cat food3942 Dolls & stuffed toys2591 Drapery hardware, blinds, &

shades2023 Dry, condensed, & evaporated

dairy products2079 Edible fats & oils, nec3641 Electric lamps3634 Electric housewares & fans3699 Electrical equipment & supplies,

nec3629 Electrical industrial apparatus, nec3845 Electromedical equipment3313 Electrometallurgical products3679 Electronic components, nec3678 Electronic connectors3671 Electron tubes3675 Electronic capacitors3676 Electronic resistors3677 Electronic coils & transformers3571 Electronic computers3534 Elevators & moving stairways3694 Engine electrical equipment2677 Envelopes3822 Environmental controls2892 Explosives2381 Fabric dress & work gloves3499 Fabricated metal products, nec3443 Fabricated plate work (boiler

shops)3498 Fabricated pipe & fittings3069 Fabricated rubber products, nec3441 Fabricated structural metal2399 Fabricated textile products, nec3523 Farm machinery & equipment

3965 Fasteners, buttons, needles, & pins2875 Fertilizers, mixing only2655 Fiber cans, drums, & similar

products2262 Finishing plants, manmade2261 Finishing plants, cotton2269 Finishing plants, nec3211 Flat glass2087 Flavoring extracts & syrups, nec2041 Flour & other grain mill products3824 Fluid meters & counting devices3492 Fluid power valves & hose fittings2026 Fluid milk3594 Fluid power pumps & motors3593 Fluid power cylinders & actuators2657 Folding paperboard boxes2099 Food preparations, nec3556 Food products machinery3131 Footwear cut stock3149 Footwear, except rubber, nec2092 Fresh/frozen prepared fish/seafood2053 Frozen bakery products, except

bread2038 Frozen specialties, nec2037 Frozen fruits & vegetables2371 Fur goods2599 Furniture & fixtures, nec3944 Games, toys, & children’s vehicles3053 Gaskets, packing, & sealing devices3569 General industrial machinery, nec2369 Girls’ & children’s outerwear, nec2361 Girls’ & children’s dresses, blouses3221 Glass containers3321 Gray & ductile iron foundries2771 Greeting cards3764 Guided missile & space vehicle

parts3769 Guided missile & space vehicle

parts, nec3761 Guided missiles & parts2861 Gum & wood chemicals3275 Gypsum products3423 Hand & edge tools, nec3996 Hardsurface floor coverings, nec2429 Hardware, nec2426 Hardwood dimensions & flooring

mills

(continued on next page)


2435 Hardwood veneer & plywood2353 Hats, caps, & millinery3433 Heating equip, except electric3536 Hoists, cranes, & monorails2252 Hosiery, nec2392 House furnishings, nec3142 House slippers3651 Household audio & video

equipment3635 Household vacuum cleaners3631 Household cooking appliances3633 Household laundry equipment3639 Household appliances, nec2519 Household furniture, nec3632 Household refrigerators & freezers2024 Ice cream & frozen desserts3491 Industrial valves2819 Industrial inorganic chem, nec3599 Industrial machinery, nec2869 Industrial organic chem, nec3537 Industrial trucks & tractors2813 Industrial gases3543 Industrial patterns3567 Industrial furnaces & ovens2816 Inorganic pigments3825 Instruments to measure electricity3519 Internal combustion engines, nec2835 In vitro & in vivo diagnostic

substances3462 Iron & steel forging3915 Jewelers’ materials & lapidary work3911 Jewelry, precious metal2253 Knit outerwear mills2254 Knit underwear mills2259 Knitting mills, nec3821 Laboratory apparatus & furniture2258 Lace & warp knit fabric mills3083 Laminated plastic plate & sheet3524 Lawn & garden equipment3952 Lead pencils & art goods3199 Leather goods, nec2386 Leather & sheep-lined clothing3111 Leather tanning & finishing3151 Leather gloves & mittens3648 Lighting equipment3274 Lime2411 Logging2992 Lubricating oils & greases3161 Luggage2098 Macaroni, spaghetti, & noodles3541 Machine tools, metal cutting types3545 Machine tool accessories3542 Machine tools, metal forming type3695 Magnetic & optical recording media3322 Malleable iron foundries2083 Malt2082 Malt beverages2761 Manifold business forms2097 Manufactured ice3999 Manufacturing industries, nec3953 Marking devices2515 Mattresses & bedsprings3586 Measuring & dispensing pumps3829 Measuring & controlling devices,

nec2011 Meat packing plants3061 Mechanical rubber goods2833 Medicinal & botanicals2325 Men’s & boys’ trousers & slacks3143 Men’s footwear, except athletic2323 Men’s & boys’ neckwear2329 Men’s & boys’ clothing, nec2321 Men’s & boys’ shirts2322 Men’s & boys’ underwear &

nightwear2326 Men’s & boys’ work clothing2311 Men’s & boys’ suits & coats2514 Metal household furniture3549 Metalworking machinery, nec

3398 Metal heat treating3411 Metal cans3412 Metal barrels, drums, & pails3431 Metal sanitary ware3497 Metal foil & leaf3479 Metal coating & allied services3469 Metal stampings, nec3442 Metal door, sash, & trim2431 Millwork3296 Mineral wool3295 Minerals, ground or treated3532 Mining machinery2741 Misc publishing3449 Misc metal work3496 Misc fabricated wire products2451 Mobile homes3716 Motor homes3711 Motor vehicles & car bodies3621 Motor & generators3714 Motor vehicle parts & accessories3751 Motorcycles, bicycles, & parts3931 Musical instruments2441 Nailed wood boxes & shook2241 Narrow fabric mills2711 Newspapers2873 Nitrogenous fertilizers3297 Nonclay refractories3644 Noncurrent-carrying wiring devices3369 Nonferrous foundries, nec3364 Nonferrous die-casting, except

aluminum3357 Nonferrous wiredrawing &

insulating3356 Nonferrous rolling & drawing, nec3341 Nonferrous metals3463 Nonferrous forging3299 Nonmetallic mineral products, nec2297 Nonwoven fabrics3579 Office machines, nec2522 Office furniture, except wood3533 Oil & gas field machinery3851 Ophthalmic goods3827 Optical instruments & lenses3489 Ordnance & accessories, nec2824 Organic fibers, noncellulosic3565 Packaging machinery2851 Paints & allied products3554 Paper industries machinery2621 Paper mills2671 Paper coated & laminated,

packaging2672 Paper coated & laminated, nec2631 Paperboard mills2542 Partitions & fixtures, except wood3951 Pens & mechanical pencils2721 Periodicals3172 Personal leather goods, nec2911 Petroleum refining2999 Petroleum & coal products, nec2834 Pharmaceutical preparations2874 Phosphatic fertilizers3861 Photographic equipment &

supplies2035 Pickles, sauces, & salad dressing3085 Plastic bottles3086 Plastic foam products2821 Plastic materials & resins3084 Plastic pipe3088 Plastic plumbing fixtures3089 Plastic products, nec2796 Platemaking service3471 Plating & polishing2395 Pleating & stitching3432 Plumbing fixture fittings & trim2842 Polishes & sanitation goods3264 Porcelain electrical supplies2096 Potato chips & similar snacks3269 Pottery products, nec2015 Poultry slaughtering & processing

