3807: Local Agency Military Base Recovery Area Deduction and Credit Summary (2024)
California · FTB · Used for tax years 2024
California Form 3807 summarizes Local Agency Military Base Recovery Area (LAMBRA) hiring and sales or use tax credit carryovers, along with net operating loss carryovers and deductions. It also reports the portion of a business attributable to the former LAMBRA and calculates cre
Who files this form
The 2024 Form 3807 reports Local Agency Military Base Recovery Area (LAMBRA) hiring and sales or use tax credit carryovers, along with LAMBRA net operating loss (NOL) carryovers and deductions.
The form includes entity choices for individuals, estates, trusts, C corporations, S corporations, partnerships, exempt organizations, limited liability companies, and limited liability partnerships. Attach it to your California tax return.
What you'll need
Have the following information and referenced forms or worksheets available, as applicable:
- Your name as shown on your California return and the applicable taxpayer or business identification numbers.
- Your entity type, LAMBRA business name, actual business location, and the name of the LAMBRA.
- The business's six-digit Principal Business Activity Code, employee count in the LAMBRA, gross annual receipts, and total asset value.
- Prior-year hiring and sales or use tax credit carryover amounts.
- Worksheet I for business income and the average apportionment percentage.
- Worksheet II for NOL carryovers and the current-year deduction.
- Your California tax return for the tax amount used in Schedule Z.
- Form FTB 3544, Part A, column (g), if reporting assigned credits.
How to file
Attach Form 3807 to your California tax return. The supplied form does not give a separate mailing address or e-file directions.
Complete Schedule Z on Side 2 before completing Part I. Transfer the applicable hiring and sales or use tax credit carryover amounts to Part I.
For Part II, enter the average apportionment percentage from Worksheet I, Section A, line 4. If your operation is wholly within the former LAMBRA, enter 100% (1.00).
For Part III, use Worksheet II to report your NOL carryover from prior years, deduction used this year, and carryover to future years. Also enter the current-year NOL deduction on the applicable return line listed on the form:
- Schedule CA (540), Part I, Section B, line 9b3, column B.
- Schedule CA (540NR), Part II, Section B, line 9b3, column B.
- Form 100 or Form 100W, line 20.
- Form 100S, line 18.
- Form 109, line 6.
Common mistakes
- Do not forget to attach Form 3807 to your California tax return.
- Do not complete Part I before completing Schedule Z on Side 2.
- In Schedule Z, Part II, the credit carryover used on Schedule P in column (f) can never be greater than either column (d) or column (e).
- Individuals completing Schedule Z must enter the amount from Worksheet I, Section B, line 14, column (c), on both line 1 and line 3, and skip line 2.
Questions people ask
What does LAMBRA stand for?
LAMBRA stands for Local Agency Military Base Recovery Area.
Which credit carryovers does Form 3807 report?
Part I reports hiring credit carryovers and sales or use tax credit carryovers claimed on the current-year return.
What percentage do I enter if my operation is entirely within the former LAMBRA?
Enter 100% (1.00) in Part II, line 2.
Does the form track NOL amounts carried into future years?
Yes. Part III, line 3c, reports the LAMBRA NOL carryover to future years from Worksheet II, line 9, column (e).
Which part of Schedule Z is for S corporations?
Part III is labeled for S corporations only. Part IV applies to corporations and S corporations subject to paying only the minimum franchise tax. The form directs filers to the instructions for these parts.