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California Free Printable 2018 Booklet 3808 - Manufacturing Enhancement Area Business Booklet for 2024 California Manufacturing Enhancement Area Business Booklet

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Manufacturing Enhancement Area Business Booklet
2018 Booklet 3808 - Manufacturing Enhancement Area Business Booklet

2018 Manufacturing Enhancement Area Business Booklet 3808 California Forms & Instructions Members of the Franchise Tax Board Betty T. Yee, Chair George Runner, Member Keely Bosler, Member This booklet contains: Form FTB 3808, Manufacturing Enhancement Area Credit Summary 2018 Instructions for Form FTB 3808 Manufacturing Enhancement Area Businesses References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and to the C ­ alifornia Revenue and Taxation Code (R&TC). Contents General Information . . . . . . . . . . . . . . . . . . .  2 How to Claim the Credit Carryover . . . . . . . .  3 Part I – Hiring Credit Carryover . . . . . . . . . .  3 Part II – Portion of Business Attributable to the Manufacturing Enhancement Area . .  4 Worksheet I, Income or Loss  Apportionment . . . . . . . . . . . . . . . . . . . . .  6 Instructions for Schedule Z – Computation of Credit Carryover Limitations . . . . . . . . . 8 Form FTB 3808, Manufacturing Enhancement Area Credit Summary . . . . 11 Schedule Z, Computation of Credit Carryover Limitations . . . . . . . . . . . . . . . . . . . . . . . 12 Standard Industrial Classification Manual, 1987 Edition (Partial Listing) . . . . . . . . . 13 Principal Business Activity Codes . . . . . . . . 15 How to Get ­California Tax Information . . . . . 18 General Information In general, for taxable years beginning on or after January 1, 2015, California law conforms to the Internal Revenue Code (IRC) as of January 1, 2015. However, there are continuing differences between California and federal law. When California conforms to federal tax law changes, we do not always adopt all of the changes made at the federal level. For more information, go to ftb.ca.gov and search for conformity. Additional information can be found in FTB Pub. 1001, Supplemental Guidelines to California Adjustments, the instructions for California Schedule CA (540 or 540NR), and the Business Entity tax booklets. The instructions provided with California tax forms are a summary of California tax law and are only intended to aid taxpayers in preparing their state income tax returns. We include information that is most useful to the greatest number of taxpayers in the limited space available. It is not possible to include all requirements of the California Revenue and Taxation Code (R&TC) in the instructions. Taxpayers should not consider the instructions as authoritative law. Repeal of Geographically Targeted Economic Development Area Tax Incentives The California legislature repealed and made changes to all of the Geographically Targeted. Economic Development Area Tax Incentives. Enterprise Zones (EZ) and Local Agency Military Base Recovery Areas (LAMBRA) were repealed on January 1, 2014. The Targeted Tax Areas (TTA) and Manufacturing Enhancement Areas both expired on December 31, 2012. For more information, go to ftb.ca.gov and search for repeal tax incentives. Expired Manufacturing Enhancement Area (MEA) The MEA has expired as of December 31, 2012. Taxpayers can no longer generate/incur MEA hiring credits for employees hired on or after January 1, 2013. The credit has expired. Page 2  FTB 3808 Booklet  2018 The taxpayer can claim the credit carryover from prior years. For more information, see R&TC Sections 17053.47(b)(1)(D) and 23622.8(b)(1)(D). Expired Manufacturing Enhancement Area Credits Carryover Period The portion of any MEA hiring credit remaining for carryover to taxable years beginning on or after January 1, 2014, shall be carried over only to the succeeding 10 taxable years if necessary, or until the credit is exhausted, whichever occurs first. Any hiring credits generated for employees hired on or before December 31, 2012, may be carried over to the succeeding 10 taxable years. Single-Sales Factor Formula R&TC Section 25128.7 requires all business income of an apportioning trade or business, other than an apportioning trade or business under R&TC Section 25128(b), to apportion its business income to California using the singlesales factor formula. For more information, get Schedule R, Apportionment and Allocation of Income, or go to ftb.ca.gov and search for single sales factor. However, business income apportioned to the MEA continues to be apportioned based on the property and payroll factors. Assignment of Credits Credit earned by members of a combined reporting group may be assigned to an affiliated corporation that is an eligible member of the same combined reporting group. A credit assigned may only be claimed by the affiliated corporation against its tax liability. For more information, see instructions for Schedule Z, Computation of Credit Carryover Limitations, on page 8, Assignment of Credit, or get form FTB 3544, Election to Assign Credit Within Combined Reporting Group, or form FTB 3544A, List of Assigned Credit Received and/or Claimed by Assignee, or go to ftb.ca.gov and search for credit assignment. Important: Affiliated corporations that received credits assigned under R&TC Section 23663, do not include the assigned credits received on this worksheet. Those credits are entered and tracked on form FTB 3544A. Pass-Through Entities For purposes of this booklet, the term “pass-through entity” refers to an S corporation, estate, trust, partnership, and limited liability company (LLC). References to “partnerships” include LLCs classified as partnerships. Introduction Economic Development Area (EDA) Tax Incentives California established four types of EDAs that have related tax incentives. These incentives were established to stimulate growth and development in selected areas that are economically depressed. EDA tax incentives applied only to certain business transactions that were undertaken after an EDA had received final designation from the California Department of Housing & Community Development (HCD). Final designation was when the HCD designated an area to be an EDA. Tax incentives were available to individuals and businesses operating or investing within the geographic boundaries of the following EDAs: • Enterprise Zones (repealed on January 1, 2014) • Local Agency Military Base Recovery Areas (repealed on January 1, 2014) • Manufacturing Enhancement Areas (designation expired on December 31, 2012) • Targeted Tax Areas (designation expired on December 31, 2012) Additional information on the EDAs can be found in the following FTB tax booklets: • EZ tax incentives, FTB 3805Z, Enterprise Zone Business Booklet • LAMBRA tax incentives, FTB 3807, Local Agency Military Base Recovery Area Business Booklet • TTA tax incentives, FTB 3809, Targeted Tax Area Business Booklet References in this booklet to the “MEA” are interpreted as “the boundaries of the former MEA as it existed on December 31, 2012.” Reporting Requirement California statutes require the Franchise Tax Board (FTB) to provide information to the California Legislature regarding the number of businesses using the EDA tax incentives, types of EDA tax incentives being used, and the EDAs in which the businesses are claiming the tax incentives. Complete items A through H on Side 1 of form FTB 3808, Manufacturing Enhancement Area Credit Summary, as applicable. This information will be used to meet the FTB’s statutory reporting requirement. Purpose This booklet provides specific information on the available MEA tax incentive. Taxpayers investing or operating within a former MEA may claim a hiring credit carryover. For more information see R&TC Sections 17053.47 and 