3568 Power transmission equipment,nec

3546 Power-driven handtools3448 Prefabricated metal buildings2452 Prefabricated wood buildings2045 Prepared flour mixes & doughs2048 Prepared feeds, nec3652 Prerecorded records & tapes3229 Pressed & blown glass, nec3399 Primary metal products, nec3339 Primary nonferrous metals, nec3334 Primary aluminum3331 Primary copper3692 Primary batteries, dry & wet3672 Printed circuit boards2893 Printing ink3555 Printing trades machinery3823 Process control instruments3231 Products of purchased glass2531 Public building & related furniture2611 Pulp mills3561 Pumps & pumping equipment3663 Radio & TV communication

equipment3743 Railroad equipment2061 Raw sugar cane3273 Ready-mixed concrete2493 Reconstituted wood products3585 Refrigeration & heating equipment3625 Relays & industrial controls3645 Residential lighting fixtures2044 Rice milling2095 Roasted coffee2384 Robes & dressing gowns3547 Rolling mill machinery3052 Rubber & plastic hose & belting3021 Rubber & plastic footwear2068 Salted & roasted nuts & seeds2656 Sanitary food containers2676 Sanitary paper products2013 Sausages & other prepared meats3425 Saw blades & handsaws2421 Sawmills & planing mills, general3596 Scales & balances, except

laboratory2397 Schiffli machine embroideries3451 Screw machine products3812 Search & navigation equipment3674 Semiconductors & related devices3263 Semivitreous table & kitchenware3589 Service industry machinery, nec2652 Setup paperboard boxes3444 Sheet metal work3731 Ship building & repairing3993 Signs & advertising specialties3914 Silverware and plate ware3484 Small arms3482 Small arms ammunition2841 Soap & other detergents2436 Softwood veneer & plywood2075 Soybean oil mills3769 Space vehicle equipment & parts3764 Space propulsion units & parts2429 Special product sawmills, nec3544 Special dies, tools, jigs, & fixtures3559 Special industry machinery, nec3566 Speed changers, drives, & gears3949 Sporting & athletic goods, nec2678 Stationery products3493 Steel springs, except wire3315 Steel wire & related products3317 Steel pipe & tubes3325 Steel foundries, nec3324 Steel investment foundries3691 Storage batteries3259 Structural clay products, nec2439 Structural wood members, nec2843 Surface active agents3841 Surgical & medical instruments

3842 Surgical appliances & supplies3613 Switchgear & switchboard

apparatus2822 Synthetic rubber3795 Tanks & tank components3661 Telephone & telegraph apparatus3552 Textile machinery2393 Textile bags2299 Textile goods, nec2284 Thread mills2282 Throwing & winding mills2296 Tire cord & fabrics3011 Tires & inner tubes2844 Toilet preparations3612 Transformers, except electronic3799 Transportation equipment, nec3792 Travel trailers & campers3713 Truck & bus bodies3715 Truck trailers3511 Turbines & turbines generator sets2791 Typesetting3082 Unsupported plastic profile shapes3081 Unsupported plastic film & sheet2512 Upholstered household furniture3494 Valves & pipe fittings, nec2076 Vegetable oil mills, nec3647 Vehicular lighting equipment3261 Vitreous plumbing fixtures3262 Vitreous china table & kitchenware3873 Watches, clocks, & parts2385 Waterproof outerwear2257 Weft knit fabric mills3548 Welding apparatus2046 Wet corn milling2084 Wines, brandy, & brandy spirits3495 Wire springs2337 Women’s & misses’ suits & coats2335 Women’s, juniors’, & misses’

dresses2341 Women’s & children’s underwear2251 Women’s hosiery, except socks2339 Women’s & misses’ outerwear, nec2331 Women’s & misses’ blouses &

shirts3171 Women’s handbags and purses3144 Women’s footwear, except athletic2491 Wood preserving2499 Wood products, nec2434 Wood kitchen cabinets2541 Wood partitions & fixtures2521 Wood office furniture2517 Wood TV & radio cabinets2449 Wood containers, nec2511 Wood household furniture2448 Wood pallets & skids3553 Woodworking machinery3844 X-ray apparatus & tubes2281 Yarn spinning mills

(continued on next page)


The four-digit industry codes within Division E of the SIC Manual are: (nec means “not elsewhere classified”)

4513 Air courier services4522 Air transportation, nonscheduled4512 Air transportation, scheduled4581 Airports, flying fields, & airport

terminal services4729 Arrangement of passenger

transportation, nec4730 Arrangement of transportation of

freight & cargo4841 Cable & other pay television

services4939 Combination utilities, nec4899 Communications services, nec4215 Courier services, except by air4931 Electric & other services combined4911 Electric services4221 Farm product warehousing &

storage4785 Fixed facilities & inspection &

weighing services for motor vehicletransportation

4932 Gas & other services combined4971 Irrigation systems4214 Local trucking with storage4212 Local trucking without storage4925 Mixed, manufactured, or liquefied

petroleum gas production4924 Natural gas distribution4922 Natural gas transmission4923 Natural gas transmission &

distribution4783 Packing & crating4832 Radio broadcasting stations4812 Radiotelephone communications4222 Refrigerated warehousing &

storage4953 Refuse systems4741 Rental of railroad cars4959 Sanitary services, nec4952 Sewerage systems4225 Special warehousing & storage

4226 Special warehousing & storage,nec

4960 Steam & air-conditioning supply4822 Telegraph & other message

communications4813 Telephone communications, except

radiotelephone4833 Television broadcasting stations4231 Terminal & joint terminal

maintenance facilities for motorfreight

4725 Tour operators4789 Transportation services, nec4724 Travel agencies4213 Trucking, except local4940 Water supply

The four-digit industry codes within Division F of the SIC Manual are: (nec means “not elsewhere classified”)

5012 Automobiles & other motorvehicles

5181 Beer & ale5192 Books, periodicals, & newspapers5032 Brick, stone, and related

construction materials5169 Chemicals & allied products, nec5052 Coal & other minerals & ores5046 Commercial equipment, nec5045 Computers & computer peripheral

equipment & software5145 Confectionery5082 Construction & mining (except

petroleum) machinery &equipment

5039 Construction materials, nec5143 Dairy products, except dried or

canned5122 Drugs, drug proprietaries, &

druggist’ sundries5099 Durable goods, nec5063 Electrical apparatus & equipment,

wiring supplies, & constructionmaterials

5064 Electrical appliances, television, &radio sets

5065 Electronic parts & equipment, nec5083 Farm & garden machinery &

equipment5191 Farm supplies5159 Farm-product raw materials, nec5146 Fish & seafoods5193 Flowers, nursery stock, & florists’

supplies

5138 Footwear5148 Fresh fruits & vegetables5021 Furniture5153 Grain & field beans5149 Groceries & related products, nec5141 Groceries, general line5072 Hardware5022 Home furnishings5113 Industrial & personal service paper5084 Industrial machinery & equipment5085 Industrial supplies5094 Jewelry, watches, precious stones,

& precious metals5154 Livestock5031 Lumber, plywood, millwork, and

wood panels5147 Meat & meat products5047 Medical, dental, & hospital

equipment & supplies5136 Men’s & boy’s clothing &

furnishings5051 Metals service centers & offices5015 Motor vehicle parts, used5013 Motor vehicle supplies & new parts5199 Nondurable goods, nec5044 Office equipment5048 Opthalmic goods5142 Packaged frozen foods5198 Paints, varnishes, & supplies5172 Petroleum & petroleum products

wholesalers, except bulk stations5171 Petroleum bulk stations &

terminals5043 Photographic equipment & sales

5131 Piece goods, notions, & other drygoods

5162 Plastics materials & basic forms &shapes

5074 Plumbing & heating equipment &supplies (hydronics)

5144 Poultry & poultry products5111 Printing & writing paper5049 Professional equipment & supplies,

nec5078 Refrigeration equipment & supplies5033 Roofing, siding, and insulation

materials5093 Scrap & waste materials5087 Service establishment equipment &

supplies5091 Sporting & recreational goods &

supplies5112 Stationery & office supplies5014 Tires & tubes5194 Tobacco & tobacco products5092 Toys, hobby goods, & supplies5088 Transportation equipment &

supplies, except motor vehicles5075 Warm air heating, air-conditioning

equipment, & supplies5182 Wine & distilled alcoholic

beverages5137 Women’s, children’s, & infants’

clothing & accessories


FTB 3809Codes for Principal Business Activity

This list of principal business activities and their associatedcodes is designed to classify a business by the type ofactivity in which it is engaged to facilitate the administrationof the California Revenue and Taxation Code. For taxableyears beginning on or after January 1, 1998, these principalbusiness activity codes are based on the North AmericanIndustry Classification System published by the UnitedStates Office of Management and Budget, 1997 Edition.

