California OF CALIFORNIA FRANCHISE TAX BOARD California Forms & Instructions ... The geographic boundaries of an MEA are used to determine whether the tax incentive is

STATE OF CALIFORNIAFRANCHISE TAX BOARD

CaliforniaForms & Instructions

3808This booklet contains:

Form FTB 3808, Manufacturing Enhancement AreaCredit Summary

2001Manufacturing Enhancement Area

Business Booklet

Members of the Franchise Tax Board

Kathleen Connell, ChairClaude Parrish, Member

B. Timothy Gage, Member

Page 2 FTB 3808 Booklet 2001

Instructions for Manufacturing Enhancement Area Businesses —Form FTB 3808References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 1998, and to the California Revenue and Taxation Code (R&TC).

ContentsWhat’s New . . . . . . . . . . . . . . . . . . . . . . . . . . 2General Information . . . . . . . . . . . . . . . . . . 2Hiring Credit . . . . . . . . . . . . . . . . . . . . . . . . 3Hiring Credit & Recapture Worksheet . . . . . 5Doing Business Totally Within an MEA,

Within and Outside an MEA, or in MoreThan One MEA . . . . . . . . . . . . . . . . . . . . 6

Income Apportionment Worksheet . . . . . . . 7Income or Loss Worksheet . . . . . . . . . . . . . 9Computation of Credit Limitations . . . . . . . 10Standard Industrial Classification Manual,

1987 Edition (Partial Listing) . . . . . . . . . 13Codes for Principal Business Activity . . . . . 15Form FTB 3808, Manufacturing

Enhancement Area Credit Summary . . . 19Computation of Credit Limitations

Worksheet . . . . . . . . . . . . . . . . . . . . . . . 20How to Get California Tax Information . . . . 23Automated Toll-Free Phone Service . . . . . . 24

What’s NewFormsFor the 2001 tax year, a new form is availablefor nonresidents and part-year residents:Short Form 540NR, California Nonresident orPart-year Resident Income Tax Return. TheShort Form 540NR is for nonresident andpart-year taxpayers who have limited incomesources and deductions. The Form 540NRname has been changed to Long Form 540NR,California Nonresident or Part-year ResidentIncome Tax Return. References to theForm 540NR in this booklet mean the LongForm 540NR.

General InformationCalifornia has established four types ofeconomic development areas (EDAs) thathave related tax incentives:• Enterprise Zones (EZ);• Local Agency Military Base Recovery Areas

(LAMBRAs);• Manufacturing Enhancement Areas (MEAs);

and• The Targeted Tax Area (TTA).A business may qualify for special deductionsand credits if it operates or invests in a tradeor business located within the geographicboundaries of one of these EDAs.California statutes require the Franchise TaxBoard (FTB) to provide information to theCalifornia Legislature and the CaliforniaTechnology, Trade and Commerce Agency(TTCA) regarding the number of businessesusing the EDA tax incentives, types of EDA taxincentives being used, and in which EDAs thebusinesses are claiming the tax incentives.Complete items A through J on formFTB 3808, Manufacturing Enhancement AreaCredit Summary, as applicable. This informa-

tion will be used to meet the FTB’s statutoryreporting requirement.For information about:• Enterprise zone tax incentives, get

FTB 3805Z, Enterprise Zone BusinessBooklet;

• LAMBRA tax incentives, get FTB 3807,Local Agency Military Base Recovery AreaBusiness Booklet; or

• TTA tax incentives, get FTB 3809, TargetedTax Area Business Booklet.

Federal/State ConformityIn general, California law conforms to theInternal Revenue Code (IRC) as of January 1,1998. However, there are continuing differ-ences between California and federal law.California has not conformed to most of thechanges made to the IRC by the federalInternal Revenue Service Restructuring andReform Act of 1998 (Public Law 105-206) andthe Ticket to Work and Work IncentivesImprovement Act of 1999 (Public Law 106-170). California has not conformed to any ofthe changes made by the Tax and Trade ReliefExtension Act of 1998 (Public Law 105-277),the Miscellaneous Trade and TechnicalCorrections Act of 1999 (Public Law 106-36),the FSC Repeal and Extraterritorial IncomeExclusion Act of 2000 (Public Law 106-519),the Consolidated Appropriations Act of 2001(Public Law 106-554), and the EconomicGrowth and Tax Relief Reconciliation Act of2001 (Public Law 107-16).

A PurposeUse this booklet to determine the correctamount of hiring credit that a business mayclaim for operating or investing in a trade orbusiness within an MEA. Complete theworksheets in this booklet for the MEA hiringcredit. Then enter the hiring credit amount onform FTB 3808.

B How to Claim The CreditTo claim the MEA hiring credit, the businessmust attach a completed form FTB 3808 to itsCalifornia tax return.Attach a separate form FTB 3808 for eachbusiness you operate or invest in that islocated within an MEA.• For corporations that operate a business in

an MEA, complete all the Worksheetsexcept for Worksheet II, Section B toreport credits and deductions incurred.

• For sole proprietors that operate a businessin an MEA, complete all the worksheets toreport credits and deductions incurred.

• For trusts, estates, partnerships, and LLCsthat are classified as partnerships thatoperate in an MEA, complete Worksheet I,Worksheet II, Section A, and formFTB 3808, Side 1 to report credits anddeductions incurred.

• Individual investors receiving pass-throughMEA credits, or the business expensededuction, complete Worksheet II,Section B, Worksheet III, and formFTB 3808, Side 1. All other investors,complete Worksheet II, Section A,Worksheet III, and form FTB 3808, Side 1.

To assist with the processing of the tax return,indicate that the business operates or investswithin an MEA by doing the following:Form 540 filers: Claim the MEA tax incen-

tive on Form 540, lines 14and 28, as applicable.

Form 540NR filers: Claim the MEA tax incen-tive on Form 540NR, lines14 and 37, as applicable.

Form 100 filers: Claim the MEA tax incen-tive on Form 100, line 15,and line 25 throughline 27, as applicable.

Form 100S filers: Claim the MEA taxincentive on Form 100S,line 23 through line 25,as applicable.

Form 100W filers: Claim the MEA taxincentives on Form 100W,line 15, and line 25through line 27, asapplicable.

Form 109 filers: Check the “Yes” box forthe EZ, LARZ, LAMBRA,MEA, or TTA question Gon the top of Form 109,Side 1.

Note: Be sure to keep all completedworksheets and supporting documents foryour records.

C Manufacturing Enhance-ment Area Designation

MEAs were established in California tostimulate development in selectedeconomically depressed areas. The MEAprovides a hiring incentive for entities andindividuals who operate or invest in abusiness located within a designated MEA.Businesses operating within an MEA do notneed to qualify or receive prior approval totake advantage of this special tax incentive.However, to take advantage of the hiringcredit, a completed Form TCA EZ1 should beobtained from the local agency responsible forverifying employee eligibility.Note: There are two MEAs in California. Theyare the cities of Brawley and Calexico and areboth located in Imperial County. They receivedtheir final designation as MEAs effectiveOctober 1, 1998.

D Important ConsiderationThe MEA tax incentive is available to busi-nesses operating within an MEA and can only

FTB 3808 Booklet 2001 Page 3

be taken for wages paid or incurred on orafter the date the area received final designa-tion and before the designation expires.

