3805Z: Enterprise Zone Deduction and Credit Summary (2025)
California · FTB · Used for tax years 2025
California Form 3805Z, Enterprise Zone Deduction and Credit Summary, reports hiring and sales or use tax credit carryovers, net operating loss carryovers and deductions, and the portion of business attributable to a former Enterprise Zone. It includes Schedule Z to calculate cred
What you'll need
Have these items available to complete the form:
- Your California tax return, including the name, identifying numbers, and tax amounts requested on Form 3805Z.
- Business information: the EZ business name, actual business address, enterprise zone name, business activity code, employee count, gross annual receipts, and total asset value.
- Worksheet I for the apportionment percentage and, for individuals, trade or business income.
- Worksheet II for prior-year EZ net operating loss (NOL) carryovers, the current-year deduction, and carryovers to future years.
- Prior-year hiring and sales or use tax credit carryover amounts.
- Form FTB 3544, Part A, column (g), if reporting assigned credits in Schedule Z.
How to file
Attach Form 3805Z to your California tax return.
The supplied form does not give a mailing address or e-file directions.
Common mistakes
- Completing Part I before Schedule Z. The form directs you to complete Schedule Z on Side 2 first.
- Using the wrong business code for Long Beach EZ. Item E requests a six-digit Principal Business Activity Code, but specifies an SIC code for Long Beach EZ and refers you to the instructions.
- Filling in Schedule Z, line 2 as an individual. Individuals must enter the amount from Worksheet I, Section B, line 14, column (c), on both line 1 and line 3 and skip line 2.
- Exceeding the credit limitation. Schedule Z, Part II, column (f), says the credit carryover used on Schedule P can never exceed either column (d) or column (e).
- Leaving Form 3805Z out of your return. The form says to attach it to your California tax return.
Questions people ask
Which credit carryovers does this form report?
Part I reports hiring credit carryovers and sales or use tax credit carryovers claimed on the current-year tax return. These amounts come from Schedule Z.
What apportionment percentage do I use if my operation is entirely within one former enterprise zone?
Part II says to use 100% (1.00) if your operation is entirely within one former EZ.
Where do the net operating loss amounts come from?
Part III uses Worksheet II, line 9: column (b) for prior-year EZ NOL carryovers, column (c) for the deduction used in the current year, and column (e) for carryovers to future years.
Does Schedule Z have a separate section for S corporations?
Yes. Part III is for S corporations only. Part IV is for corporations and S corporations subject to paying only the minimum franchise tax.