Caution: For purposes of qualifying for the TTA tax incen-tives, refer to the Standard Industrial Classification Manual,1987 Edition and the partial listing on pages 21 through 23of this booklet.

Agriculture, Forestry, Fishingand HuntingCodeCrop Production111100 Oilseed & Grain Farming111210 Vegetable & Melon Farming

(including potatoes & yams)111300 Fruit & Tree Nut Farming111400 Greenhouse, Nursery, &

Floriculture Production111900 Other Crop Farming (including

tobacco, cotton, sugarcane,hay, peanut, sugar beet, & allother crop farming)

Animal Production112111 Beef Cattle Ranching &

Farming112112 Cattle Feedlots112120 Dairy Cattle & Milk Production112210 Hog & Pig Farming112300 Poultry & Egg Production112400 Sheep & Goat Farming112510 Animal Aquaculture (including

shellfish & finfish farms &hatcheries)

112900 Other Animal ProductionForestry and Logging113110 Timber Tract Operations113210 Forest Nurseries & Gathering

of Forest Products113310 LoggingFishing, Hunting and Trapping114110 Fishing114210 Hunting & TrappingSupport Activities for Agriculture andForestry115110 Support Activities for Crop

Production (including cottonginning, soil preparation,planting, & cultivating)

115210 Support Activities for AnimalProduction

115310 Support Activities for Forestry

Mining211110 Oil & Gas Extraction212110 Coal Mining212200 Metal Ore Mining212310 Stone Mining & Quarrying212320 Sand, Gravel, Clay, & Ceramic

& RefractoryMinerals Mining & Quarrying212390 Other Nonmetallic Mineral

Mining & Quarrying213110 Support Activities for Mining

Utilities221100 Electric Power Generation,

Transmission, & Distribution221210 Natural Gas Distribution221300 Water, Sewage, & Other

Systems

ConstructionCodeBuilding, Developing, and GeneralContracting233110 Land Subdivision & Land

Development233200 Residential Building

Construction233300 Nonresidential Building

ConstructionHeavy Construction234100 Highway, Street, Bridge, &

Tunnel Construction234900 Other Heavy ConstructionSpecial Trade Contractors235110 Plumbing, Heating, & Air-

Conditioning Contractors235210 Painting & Wall Covering

Contractors235310 Electrical Contractors235400 Masonry, Drywall, Insulation, &

Tile Contractors235500 Carpentry & Floor Contractors235610 Roofing, Siding, & Sheet Metal

Contractors235710 Concrete Contractors235810 Water Well Drilling Contractors235900 Other Special Trade

Contractors

ManufacturingFood Manufacturing311110 Animal Food Mfg311200 Grain & Oilseed Milling311300 Sugar & Confectionery Product

Mfg311400 Fruit & Vegetable Preserving &

Specialty Food Mfg311500 Dairy Product Mfg311610 Animal Slaughtering and

Processing311710 Seafood Product Preparation &

Packaging311800 Bakeries & Tortilla Mfg311900 Other Food Mfg (including

coffee, tea, flavorings, &seasonings)

Beverage and Tobacco ProductManufacturing312110 Soft Drink & Ice Mfg312120 Breweries312130 Wineries312140 Distilleries312200 Tobacco ManufacturingTextile Mills and Textile Product Mills313000 Textile Mills314000 Textile Product MillsApparel Manufacturing315100 Apparel Knitting Mills315210 Cut & Sew Apparel

Contractors315220 Men’s & Boys’ Cut & Sew

Apparel Mfg

Code315230 Women’s & Girls’ Cut & Sew

Apparel Mfg315290 Other Cut & Sew Apparel Mfg315990 Apparel Accessories & Other

Apparel MfgLeather and Allied ProductManufacturing316110 Leather & Hide Tanning &

Finishing316210 Footwear Mfg (including rubber

& plastics)316990 Other Leather & Allied Product

MfgWood Product Manufacturing321110 Sawmills & Wood Preservation321210 Veneer, Plywood, & Engi-

neered Wood Product Mfg321900 Other Wood Product MfgPaper Manufacturing322100 Pulp, Paper, & Paperboard

Mills322200 Converted Paper Product MfgPrinting and Related SupportActivities323100 Printing & Related Support

ActivitiesPetroleum and Coal ProductsManufacturing324110 Petroleum Refineries

(including integrated)324120 Asphalt Paving, Roofing, &

Saturated Materials Mfg324190 Other Petroleum & Coal

Products MfgChemical Manufacturing325100 Basic Chemical Mfg325200 Resin, Synthetic Rubber, &

Artificial & Synthetic Fibers &Filaments Mfg

325300 Pesticide, Fertilizer, & OtherAgricultural Chemical Mfg

325410 Pharmaceutical & MedicineMfg

325500 Paint, Coating, & Adhesive Mfg325600 Soap, Cleaning Compound, &

Toilet Preparation Mfg325900 Other Chemical Product &

Preparation MfgPlastics and Rubber ProductsManufacturing326100 Plastics Product Mfg326200 Rubber Product MfgNonmetallic Mineral ProductManufacturing327100 Clay Product & Refractory Mfg327210 Glass & Glass Product Mfg327300 Cement & Concrete Product

Mfg327400 Lime & Gypsum Product Mfg327900 Other Nonmetallic Mineral

Product MfgPrimary Metal Manufacturing331110 Iron & Steel Mills & Ferroalloy

Mfg331200 Steel Product Mfg from

Purchased Steel331310 Alumina & Aluminum

Production & Processing331400 Nonferrous Metal (except

Aluminum) Production &Processing

331500 FoundriesFabricated Metal ProductManufacturing332110 Forging & Stamping332210 Cutlery & Handtool Mfg332300 Architectural & Structural

Metals Mfg332400 Boiler, Tank, & Shipping

Container Mfg332510 Hardware Mfg332610 Spring & Wire Product Mfg332700 Machine Shops; Turned

Product; & Screw, Nut, & BoltMfg

332810 Coating, Engraving, HeatTreating, & Allied Activities

Code332900 Other Fabricated Metal

Product MfgMachinery Manufacturing333100 Agriculture, Construction, &

Mining Machinery Mfg333200 Industrial Machinery Mfg333310 Commercial & Service

Industry Machinery Mfg333410 Ventilation, Heating, Air-

Conditioning, & CommercialRefrigeration Equipment Mfg

333510 Metalworking Machinery Mfg333610 Engine, Turbine, & Power

Transmission Equipment Mfg333900 Other General Purpose

Machinery MfgComputer and Electronic ProductManufacturing334110 Computer & Peripheral

Equipment Mfg334200 Communications Equipment

Mfg334310 Audio & Video Equipment Mfg334410 Semiconductor & Other

Electronic Component Mfg334500 Navigational, Measuring,

Electromedical, & ControlInstruments Mfg

334610 Manufacturing & ReproducingMagnetic & Optical Media

Electrical Equipment, Appliance, andComponent Manufacturing335100 Electric Lighting Equipment

Mfg335200 Household Appliance Mfg335310 Electrical Equipment Mfg335900 Other Electrical Equipment &

Component MfgTransportation EquipmentManufacturing336100 Motor Vehicle Mfg336210 Motor Vehicle Body & Trailer

Mfg336300 Motor Vehicle Parts Mfg336410 Aerospace Product & Parts

Mfg336510 Railroad Rolling Stock Mfg336610 Ship & Boat Building336990 Other Transportation

Equipment MfgFurniture and Related ProductManufacturing337000 Furniture & Related Product

ManufacturingMiscellaneous Manufacturing339110 Medical Equipment & Supplies

Mfg339900 Other Miscellaneous

Manufacturing

Wholesale TradeWholesale Trade, Durable Goods421100 Motor Vehicle & Motor Vehicle