23622.8. Use this booklet to determine the correct amount of hiring credit carryover deduction that a business may claim for operating or investing in a trade or business within a former MEA. Complete the worksheets and Schedule Z in this booklet for the MEA hiring credit carryover. Then enter the hiring credit carryover amount on form FTB 3808. Former Manufacturing Enhancement Area Designation California’s two former MEAs were the cities of Brawley and Calexico, located in Imperial County. These cities received their final designation as MEAs effective January 1, 1998. The MEA designation expired on December 31, 2012. The program offered a special tax incentive to encourage business and stimulate job creation in the area. The geographic boundaries of a former MEA were used to determine whether the tax incentive was available to a business in a specified location. For business eligibility or zone related information, including questions regarding former MEA geographic boundaries, contact the local zone program manager in which the business is located. Go to hcd.ca.gov and search for directory of zone contacts for Directory of Economic Development Areas. For information that is zone-specific, but not tax-specific, you may contact the H ­ CD. See page 18 for the HCD contact information. Forms List Forms referred to in this booklet include: Form 100 California Corporation Franchise or Income Tax Return Form 100S California S Corporation Franchise or Income Tax Return Form 100W California Corporation Franchise or Income Tax Return — Water’s-Edge Filers Form 109 California Exempt Organization Business Income Tax Return Form 540 California Resident Income Tax Return Long California Nonresident or Form 540NR Part-Year Resident Income Tax Return Form 541 California Fiduciary Income Tax Return Form 565 Partnership Return of Income Form 568 Limited Liability Company Return of Income Schedule CA California Adjustments —  (540) Residents Schedule CA California Adjustments —   (540NR) Nonresidents or Part-Year Residents Schedule P Alternative Minimum Tax and Credit Limitations FTB Pub. 1061 Guidelines for Corporations filing a Combined Report Schedule C S Corporation Tax Credits  (100S) Schedule K-1 Shareholder’s Share of Income,   (100S) Deductions, Credits, etc. Schedule K-1 Beneficiary’s Share of Income,   (541) Deductions, Credits, etc. Schedule K-1 Partner’s Share of Income,   (565) Deductions, Credits, etc. Schedule K-1 Member’s Share of Income,   (568) Deductions, Credits, etc. Schedule R Apportionment and Allocation of Income FTB 3544 Election to Assign Credit Within Combined Reporting Group FTB 3544A List of Assigned Credit Received and/or Claimed by Assignee Who Can Claim the Former MEA Tax Incentive? The MEA hiring credit carryover was available to individuals, sole proprietors, corporations, estates, trusts, and partnerships operating or investing in a business located within the designated former MEA. How to Claim the Credit Carryover To claim the MEA hiring credit carryover, complete form FTB 3808 and attach it to your California tax return. Attach a separate form FTB 3808 for each business you operate or invest in that is located within a former MEA. Also, complete the following schedule and/or worksheets to report credit carryovers incurred: • Corporations complete Schedule Z and all the worksheets, except for Worksheet I, Section B. • Sole proprietors complete Schedule Z and all the worksheets. • Trusts, estates and partnerships, complete Worksheet I, Section A. • Individual investors receiving pass‑through MEA credits, complete Worksheet I, Section B and Schedule Z. All other investors, complete Worksheet I, Section A and Schedule Z. Schedule Z is on Side 2 of form FTB 3808. To assist with the processing of the tax return, indicate that the business operates or invests within a former MEA by doing the following: Form 540 filers: Claim the MEA tax incentive on Form 540, lines 43 through 45, as applicable. Long Form Claim the MEA tax 540NR filers: incentive on Long Form 540NR, lines 58 through 60, as applicable. Form 100 filers: Claim the MEA tax ­incentive on Form 100, line 20, lines 24 through 26, as ­applicable. Form 100S filers: Claim the MEA tax incentive on Form 100S, line 18 and lines 22 through 24, as applicable. Form 100W filers: Claim the MEA tax incentive on Form 100W, line 20 and lines 24 through 26, as applicable. Form 109 filers: Check the “Yes” box for the MEA question I at the top of Form 109, Side 1. Be sure to keep all completed worksheets and supporting documents for your records. Form FTB 3808 – Instructions for items A through H • For corporations, estates, trusts, partnerships, LLCs classified as partnerships, exempt organizations, and sole proprietors, complete items A through H. • Investors of pass-through entities, complete items A through D. See form FTB 3808, Side 1 for more information. Standard Industrial Classification (SIC) and Principal Business Activity (PBA) Codes To qualify for the MEA hiring credit, you must be engaged in a trade or business within the selected SIC listed on pages 13 and 14 of this booklet. Enter the SIC code of the establishment that qualifies you to take this credit on form FTB 3808, Side 1. If your business has more than one establishment, and if more than one of them qualifies you to take this credit, enter the SIC code that best represents your primary qualifying ­establishment. The PBA codes are based on the North American Industry Classification System published by the United States Office of Management and Budget. The PBA codes are listed on pages 15 through 17. Enter the PBA code of your principal activity on form FTB 3808, Side 1. Part I – Hiring Credit Carryover Line 1  Hiring Credit Carryover The MEA has expired as of December 31, 2012. Taxpayers can no longer generate/incur MEA hiring credits for employees hired on or after January 1, 2013. Although qualified taxpayers can no longer generate/incur MEA hiring credits for qualified employees hired prior to the MEA expiration date for wages paid or incurred within the 60-month period of the MEA hiring credit, they can claim the hiring credit carryover from prior years. FTB 3808 Booklet  2018  Page 3 Credit Limitations • The amount of hiring credit carryover claimed may not exceed the amount of tax on the MEA business income in any year. Use Schedule Z to compute the credit limitation. • The portion of any MEA hiring credit remaining for carryover to taxable years beginning on or after January 1, 2014, shall be carried over only to the succeeding 10 taxable years if necessary, or until the credit is exhausted, whichever occurs first. Any hiring credits generated for employees hired on or before December 31, 2012, may be carried over to the succeeding 10 taxable years. Record Keeping Retain a copy of the VoucherCert 10-7 and the documentation given to the vouchering agency. In addition, for each qualified employee, keep records and a schedule of the first 60 months of employment showing (at least) the following: • Employee’s name. • Date the employee was hired. • The employee’s address at the time of hire. • Number of hours the employee worked for each month of employment. • Smaller of the hourly rate of pay for each month of employment or 150% of the minimum wage. • Location of the employee’s job site and duties performed. • Total qualified wages per month for each month of employment. Part II – Portion of Business Attributable to the Manufacturing Enhancement Area The MEA tax incentive is limited to the tax on business income attributable to operations within the former MEA area. If the business is located within and outside a former MEA, or in more than one former MEA, you must determine the portion of total business income that is attributable to each former MEA. Business Income vs. Nonbusiness Income Only business income is apportioned to the former MEA to determine the incentive limitation. Business income is defined as income arising from transactions and activities in the regular course of the trade or business. Business income includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the regular trade or business operations. Nonbusiness income is all income other than business income. See Cal. Code Regs., tit. 18 section 25120 for further references and examples of nonbusiness income. Page 4  FTB 3808 Booklet  2018 For corporations and entities doing business in and outside of the former Manufacturing Enhancement Area, use Worksheet I, Section A, to determine the MEA apportionment factor to determine the amount of business income attributable to the former MEA. Pass-through entities must report to their shareholders, beneficiaries, partners, and members the following items: 1. The distributive (or pro-rata for S corporations) share of the business income apportioned to the former MEA. 2. The distributive (or pro-rata for S corporations) share of the business capital gains and losses apportioned to the former MEA included in item 1. 