3503: Natural Heritage Preservation Credit (2025)
California · FTB · Used for tax years 2025
California Form FTB 3503 figures the Natural Heritage Preservation Credit for qualified property contributions approved by the Wildlife Conservation Board. It reports contribution details, pass-through credits, carryovers, and the amounts claimed, assigned, or elected to be refun
Who files this form
Use Form FTB 3503 to figure the Natural Heritage Preservation Credit or claim a pass-through credit received from an S corporation, estate, trust, partnership, or LLC classified as a partnership.
To qualify for a credit for donated property, the contribution must meet the stated property requirements and be approved for acceptance by the Wildlife Conservation Board (WCB). You must receive a WCB certificate confirming approval.
S corporations, estates, trusts, partnerships, and LLCs classified as partnerships should also complete this form to figure the credit passed through to shareholders, beneficiaries, partners, or members.
When it's due
For tax year 2025, the form states that qualifying contributions may be made from January 1, 2021, through June 30, 2026. These are contribution eligibility dates, not tax return filing deadlines.
The text does not give a calendar filing deadline for the 2025 return. If you elect to make credits disallowed by the business credit limitation refundable in future years, attach Form FTB 3870 to your original, timely filed return.
What you'll need
- WCB certificate: Use it to enter the donor’s name, property type, acceptance date, approved fair market value, project name, and WCB ID number. Keep the certificate and make it available to the Franchise Tax Board if requested.
- California tax return information: Enter the name and identifying information requested on Form FTB 3503.
- Schedule K-1 (100S, 541, 565, or 568), if applicable: Use the pass-through credit amounts. If you received more than one pass-through credit, attach a schedule listing the entities’ names and identification numbers.
- Your 2024 Form FTB 3503, if applicable: Use it for the carryover amount on line 5.
- Form FTB 3544, if applicable: Corporations assigning credits within a combined reporting group must complete Part A.
- Form FTB 3870, if applicable: Complete and attach it if you elect future refundable treatment for credits disallowed by the $5,000,000 business credit limitation.
How to file
Attach completed Form FTB 3503 to your California tax return. Use credit code 213 when claiming the credit.
Pass-through entities attach the form to Form 100S, 541, 565, or 568, as applicable, and show each recipient’s pass-through credit on Schedule K-1.
If you have more than one qualified contribution, figure each contribution on a separate Form FTB 3503.
The supplied text does not provide a mailing address or e-file directions.
Common mistakes
- Claiming the credit without a WCB certificate. No credit is allowed unless you received a certificate showing approval for acceptance.
- Combining multiple donations on one form. Figure each qualified contribution on a separate Form FTB 3503.
- Including assigned credits on line 7a. Do not include assigned credits claimed on Form FTB 3544, Part B.
- Including tax-liability-limited credits in the refundable election. Those credits are not eligible for that election, but may be carried over.
- Electing only part of the disallowed credit. A partial election is not allowed. The election must also cover all other credits claimed that year that were disallowed by the $5,000,000 limitation.
- Counting elected refundable amounts as carryovers. Do not include amounts elected as refundable on Form FTB 3870 in line 8.
- Claiming another state credit or deduction for the same contributed property. This credit replaces any other state tax credit or deduction otherwise allowed for that property or interest.
Questions people ask
How much is the credit?
The credit equals 55% of the fair market value of a qualified contribution approved for acceptance by the WCB. Limits may reduce the amount you can claim for the year.
Is the credit refundable?
Generally, no. However, you may make an irrevocable election on Form FTB 3870 for credits disallowed by the $5,000,000 business credit limitation to become refundable in future years. S corporations cannot make this election for credits taken at the entity level.
Can I carry unused credit forward?
Yes. Credits generated on or after January 1, 2015, may be carried forward for 15 years or until exhausted, whichever happens first. Apply carryovers to the earliest possible tax year. Credits cannot be carried back. The carryover period for credits disallowed by the business credit limitation is extended by the number of taxable years the credit was not allowed.
Where can I ask about qualified contributions?
Contact the WCB at 916.445.8448 or visit wcb.ca.gov.