E Geographic BoundariesThe geographic boundaries of an MEA areused to determine whether the tax incentive isavailable to a business in a specified location.Further information about the geographicboundaries of an MEA is available from:

ENTERPRISE ZONE PROGRAMSCALIFORNIA TECHNOLOGY, TRADE ANDCOMMERCE AGENCY801 K STREET SUITE 1700SACRAMENTO CA 95814Telephone: (916) 324-8211FAX: (916) 322-7214Website: www.commerce.ca.gov

If your business is located within and outsidean MEA, see Part II for instructions on how toapportion income.

F Forms TableForms referred to in this booklet include:Form 100 California Corporation

Franchise or IncomeTax Return

Form 100S California S CorporationFranchise or IncomeTax Return

Form 100W California CorporationFranchise or Income TaxReturn — Water’s-Edge Filers

Form 109 California ExemptOrganization BusinessIncome Tax Return

Form 540 California Resident IncomeTax Return

Form 540NR California Nonresident orPart-Year Resident Income TaxReturn

Form 541 California Fiduciary IncomeTax Return

Form 565 Partnership Return of IncomeForm 568 Limited Liability Company

Return of IncomeSchedule CA California Adjustments —(540) Residents

Schedule CA California Adjustments —(540NR) Nonresidents or

Part-Year ResidentsSchedule P Alternative Minimum Tax and

Credit LimitationsFTB Pub. 1061 Guidelines for Corporations

filing a Combined ReportSchedule C S Corporation Tax Credit(100S)

Schedule K-1 Shareholder’s Share of Income,(100S) Deductions, Credits, etc.

Schedule K-1 Beneficiary’s Share of Income,(541) Deductions, Credits, etc.

Schedule K-1 Partner’s Share of Income,(565) Deductions, Credits, etc.

Schedule K-1 Member’s Share of Income,(568) Deductions, Credits, etc.

Schedule R Apportionment and Allocationof Income

Instructions for QualifiedTaxpayer’s Standard IndustrialClassification (SIC) CodeActivityThe FTB implemented the new PrincipalBusiness Activity (PBA) code chart that isbased on the North American IndustryClassification System (NAICS), 1997 Edition.The PBA codes are listed on pages 15 through17. However, for purposes of qualifying for theMEA hiring credit, refer to pages 13 and 14 fora list of qualified SIC codes. The PBA andNAICS codes cannot be used. Do not enter thePBA code from your state or federal tax return.Enter the SIC code of the establishment thatqualifies you to take this credit on formFTB 3808, Side 1. If your enterprise has morethan one establishment, and if more than oneof the establishments qualifies you to take thiscredit, enter the SIC code that best representsyour primary qualifying establishment.

Instructions for items Athrough JFor corporations, estates, trusts, partnerships,LLCs classified as partnerships, exemptorganizations, and sole proprietors whooperate businesses in an MEA, complete itemsA through J.Investors of pass-through entities, completeitems A through D. See page 19.

Part I Hiring CreditA qualified employer conducting a trade orbusiness within an MEA may claim a hiringcredit for wages paid or incurred to hirecertain disadvantaged individuals. Qualifiedemployers must:• Be engaged in a line of business described in

Standard Industrial Classification (SIC)Codes 0211 through 0291, Code 0723, orCodes 2011 through 3999 of the StandardIndustrial Classification Manual, 1987Edition;

• Conduct a trade or business within the MEA;• Have at least 50% of its workforce that was

hired after the MEA designation, beresidents of the county in which the MEAis located at the time of hire; and

• Have at least 30% of the qualified countyresident workforce described above bequalified disadvantaged individuals.

A “qualified disadvantaged individual” is anindividual who at the time hired was any of thefollowing:1. A person receiving or eligible to receive

subsidized employment, training, orservices funded by the federal Job TrainingPartnership Act (JTPA), or its successor;or

2. A person eligible to be a voluntary ormandatory registrant under the GreaterAvenues for Independence Act of 1985(GAIN), or its successor; or

3. A person who has been certified eligibleunder the federal Targeted Jobs Tax CreditProgram, whether or not this program isin effect.

An employer may claim a credit for thequalified wages paid or incurred to a qualifieddisadvantaged individual who:• Was hired after the MEA received its final

designation (See General Information C,Manufacturing Enhancement AreaDesignation);

• Spends at least 90% of his or her worktime for the qualified employer onactivities directly related to the conduct ofa trade or business activity within theboundaries of the MEA; and

• Performs at least 50% of the work for thequalified employer within the boundariesof the MEA.

The percentage of wages used to compute thecredit depends on the number of years theemployee works for the employer in the MEA.The applicable percentage begins at 50% anddeclines 10% for each year of employment.After the fifth year of employment, no creditcan be generated.Wages that qualify for the hiring credit arethose wages paid or incurred to hire aqualified disadvantaged individual for theconsecutive 60-month period beginning onthe first day the individual commencedemployment with the employer. For anemployer that operates a business that hasregularly occurring seasonal or intermittentemployment decreases and increases,reemployment of an individual is not a newhire; rather, it is a continuation of the prioremployment and does not constitute com-mencement of employment for the qualifiedwages test.The credit is based on the smaller of thefollowing:• The actual hourly rate paid or incurred by

the employer for work performed by theemployee during the taxable year; or

• 150% of the minimum hourly wageestablished by the Industrial WelfareCommission.

Where the California minimum wage is higherthan the federal minimum wage, the Californiaminimum wage is used for purposes ofcomputing the MEA hiring credit. EffectiveJanuary 1, 2001, the established minimumwage is $6.25 per hour. Effective January 1,2002, the minimum wage is increased to $6.75per hour. For purposes of computing the MEAhiring credit, 150% of the minimum wage is$9.37 per hour ($10.12 beginningJanuary 1, 2002).Example:John Anderson was hired January 1, 2001.John’s hourly rate for month 1 was $7.00. Atthe beginning of month 2, his hourly rateincreased to $8.00. For month 3, John’shourly rate increased to $10.00. The hourlyrate that qualifies for the credit is limited to150% of the minimum wage, or $9.37 perhour.


Month(s) Hours x Hourly = Qualified wagesper month rate per month

1 175 $7.00 $1,225.002 170 8.00 $1,360.003 170 9.37 $1,592.90

Record KeepingFor each qualified employee, keep a scheduleof the first 60 months of employment showing(at least):• Employee’s name;• Date the employee was hired;• The employee’s address at the time of hire;• Number of hours the employee worked for

each month of employment;• Smaller of the hourly rate of pay for each

month of employment or 150% of theminimum wage;

• Location of the employee’s job site andduties performed; and

• Total qualified wages per month for eachmonth of employment.

Instructions for Worksheet I —Hiring Credit & Recapture

Section A – Credit ComputationLine 1, column (a) – Enter the name of eachqualified employee. Attach additionalschedule(s) if necessary.Line 1, column (b) through column (e) –Enter the qualified wages paid or incurredduring the taxable year to each employeelisted in column (a) in the appropriate column.Line 2, column (b) through column (e) – Addthe amounts in each column. Note: Thecumulative qualified wages used to computethe MEA hiring credit cannot exceed$2,000,000. This limit applies to eachtaxpayer for each taxable year.Line 3, column (b) through column (e) –Multiply the total in each column of line 2 bythe percentage in each column.Line 5 – The federal jobs tax credit to includeon this line is the Work Opportunity Tax Credit(Currently, this line will be zero sinceCalifornia conforms to the IRC as ofJanuary 1, 1998).Note: No other California jobs tax credit maybe claimed for the same wage expense paid toemployees shown in line 1, column (a).Line 6 – For partnerships and LLCs classifiedas partnerships, enter the amount from line 6,on form FTB 3808, Side 1, Part I, line 1a. Also,include the current year hiring credit amounton Forms 565 and 568, Schedule K, line 14and the distributive share of the credit topartners and members on Schedule K-1 line14. In addition, add the entire amount of thecredit on Schedule K, line 1, column (c).For corporations, individuals, estates, andtrusts, enter the amount from line 6 on formFTB 3808, Side 2, Worksheet III, as follows:• Part II, line 6B, column (b) for corpora-

tions, individuals, and estates and trusts;• Part III, line 7, column (b) for S corpora-

tions; or

• Part IV, line 8, column (b) for corporationsand S corporations subject to paying onlythe minimum franchise tax.

