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California

Forms & Instructions This booklet contains:

3807 Form FTB 3807, Local Agency Military Base Recovery Area
Deduction and Credit Summary

1999
Local Agency Military Base
Recovery Area Business Booklet

Members of the Franchise Tax Board


Kathleen Connell, Chair
Johan Klehs, Member
B. Timothy Gage, Member

STATE OF CALIFORNIA
FRANCHISE TAX BOARD
Instructions for Local Agency Military Base Recovery Area Businesses
— Form FTB 3807
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 1998, and to the California Revenue and Taxation Code (R&TC).

Contents increased. See the Business Expense Expiration of the Los Angeles Revitalization
Deduction section for more information. Zone. The Los Angeles Revitalization Zone
What’s New . . . . . . . . . . . . . . . . . . . . . . . . . 2 (LARZ) expired on December 1, 1998. No new
General Information . . . . . . . . . . . . . . . . . . 2 General Information LARZ tax incentives may be generated.
Hiring Credit . . . . . . . . . . . . . . . . . . . . . . . . 3 However, LARZ credit carryovers and LARZ
Hiring Credit & Recapture Worksheet . . . . 5 California has established four types of NOL carryovers can be utilized to the extent of
Sales or Use Tax Credit . . . . . . . . . . . . . . . . 6 economic development areas (EDAs) that business income apportioned to the former
Sales or Use Tax Credit & Recapture have similar tax incentives: LARZ. Get FTB 3806, Los Angeles Revitaliza-
Worksheet . . . . . . . . . . . . . . . . . . . . . . . . 7 • Enterprise Zones; tion Zone Business Booklet, for more
Business Expense Deduction . . . . . . . . . . . 8 • Local Agency Military Base Recovery Areas information.
Business Expense Deduction & (LAMBRAs);
Recapture Worksheet . . . . . . . . . . . . . . . 9 • Manufacturing Enhancement Areas A Local Agency Military Base
Doing Business Totally Within a LAMBRA, (MEAs); and Recovery Areas
Within and Outside a LAMBRA, or • The Targeted Tax Area (TTA).
in More Than One LAMBRA . . . . . . . . . . 10 LAMBRAs are established to stimulate growth
A business may qualify for special deductions and development in areas that experience
Apportionment Worksheet . . . . . . . . . . . . . 11 and credits if it operates or invests in a trade
Net Operating Loss (NOL) Computation military base closures. Businesses operating
or business located within the geographic within a LAMBRA or located within a
and Loss Limitations . . . . . . . . . . . . . . . 13 boundaries of one of these EDAs.
Income or Loss Worksheet . . . . . . . . . . . . . 15 LAMBRA, may qualify for special tax
NOL Worksheet . . . . . . . . . . . . . . . . . . . . . . 16 California statutes require the Franchise Tax incentives.
Computation of Credit Limitations . . . . . . . 18 Board (FTB) to provide information to the
S Corporations . . . . . . . . . . . . . . . . . . . . 18 California Legislature and the TCA regarding B Purpose
Net Increase in Jobs . . . . . . . . . . . . . . . . . . 20 the number of businesses using the EDA tax Use this booklet to determine the correct
Net Jobs Worksheet . . . . . . . . . . . . . . . . . . 21 incentives, types of EDA tax incentives being amount of deductions and credits that the
Principal Business Activity Code Chart . . . . 22 used, and the EDAs in which the businesses business may claim for operating or investing
Form FTB 3807, Local Agency Military are claiming the tax incentives. Note: In order in a trade or business within a LAMBRA.
Base Recovery Area Deduction to help us meet this requirement, please be Complete the worksheets in this booklet for
and Credit Summary . . . . . . . . . . . . . . . . 25 sure to complete items A through J on form each deduction or credit for which the
Computation of Credit Limitations FTB 3807, Local Agency Military Base business is eligible. Then enter the total
Worksheet . . . . . . . . . . . . . . . . . . . . . . . . 26 Recovery Area Deduction and Credit Sum- deductions and credits on form FTB 3807.
How to Get California Tax Information . . . . 29 mary, as applicable.
Automated Toll-Free Phone Service . . . . . . 30 For information about: C How to Claim Deductions
• Enterprise zone tax incentives, get and Credits
What’s New FTB 3805Z, Enterprise Zone Business To claim any LAMBRA deduction or credit, the
Booklet; business must attach form FTB 3807
Local Agency Military Base Recovery Area • The MEA hiring credit, get FTB 3808,
(LAMBRA) Designations (included in this booklet) to its California tax
Manufacturing Enhancement Area return.
Mare Island Naval Shipyard in Vallejo received Business Booklet; or
final designation from the Trade and Com- • TTA tax incentives, get FTB 3809, Targeted Attach a separate form FTB 3807 for each
merce Agency (TCA) on January 1, 1999. Tax Area Business Booklet. business you operate or invest in that is
Accordingly, any costs paid or incurred on or located within a LAMBRA.
after January 1, 1999, by businesses Conformity. In general, California tax law
conforms to the Internal Revenue Code (IRC) To assist with the processing of the tax return,
operating in this LAMBRA may qualify for indicate that the business operates or invests
LAMBRA tax incentives. as of January 1, 1998. However, there are
continuing differences between California and within a LAMBRA by doing the following:
In June 1999, Mather Field/McClellan Air federal tax law. California has not conformed Form 540 and Write “LAMBRA” in the
Force Base in Sacramento and the San to most of the changes made to the IRC by Form 540NR top left margin of
Bernardino International Airport and Trade the federal Internal Revenue Service (IRS) filers: Form 540 or Form 540NR,
Center (formerly Norton Air Force Base) Restructuring and Reform Act of 1998 (Public Side 1.
received conditional designations as Law 105-206) and has not conformed to any
LAMBRAs. These areas must receive final Form 100 filers: Claim LAMBRA tax
of the changes made by the Tax and Trade incentives on Form 100,
designation from the TCA in order to qualify Relief Extension Act of 1998 (Public
for the LAMBRA tax incentives. line 14, line 20, and
Law 105-277). line 24 through line 27,
California Tax Law Changes Principal Business Activity Code Chart. The as applicable.
Qualified Disadvantaged Individual. For principal business activity (PBA) code chart is
taxable or income years beginning on or after Form 100S filers: Claim LAMBRA tax
based on the North American Industry incentives on Form 100S,
January 1, 1999, the definition of a qualified Classification System published by the United
disadvantaged individual has been modified. line 12, line 19, and
States Office of Management and Budget, line 23 through line 26,
See the Hiring Credit section for more 1997 Edition. Accordingly, the PBA and North
information. as applicable.
American Industry Classification System
Business Expense Deduction. For taxable or (NAICS) codes are used for purposes of Form 109 filers: Check the “yes” box for
income years beginning on or after business classification. the enterprise zone, LARZ,
January 1, 1999, the allowable LAMBRA LAMBRA, MEA, or TTA
business expense deduction has been question on the top of
Form 109, Side 1.

Page 2 FTB 3807 Booklet 1999


Note: Be sure to keep all completed Form 540NR California Nonresident or Part- • State and local general assistance;
worksheets and supporting documents for Year Resident Income Tax or
your records. Return 11. A Native American.
Net Increase in Jobs Requirement – In order Form 541 California Fiduciary Income Tax Qualified Wages
to qualify for the LAMBRA tax incentives, a Return Qualified wages means the wages paid or
business must have a net increase of one or Form 565 Partnership Return of Income incurred by the business during the taxable or
more jobs within the first 2 taxable or income Form 568 Limited Liability Company income year to a qualified employee. For the
years of commencing business within the Return of Income Mare Island LAMBRA, the wages must be paid
LAMBRA. Note: Taxpayers engaged in Schedule CA California Adjustments — or incurred on or after January 1, 1999, for
operations within a LAMBRA are allowed to (540) Residents qualified employees hired on or after
utilize the designated LAMBRA tax incentives Schedule CA California Adjustments — January 1, 1999.
beginning in the first year of operation in the (540NR) Nonresidents or Part-Year
Residents Wages that qualify for the hiring credit are
LAMBRA even though they have not yet those wages paid to a qualified employee for
fulfilled the net increase in jobs requirement. Schedule P Alternative Minimum Tax and
Credit Limitations the consecutive 60-month period beginning
However, if after the end of the 2nd taxable or on the first date the employee commenced
income year of operations within the LAMBRA Schedule R Apportionment and Allocation
of Income employment with the employer. For an
a taxpayer does not fulfill the net increase in employer that operates a business that has
jobs requirement, all LAMBRA tax incentives regularly occurring seasonal or intermittent
claimed in prior years must be recaptured. Part I Hiring Credit employment decreases and increases,
The net increase in jobs is computed on form Employers conducting a trade or business reemployment of an employee does not
FTB 3807. See page 20 for the instructions on within a LAMBRA may claim the hiring credit constitute commencement of employment for
how to compute the increase. for a qualified employee. the qualified wages test.
Qualified Employee The qualified wages are the smaller of:
D LAMBRA Designation A qualified employee is an employee who: • The actual hourly rate paid or incurred by
The TCA is authorized to designate LAMBRAs. the business for work performed by the
• Was hired after the LAMBRA received its
The TCA has designated the following employee during the taxable or income
final designation (see General
LAMBRAs with the following designation year; or
Information D, LAMBRA Designation);
dates: • 150% of the minimum hourly wage
• Spends at least 90% of work time for the
• Southern California International Airport qualified employer on activities directly established by the Industrial Welfare
LAMBRA in Victorville (formerly known as related to the conduct of a trade or Commission.
George Air Force Base) on business located within the LAMBRA; and Where the California minimum wage is higher
February 1, 1996; • Performs at least 50% of the work for the than the federal minimum wage, the California
• Castle Airport LAMBRA in Atwater qualified employer within the boundaries minimum wage is used for purposes of
(formerly known as Castle Air Force Base) of the LAMBRA. computing the LAMBRA hiring credit. The
on June 1, 1996; and established minimum wage after
For taxable or income years beginning on or
• Mare Island LAMBRA in Vallejo on March 1, 1998, is $5.75 per hour. For
after January 1, 1999, a qualified employee
January 1, 1999. purposes of computing the LAMBRA hiring
must be:
At the time this booklet went to press, credit, 150% of the minimum wage is $8.62
• A civilian or military employee of a base or
designations were pending for Alameda Naval per hour.
former base who has been displaced as a
Air Station in Alameda, Mather Field/McClellan Example:
result of a federal base closure act; or
Air Force Base in Sacramento, San Bernardino
• Anyone who immediately before starting Ray Smith was hired January 1, 1999.
International Airport (formerly Norton Air
work for the employer was any of the Ray's hourly rate for Month 1 was $7.00. At
Force Base) in San Bernardino, and Tustin
following: the beginning of Month 2, his hourly rate
Marine Corps Air Station in Tustin. Incentives
are available only after final designation 1. A person who has been determined increased to $8.00. For Month 3, Ray's hourly
occurs. eligible for services under the federal rate increased to $9.00. The hourly rate that
Job Training Partnership Act (JTPA); qualifies for the credit is limited to 150% of
For information about the designation of an
2. A person eligible to be a voluntary or the minimum wage, or currently $8.62 per
area, call the TCA at (916) 327-2236.
mandatory registrant under the hour.
If your business is located totally within a Greater Avenues for Independence Month(s) Hours x Hourly = Qualified wages
LAMBRA, within and outside a LAMBRA, or in Act of 1985 (GAIN); per month rate per month
more than one LAMBRA, see Part IV on 3. An economically disadvantaged 1 175 $7.00 $1,225.00
page 10 for instructions on how to apportion individual 16 years of age or older;
income. 2 170 8.00 $1,360.00
4. A qualified dislocated worker;
5. An individual who is enrolled in or 3 170 8.62 $1,465.40
E Forms Table has completed a state rehabilitation Credit Limitations
The titles of forms referred to in this booklet plan;
• The cumulative qualified wages used to
are: 6. A service-connected disabled veteran;
compute the credit cannot exceed
Form 100 California Corporation 7. A veteran of the Vietnam era;
$2,000,000. The limit applies to each
Franchise or Income Tax 8. A veteran who recently separated
taxpayer for each taxable or income year.
Return from military service;
• The amount of hiring credit claimed may
Form 100S California S Corporation 9. An ex-offender;
not exceed the amount of tax on LAMBRA
Franchise or Income Tax 10. A person who is a recipient of:
business income in any year. Use
Return • Federal Supplemental Security
Worksheet VI on Side 2 of form FTB 3807
Form 109 California Exempt Organization Income (SSI) benefits;
to compute the credit limitation.
Business Income Tax Return • Aid to Families with Dependent
• Any unused credit may be carried over and
Form 540 California Resident Income Tax Children (AFDC);
applied against the tax imposed on
Return • Food stamps; or

FTB 3807 Booklet 1999 Page 3


LAMBRA business income in future years Line 1, column (b) through column (f) – Note: The credit recapture does not apply if
until exhausted. Enter the qualified wages paid or incurred the termination of employment was:
• The business must reduce any deduction during the taxable or income year to each • Voluntary on the part of the employee;
for wages by the amount of this credit. qualified employee listed in column (a) in the • In response to misconduct of the
• In the case where the business is qualified appropriate column. employee;
to take the LAMBRA hiring credit as well Line 2, column (b) through column (f) – • Caused by the employee becoming
as another credit (e.g., enterprise zone, Add the amount of qualified wages in each disabled (unless the employee was able to
MEA, or TTA hiring credit) for the same column. return to work and the employer did not
wage expense, the business may only offer to reemploy the individual);
claim one credit. Line 3, column (b) through column (f) –
Multiply the total in each column of line 2 by • Carried out so that other qualified
• S corporations are allowed only 1/3 of the individuals could be hired, creating a net
LAMBRA hiring credit by operation of law. the percentage in each column.
increase in both the number of qualified
• S corporations must reduce their wage Line 5 – The federal jobs tax credit to include employees and their hours worked; or
deduction by 1/3 of the amount on on this line is the Work Opportunity Tax Credit • Due to a substantial reduction in the
Worksheet I, Section A, line 4. Make the (as in effect January 1, 1998, in IRC Sec- employer’s trade or business operations.
wage deduction adjustment on Form 100S, tion 51) for individuals hired before
line 7. In addition, the S corporation must July 1, 1998. This credit is also subject to recapture if the
make an adjustment for the entire amount net increase in jobs requirement is not met.
Note: No other California jobs tax credit may See the instructions for form FTB 3807,
of the credit on Schedule K (100S), line 1, be claimed for the same wage expense paid to
column (c). Part I, Net Increase in Jobs, on page 20.
the employees shown in line 1, column (a).
Example: In 1999, an S corporation Line 1, column (a) – Enter the name of the
Line 6 – Enter the amount from line 6 on terminated employee. Attach an additional
qualified for a $3,000 LAMBRA hiring form FTB 3807, Side 2, Worksheet VI, as
credit. The S corporation can claim a schedule(s) if necessary.
follows:
credit for $1,000 and must reduce its Line 1, column (b) – Enter the amount of
• Part II, line 8B, column (b) for corpora- credit recapture for each employee listed in
wage deduction by $1,000 ($3,000 X 1/3).
tions, individuals, and estates and trusts; column (a).
On Form 100S, Schedule K, line 1,
• Part III, line 10, column (b) for S corpora-
column (c), the S corporation would add Line 2 – Enter the amount from line 2,
tions; or
$3,000 to the S corporation’s ordinary column (b) on form FTB 3807, Side 1, line 6.
• Part IV, line 12, column (b) for corpora-
income or loss to reflect the credit passed
tions and S corporations subject to paying Also include the amount of hiring credit
through to the shareholder(s).
only the minimum franchise tax. recapture on your California tax return or
For additional information about the treatment schedule as follows:
of credits for S corporations, see Part VI on Section B – Credit Recapture • Form 100, Schedule J, line 5;
page 18.
The employer must recapture the amount of • Form 100S, Schedule J, line 5 and
Recordkeeping credit attributable to an employee’s wages if Schedule K-1 (100S), line 23;
For each qualified employee, keep a schedule the employer terminates an employee at any • Form 109, Schedule K, line 4;
for the first 60 months (five years) of time during the longer of: • Form 540, line 36;
employment showing (at least): • Form 540NR, line 45;
• The first 270 days of employment
• Employee’s name; (whether or not consecutive); or • Form 541, line 21b and
• Date the employee was hired; • 90 days of employment plus 270 calendar Schedule K-1 (541), line 11e;
• Number of hours the employee worked for days. • Form 565, Schedule K, line 22 and
each month of employment; Schedule K-1 (565), line 22; or
For employers of seasonal employees, the • Form 568, Schedule K, line 22 and
• Smaller of the hourly rate of pay for each
employer must recapture the amount of credit Schedule K-1 (568), line 22.
month of employment or 150% of the
attributable to a seasonal employee’s wages if
minimum wage; Indicate that you included the hiring credit
the employer terminates the employment
• Total qualified wages per month for each recapture on your tax return by writing
before the completion of 270 days of
month of employment; and “FTB 3807” in the space provided on the
employment during the 60-month period
• Location of the employee’s job site and schedule or form.
beginning the day the employee commences
duties performed.
employment with the employer. Partnerships and limited liability companies
(LLCs) taxed as partnerships must identify the
Instructions for Worksheet I — A “day of employment” means any day for
recapture amounts for their partners and
which the employee receives wage compensa-
Hiring Credit & Recapture tion (including a paid sick day, holiday, or members on Schedule K-1 (565 or 568).
vacation day). S corporation shareholders must recapture
Section A – Credit Computation The employer must add to the current year’s the portion of credit that was previously
Line 1, column (a) – Enter the name of each tax the amount of credit claimed in the year of claimed, based on the terminated employee’s
qualified employee. Attach an additional termination and all prior years in which the wages. S corporations must also identify the
schedule(s) if necessary. credit was claimed for the terminated recapture amount for shareholders on
employee. Schedule K-1 (100S). This amount will differ
from the amount recaptured by the
S corporation on Form 100S, Schedule J.

