2017 Instructions for Form FTB 3809 Targeted Tax Area Business Booklet

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

What’s New

Principal Business Activity Codes

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

General Information

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

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

Targeted Tax Area (TTA) Credits Carryover Period

The portion of any TTA sales or use tax credit or hiring credit remaining for carryover to taxable years beginning on or after January 1, 2014, shall be carried over only to the succeeding 10 taxable years if necessary, or until the credit is exhausted, whichever occurs first. Any hiring credits generated in the current taxable year for employees hired on or before December 31, 2012, and unusable in the current taxable year, may be carried over to the succeeding 10 taxable years.

Repeal of Geographically Targeted Economic Development Area Tax Incentives

The California legislature repealed and made changes to all of the Geographically Targeted Economic Development Area (G-TEDA) Tax Incentives. Enterprise Zones (EZ) and Local Agency Military Base Recovery Areas (LAMBRA) were repealed on January 1, 2014.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

Single-Sales Factor Formula

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

Expired Targeted Tax Area

The TTA has expired as of December 31, 2012. Generally, no further TTA incentives can be generated after the expiration date. See below for a discussion on how each incentive expired:

• TTA Hiring Credit - Taxpayers can no longer generate/incur TTA hiring credits for employees hired on or after January 1, 2013. However, qualified taxpayers can generate/incur TTA hiring credits for qualified employees hired prior to the TTA expiration date for wages paid or incurred within the 60-month period of the TTA hiring credit.
• TTA Sales or Use Tax Credit - For taxpayers engaged in a trade or business in an expired TTA, the sales or use tax credit is not available for assets purchased and/or placed in service on or after January 1, 2013. Taxpayers can claim the sales or use tax credit carryover from prior years.
• TTA NOL Carryover Deduction – Taxpayers can no longer generate/incur any TTA NOL for taxable years beginning on or after January 1, 2013. Taxpayers can claim an NOL carryover deduction from prior years.

Assignment of Credit

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

For more information, see instructions for Schedule Z, Computation of Credit Limitations, on page 12, Assignment of Credit, or get form FTB 3544, Election to Assign Credit Within Combined Reporting Group, or form FTB 3544A, List of Assigned Credit Received and/or Claimed by Assignee or go to ftb.ca.gov and search for credit assignment.

Minimum Wage

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

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

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

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

Pass-Through Entities

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

Introduction

Economic Development Area (EDA) Tax Incentives

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

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

Additional information on other EDAs can be found in the following FTB tax booklets:

• EZ tax incentives, get FTB 3805Z, Enterprise Zone Business Booklet.
• LAMBRA tax incentives, get FTB 3807, Local Agency Military Base Recovery Area Business Booklet.
• MEA hiring credit, get FTB 3808, Manufacturing Enhancement Area Business Booklet.

References in this booklet to the "TTA" are interpreted as "the boundaries of the former TTA as it existed on December 31, 2012."

Reporting Requirement

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

Complete items A through I on Side 1 of form FTB 3809, Targeted Tax Area Deduction and Credit Summary, as applicable. This information will be used to meet the FTB’s statutory reporting requirement.

Purpose

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

• Hiring credit
• Sales or use tax credit carryover
• NOL carryover deduction

Use this booklet to determine the correct amount of credits and deductions that a business may claim for operating or investing in a business located within a designated TTA. Complete the worksheets in this booklet for each credit or deduction for which the business is eligible. Then enter the total credits and deductions on form FTB 3809.

Note: There is no Worksheet II in this booklet.

Targeted Tax Area Designation

California established the TTA program to stimulate development in a selected economically depressed area of Tulare County. The program offers special tax incentives to entities and individuals located in the Tulare TTA and engaged in a trade or business within the selected Standard Industrial Codes listed on pages 17 through 19 of this booklet.

All of the incorporated cities in Tulare County and portions of the unincorporated areas of Tulare County received final designation as the TTA effective November 1, 1998. The designation was binding for 15 years, commencing from January 1, 1998. Note: The TTA designation expired on December 31, 2012. The incorporated cities in Tulare County are:

• Cutler-Orosi
• Dinuba
• Earliment
• Exeter
• Farmersville
• Goshen
• Lindsay
• Pixley
• Porterville
• Traver
• Tulare
• Visalia
• Woodlake

For business eligibility or zone related information, including questions regarding TTA geographic boundaries, contact the HCD or the local zone program manager where the business is located. Go to hcd.ca.gov and search for directory of zone contacts to find Directory of Economic Development Areas.

For information that is zone-specific, but not tax-specific, you may contact the HCD. See page 24 for the HCD contact information.

Important Considerations

TTA tax incentives apply only to the following item:

• Qualified employees hired after November 1, 1998 and prior to the TTA expiration date.

Eligibility

To qualify for the tax incentive described above, a taxpayer must meet both of the following requirements:

1. Be engaged in a trade or business within the TTA.
2. Be engaged in a line of business described in Standard Industrial Classification (SIC) Codes 2000 to 2099, inclusive; 2200 to 3999, inclusive; 4200 to 4299, inclusive; 4500 to 4599, inclusive; and 4700 to 5199, inclusive, of the SIC Manual published by the United States Office of Management and Budget, 1987 Edition.

In the case of any pass-through entity, the determination of whether a taxpayer is a qualified taxpayer for the hiring credit is made at the entity level. Any hiring credit that is allowed to the pass-through entity is also passed through to the partners or shareholders.

If your business is located within and outside the TTA, see Part II on page 7 for instructions on how to apportion income.

Forms Table

The titles of forms referred to in this booklet are:

Form 100

California Corporation Franchise or Income Tax Return

Form 100S

California S Corporation Franchise or Income Tax Return

Form 100W

California Corporation Franchise or Income Tax Return – Water’s-Edge Filers

Form 109

California Exempt Organization Business Income Tax Return

Form 540

California Resident Income Tax Return

Long Form 540NR

California Nonresident or Part-Year Resident Income Tax Return

Form 541

California Fiduciary Income Tax Return

Form 565

Partnership Return of Income

Form 568

Limited Liability Company Return of Income

Schedule CA (540)

California Adjustments – Residents

Schedule CA (540NR)

California Adjustments – Nonresidents or Part-Year Residents

Schedule P (540)

Alternative Minimum Tax and Credit Limitations – Residents

Schedule P (540NR)

Alternative Minimum Tax and Credit Limitations – Nonresidents and Part-Year Residents

Schedule R

Apportionment and Allocation of Income

FTB Pub. 1061

Guidelines for Corporations Filing a Combined Report

Schedule C (100S)

S Corporation Tax Credits

Schedule D-1

Sales of Business Property

Schedule K-1 (100S)

Shareholder’s Share of Income, Deductions, Credits, etc.

Schedule K-1 (541)

Beneficiary’s Share of Income, Deductions, Credits, etc.

Schedule K-1 (565)

Partner’s Share of Income, Deductions, Credits, etc.

Schedule K-1 (568)

Member’s Share of Income, Deductions, Credits, etc.

FTB 3544

Election to Assign Credit Within Combined Reporting Group

FTB 3544A

List of Assigned Credit Received and/or Claimed by Assignee

Who Can Claim the TTA Tax Incentives?

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

How to Claim Deductions and Credits

To claim any TTA deduction or credit, attach a completed form FTB 3809 to your California tax return.

Attach a separate form FTB 3809 for each business you operate or invest in that is located within the TTA. Also, complete the following schedule and/or worksheets to report credits and deductions incurred:

• Corporations complete Schedule Z and all the worksheets, except for Worksheet III, Section B.
• Sole proprietors complete Schedule Z and all the worksheets.
• For trusts, estates, and partnerships, complete Worksheet IA and Worksheet III, Section A.
• Individual investors receiving pass-through TTA credits complete Worksheet III, Section B and Schedule Z. All other investors complete Worksheet III, Section A and Schedule Z.
• Individual investors receiving a pass-through loss, and having an overall NOL carryover, complete Worksheet III, Section B and Worksheet IV. All other investors complete Worksheet IV.

Schedule Z is on Side 2 of form FTB 3809.

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

Form 540 filers:

Claim TTA tax incentives on Form 540, lines 43 through 45, as applicable.

Long Form 540NR filers:

Claim TTA tax incentives on Long Form 540NR, lines 58 through 60, as applicable.

Form 100 filers:

Claim TTA tax incentives on Form 100, line 20, lines 24 through 26, as applicable.

Form 100S filers:

Claim TTA tax incentives on Form 100S, line 18, lines 22 through 24 as applicable.

Form 100W filers:

Claim TTA tax incentives on Form 100W, line 20, lines 24 through 26, as applicable.

Form 109 filers:

Check the “Yes” box for the TTA question I at the top of Form 109, Side 1.

Keep all completed worksheets and supporting documents for your records.

Form FTB 3809 – Instructions for items A through I

For corporations, estates, trusts, partnerships, exempt organizations, and sole proprietors who operate businesses in the TTA, complete items A through I.

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

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

To qualify for the TTA hiring credit, you must be engaged in a trade or business within the selected SIC listed on page 17 through page 19 of this booklet. Enter the SIC code of the establishment that qualifies you to take this credit on form FTB 3809, Side 1. If your business has more than one establishment, and if more than one of them qualifies you to take this credit, enter the SIC code that best represents your primary qualifying establishment.

The PBA codes are based on the North American Industry Classification System published by the United States Office of Management and Budget. The PBA codes are listed on page 20 through page 22. Enter the PBA code of your principal activities on form FTB 3809, Side 1.

Part I – Credits

Line 1a – Hiring Credit

The TTA has expired as of December 31, 2012. Generally, no further TTA incentives can be generated after the expiration date. Taxpayers can no longer generate/incur TTA hiring credits for employees hired on or after January 1, 2013. However, qualified taxpayers can generate/incur TTA hiring credits for qualified employees hired prior to the TTA expiration date for wages paid or incurred within the 60-month period of the TTA hiring credit.

