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| Depending on your tax rate and tax bracket, you may donate agricultural products and get a credit for transporting it. Use FTB Form 3547 to figure the Donated Agricultural Products Transportation Credit. This credit is a credit for transportation of agricultural products which you donate to nonprofit charitable organizations. The FTB Form 3547 is use on your personal California tax return as well as on your pass through entities such as S corporation, estates, trusts, partnerships and your limited liability companies (LLCs) which are treated as partnerships. When you claim the Donated Agricultural Products Transportation Credit, you are allowed a credit of 50% of the eligible transportation costs paid or incurred in connection with transporting of any donated agricultural products donated to nonprofit charitable organizations. Federal does not allow such a credit. Also, you cannot claim a credit on your California tax return for any expenses for which you claim a deduction on parts of your tax return such as your itemized deductions. If you claimed any of these items on other parts of your federal tax return, you need to adjust the amounts on your California tax return for the same items. Make the adjustments on Schedule CA of Form 540 or Form 540NR, line 12, line 17, or line 18, column C. |
| Credit for employer-paid child care center and services & Credit for employer-paid child care plan |
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Only imagine how frustrating it would be to have to miss going to work because you don’t have a babysitter for your children. Many single moms go through this sad experience too many times. What is even worst is actually leaving your kids locked up in your home alone in order for you to go to work. If anyone finds out that you have left your children unattended, they will most probably notify the child protective services and then you would be obligated to miss work to take care of the legal troubles. Luckily, many employers now provide child care facilities for their employees’ children in order to help the employee with the high cost of child care. There are tax breaks for having a child care center to which the employee can take their children to and not worry about missing work due to not being able to find a babysitter for their child. Employers can claim an employer-provided childcare facilities and services on their federal tax returns. The credit is 25% of the qualified childcare facility expenditures plus 10% of qualified childcare resource and referral expenditures paid or incurred during the tax year. There is a credit limit of $150,000 per year. However, for California tax purposes the credit for employer-paid child care center and service and employer-paid child care plan have expired. The credits started in 1994 and were allowed for expenses incurred before January 1, 2012. In dealing with California tax returns, you need to watch for this because there are credit carryovers allowed and for which you must make adjustments if there are credit carryovers. You need to fill out From FTB 3540 which is the form used for Credit Carryover and Recapture Summary. |
| Disabled access credit for eligible small businesses |
| Depending on what type of business you have or which kind of services you offer, you may be forced by the licensing authorities to install the necessary equipment or make the necessary changes to your building before the start of business to allow ease of access to the physically challenged. Some businesses may make the adjustments voluntarily and other businesses such as schools may be forced to renovate with the disabled access changes. The disabled access credit is available for small businesses. For federal tax purposes, small businesses can take up to 50% credit on qualified business expenditures made for the benefit of disabled individuals. Therefore, when a small business adapts their facilities to make it more accessible to disabled individuals, they get regarded with a disabled access credit of 50% of the cost of the expenses to do so. Small business must fall under the eligibility requirements in order to take the disabled access credit such having gross receipts for the preceding tax year that does not exceed $1 million or which had no more than 30 full-time employees in that preceding year. If the expense is used toward calculating the disabled access credit, then this same expense cannot be used to get a business deduction which would be considered receiving double benefit for the same expense. That is for federal tax purposes. That is true for California tax purposes as California conforms to this provision too. However, for |
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| Revised: 07/09/15 |
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