Parts & Supplies Wholesalers421200 Furniture & Home Furnishing

Wholesalers421300 Lumber & Other Construction

Materials Wholesalers421400 Professional & Commercial

Equipment & SuppliesWholesalers

421500 Metal & Mineral (exceptPetroleum) Wholesalers

421600 Electrical Goods Wholesalers421700 Hardware, & Plumbing &

Heating Equipment & SuppliesWholesalers

421800 Machinery, Equipment, &Supplies Wholesalers

421910 Sporting & RecreationalGoods & Supplies Wholesalers

421920 Toy & Hobby Goods &Supplies Wholesalers

421930 Recyclable MaterialWholesalers

421940 Jewelry, Watch, PreciousStone, & Precious MetalWholesalers

421990 Other Miscellaneous DurableGoods Wholesalers


CodeWholesale Trade, Nondurable Goods422100 Paper & Paper Product

Wholesalers422210 Drugs & Druggists’ Sundries

Wholesalers422300 Apparel, Piece Goods, &

Notions Wholesalers422400 Grocery & Related Product

Wholesalers422500 Farm Product Raw Material

Wholesalers422600 Chemical & Allied Products

Wholesalers422700 Petroleum & Petroleum

Products Wholesalers422800 Beer, Wine, & Distilled

Alcoholic Beverage Wholesal-ers

422910 Farm Supplies Wholesalers422920 Book, Periodical, & Newspaper

Wholesalers422930 Flower, Nursery Stock, &

Florists’ Supplies Wholesalers422940 Tobacco & Tobacco Product

Wholesalers422950 Paint, Varnish, & Supplies

Wholesalers422990 Other Miscellaneous

Nondurable GoodsWholesalers

Retail TradeMotor Vehicle and Parts Dealers441110 New Car Dealers441120 Used Car Dealers441210 Recreational Vehicle Dealers441221 Motorcycle Dealers441222 Boat Dealers441229 All Other Motor Vehicle

Dealers441300 Automotive Parts, Accessories,

& Tire StoresFurniture and Home FurnishingsStores442110 Furniture Stores442210 Floor Covering Stores442291 Window Treatment Stores442299 All Other Home Furnishings

StoresElectronics and Appliance Stores443111 Household Appliance Stores443112 Radio, Television, & Other

Electronics Stores443120 Computer & Software Stores443130 Camera & Photographic

Supplies StoresBuilding Material and GardenEquipment and Supplies Dealers444110 Home Centers444120 Paint & Wallpaper Stores444130 Hardware Stores444190 Other Building Material

Dealers444200 Lawn & Garden Equipment &

Supplies StoresFood and Beverage Stores445110 Supermarkets and Other

Grocery (except Convenience)Stores

445120 Convenience Stores445210 Meat Markets445220 Fish & Seafood Markets445230 Fruit & Vegetable Markets445291 Baked Goods Stores445292 Confectionery & Nut Stores445299 All Other Specialty Food

Stores445310 Beer, Wine, & Liquor StoresHealth and Personal Care Stores446110 Pharmacies & Drug Stores446120 Cosmetics, Beauty Supplies, &

Perfume Stores446130 Optical Goods Stores446190 Other Health & Personal Care

StoresGasoline Stations447100 Gasoline Stations (including

convenience stores with gas)

CodeClothing and Clothing AccessoriesStores448110 Men’s Clothing Stores448120 Women’s Clothing Stores448130 Children’s & Infants’ Clothing

Stores448140 Family Clothing Stores448150 Clothing Accessories Stores448190 Other Clothing Stores448210 Shoe Stores448310 Jewelry Stores448320 Luggage & Leather Goods

StoresSporting Goods, Hobby, Book, andMusic Stores451110 Sporting Goods Stores451120 Hobby, Toy, & Game Stores451130 Sewing, Needlework, & Piece

Goods Stores451140 Musical Instrument & Supplies

Stores451211 Book Stores451212 News Dealers & Newsstands451220 Prerecorded Tape, Compact

Disc, & Record StoresGeneral Merchandise Stores452110 Department stores452900 Other General Merchandise

StoresMiscellaneous Store Retailers453110 Florists453210 Office Supplies & Stationery

Stores453220 Gift, Novelty, & Souvenir

Stores453310 Used Merchandise Stores453910 Pet & Pet Supplies Stores453920 Art Dealers453930 Manufactured (Mobile) Home

Dealers453990 All Other Miscellaneous Store

Retailers (including tobacco,candle, & trophy shops)

Nonstore Retailers454110 Electronic Shopping & Mail-

Order Houses454210 Vending Machine Operators454311 Heating Oil Dealers454312 Liquefied Petroleum Gas

(Bottled Gas) Dealers454319 Other Fuel Dealers454390 Other Direct Selling Establish-

ments (including door-to-doorretailing, frozen food planproviders, party planmerchandisers, & coffee-breakservice providers)

Transportation andWarehousingAir, Rail, and Water Transportation481000 Air Transportation482110 Rail Transportation483000 Water TransportationTruck Transportation484110 General Freight Trucking, Local484120 General Freight Trucking,

Long-distance484200 Specialized Freight TruckingTransit and Ground PassengerTransportation485110 Urban Transit Systems485210 Interurban & Rural Bus

Transportation485310 Taxi Service485320 Limousine Service485410 School & Employee Bus

Transportation485510 Charter Bus Industry485990 Other Transit & Ground

Passenger TransportationPipeline Transportation486000 Pipeline TransportationScenic & Sightseeing Transportation487000 Scenic & Sightseeing

Transportation

CodeSupport Activities for Transportation488100 Support Activities for Air

Transportation488210 Support Activities for Rail

Transportation488300 Support Activities for Water

Transportation488410 Motor Vehicle Towing488490 Other Support Activities for

Road Transportation488510 Freight Transportation

Arrangement488990 Other Support Activities for

TransportationCouriers and Messengers492110 Couriers492210 Local Messengers & Local

DeliveryWarehousing and Storage493100 Warehousing & Storage

(except lessors ofminiwarehouses & self-storage units)

InformationPublishing Industries511110 Newspaper Publishers511120 Periodical Publishers511130 Book Publishers511140 Database & Directory

Publishers511190 Other Publishers511210 Software PublishersMotion Picture and Sound RecordingIndustries512100 Motion Picture & Video

Industries (except video rental)512200 Sound Recording IndustriesBroadcasting andTelecommunications513100 Radio & Television

Broadcasting513200 Cable Networks & Program

Distribution513300 Telecommunications (including

paging, cellular, satellite, &other telecommunications)

Information Services and DataProcessing Services514100 Information Services (including

news syndicates, libraries, &on-line information services)

514210 Data Processing Services

Finance and InsuranceDepository Credit Intermediation522110 Commercial Banking522120 Savings Institutions522130 Credit Unions522190 Other Depository Credit

IntermediationNondepository Credit Intermediation522210 Credit Card Issuing522220 Sales Financing522291 Consumer Lending522292 Real Estate Credit (including

mortgage bankers &originators)

522293 International Trade Financing522294 Secondary Market Financing522298 All Other Nondepository Credit

IntermediationActivities Related to CreditIntermediation522300 Activities Related to Credit

Intermediation (including loanbrokers)

Securities, Commodity Contracts, andOther Financial Investments andRelated Activities523110 Investment Banking &

Securities Dealing523120 Securities Brokerage523130 Commodity Contracts Dealing523140 Commodity Contracts

Brokerage

Code523210 Securities & Commodity

Exchanges523900 Other Financial Investment

Activities (including portfoliomanagement & investmentadvice)

