California Donated Agricultural Products Transportation Credit

Donated Agricultural Products Transportation Credit
2023 Form 3547 Donated Agricultural Products Transportation Credit
TAXABLE YEAR

2023

Donated Agricultural Products
Transportation Credit

CALIFORNIA FORM

3547

Attach to your California tax return.

□ SSN or ITIN □ CA Corporation no. □ FEIN

Name(s) as shown on your California tax return

California Secretary of State file number

1 Eligible transportation costs. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

00

2 Current year credit. Multiply line 1 by 50% (.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

00

3 Pass-through Donated Agricultural Products Transportation Credit(s) from
Schedule K-1 (100S, 541, 565, or 568). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

00

4 Total current year Donated Agricultural Products Transportation Credit. Add line 2 and line 3 . . . . . . . . . . . 4

00

5 Credit carryover from a prior year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

00

6 Total available Donated Agricultural Products Transportation Credit. Add line 4 and line 5 . . . . . . . . . . . . . . 6

00

7 a Credit claimed. Enter the amount of the credit claimed on the current year tax return. See instructions.
(Do not include any assigned credit claimed on form FTB 3544, Part B) . . . . . . . . . . . . . . . . . . . . . . . . . . 7a
b Total credit assigned. Enter the total amount from form FTB 3544, Part A, column (g).
If you are not a corporation, enter -0-. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7b

00
00

8 Credit carryover available for future years. Add line 7a and line 7b, subtract the result from line 6. . . . . . . . 8

00

General Information

C

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

To qualify for this credit, you must be engaged in the business of
processing, distributing, or selling agricultural products. You may claim
the credit for eligible transportation costs paid or incurred in connection
with the donation of any agricultural product to a nonprofit charitable
organization. If two or more taxpayers share in the expenses eligible
for the credit, each taxpayer shall be eligible to receive the tax credit in
proportion to their respective share of the expenses paid or incurred.

A

Purpose

Use form FTB 3547, Donated Agricultural Products Transportation
Credit, to figure the amount of credit allowed for the transportation of
agricultural products donated to nonprofit charitable organizations.
Also, use this form to claim pass-through donated agricultural
products transportation credits received from S corporations, estates,
trusts, partnerships, or limited liability companies (LLCs) treated as
partnerships.
S corporations, estates, trusts, partnerships, and LLCs classified as
partnerships should complete form FTB 3547 to figure the amount
of credit to pass through to shareholders, beneficiaries, partners, or
members. Attach this form to Form 100S, California S Corporation
Franchise or Income Tax Return; Form 541, California Fiduciary Income
Tax Return; Form 565, Partnership Return of Income; or Form 568,
Limited Liability Company Return of Income. Show the pass-through
credit for each shareholder, beneficiary, partner, or member on
Schedule K-1 (100S, 541, 565, or 568), Share of Income, Deductions,
Credits, etc.

B

Description

You are allowed a credit of 50% of the eligible transportation costs
paid or incurred in connection with the transportation of any donated
agricultural products donated to nonprofit charitable organizations.

For Privacy Notice, get FTB 1131 EN-SP.

Qualifications

Certification
You must receive a certificate from the nonprofit charitable organization
certifying that your agricultural product donation is in accordance with
the provisions of the California Food and Agricultural Code. You should
retain this certificate and provide a copy to Franchise Tax Board upon
request.

D

Definitions

Agricultural product – Any fowl, animal, vegetable or other stuff, product
or article which is customary or proper food for human beings.
Nonprofit charitable organization – A charitable organization that has
exempt status under IRC Section 501(c)(3) or R&TC Section 23701d.
Transportation costs – Reasonable transportation or travel expenses
(including meals) incurred in performing services away from home for
qualified organizations if no significant element of personal pleasure,
recreation, or vacation is involved. You may include parking fees and
tolls in the actual transportation costs; however, you may not include
depreciation and insurance. You may determine eligible transportation
costs in either of the following ways:
● $.14 (fourteen cents) per mile
● The actual transportation expenses