The portion of any TTA hiring credit remaining for carryover to taxable years beginning on or after January 1, 2014, shall be carried over only to the succeeding 10 taxable years if necessary, or until the credit is exhausted, whichever occurs first. Any hiring credits generated in the current taxable year for employees hired on or before December 31, 2012, and unusable in the current taxable year, may be carried over to the succeeding 10 taxable years.

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

Qualified employers conducting a trade or business within the TTA may claim the hiring credit for a qualified employee. A qualified employee is an individual who meets all of the following:

• Was hired after November 1, 1998, and before January 1, 2013.
• Spends at least 90% of his or her work time (for the qualified employer) on activities directly related to the conduct of a trade or business located within the TTA.
• Performs at least 50% of the work (for the qualified employer) within the boundaries of the TTA.
• Immediately preceding employment with qualified employer, was any of the following:
  1. A person receiving or eligible to receive subsidized employment, training, or services funded by the federal Job Training Partnership Act (JTPA) or its successor.
  2. A person eligible to be a voluntary or mandatory registrant under the Greater Avenues for Independence Act of 1985 (GAIN) or its successor.
  3. A member of a targeted group as defined in the federal Work Opportunity Tax Credit (WOTC) or its successor.
  4. An economically disadvantaged individual 14 years of age or older.
  5. A qualified dislocated worker.
  6. A disabled individual eligible for, enrolled in, or who completed a state rehabilitation plan.
  7. A service-connected disabled veteran.
  8. A veteran of the Vietnam era.
  9. A veteran who recently separated from military service.
  10. An ex-offender.
  11. A person eligible for or a recipient of any of the following:
      • Federal Supplemental Security Income (SSI) benefits.
      • Aid to Families with Dependent Children (AFDC).
      • Food stamps.
      • State and local general assistance.
  12. A Native American.
  13. A resident of the TTA.

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

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

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

The credit is based on the smaller of the following:

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

Where the California minimum wage was higher than the federal minimum wage, the California minimum wage was used for purposes of computing the TTA hiring credit. The minimum wage prior to July 1, 2014, was $8.00 per hour. For purposes of computing the TTA hiring credit, 150% of the minimum wage was $12.00 per hour. After July 1, 2014, the minimum wage was $9.00 until January 1, 2016. For purposes of computing the TTA hiring credit, 150% of the minimum wage was $13.50 per hour.

Example:

John Anderson was hired on January 1, 2012. John’s hourly rate for the first month was the minimum wage of $8.00. At the beginning of the second month, his hourly rate increased to $8.50. For the third month, John’s hourly rate increased to $12.50. The hourly rate that qualifies for the credit is limited to 150% of the minimum wage, or $12.00 per hour. The amount of qualified wages is computed as follows:

Record Keeping

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

• 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 the minimum wage.
• Location of the employee’s job site and duties performed.
• Records of any other federal or state subsidies received for hiring the qualified employee.
• Total qualified wages per month for each month of employment.

Instructions for Worksheet IA – Hiring Credit Computation & Recapture

Section A – Credit Computation

Line 1, column (a)

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

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

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

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

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

Add the amounts in each column.

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

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

Line 4

1. For partnerships, enter the amount from line 4 on form FTB 3809, Side 1, Part I, line 1a. Include the current year hiring credit amount on Form 565 and Form 568, Schedule K, line 15f and the distributive share of the credit to partners and members on Schedule K-1 line 15f. In addition, add the entire amount of the credit on Schedule K, line 1, column (c).
2. For corporations, individuals, estates, and trusts, enter the amount from line 4 on Schedule Z, as follows:
   • Part II, line 8B, column (b) for corporations, individuals, estates, and trusts.
   • Part III, line 10, column (b) for S corporations.
   • Part IV, line 12, column (b) for corporations and S corporations subject to paying only the minimum franchise tax.

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

Credit Limitations

• The amount of hiring credit claimed may not exceed the amount of tax on TTA business income in any year. Use Schedule Z on Side 2 of form FTB 3809 to compute the credit limitation.
• The portion of any TTA hiring credit remaining for carryover to taxable years beginning on or after January 1, 2014, shall be carried over only to the succeeding 10 taxable years if necessary, or until the credit is exhausted, whichever occurs first.
• In the case where the business is qualified to take the TTA hiring credit as well as another credit (e.g., EZ, MEA, or LAMBRA hiring credit) for the same wage expense, the business may claim only one credit.
• S corporations may claim only ⅓ of the TTA hiring credit against the 1.5% entity-level tax (3.5% for financial S corporations). S corporations can pass through 100% of the credit to their shareholders. The ⅓ of the credit can be carried over if it cannot be used in the current year. The remaining ⅔ must be disregarded and may not be carried over.

Section B – Credit Recapture

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

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

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

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

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

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

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

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

Enter the name(s) of employee(s) even if one of the above exceptions to recapture is met.

Line 1, column (a)

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

Line 1, column (b)

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

Line 2

Enter the amount from line 2, column (b) on form FTB 3809, Side 1, Part IV, line 4.

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

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

Indicate that you included the hiring credit recapture on your tax return by writing “FTB 3809” in the space provided on the schedule or form.

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

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

Line 1b – Sales or Use Tax Credit Carryover

The TTA has expired as of December 31, 2012. Generally, no further TTA incentives can be generated after the expiration date. For taxpayers engaged in a trade or business in an expired TTA, the sales or use tax credit may only be generated for qualified property purchased on or before December 31, 2012, and placed in service on or before December 31, 2012. The sales or use tax credit is not available for assets purchased and/or placed in service on or after January 1, 2013.

You may claim a credit carryover for the sales or use tax paid or incurred on qualified property under R&TC Sections 17053.33 and 23633, only if a carryover is available from taxable years 1998 through 2012.

Credit Limitations

• The amount of sales or use tax credit carryover claimed may not exceed the amount of tax on the TTA business income in any year.
• The portion of any TTA sales or use tax credit remaining for carryover to taxable years beginning on or after January 1, 2014, shall be carried over only to the succeeding 10 taxable years if necessary, or until the credit is exhausted, whichever occurs first.
• In the case where the business is qualified to take the TTA sales or use tax credit as well as another state credit (e.g. enterprise zone sales or use tax credit, or LAMBRA sales or use tax credit) for the same piece of property, the business may only claim one credit for that property.

Worksheet IA: Hiring Credit Computation and Recapture – Targeted Tax Area

Section A: Hiring Credit Computation

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

1. 	Qualified wages paid or incurred for year of employment
   (a) Employee’s name	(b) 1st year	(c) 2nd year	(d) 3rd year	(e) 4th year	(f) 5th year

2. Total. See instructions: (b) 1st year, (c) 2nd year, (d) 3rd year, (e) 4th year, (f) 5th year
3. Multiply line 2 by the percentage for each column. See instructions: (b) 1st year: .50, (c) 2nd year: .40, (d) 3rd year: .30, (e) 4th year: .20, (f) 5th year: .10
4. Add line 3, column (b) through column (f). See instructions.

Section B: Hiring Credit Recapture

1. (a) Terminated employee’s name	(b) Recapture amount

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

Part II – Portion of Business Attributable to the Targeted Tax Area

TTA tax credits are limited to the tax on business income attributable to operations within the TTA. TTA deductions are limited to business income attributable to operations within the TTA. If the business is located within and outside the TTA, determine the portion of total business operations that are attributable to the TTA. Each taxpayer must complete one form FTB 3809 for each zone, and therefore, must also compute the income limitation for each zone.

Business Income vs. Nonbusiness Income

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

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

For corporations and entities doing business in and outside of the TTA, use Worksheet III, Section A, to determine the TTA apportionment factor to determine the amount of business income attributable to the Targeted Tax Area.

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

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

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

For an individual, use Worksheet III, Section B to determine business income attributable to the TTA. Business income includes, but is not limited to, California business income or loss from federal Form 1040, Schedules C,D,E,F, and California Schedule D-1, Sales of Business Property, (or federal Form 4797, Sales of Business Property, if California Schedule D-1 is not needed), as well as wages. Be sure to include casualty losses, disaster losses, and any business deductions reported on federal Form 1040 Schedule A as itemized deductions.

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

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

Apportionment

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

Property Factor

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

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

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

Payroll Factor

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

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

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

Compensation Within the TTA

Compensation is considered to be within the TTA if any one of the following tests is met:

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

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

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

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

Corporations Filing a Combined Report

When determining the income attributable to the TTA, the business income of each corporation doing business in the TTA is the business income apportioned to California as determined under combined report mechanics. Get FTB Pub. 1061 for further information on combined reports and entity income apportionment. Each corporation computes the income attributable to the TTA by multiplying California business by TTA apportionment factor computed in Worksheet III, Section A. The TTA property and payroll factors used in the determination of TTA income includes only the taxpayer’s California amounts in the denominator.

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

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

Business income apportioned to the TTA is determined as follows:

Instructions for Worksheet III – Income or Loss Apportionment

Section A – Income Apportionment

If the business operates solely within the TTA and all its property and payroll are solely within the TTA, enter 100% (1.00) on Section A, line 4, column (c). Do not complete the rest of Worksheet III.

Use Worksheet III, Section A, Income Apportionment, to determine the amount of business income apportioned to the TTA. The apportioned TTA business income determines the amount of the tax incentives that can be used. A taxpayer’s TTA business income is its California business income multiplied by the specific TTA apportionment percentage computed in Worksheet III, Section A.

Property Factor

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

Payroll Factor

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

Section B – Income or Loss Apportionment

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

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

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

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

The first step is to determine which portion of the taxpayer’s net income is “business income” and which portion is “nonbusiness income,” since only business income is apportioned to the TTA. See Part II, Portion of Business Attributable to the Targeted Tax Area, for a complete discussion of business and nonbusiness income.

Business income or loss reported on federal Form 1040 Schedules C, C-EZ, E, F, and other schedules are reported on line 6 through line 9. Line 11 and line 12 report business gains or losses reported on California Schedule D, California Capital Gain or Loss Adjustment, and Schedule D-1 (or federal Form 4797, if California Schedule D-1 is not needed). All business income and losses should be adjusted for any differences between California and federal amounts as shown on the Schedule CA.