Insurance Carriers and RelatedActivities524140 Direct Life, Health, & Medical

Insurance & ReinsuranceCarriers

524150 Direct Insurance & Reinsur-ance (except Life, Health, &Medical) Carriers

524210 Insurance Agencies &Brokerages

524290 Other Insurance RelatedActivities

Funds, Trusts, and Other FinancialVehicles525100 Insurance & Employee Benefit

Funds525910 Open-End Investment Funds

(Form 1120-RIC)525920 Trusts, Estates, & Agency

Accounts525930 Real Estate Investment Trusts

(Form 1120-REIT)525990 Other Financial Vehicles

Real Estate and Rental andLeasingReal Estate531110 Lessors of Residential

Buildings & Dwellings531120 Lessors of Nonresidential

Buildings (exceptMiniwarehouses)

531130 Lessors of Miniwarehouses &Self-Storage Units

531190 Lessors of Other Real EstateProperty

531210 Offices of Real Estate Agents& Brokers

531310 Real Estate PropertyManagers

531320 Offices of Real EstateAppraisers

531390 Other Activities Related toReal Estate

Rental and Leasing Services532100 Automotive Equipment Rental

& Leasing532210 Consumer Electronics &

Appliances Rental532220 Formal Wear & Costume

Rental532230 Video Tape & Disc Rental532290 Other Consumer Goods Rental532310 General Rental Centers532400 Commercial & Industrial

Machinery & EquipmentRental & Leasing

Lessors of Nonfinancial IntangibleAssets (except copyrighted works)533110 Lessors of Nonfinancial

Intangible Assets (exceptcopyrighted works)

Professional, Scientific, andTechnical ServicesLegal Services541110 Offices of Lawyers541190 Other Legal ServicesAccounting, Tax Preparation,Bookkeeping, and Payroll Services541211 Offices of Certified Public

Accountants541213 Tax Preparation Services541214 Payroll Services541219 Other Accounting ServicesArchitectural, Engineering, andRelated Services541310 Architectural Services541320 Landscape Architecture

Services541330 Engineering Services541340 Drafting Services541350 Building Inspection Services


CodeOther Ambulatory Health CareServices621900 Other Ambulatory Health Care

Services (including ambulanceservices & blood & organbanks)

Hospitals622000 HospitalsNursing and Residential CareFacilities623000 Nursing & Residential Care

FacilitiesSocial Assistance624100 Individual & Family Services624200 Community Food & Housing, &

Emergency & Other ReliefServices

624310 Vocational RehabilitationServices

624410 Child Day Care Services

Arts, Entertainment, andRecreationPerforming Arts, Spectator Sports,and Related Industries711100 Performing Arts Companies711210 Spectator Sports (including

sports clubs & racetracks)711300 Promoters of Performing Arts,

Sports, & Similar Events711410 Agents & Managers for Artists,

Athletes, Entertainers, & OtherPublic Figures

711510 Independent Artists, Writers, &Performers

Museums, Historical Sites, andSimilar Institutions712100 Museums, Historical Sites, &

Similar InstitutionsAmusement, Gambling, andRecreation Industries713100 Amusement Parks & Arcades713200 Gambling Industries713900 Other Amusement &

Recreation Industries(including golf courses, skiingfacilities, marinas, fitnesscenters, & bowling centers)

Accommodation and FoodServicesAccommodation721110 Hotels (except casino hotels) &

Motels721120 Casino Hotels721191 Bed & Breakfast Inns721199 All Other Traveler Accommoda-

tion721210 RV (Recreational Vehicle)

Parks & Recreational Camps721310 Rooming & Boarding Houses

CodeFood Services and Drinking Places722110 Full-Service Restaurants722210 Limited-Service Eating Places722300 Special Food Services

(including food servicecontractors & caterers)

722410 Drinking Places (AlcoholicBeverages)

Other ServicesRepair and Maintenance811110 Automotive Mechanical &

Electrical Repair & Mainte-nance

811120 Automotive Body, Paint,Interior, & Glass Repair

811190 Other Automotive Repair &Maintenance (including oilchange & lubrication shops &car washes)

811210 Electronic & PrecisionEquipment Repair &Maintenance

811310 Commercial & IndustrialMachinery & Equipment(except Automotive &Electronic) Repair &Maintenance

811410 Home & Garden Equipment &Appliance Repair & Mainte-nance

811420 Reupholstery & FurnitureRepair

811430 Footwear & Leather GoodsRepair

811490 Other Personal & HouseholdGoods Repair & Maintenance

Personal and Laundry Services812111 Barber Shops812112 Beauty Salons812113 Nail Salons812190 Other Personal Care Services

(including diet & weightreducing centers)

812210 Funeral Homes & FuneralServices

812220 Cemeteries & Crematories812310 Coin-Operated Laundries &

Drycleaners812320 Drycleaning & Laundry

Services (except Coin-Operated)

812330 Linen & Uniform Supply812910 Pet Care (except Veterinary)

Services812920 Photofinishing812930 Parking Lots & Garages812990 All Other Personal ServicesReligious, Grantmaking, Civic,Professional, and SimilarOrganizations813000 Religious, Grantmaking, Civic,

Professional, & SimilarOrganizations

Code541360 Geophysical Surveying &

Mapping Services541370 Surveying & Mapping (except

Geophysical) Services541380 Testing LaboratoriesSpecialized Design Services541400 Specialized Design Services

(including interior, industrial,graphic, & fashion design)

Computer Systems Design andRelated Services541511 Custom Computer Program-

ming Services541512 Computer Systems Design

Services541513 Computer Facilities Manage-

ment Services541519 Other Computer Related

ServicesOther Professional, Scientific, andTechnical Services541600 Management, Scientific, &

Technical Consulting Services541700 Scientific Research &

Development Services541800 Advertising & Related

Services541910 Marketing Research & Public

Opinion Polling541920 Photographic Services541930 Translation & Interpretation

Services541940 Veterinary Services541990 All Other Professional,

Scientific, & Technical Services

Management of Companies(Holding Companies)551111 Offices of Bank Holding

Companies551112 Offices of Other Holding

Companies

Administrative and Supportand Waste Management andRemediation ServicesAdministrative and Support Services561110 Office Administrative Services561210 Facilities Support Services561300 Employment Services561410 Document Preparation

Services561420 Telephone Call Centers561430 Business Service Centers

(including private mail centers& copy shops)

561440 Collection Agencies561450 Credit Bureaus561490 Other Business Support

Services (including reposses-sion services, court reporting,& stenotype services)

Code561500 Travel Arrangement &

Reservation Services561600 Investigation & Security

Services561710 Exterminating & Pest Control

Services561720 Janitorial Services561730 Landscaping Services561740 Carpet & Upholstery Cleaning

Services561790 Other Services to Buildings &

Dwellings561900 Other Support Services

(including packaging & labelingservices, & convention & tradeshow organizers)

Waste Management and RemediationServices562000 Waste Management &

Remediation Services

Educational Services611000 Educational Services

(including schools, colleges, &universities)

Health Care and SocialAssistanceOffices of Physicians and Dentists621111 Offices of Physicians (except

mental health specialists)621112 Offices of Physicians, Mental

Health Specialists621210 Offices of DentistsOffices of Other Health Practitioners621310 Offices of Chiropractors621320 Offices of Optometrists621330 Offices of Mental Health

Practitioners (exceptPhysicians)

621340 Offices of Physical, Occupa-tional & Speech Therapists, &Audiologists

621391 Offices of Podiatrists621399 Offices of All Other Miscella-

neous Health PractitionersOutpatient Care Centers621410 Family Planning Centers621420 Outpatient Mental Health &

Substance Abuse Centers621491 HMO Medical Centers621492 Kidney Dialysis Centers621493 Freestanding Ambulatory

Surgical & Emergency Centers621498 All Other Outpatient Care

CentersMedical and Diagnostic Laboratories621510 Medical & Diagnostic

LaboratoriesHome Health Care Services621610 Home Health Care Services

380900109 FTB 3809 2000 Side 1

A. Check the appropriate box for your entity type:m Individual m Estate m Trust m C corporation m S corporation m Partnership

m Exempt organization m Limited liability company m Limited liability partnershipB. Enter the name of the targeted tax area (TTA) business: _______________________________________________________________________________C. Enter the address (actual location) where the TTA business is conducted:

____________________________________________________________________________________________________________________________D. Enter the name of the specific area of the TTA in which the business and/or investment activity is located. See General Information C, Targeted Tax Area

Designation. __________________________________________________________________________________________________________________E. Principal Business Activity Code number of the TTA business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

Enter the six-digit Principal Business Activity Code from the chart on pages 24 through 26.F. Total number of employees in the TTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________G. Number of employees included in the computation of the hiring credit, if claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________H. Number of new employees included in the computation of the hiring credit, if claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________I. Gross annual receipts of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________J. Total asset value of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

Part I Credits Used

1 Hiring and sales or use tax credits claimed on the current year return:a Hiring credit from Worksheet VI, line 8A, column (f) or line 10, column (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________b Sales or use tax credit from Worksheet VI, line 9A, column (f) or line 11, column (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________Add line 1a and line 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .❚ 1 _________________Note: To figure the amount of credits to carry over, complete Worksheet VI on Side 2.