Page 4 FTB 3807 Booklet 1999


Worksheet I Hiring Credit & Recapture — LAMBRA
Section A Credit Computation
Qualified wages paid or incurred for year of employment
(a) (b) (c) (d) (e) (f)
Employee’s name 1st year 2nd year 3rd year 4th year 5th year

2 Total. See instructions . . . . . . . . . . . . . . . . .


.50 .40 .30 .20 .10
3 Multiply line 2 by the percentage in each
column. See instructions . . . . . . . . . . . . . . .

4 Add the amounts on line 3, column (b) through column (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5 Enter the amount of 1999 federal jobs tax credit allowed. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

6 Subtract the amount on line 5 from the amount on line 4 and enter the result here. See instructions . . . . . . . . . . . . . . . . 6
Note: You cannot take the LAMBRA hiring credit as well as another credit for the same wage expense.

Section B Credit Recapture


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

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

FTB 3807 Booklet 1999 Page 5


Part II Sales or Use Tax Credit Credit Limitations • The location where it is used; and
• The amount of sales or use tax credit • If purchased from a manufacturer located
Individuals, estates or trusts, partnerships, claimed may not exceed the amount of tax outside California, records to substantiate
and LLCs taxed as partnerships may claim a on the LAMBRA business income in any that property of comparable quality and
credit equal to the sales or use tax paid or year. After completing Worksheet II, use price was not available for purchase in
incurred to purchase up to $1 million of Worksheet VI on Side 2 of form FTB 3807 California.
qualified property. Corporations may claim a to compute the credit limitation. Example:
credit equal to the sales or use tax paid or • In the case where the business is qualified
incurred to purchase up to $20 million of XYZ Inc., an S corporation, purchases
to take the LAMBRA sales or use tax credit qualified property for $20 million ($20 m.).
qualified property. Individuals who are as well as another credit (e.g., manufactur-
S corporation shareholders may claim their The sales tax rate is 6% (.06) and the entity-
ers’ investment credit or TTA sales or use level tax rate is 1.5%.
pro-rata share of pass-through credit to the tax credit) for the same piece of property,
extent the S corporation paid or incurred the business may only claim one credit. The credit allowed XYZ Inc. and the depre-
sales or use tax to purchase up to $1 million • Any unused credit may be carried over and ciable basis of the qualified property for XYZ
of qualified property. See the example in the applied against the tax on LAMBRA Inc. are figured as follows:
third column of this page. income in future years until exhausted. In Depreciable
For the Mare Island LAMBRA, the qualified the case of an S corporation, 2/3 of the basis
property must be purchased on or after credit is lost and the remaining 1/3 can be Qualified property $20 m. $20 m.
January 1, 1999, and the sales or use tax carried over if it cannot be used in the Sales tax paid
must be paid or incurred on or after current year. ($20 m. x .06) 1.2 m. +1.2 m.
January 1, 1999. Sales or use tax credit
For additional information about the treatment allowed XYZ Inc. 1.2 m. (1.2 m.)
Qualified property is: of credits for S corporations, see Part VI on
page 18. Depreciable basis of qualified
• High technology equipment, such as property for XYZ Inc. $20 m.
computers and electronic processing Depreciation
equipment; Any taxpayer that elects this credit cannot Credit allowed to offset the
• Aircraft maintenance equipment, such as increase the basis of the qualified property by entity-level tax ($1.2 m. x 1/3) $0.4 m.
engine stands, hydraulic mules, power sales or use tax paid or incurred in connection XYZ Inc. has two 50% shareholders. The
carts, test equipment, handtools, aircraft with the purchase of qualified property. credit allowed the shareholders and the
start carts, and tugs; To compute the difference between California depreciable basis of the qualified property for
• Aircraft components, such as engines, fuel and federal depreciation, use the following the shareholders are figured as follows:
control units, hydraulic pumps, avionics, forms and schedules: Depreciable
starts, wheels, and tires; and basis
• IRC Section 1245 property. • Form 100 filers – FTB 3885, Corporation Qualified property
Depreciation and Amortization; (purchased by
The business must use the property exclu- • Form 100S filers – Schedule B (100S),
sively within the boundaries of the LAMBRA. XYZ Inc.) $20 m. $20 m.
S Corporation Depreciation and Sales tax
Also, the qualified property must be pur- Amortization;
chased before the LAMBRA designation (paid by XYZ Inc.) 1.2 m. +1.2 m.
• Form 109 filers – Form 109, Schedule J, Maximum qualified costs
expires. Depreciation. Note: Exempt trusts use for sales or use
Use tax paid on purchases of property FTB 3885F, Depreciation and Amortization; tax credit 1 m.
manufactured outside of California qualifies • Form 540 and 540NR filers – FTB 3885A, Sales or use tax credit
for the credit only if property of a comparable Depreciation and Amortization allowed the share-
quality and price was not available for timely Adjustments; holders
purchase and delivery from a California • Form 541 filers – FTB 3885F, Depreciation ($1 m. x .06) .06 m. (.06 m.)
manufacturer. and Amortization;
• Form 565 filers – FTB 3885P, Depreciation Depreciable basis of qualified
Leased Property property for the
The sales tax paid on qualified property being and Amortization; or
• Form 568 filers – FTB 3885L, Depreciation shareholders $21.14 m.
purchased using a financial (conditional sales)
contract qualifies for the sales or use tax and Amortization. Total amount of credit allowed
credit. Recordkeeping the shareholders $.06 m.
To determine whether the lease qualifies as a In order to support the sales or use tax credit Note: Each shareholder is allowed a $30,000
purchase rather than a true lease, see claimed, keep all records that document the (.06 m. ÷ 2 = .03 m.) sales or use tax credit.
Revenue Ruling 55-540, 1955-2 C.B. 39 and purchase of the qualified property, such as the
FTB Legal Ruling 94-2, March 23, 1994. sales receipt and proof of payment. Addition-
ally, keep all records that identify or describe:
• The property purchased (such as serial
numbers, etc.);
• The amount of sales or use tax paid on its
purchase;

Page 6 FTB 3807 Booklet 1999


Instructions for Worksheet II • Part III, line 11, column (b) for S corpora- Also include the amount of sales or use tax
tions; or credit recapture on your California tax return
— Sales or Use Tax Credit & • Part IV, line 13, column (b) for corpora- or schedule as follows:
Recapture tions and S corporations subject to paying • Form 100, Schedule J, line 5;
only the minimum franchise tax. • Form 100S, Schedule J, line 5 and
Section A – Credit Computation Caution: Only the sales or use tax paid on the Schedule K-1 (100S), line 23;
cost of qualified property up to the limitations • Form 109, Schedule K, line 4;
Line 1, column (a) – List the items of
on column (b) may be claimed as a credit. • Form 540, line 36;
qualified property purchased during the year.
• Form 540NR, line 45;
For each item, provide the location (street
address and city) of its use. Attach an
Section B – Credit Recapture • Form 541, line 21b and
The sales or use tax credit is subject to Schedule K-1 (541), line 11e;
additional schedule(s) if necessary.
recapture (added back to tax) if, before the • Form 565, Schedule K, line 22 and
Line 1, column (b) – Enter the cost of the Schedule K-1 (565), line 22; or
close of the 2nd taxable or income year after
property listed in column (a). • Form 568, Schedule K, line 22 and
the property was placed in service, it is
Line 1, column (c) – Enter the amount of disposed of or is no longer used exclusively Schedule K-1 (568), line 22.
sales or use tax paid or incurred on the in the LAMBRA trade or business. In that Indicate that you included the sales or use tax
property listed in column (a). case, the credit amount for that property is credit recapture on your tax return by writing
Line 2, column (b) – Add the amounts on added to tax in the current taxable or income “FTB 3807” in the space provided on the
line 1, column (b). year. schedule or form.
Caution: This amount cannot exceed This credit is also subject to recapture if the Partnerships and LLCs taxed as partnerships
$1 million for individuals, estates or trusts, net increase in jobs requirement is not met. must identify the recapture amounts for
partnerships, or LLCs taxed as partnerships, See the instructions for form FTB 3807, partners and members on Schedule K-1 (565
or $20 million for corporations. When Part I, Net Increase in Jobs, on page 20. or 568).
computing the amount of credit to pass Line 1, column (a) – Enter a description of S corporations and their shareholders must
through to S corporation shareholders, use the qualified property. Attach an additional recapture the portion of credit that was
$1 million. schedule(s) if necessary. previously claimed. S corporations must also
Line 2, column (c) – Add the amounts on Line 1, column (b) – Enter the amount of identify the recapture amount for sharehold-
line 1, column (c). Enter the total here and on credit recapture for each property listed in ers on Schedule K-1 (100S). This amount will
form FTB 3807, Side 2, Worksheet VI, as column (a). differ from the amount recaptured by the
follows: S corporation on Form 100S, Schedule J.
Line 2 – Enter the amount from line 2,
• Part II, line 9B, column (b) for corpora- column (b) on form FTB 3807, Side 1, line 7.
tions, individuals, and estates and trusts;

Worksheet II Sales or Use Tax Credit & Recapture — LAMBRA


Section A Credit Computation
(a) (b) (c)
Property description and location Cost Sales or use tax

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

Section B Credit Recapture


(a) (b)
Property description Recapture amount

2 Total recapture amount. Add the amounts in column (b). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

FTB 3807 Booklet 1999 Page 7


Part III Business Expense original return filed, and thus cannot be • Form 109, Part II, line 24;
claimed on an amended return. Such an • Schedule CA (540), column B, on the
Deduction election cannot be revoked without the written applicable line for your activity;
Businesses conducting a trade or business consent of the FTB. • Schedule CA (540NR), column B, on the
within a LAMBRA may elect to treat 40% of A husband and wife filing separate returns applicable line for your activity;
the eligible cost of qualified property as a may each claim 1/2 of the allowable deduc- • Form 565, Schedule K, line 9 and
business expense rather than a capital tion. In the case of a partnership, the dollar Schedule K-1 (565), line 9; or
expense. For the year the property is placed in limitation applies to the partnership and to • Form 568, Schedule K, line 9 and
service, the business may deduct the cost each partner. Each partner’s business expense Schedule K-1 (568), line 9.
(subject to limitations) in that year rather than deduction passed through from the partner- Note: If filing Form 540 or Form 540NR,
depreciate it over several years. For the Mare ship is based on their allocable share of the indicate that you are claiming the business
Island LAMBRA, the qualified property must allowable deduction. expense deduction by writing “FTB 3807”
be placed in service on or after Depreciation above the dotted line to the left of the amount
January 1, 1999. Corporations may not claim the additional entered on Form 540, line 14 or Form 540NR,
Note: The LAMBRA business expense first-year depreciation allowed under R&TC line 14.
deduction is not allowed for estates or trusts. Section 24356 on any item of property if any
portion of it was deducted as a LAMBRA Section B – Deduction
Qualified property is any recovery property
that is IRC Section 1245 property, which business expense. All other taxpayers cannot Recapture
includes, but is not limited to, tangible claim the deduction allowed under IRC The deduction is subject to recapture (added
personal property (excluding buildings), most Section 179 on any item of property if any back to income) if, before the close of the
equipment and furnishings acquired by portion of it was deducted as a LAMBRA second taxable or income year after the
purchase for exclusive use within a LAMBRA. business expense. property was placed in service, the property is
Office supplies and other small nondepre- To compute the difference between California sold, disposed, or no longer used exclusively
ciable items are not included. and federal depreciation, use the following in the LAMBRA trade or business. In that
The maximum aggregate cost applicable to forms and schedules: case, add to the current year income the
the 40% deduction the business may claim in • Form 100 filers – FTB 3885, Corporation amount previously deducted for that property.
any taxable or income year is determined by a Depreciation and Amortization; This deduction is also subject to recapture if
reference to the number of taxable or income • Form 100S filers – Schedule B (100S), the net increase to jobs requirement is not
years that have elapsed since the LAMBRA S Corporation Depreciation and met. See the instructions for form FTB 3807,
received its final designation. See General Amortization; Part I, Net Increase in Jobs, on page 20.
Information D, LAMBRA Designation, for the • Form 109 filers – Form 109, Schedule J, Line 1, column (a) – Enter a description of
designation dates. Depreciation; the property. Attach an additional schedule(s)
The applicable cost is: • Form 540 and Form 540NR filers – if necessary.
Taxable or income year of FTB 3885A, Depreciation and Amortization
Adjustments; Line 1, column (b) – Enter the amount of the
designation . . . . . . . . . . . . . . . . . $100,000 business expense deduction claimed for each
1st taxable or income year after • Form 565 filers – FTB 3885P, Depreciation
and Amortization; or property listed in column (a).
designation . . . . . . . . . . . . . . . . . . 100,000
2nd taxable or income year after • Form 568 filers – FTB 3885L, Depreciation Line 2 – Enter the total here, on form
designation . . . . . . . . . . . . . . . . . . . 75,000 and Amortization. FTB 3807, Side 1, line 8, and on your
3rd taxable or income year after California tax return or schedule as follows:
designation . . . . . . . . . . . . . . . . . . . 75,000 Instructions for Worksheet III • Form 100, line 14, as a negative amount;
Each remaining taxable or income — Business Expense Deduction • Form 100S, line 12, as a negative amount,
year of designation . . . . . . . . . . . . . 50,000 Form 100S, Schedule K, line 6 and
& Recapture Schedule K-1 (100S), line 6;
Election
The business must elect to treat the cost of • Form 109, Part I, line 12;
qualified property as a business expense in Section A – Deduction • Schedule CA (540), column C, on the
the year the property is first placed in service. Computation applicable line for your activity;
However, this deduction is not allowed if the • Schedule CA (540NR), column C, on the
Line 2, column (a) – Enter a description of applicable line for your activity;
property was: the qualified property and the location of its • Form 565, Schedule K, line 7 and
• Transferred between members of an use. Attach an additional schedule(s) if Schedule K-1 (565), line 7; or
affiliated group; necessary. • Form 568, Schedule K, line 7 and
• Acquired as a gift or inherited; Line 2, column (b) – Enter the cost of the Schedule K-1 (568), line 7.
• Traded for other property; property listed in column (a).
• Received from a personal or business Note: If filing Form 540 or Form 540NR,
relation as defined in IRC Section 267 or Line 4 – Enter the amount from line 4, indicate that you are recapturing the business
707(b); or column (b) on form FTB 3807, Side 1, line 3, expense deduction by writing “FTB 3807”
• Described in IRC Section 168(f). and on your California tax return or schedule above the dotted line to the left of the amount
as follows: entered on Form 540, line 16 or Form 540NR,
The LAMBRA business expense deduction line 16.
must be claimed by making an election on the • Form 100, line 14;
• Form 100S, line 12, Form 100S,
Schedule K, line 8, and Schedule K-1
(100S), line 8;

Page 8 FTB 3807 Booklet 1999


Worksheet III Business Expense Deduction & Recapture — LAMBRA
Section A Deduction Computation
1 The maximum aggregate deduction:
• Taxable or income year of designation, enter $40,000;
• 1st taxable or income year after designation, enter $40,000;
• 2nd taxable or income year after designation, enter $30,000;
• 3rd taxable or income year after designation, enter $30.000;
• Each remaining taxable or income year of designation, enter $20,000 . . . . . . . . . . . . . . . . . . . . . . . . . . 1
The designation dates are listed in General Information D, LAMBRA Designation.