Part I – Individual Income and Expense Items

Wages

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

Part II – Pass-Through Income or Loss

Individuals with a K-1

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

Multiple Pass-Through Entities

If you are a shareholder, beneficiary, partner, or member in multiple pass-through entities with businesses located within and outside the TTA from which you received TTA tax incentives, see the example below for computing business income in the TTA.

Example:

Part III – Taxpayer’s Trade or Business

Business Income or Loss

Use business income or loss from federal Form 1040 Schedules C, C-EZ, E, and F, plus California adjustments from Schedule CA (540 or 540NR) for each trade or business. Also, include business capital gains and losses from Schedule D and business gains and losses from Schedule D-1 as adjusted on Schedule CA (540 or 540NR).

Income Computation Located Entirely Within the TTA

Line 6 – Line 9

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

Line 11 and Line 12

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

Located Entirely Within California

Line 6 – Line 9

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

Line 11 and Line 12

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

Located Within and Outside the TTA and California

Line 6 – Line 9

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

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

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

Line 11 and Line 12

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

Line 14

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

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

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

Worksheet III: Income or Loss Apportionment – Targeted Tax Area

Section A: Income Apportionment

Use Worksheet III, Section A, if your business has net income from sources within and outside the TTA.

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

Section B: Income or Loss Apportionment

Part I: Individual Income and Expense Items

See instructions.

Part II: Pass-Through Income or Loss

See instructions.

Part III: Taxpayer’s Trade or Business

See instructions.

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

The TTA has expired as of December 31, 2012. Generally, no further TTA incentives can be generated after the expiration date. For taxable years beginning on or after January 1, 2013, taxpayers can no longer generate any TTA NOL. However, taxpayers can claim an NOL carryover deduction from prior years.

For NOLs incurred in taxable years beginning on or after January 1, 2008, California has extended the NOL carryover period to 20 taxable years following the year of the loss.

For taxable years beginning in 2002 and 2003, California had suspended the NOL carryover deduction. Taxpayers continued to carryover an NOL during the suspension period. The carryover period for suspended losses was extended by two years for losses incurred before January 1, 2002, and by one year for losses incurred on or after January 1, 2002, and before January 1, 2003. The deduction for disaster losses was not affected by the NOL suspension rules. See instructions for Worksheet IV, on the next page for more information on the suspension of the NOL carryover deduction for taxable years beginning in 2008 through 2011.

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

Limitation

A TTA NOL carryover deduction can only offset business income attributable to operations within the TTA.

Election

If you elected and designated the carryover category (general or specific, EZ, LAMBRA, or TTA NOL) on the original tax return for the year of a loss, file form FTB 3809 for each year in which a TTA NOL deduction is being taken. The election is irrevocable.

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

Alternative Minimum Tax

Taxpayers claiming a TTA NOL carryover deduction determine their NOL for alternative minimum tax purposes. Use Schedule P (100, 100W, 540, 540NR, or 541) to compute the NOL for alternative minimum tax purposes.

S Corporations

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

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

Combined Report

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

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

Water’s-Edge Taxpayer

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

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

Individuals, exempt trusts, and corporations with current year income and a prior year TTA NOL carryover complete Worksheet IV.

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

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

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

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

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

The TTA NOL carryover deduction is used to reduce current year income from the TTA. Use this worksheet to compute the TTA NOL carryover deduction for corporations, individuals, and exempt trusts.

Line 1

See Part II on page 6 for a discussion of business and nonbusiness income.

Form 540 and Form 540NR filers:

Be sure to include casualty losses, disaster losses, and any business deductions reported on federal Form 1040, Schedule A, as itemized deductions.

Exception: If you elected to carry back part or all of your current year disaster loss, under IRC Section 165(i)(1), do not include the amount of the loss that was carried back in the current year business income for the TTA.

Line 2

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

Line 3

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

Line 6

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

Line 7

Enter the amount from line 6. If this amount is zero or negative, transfer the amount(s) from line 8 through line 22, column (b) to column (e). Go to line 23.

Line 8 through Line 22

Enter the amounts on line 8 through line 22 as positive numbers.

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

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

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

Example:

Line 23

Total the amounts in columns (b), (c), and (e). Enter the totals from column (b) and column (e) on form FTB 3809, Side 1, line 3a and line 3c, accordingly.

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

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

Worksheet IV Computation of NOL Carryover and Carryover Limitations – Targeted Tax Area

See instructions.

1. Enter the amount from Form 100 or Form 100W, line 17; Form 100S, combined amounts of line 14 and line 16; or Form 109, line 1 or line 4. Form 540 and Long Form 540NR filers, enter the total from Worksheet III, Section B, line 14, column (c) on line 1 and line 6 (skip line 2 through line 5). See instructions. Corporations which file a combined report, enter the taxpayer’s business income assigned to California (See instructions Part II).
2. 1. Form 100, Form 100W, Form 100S, and Form 109 filers: Enter any nonbusiness income included in line 1 as a negative number. Form 540 and Long Form 540NR filers leave blank.
   2. Form 100, Form 100W, Form 100S, and Form 109 filers: Enter any nonbusiness loss included in line 1 as a positive number. Form 540 and Long Form 540NR filers leave blank.
   3. Combine line 2a and line 2b.
3. 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 16 and line 19. Form 540, Long Form 540NR, and Form 109 filers: Enter -0-. Enter this amount as a negative number.
4. Combine line 1, line 2c, and line 3. If zero or less, enter -0- on line 6.
5. Enter the average apportionment percentage from Worksheet III, Section A, line 4.
6. Modified taxable income. Multiply line 4 by line 5. See instructions.

Schedule Z – Computation of Credit Limitations

Credit Limitations

The amount of credit you can claim on your California tax return is limited by the amount of tax attributable to TTA business income. The amount of tax attributable to the TTA business income is computed in this schedule. For corporations and other entities doing business in the targeted tax area, the TTA business income is computed in this schedule using the TTA apportionment factor formula computed on Worksheet III, Section A. For individuals, the TTA business income is computed on Worksheet III, Section B.

Assignment of Credit

For taxable years beginning on or after July 1, 2008, credit earned by members of a combined reporting group may be assigned to an affiliated corporation that is an eligible member of the same combined reporting group. A credit assigned may only be claimed by the affiliated corporation against its tax in taxable years beginning on or after January 1, 2010.

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

Other Limitations

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

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

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

S Corporations and the Application of TTA Credits

An S corporation may use its TTA credits to reduce TTA tax at both the corporate and shareholder levels.

An S corporation may use ⅓ of the TTA credits to reduce the tax on the S corporation’s TTA business income. In addition, S corporation shareholders may claim their pro-rata share of the entire amount of the TTA credits computed under the Personal Income Tax Law.

Example: In 2017, an S corporation qualified for a $3,000 TTA hiring credit. The S corporation will be able to use ⅓ of the credit ($3,000 × ⅓ = $1,000) to offset the tax on the corporation’s TTA income.

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

S corporations should attach form FTB 3809 to Form 100S, California S Corporation Franchise or Income Tax Return, to claim the tax credits.

Shareholders should attach Schedule(s) K-1 (100S), to their individual tax return.

Carryover

If the amount of hiring credit available this year exceeds your TTA tax, you may carry over any excess credit to future years. The portion of any hiring credit or sales or use tax credit remaining for carryover to taxable years beginning on or after January 1, 2014, shall be carried over only to the succeeding 10 taxable years if necessary, or until the credit is exhausted, whichever occurs first. Apply the carryover to the earliest taxable year(s) possible. In no event can the credit be carried back and applied against a prior year’s tax.

For S corporations, the amount of the ⅓ of hiring credit that is in excess of the 1.5% entity-level tax (3.5% for financial S corporations) in the current year may also be carried forward and used in future years to offset the S corporation entity-level business tax. See the instructions for Schedule Z, Part III, for more information.

If a C corporation had unused credit carryovers when it elected S corporation status, the carryovers were reduced to ⅓ and transferred to the S corporation. The remaining ⅔ were disregarded. The allowable carryovers may be used to offset the 1.5% tax on net income in accordance with the respective carryover rules. These C corporation carryovers may not be passed through to shareholders. For more information, get Schedule C (100S), S Corporation Tax Credits.

Credit Code

Use credit code 210 to claim the TTA hiring credit and sales or use tax credit carryover on your tax return. Using an incorrect code may cause a delay in allowing the credit(s).

Instructions for Schedule Z – Computation of Credit Limitations

Reporting Requirements of S Corporations, Estates and Trusts, and Partnerships

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

S Corporations

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

Corporations and S Corporations subject to the minimum franchise tax only

Complete only Part IV of Schedule Z.

All others

Complete Part I and Part II of Schedule Z.

Part I – Computation of Credit Limitations

For filers with NOL carryovers.

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

If you do not have any NOL carryovers:

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

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

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

Line 1

Enter all trade or business income. See form FTB 3809, Part II instructions for the definition of business income.

Line 2

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

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

Line 6a

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

Individuals

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

Exempt Organizations

Use the applicable tax rate in your tax booklet.

Corporations and S Corporations

Use the applicable tax rate.

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

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

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

This percentage was determined by ABC, Inc. using Worksheet III, Section A, when ABC’s S corporation tax return (Form 100S) was prepared.

John divides his time equally (50/50) between the two offices of ABC, Inc. Jackie Anderson (John’s spouse/RDP) works for ABC, Inc. at its office located within the TTA.

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

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

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

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

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

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

Line 6b

Corporations and S corporations:

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

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

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

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

Line 8A, column (f)

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

Line 8A, column (g)

Enter the amount of credit that is used on Schedule P (100, 100W, 540, 540NR, or 541), column (b). The amount cannot be greater than the amount on line 8A, column (f) or the amount computed on line 8B, column (e). Enter this amount on form FTB 3809, Side 1, line 1a.

Line 8B, column (b)

Enter the amount of the current year credit that was computed on Worksheet IA, Section A, line 4. Individuals that received a Schedule K-1 enter the current year hiring credit from the K-1.