Part II Business Expense Deduction for Equipment Purchases

2 Enter the cost of qualified property purchased for the TTA that is being deducted as a current yearbusiness expense from Worksheet III, Section A, line 5, column (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 _________________ELECTION: The act of deducting a portion of the cost of any property as a current year expense rather than adding it to thecapital account constitutes an election to treat that property in accordance with R&TC Sections 17267.6 or 24356.6. Thatelection may not be revoked except with the written consent of the Franchise Tax Board (FTB).

Part III Net Operating Loss (NOL) Carryover and Deduction

3 a Enter the NOL carryover from the prior year from Worksheet V, Section C, line 11, column (b) . . . . . . . . . . . . . . . . . . . . 3a _________________b Enter the total NOL deduction used in the current year from Worksheet V, Section C, line 11, column (c). Enter this

amount on Schedule CA (540 or 540NR), line 21e, column B; Form 100, line 20; Form 100W, line 20; Form 100S, line 19;or Form 109, line 3 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3b _________________

c Enter the TTA NOL carryover to future years from Worksheet V, Section C, line 11, column (e) . . . . . . . . . . . . . . . . . . . . 3c _________________ELECTION: For those taxpayers eligible for an NOL carryover under R&TC Sections 17276.2, 17276.4, 17276.5, 17276.6, 24416.2,24416.4, 24416.5, or 24416.6, the act of claiming an NOL carryover on this form constitutes the irrevocable election to apply theloss under R&TC Sections 17276.6 or 24416.6, for taxpayers operating a trade or business within the TTA. If you elect to carryover an NOL under the TTA provisions, you cannot carry over any other type and amount of NOL from this year.

Part IV Portion of Business Attributable to the Targeted Tax Area

4 Enter the average apportionment percentage of your business that is in the TTA from Worksheet IV,Section A, line 4. If your operation is wholly within the TTA, the average apportionment percentage is 100% (1.00) . . . . . . . . . . 4 _________________

Part V Recapture of Deduction and Credits

5 TTA recapture of hiring credit from Worksheet I, Section B, line 2, column (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 _________________6 Recapture of business expense deduction from Worksheet III, Section B, line 2, column (b) . . . . . . . . . . . . . . . . . . . . . . . . . . 6 _________________

Targeted Tax AreaDeduction and Credit Summary

YEAR

2000Social security or California corporation number

Name(s) as shown on return

CALIFORNIA FORM

3809

FEIN

-

Attach to your California tax return.

Secretary of State file number

Qualified Taxpayer’s SIC Code Activity. Caution: See instructions on page 18. ___ ___ ___ ___




8 Hiringcredit

A

B

9 Sales or Ause taxcredit B

Part III Limitation of Credits for S Corporations Only. See instructions.

(a) (b) (c) (d) (e) (f) (g)Credit Credit S corporation Total Total credit Credit used Carryovername amount credit (multiply prior year (add col. (c) this year by (col. (e) minus

col. (b) by 1/3) carryover and col. (d)) S corporation col. (f))

10 Hiringcredit


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

(a) (b) (c) (d)Credit Credit Total Total creditname amount prior year carryover. (add

carryover col. (b) and col. (c))

12 Hiringcredit


Side 2 FTB 3809 2000

Worksheet VI Computation of Credit Limitations — Targeted Tax AreaPart I Computation of Credit Limitations. See instructions.

1 Trade or business income. Individuals: Enter the amount from the Income or Loss Worksheet, line 14, column (c)(page 15) on this line and on line 3 (skip line 2). See instructions on page 18. Note: Corporations which file acombined report, enter the taxpayer’s business income assigned to California (see instructions Part IV) . . . . . . . . . . 1

2 Corporations: Enter the average apportionment percentage from Worksheet IV, Section A, line 4. See instructions . . . 23 Multiply line 1 by line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Enter the TTA NOL deduction from Worksheet V, Section C, line 11, column (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 TTA taxable income. Enter amount from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 a Compute the amount of tax due using the amount on line 5.

See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a6 b Enter the amount of tax from Form 540, line 24; Form 540NR, line 27;

Form 541, line 21; Form 100, or Form 100W, line 23; Form 100S, line 22; orForm 109, line 7 or line 15. Corporations and S corporations, see instructions . . . . 6b

7 Enter the smaller of line 6a or line 6b. This is the limitation based on the TTA income. Go to Part II, Part III, or Part IV.See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

380900209

380900109 FTB 3809 2000 Side 1

A. Check the appropriate box for your entity type:m Individual m Estate m Trust m C corporation m S corporation m Partnership

m Exempt organization m Limited liability company m Limited liability partnershipB. Enter the name of the targeted tax area (TTA) business: _______________________________________________________________________________C. Enter the address (actual location) where the TTA business is conducted:

____________________________________________________________________________________________________________________________D. Enter the name of the specific area of the TTA in which the business and/or investment activity is located. See General Information C, Targeted Tax Area

Designation. __________________________________________________________________________________________________________________E. Principal Business Activity Code number of the TTA business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

Enter the six-digit Principal Business Activity Code from the chart on pages 24 through 26.F. Total number of employees in the TTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________G. Number of employees included in the computation of the hiring credit, if claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________H. Number of new employees included in the computation of the hiring credit, if claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________I. Gross annual receipts of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________J. Total asset value of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

Part I Credits Used

1 Hiring and sales or use tax credits claimed on the current year return:a Hiring credit from Worksheet VI, line 8A, column (f) or line 10, column (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________b Sales or use tax credit from Worksheet VI, line 9A, column (f) or line 11, column (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________Add line 1a and line 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .❚ 1 _________________Note: To figure the amount of credits to carry over, complete Worksheet VI on Side 2.

Part II Business Expense Deduction for Equipment Purchases

2 Enter the cost of qualified property purchased for the TTA that is being deducted as a current yearbusiness expense from Worksheet III, Section A, line 5, column (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 _________________ELECTION: The act of deducting a portion of the cost of any property as a current year expense rather than adding it to thecapital account constitutes an election to treat that property in accordance with R&TC Sections 17267.6 or 24356.6. Thatelection may not be revoked except with the written consent of the Franchise Tax Board (FTB).

Part III Net Operating Loss (NOL) Carryover and Deduction

3 a Enter the NOL carryover from the prior year from Worksheet V, Section C, line 11, column (b) . . . . . . . . . . . . . . . . . . . . 3a _________________b Enter the total NOL deduction used in the current year from Worksheet V, Section C, line 11, column (c). Enter this

amount on Schedule CA (540 or 540NR), line 21e, column B; Form 100, line 20; Form 100W, line 20; Form 100S, line 19;or Form 109, line 3 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3b _________________

c Enter the TTA NOL carryover to future years from Worksheet V, Section C, line 11, column (e) . . . . . . . . . . . . . . . . . . . . 3c _________________ELECTION: For those taxpayers eligible for an NOL carryover under R&TC Sections 17276.2, 17276.4, 17276.5, 17276.6, 24416.2,24416.4, 24416.5, or 24416.6, the act of claiming an NOL carryover on this form constitutes the irrevocable election to apply theloss under R&TC Sections 17276.6 or 24416.6, for taxpayers operating a trade or business within the TTA. If you elect to carryover an NOL under the TTA provisions, you cannot carry over any other type and amount of NOL from this year.

