3592: College Access Tax Credit (2024)

Who files this form

Use Form FTB 3592 to report the College Access Tax Credit earned and claimed for 2024 and any credit carried over to future years. Also use it to claim credits passed through from an S corporation, estate, trust, partnership, or LLC classified as a partnership.

S corporations, estates, trusts, partnerships, and LLCs classified as partnerships should complete the form to figure the credit to pass through to their shareholders, beneficiaries, partners, or members.

To claim a credit for your own contribution, you must have contributed to the College Access Tax Credit Fund administered by the California Educational Facilities Authority (CEFA) and received a CEFA certificate documenting the contribution and credit amount. You must also meet the applicable terms and conditions of the credit agreement.

What you'll need

Have the following available, as applicable:

• Your CEFA credit certificate, including the credit amount and certificate number, and your credit agreement.
• Schedule K-1 (100S, 541, 565, or 568) showing any pass-through credit. Attach a schedule listing the entity name, identification number, and credit amount for all credits passed through to you.
• Records supporting credit carryovers and amounts used in prior years. Keep these records because the Franchise Tax Board may require access to them.
• The credit owner's name and California corporation number, federal employer identification number, or California Secretary of State file number. If the name matches the name on your California return, enter “same.”
• Form FTB 3544, Part A, if your corporation assigns credit within its combined reporting group.
• Form FTB 3870 if you elect to make credit disallowed by the $5,000,000 business credit limitation refundable in future years.

How to file

Attach Form FTB 3592 to your California tax return.

1. Enter the current-year CEFA credit amount on line 1a and the certificate number on line 1b. Skip both lines if you are only claiming a pass-through credit.
2. Enter your total pass-through credit on line 2. Add lines 1a and 2 on line 3, then add prior-year carryovers from line 4 to calculate line 5.
3. Enter the credit claimed on line 6a. Use credit code 235 when claiming the credit on your return.
4. Enter assigned credit on line 6b. If you are not a corporation, enter 0. Enter any qualifying amount elected as refundable in future years on line 6c.
5. Add lines 6a, 6b, and 6c, then subtract that total from line 5 to calculate the carryover on line 7.

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

If making the refundable-credit election, attach a completed Form FTB 3870 to your original, timely filed return. The supplied text does not give a mailing address or e-file directions.

Common mistakes

• Including assigned credits on line 6a. Do not include assigned credits claimed on Form FTB 3544, Part B.
• Completing lines 1a and 1b for a pass-through-only claim. Skip those lines if you are only claiming credit allocated by a pass-through entity.
• Including tax-liability-limited credit in the refundable election. Credit limited by your tax liability is not eligible for this election. It may instead be carried over.
• Electing only part of the disallowed credit. You cannot elect a partial amount. If you make the election, it must also cover all other credits claimed that year that were disallowed by the $5,000,000 limitation.
• Counting elected refundable credit as a carryover. Do not include amounts elected as refundable on Form FTB 3870 in line 7.
• Carrying credit back. The credit cannot be applied against a prior year's tax.

Questions people ask

How much is the credit?

The credit is 50% of the taxpayer's contribution to the College Access Tax Credit Fund for the taxable year. CEFA allocates and certifies the credit amount.

Can I carry forward unused credit?

Unused credit may generally be carried forward for up to six years or until exhausted, whichever comes first. For credit disallowed by the business credit limitation and not elected as refundable, the carryover period is extended by the number of taxable years the credit was not allowed.

Is the credit refundable?

The credit itself is not refundable. However, credit disallowed by the $5,000,000 business credit limitation may qualify for an irrevocable election on Form FTB 3870. The elected amount is refundable at 20% per year over five years, starting in the third taxable year after the election year. S corporations cannot make this election for credits taken at the entity level.

Can an S corporation both claim and pass through the credit?

An S corporation may claim only one-third of the credit against its entity-level tax. The remaining two-thirds must be disregarded and cannot be carried over. In addition, the S corporation may pass through 100% of the credit to its shareholders.

Official sources

• https://www.ftb.ca.gov/forms/2024/2024-3592.pdf