(a) (b)
Property description and location Cost

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


4 Enter the smaller of line 1 or line 3. This is the maximum amount deductible as a business expense
for this LAMBRA. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Section B Deduction Recapture


(a) (b)
Property description Recapture amount

2 Total recapture amount. Add the amounts in column (b). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . 2

FTB 3807 Booklet 1999 Page 9


Part IV Doing Business Totally 2. The distributive (or pro-rata for Payroll Factor
S corporations) share of the business Payroll is defined as the total amount paid to
Within a LAMBRA, Within and capital gains and losses apportioned to the the business’s employees as compensation
Outside a LAMBRA, or in More LAMBRA included in item 1. for the production of business income during
the taxable or income year.
Than One LAMBRA These items should be reported using the
appropriate California schedules listed below: Compensation means wages, salaries,
LAMBRA tax incentives are limited to the tax • Schedule K-1 (100S), line 23; commissions, and any other form of remu-
on business income attributable to operations • Schedule K-1 (541), line 11e; neration paid directly to employees for
within the LAMBRA. If the business is located • Schedule K-1 (565), line 22; or personal services. Payments made to
within and outside a LAMBRA or in more than • Schedule K-1 (568), line 22. independent contractors or any other person
one LAMBRA, you must determine the portion not properly classified as an employee are
of total business operations that are attribut- Apportionment excluded.
able to each LAMBRA. Compensation Within the LAMBRA.
Business income is apportioned to the
LAMBRA by multiplying the total California Compensation is considered to be within the
Business Income vs. business income of the taxpayer by a fraction, LAMBRA if any one of the following tests is
Nonbusiness Income the numerator which is the property factor met:
Only business income is apportioned to the plus the payroll factor, and the denominator • The employee services are performed
LAMBRA where operations are conducted. which is two. Loss is apportioned to the within the geographical boundaries of the
LAMBRA tax incentives are limited to tax on LAMBRA by multiplying the taxpayer's net LAMBRA; or
business income attributable to operations business operating loss from all sources by a • The employee services are performed
within the LAMBRA. fraction, the numerator which is the property within and outside the LAMBRA, but the
Business income is defined as income arising factor plus the payroll factor, and the services performed outside the LAMBRA
from transactions and activities in the regular denominator which is two. are incidental to the employee services
course of the trade or business. Business Property Factor within the LAMBRA.
income includes income from tangible and Property is defined as the average value of all Note: Incidental means any temporary or
intangible property if the acquisition, real and tangible personal property owned or transitory service rendered in connection with
management, and disposition of the property rented by the business and used during the an isolated transaction.
constitute integral parts of the taxpayer’s taxable or income year to produce business Compensation Within and Outside the
regular trade or business operations. income. Note: Property is included in the LAMBRA. If employee services are performed
Nonbusiness income is all income other than factor if it could be used during the taxable or within and outside the LAMBRA, employee
business income. Get Title 18 Cal. Code Reg. income year. compensation will be attributed to the
Section 25120 for further references and Property owned by the business is valued at LAMBRA if:
examples of nonbusiness income. its original cost. Generally, original cost is the • The employee’s base of operations is
For an individual, business income includes basis of the property for federal income tax within the LAMBRA; or
but is not limited to California business purposes (prior to any federal adjustment) at • There is no base of operations in any other
income or loss from Schedules C, D, D-1 (or the time of acquisition by the business, part of the state in which some part of the
Form 4797, Sales of Business Property, if you adjusted for subsequent capital additions or service is performed, but the place from
did not have to file a Schedule D-1), E, and F, improvements and partial dispositions which the service is directed or controlled
as well as wages. Be sure to include casualty because of sale or exchange. Allowance for is within the LAMBRA.
losses, disaster losses, and any business depreciation is not considered.
Base of operations is the permanent place
deductions reported on Schedule A as Rented property is valued at 8 times the net from which employees start work and
itemized deductions. annual rental rate. The net annual rental rate customarily return in order to receive
Note: If you elected to carry back part or all of for any item of rented property is the total instruction from the taxpayer or communica-
your current year disaster loss under IRC rent paid for the property, less aggregate tions from their customers or other persons;
Section 165(i)(1), do not include the amount annual subrental rates paid by subtenants. to replenish stock or other material; to repair
of the loss that was carried back in your When determining income or loss apportion- equipment; or to perform any other functions
current year business income for the ment on Worksheet IV, Section A or B, the necessary in the exercise of their trade or
LAMBRA. numerator of the property factor is the profession at some other point or points.
In general, all transactions and activities of average value of real and tangible personal When determining income or loss apportion-
the business that are dependent upon or property owned or rented by the business and ment on Worksheet IV, Section A or B, the
contribute to the operations of the economic used within the LAMBRA during the taxable or numerator of the payroll factor is the total
enterprise as a whole constitute a trade or income year to produce LAMBRA business compensation paid to employees for working
business. income (column (b)). within the LAMBRA during the taxable or
When a corporation is part of a group of When determining income apportionment on income year (column (b)).
corporations engaged in a unitary business, Worksheet IV, Section A, the denominator of When determining income apportionment on
the income and apportionment factors of the the property factor is the total average value Worksheet IV, Section A, the denominator of
unitary group must be combined. For more of all real and tangible personal property the payroll factor is the total compensation
information, get Schedule R. See instructions owned or rented and used during the taxable paid to employees working in California
for ordering forms on page 29. or income year within California (column (a)). (column (a)).
Pass-through entities must report to their When determining loss apportionment on When determining loss apportionment on
shareholders, beneficiaries, partners, and Worksheet IV, Section B, the denominator of Worksheet IV, Section B, the denominator of
members: the property factor is the total average value the payroll factor is the total compensation
1. The distributive (or pro-rata for of all real and tangible personal property paid to employees working in all business
S corporations) share of the business owned or rented and used during the year to operation locations.
income apportioned to the LAMBRA; and produce business income within and outside
the LAMBRA (column (a)).

Page 10 FTB 3807 Booklet 1999


Example – Computation of LAMBRA income Note: If the business operates solely within a
assigned to each entity operating within the Instructions for Worksheet IV single LAMBRA and all its property and
LAMBRA: — Apportionment payroll are solely within that single LAMBRA,
Parent Corporation A has two subsidiaries, B and C. you do not have to complete this worksheet.
Corporations A and B operate within the LAMBRA. The
combined group operates within and outside California and Section A – Income Enter 100% (1.00) on line 4.
apportions its income to California using Schedule R. The
combined group’s business income apportioned to Apportionment Section B – Loss
California was $1,000,000.
Use Worksheet IV, Section A, Income Apportionment
Business income apportioned to the LAMBRA is
determined as follows: Apportionment, to determine the amount of
business income apportioned to the LAMBRA. Use Worksheet IV, Section B, Loss Apportion-
A B Combined ment, to determine your net operating loss
Group The LAMBRA business income determines the
Property Factor amount of the tax incentives that can be used. apportioned to the LAMBRA. A taxpayer’s
LAMBRA property $2,000,000 $1,000,000 $3,000,000 LAMBRA net operating loss is its net business
California property $5,000,000 Only California source business income is operating loss from all sources multiplied by
Apportionment % 40% 20% 60% apportioned to the LAMBRA. A taxpayer’s the specific LAMBRA apportionment percent-
Payroll Factor LAMBRA business income is its California age computed in Worksheet IV, Section B.
LAMBRA payroll $2,000,000 $800,000 $2,800,000
California payroll $4,000,000
apportioned business income multiplied by
Apportionment % 50% 20% 70% the specific LAMBRA apportionment The LAMBRA property and payroll factors
percentage. used in the determination of the apportioned
Average
Apportionment % 45% 20% 65% business net operating loss include worldwide
The LAMBRA property and payroll factors amounts in the denominator.
(Property + Payroll Factors)
2 used in the determination of apportionable
Apportioned business income include only the taxpayer’s Note: If the business operates solely within a
Business Income $1,000,000
California amounts in the denominator. single LAMBRA and all its property and
LAMBRA INCOME $ 450,000 $ 200,000 $ 650,000 payroll are solely within that single LAMBRA,
you do not have to complete this worksheet.
Enter 100% (1.00) on line 4.

Worksheet IV Apportionment — LAMBRA


Use Worksheet IV, Section A, if your business has net income (a) (b) (c)
from sources within and outside a LAMBRA. Total within Total within Percentage within a LAMBRA
California a LAMBRA 1234567890123456789012
1234567890123456789012
(column (b) ÷ column (a))
PROPERTY FACTOR 1234567890123456789012
1234567890123456789012
1234567890123456789012
1234567890123456789012
1 Average yearly value of owned real and tangible personal
1234567890123456789012
1234567890123456789012
property used in the business (at original cost). See 1234567890123456789012
instructions on page 10. Exclude property not connected 1234567890123456789012
1234567890123456789012
with the business and the value of construction in progress.
1234567890123456789012
1234567890123456789012
1234567890123456789012
1234567890123456789012
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1234567890123456789012
1234567890123456789012
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1234567890123456789012
1234567890123456789012
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . 1234567890123456789012
1234567890123456789012
Furniture and fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1234567890123456789012
1234567890123456789012
Delivery equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1234567890123456789012
1234567890123456789012
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1234567890123456789012
1234567890123456789012
Other tangible assets (attach schedule) . . . . . . . . . . . . . . 1234567890123456789012
1234567890123456789012
1234567890123456789012
1234567890123456789012
Rented property used in the business.
1234567890123456789012
1234567890123456789012
See instructions on page 10 . . . . . . . . . . . . . . . . . . . .
Total property values . . . . . . . . . . . . . . . . . . . . . . . . . . .
PAYROLL FACTOR
2 Employees’ wages, salaries, commissions, and other
compensation related to business income included in
the return.
Total payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123456789012345678901234567890121234567890
123456789012345678901234567890121234567890
3 Total percentage (sum of the percentages in column (c)) 123456789012345678901234567890121234567890
123456789012345678901234567890121234567890
4 Average apportionment percentage (1/2 of line 3). 123456789012345678901234567890121234567890
123456789012345678901234567890121234567890
Enter here and on form FTB 3807, Side 1, line 5 . . . . . . .
123456789012345678901234567890121234567890
Note: 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 LAMBRA. Also, those 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 LAMBRA, then the average
apportionment percentage would be computed by dividing line 3 by one instead of by two as normally instructed.

FTB 3807 Booklet 1999 Page 11


Worksheet IV (continued)
Section B Loss Apportionment (For the computation of current year net operating loss)
Use Worksheet IV, Section B, if your business has net losses (a) (b) (c)
from sources within and outside a LAMBRA. Total within and Total within Percentage within a LAMBRA
outside a LAMBRA a LAMBRA 1234567890123456789012
1234567890123456789012
(column (b) ÷ column (a))
PROPERTY FACTOR
1234567890123456789012
1234567890123456789012
1234567890123456789012
1234567890123456789012
1 Average yearly value of owned real and tangible personal 1234567890123456789012
property used in the business (at original cost). See 1234567890123456789012
1234567890123456789012
instructions on page 10. Exclude property not connected 1234567890123456789012
1234567890123456789012
1234567890123456789012
1234567890123456789012
with the business and the value of construction in progress.
1234567890123456789012
1234567890123456789012
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1234567890123456789012
1234567890123456789012
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1234567890123456789012
1234567890123456789012
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . 1234567890123456789012
1234567890123456789012
Furniture and fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1234567890123456789012
1234567890123456789012
Delivery equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1234567890123456789012
1234567890123456789012
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1234567890123456789012
1234567890123456789012
Other tangible assets (attach schedule) . . . . . . . . . . . . . .
1234567890123456789012
1234567890123456789012
1234567890123456789012
1234567890123456789012
Rented property used in the business. 1234567890123456789012
See instructions on page 10 . . . . . . . . . . . . . . . . . . . . 1234567890123456789012
Total property values . . . . . . . . . . . . . . . . . . . . . . . . . . .
PAYROLL FACTOR
2 Employees’ wages, salaries, commissions, and other
compensation related to business income included in
the return.
Total payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123456789012345678901234567890121234567890
123456789012345678901234567890121234567890
3 Total percentage (sum of the percentages in column (c)) 123456789012345678901234567890121234567890
123456789012345678901234567890121234567890
4 Average apportionment percentage (1/2 of line 3). 123456789012345678901234567890121234567890
123456789012345678901234567890121234567890
123456789012345678901234567890121234567890
Enter here and on Worksheet V, Section B, line 4 . . . . . . 123456789012345678901234567890121234567890
Note: 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 LAMBRA. Also, those 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 LAMBRA, then the average
apportionment percentage would be computed by dividing line 3 by one instead of by two as normally instructed.

Page 12 FTB 3807 Booklet 1999


Part V Net Operating Loss the NOL as a deduction against income Only California source business income is
subject to the 1.5% entity-level tax (3.5% for apportioned to the LAMBRA. A taxpayer’s
(NOL) Computation and Loss financial S corporations). The expenses (and LAMBRA business income is its California
Limitations income) giving rise to the loss are also apportioned business income computed using
passed through to the shareholders in the Schedule R, multiplied by the specific
An NOL generated by a business that operates year the loss is incurred. LAMBRA apportionment percentage com-
or invests within a LAMBRA can be carried NOL Carryover Amount — Nonapportioning puted using Worksheet IV, Section A.
forward for 15 years but cannot be carried Corporations That Are Totally Within the The first step is to determine which portion of
back. Financial institutions using the bad debt LAMBRA the taxpayer’s net income is “business
reserve methods may carry over the loss for a For calendar and fiscal year taxpayers with all income” and which portion is “nonbusiness
maximum of five income years. In addition, payroll and property within a LAMBRA, the income,” since only business income may be
up to 100% of the NOL generated in a NOL carryover is determined by computing apportioned to the LAMBRA. See Part IV,
LAMBRA can be carried forward. the business loss that results from business Doing Business Totally Within a LAMBRA,
The business cannot generate NOLs from activity in the LAMBRA. Within and Outside a LAMBRA, or in More
activities within the LAMBRA area until the NOL Carryover Amount — Apportioning Than One LAMBRA, on page 10 for a
first taxable or income year beginning on or Corporations and Nonapportioning complete discussion of business and
after the date the LAMBRA is officially Corporations nonbusiness income.
designated. Accordingly, for the Mare Island If the business is located within and outside Business income or loss reported on
LAMBRA, a LAMBRA NOL cannot be or in more than one LAMBRA, the loss Schedules C, C-EZ, E, and F, and other
generated for taxable or income years amount available for carryover is determined schedules are reported on line 6 through
beginning before January 1, 1999. See by apportioning the total business loss of the line 9. Line 11 and line 12 report business
General Information D, LAMBRA Designation, corporation to the LAMBRA pursuant to the gains or losses reported on Schedule D and
for LAMBRA designation dates. provisions of R&TC Chapter 17 (commencing Schedule D-1. All business income and losses
Limitation. A LAMBRA NOL deduction can with Section 25101) with certain modifica- should be adjusted for any differences
offset only business income attributable to tions to the apportioning factors. The between California and federal amounts as
operations within the LAMBRA. apportionment factors include the property shown on the Schedule CA (540 or 540NR).
Election. Taxpayers must elect and designate and payroll factors, and compare the LAMBRA Loss Computation (Use to compute NOL for
the carryover category (general or specific, property and payroll to total property and Worksheet V, Section A)
enterprise zone, LAMBRA, or TTA NOL) on the payroll. This apportionment factor calculation
is done on Worksheet IV, Section B. The loss Line 6 – Line 9: If your business operation
original return for the year of a loss and file reported on Schedule C, C-EZ, E, or F, or
form FTB 3807 for each year in which a carryover is deducted against income
apportioned by each business to the LAMBRA other schedule is entirely within the LAMBRA,
LAMBRA NOL deduction is being taken. The enter the income or loss from this activity in
election is irrevocable. in subsequent years. This calculation is done
on Worksheet V, Section C. column (a), and enter 1.00 in column (b).
Note: If you elect the LAMBRA NOL deduc- Line 11 and Line 12: If the gain or loss
tion, you are prohibited by law from carrying Corporations that are members of a unitary
group filing a combined report must sepa- reported on Schedule D or Schedule D-1 (as
over any other type of NOL from this year. adjusted on Schedule CA (540 or 540NR))
rately compute the loss carryover for each
To determine which type of NOL will provide corporation in the group (R&TC was attributed to an asset used in an activity
the greater benefit, taxpayers that have Section 25108) using their individual conducted entirely within the LAMBRA, enter
general or specific, enterprise zone, LAMBRA, apportionment factors. Unlike the NOL the gain or loss reported in column (a) and
or TTA NOLs or that may qualify for the treatment on a federal consolidated return, a enter 1.00 in column (b).
special NOL treatment should estimate future loss carryover for one member included in a Line 6 – Line 9: If your business operation
income and complete Worksheet V and the combined report may not be applied to the reported on Schedule C, C-EZ, E, or F, or
following forms or worksheets if applicable: intrastate apportioned income of another other schedule is within and outside the
• FTB 3805V, Net Operating Loss (NOL) member included in a combined report. LAMBRA, enter the income or loss from this
Computation and NOL and Disaster Loss For water’s-edge purposes, each corporation’s activity in column (a). To determine the
Limitations — Individuals, Estates and NOL carryover is limited to the amount percentage figure in column (b), complete
Trusts; determined by recomputing the income and Worksheet IV, Section B. Enter the figure on
• FTB 3805Q, Net Operating Loss (NOL) factors of the original worldwide combined Worksheet IV, Section B, line 4, in column (b)
Computation and NOL and Disaster Loss reporting group as if the water’s-edge election of this worksheet.
Limitations — Corporations; had been in force for the year of the loss. The Line 11 and Line 12: If the gain or loss
• FTB 3805Z, Enterprise Zone Business NOL carryover may not be increased as a reported on Schedule D or Schedule D-1 (as
Booklet, Worksheet VI; or result of the recomputation. adjusted on Schedule CA (540 or 540NR))
• FTB 3809, Targeted Tax Area Business was attributed to an asset used in an activity
Booklet, Worksheet V. Instructions for Income or Loss conducted within and outside the LAMBRA,
Alternative Minimum Tax. Taxpayers claiming enter the gain or loss reported in column (a).
a LAMBRA NOL deduction must determine
Worksheet To determine the percentage figure in
their NOL for alternative minimum tax (AMT) Use the Income or Loss Worksheet on column (b), complete Worksheet IV,
purposes. Use Schedule P (100, 540, 540NR, page 15 to determine the amount to enter on: Section B. Enter the figure on Worksheet IV,
or 541) to compute the NOL for AMT Section B, line 4, in column (b) of this
purposes. • Worksheet V, Section A, line 1; worksheet.
• Worksheet V, Section C, line 1 and line 6
S Corporations. LAMBRA NOLs incurred (Form 540 and Form 540NR filers); and Income Computation (Use to compute
prior to becoming an S corporation cannot be • Worksheet VI, Part I, line 1 and line 3. LAMBRA income for Worksheet V, Section C
used against S corporation income. See IRC and Worksheet VI)
Section 1371(b). Do not include disaster losses in any amounts
used in the table. Line 6 – Line 9: If your business operation
However, an S corporation is allowed to reported on Schedule C, C-EZ, E, or F, or
deduct a LAMBRA NOL incurred after the “S” other schedule is entirely within the LAMBRA,
election is made. An S corporation may use

