3831: Homeless Hiring Tax Credit (2024)

California · FTB · Used for tax years 2024

California Form FTB 3831 figures and reports the Homeless Hiring Tax Credit for qualified taxpayers that hire eligible individuals. It reports available credit, pass-through credit, prior-year carryovers, credit claimed or assigned, and amounts reserved for future years. Attach i

Who files this form

Use Form FTB 3831 to figure and claim the Homeless Hiring Tax Credit if you are a qualified employer that hires an eligible individual and receives a tentative credit reservation for that person.

A qualified employer must pay wages equal to or greater than 120% of the California minimum wage, subject to the withholding requirements stated in the form. For each year you claim the credit, you must obtain an HHTC certificate and a tentative credit reservation for each eligible individual.

Also use this form if you:

  • Claim credit passed through from an S corporation, estate, trust, partnership, or LLC classified as a partnership.
  • Are one of those entities reporting credit that will be passed through to shareholders, beneficiaries, partners, or members.

What you'll need

  • Taxpayer information: Names and identification numbers as shown on your California return, plus the name and identification number of the taxpayer generating the credit.
  • For employees generating the credit: A copy of each eligible individual's HHTC certificate, a tentative credit reservation, and actual hours worked during 2024. Provide the certificate to the Franchise Tax Board if requested.
  • Worksheet 1: Use it to calculate the credit. Keep it for your records rather than attaching it.
  • For pass-through credits: Schedule K-1 (100S, 541, 565, or 568) and its statement showing your allocated credit. Attach a statement to FTB 3831 listing the names and identification numbers of the entities passing through the credit.
  • For carryovers: Your 2023 Form FTB 3831, line 6.
  • If applicable: Form FTB 3544 for assigned credits or Form FTB 3870 for an election to make credits disallowed by the $5,000,000 business credit limitation refundable in future years.

How to file

Attach Form FTB 3831 to your California tax return. The supplied text does not give a mailing address or an e-file procedure for this form.

  • Use Worksheet 1 to calculate your 2024 credit from eligible employees' actual hours worked. Enter no more than $30,000 on line 1.
  • Enter pass-through credits on line 2 and the carryover from your 2023 Form FTB 3831, line 6, on line 3.
  • Report the credit claimed on line 5a and on your current tax return using credit code 244.
  • Entities passing through credit must attach FTB 3831 to Form 100S, 541, 565, or 568, as applicable, and report each recipient's share on Schedule K-1.

Obtain tentative credit reservations through the FTB's online system. Go to ftb.ca.gov and search for hhtc. This reservation process is separate from attaching FTB 3831 to your return.

Common mistakes

  • Claiming credit without a reservation: Only claim credit for an eligible individual for whom you obtained a tentative credit reservation.
  • Answering Question A incorrectly as a pass-through investor: Investors in pass-through entities should check “No” and start on line 2.
  • Writing “same” for the taxpayer generating the credit: Enter the full name and identification number, even if they match the California return.
  • Attaching Worksheet 1: Do not attach it to FTB 3831. Keep it for your records.
  • Including assigned credits on line 5a: Do not include assigned credits claimed on FTB 3544, Part B.
  • Forgetting the wage deduction adjustment: Reduce the wage deduction by the HHTC allowed for the year, including credit carried forward to future years.
  • Mixing refundable elections with carryovers: Do not include amounts elected as refundable on FTB 3870 in line 6. Credit limited by your tax liability is not eligible for that election, but may be carried over.

Questions people ask

How much credit can I receive for 2024?

The credit depends on each eligible individual's actual hours worked during the tax year:

  • 0–499 hours: $0
  • 500–999 hours: $2,500
  • 1,000–1,499 hours: $5,000
  • 1,500–1,999 hours: $7,500
  • 2,000 or more hours: $10,000

The total credit generated is limited to $30,000 per qualified taxpayer per taxable year.

Who is an eligible individual?

The person must be homeless or have received supportive services from a qualifying homeless services provider on the hire date or during the 180 days immediately before hiring. They must also have an unexpired HHTC certificate.

How long is an HHTC certificate valid?

The certificate expires one year after its issuance date. It must be completed by a continuum of care or a community-based service provider connected to the local coordinated entry system or local Homeless Management Information System.

Can unused credit be carried forward?

Yes. Credit that exceeds current-year tax liability or is limited by tentative minimum tax may be carried over for three years or until used up, whichever comes first. For credit disallowed by the $5,000,000 business credit limitation, the carryover period is extended by the number of taxable years the credit was not allowed if you do not elect future refundable treatment.

Official sources

All versions of 3831