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FTB 3547 2023 Side 1

E

Limitations

No credit will be allowed unless you have received a certificate from
the donee nonprofit charitable organization certifying donation of the
agricultural products.
S corporations may claim only 1/3 of the credit against the 1.5%
entity-level tax (3.5% for financial S corporations). The remaining 2/3
must be disregarded and may not be used as carryover. S corporations
may pass through 100% of the credit to their shareholders.
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.
If a taxpayer owns an interest in a disregarded business entity [a single
member limited liability company (SMLLC) not recognized by California,
and for tax purposes is treated as a sole proprietorship owned by an
individual or a branch owned by a corporation], the credit amount
received from the disregarded entity that can be utilized is limited to the
difference between the taxpayer’s regular tax figured with the income of
the disregarded entity, and the taxpayer’s regular tax figured without the
income of the disregarded entity.
If the disregarded entity reports a loss, the taxpayer may not claim the
credit this year but can carry over the credit amount received from the
disregarded entity.
For more information on SMLLC, get Form 568, Limited Liability
Company Tax Booklet.
This credit cannot reduce the minimum franchise tax (corporations
and S corporations), annual tax (limited partnerships, limited liability
partnerships, and LLCs classified as partnerships), 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).
This credit cannot reduce regular tax below tentative minimum tax. Get
Schedule P (100, 100W, 540, 540NR, or 541), Alternative Minimum Tax
and Credit Limitations for more information.
This credit is taken in lieu of any deduction otherwise allowable for the
same eligible transportation costs. Any deduction allowed for these same
costs must be reduced by the amount of credit figured for the current
taxable year (the amount shown on line 4).
This credit is not refundable.

F

Assignment of Credits

Assigned Credits to Affiliated Corporations – 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, get form
FTB 3544, Assignment of Credit, or go to ftb.ca.gov and search for
credit assignment.

Page 2

FTB 3547 Instructions 2023

G

Carryover

If the available credit exceeds the current year tax liability, the unused
credit may be carried over to succeeding years until exhausted. Apply the
carryover to the earliest taxable year possible. In no event can this credit
be carried back and applied against a prior year’s tax.

Specific Line Instructions
Line 1 – Eligible transportation costs
Enter the eligible transportation costs paid or incurred in connection with
the donated agricultural products for which you received certification
from the donee nonprofit charitable organization. If two or more
taxpayers share in the expenses eligible for the credit, each taxpayer shall
be eligible to receive the tax credit in proportion to their respective share
of the expenses paid or incurred. If you are determining your eligible
transportation costs based on mileage, multiply the total miles connected
with transporting the donated agricultural product by $.14 (fourteen
cents). Otherwise, enter the actual transportation costs paid or incurred
in connection with the donated agricultural products.
Line 3 – Pass-through donated agricultural products transportation
credit(s)
If you received more than one pass-through credit from S corporations,
estates, trusts, partnerships, or LLCs classified as partnerships, add the
amounts and enter the total. Attach a schedule showing the names and
identification numbers of the entities from which the credits were passed
through to you.
Line 7a – Credit claimed
Do not include assigned credits claimed on form FTB 3544, Part B, List of
Assigned Credit Received and/or Claimed by Assignee.
This amount may be less than the amount on line 6 if your credit
is limited by your tax liability. For more information, see General
Information E, Limitations, and refer to the credit instructions in your
tax booklet. Use credit code 204 when you claim this credit.
Line 7b – Total credits assigned
Corporations that assign credit to other corporations within the same
combined reporting group must complete form FTB 3544, Part A,
Election to Assign Credit Within Combined Reporting Group. Enter the
total amount of credit assigned from form FTB 3544, Part A, column (g)
on this line.

Franchise Tax Board Privacy Notice on Collection
Our privacy notice can be found in annual tax booklets or online. Go
to ftb.ca.gov/privacy to learn about our privacy policy statement, or
go to ftb.ca.gov/forms and search for 1131 to locate FTB 1131 EN-SP,
Franchise Tax Board Privacy Notice on Collection – Aviso de Privacidad
del Franchise Tax Board sobre la Recaudación. To request this notice by
mail, call 800.338.0505 and enter form code 948 when instructed.