3. The distributive (or pro-rata for S corporation) share of the former MEA property and payroll to corporate partners, members, shareholders, beneficiaries. Report these items as other income on Schedule K-1 (100S, 541, 565, or 568). For an individual, use Worksheet I, Section B to determine business income attributable to the former MEA. Business income includes but is not limited to, California business income or loss from federal Form 1040, Schedules C,D,E,F, and California Schedule D-1, Sales of Business Property, (or federal Form 4797, Sales of Business Property, if California Schedule D-1 is not needed), as well as wages. Be sure to include casualty losses, disaster losses, and any business deductions reported on federal Form 1040, Schedule A as itemized deductions. Generally, all income which arises from the conduct of trade or business operations of a taxpayer is business income. If you elected to claim part or all of your current year disaster loss under IRC Section 165(i)(1) on prior year’s tax return, do not include the amount of the loss that was claimed on prior year’s tax return in your current year business income from the former MEA. Apportionment Business income is apportioned to a former MEA by multiplying the total California business income of the taxpayer by a fraction. The fraction consists of the numerator which is the property factor plus the payroll factor, and the denominator, which is two. If a taxpayer conducts business in more than one former MEA, the MEA apportionment factor and credit limitations are computed separately for each former MEA. Property Factor Property is defined as the average value of all real and tangible personal property owned or rented by the business and used during the taxable year to produce business income. Property owned by the business is valued at its original cost. Original cost is the basis of the property for federal income tax purposes (prior to any federal adjustment) at the time of acquisition by the business, adjusted for subsequent capital additions or improvements and partial dispositions because of sale or exchange. Allowance for depreciation is not considered. Rented property is valued at eight times the net annual rental rate. The net annual rental rate for any item of rented property is the total rent paid for the property, less aggregate annual subrental rates paid by subtenants. Payroll Factor Payroll is defined as the total amount paid to the business’s employees for compensation for the production of business income during the taxable year. Compensation means wages, salaries, commissions, and any other form of payment paid directly to employees for personal services. Payments made to independent contractors or any other person not properly classified as an employee are excluded. Compensation Within the former MEA Compensation is considered to be within the former MEA if any of the following tests are met: 1. The employee’s services are performed within the geographical boundaries of the former MEA. 2. The employee’s services are performed within and outside the former MEA, but the services performed outside the former MEA are incidental to the employee’s service within the former MEA. Incidental means any temporary or transitory service rendered in connection with an isolated transaction. 3. If the employee’s services are performed within and outside the former MEA, the employee’s compensation is attributed to the former MEA if any of the following tests are met: A. The employee’s base of operations is within the former MEA. B. There is no base of operations in any other part of the state in which some part of the service is performed, and the place from which the service is directed or controlled is within the former MEA. C. The base of operations or the place from which the service is directed or controlled is not in any other part of the state in which some part of the service is performed and the employee’s ­residence is within the former MEA. Base of operations is the permanent place from which the employees start work and customarily return in order to receive instruction from the taxpayer or communications from their customers or persons; to replenish stock or other material; to repair equipment; or to perform any other functions necessary in the exercise of their trade or profession at some other point or points. Corporations Filing a Combined Report When determining the income attributable to the former MEA, the business income of each corporation doing business in the former MEA is the business income apportioned to California as determined under combined report mechanics. For more information on combined reports, get FTB Pub. 1061. Each corporation computes the income attributable to the former MEA by multiplying California business by the MEA apportionment factor computed in Worksheet I, Section A. The MEA property and payroll factors used in the determination of MEA business income includes only the taxpayer’s California amounts in the denominator. Each corporation doing business in the former MEA compute the business income attributable to the former MEA according to their own apportioned California business income and interstate apportionment factors. Example: Computation of MEA business income apportioned to each entity operating within the former MEA Parent Corporation A has two subsidiaries, B and C. Corporations A and B operate within a former MEA. The combined group operates within and outside California and apportions its income to California using Schedule R. Assume the combined group’s business income apportioned to California was $1,000,000 and Corporation A and B’s share of California business income is $228,000 and $250,000 respectively. Corporation A and B’s separate MEA and separate California property and payroll factor amounts are shown in the example below. Business income apportioned to the former MEA was determined as follows: A B Property Factor MEA Property $1,000,000 $  800,000 California Property $1,000,000 $1,200,000   Apportionment % 100%   66.66% Payroll Factor MEA Payroll $  800,000 $   800,000 California Payroll $  800,000 $1,000,000   Apportionment % 100% 80% Average Apport. % 100%   73.33% (Property + Payroll Factors)     2 Apportioned Business Income MEA Business Income $  228,000 $  250,000 $  228,000 $  183,325 Instructions for Worksheet I Income or Loss Apportionment – Manufacturing Enhancement Area If the business operates solely within a single former MEA and all its property and payroll are solely within that single former MEA, enter 100% (1.00) on Section A, line 4, column (c). Do not complete the rest of Worksheet I. Section A – Income Apportionment