Credit Limitations• The cumulative qualified wages used to

compute the MEA hiring credit cannotexceed $2,000,000. This limit applies toeach taxpayer for each taxable year,regardless of the number of qualifieddisadvantaged individuals employed.

• Businesses must reduce any deduction forwages by the amount of the MEA hiringcredit on Worksheet I, Section A, line 6.

• S corporations are allowed only 1/3 of thecredit. S corporations must reduce theirwage deduction by 1/3 of the amount onWorksheet I, Section A, line 6 and onForm 100S, line 7. In addition, theS corporation must make an adjustmentfor the entire amount of the credit onSchedule K (100S), line 1, column (c).Example: In 2001, an S corporationqualified for a $3,000 MEA hiring credit.The S corporation can claim a credit for$1,000 ($3,000 x 1/3). On Form 100S,Schedule K, line 1, column (c), theS corporation would add $3,000 to theS corporation’s ordinary income or loss toreflect the credit passed through to theshareholder(s).

• The amount of hiring credit claimed maynot exceed the amount of tax on the MEAbusiness income in any year. Use Work-sheet III on Side 2 of form FTB 3808 tocompute the credit limitation.

• In the case where an employee qualifiesthe business to take the MEA hiring creditas well as another credit for the samewage expense, the business may claimonly one credit for that wage expense.

• The business may carry over any unusedhiring credit to future years until the creditis exhausted. In the case of an S corpora-tion, 2/3 of the credit is lost and theremaining 1/3 can be carried over if itcannot be used in the current year.

For additional information about the treatmentof credits for S corporations, see Part III.

Section B – Credit RecaptureThe employer must recapture (add back to thetax liability) the amount of credit attributableto an employee’s wages if the employerterminates the employee at anytime during thelonger of:• The first 270 days of employment (whether

or not consecutive); or• 90 days of employment plus 270 calendar

days.Employers of seasonal employees mustrecapture the amount of credit attributable toa seasonal employee’s wages if the employerterminates employment before the completionof 270 days of employment during the60-month period beginning the day theemployee commences employment with theemployer.

A “day of employment” means any day forwhich the employee receives wage compensa-tion (including a paid sick day, holiday, orvacation day).The employer must add to the current year’stax the amount of credit claimed in the year oftermination and all prior years in which thecredit was claimed for the terminatedemployee.Note: The credit recapture does not apply ifthe termination of employment was:• Voluntary on the part of the employee;• In response to misconduct of the

employee;• Caused by the employee becoming

disabled, (unless the employee was able toreturn to work and the employer did notoffer to reemploy the individual);

• Carried out so that other qualifiedindividuals could be hired, creating a netincrease in both the number of qualifiedemployees and the number of hoursworked; or

• Due to a substantial reduction in theemployer’s trade or business operations.

Line 1, column (a) – Enter the name of theterminated employee. Attach additionalschedule(s) if necessary.Line 1, column (b) – Enter the amount ofcredit recapture for each employee listed incolumn (a).Line 2 – Enter the amount from line 2,column (b) on form FTB 3808, Side 1, line 3.Also, include the amount of hiring creditrecapture on your California tax return orschedule as follows:• Form 100, Schedule J, line 5;• Form 100S, Schedule J, line 5 and

Schedule K-1 (100S), line 23;• Form 100W, Schedule J, line 5;• Form 109, Schedule K, line 4;• Form 540, line 36;• Form 540NR, line 45;• Form 541, line 21b and

Schedule K-1 (541), line 11e;• Form 565, Schedule K, line 22 and

Schedule K-1 (565), line 22; or• Form 568, Schedule K, line 22 and

Schedule K-1 (568), line 22.Indicate that you included the hiring creditrecapture on your tax return by writing“FTB 3808”, in the space provided on theschedule or form.Partnerships and LLCs classified as partner-ships must identify the recapture amounts fortheir partners and members on Schedule K-1(565 or 568).S corporation shareholders must recapturethe portion of credit that was previouslyclaimed, based on the terminated employee’swages. S corporations must also identify therecapture amount for shareholders onSchedule K-1 (100S). This amount will differfrom the amount recaptured by theS corporation on Form 100S, Schedule J.


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Worksheet I Hiring Credit & Recapture — Manufacturing Enhancement AreaSection A Credit Computation

Qualified wages paid or incurred for year of employment(a) (b) (c) (d) (e) (f)

Employee’s name 1st year 2nd year 3rd year 4th year 5th year1

2 Total. See instructions . . . . . . . . . . . . . . . . ..50 .40 .30 .20 .10

3 Multiply line 2 by the percentage for eachcolumn. See instructions . . . . . . . . . . . . . . .

4 Add the amounts on line 3, column (b) through column (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5 Enter the amount of the 2001 federal jobs tax credit allowed. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

6 Subtract the amount on line 5 from the amount on line 4 and enter the result. See instructions . . . . . . . . . . . . . . . . . . . . 6Note: You cannot take the MEA hiring credit as well as another credit for the same wage expense.

Section B Credit Recapture(a) (b)

Terminated employee’s name Recapture amount1

2 Total amount of credit recapture. Add the amounts in column (b). See instructions for where toreport on your California tax return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2


Part II Doing Business TotallyWithin an MEA, Within andOutside an MEA, or in Morethan One MEAThe MEA tax incentive is limited to the tax onbusiness income attributable to operationswithin the area. If the business is locatedtotally within an MEA, within and outside anMEA, or in more than one MEA, you mustdetermine the portion of total businessoperations that are attributable to each MEA.

Business Income vs.Nonbusiness IncomeOnly business income is apportioned to theMEA to determine the incentive limitation. TheMEA tax incentive is limited to tax onbusiness income attributable to the operationswithin the MEA.Business income is defined as income arisingfrom transactions and activities in the regularcourse of the trade or business. Businessincome includes income from tangible andintangible property if the acquisition,management, and disposition of the propertyconstitute integral parts of the regular trade orbusiness operations. Nonbusiness income isall income other than business income. GetTitle 18 Cal. Code Reg. Section 25120 forfurther references and examples of nonbusi-ness income.For an individual, business income includesbut is not limited to, California businessincome or loss from Schedules C, D, D-1 (orfederal Form 4797, Sales of BusinessProperty, if you did not have to file aSchedule D-1), E, and F, as well as wages. Besure to include casualty losses, disasterlosses, and any business deductions reportedon federal Form 1040 Schedule A as itemizeddeductions.In essence all income which arises from theconduct of trade or business operations of ataxpayer is business income.Note: If you elected to carry back part or all ofyour current year disaster loss under IRCSection 165(i)(1), do not include the amountof the loss that was carried back in yourcurrent year business income for the MEA.Pass-through entities must report to theirshareholders, beneficiaries, partners, andmembers:1. The distributive (or pro-rata for

S corporations) share of the businessincome apportioned to the MEA; and

2. The distributive (or pro-rata forS corporations) share of the businesscapital gains and losses apportioned to theMEA included in item 1.

