3531: California Competes Tax Credit (2025)
California · FTB · Used for tax years 2025
California Form 3531 reports the California Competes Tax Credit earned, available, and claimed for 2025. It also tracks credit carryovers, assigned credits, amounts to be elected as refundable in future years, and credit recapture. Attach it to your California tax return.
What you'll need
Have the following information and forms available, as applicable:
- Your name as shown on your California tax return, identifying numbers, and credit owner information.
- Agreement numbers and amounts for credits earned, available, and claimed.
- Schedule K-1 (100S, 541, 565, or 568) if you have a pass-through California Competes Tax Credit.
- Prior-year credit carryover amounts for line 6.
- Form FTB 3544, Part A, if reporting assigned credits on line 8b.
- Form FTB 3870 if electing to make credits disallowed by the $5,000,000 limitation refundable. The form says you must complete FTB 3870 to make that election.
How to file
Attach Form FTB 3531 to your California tax return.
Common mistakes
- Do not include assigned credit claimed on Form FTB 3544, Part B, in line 8a.
- If you are not a corporation, enter 0 on line 8b.
- If you elect to make credits disallowed by the $5,000,000 limitation refundable, do not include the elected amount in Part IV, column (e), credit carryover. Complete Form FTB 3870 to make the election.
- Remember to attach Form FTB 3531 to your California tax return.
Questions people ask
How do I calculate total credit earned in 2025?
Add the credit earned on lines 1a and 1b and enter the total on line 2. For each agreement, answer whether the credit earned includes achievement of milestones from more than one year.
Where do I report a pass-through credit?
Enter the California Competes Tax Credit from Schedule K-1 (100S, 541, 565, or 568) on line 4a. Enter its agreement number on line 4b.
What amount goes on line 8a for credit claimed?
Enter the total credit claimed from Part IV, line 11, column (d). Do not include assigned credit claimed on Form FTB 3544, Part B.
How do I calculate the credit carryover available for future years?
Add lines 8a, 8b, and 8c, then subtract that total from line 7. Enter the result on line 9.