Use Worksheet I, Section A, Income Apportionment, to determine the amount of business income apportioned to the former MEA. The apportioned MEA business income determines the amount of the tax incentive that can be used. A taxpayer’s MEA business income is its California business income multiplied by the specific MEA apportionment percentage computed in Worksheet I, Section A. Property Factor When determining the income apportioned to the former MEA, the numerator of the property factor is the average value of the real and tangible personal property owned or rented by the business and used within the former MEA during the taxable year to produce MEA business income, see Worksheet I, Section A, column (b). The denominator of the property factor is the total average value of all the taxpayer’s real and tangible personal property owned or rented and used during the taxable year within California, see Worksheet I, Section A, column (a). Payroll Factor When determining income apportioned to the former MEA, the numerator of the payroll factor is the taxpayer’s total compensation paid to the employees for working within the former MEA during the taxable year, see Worksheet I, Section A, column (b). The denominator of the payroll factor is the taxpayer’s total compensation paid to employees working in California. See Worksheet I, Section A, column (a). Section B – Income or Loss Apportionment Form 540 and Long Form 540NR filers, use Worksheet I, Section B to determine the amount to enter on Schedule Z, Part I, line 1 and line 3. Do not include disaster losses in any amounts used in the table. Only ­California source business income is apportioned to the former MEA. The first step is to determine which portion of the taxpayer’s net income is “business income” and which portion is “nonbusiness income,” since only business income is apportioned to the former MEA. See Part II on page 4, Portion of Business Attributable to the Manufacturing Enhancement Area, for a complete discussion of business and nonbusiness income. Business income or loss reported on federal Form 1040 Schedules C, C-EZ, E, F, and other schedules are reported on lines 6 through line 9. Line 11 and line 12 report business gains or losses reported on Schedule D, California Capital Gain or Loss Adjustment, and California Schedule D-1 (or federal Form 4797, if California Schedule D-1 is not needed). All business income and losses should be adjusted for any differences between California and federal amounts as shown on the Schedule CA (540 or 540NR). Part I – Individual Income and Expense Items Wages Taxpayers with wages from a company located within and outside the former MEA must determine the MEA wage income by entering the percentage of the time that they worked within the former MEA in column (b). The percentage of time should be for the same period the wages entered on line 1 were earned. This percentage must be determined based on their record of time and events such as a travel log or entries in a daily planner. Part II – Pass-Through Income or Loss Individuals with a K-1 The individual partner, member, or shareholder completes Worksheet I, Section B, Part II, Pass-Through Income or Loss, and Schedule Z, Computation of Credit Limitation. Multiple Pass-Through Entities If you are a shareholder, beneficiary, partner, or member in multiple pass-through entities with businesses located within and outside the former MEA from which you received a MEA tax incentive, see the example below for computing business income in the the former MEA. Example: Trade or business income from Schedule K-1 Entity’s MEA MEA  Pass-through (100S, 541, apportionment apportioned   entity 565, or 568) percentage income  ABC, Inc. $40,000  A, B, & C   30,000  ABC, LLC   10,000 80% $32,000 10%   3,000 50%   5,000  Total $40,000 Part III – Taxpayer’s Trade or Business Business Income or Loss Use business income or loss from federal Form 1040 Schedules C, C-EZ, E, and F, plus ­California adjustments from Schedule CA (540 or 540NR) for each trade or business. Also, include business capital gains and losses from Schedule D and business gains and losses from Schedule D-1 as adjusted on Schedule CA (540 or 540NR). Income Computation Located Entirely Within the former MEA Line 6 – Line 9: If your business operation reported on federal Form 1040 Schedule C, C‑EZ, E, F, or other schedule is entirely within the former MEA, enter the income or loss from this activity in column (a) and enter 1.00 in column (b). FTB 3808 Booklet  2018  Page 5  Worksheet I   Income or Loss Apportionment – Manufacturing Enhancement Area Section A  Income Apportionment Use Worksheet I, Section A, if your business has net income from sources within and outside the former MEA. PROPERTY FACTOR (a) Total within California (b) Total within the former MEA (c) Percentage within the former MEA column (b) ÷ column (a) 1 Average yearly value of owned real and tangible personal property used in the business (at original cost). See instructions for more information. Exclude property not connected with the business and the value of construction in progress. Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . Furniture and fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . Delivery equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other tangible assets (attach schedule) . . . . . . . . . . . . . Rented property used in the business. See instructions . Total property values . . . . . . . . . . . . . . . . . . . . . . . . . . PAYROLL FACTOR 2 Employees’ wages, salaries, commissions, and other compensation related to business income included in the tax return. Total payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Total percentage - sum of the percentages in column (c) 4 Average apportionment percentage (1/2 of line 3). Enter here and on form FTB 3808, Side 1, line 2 . . . . . . 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 former MEA. 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 former MEA, the average apportionment percentage would be computed by dividing line 3 by one instead of by two as normally instructed. Line 11 and Line 12: If the gain or loss reported on Schedule D or Schedule D-1 as adjusted on Schedule CA (540 or 540NR) was attributed to an asset used in an activity conducted entirely within the former MEA, enter the gain or loss reported in column (a) and enter 1.00 in column (b). Located Entirely Within California Line 6 – Line 9: If your business operation reported on federal Form 1040 Schedule C, C‑EZ, E, F, or other schedule is entirely within ­California, enter the income or loss from this activity in column (a). To determine the apportionment percentage in column (b), complete Worksheet I, Section A. Enter the percentage from Worksheet I, Section A, line 4, column (c) on Worksheet I, Section B, column (b). Line 11 and Line 12: If the gain or loss reported on Schedule D or Schedule D-1 as adjusted on Schedule CA (540 or 540NR) was attributed to an asset used in an activity conducted entirely within ­California, enter the gain or loss reported in column (a). To determine the apportionment percentage in column (b), complete Worksheet I, Section A. Enter the percentage from Worksheet I, Section A, line 4, column (c) on Worksheet I, Section B, column (b). Page 6  FTB 3808 Booklet  2018 Located Within and Outside California and the former MEA Line 6 – Line 9: If your business operation reported on federal Form 1040 Schedule C, C‑EZ, E, F, or other schedule is within and outside the former MEA and C ­ alifornia, get California Schedule R and complete line 1 through line 18b and line 28 through line 31. Enter the amount from Schedule R, line 18b and line 31 on column (a) of this worksheet. To determine the apportionment percentage in column (b), complete Worksheet I, Section A. Enter