Line 8B, column (c)

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

Line 8B, column (d)

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

Line 8B, column (e)

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

Line 8B, column (f)

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

Line 8B, column (h)

Subtract the amount on line 8B, column (f) from the amount on line 8B, column (e). Enter the result on line 8B, column (h). This is the amount of credit that can be carried over to future years. This carryover includes both the Schedule P (100, 100W, 540, 540NR, or 541) limitation and the limitation based on TTA business income.

Line 9A, column (f)

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

Line 9A, column (g)

Enter the amount of credit that is used on Schedule P (100, 100W, 540, 540NR, or 541), column (b). The amount cannot be greater than the amount on line 9A, column (f) or the amount computed on line 9B, column (e). Enter this amount on form FTB 3809, Side 1, line 1b.

Line 9B, column (c)

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

Line 9B, column (d)

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

Line 9B, column (e)

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

Line 9B, column (f)

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

Line 9B, column (h)

Subtract the amount on line 9B, column (f) from the amount on line 9B, column (e). Enter the result on line 9B, column (h). This is the amount of credit that can be carried over to future years. This carryover includes both the Schedule P (100, 100W, 540, 540NR, or 541) limitation and the limitation based on TTA business income.

Example: Part II

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

The business has the following credits:

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

Schedule Z, Part II would be computed as follows:

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

Part III – Limitation of Credits for S Corporations Only

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

Line 10, column (b)

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

Line 10, column (c)

Multiply the amount on line 10, column (b) by ⅓. Enter this amount in column (c). The amount in column (c) is the maximum amount of the current year credit that may be used by the S corporation to offset its 1.5% entity-level tax (3.5% for financial S corporations). Also, include this amount on Form 100S, Schedule C.

Line 10, column (d)

Enter the amount of total prior year credit carryover. This is the credit amount that was previously computed on the prior year Worksheet IA minus the amount that was allowed to be taken on the prior year tax return. Also, include this amount on Form 100S, Schedule C.

Line 11, column (d)

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

Line 10 and Line 11, column (e)

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

Line 10 and Line 11, column (f)

Enter the credit amounts that were used by the S corporation in the current year to offset its 1.5% entity-level tax (3.5% for financial S corporations). Enter the amounts in column (f) for line 10 and line 11 on form FTB 3809, Side 1, line 1a and line 1b, as applicable.

Line 10 and Line 11, column (g)

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

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

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

Line 12, column (b)

Enter the amount of the current year credit that was computed on Worksheet IA. S corporations may enter only ⅓ of the amount from Worksheet IA on line 12, column (b).

Line 12, column (c)

Enter the amount of the total prior year credit carryover. This is the credit amount that was previously computed on Worksheet IA in the prior year, minus the amount that was allowed to be taken on the prior year tax return. S corporations may enter only ⅓ of the amount from Worksheet IA.

Line 13, column (c)

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

Line 12 and Line 13, column (d)

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

Line 12 and Line 13, column (e)

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

Standard Industrial Classification Manual, 1987 Edition (Partial Listing)

The Standard Industrial Classification (SIC) Manual classifies business activities based upon establishments, which are defined in the SIC Manual as an economic unit, generally at a single physical location, where business is conducted, or where services or industrial operations are performed. A taxpayer’s enterprise may consist of more than one establishment. The SIC Manual provides the following examples of establishments: A factory, mill, store, hotel, movie theater, mine, farm, ranch, bank, railroad depot, airline terminal, sales office, warehouse, or central administrative office. Where distinct and separate economic activities are performed at a single physical location (such as construction activities operated out of the same physical location as a lumber yard), each activity should be treated as a separate establishment where: (1) No one industry description in the SIC Manual includes such combined activities; (2) The employment in each economic activity is significant; and (3) Separate reports are prepared on the number of employees, their wages and salaries, sales or receipts, property and equipment, and other types of financial data, such as financial statements, job costing, and profit center accounting.

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

For purposes of this publication, the following SIC codes are listed since only taxpayers with establishments in these industry 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, 1987 Edition, is available for purchase from:

Mail

National Technical Information Service
5301 Shawnee Road
Alexandria, VIRGINIA
22312
Order No. PB 87-100012

Order No. PB 87-100012

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

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

(nec means “not elsewhere classified”)

3291

Abrasive products

2891

Adhesives & sealants

2879

Agricultural chemicals, nec

3563

Air & gas compressors

3728

Aircraft parts & equipment, nec

3724

Aircraft engines & engine parts

3721

Aircraft

2812

Alkalies & chlorine

3354

Aluminum extruded products

3355

Aluminum rolling & drawing, nec

3365

Aluminum foundries

3353

Aluminum sheet, plate, & foil

3363

Aluminum die-casting

3483

Ammunition, except for small arms, nec

3826

Analytical instruments

0273

Animal aquaculture

0279

Animal specialties, nec

2077

Animal & marine fats & oils

2387

Apparel belts

2389

Apparel & accessories, nec

3446

Architectural metal work

3292

Asbestos products

2952

Asphalt felts & coatings

2951

Asphalt paving mixtures & blocks

3581

Automatic vending machines

2396

Automotive & apparel trimmings

3465

Automotive stampings

2673

Bags: plastic, laminated, & coated

2674

Bags: uncoated paper & multiwall

3562

Ball & roller bearings

0211

Beef cattle feedlots

0212

Beef cattle, except feedlots

2063

Beet sugar

2836

Biological products except diagnostic substances

2782

Blankbooks & looseleaf binders

3312

Blast furnace & steel mills

3564

Blowers & fans

3732

Boat building & repairing

3452

Bolts, nuts, rivets, & washers

2731

Book publishing

2732

Book printing

2789

Bookbinding & related work

2086

Bottled & canned soft drinks

2342

Bras, girdles, & allied garments

2051

Bread, cake, & related products

3251

Brick & structural clay tile

2211

Broadwoven fabric mills, cotton

2221

Broadwoven fabric mills, manmade

0251

Broiler, fryer, and roaster chickens

2231

Broadwoven fabric mills, wool

3991

Brooms & brushes

3995

Burial caskets

3578

Calculating & accounting equipment

2064

Candy & other confectionery products

2062

Cane sugar refining

2033

Canned fruits & vegetables

2091

Canned & cured fish & seafood

2032

Canned specialties

2394

Canvas & related products

3955

Carbon paper & inked ribbons

2895

Carbon black

3624

Carbon & graphite products

3592

Carburetors, pistons, rings, & valves

2273

Carpets & rugs

2823

Cellulosic manmade fiber

3241

Cement, hydraulic

3253

Ceramic wall & floor tile

2043

Cereal breakfast foods

2022

Cheese, natural & processed

2899

Chemical preparations, nec

2067

Chewing gum

2131

Chewing & smoking tobacco

0252

Chicken eggs

2066

Chocolate & cocoa products

2111

Cigarettes

2121

Cigars

3255

Clay refractories

2295

Coated fabrics, not rubberized

3316

Cold finishing of steel shapes

2754

Commercial printing, gravure

2752

Commercial printing, lithographic

2759

Commercial printing, nec

3582

Commercial laundry equipment

3646

Commercial lighting fixtures

3669

Communication equipment

3577

Computer peripheral equipment, nec

3575

Computer terminals

3572

Computer storage devices

3271

Concrete block & brick

3272

Concrete products, nec

3531

Construction machinery

2679

Converted paper products, nec

3535

Conveyors & conveying equipment

2052

Cookies & crackers

3351

Copper rolling & drawing

3366

Copper foundries

2298

Cordage & twine

2653

Corrugated & solid fiber boxes

3961

Costume jewelry

2074

Cottonseed oil

2021

Creamery butter

0723

Crop preparation services for market

3466

Crowns & closures

3643

Current-carrying wiring devices

2391

Curtains & draperies

3087

Custom compound purchased resins

3281

Cut stone & stone products

3421

Cutlery

2865

Cyclic crudes & intermediates

0241

Dairy farms

2034

Dehydrated fruits, vegetables, & soups

3843

Dental equipment & supplies

2675

Die-cut paper products

2085

Distilled & blended liquors

2047

Dog & cat food

3942

Dolls & stuffed toys

2591

Drapery hardware & blinds & shades

2023

Dry, condensed, & evaporated dairy products

2079

Edible fats & oils, nec

3641

Electric lamps

3634

Electric housewares & fans

3699

Electrical equipment & supplies, nec

3629

Electrical industrial apparatus, nec

3845

Electromedical equipment

3313

Electrometallurgical products

3679

Electronic components, nec

3678

Electronic connectors

3671

Electron tubes

3675

Electronic capacitors

3676

Electronic resistors

3677

Electronic coils & transformers

3571

Electronic computers

3534

Elevators & moving stairways

3694

Engine electrical equipment

2677

Envelopes

3822

Environmental controls

2892

Explosives

2381

Fabric dress & work gloves

3499

Fabricated metal products, nec

3443

Fabricated plate work (boiler shops)