These items should be reported using theappropriate California schedules listed below:

• Schedule K-1 (100S), line 23;• Schedule K-1 (541), line 11e;• Schedule K-1 (565), line 22; or• Schedule K-1 (568), line 22.

Form 540 and Form 540NR filers, refer toWorksheet II, Section B to compute businessincome apportioned to the MEA.For business entities, including sole propri-etors, use Worksheet II, Section A to computebusiness income apportioned to the MEA.

Income ApportionmentBusiness income is apportioned to an MEA bymultiplying the total California businessincome of the taxpayer by a fraction. Thefraction consists of numerator which is theproperty factor plus the payroll factor, and thedenominator which is two.Property FactorProperty is defined as the average value of allreal and tangible personal property owned orrented by the business and used during thetaxable year to produce business income.Note: Property is included in the factor if itwas available for use during the taxable year.Property owned by the business is valued atits original cost. Original cost is the basis ofthe property for federal income tax purposes(prior to any federal adjustment) at the time ofacquisition by the business, adjusted forsubsequent capital additions or improvementsand partial dispositions because of sale orexchange. Allowance for depreciation is notconsidered.Rented property is valued at eight times thenet annual rental rate. The net annual rentalrate for any item of rented property is the totalrent paid for the property, less aggregateannual subrental rates paid by subtenants.The numerator of the property factor is theaverage value of the real and tangible personalproperty owned or rented by the business andused within the MEA during the taxable yearto produce MEA business income(column (b)).The denominator of the property factor is thetotal average value of all real and tangiblepersonal property owned or rented and usedduring the taxable year within California(column (a)).Payroll FactorPayroll is defined as the total amount paid tothe business’s employees for compensationfor the production of business income duringthe taxable year.Compensation means wages, salaries,commissions, and any other form ofremuneration paid directly to employees forpersonal services.

Payments made to independent contractors orany other person not properly classified as anemployee are excluded.Compensation Within the MEACompensation is considered to be within theMEA if any one of the following tests is met:1. The employee’s services are performed

within the geographical boundaries of theMEA; or

2. The employee’s services are performedwithin and outside the MEA, but theservices performed outside the MEA areincidental to the employee’s service withinthe MEA.Incidental means any temporary ortransitory service rendered in connectionwith an isolated transaction.

3. If the employee’s services are performedwithin and outside the MEA, theemployee’s compensation will be attributedto the MEA if:A. The employee’s base of operations is

within the MEA; orB. There is no base of operations in any

other part of the state in which somepart of the service is performed, but theplace from which the service is directedor controlled is within the MEA; or

C. The base of operations or the placefrom which the service is directed orcontrolled is not in any other part of thestate in which some part of the serviceis performed but the employee’sresidence is within the MEA.

Base of operations is the permanent placefrom which the employees start work andcustomarily return in order to receiveinstruction from the taxpayer or communica-tions from their customers or persons; toreplenish stock or other material; to repairequipment; or to perform any other functionsnecessary in the exercise of their trade orprofession at some other point or points.The numerator of the payroll factor is the totalcompensation paid to employees for workingwithin the MEA during the taxable or incomeyear (column (b)).The denominator of the payroll factor is thetotal compensation paid to employeesworking in California (column (a)).Corporations Which File a Combined ReportBusiness income for each corporation doingbusiness in an MEA will be its businessincome apportioned to California (See FTBPub. 1061 for further information oncombined reports and entity income appor-tionment.) The MEA property and payrollfactors used in the determination of MEAincome includes only the taxpayer’s Californiaamounts in the denominator.


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Worksheet II Manufacturing Enhancement AreaSection ASection ASection ASection ASection A Income ApportionmentUse Worksheet II, Section A, if your business has net (a) (b) (c)income from sources within and outside an MEA. Total within Total within Percentage within an MEA

California an MEA (column (b) ÷ column (a))PROPERTY FACTOR1 Average yearly value of owned real and tangible personal

property used in the business (at original cost). See instruc-tions for more information. Exclude property not connectedwith the business and the value of construction in progress.Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Machinery and equipment . . . . . . . . . . . . . . . . . . . . . .Furniture and fixtures . . . . . . . . . . . . . . . . . . . . . . . . .Delivery equipment . . . . . . . . . . . . . . . . . . . . . . . . . . .Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other tangible assets (attach schedule) . . . . . . . . . . .Rented property used in the business.

See instructions for more information . . . . . . . . . .Total property values . . . . . . . . . . . . . . . . . . . . . . . . .

PAYROLL FACTOR2 Employees’ wages, salaries, commissions, and other

compensation related to business income included inthe return.Total payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 Total percentage (sum of the percentages in column (c))4 Average apportionment percentage (1/2 of line 3).

Enter here and on form FTB 3808, Side 1, line 2 . . . . .

Note: The average apportionment percentage shown on line 4 represents the portion of the taxpayer’s total business that is attributable to activitiesconducted within the MEA. Also, those factors with zero balances in the totals of column (a) will not be included in the computation of the averageapportionment percentage. For example, if the taxpayer does not have any payroll within or outside the MEA, then the average apportionmentpercentage would be computed by dividing line 3 by one instead of by two as normally instructed.

Example: Computation of MEA incomeassigned to each entity operating within theMEAParent Corporation A has two subsidiaries,B and C. Corporations A and B operate withinan MEA. The combined group operates withinand outside California and apportions itsincome to California using Schedule R.Assume the combined group’s businessincome apportioned to California was$1,000,000 and Corporation A and B’s shareof California business income is $228,000 and$250,000 respectively. Corporation A and B’sseparate MEA and separate California propertyand payroll factor amounts are shown below.Business income apportioned to the MEA wasdetermined as follows:

A BProperty FactorMEA property $1,000,000 $ 800,000California property $1,000,000 $1,200,000Apportionment % 100% 66.66%

Payroll FactorMEA payroll $800,000 $ 800,000California payroll $800,000 $1,000,000Apportionment % 100% 80%

Average Apport. % 100% 73.33%(Property + Payroll Factors)

2ApportionedBusiness Income $228,000 $250,000MEA Income $228,000 $183,333

Instructions for Worksheet II— ManufacturingEnhancement Area

Section A – IncomeApportionmentNote: If the business operates solely within asingle MEA and all its property and payroll aresolely within that single MEA, you do not haveto complete this worksheet. Enter 100%(1.00) on line 4.Use Worksheet II, Section A, IncomeApportionment, to determine the amount ofbusiness income apportioned to the MEA. TheMEA business income determines the amountof the tax incentive that can be used.Only California source business income isapportioned to the MEA. A taxpayer’s MEAbusiness income is its California apportionedbusiness income multiplied by the specificMEA apportionment percentage.The MEA property and payroll factors used inthe determination of apportionable businessincome include only the taxpayer’s Californiaamounts in the denominator.


Section B – Income or LossForm 540 and Form 540NR filers, useWorksheet II, Section B to determine theamount to enter on Worksheet III, Side 2 ofform FTB 3808, Part I, line 1 and line 3.Do not include disaster losses in any amountsused in the table.Only California source business income isapportioned to the MEA.The first step is to determine which portion ofthe taxpayer’s net income is “businessincome” and which portion is “nonbusinessincome,” since only business income may beapportioned to the MEA. See Part II, DoingBusiness Totally Within an MEA, Within andOutside an MEA, or in More than One MEA, fora complete discussion of business andnonbusiness income.Business income or loss reported on federalForm 1040 Schedules C, C-EZ, E, F, and otherschedules are reported on lines 6 throughline 9. Line 11 and line 12 report businessgains or losses reported on Schedule D andSchedule D-1. All business income and lossesshould be adjusted for any differencesbetween California and federal amounts asshown on the Schedule CA.

