3521: Low-Income Housing Credit (2024)
California · FTB · Used for tax years 2024
California Form 3521 calculates the available low-income housing credit and the credit carryover for future years. It reports current-year credits, credits received from other entities, and prior-year carryovers, and includes a basis recomputation section for projects or building
Who files this form
For tax year 2024, Form FTB 3521 calculates the California low-income housing credit and any credit carryover. Attach it to your California tax return.
The form includes entries for current-year credits, prior-year carryovers, and credits received from affiliated corporations or passed through to S corporation shareholders, beneficiaries, partners, and LLC members.
What you'll need
Have the information that applies to your credit ready:
- Your name as shown on your California tax return and the identification numbers requested on the form.
- The building identification number (BIN). If the credit covers more than one building, attach a list of all BINs.
- Information from form CTCAC 3521A to determine whether any project's or building's eligible basis has decreased since you received it.
- For credits received from another entity: the entity's name, identification number, BIN, and credit amount. The form lists FTB 3521, line 10, for affiliated corporation credits; Schedule K-1 (100S), line 13a; Schedule K-1 (541), line 13d; and Schedule K-1 (565 or 568), line 15b.
- Your prior-year low-income housing credit carryover amount.
- If you are a corporation assigning credit, FTB 3544, Part A, column (g).
If a project's or building's basis decreased, Part III also asks for the placed-in-service month and year, eligible basis, low-income portion, and applicable percentage.
How to file
Attach Form FTB 3521 to your California tax return.
- Complete Part I to calculate the available credit.
- Complete Part II to calculate the carryover available for future years.
- Complete Part III only if the basis in a project or building has decreased. If you answer “Yes” on line 1, complete Part III before continuing with Part I.
Attach a list of all BINs if the credit covers more than one building. Use additional sheets for Part III if necessary.
Common mistakes
- Do not leave out the BIN list when the credit covers more than one building.
- If you answer “Yes” to the eligible-basis decrease question on line 1, complete Part III before continuing.
- Enter 0 on line 5 if none of the credit on line 4 is from passive activities.
- Do not include assigned credit claimed on FTB 3544, Part B, in line 12a.
- If you are not a corporation, enter 0 on lines 10 and 12b.
Questions people ask
Where do I report credits passed through from another entity?
Use line 3. Enter the entity's name, identification number, BIN, and credit amount, then total the amounts in column (d).
When do I complete Part III?
Complete it only if the basis in a project or building has decreased. Line 1 asks whether eligible basis has decreased since you received form CTCAC 3521A.
How is the credit carryover calculated?
On line 13, add the credit claimed on line 12a and the total credit assigned on line 12b, then subtract that total from the available credit on line 11.
How do I determine the low-income portion for Part III?
Line 17 uses the lesser of the unit percentage or the floor-space percentage.