FTB 3807 Booklet 1999 Page 13


enter the income or loss from this activity in business income for purposes of the LAMBRA Part III Taxpayer’s Trade or
column (a), and enter 1.00 in column (b). calculation, they must also complete a
Line 11 and Line 12: If the gain or loss Schedule R. Business
reported on Schedule D or Schedule D-1 (as Line 11 and Line 12: If the gain or loss Business Income or Loss
adjusted on Schedule CA (540 or 540NR)) reported on Schedule D or Schedule D-1 (as Use business income or loss from Form 1040
was attributed to an asset used in an activity adjusted on Schedule CA (540 or 540NR)) Schedules C, C-EZ, E, and F, plus California
conducted entirely within the LAMBRA, enter was attributed to an asset used in an activity adjustments from Schedule CA (540 or
the gain or loss reported in column (a) and conducted within and outside a LAMBRA and 540NR) for each trade or business. Also
enter 1.00 in column (b). California, get Schedule R and complete include business capital gains and losses
Schedule R-1. Multiply the gain or loss from Schedule D and business gains and
Line 6 – Line 9: If your business operation losses from Schedule D-1.
reported on Schedule C, C-EZ, E, or F, or reported by the percentage on Schedule R-1,
other schedule is entirely within California, line 4 and enter the result in column (a). To Line 14 – If you are computing the LAMBRA
enter the income or loss from this activity in determine the percentage figure in NOL and the result on the Income or Loss
column (a). To determine the percentage column (b), complete Worksheet IV, Worksheet, line 14, column (c) is a negative
figure in column (b), complete Worksheet IV, Section A. Enter the figure on Worksheet IV, amount, enter this amount on Worksheet V,
Section A. Enter the figure on Worksheet IV, Section A, line 4, in column (b) of this Section A, line 1. Note: If the amount is
Section A, line 4, in column (b) of this worksheet. positive, you do not have a LAMBRA NOL.
worksheet. If you are computing the LAMBRA business
Line 11 and Line 12: If the gain or loss
Part I Individual Income and income and the result on the Income or Loss
reported on Schedule D or Schedule D-1 (as Expense Items Worksheet, line 14, column (c) is a positive
adjusted on Schedule CA (540 or 540NR)) Wages amount and:
was attributed to an asset used in an activity Taxpayers with wages from a company • You have LAMBRA NOL carryovers, enter
conducted entirely within California, enter the located within and outside a LAMBRA must the amount on Worksheet V, Section C,
gain or loss reported in column (a). To determine the LAMBRA wage income by line 1 and line 6 (skip line 2 through
determine the percentage figure in entering the percentage of their time (during line 5). Also enter the amount from the
column (b), complete Worksheet IV, the period for which the wages entered on Income or Loss Worksheet, line 14,
Section A. Enter the figure on Worksheet IV, line 1 were earned) that they worked within column (c) on Worksheet VI, Part I, line 1
Section A, line 4, in column (b) of this the LAMBRA. This percentage must be and line 3 (skip line 2) if you have
worksheet. determined based on their record of time and LAMBRA credits; or
Line 6 – Line 9: If your business operation events such as a travel log or entries in a daily • You do not have LAMBRA NOL carryovers
reported on Schedule C, C-EZ, E, or F, or planner. but you do have LAMBRA credits or credit
other schedule is within and outside the carryovers, enter the amount on
LAMBRA and California, get Schedule R and Part II Pass-Through Income or Worksheet VI, Part I, line 1 and line 3 (skip
line 2).
complete line 1 through line 13b. Enter the Loss
figure on Schedule R, line 13b in column (a) Note: If the amount is negative, you do not
Multiple Pass-Through Entities
of this worksheet. To determine the percent- have any business income attributable to the
If you are a shareholder, beneficiary, partner,
age figure in column (b), complete LAMBRA and you cannot utilize any LAMBRA
or member in multiple pass-through entities
Worksheet IV, Section A. Enter the figure on NOL carryover, credit(s), or credit
with businesses located within and outside a
Worksheet IV, Section A, line 4, in column (b) carryover(s) in the current taxable or income
LAMBRA from which you received LAMBRA
of this worksheet. Note: When computing year.
tax incentives, see the example below for
Schedule R, disregard any reference to
computing business income in the LAMBRA.
Form 100, Form 565, or Form 568. Also
disregard any reference to Schedule R-3, Example:
Trade or
Schedule R-4, or Schedule R-5, and skip business
line 11. income
from
Nonresidents who have an apportioning Schedule K-1 Entity’s LAMBRA LAMBRA
Pass-through (100S, 541, apportionment apportioned
business that operates within the LAMBRA entity 565, or 568) percentage income
should have already computed Schedule R, ABC, Inc. $40,000 80% $32,000
and can use those amounts when that A, B & C 30,000 10% 3,000
schedule is referenced. Residents who have ABC, LLC 10,000 50% 5,000
$40,000
an apportioning business will not have
completed a Schedule R for California income
tax purposes since they are taxed on income
from all sources. However, in order for
residents to determine their California source

Page 14 FTB 3807 Booklet 1999


Income or Loss Worksheet — LAMBRA
Part I Individual Income and Expense Items. See instructions.
(a) (b) (c)
Amount % of time providing services in Apportioned amount
the LAMBRA (a) x (b)

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

2 Employee business expenses . . . . . . .

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

Part II Pass-Through Income or Loss. See instructions


(a) (b)
Name of entity Distributive or pro-rata share of business income or loss apportioned
to the LAMBRA from Schedule K-1 (100S, 541, 565, or 568)
including capital gains and losses

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

Part III Taxpayer’s Trade or Business. See instructions.


(a) (b) (c)
Business income or loss Apportionment % Apportioned income or loss
for the LAMBRA (a) x (b)

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

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

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

9 Other business income or loss . . . . . .

10 Subtotal: Enter the total of line 6 through line 9, column (c) in column (c), this line . . . . . . . . . . . . . . . . . . . .
(a) (b) (c)
Business gain Apportionment % Apportioned gain or loss
or loss for the LAMBRA (a) x (b)

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

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

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

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

FTB 3807 Booklet 1999 Page 15


Instructions for Worksheet V Section C – Computation of Line 8 – Line 10 – Enter the amounts on
line 8 through line 10 as positive numbers.
— NOL Computation and Loss NOL Carryover and Carryover In column (c), enter the smaller of the amount
Limitations Limitations — Individuals, in column (b) or the amount in column (d)
Individuals and exempt trusts with a current Exempt Trusts, and from the previous line.
year loss complete Section A. Corporations Corporations In column (d), enter the result of subtracting
with a current year loss complete Section B. column (c) from the balance on the previous
Use this section to compute the LAMBRA NOL line in column (d).
Individuals, exempt trusts, and corporations deduction for individuals, exempt trusts, and
with current year income and a prior year corporations. The LAMBRA NOL deduction is In column (e), enter the result of subtracting
LAMBRA NOL carryover complete Section C. used to reduce current year income from the the amount in column (c) from the amount in
LAMBRA. column (b), as applicable.
Section A – Computation of Example:
Line 1 – See Part IV for a complete discus-
Current Year NOL — Individuals sion of business and nonbusiness income. (b) Carry- (c) Amount (d) Balance (e) LAMBRA
and Exempt Trusts Note to Form 540 and Form 540NR filers: Be over from
prior year
deducted
this year
available to NOL
offset losses carryover
Use this section to compute the LAMBRA NOL sure to include casualty losses, disaster
$5,000
to be carried over to future years by individu- losses, and any business deductions reported
als and exempt trusts. Complete Section A on Schedule A as itemized deductions. $ 500 $ 500 4,500 $ 0

only if you have a current year loss. Exception: If you elected to carry back part or Line 11 – Enter the amount of your current
all of your current year disaster loss under year NOL in column (e). For individuals and
You must complete form FTB 3805V, Net IRC Section 165(i)(1), do not include the
Operating Loss (NOL) Computation and NOL exempt trusts, enter the amount from
amount of loss that was carried back in your Section A, line 7. For corporations, enter the
and Disaster Loss Limitations — Individuals, current year business income for the
Estates and Trusts, before you can compute amount from Section B, line 7.
LAMBRA.
the allowable LAMBRA loss. Line 12 – Total the amounts in column (b),
Line 2 – In modifying your income, deduct column (c), and column (e). Enter the totals
To compute the LAMBRA NOL, separate your capital losses only up to your capital
business income and deductions from from column (b), column (c), and column (e)
gains. Enter as a positive number any net on form FTB 3807, Side 1, line 4a, line 4b,
nonbusiness income and deductions. See capital losses included in line 1.
Part IV for a complete discussion of business and line 4c, accordingly.
and nonbusiness income. Line 3 – Corporations must reduce income by Your LAMBRA NOL deduction for 1999 is the
the disaster loss deduction and the deduction total of column (c). Enter this amount on your
Section B – Computation of for excess net passive income. California tax return or schedule as follows:
Current Year NOL — Line 6 – This is your modified taxable income • Form 100, line 20;
(MTI). Reduce this amount by your LAMBRA • Form 100S, line 19;
Corporations NOL deduction. The LAMBRA NOL deduction • Form 109, line 3 or line 11;
Use this section to compute the LAMBRA NOL may not be larger than your MTI. If your MTI • Schedule CA (540), line 21e, column B; or
to be carried over to future years for corpora- is a loss in the current year or if it limits the • Schedule CA (540NR), line 21e, column B.
tions. Complete Section B only if the amount of NOL you may use this year, you
corporation has a current year loss. must carry over the NOL to future years.
You must complete form FTB 3805Q, Net Line 7 – Enter the amount from line 6 in
Operating Loss (NOL) Computation and NOL column (d). If this amount is zero or negative,
and Disaster Loss Limitations — Corpora- transfer the amounts from line 8 through
tions, before you can compute the allowable line 10, column (b) to column (e). Go to
LAMBRA loss. line 10.

Worksheet V Net Operating Loss (NOL) — LAMBRA


Section A Computation of Current Year Net Operating Loss — Individuals and Exempt Trusts
1 Net trade or business loss from all sources. Individuals: Enter the total from the Income or Loss Worksheet, line 14,
column (c) (page 15) as a positive number. For purposes of this worksheet section, do not include any 1999 losses
or disaster loss carryovers in line 1. See instructions for definition of business income (page 10).
Exempt trusts: Enter the amount from Form 109, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Business capital losses included in line 1. Enter as a positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Business capital gains included in line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 If line 2 is greater than line 3, enter the difference as a positive number; otherwise enter -0- . . . . . . . . . . . . . . . . . . . 4
5 Subtract line 4 from line 1. If the result is zero or less, do not complete the rest of this section. You do not have a
current year NOL from a LAMBRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Enter the amount from form FTB 3805V, Part I, Section A, line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Enter the smaller of line 5 or line 6 here and in Section C, line 11, column (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
This is the LAMBRA NOL carryover from 1999 to 2000.

Page 16 FTB 3807 Booklet 1999


Worksheet V (continued)
Section B Computation of Current Year Net Operating Loss — Corporations
Note: If you have a LAMBRA NOL and a prior year general NOL, see instructions on page 13.
During the year the corporation incurred the NOL, the corporation was a: 첸 C corporation 첸 S corporation 첸 Exempt corporation
1 Net loss for state purposes from Form 100, line 17; Form 100S, combined amounts of line 15 and line 17; or
Form 109, line 1. Enter as a positive number. Note: Apportioning corporations, enter the amount from
Schedule R, line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 a 1999 disaster relief loss included in line 1. Enter as a positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a
b Nonbusiness income included in line 1. Enter as a negative number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b
c Nonbusiness losses included in line 1. Enter as a positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c
d Combine line 2a through line 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d
3 Subtract line 2d from line 1. If zero or less, do not complete the rest of this section; the corporation does not have
a current year NOL from a LAMBRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Enter the average apportionment percentage from Worksheet IV, Section B, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Multiply line 3 by line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Enter the amount from form FTB 3805Q, Part I, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Enter the smaller of line 5 or line 6 here and in Section C, line 11, column (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
This is the LAMBRA NOL carryover from 1999 to 2000.

Section C NOL Carryover and Carryover Limitations — Individuals, Exempt Trusts, and Corporations. See instructions. 1234567890123456789012
1234567890123456789012
1 Enter the amount from Form 100, line 17; Form 100S, combined amounts of line 15 and 1234567890123456789012
1234567890123456789012
line 17; or Form 109, line 1 or line 10. Form 540 and Form 540NR filers, enter the total
1234567890123456789012
1234567890123456789012
1234567890123456789012
1234567890123456789012
from the Income or Loss Worksheet, line 14, column (c) (page 15) on line 1 and line 6 1234567890123456789012
(skip line 2 through line 5). See instructions. Note: Apportioning corporations, enter the 1234567890123456789012
1234567890123456789012
amount from Schedule R, line 13b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1234567890123456789012
1234567890123456789012
1234567890123456789012
1234567890123456789012
2 a Form 100, Form 100S, and Form 109 filers: Enter any nonbusiness income included
1234567890123456789012
1234567890123456789012
in line 1 as a negative number. Form 540 and Form 540NR filers leave blank . . . . . . 2a 1234567890123456789012
1234567890123456789012
b Form 100, Form 100S, and Form 109 filers: Enter any nonbusiness losses included 1234567890123456789012
1234567890123456789012
in line 1 as a positive number. Form 540 and Form 540NR filers leave blank . . . . . . 2b 1234567890123456789012
1234567890123456789012
c Combine line 2a and line 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c 1234567890123456789012
1234567890123456789012
3 Form 100 filers: Enter the amount from Form 100, line 21. Form 100S filers: Enter the 1234567890123456789012
1234567890123456789012
total of the amounts from Form 100S, line 17 and line 20. Form 540, Form 540NR, 1234567890123456789012
1234567890123456789012
1234567890123456789012
1234567890123456789012
and Form 109 filers: Enter -0-. Enter this amount as a negative number . . . . . . . . . . . . 3
1234567890123456789012
1234567890123456789012
4 Combine line 1, line 2c, and line 3. If zero or less, enter -0- on line 6 . . . . . . . . . . . . . . . 4 1234567890123456789012
5 Enter the average apportionment percentage from Worksheet IV, Section A, line 4 . . . . 5 1234567890123456789012
1234567890123456789012
6 Modified taxable income. Multiply line 4 by line 5. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

(a) (b) (c) (d) (e)


Description Carryover from Amount deducted Balance available to LAMBRA NOL carryover
123456789012345678901234567890121234
prior year this year
123456789012345678901234567890121234
offset losses 123456789012345678
123456789012345678
7 Modified taxable income from line 6. 123456789012345678901234567890121234
123456789012345678901234567890121234 123456789012345678
123456789012345678
123456789012345678901234567890121234
See instructions . . . . . . . . . . . . . . . . . . . . 123456789012345678901234567890121234 123456789012345678
123456789012345678
8 LAMBRA NOL carryover
beginning in 1996. See instructions . . . . .
9 LAMBRA NOL carryover
beginning in 1997. See instructions . . . . .
10 LAMBRA NOL carryover
beginning in 1998. See instructions . . . . . 123456789012345678901234567890121234
123456789012345678901234567890121234
11 LAMBRA NOL carryover 123456789012345678901234567890121234
123456789012345678901234567890121234
beginning in 1999. See instructions . . . . . 123456789012345678901234567890121234
1234567890123456789012345678901212341123456789012345678
23456789012345678
12 Total the amounts in column (b), column (c), 123456789012345678
123456789012345678
and column (e). See instructions . . . . . . . 123456789012345678