the percentage from Worksheet I, Section A, line 4, column (c) on Worksheet I, Section B, column (b). When computing Schedule R, disregard any reference to Form 100, Form 100W, Form 565, or Form 568. Also, disregard any reference to Schedules R-3, R-4, or R‑5. Nonresidents that have an apportioning business that operates within the former MEA should have already computed Schedule R, and can use those amounts when that schedule is referenced. Residents must complete a Schedule R in order to determine their California source business income. Line 11 and Line 12: If the gain or loss reported on Schedule D or Schedule D‑1 as adjusted on Schedule CA (540 or 540NR) was attributed to an asset used in an activity conducted within and outside the former MEA and ­California, get Schedule R and complete Schedule R-1. Multiply the gain or loss reported by the apportionment percentage on Schedule R-1, Part A, line 2 or Part B, line 5 and enter the result in column (a). To determine the apportionment percentage in column (b), complete Worksheet I, Section A. Enter the percentage from Worksheet I, Section A, line 4, column (c) on Worksheet I, Section B, column (b). Line 14 – If, in computing your income or loss, the result on line 14, column (c), is a negative amount, you do not have any business income attributable to the former MEA. You cannot use any of the MEA hiring credit carryover in the current taxable year. If the amount on line 14, column (c), is a positive amount, enter the amount on Schedule Z, Part I, line 1 and line 3 (skip line 2).  Worksheet I  Income or Loss Apportionment – Manufacturing Enhancement Area (continued) Section B  Income or Loss Apportionment Part I  Individual Income and Expense Items. See instructions. (a) (b) (c) Amount Percentage of time providing Apportioned amount services in the former MEA (a) x (b)  1 Wages . . . . . . . . . . . . . . . . . . . . . . . . .  2 Employee business expenses . . . . . . . .   3 Total. Combine line 1, column (c) and line 2, column (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 former MEA from Schedule K-1 (100S, 541, 565, or 568) including capital gains and losses   4  5 Total. Add line 4, column (b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part III  Taxpayer’s Trade or Business. See instructions. (a) Business income or loss (b) (c) Apportionment percentage Apportioned income or loss for the former MEA (a) x (b)  6 Schedule C or C-EZ . . . . . . . . . . . . . . .  7 Schedule E (Rentals) . . . . . . . . . . . . . .  8 Schedule F . . . . . . . . . . . . . . . . . . . . . .  9 Other business income or loss . . . . . . . 10 Total. Add line 6 through line 9, column (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (a) (b) Business gain Apportionment percentage or loss for the former MEA (c) Apportioned gain or loss (a) x (b) 11 Schedule D . . . . . . . . . . . . . . . . . . . . . . 12 Schedule D-1 . . . . . . . . . . . . . . . . . . . . 13 Total. Add line 11, column (c) and line 12, column (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Total. Add line 3, line 10, and line 13, column (c), and line 5, column (b). See instructions . . . . . . . . . . . . . . . . FTB 3808 Booklet  2018  Page 7 Schedule Z – Computation of Credit Carryover Limitations Credit Carryover Limitations The amount of the MEA hiring credit carryover you can claim on your ­California tax return is limited by the amount of tax attributable to the MEA business income. The amount of tax attributable to the MEA business income is computed in this schedule. For corporations and other entities doing business in the MEA, the MEA business income is computed in this schedule using the MEA apportionment factor formula computed on Worksheet I, Section A. For individuals, the MEA business income is computed on Worksheet I, Section B. Assignment of Credit Credit earned by members of a combined reporting group may be assigned to an affiliated corporation that is an eligible member of the same combined reporting group. A credit assigned may only be claimed by the affiliated corporation against its tax liability. The eligible assignee shall be treated as if it originally generated the assigned credit. Any credit limitations or restrictions that applied to the assignor will also apply to the eligible assignee. The amount of MEA credit carryover you may claim on your California tax return is limited to the tax attributable to a specific former MEA. For zone credits assigned, the assignee must have a tax liability as a result of income generated in the same zone that the original credit was generated. For example, if the original credit was generated in the former Calexico MEA of the assignor, the assignee must have a tax liability on the income attributable to the former Calexico MEA in order to use the assigned credit. For more information, get form FTB 3544, or form FTB 3544A, or go to ftb.ca.gov and search for credit assignment. Other Limitations If a taxpayer owns an interest in a disregarded business entity, the amount of the credit carryover that can be utilized is limited to the difference between the taxpayer’s regular tax computed with the income of the disregarded entity, and the taxpayer’s regular tax computed without the income of the disregarded entity. Partnerships allocate the credit among the partners according to the partner’s distributive share as determined in a written partnership agreement. See R&TC Section 17039(e)(2). The MEA hiring credit carryover you are otherwise eligible to claim may be limited. Do not apply the credit against the minimum franchise tax (corporations and S corporations), the annual tax (partnerships and QSub) the alternative minimum tax (corporations, exempt organizations, individuals, and fiduciaries), the built-in gains tax (S corporations), or the excess net passive income tax (S corporations). Refer to the credit instructions in your tax booklet for more information. Page 8  FTB 3808 Booklet  2018 S Corporations and the Application of the MEA Hiring Credit An S corporation may use its MEA hiring credit carryover to reduce the MEA tax at both the corporate and shareholder levels. Carryover If the amount of hiring credit carryover available this year exceeds your MEA tax, you may carry over any excess credit to future years. For taxable years beginning on or after January 1, 2014, the carryover period is 10 years if necessary, or until the credit is exhausted, whichever occurs first. Apply the carryover to the earliest taxable year possible. In no event can the credit be carried back and applied against a prior year’s tax. Generally, the credit cannot be transferred to another taxpayer, unless: • There was a qualifying merger. • The credit qualifies under R&TC Section 23663 for assignment to an affiliated corporation. For additional information, get form FTB 3544, or form FTB 3544A. If a C corporation had unused credit carryovers when it elected S corporation status, the carryovers were reduced to 1/3 and transferred to the S corporation. The remaining 2/3 were disregarded. The allowable carryovers may be used to offset the 1.5% tax on net income in accordance with the respective carryover rules. These C corporation carryovers may not be passed through to shareholders. For more information, get Schedule C (100S), S Corporation Tax Credits. Credit Code Use credit code 211 to claim the MEA hiring credit carryover on your tax return. Using an incorrect code may cause a delay in allowing the credit. Instructions for Schedule Z – Computation of Credit Carryover Limitations Reporting Requirements of S Corporations, Estates, Trusts, and Partnerships • Partnerships and LLC’s treated as partnerships do not complete Schedule Z. However, the partners and members of these types of entities should compute their MEA income from all sources by completing the