3547: Donated Agricultural Products Transportation Credit (2025)

Who files this form

Use California Form 3547 for tax year 2025 to figure the credit for transporting agricultural products donated to nonprofit charitable organizations, or to claim a pass-through credit.

To qualify for the transportation credit, you must be in the business of processing, distributing, or selling agricultural products. You must have paid or incurred eligible transportation costs and received certification from the nonprofit organization.

S corporations, estates, trusts, partnerships, and LLCs classified as partnerships should also complete this form to figure credits passed through to shareholders, beneficiaries, partners, or members.

What you'll need

• Donation certificate: Obtain a certificate from the nonprofit charitable organization confirming that the donation meets the California Food and Agricultural Code requirements. Keep it and provide a copy to the Franchise Tax Board if requested.
• Transportation cost information: Have the eligible miles or actual transportation expenses needed to calculate line 1.
• Schedule K-1, if applicable: Use Schedule K-1 (100S, 541, 565, or 568) for pass-through credits. If you received more than one pass-through credit, attach a schedule listing the entities' names and identification numbers.
• Prior-year carryover amount: Enter any credit carryover on line 5.
• Additional forms, if applicable: Use FTB 3544 for credit assignments and FTB 3870 if electing to make credits disallowed by the $5,000,000 business credit limitation refundable in future years.

How to file

Attach Form 3547 to your California tax return. The supplied text does not give a mailing address or e-filing instructions.

1. Enter your name as shown on your California return and the applicable identification numbers.
2. Enter eligible transportation costs on line 1. Use either $0.14 per eligible mile or actual eligible transportation expenses.
3. Multiply line 1 by 50% for line 2. Add pass-through credits on line 3, then total lines 2 and 3 on line 4.
4. Add prior-year carryover on line 5 to get the total available credit on line 6.
5. Complete lines 7a through 7c for the credit claimed, credit assigned, and any amount elected as refundable in future years. Use credit code 204 when claiming this credit.
6. Subtract the total of lines 7a, 7b, and 7c from line 6 to calculate the carryover on line 8.

Pass-through entities attach Form 3547 to Form 100S, 541, 565, or 568, as applicable, and report each recipient's credit on Schedule K-1.

If making the refundable-credit election, attach completed Form FTB 3870 to your original, timely filed return.

Common mistakes

• Including ineligible costs: Do not include depreciation or insurance. Transportation or travel expenses must not involve a significant element of personal pleasure, recreation, or vacation.
• Not adjusting a deduction for the same costs: Reduce any deduction allowed for the same eligible transportation costs by the current-year credit figured on line 4.
• Including assigned credits on line 7a: Do not include assigned credits claimed on FTB 3544, Part B. If you are not a corporation, enter 0 on line 7b.
• Electing an ineligible refundable amount: Do not include credit limited by your tax liability on line 7c. You cannot elect to make only part of the credit disallowed by the $5,000,000 limitation refundable. The election must also cover all other credits claimed that year that were disallowed by that limitation.
• Counting an elected refundable amount as carryover: Exclude amounts elected as refundable on FTB 3870 from line 8. Credit limited by your tax liability may be carried over instead.
• Carrying the credit back: This credit cannot be applied to a prior year's tax. Apply carryovers to the earliest taxable year possible.

Questions people ask

How much is the credit?

The credit is 50% of eligible transportation costs paid or incurred for donated agricultural products. Eligible costs may be calculated using $0.14 per mile or actual transportation expenses. Parking fees and tolls may be included in actual costs, but depreciation and insurance may not.

What counts as an agricultural product and a qualifying nonprofit?

An agricultural product includes any fowl, animal, vegetable, or other product customarily or properly used as human food. The nonprofit must have tax-exempt status under IRC Section 501(c)(3) or California Revenue and Taxation Code Section 23701d.

What if two taxpayers share the transportation expenses?

Each taxpayer is eligible for a credit in proportion to their share of the eligible expenses paid or incurred.

Can I carry unused credit forward?

Yes. If the available credit exceeds your current-year tax liability, the unused credit may be carried forward until exhausted. Apply it to the earliest taxable year possible. It cannot be carried back.

Is the credit refundable?

Generally, no. However, credits disallowed by the $5,000,000 business credit limitation may qualify for an irrevocable election on FTB 3870 to become refundable in future years. The refundable amount is claimed at 20% per year over five years, beginning in the third taxable year after the election year. S corporations cannot make this election for credits taken at the entity level.

Official sources

• https://www.ftb.ca.gov/forms/2025/2025-3547.pdf