3498

Fabricated pipe & fittings

3069

Fabricated rubber products, nec

3441

Fabricated structural metal

2399

Fabricated textile products, nec

3523

Farm machinery & equipment

3965

Fasteners, buttons, needles, & pins

2875

Fertilizers, mixing only

2655

Fiber cans, drums, & similar products

2262

Finishing plants, manmade

2261

Finishing plants, cotton

2269

Finishing plants, nec

3211

Flat glass

2087

Flavoring extracts & syrups, nec

2041

Flour & other grain mill products

3824

Fluid meters & counting devices

3492

Fluid power valves & hose fittings

2026

Fluid milk

3594

Fluid power pumps & motors

3593

Fluid power cylinders & actuators

2657

Folding paperboard boxes

2099

Food preparations, nec

3556

Food products machinery

3131

Footwear cut stock

3149

Footwear, except rubber, nec

2092

Fresh/frozen prepared fish/seafood

2053

Frozen bakery products, except bread

2038

Frozen specialties, nec

2037

Frozen fruits & vegetables

0271

Fur-bearing animals and rabbits

2371

Fur goods

2599

Furniture & fixtures, nec

3944

Games, toys, & children’s vehicles

3053

Gaskets, packing, & sealing devices

0291

General farms, primarily animal

3569

General industrial machinery, nec

0219

General livestock, nec

2369

Girls’ & children’s outerwear, nec

2361

Girls’ & children’s dresses, blouses

3221

Glass containers

3321

Gray & ductile iron foundries

2771

Greeting cards

3764

Guided missile & space vehicle parts

3769

Guided missile & space vehicle parts, nec

3761

Guided missiles & space vehicles

2861

Gum & wood chemicals

3275

Gypsum products

3423

Hand & edge tools, nec

3996

Hardsurface floor coverings, nec

2429

Hardware, nec

2426

Hardwood dimensions & flooring mills

2435

Hardwood veneer & plywood

2353

Hats, caps, & millinery

3433

Heating equip, except electric

0213

Hogs

3536

Hoists, cranes, & monorails

0272

Horses and other equines

2252

Hosiery, nec

2392

House furnishings, nec

3142

House slippers

3651

Household audio & video equipment

3635

Household vacuum cleaners

3631

Household cooking appliances

3633

Household laundry equipment

3639

Household appliances, nec

2519

Household furniture, nec

3632

Household refrigerators & freezers

2024

Ice cream & frozen desserts

3491

Industrial valves

2819

Industrial inorganic chem, nec

3599

Industrial machinery, nec

2869

Industrial organic chem, nec

3537

Industrial trucks & tractors

2813

Industrial gases

3543

Industrial patterns

3567

Industrial furnaces & ovens

2816

Inorganic pigments

3825

Instruments to measure electricity

3519

Internal combustion engines, nec

2835

In vitro & in vivo diagnostic substances

3462

Iron & steel forging

3915

Jewelers’ materials & lapidary work

3911

Jewelry, precious metal

2253

Knit outerwear mills

2254

Knit underwear mills

2259

Knitting mills, nec

3821

Laboratory apparatus & furniture

2258

Lace & warp knit fabric mills

3083

Laminated plastic plate & sheet

3524

Lawn & garden equipment

3952

Lead pencils & art goods

3199

Leather goods, nec

2386

Leather & sheep-lined clothing

3111

Leather tanning & finishing

3151

Leather gloves & mittens

3648

Lighting equipment

3274

Lime

2411

Logging

2992

Lubricating oils & greases

3161

Luggage

2098

Macaroni, spaghetti, & noodles

3541

Machine tools, metal cutting types

3545

Machine tool accessories

3542

Machine tools, metal forming type

3695

Magnetic & optical recording media

3322

Malleable iron foundries

2083

Malt

2082

Malt beverages

2761

Manifold business forms

2097

Manufactured ice

3999

Manufacturing industries, nec

3953

Marking devices

2515

Mattresses & bedsprings

3586

Measuring & dispensing pumps

3829

Measuring & controlling devices, nec

2011

Meat packing plants

3061

Mechanical rubber goods

2833

Medicinal & botanicals

2325

Men’s & boys’ trousers & slacks

3143

Men’s footwear, except athletic

2323

Men’s & boys’ neckwear

2329

Men’s & boys’ clothing, nec

2321

Men’s & boys’ shirts

2322

Men’s & boys’ underwear & nightwear

2326

Men’s & boys’ work clothing

2311

Men’s & boys’ suits & coats

2514

Metal household furniture

3549

Metalworking machinery, nec

3398

Metal heat treating

3411

Metal cans

3412

Metal barrels, drums, & pails

3431

Metal sanitary ware

3497

Metal foil & leaf

3479

Metal coating & allied services

3469

Metal stampings, nec

3442

Metal door, sash, & trim

2431

Millwork

3296

Mineral wool

3295

Minerals, ground or treated

3532

Mining machinery

2741

Misc publishing

3449

Misc metal work

3496

Misc fabricated wire products

2451

Mobile homes

3716

Motor homes

3711

Motor vehicles & car bodies

3621

Motor & generators

3714

Motor vehicle parts & accessories

3751

Motorcycles, bicycles, & parts

3931

Musical instruments

2441

Nailed wood boxes & shook

2241

Narrow fabric mills

2711

Newspapers

2873

Nitrogenous fertilizers

3297

Nonclay refractories

3644

Noncurrent-carrying wiring devices

3369

Nonferrous foundries, nec

3364

Nonferrous die-casting, except aluminum

3357

Nonferrous wiredrawing & insulating

3356

Nonferrous rolling & drawing, nec

3341

Nonferrous metals

3463

Nonferrous forging

3299

Nonmetallic mineral products, nec

2297

Nonwoven fabrics

3579

Office machines, nec

2522

Office furniture, except wood

3533

Oil & gas field machinery

3851

Ophthalmic goods

3827

Optical instruments & lenses

3489

Ordnance & accessories, nec

2824

Organic fibers, noncellulosic

3565

Packaging machinery

2851

Paints & allied products

3554

Paper industries machinery

2621

Paper mills

2671

Paper coated & laminated, packaging

2672

Paper coated & laminated, nec

2631

Paperboard mills

2542

Partitions & fixtures, except wood

3951

Pens & mechanical pencils

2721

Periodicals

3172

Personal leather goods, nec

2911

Petroleum refining

2999

Petroleum & coal products, nec

2834

Pharmaceutical preparations

2874

Phosphatic fertilizers

3861

Photographic equipment & supplies

2035

Pickles, sauces, & salad dressing

3085

Plastic bottles

3086

Plastic foam products

2821

Plastic materials & resins

3084

Plastic pipe

3088

Plastic plumbing fixtures

3089

Plastic products, nec

2796

Platemaking service

3471

Plating & polishing

2395

Pleating & stitching

3432

Plumbing fixture fittings & trim

2842

Polishes & sanitation goods

3264

Porcelain electrical supplies

2096

Potato chips & similar snacks

3269

Pottery products, nec

0254

Poultry hatcheries

0259

Poultry and eggs, nec

2015

Poultry slaughtering & processing

3568

Power transmission equipment, nec

3546

Power-driven handtools

3448

Prefabricated metal buildings

2452

Prefabricated wood buildings

2045

Prepared flour mixes & doughs

2048

Prepared feeds, nec

3652

Prerecorded records & tapes

3229

Pressed & blown glass, nec

3399

Primary metal products, nec

3339

Primary nonferrous metals, nec

3334

Primary aluminum

3331

Primary copper

3692

Primary batteries, dry & wet

3672

Printed circuit boards

2893

Printing ink

3555

Printing trades machinery

3823

Process control instruments

3231

Products of purchased glass

2531

Public building & related furniture

2611

Pulp mills

3561

Pumps & pumping equipment

3663

Radio, TV, & communications equipment

3743

Railroad equipment

2061

Raw sugar cane

3273

Ready-mixed concrete

2493

Reconstituted wood products

3585

Refrigeration & heating equipment

3625

Relays & industrial controls

3645

Residential lighting fixtures

2044

Rice milling

2095

Roasted coffee

2384

Robes & dressing gowns

3547

Rolling mill machinery

3052

Rubber & plastic hose & belting

3021

Rubber & plastic footwear

2068

Salted & roasted nuts & seeds

2656

Sanitary food containers

2676

Sanitary paper products

2013

Sausages & other prepared meats

3425

Saw blades & handsaws

2421

Sawmills & planing mills, general

3596

Scales & balances, except laboratory

2397

Schiffli machine embroideries

3451

Screw machine products

3812

Search & navigation equipment

3674

Semiconductors & related devices

3263

Semivitreous table & kitchenware

3589

Service industry machinery, nec

2652

Setup paperboard boxes

0214

Sheep and goats

3444

Sheet metal work

3731

Ship building & repairing

3993

Signs & advertising specialties

3914

Silverware and plate ware

3484

Small arms

3482

Small arms ammunition

2841

Soap & other detergents

2436

Softwood veneer & plywood

2075

Soybean oil mills

3769

Space vehicle equipment & parts

3764

Space propulsion units & parts

2429

Special product sawmills, nec

3544

Special dies, tools, jigs, & fixtures

3559

Special industry machinery, nec

3566

Speed changers, drives, & gears

3949

Sporting & athletic goods, nec

2678

Stationery products

3493

Steel springs, except wire

3315

Steel wire & related products

3317

Steel pipe & tubes

3325

Steel foundries, nec

3324

Steel investment foundries

3691

Storage batteries

3259

Structural clay products, nec

2439

Structural wood members, nec

2843

Surface active agents

3841

Surgical & medical instruments

3842

Surgical appliances & supplies

3613

Switchgear & switchboard apparatus

2822

Synthetic rubber

3795

Tanks & tank components

3661

Telephone & telegraph apparatus

3552

Textile machinery

2393

Textile bags

2299

Textile goods, nec

2284

Thread mills

2282

Throwing & winding mills

2296

Tire cord & fabrics

3011

Tires & inner tubes

2141

Tobacco stemming & redrying

2844

Toilet preparations

3612

Transformers, except electronic

3799

Transportation equipment, nec

3792

Travel trailers & campers

3713

Truck & bus bodies

3715

Truck trailers

3511

Turbines & turbines generator sets

0253

Turkey and turkey eggs

2791

Typesetting

3082

Unsupported plastic profile shapes

3081

Unsupported plastic film & sheet

2512

Upholstered household furniture

3494

Valves & pipe fittings, nec

2076

Vegetable oil mills, nec

3647

Vehicular lighting equipment

3261

Vitreous plumbing fixtures

3262

Vitreous china table & kitchenware

3873

Watches, clocks, & parts

2385

Waterproof outerwear

2257

Weft knit fabric mills

3548

Welding apparatus

2046

Wet corn milling

2084

Wines, brandy, & brandy spirits

3495

Wire springs

2337

Women’s & misses’ suits & coats

2335

Women’s, juniors’, & misses’ dresses

2341

Women’s & children’s underwear

2251

Women’s hosiery, except socks

2339

Women’s & misses’ outerwear, nec

2331

Women’s & misses’ blouses & shirts

3171

Women’s handbags and purses

3144

Women’s footwear, except athletic

2491

Wood preserving

2499

Wood products, nec

2434

Wood kitchen cabinets

2541

Wood partitions & fixtures

2521

Wood office furniture

2517

Wood TV & radio cabinets

2449

Wood containers, nec

2511

Wood household furniture

2448

Wood pallets & skids

3553

Woodworking machinery

3844

X-ray apparatus & tubes

2281

Yarn spinning mills

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

(nec means “not elsewhere classified”)