Schedule Z in order to determine the amount of the MEA hiring credit carryover that they may claim on their C ­ alifornia tax return. For individual partners, report the distributive share of all the business income apportioned to the former MEA. For corporate partners, report the distributive share of the MEA property and payroll. Report these items as other information on Schedule K-1 (565). • S corporations and their shareholders must complete Schedule Z. • Report to shareholders, beneficiaries, partners, and members, the distributive or pro-rata share of business income, loss, and deductions apportioned to the former MEA; and • Separately state any distributive or pro-rata share of business capital gains and losses apportioned to the former MEA included in the amount above. S Corporations Complete only Part I and Part III of Schedule Z if your entity-level tax before credits is more than the minimum franchise tax. Corporations and S Corporations subject to the minimum franchise tax only Complete only Part IV of Schedule Z. All others: Complete Part I and Part II of Schedule Z. Part I – Computation of Credit Limitations Line 1 – Enter all trade or business income. See Part II, Portion of Business Attributable to the former MEA, for the definition of business income. Line 2 – If your business is located entirely within the former MEA, enter 1. Specifically, this percentage is the apportionment percentage computed by the entity using Worksheet I, Section A, and it represents the percentage of the entity’s business income attributable to the former MEA. Line 4a – Compute the tax as if the former MEA taxable income represented all of your taxable income. Individuals Use the tax table or tax rate schedule in your tax booklet for your filing status. Exempt Organizations Use the applicable tax rate in your tax booklet. Corporations and S Corporations Use the applicable tax rate. If the amount on line 4a is the minimum franchise tax ($800), you cannot use your MEA hiring credit carryover this year. You should complete Part IV of Schedule Z to compute the amount of credit carryover. Example: Determination of MEA Income for Shareholders, Partners, or Members of Pass‑Through Entities John Anderson is vice president of ABC, Inc., an S corporation that has two locations: one within a former MEA and one outside a former MEA. Eighty percent (80%) of the S corporation’s business income is attributable to the former MEA. This percentage was determined by ABC, Inc. using Worksheet I, Section A, when ABC’s S corporation tax return (Form 100S) was prepared. John divides his time equally (50/50) between the two offices of ABC, Inc. Jackie Anderson (John’s spouse/RDP) works for ABC, Inc. at its office located in the former MEA. John and Jackie Anderson have the following items of ­California income and expense for the 2018 taxable year: John’s salary from ABC, Inc. . . . . . . . $100,000 Jackie’s salary from ABC, Inc. . . . . . . . . 75,000 Interest on savings account . . . . . . . . . . . 1,000 Dividends . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 Schedule K-1 (100S) from ABC, Inc.:   Ordinary income . . . . . . . . . . . . . . . . 40,000 John’s unreimbursed employee   expenses from Schedule A . . . . . . . . . (2,000) The Anderson’s MEA income (total amount to be reported on Schedule Z, Part I, line 3) is computed as follows: John’s MEA salary   ($100,000 x 50%) . . . . . . . . . . . . . . $50,000 Jackie’s MEA salary   ($75,000 x 100%) . . . . . . . . . . . . . . . 75,000 Pass-through ordinary income from   ABC, Inc. ($40,000 x 80%) . . . . . . . . 32,000 John’s unreimbursed employee business   expenses ($2,000 x 50%) . . . . . . . . (1,000) Total MEA income   (Schedule Z, Part I, line 3) . . . . . . . $156,000 The standard deduction and personal or dependency exemptions are not included in the computation of MEA business income since they are not related to trade or business activities. John and Jackie must compute the tax (to be entered on Schedule Z, Part I, line 4a) on the total MEA income of $156,000 (as if it represents all of their income). Line 4b – Corporations and S Corporations: If the amount on line 4b is the minimum franchise tax ($800), you cannot use your MEA hiring credit carryover this year. You should complete Part IV of Schedule Z to compute the amount of credit carryover. Part II – Limitation of Credits for Corporations, Individuals, Estates, and Trusts Individuals that received a Schedule K-1, complete Schedule Z, Part II, using the information from the Schedule K-1. Corporations, individuals, estates, or trusts, use Schedule Z, Part II. Corporations and S corporations that are subject to paying only the minimum franchise tax, use Schedule Z, Part IV. Line 6A, column (e) – Enter the amount from line 5. This is the amount of limitation based on the tax on MEA business income. Line 6A, column (f) – Enter the amount of credit carryover that is used on Schedule P (100, 100W, 540, 540NR, or 541), column (b). The amount cannot be greater than the amount on line 6A, column (e) or the amount computed on line 6B, column (d). Enter this amount on form FTB 3808, Side 1, line 1. Line 6B, column (b) – Enter the amount of the total prior year carryover credit. This is the amount of credit that was previously figured on Worksheet I in the prior year, minus the amount that was allowed to be taken on the prior year tax return. Line 6B, column (c) – Enter the amount of credit assigned to affiliated corporations that are members of the same combined reporting group from form FTB 3544, column (g). Only C corporations who completed the form will enter an amount in this column. Individuals, and Estates and Trusts, leave blank and go to column (d) instructions. figured on Worksheet I in the prior year, minus the amount that was allowed to be taken on the prior year tax return). Line 7, column (c) – Enter the amount of credit carryover that was used by the S corporation in the current year to offset its 1.5% entity-level tax (3.5% for financial S corporations). Enter this amount on form FTB 3808, Side 1, line 1. Line 7, column (d) – Subtract the amount in column (c) from the amount in column (b). This is the amount of credit that can be carried over to future years and used by the S corporation. Part IV – Limitation of Credits for Corporations and S Corporations Subject to Paying Only the Minimum Franchise Tax Use Part IV of Schedule Z if you are a corporation or S corporation subject to paying only the minimum franchise tax. Line 8, column (b) – Enter the amount of the total prior year carryover of the credit. This is the amount of credit that was previously figured on Worksheet I in the prior year, minus the amount that was allowed to be taken on the prior year tax return. Line 8, column (c) – Enter the amounts of credits assigned to affiliated corporations that are members of the same combined reporting group from form FTB 3544, column (g). Only C corporations who completed the form will enter an amount in this column. S corporations, leave blank and go to column (d) instructions. Line 8, column (d) – Add the amount of the total prior year carryover on line 8, column (b), then subtract the amount of credit assigned on line 8, column (c). This is the amount of credit that can be carried over to future years. Line 6B, column (d) – Add the amount of the total prior year carryover on line 6B, column (b), then subtract the amount of the total credit assigned on line 6B, column (c), if any. Line 6B, column (e) – Compare the amounts on line 6A, column (e) and line 6A, column (f). Enter the smaller amount. Line 6B, column (g) – Subtract the amount on line 6B, column (e) from the amount on line 6B, column (d). Enter the result on line 6B, column (g). This is the amount of credit that can be carried over to future years. This