Part IV Portion of Business Attributable to the Targeted Tax Area

4 Enter the average apportionment percentage of your business that is in the TTA from Worksheet IV,Section A, line 4. If your operation is wholly within the TTA, the average apportionment percentage is 100% (1.00) . . . . . . . . . . 4 _________________

Part V Recapture of Deduction and Credits

5 TTA recapture of hiring credit from Worksheet I, Section B, line 2, column (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 _________________6 Recapture of business expense deduction from Worksheet III, Section B, line 2, column (b) . . . . . . . . . . . . . . . . . . . . . . . . . . 6 _________________

Targeted Tax AreaDeduction and Credit Summary

YEAR

2000Social security or California corporation number

Name(s) as shown on return

CALIFORNIA FORM

3809

FEIN

-

Attach to your California tax return.

Secretary of State file number

Qualified Taxpayer’s SIC Code Activity. Caution: See instructions on page 18. ___ ___ ___ ___




8 Hiringcredit

A

B

9 Sales or Ause taxcredit B

Part III Limitation of Credits for S Corporations Only. See instructions.

(a) (b) (c) (d) (e) (f) (g)Credit Credit S corporation Total Total credit Credit used Carryovername amount credit (multiply prior year (add col. (c) this year by (col. (e) minus

col. (b) by 1/3) carryover and col. (d)) S corporation col. (f))

10 Hiringcredit


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

(a) (b) (c) (d)Credit Credit Total Total creditname amount prior year carryover. (add

carryover col. (b) and col. (c))

12 Hiringcredit


Side 2 FTB 3809 2000

Worksheet VI Computation of Credit Limitations — Targeted Tax AreaPart I Computation of Credit Limitations. See instructions.

1 Trade or business income. Individuals: Enter the amount from the Income or Loss Worksheet, line 14, column (c)(page 15) on this line and on line 3 (skip line 2). See instructions on page 18. Note: Corporations which file acombined report, enter the taxpayer’s business income assigned to California (see instructions Part IV) . . . . . . . . . . 1

2 Corporations: Enter the average apportionment percentage from Worksheet IV, Section A, line 4. See instructions . . . 23 Multiply line 1 by line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Enter the TTA NOL deduction from Worksheet V, Section C, line 11, column (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 TTA taxable income. Enter amount from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 a Compute the amount of tax due using the amount on line 5.

See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a6 b Enter the amount of tax from Form 540, line 24; Form 540NR, line 27;

Form 541, line 21; Form 100, or Form 100W, line 23; Form 100S, line 22; orForm 109, line 7 or line 15. Corporations and S corporations, see instructions . . . . 6b

7 Enter the smaller of line 6a or line 6b. This is the limitation based on the TTA income. Go to Part II, Part III, or Part IV.See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

380900209


How to Get California Tax Information (Keep This Page For Future Use)Your Rights as a TaxpayerOur goal at the Franchise Tax Board (FTB) isto make certain that your rights are protectedso that you will have the highest confidence inthe integrity, efficiency, and fairness of ourstate tax system. FTB Publication 4058,California Taxpayers’ Bill of Rights, includesinformation on your rights as a Californiataxpayer, the Taxpayers’ Rights AdvocateProgram, and how you can request writtenadvice from the FTB on whether a particulartransaction is taxable. See “Where to Get TaxForms and Publications” on this page for howto get this publication.

Where to Get Tax Forms andPublicationsBy Internet – You may download, view, andprint California tax forms and publications. Goto our Website at: www.ftb.ca.govBy phone – To order 1998, 1999, and 2000California tax forms and publications and2000 federal booklets, call our automatedphone service. To order a form:• Refer to the list in your tax booklet and

find the code number for the form youwant to order.

• Call (800) 338-0505 and follow theinstructions.

Please allow two weeks to receive your order.If you live outside California, please allowthree weeks to receive your order.In person – Most libraries, post offices, andbanks provide free California personal incometax booklets during the filing season. Manylibraries and some quick print businesses haveforms and schedules for you to photocopy. (Anominal fee may be required.) Note: Employeesat libraries, post offices, banks, and quick printbusinesses cannot provide tax information orassistance.By mail – Write to:

TAX FORMS REQUEST UNITFRANCHISE TAX BOARDPO BOX 307RANCHO CORDOVA CA 95741-0307

LettersYou may write to us to get a written reply toyour question or to reply to a notice we sentyou. Be sure your letter includes your FEIN,Secretary of State number, Californiacorporation number, or social securitynumber, your daytime and evening telephonenumbers, and a copy of the notice (ifapplicable). Send your letter to:

PROFESSIONAL RESOURCES ANDEDUCATION SECTION MS F-228FRANCHISE TAX BOARDPO BOX 1468SACRAMENTO CA 95812-1468

We will respond to your letter within sixweeks. In some cases, we may need to callyou for additional information. Do not attachcorrespondence to your tax return unless thecorrespondence relates to an item on yourreturn.

General Toll-Free Phone ServiceBetween January 2 – April 16, 2001, ourgeneral toll-free phone service is available:• Monday – Friday, 6 a.m. until midnight;

and• Saturdays and holidays, 7 a.m. until 4 p.m.After April 16, 2001, our general toll-freephone service is available:• Monday – Friday, 7 a.m. until 8 p.m.; and• Saturdays, 7 a.m. until 4 p.m.Note: We may modify these hours withoutnotice to meet operational needs.From within the

United States . . . . . . . . . (800) 852-5711From outside the

United States . . . . . . . . . (916) 845-6500(not toll-free)

Assistance for persons with disabilities:The FTB complies with the Americans withDisabilities Act. Persons with a hearing orspeech impairment, call:From voice phone . . . . . . . . (800) 735-2922

(California Relay Service)From TTY/TDD . . . . . . . . . . (800) 822-6268

(Direct line to FTB customer service)For all other assistance or special accommo-dations, call (800) 852-5711.For federal tax questions:Call the IRS at . . . . . . . . . . (800) 829-1040Asistencia bilingüe en españolPara obtener servicios en español y asistenciapara completar su declaración de impuestos/formularios, llame al número de teléfono(anotado arriba) que le corresponde.

Geographic BoundariesFurther information about geographicboundaries of the TTA is available from:

ENTERPRISE ZONE PROGRAMSCA TRADE AND COMMERCE AGENCY801 K STREET SUITE 1700SACRAMENTO CA 95814Telephone: (916) 324-8211FAX: (916) 322-7214Website: www.commerce.ca.gov

Economic Development Area(Information Only)Further information about the TTA taxincentives is available from:

FRANCHISE TAX BOARDTelephone: (916) 845-3464FAX: (916) 845-6791Website: www.ftb.ca.gov

Field OfficesYou can get information, California tax forms,and resolve problems on your account if youvisit one of our field offices. Our field officehours are Monday through Friday, 8 a.m. until5 p.m. These offices will remain openadditional hours and days from January 16through April 16, 2001. For the extendedhours of the office nearest you, call(800) 338-0505, select personal income tax,then general information, and enter code 110when instructed to do so.Field Office AddressBakersfield 1800 30th St, Ste 370Fresno 2550 Mariposa St,

Rm 3002Long Beach 4300 Long Beach Blvd,

Ste 700BLos Angeles 300 S Spring St, Ste 5704Oakland 1515 Clay St, Ste 305Sacramento 3321 Power Inn Road