4513

Air courier services

4522

Air transportation, nonscheduled

4512

Air transportation, scheduled

4581

Airports, flying fields, & airport terminal services

4729

Arrangement of passenger transportation, nec

4730

Arrangement of transportation of freight & cargo

4841

Cable & other pay television services

4939

Combination utilities, nec

4899

Communications services, nec

4215

Courier services, except by air

4931

Electric & other services combined

4911

Electric services

4221

Farm product warehousing & storage

4785

Fixed facilities & inspection weighing services for motor vehicle transportation

4932

Gas & other services combined

4971

Irrigation systems

4214

Local trucking with storage

4212

Local trucking without storage

4925

Mixed, manufactured, or liquefied petroleum gas production

4924

Natural gas distribution

4922

Natural gas transmission

4923

Natural gas transmission & distribution

4783

Packing & crating

4832

Radio broadcasting stations

4812

Radiotelephone communications

4222

Refrigerated warehousing & storage

4953

Refuse systems

4741

Rental of railroad cars

4959

Sanitary services, nec

4952

Sewerage systems

4225

Special warehousing & storage

4226

Special warehousing & storage, nec

4960

Steam & air-conditioning supply

4822

Telegraph & other message communications

4813

Telephone communications, except radiotelephone

4833

Television broadcasting stations

4231

Terminal & joint terminal maintenance facilities for motor freight

4725

Tour operators

4789

Transportation services, nec

4724

Travel agencies

4213

Trucking, except local

4940

Water supply

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

(nec means “not elsewhere classified”)

5012

Automobiles & other motor vehicles

5181

Beer & ale

5192

Books, periodicals, & newspapers

5032

Brick, stone, and related construction materials

5169

Chemicals & allied products, nec

5052

Coal & other minerals & ores

5046

Commercial equipment, nec

5045

Computers & computer peripheral equipment & software

5145

Confectionery

5082

Construction & mining (except petroleum) machinery & equipment

5039

Construction materials, nec

5143

Dairy products, except dried or canned

5122

Drugs, drug proprietaries, & druggist’ sundries

5099

Durable goods, nec

5063

Electrical apparatus & equipment, wiring supplies, & construction materials

5064

Electrical appliances, television, & radio sets

5065

Electronic parts & equipment, nec

5083

Farm & garden machinery & equipment

5191

Farm supplies

5159

Farm-product raw materials, nec

5146

Fish & seafoods

5193

Flowers, nursery stock, & florists’ supplies

5138

Footwear

5148

Fresh fruits & vegetables

5021

Furniture

5153

Grain & field beans

5149

Groceries & related products, nec

5141

Groceries, general line

5072

Hardware

5022

Home furnishings

5113

Industrial & personal service paper

5084

Industrial machinery & equipment

5085

Industrial supplies

5094

Jewelry, watches, precious stones, & precious metals

5154

Livestock

5031

Lumber, plywood, millwork, and wood panels

5147

Meat & meat products

5047

Medical, dental, & hospital equipment & supplies

5136

Men’s & boy’s clothing & furnishings

5051

Metals service centers & offices

5015

Motor vehicle parts, used

5013

Motor vehicle supplies & new parts

5199

Nondurable goods, nec

5044

Office equipment

5048

Ophthalmic goods

5142

Packaged frozen foods

5198

Paints, varnishes, & supplies

5172

Petroleum & petroleum products wholesalers, except bulk stations

5171

Petroleum bulk stations & terminals

5043

Photographic equipment & sales

5131

Piece goods, notions, & other dry goods

5162

Plastics materials & basic forms & shapes

5074

Plumbing & heating equipment & supplies (hydronics)

5144

Poultry & poultry products

5111

Printing & writing paper

5049

Professional equipment & supplies, nec

5078

Refrigeration equipment & supplies

5033

Roofing, siding, and insulation materials

5093

Scrap & waste materials

5087

Service establishment equipment & supplies

5091

Sporting & recreational goods & supplies

5112

Stationery & office supplies

5014

Tires & tubes

5194

Tobacco & tobacco products

5092

Toys, hobby goods, & supplies

5088

Transportation equipment & supplies, except motor vehicles

5075

Warm air heating, air-conditioning equipment, & supplies

5182

Wine & distilled alcoholic beverages

5137

Women’s, children’s, & infants’ clothing & accessories

FTB 3809
Principal Business Activity Codes

This list of principal business activities and their associated codes is designed to classify a business by the type of activity in which it is engaged to facilitate the administration of the California Revenue and Taxation Code. The principal business activity codes are based on the North American Industry Classification System published by the United States Office of Management and Budget, 1997 Edition.

For purposes of qualifying for the TTA tax incentives, refer to the Standard Industrial Classification Manual, 1987 Edition and the partial listing on pages 17 through 19 of this booklet.

Agriculture, Forestry, Fishing, and Hunting

Crop Production

Code

 

111100

Oilseed & Grain Farming

111210

Vegetable & Melon Farming (including potatoes & yams)

111300

Fruit & Tree Nut Farming

111400

Greenhouse, Nursery, & Floriculture Production

111900

Other Crop Farming (including tobacco, cotton, sugarcane, hay, peanut, sugar beet, & all other crop farming)

Animal Production

112111

Beef Cattle Ranching & Farming

112112

Cattle Feedlots

112120

Dairy Cattle & Milk Production

112210

Hog & Pig Farming

112300

Poultry & Egg Production

112400

Sheep & Goat Farming

112510

Aquaculture (including shellfish & finfish farms & hatcheries)

112900

Other Animal Production

Forestry and Logging

113110

Timber Tract Operations

113210

Forest Nurseries & Gathering of Forest Products

113310

Logging

Fishing, Hunting and Trapping

114110

Fishing

114210

Hunting & Trapping

Support Activities for Agriculture and Forestry

115110

Support Activities for Crop Production (including cotton ginning, soil preparation, planting, & cultivating)

115210

Support Activities for Animal Production

115310

Support Activities for Forestry

Mining

211120

Crude Petroleum Extraction

211130

Natural Gas Extraction

212110

Coal Mining

212200

Metal Ore Mining

212310

Stone Mining & Quarrying

212320

Sand, Gravel, Clay, & Ceramic & Refractory Mineral Mining & Quarrying

212390

Other Nonmetallic Mineral Mining & Quarrying

213110

Support Activities for Mining

Utilities

221100

Electric Power Generation, Transmission & Distribution

221210

Natural Gas Distribution

221300

Water, Sewage, & Other Systems

221500

Combination Gas and Electric

Construction

Construction of Buildings

236110

Residential Building Construction

236200

Nonresidential Building Construction

Heavy and Civil Engineering Construction

237100

Utility System Construction

237210

Land Subdivision

237310

Highway, Street, & Bridge Construction

237990

Other Heavy & Civil Engineering Construction

Specialty Trade Contractors

238100

Foundation, Structure, & Building Exterior Contractors (including framing carpentry, masonry, glass, roofing, & siding)

238210

Electrical Contractors

238220

Plumbing, Heating, & Air-Conditioning Contractors

238290

Other Building Equipment Contractors

238300

Building Finishing Contractors (including drywall, insulation, painting, wallcovering, flooring, tile, & finish carpentry)

238900

Other Specialty Trade Contractors (including site preparation)

Manufacturing

Food Manufacturing

311110

Animal Food Mfg

311200

Grain & Oilseed Milling

311300

Sugar & Confectionery Product Mfg

311400

Fruit & Vegetable Preserving & Specialty Food Mfg

311500

Dairy Product Mfg

311610

Animal Slaughtering and Processing

311710

Seafood Product Preparation & Packaging

311800

Bakeries, Tortilla & Dry Pasta Mfg

311900

Other Food Mfg (including coffee, tea, flavorings, & seasonings)

Beverage and Tobacco Product Manufacturing

312110

Soft Drink & Ice Mfg

312120

Breweries

312130

Wineries

312140

Distilleries

312200

Tobacco Manufacturing

Textile Mills and Textile Product Mills

313000

Textile Mills

314000

Textile Product Mills

Apparel Manufacturing

315100

Apparel Knitting Mills

315210

Cut & Sew Apparel Contractors

315220

Men’s & Boys’ Cut & Sew Apparel Mfg

315240

Women’s, Girls’ and Infants’ Cut and Sew Apparel Mfg

315280

Other Cut & Sew Apparel Mfg

315990

Apparel Accessories & Other Apparel Mfg

Leather and Allied Product Manufacturing

316110

Leather & Hide Tanning & Finishing

316210

Footwear Mfg (including rubber & plastics)

316990

Other Leather & Allied Product Mfg

Wood Product Manufacturing

321110

Sawmills & Wood Preservation

321210

Veneer, Plywood, & Engineered Wood Product Mfg

321900

Other Wood Product Mfg

Paper Manufacturing

322100

Pulp, Paper, & Paperboard Mills

322200

Converted Paper Product Mfg

Printing and Related Support Activities

323100

Printing & Related Support Activities

Petroleum and Coal Products Manufacturing

324110

Petroleum Refineries (including integrated)