carryover includes both the Schedule P (100, 100W, 540, 540NR, or 541) limitation and the limitation based on MEA business income. Part III – Limitation of Credits for S Corporations Only Use Part III of Schedule Z only if you are an S corporation. Line 7, column (b) – Enter the amount of the total prior year carryover of the credit (this is the amount of credit that was previously Example: Part II The ABC Business has $8,000 of tax. The business computed a credit limitation based on the MEA income of $7,000 on Schedule Z, line 5. The business has the following credits: Hiring credit  —  a $300 carryover from a prior year Schedule Z, Part II would be computed as follows: Part II  Limitation of Credits for Corporations, Individuals, Estates, and Trusts. See instructions. (a) Credit name 6  Hiring credit (b) Total prior year carryover (c) Total credit assigned from form FTB 3544, col. (g) (d) Total credit col. (b) minus col. (c) A B 300 –0– 300 (e) Limitation based on MEA business income (f) Credit used on Sch. P can never be greater than col. (d) or col. (e) 7,000 300 300 (g) Total credit carryover col. (d) minus col. (e) –0– FTB 3808 Booklet  2018  Page 9 THIS PAGE INTENTIONALLY LEFT BLANK Visit our website: ftb.ca.gov Page 10  FTB 3805Z Booklet  2018 TAXABLE YEAR 2018 Manufacturing Enhancement Area Credit Summary Attach to your California tax return. Name(s) as shown on return CALIFORNIA FORM 3808  SSN or ITIN   CA Corporation no.   FEIN v CA Secretary of State (SOS) file number Qualified taxpayer’s SIC code. See instructions.   ___ ___ ___ ___ A. Check the appropriate box for your entity type:  Individual   Estate   Trust   C corporation    S corporation    Partnership  Exempt organization         Limited liability company      Limited liability partnership B. Enter the name of the Manufacturing Enhancement Area (MEA) business: C. Enter the address (actual location) where the MEA business is conducted: D. Enter the name of the MEA in which the business and/or investment activity is located. E. Enter the six-digit Principal Business Activity Code of the MEA Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  F. Total number of employees in the MEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G. Gross annual receipts of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . H. Total asset value of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part I  Hiring Credit Carryover. (Complete Schedule Z on Side 2 before you complete this part.) 1 Hiring credit carryover from Schedule Z, line 6A, column (f) or line 7, column (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Part II  Portion of Business Attributable to the Manufacturing Enhancement Area. See Instructions. 2 Enter the average apportionment percentage of your business that is in the former MEA from Worksheet I, Section A, line 4. If your operation is entirely within one former MEA, the average apportionment percentage is 100% (1.00) . . . . . . . . . . 2 For Privacy Notice, get FTB 1131 ENG/SP. 7571183 FTB 3808   2018  Side 1 Schedule Z Computation of Credit Carryover Limitations — Manufacturing Enhancement Area Part I  Computation of Credit Limitations. See instructions.   1 Trade or business income. Individuals: Enter the amount from Worksheet I, Section B, line 14, column (c) on this line and on line 3 (skip line 2). See instructions. Corporations which file a combined report, enter the taxpayer’s business income apportioned to California (see form FTB 3808, Part II instructions) . . . . . . . . . . . .    2 Corporations: Enter the average apportionment percentage from Worksheet I, Section A, line 4. See instructions . .   3 Multiply line 1 by line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   4 a Compute the amount of tax due using the amount on line 3. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4a   b Enter the amount of tax from Form 540, line 35; Long Form 540NR, line 42; Form 541, line 21; Form 100, line 23; Form 100W, line 23; Form 100S, line 21; or Form 109, line 10. Corporations and S corporations, see instructions . . . . . . . . . . 4b   5 Enter the smaller of line 4a or line 4b. This is the limitation based on the MEA income. Go to Part II, Part III, or Part IV. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1 2 3 5 Part II  Limitation of Credits for Corporations, Individuals, Estates, and Trusts. See instructions. (a) Credit name 6  Hiring credit (b) Total prior year carryover (c) Total credit assigned from form FTB 3544, col. (g) (d) Total credit col. (b) minus col. (c) (e) Limitation based on MEA business income (f) Credit carryover used on Sch. P can never be greater than col. (d) or col. (e) (g) Total credit carryover col. (d) minus col. (e) A B Part III  Limitation of Credits for S Corporations Only. See instructions. (a) Credit name (b) Total prior year carryover (c) Credit carryover used this year by S corporation (d) Carryover col. (b) minus col. (c) 7  Hiring credit Part IV  Limitation of Credits for Corporations and S Corporations Subject to Paying Only the Minimum Franchise Tax. See instructions. (a) Credit name (b) Total prior year carryover (c) Total credit assigned from form FTB 3544, col. (g) 8  Hiring credit Refer to page 3 for information on how to claim the credit carryover. Side 2  FTB 3808  2018 7572183 (d) Total credit carryover sum of col. (b) minus col. (c) Standard Industrial Classification Manual, 1987 Edition (Partial Listing) The Standard Industrial Classification (SIC) Manual classifies business activities based upon establishments, which are defined in the SIC Manual as an economic unit, generally at a single physical location, where business is conducted, or where services or industrial operations are performed. A taxpayer’s enterprise may consist of more than one establishment. The SIC Manual provides the following examples of establishments: A factory, mill, store, hotel, movie theater, mine, farm, ranch, bank, railroad depot, airline terminal, sales office, warehouse, or central administrative office. Where distinct and separate economic activities are performed at a single physical location (such as construction activities operated out of the same physical location as a lumber yard), each activity should be treated as a separate establishment where: (1) No one industry description in the SIC Manual includes such combined activities; (2) The employment in each economic activity is significant; and (3) Separate reports are prepared on the number of employees, their wages and salaries, sales or receipts, property and equipment, and other types of financial data, such as financial statements, job costing, and profit center accounting. The SIC Manual is organized using a hierarchical structure. First by division, next by two-digit major groups within each division, then by three-digit industry groups within each major group, and finally by four-digit industry codes within each industry group. For purposes of this publication, SIC Codes 0211 through 0291, Code 0723, or Codes 2011 through 3999 are listed since only taxpayers with establishments in these industry codes qualify for the MEA hiring credit. The complete Standard Industrial Classification Manual, 1987 Edition, is available for purchase from: NATIONAL TECHNICAL INFORMATION SERVICE 5301 Shawnee Road Alexandria, Virginia 22312 Order No. PB 87-100012 Or to view this manual, go to osha.gov and search for SIC code. The four-digit industry codes within Division D of the SIC Manual are: (nec means “not elsewhere classified”) 3291 Abrasive products 2891 Adhesives & sealants 2879 Agricultural chemicals, nec 3563 Air & gas compressors 3728 Aircraft parts & equipment, nec 3724 Aircraft engines & engine parts 3721 Aircraft 2812 Alkalies & chlorine 3354 Aluminum extruded products 3355 Aluminum rolling & drawing, nec 3365 Aluminum