FTB 3807 Booklet 1999 Page 17


Part VI Computation of Credit Carryover. If the amount of credit available If you do not have a current year NOL or any
this year exceeds your tax, you may carry over NOL carryovers:
Limitations any excess credit to future years until • Individuals: Go to the Income or Loss
Credit Limitations. The amount of credit you exhausted. Apply the carryover to the earliest Worksheet (page 15). Follow the
can claim on your California tax return is taxable or income year(s) possible. In no worksheet instructions. Enter the amount
limited by the amount of tax attributable to event can the credit be carried back and from the Income or Loss Worksheet,
LAMBRA income. Use Worksheet VI on form applied against a prior year’s tax. line 14, column (c) on Worksheet VI,
FTB 3807, Side 2 to compute this limitation. For S corporations, the amount of the 1/3 Part I, line 1 and line 3 (skip line 2).
If a taxpayer owns an interest in a disregarded credit that is in excess of the 1.5% entity-level • Corporations: Follow the instructions for
business entity, the amount of credit that can tax (3.5% for financial S corporations) in the line 1 below.
be utilized is limited to the difference between current year may also be carried forward and Line 1 – Enter all trade or business income.
the taxpayer's regular tax computed with the used in future years to offset the 1.5% entity- See Part IV (page 10) for the definition of
income of the disregarded entity, and the level tax (3.5% for S corporations). See the trade or business income.
taxpayer's regular tax computed without the instructions for Worksheet VI, Part III for
more information. Line 2 – If your business is located entirely
income of the disregarded entity. within the LAMBRA, enter 1.
Partnerships must allocate the credit among Credit Code Number. You must use credit
code number 198 to claim the LAMBRA hiring Specifically, this percentage is the apportion-
the partners according to the partner's ment percentage computed by the entity using
distributive share as determined in a written and sales or use tax credits. Using an
incorrect code number may cause a delay in Worksheet IV (page 11) and it represents the
partnership agreement (R&TC percentage of the entity’s business attribut-
Section 17039(e)). allowing the credit(s).
able to the LAMBRA.
Credits you are otherwise eligible to claim Instructions for Worksheet VI Line 6a – Compute the tax as if the LAMBRA
may be limited. Do not apply credits against taxable income represented all of your taxable
the minimum franchise tax (corporations, — Computation of Credit income.
limited partnerships, limited liability partner- Limitations Individuals: Use the tax table or tax rate
ships, S corporations, and LLCs), the
Note: Worksheet VI is on Side 2 of form schedule in your tax booklet for your filing
alternative minimum tax (corporations,
FTB 3807. status. Exempt organizations: Use the
exempt organizations, individuals, and
applicable tax rate in your tax booklet.
fiduciaries), the built-in gains tax (S corpora- Partnerships and LLCs taxed as partnerships Corporations and S corporations: Use the
tions), or the excess net passive income tax do not complete Worksheet VI. The partners applicable tax rate.
(S corporations). and members of these types of entities should
complete Worksheet VI in order to determine Example (Determination of LAMBRA Income
Refer to the credit instructions in your tax
the amount of LAMBRA credits that they may for Shareholders, Partners, or Members of
booklet for more information.
claim on their California tax returns. Pass-Through Entities):
S Corporations and the Application of
S corporations and their shareholders must John Smith is vice president of ABC, Inc., an
LAMBRA Credits. An S corporation may use
complete Worksheet VI. S corporation that has two locations: one
its LAMBRA credits to reduce LAMBRA tax
Reporting Requirements of S Corporations, within the LAMBRA and one outside the
both at the corporate and shareholder levels.
Estates or Trusts, Partnerships, and LLCs LAMBRA. Eighty percent (80%) of the
An S corporation may use 1/3 of the LAMBRA
Taxed as Partnerships S corporation’s business is attributable to the
credits to reduce the tax on the
LAMBRA. (Note: This percentage was
S corporation’s LAMBRA income. In addition, • Report to shareholders, beneficiaries, determined by ABC, Inc. using form
S corporation shareholders may claim their partners, and members, the distributive or FTB 3807, Worksheet IV — Apportionment,
pro-rata share of the entire amount of the pro-rata share of business income, loss, when ABC’s California S corporation return
LAMBRA credits calculated under the and deductions apportioned to the (Form 100S) was prepared.) John divides his
Personal Income Tax Law. LAMBRA; and time equally (50%/50%) between the two
Example: In 1999, an S corporation qualified • Separately state the distributive or pro-rata offices of ABC, Inc.
for a $3,000 LAMBRA hiring credit. The share of any business capital gains and
losses apportioned to the LAMBRA Mary Smith (John’s spouse) works for ABC,
S corporation will be able to use 1/3 of the
included in the amount above. Inc. at its office located within the LAMBRA.
credit ($3,000 X 1/3 = $1,000) to offset the
tax on the corporation’s LAMBRA income. The S corporations: Complete Part I and Part III John and Mary Smith have the following 1999
S corporation will also pass through a $3,000 of this worksheet if your entity-level tax before items of California income and expense:
credit to its shareholders to offset their credits is more than the minimum franchise John’s salary from ABC, Inc. . . . . . $100,000
individual tax (computed under the Personal tax. Mary’s salary from ABC, Inc. . . . . . . . 75,000
Income Tax Law) on LAMBRA income. Interest on savings account . . . . . . . . . 1,000
Corporations and S corporations subject to
S corporations should attach form FTB 3807 the minimum franchise tax only: Complete Dividends . . . . . . . . . . . . . . . . . . . . . . . 3,000
to Form 100S, California S Corporation only Part IV of this worksheet. Schedule K-1 (100S) from ABC, Inc.:
Franchise or Income Tax Return, to claim the Ordinary income . . . . . . . . . . . . . . . 40,000
All others: Complete Part I and Part II of this LAMBRA business expense
tax credits. If form FTB 3807 is not attached
worksheet. deduction . . . . . . . . . . . . . . . . . (5,000)*
to the return, the credits may be disallowed.
Shareholders should attach Schedule(s) K-1 Part I John’s unreimbursed employee
(100S), Shareholder’s Share of Income, De- Note: For filers with NOLs or NOL carryovers. expenses from Schedule A . . . . . . . (2,000)
ductions, Credits, etc., to their individual tax • Complete Worksheet V (pages 16 and 17) *The LAMBRA business expense deduction is
return. first if you have a current year NOL or an a separately stated item on Schedule K-1
NOL carryover. (100S), line 8.
• Then complete Worksheet VI if you have
any LAMBRA credits.

Page 18 FTB 3807 Booklet 1999


The Smith’s LAMBRA income (total amount to Line 8A, column (e) – Enter the amount from Line 9A, column (e) – Subtract the amount
be reported on line 3) is computed as follows: line 7. This is the amount of limitation based on line 8B, column (e) from the amount on
John’s LAMBRA salary on the tax on LAMBRA business income. line 8A, column (e). If the result is zero, your
($100,000 x 50%) . . . . . . . . . . . . . $50,000 Line 8A, column (f) – Enter the amount of remaining credits are limited and must be
Mary’s LAMBRA salary credit that is used on Schedule P (100, 540, carried over to future years. In this case, enter
($75,000 x 100%) . . . . . . . . . . . . . . 75,000 540NR, or 541), column (b). The amount the amount from line 9B, column (d) on
Pass-through ordinary income from cannot be greater than the amount on line 8A, line 9B, column (g).
ABC, Inc. ($40,000 x 80%) . . . . . . . 32,000 column (e) or the amount computed on Line 9A, column (f) – Enter the amount of
LAMBRA business expense line 8B, column (d). Enter this amount on credit that is used on Schedule P (100, 540,
deduction from ABC, Inc. . . . . . . . . (5,000) form FTB 3807, Side 1, line 2a. 540NR, or 541), column (b). The amount
John’s unreimbursed employee Line 8B, column (b) – Enter the amount of cannot be greater than the amount on line 9A,
business expenses the current year credit that was computed on column (e) or the amount computed on
(2,000 x 50%) . . . . . . . . . . . . . . . . (1,000) Worksheet I, Section A, line 6. line 9B, column (d). Enter this amount on
Total LAMBRA income form FTB 3807, Side 1, line 2b.
(Worksheet VI, Part I, line 3) . . . $151,000 Line 8B, column (c) – Enter the amount of
the total prior year carryover of the credit. Line 9B, column (b) – Enter the amount of
Note: The standard deduction and personal or This is the amount of credit that was the current year credit that was computed on
dependency exemptions are not included in previously figured on Worksheet I, Section A Worksheet II, Section A, line 2, column (c).
the computation of LAMBRA income since in the prior year, minus the amount that was Line 9B, column (c) – Enter the amount of
they are not related to trade or business allowed to be taken on the prior year return. the total prior year carryover of the credit.
activities. This is the amount of credit that was
Line 8B, column (d) – Add the amount of the
John and Mary must compute the tax (to be current year credit on line 8B, column (b) and previously figured on Worksheet II, Section A
entered on Worksheet VI, Part I, line 6a) on the amount of the total prior year carryover on minus the amount that was allowed to be
the total LAMBRA income of $151,000 (as if it line 8B, column (c). taken on the prior year return.
represents all of their income). Using the tax Line 9B, column (d) – Add the amount of the
rate schedule in their tax booklet for filing Line 8B, column (e) – Compare the amounts
on line 8A, column (e) and line 8A, current year credit on line 9B, column (b) and
status married filing joint, the 1999 tax the amount of the total prior year carryover on
figured on $151,000 is $10,659. column (f). Enter the smaller amount.
line 9B, column (c).
Line 6b – Corporations and S corporations: Line 8B, column (g) – Subtract the amount
on line 8B, column (e) from the amount on Line 9B, column (e) – Compare the amounts
If the amount on line 6b is the minimum on line 9A, column (e) and line 9A,
franchise tax ($800), you cannot use your line 8B, column (d). Enter the result on
line 8B, column (g). This is the amount of column (f). Enter the smaller amount.
LAMBRA credits this year. You should
complete Part IV of the worksheet to figure credit that can be carried over to future years. Line 9B, column (g) – Subtract the amount
the amount of credit carryover. Note: This carryover includes both the on line 9B, column (e) from the amount on
Schedule P (100, 540, 540NR, or 541) line 9B, column (d). Enter the result on
Part II limitation and the limitation based on line 9B, column (g). This is the amount of
Use Part II if you are a corporation, individual, LAMBRA business income. credit that can be carried over to future years.
estate, or trust. Note: This carryover includes both the
Schedule P (100, 540, 540NR, or 541)
Corporations and S corporations that are limitation and the limitation based on
subject to paying only the minimum franchise LAMBRA business income.
tax, go to Part IV.

Example: Part II
The ABC Business has $8,000 of tax. The business computed a credit limitation based on LAMBRA business income of $7,000
on Worksheet VI, line 5. The business has the following credits:
Hiring credit — $500
Sales or use tax credit — $9,000
Worksheet VI, Part II would be computed as follows:

Part II Limitation of Credits for Corporations, Individuals, and Estates and Trusts.
(a) (b) (c) (d) (e) (f) (g)
Credit Credit Total Total credit Limitation Used on Schedule P Carryover
name amount prior year (add col. (b) based on LAMBRA (can never be greater (col. (d) minus
carryover and col. (c)) business income than col. (d) or col. (e)) col. (e))
12345678901234567890123456789012123
12345678901234567890123456789012123 123456789012345678
123456789012345678
12345678901234567890123456789012123 123456789012345678
A 12345678901234567890123456789012123
12345678901234567890123456789012123 7,000 800 123456789012345678
12345678901234567
123456789012345678
8 Hiring credit 12345678901234567
12345678901234567
B 500 –0– 500 500 12345678901234567
12345678901234567 –0–
12345678901234567890123456789012123
12345678901234567890123456789012123 123456789012345671123456789012345678
23456789012345678
12345678901234567890123456789012123 123456789012345678
9 Sales or use A 12345678901234567890123456789012123
12345678901234567890123456789012123 6,500 6,500 123456789012345678
12345678901234567
123456789012345678
12345678901234567
12345678901234567
tax credit 12345678901234567
B 9,000 –0– 9,000 6,500 12345678901234567
12345678901234567 2,500

FTB 3807 Booklet 1999 Page 19


Part III Line 12 and Line 13, column (c) – Enter the If your business does not have a net increase
Use Part III only if you are an S corporation. amount of the total prior year carryover. in jobs for the first 2 taxable or income years
These are the amounts of credits that were after designation, you must recapture (in the
Line 10 and Line 11, column (b) – Enter the
previously figured on Worksheet I and current year) any LAMBRA credits or
amount of current year credits (that were
Worksheet II in the prior years, minus the deductions that were taken.
computed on Worksheet I and Worksheet II)
amount that was allowed to be taken on the Example – In 1999, you employed:
in column (b) for line 10 and line 11, as
prior year return. S corporations may only
applicable. Also enter this amount on 5 employees who were paid by the hour
enter 1/3 of the amounts from Worksheet I
Form 100S: and who worked 2,000 hours each;
and Worksheet II.
• Schedule C, line 4; and 1 employee who was paid by the hour and
Line 12 and Line 13, column (d) – Add the
• Schedule K, line 13. who worked 1,000 hours;
amounts in column (b) and column (c) for
You must adjust your Schedule C (100S) to line 12 and line 13. These are the amounts of 2 employees who were paid by the hour
reflect the LAMBRA tax limitation (Part I, credits that can be carried over to future and who worked 2,150 hours each;
line 7) to your credits after completing this years. 1 salaried employee who worked for
worksheet. 12 months; and
Line 10 and Line 11, column (c) – Multiply Instructions for Form FTB 3807 2 salaried employees who worked for
the amount on line 10, column (b) and 8 months each.
line 11, column (b) each by 1/3. Enter the Part I — Net Increase in Jobs
result in column (c). The amounts in How many full-time employees does the
column (c) are the maximum amounts of the Complete line 1 on form FTB 3807, Part I, Net business employ?
current year credits that may be used by the Increase in Jobs, only if you have been doing 5 x 2,000 = 10,000
S corporation to offset its 1.5% entity-level business in a LAMBRA for two years. Use the
Net Jobs Worksheet on the following page to 1 x 1,000 = 1,000
tax (3.5% for financial S corporations).
determine the amount to enter on line 1. 2 x 2,000* = 4,000
Line 10 and Line 11, column (d) – Enter the
amount of the total prior year credit carryover. A taxpayer that conducts a trade or business 15,000 hours
This is the amount of credit that was within a LAMBRA and that for the first 2,000 = 7.50 full-time
previously figured on the prior year Work- 2 taxable or income years, has a net increase hourly employees
sheet I or Worksheet II, minus the amount in jobs (defined as 2,000 paid hours per *The 150 hours that these 2 employees each
that was allowed to be taken on the prior year employee per year) of one or more employees worked over 2,000 cannot be included in the
return. in the LAMBRA, may claim certain economic computation.
incentives.
Line 10 and Line 11, column (e) – Add the Salaried
amounts of the current year credits in The net increase in jobs is determined by employee 1 12 months
column (c) and the total prior year carryovers subtracting the total number of full-time
employees in California prior to starting Salaried
in column (d). employee 2 8 months
business in the LAMBRA, from the number of
Line 10 and Line 11, column (f) – Enter the full-time employees in California in the second Salaried
amount of credit that was used by the year after operation in the LAMBRA. For this employee 3 8 months
S corporation in the current year to offset its purpose, the number of full-time employees 28 months
1.5% entity-level tax (3.5% for financial for each year is determined as: 12 = 2.33 salaried
S corporations). Enter the amount in employees
column (f) for line 10 and line 11 on form • The total number of hours worked by
hourly employees (not to exceed 2,000 For purposes of computing the net jobs
FTB 3807, Side 1, line 2a and line 2b, as
hours per employee) divided by 2,000; and increase requirement, you would have 9.83
applicable.
• The total number of months worked in the (7.50 + 2.33) full-time employees.
Line 10 and Line 11, column (g) – Subtract LAMBRA by salaried employees divided Use the worksheet on the following page to
the amount in column (f) for each line from by 12. determine the amounts to enter on form
the amounts in column (e). These are the
If your only business in California began with FTB 3807, Part I. See the example following
amounts of credits that can be carried over to
your LAMBRA business, your number of the worksheet for how to complete the
future years and used by the S corporation.
California employees prior to starting worksheet.
Part IV business in the LAMBRA is zero.
Use Part IV if you are a corporation or If your business in the LAMBRA began during
S corporation subject to paying only the the taxable or income year, the first year
minimum franchise tax. employment information is prorated. Multiply
Line 12 and Line 13, column (b) – Enter the the divisors 2,000 (hours for hourly employ-
amount of current year credits (that were ees) and 12 (months for salaried employees)
computed on Worksheet I and Worksheet II) by a fraction, the numerator is the number of
on line 12, column (b) and line 13, months of doing business and the denomina-
column (b), as applicable. S corporations tor is 12.
may only enter 1/3 of the amounts from
Worksheet I and Worksheet II.

Page 20 FTB 3807 Booklet 1999


Net Jobs Worksheet
(a) (b)
Taxable/income year 2nd taxable/income year
prior to operating in after starting operations
the LAMBRA in the LAMBRA

Taxable or income year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ________________ ________________

1 Enter the total number of hours worked by hourly employees during the
taxable/income year in column (a) and column (b). The total hours per
employee cannot exceed 2,000. If your only business in California
began with your LAMBRA business, enter zero in column (a) of line 1 . . . . ________________ ________________

2 Divide line 1 of each column by 2,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ________________ ________________

3 Enter the total number of months worked by salaried employees.


The total months per salaried employee cannot exceed 12 . . . . . . . . . . . . . ________________ ________________

4 Divide line 3 of each column by 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ________________ ________________

5 Add line 2 and line 4 of each column . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ________________ ________________


Enter the amount on line 5, column (a) on form FTB 3807,
Part I, line 1b. Enter the amount on line 5, column (b) on form
FTB 3807, Part I, line 1a.