324120

Asphalt Paving, Roofing, & Saturated Materials Mfg

324190

Other Petroleum & Coal Products Mfg

Chemical Manufacturing

325100

Basic Chemical Mfg

325200

Resin, Synthetic Rubber, & Artificial & Synthetic Fibers & Filaments Mfg

325300

Pesticide, Fertilizer, & Other Agricultural Chemical Mfg

325410

Pharmaceutical & Medicine Mfg

325500

Paint, Coating, & Adhesive Mfg

325600

Soap, Cleaning Compound, & Toilet Preparation Mfg

325900

Other Chemical Product & Preparation Mfg

Plastics and Rubber Products Manufacturing

326100

Plastics Product Mfg

326200

Rubber Product Mfg

Nonmetallic Mineral Product Manufacturing

327100

Clay Product & Refractory Mfg

327210

Glass & Glass Product Mfg

327300

Cement & Concrete Product Mfg

327400

Lime & Gypsum Product Mfg

327900

Other Nonmetallic Mineral Product Mfg

Primary Metal Manufacturing

331110

Iron & Steel Mills & Ferroalloy Mfg

331200

Steel Product Mfg from Purchased Steel

331310

Alumina & Aluminum Production & Processing

331400

Nonferrous Metal (except Aluminum) Production & Processing

331500

Foundries

Fabricated Metal Product Manufacturing

332110

Forging & Stamping

332210

Cutlery & Handtool Mfg

332300

Architectural & Structural Metals Mfg

332400

Boiler, Tank, & Shipping Container Mfg

332510

Hardware Mfg

332610

Spring & Wire Product Mfg

332700

Machine Shops; Turned Product; & Screw, Nut, & Bolt Mfg

332810

Coating, Engraving, Heat Treating, & Allied Activities

332900

Other Fabricated Metal Product Mfg

Machinery Manufacturing

333100

Agriculture, Construction, & Mining Machinery Mfg

333200

Industrial Machinery Mfg

333310

Commercial & Service Industry Machinery Mfg

333410

Ventilation, Heating, Air-Conditioning, & Commercial Refrigeration Equipment Mfg

333510

Metalworking Machinery Mfg

333610

Engine, Turbine, & Power Transmission Equipment Mfg

333900

Other General Purpose Machinery Mfg

Computer and Electronic Product Manufacturing

334110

Computer & Peripheral Equipment Mfg

334200

Communications Equipment Mfg

334310

Audio & Video Equipment Mfg

334410

Semiconductor & Other Electronic Component Mfg

334500

Navigational, Measuring, Electromedical, & Control Instruments Mfg

334610

Manufacturing & Reproducing Magnetic & Optical Media

Electrical Equipment, Appliance, and Component Manufacturing

335100

Electric Lighting Equipment Mfg

335200

Major Household Appliance Mfg

335310

Electrical Equipment Mfg

335900

Other Electrical Equipment & Component Mfg

Transportation Equipment Manufacturing

336100

Motor Vehicle Mfg

336210

Motor Vehicle Body & Trailer Mfg

336300

Motor Vehicle Parts Mfg

336410

Aerospace Product & Parts Mfg

336510

Railroad Rolling Stock Mfg

336610

Ship & Boat Building

336990

Other Transportation Equipment Mfg

Furniture and Related Product Manufacturing

337000

Furniture & Related Product Manufacturing

Miscellaneous Manufacturing

339110

Medical Equipment & Supplies Mfg

339900

Other Miscellaneous Manufacturing

Wholesale Trade

Merchant Wholesalers, Durable Goods

423100

Motor Vehicle & Motor Vehicle Parts & Supplies

423200

Furniture & Home Furnishings

423300

Lumber & Other Construction Materials

423400

Professional & Commercial Equipment & Supplies

423500

Metal & Mineral (except Petroleum)

423600

Household Appliances and Electrical and Electronic Goods

423700

Hardware, & Plumbing & Heating Equipment & Supplies

423800

Machinery, Equipment, & Supplies

423910

Sporting & Recreational Goods & Supplies

423920

Toy & Hobby Goods & Supplies

423930

Recyclable Materials

423940

Jewelry, Watch, Precious Stone, & Precious Metals

423990

Other Miscellaneous Durable Goods

Merchant Wholesalers, Nondurable Goods

424100

Paper & Paper Products

424210

Drugs & Druggists’ Sundries

424300

Apparel, Piece Goods, & Notions

424400

Grocery & Related Products

424500

Farm Product Raw Materials

424600

Chemical & Allied Products

424700

Petroleum & Petroleum Products

424800

Beer, Wine, & Distilled Alcoholic Beverages

424910

Farm Supplies

424920

Book, Periodical, & Newspapers

424930

Flower, Nursery Stock, & Florists’ Supplies

424940

Tobacco & Tobacco Products

424950

Paint, Varnish, & Supplies

424990

Other Miscellaneous Nondurable Goods

Wholesale Electronic Markets and Agents and Brokers

425110

Business to Business Electronic Markets

425120

Wholesale Trade Agents & Brokers

Retail Trade

Motor Vehicle and Parts Dealers

441110

New Car Dealers

441120

Used Car Dealers

441210

Recreational Vehicle Dealers

441222

Boat Dealers

441228

Motorcycle, ATV, and All Other Motor Vehicle Dealers

441300

Automotive Parts, Accessories, & Tire Stores

Furniture and Home Furnishings Stores

442110

Furniture Stores

442210

Floor Covering Stores

442291

Window Treatment Stores

442299

All Other Home Furnishings Stores

Electronics and Appliance Stores

443141

Household Appliance Stores

443142

Electronics Stores (including Audio, Video, Computer, and Camera Stores)

Building Material and Garden Equipment and Supplies Dealers

444110

Home Centers

444120

Paint & Wallpaper Stores

444130

Hardware Stores

444190

Other Building Material Dealers

444200

Lawn & Garden Equipment & Supplies Stores

Food and Beverage Stores

445110

Supermarkets and Other Grocery (except Convenience) Stores

445120

Convenience Stores

445210

Meat Markets

445220

Fish & Seafood Markets

445230

Fruit & Vegetable Markets

445291

Baked Goods Stores

445292

Confectionery & Nut Stores

445299

All Other Specialty Food Stores

445310

Beer, Wine, & Liquor Stores

Health and Personal Care Stores

446110

Pharmacies & Drug Stores

446120

Cosmetics, Beauty Supplies, & Perfume Stores

446130

Optical Goods Stores

446190

Other Health & Personal Care Stores

Gasoline Stations

447100

Gasoline Stations (including convenience stores with gas)

Clothing and Clothing Accessories Stores

448110

Men’s Clothing Stores

448120

Women’s Clothing Stores

448130

Children’s & Infants’ Clothing Stores

448140

Family Clothing Stores

448150

Clothing Accessories Stores

448190

Other Clothing Stores

448210

Shoe Stores

448310

Jewelry Stores

448320

Luggage & Leather Goods Stores

Sporting Goods, Hobby, Book, and Music Stores

451110

Sporting Goods Stores

451120

Hobby, Toy, & Game Stores

451130

Sewing, Needlework, & Piece Goods Stores

451140

Musical Instrument & Supplies Stores

451211

Book Stores

451212

News Dealers & Newsstands

General Merchandise Stores

452200

Department Stores

452300

General Merchandise Stores, incl. Warehouse Clubs and Supercenters

Miscellaneous Store Retailers

453110

Florists

453210

Office Supplies & Stationery Stores

453220

Gift, Novelty, & Souvenir Stores

453310

Used Merchandise Stores

453910

Pet & Pet Supplies Stores

453920

Art Dealers

453930

Manufactured (Mobile) Home Dealers

453990

All Other Miscellaneous Store Retailers (including tobacco, candle, & trophy shops)

Nonstore Retailers

454110

Electronic Shopping & Mail-Order Houses

454210

Vending Machine Operators

454310

Fuel Dealers (including Heating Oil and Liquefied Petroleum)

454390

Other Direct Selling Establishments (including door-to-door retailing, frozen food plan providers, party plan merchandisers, & coffee-break service providers)

Transportation and Warehousing

Air, Rail, and Water Transportation

481000

Air Transportation

482110

Rail Transportation

483000

Water Transportation

Truck Transportation

484110

General Freight Trucking, Local

484120

General Freight Trucking, Long-distance

484200

Specialized Freight Trucking

Transit and Ground Passenger Transportation

485110

Urban Transit Systems

485210

Interurban & Rural Bus Transportation

485310

Taxi Service

485320

Limousine Service

485410

School & Employee Bus Transportation

485510

Charter Bus Industry

485990

Other Transit & Ground Passenger Transportation

Pipeline Transportation

486000

Pipeline Transportation

Scenic & Sightseeing Transportation

487000

Scenic & Sightseeing Transportation

Support Activities for Transportation

488100

Support Activities for Air Transportation

488210

Support Activities for Rail Transportation

488300

Support Activities for Water Transportation

488410

Motor Vehicle Towing

488490

Other Support Activities for Road Transportation

488510

Freight Transportation Arrangement

488990

Other Support Activities for Transportation

Couriers and Messengers

492110

Couriers

492210

Local Messengers & Local Delivery

Warehousing and Storage

493100

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

Information

Publishing Industries (except Internet)

511110

Newspaper Publishers

511120

Periodical Publishers

511130

Book Publishers

511140

Directory & Mailing List Publishers

511190

Other Publishers

511210

Software Publishers

Motion Picture and Sound Recording Industries

512100

Motion Picture & Video Industries (except video rental)

512200

Sound Recording Industries

Broadcasting (except Internet)

515100

Radio & Television Broadcasting

515210

Cable & Other Subscription Programming

Telecommunications

517000

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

Data Processing Services

518210

Data Processing, Hosting, & Related Services

Other Information Services

519100

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

Finance and Insurance

Depository Credit Intermediation

522110

Commercial Banking

522120

Savings Institutions

522130

Credit Unions

522190

Other Depository Credit Intermediation

Nondepository Credit Intermediation

522210

Credit Card Issuing

522220

Sales Financing

522291

Consumer Lending

522292

Real Estate Credit (including mortgage bankers & originators)

522293

International Trade Financing

522294

Secondary Market Financing

522298

All Other Nondepository Credit Intermediation

Activities Related to Credit Intermediation

522300

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

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

523110

Investment Banking & Securities Dealing

523120

Securities Brokerage

523130

Commodity Contracts Dealing

523140

Commodity Contracts Brokerage

523210

Securities & Commodity Exchanges

523900

Other Financial Investment Activities (including portfolio management & investment advice)