foundries 3353 Aluminum sheet, plate, & foil 3363 Aluminum die-casting 3483 Ammunition, except for small arms, nec 3826 Analytical instruments 0273 Animal aquaculture 0279 Animal specialties, nec 2077 Animal & marine fats & oils 2387 Apparel belts 2389 Apparel & accessories, nec 3446 Architectural metal work 3292 Asbestos products 2952 Asphalt felts & coatings 2951 Asphalt paving mixtures & blocks 3581 Automatic vending machines 2396 Automotive & apparel trimmings 3465 Automotive stampings 2673 Bags: plastic, laminated, & coated 2674 Bags: uncoated paper & multiwall 3562 Ball & roller bearings 0211 Beef cattle feedlots 0212 Beef cattle, except feedlots 2063 Beet sugar 2836 Biological products except diagnostic substances 2782 Blankbooks & looseleaf binders 3312 Blast furnace & steel mills 3564 Blowers & fans 3732 Boat building & repairing 3452 Bolts, nuts, rivets, & washers 2731 Book publishing 2732 Book printing 2789 Bookbinding & related work 2086 Bottled & canned soft drinks 2342 Bras, girdles, & allied garments 2051 Bread, cake, & related products 3251 Brick & structural clay tile 2211 Broadwoven fabric mills, cotton 2221 Broadwoven fabric mills, manmade 0251 Broiler, fryer, and roaster chickens 2231 Broadwoven fabric mills, wool 3991 Brooms & brushes 3995 Burial caskets 3578 Calculating & accounting equipment 2064 Candy & other confectionery products 2062 Cane sugar refining 2033 Canned fruits & vegetables 2091 Canned & cured fish & seafood 2032 Canned specialties 2394 Canvas & related products 3955 Carbon paper & inked ribbons 2895 Carbon black 3624 Carbon & graphite products 3592 Carburetors, pistons, rings, & valves 2273 Carpets & rugs 2823 Cellulosic manmade fiber 3241 Cement, hydraulic 3253 Ceramic wall & floor tile 2043 Cereal breakfast foods 2022 Cheese, natural & processed 2899 Chemical preparations, nec 2067 Chewing gum 2131 Chewing & smoking tobacco 0252 Chicken eggs 2066 Chocolate & cocoa products 2111 Cigarettes 2121 Cigars 3255 Clay refractories 2295 Coated fabrics, not rubberized 3316 Cold finishing of steel shapes 2754 Commercial printing, gravure 2752 Commercial printing, lithographic 2759 Commercial printing, nec 3582 Commercial laundry equipment 3646 Commercial lighting fixtures 3669 Communication equipment 3577 Computer peripheral equipment, nec 3575 Computer terminals 3572 Computer storage devices 3271 Concrete block & brick 3272 Concrete products, nec 3531 Construction machinery 2679 Converted paper products, nec 3535 Conveyors & conveying equipment 2052 Cookies & crackers 3351 Copper rolling & drawing 3366 Copper foundries 2298 Cordage & twine 2653 Corrugated & solid fiber boxes 3961 Costume jewelry 2074 Cottonseed oil 2021 Creamery butter 0723 Crop preparation services for market 3466 Crowns & closures 3643 Current-carrying wiring devices 2391 Curtains & draperies 3087 Custom compound purchased resins 3281 Cut stone & stone products 3421 Cutlery 2865 Cyclic crudes & intermediates 0241 Dairy farms 2034 Dehydrated fruits, vegetables, & soups 3843 Dental equipment & supplies 2675 Die-cut paper products 2085 Distilled & blended liquors 2047 Dog & cat food 3942 Dolls & stuffed toys 2591 Drapery hardware & blinds & shades 2023 Dry, condensed, & evaporated dairy products 2079 Edible fats & oils, nec 3641 Electric lamps 3634 Electric housewares & fans 3699 Electrical equipment & supplies, nec 3629 Electrical industrial apparatus, nec 3845 Electromedical equipment 3313 Electrometallurgical products 3679 Electronic components, nec 3678 Electronic connectors 3671 Electron tubes 3675 Electronic capacitors 3676 Electronic resistors 3677 Electronic coils & transformers 3571 Electronic computers 3534 Elevators & moving stairways 3694 Engine electrical equipment 2677 Envelopes 3822 Environmental controls 2892 Explosives 2381 Fabric dress & work gloves 3499 Fabricated metal products, nec 3443 Fabricated plate work (boiler shops) 3498 Fabricated pipe & fittings 3069 Fabricated rubber products, nec 3441 Fabricated structural metal 2399 Fabricated textile products, nec 3523 Farm machinery & equipment 3965 Fasteners, buttons, needles, & pins 2875 Fertilizers, mixing only 2655 Fiber cans, drums, & similar products 2262 Finishing plants, manmade 2261 Finishing plants, cotton 2269 Finishing plants, nec 3211 Flat glass 2087 Flavoring extracts & syrups, nec 2041 Flour & other grain mill products 3824 Fluid meters & counting devices 3492 Fluid power valves & hose fittings 2026 Fluid milk 3594 Fluid power pumps & motors 3593 Fluid power cylinders & actuators 2657 Folding paperboard boxes 2099 Food preparations, nec 3556 Food products machinery 3131 Footwear cut stock 3149 Footwear, except rubber, nec 2092 Fresh/frozen prepared fish/seafood 2053 Frozen bakery products, except bread 2038 Frozen specialties, nec 2037 Frozen fruits & vegetables 0271 Fur-bearing animals and rabbits 2371 Fur goods 2599 Furniture & fixtures, nec 3944 Games, toys, & children’s vehicles 3053 Gaskets, packing, & sealing devices 0291 General farms, primarily animal 3569 General industrial machinery, nec 0219 General livestock, nec 2369 Girls’ & children’s outerwear, nec 2361 Girls’ & children’s dresses, blouses 3221 Glass containers 3321 Gray & ductile iron foundries 2771 Greeting cards 3764 Guided missile & space vehicle parts 3769 Guided missile & space vehicle parts, nec (continued on next page) FTB 3808 Booklet  2018  Page 13 3761 Guided missiles & space vehicles 2861 Gum & wood chemicals 3275 Gypsum products 3423 Hand & edge tools, nec 3996 Hardsurface floor coverings, nec 2429 Hardware, nec 2426 Hardwood dimensions & flooring mills 2435 Hardwood veneer & plywood 2353 Hats, caps, & millinery 3433 Heating equip, except electric 0213 Hogs 3536 Hoists, cranes, & monorails 0272 Horses and other equines 2252 Hosiery, nec 2392 House furnishings, nec 3142 House slippers 3651 Household audio & video equipment 3635 Household vacuum cleaners 3631 Household cooking appliances 3633 Household laundry equipment 3639 Household appliances, nec 2519 Household furniture, nec 3632 Household refrigerators & freezers 2024 Ice cream & frozen desserts 3491 Industrial valves 2819 Industrial inorganic chem, nec 3599 Industrial machinery, nec 2869 Industrial organic chem, nec 3537 Industrial truc
Extracted from PDF file 2018-california-3808-booklet.pdf, last modified December 2018

More about the California 3808 Booklet Corporate Income Tax

We last updated the Manufacturing Enhancement Area Business Booklet in May 2021, and the latest form we have available is for tax year 2018. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the California Franchise Tax Board. You can print other California tax forms here.

Other California Corporate Income Tax Forms:

TaxFormFinder has an additional 174 California income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
3805-Z Booklet Enterprise Zone Business Booklet
Form 100-ES Corporation Estimated Tax
Form 541 Schedule K-1 Beneficiary's Share of Income, Deductions, Credits, etc.
Form 3539 (Corp) Payment for Automatic Extension for Corps and Exempt Orgs
Form 3537 (LLC) Payment for Automatic Extension for LLCs

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California usually releases forms for the current tax year between January and April. We last updated California 3808 Booklet from the Franchise Tax Board in May 2021.

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About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of California 3808 Booklet

We have a total of two past-year versions of 3808 Booklet in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2018 3808 Booklet

2018 Booklet 3808 - Manufacturing Enhancement Area Business Booklet

2017 3808 Booklet

2017 Booklet 3808 - Manufacturing Enhancement Area Credit Summary Business Booklet


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