Example:
A corporation employs four individuals prior to establishing operations in the LAMBRA. The following is the employment information for the
employees for the income year prior to operating in the LAMBRA:
• Employee #1: Salaried; employed for 12 months.
• Employee #2: Hourly, full-time; worked 2,080 hours per year.
• Employee #3: Hourly, part-time; worked 1,500 hours per year.
• Employee #4: Hourly, part-time; worked 1,500 hours per year.
At the end of the 2nd year of operation in the LAMBRA, the corporation employed the following individuals:
• Employee #1: Salaried; employed 36 months.
• Employee #2: Hourly, full-time; worked 2,080 hours per year.
• Employee #3: Hourly, part-time; worked 1,700 hours per year.
• Employee #4: Hourly, part-time; worked 1,700 hours per year.
• Employee #5: Hourly, part-time; worked 1,700 hours per year.
The worksheet above would be completed as follows:

Net Jobs Worksheet – Example (a) (b)


Taxable/income year 2nd taxable/income year
prior to operating in after starting operations
the LAMBRA in the LAMBRA
1 Enter the total number of hours worked by hourly employees during the
taxable/income year in column (a) and column (b). The total hours per
employee cannot exceed 2,000. If your only business in California
began with your LAMBRA business, enter zero in column (a) of line 1 . . . . 5,000
________________ 7,100
________________

2 Divide line 1 of each column by 2,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5


________________ 3.55
________________

3 Enter the total number of months worked by salaried employees.


The total months per salaried employee cannot exceed 12 . . . . . . . . . . . . . 12
________________ 12
________________

4 Divide line 3 of each column by 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1


________________ 1
________________

5 Add line 2 and line 4 of each column . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5


________________ 4.55
________________
Enter the amount on line 5, column (a) on form FTB 3807,
Part I, line 1b. Enter the amount on line 5, column (b) on form
FTB 3807, Part I, line 1a.

FTB 3807 Booklet 1999 Page 21


Code Code
FTB 3807 315230 Women’s & Girls’ Cut & Sew 332900 Other Fabricated Metal
Codes for Principal Business Activity Apparel Mfg Product Mfg
315290 Other Cut & Sew Apparel Mfg Machinery Manufacturing
This list of principal business activities and their associated 315990 Apparel Accessories & Other 333100 Agriculture, Construction, &
Apparel Mfg
codes is designed to classify a business by the type of Mining Machinery Mfg
Leather and Allied Product 333200 Industrial Machinery Mfg
activity in which it is engaged to facilitate the administration Manufacturing 333310 Commercial & Service
of the California Revenue and Taxation Code. For taxable or 316110 Leather & Hide Tanning & Industry Machinery Mfg
Finishing 333410 Ventilation, Heating, Air-
income years beginning on or after January 1, 1998, these 316210 Footwear Mfg (including rubber Conditioning, & Commercial
principal business activity codes are based on the North & plastics) Refrigeration Equipment Mfg
American Industry Classification System published by the 316990 Other Leather & Allied Product 333510 Metalworking Machinery Mfg
Mfg 333610 Engine, Turbine & Power
United States Office of Management and Budget, Wood Product Manufacturing Transmission Equipment Mfg
1997 Edition. 321110 Sawmills & Wood Preservation 333900 Other General Purpose
321210 Veneer, Plywood, & Engi- Machinery Mfg
neered Wood Product Mfg Computer and Electronic Product
321900 Other Wood Product Mfg Manufacturing
Paper Manufacturing 334110 Computer & Peripheral
Equipment Mfg
322100 Pulp, Paper, & Paperboard
Mills 334200 Communications Equipment
Mfg
322200 Converted Paper Product Mfg
334310 Audio & Video Equipment Mfg
Agriculture, Forestry, Fishing Construction Printing and Related Support 334410 Semiconductor & Other
Activities Electronic Component Mfg
and Hunting Code 323100 Printing & Related Support 334500 Navigational, Measuring,
Code Building, Developing, and General Activities Electromedical, & Control
Crop Production Contracting Petroleum and Coal Products Instruments Mfg
111100 Oilseed & Grain Farming 233110 Land Subdivision & Land Manufacturing 334610 Manufacturing & Reproducing
111210 Vegetable & Melon Farming Development 324110 Petroleum Refineries Magnetic & Optical Media
(including potatoes & yams) 233200 Residential Building (including integrated)
Construction Electrical Equipment, Appliance, and
111300 Fruit & Tree Nut Farming 324120 Asphalt Paving, Roofing, & Component Manufacturing
111400 Greenhouse, Nursery, & 233300 Nonresidential Building Saturated Materials Mfg
Construction 335100 Electric Lighting Equipment
Floriculture Production 324190 Other Petroleum & Coal Mfg
111900 Other Crop Farming (including Heavy Construction Products Mfg 335200 Household Appliance Mfg
tobacco, cotton, sugarcane, 234100 Highway, Street, Bridge, & Chemical Manufacturing 335310 Electrical Equipment Mfg
hay, peanut, sugar beet & all Tunnel Construction 325100 Basic Chemical Mfg 335900 Other Electrical Equipment &
other crop farming) 234900 Other Heavy Construction Component Mfg
325200 Resin, Synthetic Rubber, &
Animal Production Special Trade Contractors Artificial & Synthetic Fibers & Transportation Equipment
112111 Beef Cattle Ranching & 235110 Plumbing, Heating, & Air- Filaments Mfg Manufacturing
Farming Conditioning Contractors 325300 Pesticide, Fertilizer, & Other 336100 Motor Vehicle Mfg
112112 Cattle Feedlots 235210 Painting & Wall Covering Agricultural Chemical Mfg 336210 Motor Vehicle Body & Trailer
112120 Dairy Cattle & Milk Production Contractors 325410 Pharmaceutical & Medicine Mfg
112210 Hog & Pig Farming 235310 Electrical Contractors Mfg 336300 Motor Vehicle Parts Mfg
112300 Poultry & Egg Production 235400 Masonry, Drywall, Insulation, & 325500 Paint, Coating, & Adhesive Mfg 336410 Aerospace Product & Parts
112400 Sheep & Goat Farming Tile Contractors 325600 Soap, Cleaning Compound, & Mfg
112510 Animal Aquaculture (including 235500 Carpentry & Floor Contractors Toilet Preparation Mfg 336510 Railroad Rolling Stock Mfg
shellfish & finfish farms & 235610 Roofing, Siding, & Sheet Metal 325900 Other Chemical Product & 336610 Ship & Boat Building
hatcheries) Contractors Preparation Mfg
336990 Other Transportation
112900 Other Animal Production 235710 Concrete Contractors Plastics and Rubber Products Equipment Mfg
Forestry and Logging 235810 Water Well Drilling Contractors Manufacturing
Furniture and Related Product
113110 Timber Tract Operations 235900 Other Special Trade Contrac- 326100 Plastics Product Mfg Manufacturing
113210 Forest Nurseries & Gathering tors 326200 Rubber Product Mfg 337000 Furniture & Related Product
of Forest Products Nonmetallic Mineral Product Manufacturing
113310 Logging Manufacturing Manufacturing Miscellaneous Manufacturing
Fishing, Hunting and Trapping Food Manufacturing 327100 Clay Product & Refractory Mfg 339110 Medical Equipment & Supplies
114110 Fishing 311110 Animal Food Mfg 327210 Glass & Glass Product Mfg Mfg
114210 Hunting & Trapping 311200 Grain & Oilseed Milling 327300 Cement & Concrete Product 339900 Other Miscellaneous
311300 Sugar & Confectionery Product Mfg Manufacturing
Support Activities for Agriculture and Mfg 327400 Lime & Gypsum Product Mfg
Forestry 311400 Fruit & Vegetable Preserving &
115110 Support Activities for Crop
327900 Other Nonmetallic Mineral Wholesale Trade
Specialty Food Mfg Product Mfg
Production (including cotton 311500 Dairy Product Mfg Wholesale Trade, Durable Goods
ginning, soil preparation, Primary Metal Manufacturing 421100 Motor Vehicle & Motor Vehicle
planting, & cultivating) 311610 Animal Slaughtering and 331110 Iron & Steel Mills & Ferroalloy
Processing Parts & Supplies Wholesalers
115210 Support Activities for Animal Mfg 421200 Furniture & Home Furnishing
Production 311710 Seafood Product Preparation & 331200 Steel Product Mfg from
Packaging Wholesalers
115310 Support Activities for Forestry Purchased Steel 421300 Lumber & Other Construction
311800 Bakeries & Tortilla Mfg 331310 Alumina & Aluminum Materials Wholesalers
Mining 311900 Other Food Mfg (including Production & Processing
coffee, tea, flavorings & 421400 Professional & Commercial
211110 Oil & Gas Extraction 331400 Nonferrous Metal (except Equipment & Supplies
seasonings) Aluminum) Production &
212110 Coal Mining Wholesalers
212200 Metal Ore Mining Beverage and Tobacco Product Processing 421500 Metal & Mineral (except
Manufacturing 331500 Foundries Petroleum) Wholesalers
212310 Stone Mining & Quarrying
312110 Soft Drink & Ice Mfg Fabricated Metal Product 421600 Electrical Goods Wholesalers
212320 Sand, Gravel, Clay, & Ceramic
& Refractory 312120 Breweries Manufacturing 421700 Hardware, & Plumbing &
312130 Wineries 332110 Forging & Stamping Heating Equipment & Supplies
Minerals Mining & Quarrying 312140 Distilleries Wholesalers
212390 Other Nonmetallic Mineral 332210 Cutlery & Handtool Mfg
312200 Tobacco Manufacturing 332300 Architectural & Structural 421800 Machinery, Equipment, &
Mining & Quarrying Supplies Wholesalers
213110 Support Activities for Mining Textile Mills and Textile Product Mills Metals Mfg
313000 Textile Mills 332400 Boiler, Tank, & Shipping 421910 Sporting & Recreational
Container Mfg Goods & Supplies Wholesalers
Utilities 314000 Textile Product Mills
421920 Toy & Hobby Goods &
221100 Electric Power Generation, 332510 Hardware Mfg
Apparel Manufacturing Supplies Wholesalers
Transmission & Distribution 332610 Spring & Wire Product Mfg
315100 Apparel Knitting Mills 421930 Recyclable Material Wholesal-
221210 Natural Gas Distribution 332700 Machine Shops; Turned
315210 Cut & Sew Apparel Contrac- Product; & Screw, Nut, & Bolt ers
221300 Water, Sewage & Other tors 421940 Jewelry, Watch, Precious
Systems Mfg
315220 Men’s & Boys’ Cut & Sew 332810 Coating, Engraving, Heat Stone, & Precious Metal
Apparel Mfg Treating, & Allied Activities Wholesalers
421990 Other Miscellaneous Durable
Goods Wholesalers

Page 22 FTB 3807 Booklet 1999


Code Code Code Code
Wholesale Trade, Nondurable Goods Clothing and Clothing Accessories Support Activities for Transportation 523210 Securities & Commodity
422100 Paper & Paper Product Stores 488100 Support Activities for Air Exchanges
Wholesalers 448110 Men’s Clothing Stores Transportation 523900 Other Financial Investment
422210 Drugs & Druggists’ Sundries 448120 Women’s Clothing Stores 488210 Support Activities for Rail Activities (including portfolio
Wholesalers 448130 Children’s & Infants’ Clothing Transportation management & investment
422300 Apparel, Piece Goods, & Stores 488300 Support Activities for Water advice)
Notions Wholesalers 448140 Family Clothing Stores Transportation Insurance Carriers and Related
422400 Grocery & Related Product 448150 Clothing Accessories Stores 488410 Motor Vehicle Towing Activities
Wholesalers 448190 Other Clothing Stores 488490 Other Support Activities for 524140 Direct Life, Health, & Medical
422500 Farm Product Raw Material 448210 Shoe Stores Road Transportation Insurance & Reinsurance
Wholesalers 448310 Jewelry Stores 488510 Freight Transportation Carriers
422600 Chemical & Allied Products 448320 Luggage & Leather Goods Arrangement 524150 Direct Insurance & Reinsur-
Wholesalers Stores 488990 Other Support Activities for ance (except Life, Health &
422700 Petroleum & Petroleum Transportation Medical) Carriers
Products Wholesalers Sporting Goods, Hobby, Book, and 524210 Insurance Agencies &
Music Stores Couriers and Messengers
422800 Beer, Wine, & Distilled Brokerages
451110 Sporting Goods Stores 492110 Couriers
Alcoholic Beverage Wholesal- 524290 Other Insurance Related
ers 451120 Hobby, Toy, & Game Stores 492210 Local Messengers & Local Activities
451130 Sewing, Needlework, & Piece Delivery
422910 Farm Supplies Wholesalers Funds, Trusts, and Other Financial
422920 Book, Periodical, & Newspaper Goods Stores Warehousing and Storage Vehicles
Wholesalers 451140 Musical Instrument & Supplies 493100 Warehousing & Storage 525100 Insurance & Employee Benefit
422930 Flower, Nursery Stock, & Stores (except lessors of Funds
Florists’ Supplies Wholesalers 451211 Book Stores miniwarehouses & self-
storage units) 525910 Open-End Investment Funds
422940 Tobacco & Tobacco Product 451212 News Dealers & Newsstands (Form 1120-RIC)
Wholesalers 451220 Prerecorded Tape, Compact 525920 Trusts, Estates, & Agency
422950 Paint, Varnish, & Supplies Disc, & Record Stores Information Accounts
Wholesalers General Merchandise Stores Publishing Industries 525930 Real Estate Investment Trusts
422990 Other Miscellaneous 452110 Department stores 511110 Newspaper Publishers (Form 1120-REIT)
Nondurable Goods Wholesal- 452900 Other General Merchandise 511120 Periodical Publishers 525990 Other Financial Vehicles
ers Stores 511130 Book Publishers
Miscellaneous Store Retailers 511140 Database & Directory Real Estate and Rental and
Retail Trade Publishers Leasing
453110 Florists
Motor Vehicle and Parts Dealers 511190 Other Publishers
453210 Office Supplies & Stationery Real Estate
441110 New Car Dealers Stores 511210 Software Publishers
531110 Lessors of Residential
441120 Used Car Dealers 453220 Gift, Novelty, & Souvenir Motion Picture and Sound Recording Buildings & Dwellings
441210 Recreational Vehicle Dealers Stores Industries 531120 Lessors of Nonresidential
441221 Motorcycle Dealers 453310 Used Merchandise Stores 512100 Motion Picture & Video Buildings (except
441222 Boat Dealers 453910 Pet & Pet Supplies Stores Industries (except video rental) Miniwarehouses)
441229 All Other Motor Vehicle 453920 Art Dealers 512200 Sound Recording Industries 531130 Lessors of Miniwarehouses &
Dealers 453930 Manufactured (Mobile) Home Broadcasting and Self-Storage Units
441300 Automotive Parts, Accessories, Dealers Telecommunications 531190 Lessors of Other Real Estate
& Tire Stores 453990 All Other Miscellaneous Store 513100 Radio & Television Broadcast- Property
Furniture and Home Furnishings Retailers (including tobacco, ing 531210 Offices of Real Estate Agents
Stores candle, & trophy shops) 513200 Cable Networks & Program & Brokers
442110 Furniture Stores Nonstore Retailers Distribution 531310 Real Estate Property
442210 Floor Covering Stores 513300 Telecommunications (including Managers
454110 Electronic Shopping & Mail-
442291 Window Treatment Stores Order Houses paging, cellular, satellite, & 531320 Offices of Real Estate
442299 All Other Home Furnishings other telecommunications) Appraisers
454210 Vending Machine Operators
Stores Information Services and Data 531390 Other Activities Related to
454311 Heating Oil Dealers Real Estate
Electronics and Appliance Stores 454312 Liquefied Petroleum Gas Processing Services
443111 Household Appliance Stores (Bottled Gas) Dealers 514100 Information Services (including Rental and Leasing Services
443112 Radio, Television, & Other 454319 Other Fuel Dealers news syndicates, libraries, & 532100 Automotive Equipment Rental
Electronics Stores 454390 Other Direct Selling Establish- on-line information services) & Leasing
443120 Computer & Software Stores ments (including door-to-door 514210 Data Processing Services 532210 Consumer Electronics &
retailing, frozen food plan Appliances Rental
443130 Camera & Photographic
Supplies Stores providers, party plan Finance and Insurance 532220 Formal Wear & Costume
merchandisers, & coffee-break Depository Credit Intermediation Rental
Building Material and Garden service providers) 532230 Video Tape & Disc Rental
Equipment and Supplies Dealers 522110 Commercial Banking
522120 Savings Institutions 532290 Other Consumer Goods Rental
444110 Home Centers Transportation and 532310 General Rental Centers
444120 Paint & Wallpaper Stores 522130 Credit Unions
Warehousing 522190 Other Depository Credit 532400 Commercial & Industrial
444130 Hardware Stores Machinery & Equipment
444190 Other Building Material Air, Rail, and Water Transportation Intermediation
Rental & Leasing
Dealers 481000 Air Transportation Nondepository Credit Intermediation
482110 Rail Transportation Lessors of Nonfinancial Intangible
444200 Lawn & Garden Equipment & 522210 Credit Card Issuing Assets (except copyrighted works)
Supplies Stores 483000 Water Transportation 522220 Sales Financing 533110 Lessors of Nonfinancial
Food and Beverage Stores Truck Transportation 522291 Consumer Lending Intangible Assets (except
445110 Supermarkets and Other 484110 General Freight Trucking, Local 522292 Real Estate Credit (including copyrighted works)
Grocery (except Convenience) 484120 General Freight Trucking, mortgage bankers &
Stores Long-distance originators) Professional, Scientific, and
445120 Convenience Stores 484200 Specialized Freight Trucking 522293 International Trade Financing Technical Services
445210 Meat Markets Transit and Ground Passenger 522294 Secondary Market Financing
522298 All Other Nondepository Credit Legal Services
445220 Fish & Seafood Markets Transportation
Intermediation 541110 Offices of Lawyers
445230 Fruit & Vegetable Markets 485110 Urban Transit Systems 541190 Other Legal Services
445291 Baked Goods Stores 485210 Interurban & Rural Bus Activities Related to Credit
445292 Confectionery & Nut Stores Transportation Intermediation Accounting, Tax Preparation,
445299 All Other Specialty Food 485310 Taxi Service 522300 Activities Related to Credit Bookkeeping, and Payroll Services
Stores 485320 Limousine Service Intermediation (including loan 541211 Offices of Certified Public
445310 Beer, Wine, & Liquor Stores brokers) Accountants
485410 School & Employee Bus
Transportation Securities, Commodity Contracts, and 541213 Tax Preparation Services
Health and Personal Care Stores 541214 Payroll Services
446110 Pharmacies & Drug Stores 485510 Charter Bus Industry Other Financial Investments and
485990 Other Transit & Ground Related Activities 541219 Other Accounting Services
446120 Cosmetics, Beauty Supplies, &
Perfume Stores Passenger Transportation 523110 Investment Banking & Architectural, Engineering, and
Securities Dealing Related Services
446130 Optical Goods Stores Pipeline Transportation
523120 Securities Brokerage 541310 Architectural Services
446190 Other Health & Personal Care 486000 Pipeline Transportation
Stores 523130 Commodity Contracts Dealing 541320 Landscape Architecture
Scenic & Sightseeing Transportation 523140 Commodity Contracts Services
Gasoline Stations 487000 Scenic & Sightseeing Brokerage 541330 Engineering Services
447100 Gasoline Stations (including Transportation 541340 Drafting Services
convenience stores with gas)
541350 Building Inspection Services