Insurance Carriers and Related Activities

524140

Direct Life, Health, & Medical Insurance Carriers

524150

Direct Insurance (except Life, Health, & Medical) Carriers

524210

Insurance Agencies & Brokerages

524290

Other Insurance Related Activities (including third-party administration of insurance and pension funds)

Funds, Trusts, and Other Financial Vehicles

525100

Insurance & Employee Benefit Funds

525910

Open-End Investment Funds (Form 1120-RIC)

525920

Trusts, Estates, & Agency Accounts

525990

Other Financial Vehicles (including mortgage REITS & closed-end investment funds)

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

Real Estate and Rental and Leasing

Real Estate

531110

Lessors of Residential Buildings & Dwellings (including equity REITs)

531120

Lessors of Nonresidential Buildings (except Miniwarehouses) (including equity REITs)

531130

Lessors of Miniwarehouses & Self-Storage Units (including equity REITs)

531190

Lessors of Other Real Estate Property (including equity REITs)

531210

Offices of Real Estate Agents & Brokers

531310

Real Estate Property Managers

531320

Offices of Real Estate Appraisers

531390

Other Activities Related to Real Estate

Rental and Leasing Services

532100

Automotive Equipment Rental & Leasing

532210

Consumer Electronics & Appliances Rental

532281

Formal Wear & Costume Rental

532282

Video Tape & Disc Rental

532283

Home Health Equipment Rental

532284

Recreational Goods Rental

532289

All Other Consumer Goods Rental

532310

General Rental Centers

532400

Commercial & Industrial Machinery & Equipment Rental & Leasing

Lessors of Nonfinancial Intangible Assets (except copyrighted works)

533110

Lessors of Nonfinancial Intangible Assets (except copyrighted works)

Professional, Scientific, and Technical Services

Legal Services

541110

Offices of Lawyers

541190

Other Legal Services

Accounting, Tax Preparation, Bookkeeping, and Payroll Services

541211

Offices of Certified Public Accountants

541213

Tax Preparation Services

541214

Payroll Services

541219

Other Accounting Services

Architectural, Engineering, and Related Services

541310

Architectural Services

541320

Landscape Architecture Services

541330

Engineering Services

541340

Drafting Services

541350

Building Inspection Services

541360

Geophysical Surveying & Mapping Services

541370

Surveying & Mapping (except Geophysical) Services

541380

Testing Laboratories

Specialized Design Services

541400

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

Computer Systems Design and Related Services

541511

Custom Computer Programming Services

541512

Computer Systems Design Services

541513

Computer Facilities Management Services

541519

Other Computer Related Services

Other Professional, Scientific, and Technical Services

541600

Management, Scientific, & Technical Consulting Services

541700

Scientific Research & Development Services

541800

Advertising & Related Services

541910

Marketing Research & Public Opinion Polling

541920

Photographic Services

541930

Translation & Interpretation Services

541940

Veterinary Services

541990

All Other Professional, Scientific, & Technical Services

Management of Companies (Holding Companies)

551111

Offices of Bank Holding Companies

551112

Offices of Other Holding Companies

Administrative and Support and Waste Management and Remediation Services

Administrative and Support Services

561110

Office Administrative Services

561210

Facilities Support Services

561300

Employment Services

561410

Document Preparation Services

561420

Telephone Call Centers

561430

Business Service Centers (including private mail centers & copy shops)

561440

Collection Agencies

561450

Credit Bureaus

561490

Other Business Support Services (including repossession services, court reporting, & stenotype services)

561500

Travel Arrangement & Reservation Services

561600

Investigation & Security Services

561710

Exterminating & Pest Control Services

561720

Janitorial Services

561730

Landscaping Services

561740

Carpet & Upholstery Cleaning Services

561790

Other Services to Buildings & Dwellings

561900

Other Support Services (including packaging & labeling services, & convention & trade show organizers)

Waste Management and Remediation Services

562000

Waste Management & Remediation Services

Educational Services

611000

Educational Services (including schools, colleges, & universities)

Health Care and Social Assistance

Offices of Physicians and Dentists

621111

Offices of Physicians (except mental health specialists)

621112

Offices of Physicians, Mental Health Specialists

621210

Offices of Dentists

Offices of Other Health Practitioners

621310

Offices of Chiropractors

621320

Offices of Optometrists

621330

Offices of Mental Health Practitioners (except Physicians)

621340

Offices of Physical, Occupational & Speech Therapists, & Audiologists

621391

Offices of Podiatrists

621399

Offices of All Other Miscellaneous Health Practitioners

Outpatient Care Centers

621410

Family Planning Centers

621420

Outpatient Mental Health & Substance Abuse Centers

621491

HMO Medical Centers

621492

Kidney Dialysis Centers

621493

Freestanding Ambulatory Surgical & Emergency Centers

621498

All Other Outpatient Care Centers

Medical and Diagnostic Laboratories

621510

Medical & Diagnostic Laboratories

Home Health Care Services

621610

Home Health Care Services

Other Ambulatory Health Care Services

621900

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

Hospitals

622000

Hospitals

Nursing and Residential Care Facilities

623000

Nursing & Residential Care Facilities

Social Assistance

624100

Individual & Family Services

624200

Community Food & Housing, & Emergency & Other Relief Services

624310

Vocational Rehabilitation Services

624410

Child Day Care Services

Arts, Entertainment, and Recreation

Performing Arts, Spectator Sports, and Related Industries

711100

Performing Arts Companies

711210

Spectator Sports (including sports clubs & racetracks)

711300

Promoters of Performing Arts, Sports, & Similar Events

711410

Agents & Managers for Artists, Athletes, Entertainers, & Other Public Figures

711510

Independent Artists, Writers, & Performers

Museums, Historical Sites, and Similar Institutions

712100

Museums, Historical Sites, & Similar Institutions

Amusement, Gambling, and Recreation Industries

713100

Amusement Parks & Arcades

713200

Gambling Industries

713900

Other Amusement & Recreation Industries (including golf courses, skiing facilities, marinas, fitness centers, & bowling centers)

Accommodation and Food Services

Accommodation

721110

Hotels (except Casino Hotels) & Motels

721120

Casino Hotels

721191

Bed & Breakfast Inns

721199

All Other Traveler Accommodation

721210

RV (Recreational Vehicle) Parks & Recreational Camps

721310

Rooming & Boarding Houses Dormitories, & Workers’ Camps

Food Services and Drinking Places

722300

Special Food Services (including food service contractors & caterers)

722410

Drinking Places (Alcoholic Beverages)

722511

Full Service Restaurants

722513

Limited Service Restaurants

722514

Cafeterias and Buffets

722515

Snack and Non-alcoholic Beverage Bars

Other Services

Repair and Maintenance

811110

Automotive Mechanical & Electrical Repair & Maintenance

811120

Automotive Body, Paint, Interior, & Glass Repair

811190

Other Automotive Repair & Maintenance (including oil change & lubrication shops & car washes)

811210

Electronic & Precision Equipment Repair & Maintenance

811310

Commercial & Industrial Machinery & Equipment (except Automotive & Electronic) Repair & Maintenance

811410

Home & Garden Equipment & Appliance Repair & Maintenance

811420

Reupholstery & Furniture Repair

811430

Footwear & Leather Goods Repair

811490

Other Personal & Household Goods Repair & Maintenance

Personal and Laundry Services

812111

Barber Shops

812112

Beauty Salons

812113

Nail Salons

812190

Other Personal Care Services (including diet & weight reducing centers)

812210

Funeral Homes & Funeral Services

812220

Cemeteries & Crematories

812310

Coin-Operated Laundries & Drycleaners

812320

Drycleaning & Laundry Services (except Coin-Operated)

812330

Linen & Uniform Supply

812910

Pet Care (except Veterinary) Services

812920

Photofinishing

812930

Parking Lots & Garages

812990

All Other Personal Services

Religious, Grantmaking, Civic, Professional, and Similar Organizations

813000

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

How to Get California Tax Information

(Keep This Page For Future Use)

Your Rights as a Taxpayer

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

Where to Get Tax Forms and Publications

By Internet

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

Access other state agencies’ websites at ca.gov.

By phone

To order current year California tax forms and publications, call our automated phone service. Refer to the list in your tax booklet and find the code for the form you want to order. Call 800-338-0505 and follow the recorded instructions.

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

In person

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

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

By mail

Write to:

Mail

Tax Forms Request Unit
Franchise Tax Board
PO Box 307
Rancho Cordova, CA
95741-0307

Letters

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

Mail

Correspondence, Analysis, Support
and Education Section MS F-283
Franchise Tax Board
PO Box 1468
Sacramento, CA
95812-1468

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

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

Internet and Telephone Assistance

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

Website

www.ftb.ca.gov

Phone

800-852-5711 from within the United States
916-845-6500 from outside the United States
California Relay Service
711 or 800-735-2929 for persons with hearing and speaking limitations

Asistencia Por Internet y Teléfono

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

Sitio web

www.ftb.ca.gov

Teléfono

800-852-5711 dentro de los Estados Unidos
916-845-6500 fuera de los Estados Unidos
Servicio de Retransmisión de California
711 o 800-735-2929 para personas con limitaciones auditivas o del habla

TTA Contact Information

For business eligibility or zone related information, including questions regarding TTA geographic boundaries and vouchering, contact the HCD or the local zone program manager where the business is located. Go to hcd.ca.gov and search for directory of zone contacts to find Directory of Economic Development Areas.

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

Mail

Department of Housing &
Community Development
Division of Financial Assistance
Enterprise Zone Programs
2020 West El Camino Avenue Suite 650
Sacramento, CA 95833

Mailing address

Mail

PO Box 952054
Sacramento, CA 94252-2054

Website

hcd.ca.gov

Phone

916-274-0575

Fax

916-263-2764

or for tax-specific information contact:

Website

www.ftb.ca.gov

Phone

916-845-3464