Part I Individual Income andExpense ItemsWagesTaxpayers with wages from a companylocated within and outside an MEA mustdetermine the MEA wage income by enteringthe percentage of the time that they workedwithin the MEA in column (b) (during theperiod for which the wages entered on line 1were earned). This percentage must bedetermined based on their record of time andevents such as a travel log or entries in a dailyplanner.

Part II Pass-Through Income orLossMultiple Pass-Through EntitiesIf you are a shareholder, beneficiary, partner,or member in multiple pass-through entitieswith businesses located within and outside anMEA from which you received MEA taxincentives, see the example below forcomputing business income in the MEA.Example:

Trade orbusinessincomefromSchedule K-1 Entity’s MEA MEA

Pass-through (100S, 541, apportionment apportionedentity 565, or 568) percentage income

ABC, Inc. $40,000 80% $32,00A, B, & C 30,000 10% 3,000ABC, LLC 10,000 50% 5,000Total $40,000

Part III Taxpayer’s Trade orBusinessBusiness Income or LossUse business income or loss from federalForm 1040 Schedules C, C-EZ, E, and F, plusCalifornia adjustments from Schedule CA (540or 540NR) for each trade or business. Also,include business capital gains and losses fromSchedule D and business gains and lossesfrom Schedule D-1.Income ComputationNote: To compute worksheet III and formFTB 3808, Side 1, you must completeworksheet II, Section B. The instructionsbelow refer to Worksheet II, Section B.Located Entirely Within the MEALine 6 – Line 9: If your business operationreported on federal Form 1040 Schedule C,C-EZ, E, F, or other schedule is entirely withinthe MEA, enter the income or loss from thisactivity in column (a) and enter 1.00 incolumn (b).Line 11 and Line 12: If the gain or lossreported on Schedule D or Schedule D-1 (asadjusted on Schedule CA (540 or 540NR))was attributed to an asset used in an activityconducted entirely within the MEA, enter thegain or loss reported in column (a) and enter1.00 in column (b).Located Entirely Within CaliforniaLine 6 – Line 9: If your business operationreported on federal Form 1040 Schedule C,C-EZ, E, F, or other schedule is entirely withinCalifornia, enter the income or loss from thisactivity in column (a). To determine theapportionment percentage in column (b),complete Worksheet II, Section A.Enter the percentage from Worksheet II,Section A, line 4, column (c) on Worksheet II,Section B, column (b).Line 11 and Line 12: If the gain or lossreported on Schedule D or Schedule D-1 (asadjusted on Schedule CA (540 or 540NR))was attributed to an asset used in an activityconducted entirely within California, enter thegain or loss reported in column (a). Todetermine the apportionment percentage incolumn (b), complete Worksheet II, Section A.Enter the percentage from Worksheet II,Section A, line 4, column (c) on Worksheet II,Section B, column (b).

Located Within and Outside California andthe MEALine 6 – Line 9: If your business operationreported on federal Form 1040 Schedule C,C-EZ, E, F, or other schedule is within andoutside the MEA and California, getSchedule R and complete line 1 throughline 13b. Enter the amount from Schedule R,line 13b on column (a) of this worksheet. Todetermine the apportionment percentage incolumn (b), complete Worksheet II, Section A.Enter the percentage from Worksheet II,Section A, line 4, column (c) on Worksheet II,Section B, column (b).Note: When computing Schedule R, disregardany reference to Form 100, Form 100W,Form 565, or Form 568. Also, disregard anyreference to Schedule R-3, Schedule R-4, orSchedule R-5, and skip line 11.Nonresidents that have an apportioningbusiness that operates within the MEA shouldhave already computed Schedule R, and canuse those amounts when that schedule isreferenced. Residents that have an apportion-ing business will not have completed aSchedule R for California income taxpurposes since they are taxed on income fromall sources. However, in order for residents todetermine their California source businessincome for purposes of the MEA computation,they must also complete a Schedule R.Line 11 and Line 12: If the gain or lossreported on Schedule D or Schedule D-1 (asadjusted on Schedule CA (540 or 540NR))was attributed to an asset used in an activityconducted within and outside the MEA andCalifornia, get Schedule R and completeSchedule R-1. Multiply the gain or lossreported by the apportionment percentage onSchedule R-1, line 5 and enter the result oncolumn (a). To determine the apportionmentpercentage in column (b), completeWorksheet II, Section A. Enter the percentagefrom Worksheet II, Section A, line 4,column (c) on Worksheet II, Section B,column (b).Line 14 – If, in computing your income orloss, the result on line 14, column (c), is anegative amount, you do not have anybusiness income attributable to the MEA. Youcannot use any of the MEA hiring credit in thecurrent taxable year.If the amount on line 14, column (c), is apositive amount, enter the amount onWorksheet III, Part I, line 1 and line 3 (skipline 2).


Worksheet II Manufacturing Enhancement AreaSection B Income or LossPart I Individual Income and Expense Items. See instructions.

(a) (b) (c)Amount % of time providing services in Apportioned amount

the MEA (a) x (b)

1 Wages . . . . . . . . . . . . . . . . . . . . . . . . .

2 Employee business expenses . . . . . . .

3 Subtotal: Enter the total of line 1, and line 2, column (c) here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II Pass-Through Income or Loss. See instructions.(a) (b)

Name of entity Distributive or pro-rata share of business income or loss apportionedto the MEA from Schedule K-1 (100S, 541, 565, or 568) including

capital gains and losses

4

5 Subtotal: Enter the total of line 4, column (b) here . . . . . . . . . . . . . . . . . .

Part III Taxpayer’s Trade or Business. See instructions.(a) (b) (c)

Business income or loss Apportionment % Apportioned income or lossfor the MEA (a) x (b)

6 Schedule C or C-EZ . . . . . . . . . . . . . . .

7 Schedule E (Rentals) . . . . . . . . . . . . . .

8 Schedule F . . . . . . . . . . . . . . . . . . . . . .

9 Other business income or loss . . . . . .

10 Subtotal: Enter the total of line 6 through line 9, column (c) here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(a) (b) (c)

Business gain Apportionment % Apportioned gain or lossor loss for the MEA (a) x (b)

11 Schedule D . . . . . . . . . . . . . . . . . . . . .

12 Schedule D-1 . . . . . . . . . . . . . . . . . . .

13 Subtotal: Enter the total of line 11 and line 12, column (c) here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14 Total: Enter the total of column (c) for line 3, line 10, and line 13, and line 5, column (b) here . . . . . . . . . . . .