FTB 3807 Booklet 1999 Page 23


Code Code Code Code
541360 Geophysical Surveying & 561500 Travel Arrangement & Other Ambulatory Health Care Food Services and Drinking Places
Mapping Services Reservation Services Services 722110 Full-Service Restaurants
541370 Surveying & Mapping (except 561600 Investigation & Security 621900 Other Ambulatory Health Care 722210 Limited-Service Eating Places
Geophysical) Services Services Services (including ambulance 722300 Special Food Services
541380 Testing Laboratories 561710 Exterminating & Pest Control services & blood & organ (including food service
Specialized Design Services Services banks) contractors & caterers)
541400 Specialized Design Services 561720 Janitorial Services Hospitals 722410 Drinking Places (Alcoholic
(including interior, industrial, 561730 Landscaping Services 622000 Hospitals Beverages)
graphic, & fashion design) 561740 Carpet & Upholstery Cleaning Nursing and Residential Care
Computer Systems Design and Services Facilities Other Services
Related Services 561790 Other Services to Buildings & 623000 Nursing & Residential Care Repair and Maintenance
541511 Custom Computer Program- Dwellings Facilities 811110 Automotive Mechanical &
ming Services 561900 Other Support Services Electrical Repair & Mainte-
(including packaging & labeling Social Assistance
541512 Computer Systems Design nance
services, & convention & trade 624100 Individual & Family Services
Services 811120 Automotive Body, Paint,
show organizers) 624200 Community Food & Housing, & Interior, & Glass Repair
541513 Computer Facilities Manage- Emergency & Other Relief
ment Services Waste Management and Remediation 811190 Other Automotive Repair &
Services Services
541519 Other Computer Related Maintenance (including oil
562000 Waste Management & 624310 Vocational Rehabilitation change & lubrication shops &
Services Services
Remediation Services car washes)
Other Professional, Scientific, and 624410 Child Day Care Services
Technical Services 811210 Electronic & Precision
Educational Services Equipment Repair &
541600 Management, Scientific, &
611000 Educational Services Arts, Entertainment, and Maintenance
Technical Consulting Services Recreation
(including schools, colleges, & 811310 Commercial & Industrial
541700 Scientific Research & universities) Machinery & Equipment
Development Services Performing Arts, Spectator Sports,
and Related Industries (except Automotive &
541800 Advertising & Related Health Care and Social Electronic) Repair &
Services 711100 Performing Arts Companies
Assistance Maintenance
541910 Marketing Research & Public 711210 Spectator Sports (including
sports clubs & racetracks) 811410 Home & Garden Equipment &
Opinion Polling Offices of Physicians and Dentists Appliance Repair & Mainte-
541920 Photographic Services 621111 Offices of Physicians (except 711300 Promoters of Performing Arts, nance
541930 Translation & Interpretation mental health specialists) Sports, & Similar Events
811420 Reupholstery & Furniture
Services 621112 Offices of Physicians, Mental 711410 Agents & Managers for Artists, Repair
541940 Veterinary Services Health Specialists Athletes, Entertainers, & Other
Public Figures 811430 Footwear & Leather Goods
541990 All Other Professional, 621210 Offices of Dentists Repair
Scientific, & Technical Services 711510 Independent Artists, Writers, &
Offices of Other Health Practitioners Performers 811490 Other Personal & Household
621310 Offices of Chiropractors Goods Repair & Maintenance
Management of Companies 621320 Offices of Optometrists
Museums, Historical Sites, and
Personal and Laundry Services
(Holding Companies) Similar Institutions
621330 Offices of Mental Health 712100 Museums, Historical Sites, & 812111 Barber Shops
551111 Offices of Bank Holding Practitioners (except Similar Institutions 812112 Beauty Salons
Companies Physicians) 812113 Nail Salons
551112 Offices of Other Holding 621340 Offices of Physical, Occupa- Amusement, Gambling, and
Recreation Industries 812190 Other Personal Care Services
Companies tional & Speech Therapists, & (including diet & weight
Audiologists 713100 Amusement Parks & Arcades reducing centers)
Administrative and Support 621391 Offices of Podiatrists 713200 Gambling Industries 812210 Funeral Homes & Funeral
and Waste Management and 621399 Offices of All Other Miscella- 713900 Other Amusement & Services
neous Health Practitioners Recreation Industries 812220 Cemeteries & Crematories
Remediation Services (including golf courses, skiing
Outpatient Care Centers facilities, marinas, fitness 812310 Coin-Operated Laundries &
Administrative and Support Services Drycleaners
621410 Family Planning Centers centers, & bowling centers)
561110 Office Administrative Services 812320 Drycleaning & Laundry
621420 Outpatient Mental Health &
561210 Facilities Support Services Substance Abuse Centers Services (except Coin-
561300 Employment Services Accommodation and Food Operated)
621491 HMO Medical Centers Services
561410 Document Preparation 621492 Kidney Dialysis Centers 812330 Linen & Uniform Supply
Services Accommodation 812910 Pet Care (except Veterinary)
621493 Freestanding Ambulatory
561420 Telephone Call Centers Surgical & Emergency Centers 721110 Hotels (except casino hotels) & Services
561430 Business Service Centers 621498 All Other Outpatient Care Motels 812920 Photofinishing
(including private mail centers Centers 721120 Casino Hotels 812930 Parking Lots & Garages
& copy shops) 721191 Bed & Breakfast Inns 812990 All Other Personal Services
561440 Collection Agencies Medical and Diagnostic Laboratories
721199 All Other Traveler Accommoda- Religious, Grantmaking, Civic,
561450 Credit Bureaus 621510 Medical & Diagnostic tion
Laboratories Professional, and Similar
561490 Other Business Support 721210 RV (Recreational Vehicle) Organizations
Services (including reposses- Home Health Care Services Parks & Recreational Camps
sion services, court reporting, 813000 Religious, Grantmaking, Civic,
621610 Home Health Care Services 721310 Rooming & Boarding Houses Professional, & Similar
& stenotype services)
Organizations

Page 24 FTB 3807 Booklet 1999


YEAR
Local Agency Military Base Recovery Area CALIFORNIA FORM

1999 Deduction and Credit Summary 3807


Attach to your California tax return. Social security or California corporation number

Name(s) as shown on return FEIN

-
A. Check the appropriate box for your entity type:
첸 Individual 첸 Estate 첸 Trust 첸 C corporation 첸 S corporation 첸 Partnership
첸 Exempt organization 첸 Limited liability company 첸 Limited liability partnership
B. Enter the name of the Local Agency Military Base Recovery Area (LAMBRA) business: _____________________________________________________
C. Enter the address (actual location) where the LAMBRA business is conducted:
__________________________________________________________________________________________________________________________
D. Enter the name of the LAMBRA in which the business and/or investment activity is located. See General Information D, LAMBRA Designation.
__________________________________________________________________________________________________________________________
E. Principal Business Activity Code number of the LAMBRA business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
Enter the six-digit number from the Principal Business Activity Code Chart (pages 22 through 24).
F. Total number of employees in the LAMBRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
G. Number of employees included in the computation of the hiring credit, if claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
H. Number of new employees included in the computation of the hiring credit, if claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
I. Gross annual receipts of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
J. Total asset value of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
Part I Net Increase in Jobs
Note: Complete Part I only if you have been doing business in a LAMBRA for two years.
1 a Number of full-time employees in California in the second year after operation in a LAMBRA . . . . . . . . . . . . . . . . . . . . . . . _________________
b Number of full-time employees in California prior to starting business in the LAMBRA. See instructions . . . . . . . . . . . . . . _________________
Subtract line 1b from line 1a. This is the net increase in jobs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 _________________
Part II Credits Used
2 Hiring and sales or use tax credits claimed on the current year return:
a Hiring credit from Worksheet VI, line 8A, column (f) or line 10, column (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
b Sales or use tax credit from Worksheet VI, line 9A, column (f) or line 11, column (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
Add line 2a and line 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ❚ 2 _________________
Note: To figure the amount of credits to carry over, complete Worksheet VI on Side 2.
Part III Business Expense Deduction for Equipment Purchases
3 Enter the cost of qualified property purchased for the LAMBRA that is being deducted as a current year
business expense from Worksheet III, Section A, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 _________________
ELECTION: The act of deducting a portion of the cost of any property as a current year expense rather than adding it to the
capital account constitutes an election to treat that property in accordance with R&TC Section 17268 or 24356.8. That
election may not be revoked except with the written consent of the Franchise Tax Board (FTB).
Part IV Net Operating Loss (NOL) Carryover and Deduction
4a Enter the NOL carryover from prior years from Worksheet V, Section C, line 12, column (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . 4a _________________
4b Enter the total NOL deduction used in the current year from Worksheet V, Section C, line 12, column (c).
Enter this amount on Schedule CA (540 or 540NR), line 21e, column B; Form 100, line 20; Form 100S, line 19;
or Form 109, line 3 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b _________________
4c Enter the NOL to carryover to future years from Worksheet V, Section C, line 12, column (e) . . . . . . . . . . . . . . . . . . . . . . . . . . 4c _________________
ELECTION: For those taxpayers eligible for an NOL carryover under R&TC Section 17276.2, 17276.4, 17276.5, 1,7276.6, 24416.2,
24416.4, 24416.5, or 24416.6, the act of claiming an NOL carryover on this form constitutes the irrevocable election to apply the
loss under R&TC Section 17276.5 or 24416.5, for qualified businesses with a LAMBRA. If you elect to carry over an NOL
under any of these provisions, you are prohibited by law from carrying over any other type of NOL from this year.
Part V Portion of Business Attributable to the LAMBRA
5 Enter the average apportionment percentage of your business that is in the LAMBRA from Worksheet IV, Section A, line 4.
If your business is wholly within one LAMBRA, the average apportionment percentage is 100% (1.00) . . . . . . . . . . . . . . . . . . 5 _________________
Part VI Recapture of Deduction and Credits
6 Recapture of hiring credit from Worksheet I, Section B, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 _________________
7 Recapture of sales or use tax credit from Worksheet II, Section B, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 _________________
8 Recapture of business expense deduction from Worksheet III, Section B, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 _________________

380799109 FTB 3807 1999 Side 1


Worksheet VI Computation of Credit Limitations — LAMBRA
Part I Computation of Limitations. See instructions.
1 Trade or business income. Individuals: Enter the amount from the Income or Loss Worksheet, line 14, column (c)
(page 15) on this line and on line 3 (skip line 2). See instructions on page 18. Note: Multistate apportioning
corporations, enter the amount from Schedule R, line 13b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Corporations: Enter the average apportionment percentage from Worksheet IV, Section A, line 4. See instructions . . . . 2
3 Multiply line 1 by line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Enter the LAMBRA NOL deduction from Worksheet V, Section C, line 12, column (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 LAMBRA taxable income. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12345678901234567890125
1234567890123456789012
1234567890123456789012
6a Compute the amount of tax due using the amount on line 5. See instructions . . . . . . . . . 6a 1234567890123456789012
1234567890123456789012
6b Enter the amount of tax from Form 540, line 24; Form 540NR, line 27; 1234567890123456789012
1234567890123456789012
Form 541, line 21; Form 100, line 23; Form 100S, line 22; or Form 109, line 7 1234567890123456789012
1234567890123456789012
or line 15. Corporations and S corporations, see instructions . . . . . . . . . . . . . . . . . . . . . 6b 1234567890123456789012
7 Enter the smaller of line 6a or line 6b. This is the limitation based on LAMBRA business income.
Go to Part II, Part III, or Part IV and see the applicable instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Part II Limitation of Credits for Corporations, Individuals, and Estates and Trusts. See instructions.
(a) (b) (c) (d) (e) (f) (g)
Credit Credit Total Total credit Limitation Used on Schedule P Carryover
name amount prior year (add col. (b) based on LAMBRA (can never be greater (col. (d) minus
carryover and col. (c)) business income than col. (d) or col. (e)) col. (e))
123456789012345678901234567890121234567890123
123456789012345678901234567890121234567890123 123456789012345
123456789012345
123456789012345678901234567890121234567890123 123456789012345
8 Hiring A 123456789012345678901234567890121234567890123
123456789012345678901234567890121234567890123 123456789012345
12345678901234567
123456789012345
12345678901234567
12345678901234567
credit 12345678901234567
B 123456789012345678901234567890121234567890123 12345678901234567
12345678901234567123456789012345
123456789012345678901234567890121234567890123 123456789012345
9 Sales or A 123456789012345678901234567890121234567890123
123456789012345678901234567890121234567890123
123456789012345678901234567890121234567890123
123456789012345
123456789012345
12345678901234567
123456789012345
use tax 12345678901234567
12345678901234567
credit B 12345678901234567
12345678901234567
12345678901234567

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


(a) (b) (c) (d) (e) (f) (g)
Credit Credit S corporation Total Total credit Credit used Carryover
name amount credit (multiply prior year (add col. (b) this year by (col. (e) minus
col. (b) by 1/3) carryover and col. (c)) S corporation col. (f))

10 Hiring
credit
11 Sales or use
tax credit

Part IV Limitation of Credits for Corporations and S Corporations Subject to Paying Only the Minimum Franchise Tax. See instructions.
(a) (b) (c) (d)
Credit Credit Total Total credit
name amount prior year carryover (add
carryover col. (b) and col. (c))

12 Hiring
credit
13 Sales or use
tax credit

Side 2 FTB 3807 1999 380799209


YEAR
Local Agency Military Base Recovery Area CALIFORNIA FORM

1999 Deduction and Credit Summary 3807


Attach to your California tax return. Social security or California corporation number

Name(s) as shown on return FEIN

-
A. Check the appropriate box for your entity type:
첸 Individual 첸 Estate 첸 Trust 첸 C corporation 첸 S corporation 첸 Partnership
첸 Exempt organization 첸 Limited liability company 첸 Limited liability partnership
B. Enter the name of the Local Agency Military Base Recovery Area (LAMBRA) business: _____________________________________________________
C. Enter the address (actual location) where the LAMBRA business is conducted:
__________________________________________________________________________________________________________________________
D. Enter the name of the LAMBRA in which the business and/or investment activity is located. See General Information D, LAMBRA Designation.
__________________________________________________________________________________________________________________________
E. Principal Business Activity Code number of the LAMBRA business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
Enter the six-digit number from the Principal Business Activity Code Chart (pages 22 through 24).
F. Total number of employees in the LAMBRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
G. Number of employees included in the computation of the hiring credit, if claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
H. Number of new employees included in the computation of the hiring credit, if claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
I. Gross annual receipts of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
J. Total asset value of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
Part I Net Increase in Jobs
Note: Complete Part I only if you have been doing business in a LAMBRA for two years.
1 a Number of full-time employees in California in the second year after operation in a LAMBRA . . . . . . . . . . . . . . . . . . . . . . . _________________
b Number of full-time employees in California prior to starting business in the LAMBRA. See instructions . . . . . . . . . . . . . . _________________
Subtract line 1b from line 1a. This is the net increase in jobs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 _________________
Part II Credits Used
2 Hiring and sales or use tax credits claimed on the current year return:
a Hiring credit from Worksheet VI, line 8A, column (f) or line 10, column (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
b Sales or use tax credit from Worksheet VI, line 9A, column (f) or line 11, column (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________
Add line 2a and line 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ❚ 2 _________________
Note: To figure the amount of credits to carry over, complete Worksheet VI on Side 2.
Part III Business Expense Deduction for Equipment Purchases
3 Enter the cost of qualified property purchased for the LAMBRA that is being deducted as a current year
business expense from Worksheet III, Section A, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 _________________
ELECTION: The act of deducting a portion of the cost of any property as a current year expense rather than adding it to the
capital account constitutes an election to treat that property in accordance with R&TC Section 17268 or 24356.8. That
election may not be revoked except with the written consent of the Franchise Tax Board (FTB).
Part IV Net Operating Loss (NOL) Carryover and Deduction
4a Enter the NOL carryover from prior years from Worksheet V, Section C, line 12, column (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . 4a _________________
4b Enter the total NOL deduction used in the current year from Worksheet V, Section C, line 12, column (c).
Enter this amount on Schedule CA (540 or 540NR), line 21e, column B; Form 100, line 20; Form 100S, line 19;
or Form 109, line 3 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b _________________
4c Enter the NOL to carryover to future years from Worksheet V, Section C, line 12, column (e) . . . . . . . . . . . . . . . . . . . . . . . . . . 4c _________________
ELECTION: For those taxpayers eligible for an NOL carryover under R&TC Section 17276.2, 17276.4, 17276.5, 1,7276.6, 24416.2,
24416.4, 24416.5, or 24416.6, the act of claiming an NOL carryover on this form constitutes the irrevocable election to apply the
loss under R&TC Section 17276.5 or 24416.5, for qualified businesses with a LAMBRA. If you elect to carry over an NOL
under any of these provisions, you are prohibited by law from carrying over any other type of NOL from this year.
Part V Portion of Business Attributable to the LAMBRA
5 Enter the average apportionment percentage of your business that is in the LAMBRA from Worksheet IV, Section A, line 4.
If your business is wholly within one LAMBRA, the average apportionment percentage is 100% (1.00) . . . . . . . . . . . . . . . . . . 5 _________________
Part VI Recapture of Deduction and Credits
6 Recapture of hiring credit from Worksheet I, Section B, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 _________________
7 Recapture of sales or use tax credit from Worksheet II, Section B, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 _________________
8 Recapture of business expense deduction from Worksheet III, Section B, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 _________________

