3831: Homeless Hiring Tax Credit (2025)
California · FTB · Used for tax years 2025
California Form 3831 is used to figure and claim the Homeless Hiring Tax Credit and report credits passed through to owners or beneficiaries. It reports available credit, credit claimed or assigned, amounts elected as refundable in future years, and credit carryover.
Who files this form
Use 2025 Form FTB 3831 to calculate 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 the credit is claimed, the employer must obtain an HHTC certificate and a tentative credit reservation for each eligible individual.
Also use this form if you:
- Claim HHTC passed through from an S corporation, estate, trust, partnership, or LLC classified as a partnership.
- Are one of those entities reporting credit to be passed through to shareholders, beneficiaries, partners, or members.
What you'll need
Have the following information and documents ready, as applicable:
- Names and tax identification numbers shown on your California return, plus the name and identification number of the taxpayer that generated the credit.
- A copy of each eligible individual's HHTC certificate. You must provide it to the Franchise Tax Board (FTB) upon request.
- A tentative credit reservation for each individual whose credit you claim.
- Each eligible individual's actual hours worked during 2025, for Worksheet 1. Keep the worksheet for your records, rather than attaching it.
- Schedule K-1 (100S, 541, 565, or 568) and its statement showing your share of any pass-through credit. Attach a statement to FTB 3831 listing the names and identification numbers of the entities passing the credit to you.
- Your 2024 FTB 3831, line 6, if claiming a prior-year carryover.
- FTB 3544 if assigning credits, or FTB 3870 if electing to make eligible disallowed credits refundable in future years.
How to file
Attach Form FTB 3831 to your California tax return.
S corporations, estates, trusts, partnerships, and LLCs classified as partnerships should attach it to Form 100S, 541, 565, or 568, as applicable. Report each recipient's pass-through credit on the applicable Schedule K-1.
Enter the credit claimed on FTB 3831, line 5a, and on your current tax return. Use credit code 244.
If making the election for refundable credit, attach completed FTB 3870 to your original, timely filed tax return.
The supplied text does not give a mailing address or instructions for e-filing FTB 3831.
Common mistakes
- Claiming credit without a reservation: Only claim credit for an eligible individual for whom you obtained a tentative credit reservation.
- Writing “same” for the taxpayer generating the credit: Complete that name and identification section even when it matches the taxpayer on the return.
- Answering Question A incorrectly as a pass-through investor: Investors in pass-through entities must check “No” and start on line 2.
- Including assigned credits on line 5a: Do not include assigned credits claimed on FTB 3544, Part B.
- Attaching Worksheet 1: Keep it for your records. Do not attach it to FTB 3831.
- Including ineligible amounts in the refundable-credit election: Do not include credits limited by your tax liability. Do not include amounts elected as refundable on FTB 3870 in the line 6 carryover.
Questions people ask
How much is the credit for 2025?
The credit per eligible individual depends on actual hours worked during the taxable year:
- 0 to 499 hours: $0.
- 500 to 999 hours: $2,500.
- 1,000 to 1,499 hours: $5,000.
- 1,500 to 1,999 hours: $7,500.
- 2,000 or more hours: $10,000.
The total credit calculated on Worksheet 1 is limited to $30,000 per qualified taxpayer.
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 hire. They must also have an unexpired HHTC certificate. The certificate expires one year after issuance.
How do I get a tentative credit reservation?
Use the FTB's online reservation system. Go to ftb.ca.gov and search for “hhtc.” You must obtain the reservation within 30 days of hiring an eligible individual or within 60 days of that individual receiving a new certification.
Can I carry unused credit forward?
Unused credit may generally be carried forward for three years or until exhausted, whichever comes first. If credit is disallowed by the $5,000,000 business-credit limitation and you do not elect to make it refundable, the carryover period is extended by the number of taxable years the credit was not allowed.