California Natural Heritage Preservation Credit
Extracted from PDF file 2020-california-form-3503.pdf, last modified October 2020
Natural Heritage Preservation CreditTAXABLE YEAR 2020 CALIFORNIA FORM Natural Heritage Preservation Credit 3503 Attach to your California tax return. □ SSN or ITIN □ CA Corporation no. □ FEIN Name(s) as shown on your California tax return California Secretary of State file number Part I Wildlife Conservation Board (WCB) Qualified Contribution Donor’s name as shown on certificate Type of donated property Date donation was accepted Project name Fair market value WCB ID# Part II Available Credit 1 Fair market value from Part I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 00 2 Multiply the amount on line 1 by 55% (.55) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 00 3 Pass-through natural heritage preservation credit(s) from Schedule K-1 (100S, 541, 565, or 568). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 00 4 Total current year natural heritage preservation credit. Add line 2 and line 3 . . . . . . . . . . . . . . . . . . . . . . . . . 4 00 5 Credit carryover from 2019. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 00 6 Total available natural heritage preservation credit. Add line 4 and line 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 00 7 a Credit claimed. Enter the amount of the credit claimed on the current year tax return. See instructions. (Do not include any assigned credit claimed on form FTB 3544, Part B.). . . . . . . . . . . 7a b Total credit assigned. Enter the total amount from form FTB 3544, Part A, column (g). If you are not a corporation, enter -0-. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7b 00 00 8 Credit carryover available for future years. Add line 7a and line 7b, subtract the result from line 6 . . . . . . . . 8 00 What’s New A Credit Limitation – For taxable years beginning on or after January 1, 2020, and before January 1, 2023, there is a $5,000,000 limitation on the application of business credits for taxpayers. The total of all business credits including the carryover of any business credit for the taxable year may not reduce the “net tax”, for personal income tax filers, or the “tax”, for corporate filers, by more than $5,000,000. For taxpayers included in a combined report, the limitation is applied at the group level. The business credits disallowed due to the limitation may be carried over. The carryover period for disallowed credits is extended by the number of taxable years the credit was not allowed. This limitation does not apply to the Low-Income Housing Credit. Natural Heritage Preservation Credit – The Natural Heritage Preservation Credit expired on June 30, 2020. All qualified contributions must be made on or before that date. See General Information F, Carryover, for information regarding credit carryover. Use form FTB 3503, Natural Heritage Preservation Credit, to figure the amount of the credit. Also, use this form to claim pass-through credits received from S corporations, estates, trusts, partnerships, or limited liability companies (LLCs) classified as partnerships. S corporations, estates, trusts, partnerships, and LLCs classified as partnerships should complete form FTB 3503 to figure the amount of credit to pass through to shareholders, beneficiaries, partners, or members. Attach this form to Form 100S, California S Corporation Franchise or Income Tax Return; Form 541, California Fiduciary Income Tax Return; Form 565, Partnership Return of Income; or Form 568, Limited Liability Company Return of Income. Show the pass-through credit for each shareholder, beneficiary, partner, or member on Schedule K-1 (100S, 541, 565, or 568), Share of Income, Deductions, Credits, etc. General Information The WCB implemented a program for the protection of wildlife habitat, open space, and agricultural lands. Under this program, property can be contributed to the state, any local government, or to any nonprofit organization designated by a local government, based on specified criteria. The credit is allowed against net tax, in an amount equal to 55% of the fair market value of any qualified contribution made by the taxpayer to the state, any local government, or any designated nonprofit organization. The California Personal Income Tax Law and Corporation Tax Law allows a nonrefundable credit for certain approved contributions of real property. This credit can be used by taxpayers against the net tax in an amount equal to 55% of the fair market value of a qualified contribution that has been approved for acceptance by the Wildlife Conservation Board (WCB). For Privacy Notice, get FTB 1131 ENG/SP. B 7241203 Purpose Description FTB 3503 2020 Side 1 C Qualifications To qualify for this credit: # Make a contribution of property as defined in Section 37002 of the Public Resources Code on or before June 30, 2020. # The WCB must approve the contribution for acceptance. # Attach completed form FTB 3503 to your California tax return. For more information regarding qualified contributions, contact the WCB at 916.445.8448, or go to wcb.ca.gov. The credit of any qualified contribution passes through to shareholders, beneficiaries, partners, or members of the pass-through entity in accordance with their pro-rata interest in the entity as of the date of the qualified contribution. The term “pass-through entity” means any S corporation, partnership, or LLC treated as a partnership. D Limitations For taxable years beginning on or after January 1, 2020, and before January 1, 2023, there is a $5,000,000 limitation on the application of business credits, including carryover. For taxpayers included in a combined report, the limitation is applied at the group level. The limitation does not apply to the Low-Income Housing Credit. No credit will be allowed unless you received a certificate from the WCB, which shows that your qualified contribution was approved for acceptance. You must retain the certificate and make it available to the Franchise Tax Board upon request. S corporations may claim only 1/3 of the credit against the 1.5% entity-level tax (3.5% for financial S corporations). The remaining 2/3 must be disregarded and may not be used as a carryover. In addition, S corporations may pass through 100% of the credit to their shareholders. If a C corporation had unused credit carryovers when it elected S corporation status, the carryovers were reduced to 1/3 and transferred to the S corporation. The remaining 2/3 were disregarded. The allowable carryovers may be used to offset the 1.5% tax on net income