380799109 FTB 3807 1999 Side 1


Worksheet VI Computation of Credit Limitations — LAMBRA
Part I Computation of Limitations. See instructions.
1 Trade or business income. Individuals: Enter the amount from the Income or Loss Worksheet, line 14, column (c)
(page 15) on this line and on line 3 (skip line 2). See instructions on page 18. Note: Multistate apportioning
corporations, enter the amount from Schedule R, line 13b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Corporations: Enter the average apportionment percentage from Worksheet IV, Section A, line 4. See instructions . . . . 2
3 Multiply line 1 by line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Enter the LAMBRA NOL deduction from Worksheet V, Section C, line 12, column (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 LAMBRA taxable income. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12345678901234567890125
1234567890123456789012
1234567890123456789012
6a Compute the amount of tax due using the amount on line 5. See instructions . . . . . . . . . 6a 1234567890123456789012
1234567890123456789012
6b Enter the amount of tax from Form 540, line 24; Form 540NR, line 27; 1234567890123456789012
1234567890123456789012
Form 541, line 21; Form 100, line 23; Form 100S, line 22; or Form 109, line 7 1234567890123456789012
1234567890123456789012
or line 15. Corporations and S corporations, see instructions . . . . . . . . . . . . . . . . . . . . . 6b 1234567890123456789012
7 Enter the smaller of line 6a or line 6b. This is the limitation based on LAMBRA business income.
Go to Part II, Part III, or Part IV and see the applicable instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Part II Limitation of Credits for Corporations, Individuals, and Estates and Trusts. See instructions.
(a) (b) (c) (d) (e) (f) (g)
Credit Credit Total Total credit Limitation Used on Schedule P Carryover
name amount prior year (add col. (b) based on LAMBRA (can never be greater (col. (d) minus
carryover and col. (c)) business income than col. (d) or col. (e)) col. (e))
123456789012345678901234567890121234567890123
123456789012345678901234567890121234567890123 123456789012345
123456789012345
123456789012345678901234567890121234567890123 123456789012345
8 Hiring A 123456789012345678901234567890121234567890123
123456789012345678901234567890121234567890123 123456789012345
12345678901234567
123456789012345
12345678901234567
12345678901234567
credit 12345678901234567
B 123456789012345678901234567890121234567890123 12345678901234567
12345678901234567123456789012345
123456789012345678901234567890121234567890123 123456789012345
9 Sales or A 123456789012345678901234567890121234567890123
123456789012345678901234567890121234567890123
123456789012345678901234567890121234567890123
123456789012345
123456789012345
12345678901234567
123456789012345
use tax 12345678901234567
12345678901234567
credit B 12345678901234567
12345678901234567
12345678901234567

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


(a) (b) (c) (d) (e) (f) (g)
Credit Credit S corporation Total Total credit Credit used Carryover
name amount credit (multiply prior year (add col. (b) this year by (col. (e) minus
col. (b) by 1/3) carryover and col. (c)) S corporation col. (f))

10 Hiring
credit
11 Sales or use
tax credit

Part IV Limitation of Credits for Corporations and S Corporations Subject to Paying Only the Minimum Franchise Tax. See instructions.
(a) (b) (c) (d)
Credit Credit Total Total credit
name amount prior year carryover (add
carryover col. (b) and col. (c))

12 Hiring
credit
13 Sales or use
tax credit

Side 2 FTB 3807 1999 380799209


How to Get California Tax Information (Keep This Page For Future Use)
Where to Get Income Tax Forms General Toll-Free Phone Service Your Rights as a Taxpayer
By Internet – If you have Internet access, you Between January 3 – April 17, 2000, our Our goal at the Franchise Tax Board (FTB) is
may download, view, and print California tax general toll-free phone service is available: to make certain that your rights are protected
forms and publications. Go to our website at: • Monday – Friday, 6 a.m. until midnight; so that you will have the highest confidence in
www.ftb.ca.gov and the integrity, efficiency, and fairness of our
• Saturdays and holidays, 7 a.m. until 4 p.m. state tax system. FTB Publication 4058,
By phone – To order 1997, 1998, and 1999 California Taxpayers’ Bill of Rights, includes
California personal income tax forms, 1999 After April 17, 2000, our general toll-free information on your rights as a California
California business entity tax forms, and 1999 phone service is available: taxpayer, the Taxpayers’ Rights Advocate
federal forms, call our automated phone • Monday – Friday, 7 a.m. until 8 p.m.; and Program, and how you can request written
service. To order a form: • Saturdays, 7 a.m. until 4 p.m. advice from the FTB on whether a particular
• Refer to the list in your tax booklet and The best times to call are before 10 a.m. and transaction is taxable. See “Where to Get
find the code number for the form you after 6 p.m. Times of day are Pacific Standard Income Tax Forms” on this page for how to
want to order. Time (PST). get this publication.
• Call (800) 338-0505 and follow the
From within the
instructions.
United States . . . . . . . . . . . (800) 852-5711
Field Offices
Please allow two weeks to receive your order. From outside the You can get information, California tax forms,
If you live outside California, please allow United States . . . . . . . . . . . (916) 845-6500 and resolve problems on your account if you
three weeks to receive your order. (not toll-free) visit one of our field offices. Our field office
In person – Most libraries, post offices, and Assistance for persons with disabilities: hours are Monday through Friday, 8 a.m. until
banks provide free California personal income The FTB complies with provisions of the 5 p.m. These offices will remain open
tax booklets during the filing season. Many Americans with Disabilities Act. Persons with additional hours and days from January 15
libraries and some quick print businesses have a hearing or speech impairment, call: through April 17, 2000. For the extended
forms and schedules for you to photocopy (you hours of the office nearest you, call
From voice phone . . . . . . . . . (800) 735-2922
may have to pay a nominal fee). Note that (800) 338-0505, select personal income tax,
(California Relay Service)
employees at libraries, post offices, banks, and then general information, and enter code 110
quick print businesses cannot provide tax From TTY/TDD . . . . . . . . . . . (800) 822-6268 when instructed to do so.
information or assistance. (Direct line to FTB customer service)
Field Office Address
By mail – Write to: For all other assistance or special accommo- Bakersfield 1800 30th St, Ste 370
dations, call (800) 852-5711. Burbank 333 N Glenoaks Blvd,
TAX FORMS REQUEST UNIT
FRANCHISE TAX BOARD For federal tax questions: Ste 200
PO BOX 307 Call the IRS at . . . . . . . . . . . . (800) 829-1040 Fresno 2550 Mariposa St,
RANCHO CORDOVA CA 95741-0307 Asistencia bilingüe en español Rm 3002
Para obtener servicios en español y asistencia Long Beach 4300 Long Beach Blvd,
Letters para completar su declaración de impuestos/ Ste 700B
formularios, llame al número de teléfono Los Angeles 300 S Spring St, Ste 5704
You may write to us to get a written reply to (anotado arriba) que le corresponde. Oakland 1515 Clay St, Ste 305
your question or to reply to a notice we sent Sacramento 3321 Power Inn Road
you. Be sure your letter includes your FEIN, Geographic Boundaries Ste 250
California corporation number, or social San Bernardino 464 W 4th St, Ste 454
security number, your daytime and evening Further information about geographic San Diego 5353 Mission Ctr Rd, Ste 314
telephone numbers, and a copy of the notice boundaries of the LAMBRAs is available from: San Francisco 455 Golden Gate Ave,
(if applicable). Send your letter to: ENTERPRISE ZONE PROGRAMS Ste 7400
RESOURCE DEVELOPMENT SECTION CA TRADE AND COMMERCE AGENCY San Jose 96 N Third St, 4th Fl
FRANCHISE TAX BOARD 801 K STREET SUITE 1700 Santa Ana 600 W Santa Ana Blvd,
PO BOX 1468 SACRAMENTO CA 95814 Ste 300
SACRAMENTO CA 95812-1468 Santa Rosa 50 D St, Rm 130
Telephone: (916) 324-8211 Stockton 31 East Channel St, Rm 219
We will respond to your letter within six to FAX: (916) 322-7214 Ventura 4820 McGrath St, Ste 270
eight weeks. In some cases, we may need to Website: commerce.ca.gov West Covina 100 N Barranca St, Ste 600
call you for additional information. Do not
attach correspondence to your tax return Economic Development Area Out of State Field Offices
unless the correspondence relates to an item Chicago 1 N. Franklin, Ste 400
on your return.
Information Chicago, IL 60606-3401
Houston 1415 Louisiana, Ste 1515
Further information about the LAMBRA tax
Houston, TX 77002-7351
incentives is available from:
Long Island 1325 Franklin Ave, Ste 560
FRANCHISE TAX BOARD Garden City, NY 11530-1631
ECONOMIC DEVELOPMENT AREA Manhattan 1212 Ave of the Americas,
INFORMATION 4th Fl
Telephone: (916) 845-3464 New York, NY 10036-1601
FAX: (916) 845-0415
Website: www.ftb.ca.gov

FTB 3807 Booklet 1999 Page 29


 Automated Toll-Free Phone Service (Keep This Page For Future Use)
Call our automated toll-free phone service to: 212 – How do I claim my disaster related loss? 734 – Is my corporation subject to the franchise
• Order most California and federal income tax 215 – Who qualifies me to use the head of tax or income tax?
forms; household filing status? S Corporations
• Get current year tax refund information; 216 – I’m due a refund. Do I still need to file a
return? 704 – Is an S corporation subject to the minimum
• Get balance due and payment information; and franchise tax?
• Hear recorded answers to many of your 217 – I am currently/was in the military. Do I have 705 – Are S corporations required to file estimate
questions about California taxes. to file a California return?
218 – I’m in the military. Do I have to use the payments?
Our automated phone service is available in 706 – What forms do S corporations file?
same filing status as federal? 707 – The tax for my S corporation is less than
English and Spanish to callers with touch-tone 219 – I sold my personal residence. How do I
telephones. Have paper and pencil ready to take report the sale to California? the minimum franchise tax. What figure do
notes. I put on line 22 of Form 100S?
220 – There is no difference in my state and 708 – Where do S corporations make adjustments
Call from within the federal depreciation, business income, and
capital gain income. What do I do? for state and federal law differences on
United States . . . . . . . . . . . . . . (800) 338-0505 Schedule K-1 (100S) and where do
Call from outside the 221 – What is community property? nonresident shareholders find their
United States (not toll-free) . . . (916) 845-6600 222 – How much can I deduct for vehicle license
fees? California source income on their
Current Year Personal Income Tax Refund Schedule K-1 (100S)?
Information 227 – How do I get a refund of excess SDI?
239 – Where can I get help with preparing and Exempt Organizations
You should wait at least eight weeks after you file filing my income tax return? 709 – How do I get tax-exempt status?
your tax return before you call to find out about 710 – Does an exempt organization have to file
your refund. You will need your social security 240 – Does a tax return have to be filed for a
deceased taxpayer? Form 199?
number, the numbers in your street address, box 735 – How can an exempt organization incorpo-
number, or route number, and your ZIP Code to Refunds rate without paying corporation fees and
use this service. Refund status information is 300 – My spouse has passed away. You sent a costs?
available 24 hours a day, 7 days a week. Call our refund with both our names on it. What do
I do? 736 – I have exempt status. Do I need to file
automated phone service, select personal income Form 100 or Form 109 in addition to
tax information, then refund information, and 301 – I got a letter saying you sent my refund to Form 199?
follow the recorded instructions. another agency. Why?
Penalties Minimum Tax and Estimate Tax
Personal Income Tax Balance Due and Payment 712 – What is the minimum franchise tax?
Information 400 – I have an extension of time to file my 714 – My corporation is not doing business; does
You should wait at least 45 days from the date you return. Why did I get a penalty?
401 – I filed my return on time. Why did I get a it have to pay the minimum franchise tax?
mailed your payment before you call to verify 716 – When are my estimate payments due?
receipt of your payment. You will need your social penalty?
security number, the numbers in your street 402 – How can I protest a penalty? Billings and Miscellaneous Notices
address, box number, or route number, and your 403 – What is the estimate penalty rate? 723 – I received a bill for $250. What is this for?
ZIP Code to use this service. Balance due and 728 – Why was my corporation suspended?
Notices and Bills 729 – Why is my subsidiary getting a request for
payment information is available 24 hours a day, 500 – I received a bill and I cannot pay it in full.
7 days a week. What do I do? a return when we file a combined report?
Order Forms 501 – Why didn’t you give me credit for my Tax Clearance
See the instructions for ordering forms by phone withholding? 724 – How do I dissolve my corporation?
on page 29. For personal income tax forms, this 502 – You didn’t give me credit for my dependent. 725 – What do I have to do to get a tax clear-
service is available 24 hours a day, 7 days a week. What do I do? ance?
Business entity forms are available from 6 a.m. 504 – I’m head of my house. Why was I denied 726 – How long will it take to get a tax clearance
until 8 p.m., Monday through Friday. head of household filing status? certificate?
505 – Why was my IRA deduction denied? 727 – My corporation was suspended/
Answers To Tax Questions 506 – How do I get information about my forfeited. Can I still get a tax clearance?
Recorded answers to your tax questions are Form 1099-G?
available 24 hours a day, 7 days a week. To receive Miscellaneous
answers to any of the following questions, call our 508 – I received a notice that didn’t show all 617 – What are the current interest rates?
payments made. How do I get credit for 700 – Who do I need to contact to start a
automated phone service, select either personal them?
income tax or business entity tax information, then business?
general information, and enter the three-digit code Tax For Children 701 – I need a state ID number for my business.
when instructed to do so. 601 – Can my child take a personal exemption Who do I contact?
credit when I claim her or him as a 702 – Can you send me an employer’s tax guide?
Times of day are Pacific Standard Time (PST). 703 – How do I incorporate?
dependent on my return?
602 – Federal law limits the standard deduction. 719 – How do I properly identify my corporation
Personal Income Tax Information Is the state law the same? when dealing with the Franchise Tax Board?
720 – How do I obtain information about
Miscellaneous changing my corporation’s name?
Code Filing Assistance 610 – Can I pay my taxes with a credit card?
100 – Do I need to file a return? 611 – What address do I send my payment to? 721 – How do I change my accounting period?
110 – Field office hours of availability, January 15 737 – Where do I send my payment?
612 – I mailed my return and haven’t heard 738 – What is electronic funds transfer?
- April 17, 2000. anything. Should I send a copy of my
111 – Which form should I use? return? 739 – How do I get a copy of my state corporate
112 – How do I file electronically and get a fast tax return?
613 – I forgot to attach my Form(s) W-2 when I 740 – What requirements do I have to report
refund? mailed my return. What do I do?
200 – Where can I pick up a form today? 614 – I forgot to attach a copy of my federal municipal bond interest paid by a state
201 – How can I get an extension to file? other than California?
return. What do I do? 750 – How do I organize or register an LLC?
202 – There is no envelope in the booklet. Where 615 – How do I get a copy of my state tax return?
do I send my return? 616 – What should I do if my federal tax return 751 – How do I cancel my registration as an LLC?
203 – What is and how do I qualify for the 752 – What tax forms do I use to file as an LLC?
was examined and changed by the IRS? 758 – If a corporation converted to an LLC during
nonrefundable renter’s credit? 617 – What are the current interest rates?
204 – I never received a Form W-2. What do I do? 619 – How do I report a change of address? the current year, is the corporation liable
205 – I have no withholding taken out. What do I for the tax as a corporation and an LLC tax/
do? fee in the same year?
206 – Do I have to attach a copy of my federal Business Entity Tax Information
return?
207 – Should I file my return even though I do Code Filing Assistance
not have the money to pay? 715 – If my actual tax is less than the minimum
208 – How do I figure my estimate tax payments? franchise tax, what figure do I put on
209 – I lived in California for part of the year. Do I line 23 of Form 100?
have to file a return? 717 – What are the tax rates for corporations?
210 – I do not live in California. Why do I have to 718 – How do I get an extension of time to file?
file a return? 722 – When do I have to file a short-period
211 – How do I figure my IRA deduction? return?

Page 30 FTB 3807 Booklet 1999