Part III Computation of CreditLimitationsThe amount of the MEA hiring credit you canclaim on your California tax return is limitedby the amount of tax attributable to the MEAbusiness income. Use Worksheet III on formFTB 3808, Side 2 to compute this limitation.If a taxpayer owns an interest in a disregardedbusiness entity, the amount of the MEA hiringcredit that can be utilized is limited to thedifference between the taxpayer's regular taxcomputed with the income of the disregardedentity, and the taxpayer's regular tax com-puted without the income of the disregardedentity. For more information on disregardedbusiness entities, get Form 568, LimitedLiability Company Tax Booklet.Partnerships must allocate the MEA hiringcredit among the partners according to thepartner's distributive share as determined in awritten partnership agreement (R&TCSection 17039(e)).The MEA hiring credit you are otherwiseeligible to claim may be limited. Do not applythe credit against the minimum franchise tax(corporations and S corporations), the annualtax (partnerships, LLCs classified as partner-ships, and QSub) the alternative minimum tax(corporations, exempt organizations,individuals, and fiduciaries), the built-in gainstax (S corporations), or the excess net passiveincome tax (S corporations).Refer to the credit instructions in your taxbooklet for more information.Members of a Unitary or Combined GroupThe MEA hiring credit cannot be allocated orotherwise transferred to another taxpayer,even if the other taxpayer is a member of aunitary or combined group or otherwiseaffiliated with the taxpayer that earned thecredit. For example, a subsidiary corporationthat generates an MEA hiring credit cannotallocate the credit to the parent corporation.S Corporations and the Application of theMEA Hiring Credit An S corporation may use its MEA hiringcredit to reduce the MEA tax at both thecorporate and shareholder levels.An S corporation may use 1/3 of the MEAhiring credit to reduce the tax on theS corporation’s MEA business income. Inaddition, S corporation shareholders mayclaim their pro-rata share of the entire amountof the MEA hiring credits computed under thePersonal Income Tax Law.Example: In 2001, an S corporation qualifiedfor a $3,000 MEA hiring credit. TheS corporation will be able to use 1/3 of thecredit ($3,000 x 1/3 = $1,000) to offset the taxon the corporation’s MEA business income.The S corporation will also pass through a$3,000 MEA hiring credit to its shareholdersto offset their individual tax (computed underthe Personal Income Tax Law) on the MEAbusiness income.

S corporations should attach form FTB 3808to Form 100S, California S CorporationFranchise or Income Tax Return, to claim theMEA tax credits. If form FTB 3808 is notattached to the tax return, the credit may bedisallowed.Shareholders should attach Schedule(s) K-1(100S), Shareholder’s Share of Income,Deductions, Credits, etc., to their individualtax return.CarryoverIf the amount of credit available this yearexceeds your tax, you may carry over anyexcess credit to future years until exhausted.Apply the carryover to the earliest taxableyear(s) possible. In no event can the credit becarried back and applied against a prior year’stax.For S corporations, the amount of the 1/3credit that is in excess of the 1.5% entity-leveltax (3.5% for financial S corporations) in thecurrent year may also be carried forward andused in future years to offset the S corpora-tion entity-level tax. See the instructions forWorksheet III, Part III for more information.Credit Code NumberYou must use credit code number 211 toclaim the MEA hiring credit on your return.Using an incorrect code may cause a delay inallowing the credit.

Instructions for Worksheet III— Computation of CreditLimitationsNote: Worksheet III is on Side 2 of formFTB 3808.Partnerships and LLCs classified aspartnershipsDo not complete Worksheet III. The partnersand members of these types of entities shouldcomplete Worksheet III in order to determinethe amount of the MEA hiring credit that theymay claim on their California tax return.S corporations and their shareholders mustcomplete Worksheet III.Reporting Requirements of S Corporations,Estates, Trusts, Partnerships, and LLCsClassified as Partnerships• Report to shareholders, beneficiaries,

partners, and members, the distributive orpro-rata share of business income, loss,and deductions apportioned to the MEA;and

• Separately state any distributive or pro-rata share of business capital gains andlosses apportioned to the MEA included inthe amount above.

S corporationsComplete only Part I and Part III of thisworksheet if your entity-level tax beforecredits is more than the minimum franchisetax.Corporations and S corporations subject tothe minimum franchise tax onlyComplete only Part IV of this worksheet.

All others: Complete Part I and Part II of thisworksheet.

Part ILine 1 – Enter all trade or business income.See Part II for the definition of businessincome.Line 2 – If your business is located entirelywithin the MEA, enter 1.Specifically, this percentage is the apportion-ment percentage computed by the entity usingWorksheet II, Section A, and it represents thepercentage of the entity’s business attributableto the MEA.Line 4a – Compute the tax as if the MEAtaxable income represented all of your taxableincome.IndividualsUse the tax table or tax rate schedule for yourfiling status in your tax booklet.Exempt organizationsUse the applicable tax rate in your tax booklet.Corporations and S corporationsUse the applicable tax rate.Example: (Determination of the MEA Incomefor Shareholders, Partners, or Members ofPass-Through Entities)John Anderson is vice president of ABC, Inc.,an S corporation that has two locations: onewithin an MEA and one outside an MEA.Eighty percent (80%) of the S corporation’sbusiness is attributable to the MEA.Note: This percentage was determined byABC, Inc. using Worksheet II, Section A, whenABC’s S corporation return [Form 100S] wasprepared.John divides his time equally (50/50) betweenthe two offices of ABC, Inc. Jackie Anderson(John’s spouse) works for ABC, Inc. at itsoffice located in the MEA.John and Jackie Anderson have the followingitems of California income and expense for the2001 tax year:John’s salary from ABC, Inc. . . . . . . $100,000Jackie’s salary from ABC, Inc. . . . . . . . 75,000Interest on savings account . . . . . . . . . 1,000Dividends . . . . . . . . . . . . . . . . . . . . . . . 3,000Schedule K-1 (100S) from ABC, Inc.:

Ordinary income . . . . . . . . . . . . . . . 40,000John’s unreimbursed employee

expenses from Schedule A . . . . . . . (2,000)The Anderson’s MEA income (total amount tobe reported on line 3) is computed as follows:John’s MEA salary

($100,000 x 50%) . . . . . . . . . . . . . $50,000Jackie’s MEA salary

($75,000 x 100%) . . . . . . . . . . . . . . 75,000Pass-through ordinary income from

ABC, Inc. ($40,000 x 80%) . . . . . . . 32,000John’s unreimbursed employee business

expenses ($2,000 x 50%) . . . . . . . (1,000)Total MEA income

(Worksheet III, Part I, line 3) . . . $156,000


Note: The standard deduction and personal ordependency exemptions are not included inthe computation of MEA income since they arenot related to trade or business activities.John and Jackie must compute the tax (to beentered on Worksheet III, Part I, line 4a) onthe total MEA income of $156,000 (as if itrepresents all of their income). Using the taxrate schedule in their tax booklet for filingstatus married filing joint, the 2001 taxcomputed on $156,000 is $10,813.Line 4b – Corporations and S corporations:If the amount on line 4b is the minimumfranchise tax ($800), you cannot use yourMEA hiring credit this year. You shouldcomplete Part IV of the worksheet to computethe amount of credit carryover.

Line 6B, column (g) – Subtract the amounton line 6B, column (e) from the amount online 6B, column (d). Enter the result online 6B, column (g). This is the amount ofcredit that can be carried over to future years.Note: This carryover includes both theSchedule P (100, 100W, 540, 540NR, or 541)limitation and the limitation based on MEAbusiness income.