Ste 250San Bernardino 464 W 4th St, Ste 454San Diego 7575 Metropolitan Dr,

Ste 201San Francisco 455 Golden Gate Ave,

Ste 7400San Jose 96 N Third St, 4th FlSanta Ana 600 W Santa Ana Blvd,

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& Automated Toll-Free Phone Service (Keep This Page For Future Use)Call our automated toll-free phone service to:• Order California tax forms and publications and

federal booklets;• Get current year tax refund information;• Get balance due and payment information; and• Hear recorded answers to many of your

questions about California taxes.Our automated phone service is available inEnglish and Spanish to callers with touch-tonetelephones. Have paper and pencil ready to takenotes.Call from within the

United States . . . . . . . . . . . . . . . . (800) 338-0505Call from outside the

United States (not toll-free) . . . (916) 845-6600Current Year Personal Income Tax RefundInformationYou should wait at least eight weeks after you fileyour tax return before you call to find out aboutyour refund. You will need your social securitynumber, the numbers in your street address, boxnumber, or route number, and your ZIP Code touse this service. Refund status information isavailable 24 hours a day, 7 days a week. Call ourautomated phone service, select personal incometax information, then refund information, andfollow the recorded instructions.Personal Income Tax Balance Due and PaymentInformationYou should wait at least 45 days from the date youmailed your payment before you call to verifyreceipt of your payment. You will need your socialsecurity number, the numbers in your streetaddress, box number, or route number, and yourZIP code to use this service. Balance due andpayment information is available 24 hours a day,7 days a week.Order Forms and PublicationsSee the instructions for ordering forms andpublications by phone on page 31. For personalincome tax forms, this service is available 24hours a day, 7 days a week. Business entity formsare available from 6 a.m. until 8 p.m., Mondaythrough Friday.Answers To Tax QuestionsRecorded answers to your tax questions areavailable 24 hours a day, 7 days a week. To receiveanswers to any of the following questions, call ourautomated phone service, select either personalincome tax or business entity tax information, thengeneral information, and enter the three-digit codewhen instructed to do so.

Personal Income Tax InformationCode Filing Assistance100 – Do I need to file a return?110 – Field office hours of availability, January 16

- April 16, 2001.111 – Which form should I use?112 – How do I file electronically and get a fast

refund?200 – Where can I pick up a form today?201 – How can I get an extension to file?202 – There is no envelope in the booklet. Where

do I send my return?203 – What is and how do I qualify for the

nonrefundable renter’s credit?204 – I never received a Form W-2. What do I do?205 – I have no withholding taken out. What do I

do?206 – Do I have to attach a copy of my federal

return?207 – Should I file my return even though I do

not have the money to pay?208 – How do I figure my estimated tax

payments?209 – I lived in California for part of the year. Do I

have to file a return?210 – I do not live in California. Why do I have to

file a return?211 – How do I figure my IRA deduction?

212 – How do I claim my disaster related loss?215 – Who qualifies me to use the head of

household filing status?216 – I’m due a refund. Do I still need to file a

return?217 – I am currently/was in the military. Do I have

to file a California return?218 – I’m in the military. Do I have to use the

same filing status as federal?219 – I sold my personal residence. How do I

report the sale to California?220 – There is no difference in my state and

federal depreciation, business income, andcapital gain income. What do I do?

221 – What is community property?222 – How much can I deduct for vehicle license

fees?227 – How do I get a refund of excess SDI?239 – Where can I get help with preparing and

filing my income tax return?240 – Does a tax return have to be filed for a

deceased taxpayer?Refunds

300 – My spouse has passed away. You sent arefund with both our names on it. What doI do?

301 – I got a letter saying you sent my refund toanother agency. Why?Penalties

400 – I have an extension of time to file myreturn. Why did I get a penalty?

401 – I filed my return on time. Why did I get apenalty?

402 – How can I protest a penalty?403 – What is the estimate penalty rate?

Notices and Bills500 – I received a bill and I cannot pay it in full.

What do I do?501 – Why didn’t you give me credit for my

withholding?502 – You didn’t give me credit for my dependent.

What do I do?504 – I’m head of my house. Why was I denied

head of household filing status?505 – Why was my IRA deduction denied?506 – How do I get information about my

Form 1099-G?508 – I received a notice that didn’t show all

payments made. How do I get credit forthem?Tax For Children

601 – Can my child take a personal exemptioncredit when I claim her or him as adependent on my return?

602 – Federal law limits the standard deduction.Is the state law the same?Miscellaneous

610 – Can I pay my taxes with a credit card?611 – What address do I send my payment to?612 – I mailed my return and haven’t heard

anything. Should I send a copy of myreturn?

613 – I forgot to attach my Form(s) W-2 when Imailed my return. What do I do?

614 – I forgot to attach a copy of my federalreturn. What do I do?

615 – How do I get a copy of my state tax return?616 – What should I do if my federal tax return

was examined and changed by the IRS?617 – What are the current interest rates?619 – How do I report a change of address?

Business Entity Tax InformationCode Filing Assistance715 – If my actual tax is less than the minimum

franchise tax, what figure do I put online 23 of Form 100 or line 23 ofForm 100W?

717 – What are the tax rates for corporations?718 – How do I get an extension of time to file?722 – When does my corporation have to file a

short-period return?734 – Is my corporation subject to a franchise tax

or income tax?

S Corporations704 – Is an S corporation subject to the minimum

franchise tax?705 – Are S corporations required to file

estimated payments?706 – What forms do S corporations file?707 – The tax for my S corporation is less than

the minimum franchise tax. What figure doI put on line 22 of Form 100S?

708 – Where do S corporations make adjustmentsfor state and federal law differences onSchedule K-1 (100S) and where dononresident shareholders get theirCalifornia source income from theirSchedule K-1 (100S)?Exempt Organizations

709 – How do I get tax-exempt status?710 – Does an exempt organization have to file

Form 199?735 – How can an exempt organization incorpo-

rate without paying corporation fees andcosts?

736 – I have exempt status. Do I need to fileForm 100 or Form 109 in addition toForm 199?Minimum Tax and Estimate Tax

712 – What is the minimum franchise tax?714 – My corporation is not doing business; does

it have to pay the minimum franchise tax?716 – When are my corporation’s estimated

payments due?Billings and Miscellaneous Notices

723 – I received a bill for $250. What is this for?728 – Why was my corporation suspended?729 – Why is my subsidiary getting a request for

a return when we filed a combined report?Tax Clearance

724 – How do I dissolve my corporation?725 – What do I have to do to get a tax

clearance?726 – How long will it take to get a tax clearance

certificate?727 – My corporation was suspended/

forfeited. Can I still get a tax clearance?Miscellaneous

617 – What are the current interest rates?700 – Who do I need to contact to start a

business?701 – I need a state ID number for my business.

Who do I contact?702 – Can you send me an employer’s tax guide?703 – How do I incorporate?719 – How do I properly identify my corporation

when dealing with the Franchise Tax Board?720 – How do I obtain information about

changing my corporation’s name?721 – How does my corporation change its

accounting period?737 – Where do I send my payment?738 – What is electronic funds transfer?739 – How do I get a copy of my state corpora-

tion or partnership tax return?740 – What requirements do I have to report

municipal bond interest paid by a stateother than California?

750 – How do I organize or register an LLC?751 – How do I cancel the registration of my

LLC?752 – What tax forms do I use to file as an LLC?753 – When is the annual tax payment due?754 – What extension voucher do I use to pay the

LLC fee and/or member tax?755 – Where does a LLC send its tax payments?756 – As an LLC I never did any business or even

opened a door, bank account, or anything.Why do I owe the $800 annual tax?

757 – How are LLC fees calculated?758 – I’m a corporation that has converted to an

LLC during the current year. Am I liable forthe tax as a corporation and an LLC in thesame year?

759 – If I have nonresident members and cannotget all their signatures on the consentrelease form, can I still file the return?

forms & instructions this booklet contains: 3809 … · and reform act of 1998 (public law...

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