3544: Assignment of Credit (2024)
California · FTB · Used for tax years 2024
California Form 3544 records a corporation’s election to assign a credit within a combined reporting group or its receipt and use of an assigned credit. It reports credit amounts assigned, received, claimed, and available to carry over to future years.
Who files this form
Form FTB 3544 is for corporations assigning credit within a combined reporting group or reporting credit they received or are claiming.
- Assignors, the corporations assigning credit, complete Part A to elect to assign the credit.
- Assignees, the corporations receiving credit, skip Part A and complete Part B when reporting receipt of credit or claiming received credit.
Both assignors and assignees must complete the top portion of the form.
What you'll need
Have the following information ready to complete the form:
- The key corporation's name, California corporation number, and principal business activity code.
- The credit name and credit code.
- The assignor's and assignee's names and California corporation numbers or FEINs.
- Certificate or agreement numbers, if applicable.
- The taxable year the credit was generated.
For Part A: You also need the assignor's principal business activity code, whether the assigned credit is subject to limitations, and the amounts available for assignment and being assigned.
For Part B: You also need the year the credit was received, the initial amount received, credit received and claimed in 2024, and carryovers from prior years. The form asks whether the taxpayer elected on FTB 3870 to make credits disallowed by the $5,000,000 credit limitation refundable.
How to file
Attach Form FTB 3544 to Form 100, Form 100S, or Form 100W. Attach additional Forms FTB 3544 if necessary.
- Complete the top portion and check either Assignor or Assignee.
- Complete either Part A or Part B, as appropriate.
- File a separate form for each assignor per credit, or each assignee per credit.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Treating the assignment election as reversible. The form states that the election is irrevocable.
- Leaving required parts incomplete. Part A must be completed in full for the election to be valid. Assignees must complete Part B in full when credit is received or claimed.
- Completing the wrong part. Assignors use Part A. Assignees skip Part A and use Part B.
- Combining entries that require separate forms. File a separate form for each assignor per credit or each assignee per credit.
- Missing the limitations checkbox. Check Part A, column (e), if the assigned credit is subject to limitations.
- Including credit elected to be refundable in carryovers. If the answer to the FTB 3870 election question is Yes, do not include that credit in Part B, column (k).
- Exceeding the applicable credit limit. If the taxpayer is subject to the credit limitation, total credits in Part B, column (j), cannot exceed $5,000,000. For taxpayers included in a combined report, this limit applies at the group level.
Questions people ask
Do I complete both Part A and Part B?
No. Complete either Part A to assign credit or Part B to report credit received or claimed.
Can I reverse an election to assign credit?
No. The form states that the election is irrevocable.
How do I calculate the balance available after an assignment?
In Part A, subtract column (g), credit assigned, from column (f), credit available for assignment. Enter the balance in column (h).
How do I calculate assigned credit available for 2024?
In Part B, add column (g), assigned credit received in the 2024 taxable year, to column (h), assigned credit carryover from prior years. Enter the result in column (i).