Part IIIUse Part III on Side 2 of form FTB 3808 only ifyou are an S corporation.Line 7, column (b) – Enter the amount ofcredit computed this year from Worksheet I.Also, enter this amount on Form 100S:• Schedule C, line 4; and• Schedule K, line 13.You may need to adjust your Schedule C(100S) to reflect the MEA tax limitation(Part I, line 5) on your credit after completingthis worksheet.Line 7, column (c) – Multiply the amount online 7, column (b) by 1/3. Enter this amount

in column (c). The amount in column (c) isthe maximum amount of the current yearcredit that may be used by the S corporationto offset its 1.5% entity-level tax (3.5% forfinancial S corporations).Line 7, column (d) – Enter the amount of thetotal prior year carryover of the credit (this isthe amount of credit that was previouslyfigured on Worksheet I in the prior year,minus the amount that was allowed to betaken on the prior year tax return).Line 7, column (e) – Add the amount of thecurrent year credit on line 7, column (c) andthe amount of the total prior year carryover online 7, column (d).Line 7, column (f) – Enter the amount ofcredit that was used by the S corporation inthe current year to offset its 1.5% entity-leveltax (3.5% for financial S corporations). Enterthis amount on form FTB 3808, Side 1, line 1.Line 7, column (g) – Subtract the amount incolumn (f) from the amount in column (e).This is the amount of credit that can be

carried over to future years and used by theS corporation.

Part IVUse Part IV on Side 2 of form FTB 3808 if youare a corporation or S corporation subject topaying only the minimum franchise tax.Line 8, column (b) – Enter the amount ofcurrent year credit that was computed onWorksheet I. S corporations may enter only1/3 of the amount from Worksheet I.Line 8, column (c) – Enter the amount of thetotal prior year carryover of the credit. This isthe amount of credit that was previouslyfigured on Worksheet I in the prior year,minus the amount that was allowed to betaken on the prior year tax return.Line 8, column (d) – Add the amount of thecurrent year credit on line 8, column (b) andthe amount of the total prior year carryover online 8, column (c). This is the amount ofcredit that can be carried over to future years.

Part IIUse Part II on Side 2 of form FTB 3808 if youare a corporation, individual, estate, or trust.Corporations and S corporations that aresubject to paying only the minimum franchisetax, go to Part IV.Line 6A, column (e) – Enter the amount fromline 5. This is the amount of limitation basedon the tax on MEA business income.Line 6A, column (f) – Enter the amount ofcredit that is used on Schedule P (100, 100W,540, 540NR, or 541), column (b). The amountcannot be greater than the amount on line 6A,column (e) or the amount computed online 6B, column (d). Enter this amount onform FTB 3808, Side 1, line 1.

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Example: Part II

The ABC Business has $8,000 of tax. The business computed a credit limitation based on the MEA income of $7,000 on Worksheet III, line 5.The business has the following credits:Hiring credit — $500 and a $300 carryover from a prior yearWorksheet III, Part II would be computed as follows:

Part II Limitation of Credits for Corporations, Individuals, Estates, and Trusts

(a) (b) (c) (d) (e) (f) (g)Credit Credit Total Total credit Limitation Used on Schedule P Carryovername amount prior year (add col. (b) based on MEA (can never be greater (col. (d) minus

carryover and col. (c)) business income than col. (d) or col. (e)) col. (e))

6 Hiring creditA 7,000 800

B 500 300 800 800 –0–

Line 6B, column (b) – Enter the amount of thecurrent year credit that was computed onWorksheet I.Line 6B, column (c) – Enter the amount of thetotal prior year carryover of the credit. This isthe amount of credit that was previouslyfigured on Worksheet I in the prior year,minus the amount that was allowed to betaken on the prior year tax return.Line 6B, column (d) – Add the amount of thecurrent year credit on line 6B, column (b) andthe amount of the total prior year carryover online 6B, column (c).Line 6B, column (e) – Compare the amountson line 6A, column (e) and line 6A,column (f). Enter the smaller amount.

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Standard Industrial Classification Manual, 1987 Edition (Partial Listing)The Standard Industrial Classification (SIC) Manual isorganized using a hierarchial structure, first by division,then by two-digit major groups within each division, thenby three-digit industry groups within each major group,and finally by four-digit industry codes within eachindustry group.Classification of business activities is based uponestablishments, which are defined in the SIC Manual asan economic unit, generally at a single physical location,where business is conducted, or where services orindustrial operations are performed. A taxpayer’s enter-prise may consist of more than one establishment. TheSIC Manual provides the following examples of establish-ments: A factory, mill, store, hotel, movie theater, mine,farm, ranch, bank, railroad depot, airline terminal, salesoffice, warehouse, or central administrative office. Wheredistinct and separate economic activities are performedat a single physical location (such as constructionactivities operated out of the same physical location as alumber yard), each activity should be treated as a

separate establishment where: (1) No one industrydescription in the SIC Manual includes such combinedactivities; (2) The employment in each economic activityis significant; and (3) Separate reports are prepared onthe number of employees, their wages and salaries, salesor receipts, property and equipment, and other types offinancial data, such as financial statements, job costing,and profit center accounting.For purposes of this publication, SIC Codes 0211through 0291, Code 0723, or Codes 2011 through 3999are listed since only taxpayers with establishments inthese industry codes qualify for the MEA hiring credit.The complete Standard Industrial Classification Manual,1987 Edition, is available for purchase from:

NATIONAL TECHNICAL INFORMATION SERVICE5285 PORT ROYAL ROADSPRINGFIELD VIRGINIA 22161Order No. PB 87-100012

The manual is also available on the Internet at:www.osha.gov/oshstats/sicser.html

The four-digit industry codes within Division D of the SIC Manual are: (nec means “not elsewhere classified”)3291 Abrasive products2891 Adhesives & sealants2879 Agricultural chemicals, nec3563 Air & gas compressors3728 Aircraft parts & equipment, nec3724 Aircraft engines & engine parts3721 Aircraft2812 Alkalies & chlorine3354 Aluminum extruded products3355 Aluminum rolling & drawing, nec3365 Aluminum foundries3353 Aluminum sheet, plate, & foil3363 Aluminum die-casting3483 Ammunition, except for small

arms, nec3826 Analytical instruments0273 Animal aquaculture0279 Animal specialties, nec2077 Animal & marine fats & oils2387 Apparel belts2389 Apparel & accessories, nec3446 Architectural metal work3292 Asbestos products2952 Asphalt felts & coatings2951 Asphalt paving mixtures & blocks3581 Automatic vending machines2396 Automotive & apparel trimmings3465 Automotive stampings2673 Bags: plastic, laminated, & coated2674 Bags: uncoated paper & multiwall3562 Ball & roller bearings0211 Beef cattle feedlots0212 Beef cattle, except feedlots2063 Beet sugar2836 Biological products except

diagnostic substances2782 Blankbooks & looseleaf binders3312 Blast furnace & steel mills3564 Blowers & fans3732 Boat building & repairing3452 Bolts, nuts, rivets, & washers2731 Book publishing2732 Book printing2789 Bookbinding & related work2086 Bottled & canned soft drinks2342 Bras, girdles, & allied garments2051 Bread, cake, & related products3251 Brick & structural clay tile2211 Broadwoven fabric mills, cotton2221 Broadwoven fabric mills, manmade

