3809: Targeted Tax Area Deduction and Credit Summary (2024)
California · FTB · Used for tax years 2024
California Form 3809 summarizes Targeted Tax Area (TTA) hiring and sales or use tax credit carryovers, credit limitations, and net operating loss carryovers and deductions. It also reports the portion of a business attributable to the former TTA and is attached to your California
Who files this form
Form 3809 reports Targeted Tax Area (TTA) hiring and sales or use tax credit carryovers, along with TTA net operating loss (NOL) carryovers and deductions.
The form provides entity-type boxes 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 worksheets available:
- Your California tax return, including the name and applicable taxpayer identification numbers shown on it.
- Business details: name, actual business location, specific TTA area, SIC code, six-digit Principal Business Activity code, employee count, gross annual receipts, and total asset value.
- Worksheet I for the business apportionment percentage and applicable trade or business income.
- Worksheet II for prior-year NOL carryovers, the current-year NOL 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 3809 to your California tax return. The supplied form does not give a mailing address or e-file instructions.
Complete Schedule Z on Side 2 before completing Part I. Use Worksheet I for Part II and Worksheet II for Part III.
Enter the NOL deduction from Part III, line 3b, on the applicable return or schedule:
- 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
- Completing Part I before Schedule Z. The form says to complete Schedule Z first.
- Using the wrong location. Item C asks for the actual location where the TTA business is conducted.
- Missing the special directions for individuals. On Schedule Z, individuals enter Worksheet I, Section B, line 14, column (c), on both lines 1 and 3, and skip line 2.
- Exceeding the credit limit. Schedule Z, Part II, says the credit carryover used on Schedule P can never be greater than either column (d) or column (e).
- Forgetting to attach the form. Form 3809 must be attached to your California tax return.
Questions people ask
Which credit carryovers does Form 3809 report?
Part I reports hiring credit and sales or use tax credit carryovers claimed on the current-year return. The amounts come from Schedule Z.
What percentage do I enter if my operation is entirely within the former TTA?
Part II says the average apportionment percentage is 100% (1.00) if your operation is wholly within the former TTA.
Where do I report NOL amounts?
Part III reports the total NOL carryover from prior years on line 3a, the deduction used in the current year on line 3b, and the TTA NOL carryover to future years on line 3c. These amounts come from Worksheet II, line 9.
Is there a separate credit limitation section for S corporations?
Yes. Schedule Z, Part III, is for S corporations only. Part IV applies to corporations and S corporations subject to paying only the minimum franchise tax.