in accordance with the respective carryover rules. These C corporation carryovers may not be passed through to shareholders. For more information, get Schedule C (100S), S Corporation Tax Credits. If a taxpayer owns an interest in a disregarded business entity [a single member limited liability company (SMLLC) not recognized by California, and for tax purposes is treated as a sole proprietorship owned by an individual or a branch owned by a corporation], the credit amount received from the disregarded entity that can be utilized is limited to the difference between the taxpayer’s regular tax figured with the income of the disregarded entity, and the taxpayer’s regular tax figured without the income of the disregarded entity. For more information on SMLLC, get Form 568, Limited Liability Company Tax Booklet. If the disregarded entity reports a loss, the taxpayer may not claim the credit this year but can carry over the credit amount received from the disregarded entity to the next succeeding taxable year. This credit cannot reduce the regular tax below the minimum franchise tax (corporations and S corporations), annual tax (limited partnerships, limited liability partnerships, and LLCs classified as a partnership), the alternative minimum tax (corporations, exempt organizations, individuals, and fiduciaries), the built-in gains tax (S corporations), or the excess net passive income tax (S corporations). This credit can reduce regular tax below Tentative Minimum Tax (TMT). Get Schedule P (100, 100W, 540, 540NR, or 541), Alternative Minimum Tax and Credit Limitations, for more information. This credit is in lieu of any other state tax credit or deduction that the taxpayer would otherwise be allowed for the contributed property or interest therein. This credit is not refundable. Page 2 FTB 3503 Instructions 2020 E Assignment of Credits Assigned Credits to Affiliated Corporations – Credit earned by members of a combined reporting group may be assigned to an affiliated corporation that is an eligible member of the same combined reporting group. A credit assigned may only be claimed by the affiliated corporation against its tax liability. For more information, get form FTB 3544, Assignment of Credit, or go to ftb.ca.gov and search for credit assignment. F Carryover If the available credit exceeds the current year tax liability, the unused credit may be carried over. For credits generated before January 1, 2015, the credit may be carried over for eight years or until the credit is exhausted. For credits generated on or after January 1, 2015, the credit carryover period has been extended to 15 years or until exhausted, whichever occurs first. Apply the carryover to the earliest taxable year possible. For taxable years beginning on or after January 1, 2020, and before January 1, 2023, the total of all business credits including carryover of any business credit for the taxable year may not reduce tax by more than $5,000,000. The credits disallowed due to the limitation may be carried over. The carryover period for disallowed credit is extended, without regard to carryover provisions, by the number of taxable years the credit was not allowed. This credit cannot be carried back and applied against a prior year’s tax. Specific Line Instructions Part I Wildlife Conservation Board (WCB) Qualified Contribution Enter the following information from the certificate you received from the WCB: # Name of donor # Type of property donated # Date donation was accepted # Approved fair market value amount # Project name # WCB ID # If you have more than one qualified contribution, figure each contribution on a separate form FTB 3503. Part II Available Credit Line 3 – Pass-through natural heritage preservation credit If you received more than one pass-through credit from S corporations, estates, trusts, partnerships, or LLCs classified as partnerships, add the amounts and enter the total on line 3. Attach a schedule showing the names and identification numbers of the entities from which the credits were passed through to you. Line 5 – Credit carryover Enter the carryover amount from your 2019 form FTB 3503. Line 7a – Credit claimed Do not include assigned credits claimed on form FTB 3544, Part B, List of Assigned Credit Received and/or Claimed by Assignee. This amount may be less than the amount on line 6 if your credit is limited by your tax liability. For more information, see General Information D, Limitations, and refer to the credit instructions in your tax booklet. Use credit code 213 when you claim this credit. Line 7b – Total credit assigned Corporations that assign credit to other corporations within the same combined reporting group must complete form FTB 3544, Part A, Election to Assign Credit Within Combined Reporting Group. Enter the total amount of credit assigned from form FTB 3544, Part A, column (g) on this line.
2020 Form 3503 Natural Heritage Preservation Credit
More about the California Form 3503 Corporate Income Tax Tax Credit TY 2020
We last updated the Natural Heritage Preservation Credit in March 2021, so this is the latest version of Form 3503, fully updated for tax year 2020. You can download or print current or past-year PDFs of Form 3503 directly from TaxFormFinder. You can print other California tax forms here.
Other California Corporate Income Tax Forms:
|Form Code||Form Name|
|Form 100-ES||Corporation Estimated Tax|
|3805-Z Booklet||Enterprise Zone Business Booklet|
|Form 541||California Fiduciary Income Tax Return|
|Form 541-B Form||Charitable Remainder and Pooled Income Trusts|
|Form 3522||Limited Liability Company Tax Voucher|
California usually releases forms for the current tax year between January and April. We last updated California Form 3503 from the Franchise Tax Board in March 2021.
Form 3503 is a California Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of California Form 3503
We have a total of ten past-year versions of Form 3503 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2020 Form 3503 Natural Heritage Preservation Credit
2019 California Form 3503 Natural Heritage Preservation Credit
2018 Form 3503 - California Form 3503 Natural Heritage Preservation Credit
2017 Form 3503 - Natural Heritage Preservation Credit
2016 Form 3503 -- Natural Heritage Preservation Credit California
2015 Form 3503 -- Natural Heritage Preservation Credit
2014 Form 3503 -- Natural Heritage Preservation Credit
2013 Form 3503 -- Natural Heritage Preservation Credit
2012 Form 3503
2011 Form 3503 -- Natural Heritage Preservation Credit
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