3521: Low-Income Housing Credit (2025)
California · FTB · Used for tax years 2025
California Form 3521 calculates your available low-income housing credit and any credit carryover for future years. It reports current-year credits, credits received from other entities, and basis recomputations when a project's or building's basis has decreased. Attach it to you
Who files this form
Use 2025 California Form 3521 to calculate your available low-income housing credit and any credit carryover for future years. Attach it to your California tax return.
The form includes entries for corporations receiving credits from affiliated corporations and for S corporation shareholders, beneficiaries, partners, and LLC members receiving pass-through credits.
What you'll need
Have the following information and applicable forms ready:
- Your name as shown on your California tax return, tax identification number, and California Secretary of State file number, as applicable.
- The building identification number (BIN). If the credit covers more than one building, attach a list of all BINs.
- Form CTCAC 3521A, referenced in the question about whether eligible basis has decreased.
- For credits received from other entities: the affiliated corporation’s Form FTB 3521, line 10; Schedule K-1 (100S), line 13a; Schedule K-1 (541), line 13d; or Schedule K-1 (565 or 568), line 15b, as applicable.
- Your prior-year low-income housing credit carryover and the credit amount claimed on your current-year return.
- Form FTB 3544, Part A, column (g), if reporting assigned credits on line 12b.
If you must complete Part III because basis decreased, you will also need each building’s placed-in-service month and year, BIN, eligible basis, low-income portion, and applicable percentage.
How to file
Attach Form FTB 3521 to your California tax return.
If the credit covers more than one building, attach a list of all building identification numbers. Use additional sheets for Part III if necessary.
Common mistakes
- Do not continue past Part I, line 1 without completing Part III if you answer “Yes” to the question about decreased eligible basis.
- Complete Part III only if the basis in a project or building has decreased.
- Do not include assigned credit claimed on Form FTB 3544, Part B, in line 12a.
- If you are not a corporation, enter 0 on lines 10 and 12b.
- If none of the credit on line 4 is from passive activities, enter 0 on line 5.
- Remember to attach a list of all BINs if the credit covers more than one building.
Questions people ask
When do I complete Part III?
Complete Part III only if the basis in a project or building has decreased. If you answer “Yes” on Part I, line 1, complete Part III before continuing.
Where do I report credits received from another entity?
Report affiliated corporation and pass-through low-income housing credits on line 3. Enter the entity’s name, identification number, BIN, and credit amount.
Where do I enter a prior-year credit carryover?
Enter your low-income housing credit carryover from the prior year on line 8.
How is the carryover available for future years calculated?
Add the credit claimed on line 12a and the total credit assigned on line 12b. Subtract that total from line 11 and enter the result on line 13.