0251 Broiler, fryer, and roaster chickens2231 Broadwoven fabric mills, wool3991 Brooms & brushes3995 Burial caskets3578 Calculating & accounting

equipment2064 Candy & other confectionery

products2062 Cane sugar refining2033 Canned fruits & vegetables2091 Canned & cured fish & seafood2032 Canned specialties2394 Canvas & related products3955 Carbon paper & inked ribbons2895 Carbon black3624 Carbon & graphite products3592 Carburetors, pistons, rings, &

valves2273 Carpets & rugs2823 Cellulosic manmade fiber3241 Cement, hydraulic3253 Ceramic wall & floor tile2043 Cereal breakfast foods2022 Cheese, natural & processed2899 Chemical preparations, nec2067 Chewing gum2131 Chewing & smoking tobacco0252 Chicken eggs2066 Chocolate & cocoa products2111 Cigarettes2121 Cigars3255 Clay refractories2295 Coated fabrics, not rubberized3316 Cold finishing of steel shapes2754 Commercial printing, gravure2752 Commercial printing, lithographic2759 Commercial printing, nec3582 Commercial laundry equipment3646 Commercial lighting fixtures3669 Communication equipment3577 Computer peripheral equipment,

nec3575 Computer terminals3572 Computer storage devices3271 Concrete block & brick3272 Concrete products, nec3531 Construction machinery2679 Converted paper products, nec3535 Conveyors & conveying equipment2052 Cookies & crackers

3351 Copper rolling & drawing3366 Copper foundries2298 Cordage & twine2653 Corrugated & solid fiber boxes3961 Costume jewelry2074 Cottonseed oil2021 Creamery butter0723 Crop preparation services for

market3466 Crowns & closures3643 Current-carrying wiring devices2391 Curtains & draperies3087 Custom compound purchased

resins3281 Cut stone & stone products3421 Cutlery2865 Cyclic crudes & intermediates0241 Dairy farms2034 Dehydrated fruits, vegetables, &

soups3843 Dental equipment & supplies2675 Die-cut paper products2085 Distilled & blended liquors2047 Dog & cat food3942 Dolls & stuffed toys2591 Drapery hardware & blinds &

shades2023 Dry, condensed, & evaporated

dairy products2079 Edible fats & oils, nec3641 Electric lamps3634 Electric housewares & fans3699 Electrical equipment & supplies,

nec3629 Electrical industrial apparatus, nec3845 Electromedical equipment3313 Electrometallurgical products3679 Electronic components, nec3678 Electronic connectors3671 Electron tubes3675 Electronic capacitors3676 Electronic resistors3677 Electronic coils & transformers3571 Electronic computers3534 Elevators & moving stairways3694 Engine electrical equipment2677 Envelopes3822 Environmental controls2892 Explosives

2381 Fabric dress & work gloves3499 Fabricated metal products, nec3443 Fabricated plate work (boiler

shops)3498 Fabricated pipe & fittings3069 Fabricated rubber products, nec3441 Fabricated structural metal2399 Fabricated textile products, nec3523 Farm machinery & equipment3965 Fasteners, buttons, needles, & pins2875 Fertilizers, mixing only2655 Fiber cans, drums, & similar

products2262 Finishing plants, manmade2261 Finishing plants, cotton2269 Finishing plants, nec3211 Flat glass2087 Flavoring extracts & syrups, nec2041 Flour & other grain mill products3824 Fluid meters & counting devices3492 Fluid power valves & hose fittings2026 Fluid milk3594 Fluid power pumps & motors3593 Fluid power cylinders & actuators2657 Folding paperboard boxes2099 Food preparations, nec3556 Food products machinery3131 Footwear cut stock3149 Footwear, except rubber, nec2092 Fresh/frozen prepared fish/seafood2053 Frozen bakery products, except

bread2038 Frozen specialties, nec2037 Frozen fruits & vegetables0271 Fur-bearing animals and rabbits2371 Fur goods2599 Furniture & fixtures, nec3944 Games, toys, & children’s vehicles3053 Gaskets, packing, & sealing

devices0291 General farms, primarily animal3569 General industrial machinery, nec0219 General livestock, nec2369 Girls’ & children’s outerwear, nec2361 Girls’ & children’s dresses, blouses3221 Glass containers3321 Gray & ductile iron foundries2771 Greeting cards

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3764 Guided missile & space vehicleparts

3769 Guided missile & space vehicleparts, nec

3761 Guided missiles & space vehicles2861 Gum & wood chemicals3275 Gypsum products3423 Hand & edge tools, nec3996 Hardsurface floor coverings, nec2429 Hardware, nec2426 Hardwood dimensions & flooring

mills2435 Hardwood veneer & plywood2353 Hats, caps, & millinery3433 Heating equip, except electric0213 Hogs3536 Hoists, cranes, & monorails0272 Horses and other equines2252 Hosiery, nec2392 House furnishings, nec3142 House slippers3651 Household audio & video

equipment3635 Household vacuum cleaners3631 Household cooking appliances3633 Household laundry equipment3639 Household appliances, nec2519 Household furniture, nec3632 Household refrigerators & freezers2024 Ice cream & frozen desserts3491 Industrial valves2819 Industrial inorganic chem, nec3599 Industrial machinery, nec2869 Industrial organic chem, nec3537 Industrial trucks & tractors2813 Industrial gases3543 Industrial patterns3567 Industrial furnaces & ovens2816 Inorganic pigments3825 Instruments to measure electricity3519 Internal combustion engines, nec2835 In vitro & in vivo diagnostic

substances3462 Iron & steel forging3915 Jewelers’ materials & lapidary work3911 Jewelry, precious metal2253 Knit outerwear mills2254 Knit underwear mills2259 Knitting mills, nec3821 Laboratory apparatus & furniture2258 Lace & warp knit fabric mills3083 Laminated plastic plate & sheet3524 Lawn & garden equipment3952 Lead pencils & art goods3199 Leather goods, nec2386 Leather & sheep-lined clothing3111 Leather tanning & finishing3151 Leather gloves & mittens3648 Lighting equipment3274 Lime2411 Logging2992 Lubricating oils & greases3161 Luggage2098 Macaroni, spaghetti, & noodles3541 Machine tools, metal cutting types3545 Machine tool accessories3542 Machine tools, metal forming type3695 Magnetic & optical recording

media3322 Malleable iron foundries2083 Malt2082 Malt beverages2761 Manifold business forms2097 Manufactured ice3999 Manufacturing industries, nec3953 Marking devices2515 Mattresses & bedsprings3586 Measuring & dispensing pumps3829 Measuring & controlling devices,

nec2011 Meat packing plants

3061 Mechanical rubber goods2833 Medicinal & botanicals2325 Men’s & boys’ trousers & slacks3143 Men’s footwear, except athletic2323 Men’s & boys’ neckwear2329 Men’s & boys’ clothing, nec2321 Men’s & boys’ shirts2322 Men’s & boys’ underwear &

nightwear2326 Men’s & boys’ work clothing2311 Men’s & boys’ suits & coats2514 Metal household furniture3549 Metalworking machinery, nec3398 Metal heat treating3411 Metal cans3412 Metal barrels, drums, & pails3431 Metal sanitary ware3497 Metal foil & leaf3479 Metal coating & allied services3469 Metal stampings, nec3442 Metal door, sash, & trim2431 Millwork3296 Mineral wool3295 Minerals, ground or treated3532 Mining machinery2741 Misc publishing3449 Misc metal work3496 Misc fabricated wire products2451 Mobile homes3716 Motor homes3711 Motor vehicles & car bodies3621 Motor & generators3714 Motor vehicle parts & accessories3751 Motorcycles, bicycles, & parts3931 Musical instruments2441 Nailed wood boxes & shook2241 Narrow fabric mills2711 Newspapers2873 Nitrogenous fertilizers3297 Nonclay refractories3644 Noncurrent-carrying wiring devices3369 Nonferrous foundries, nec3364 Nonferrous die-casting, except

aluminum3357 Nonferrous wiredrawing &

insulating3356 Nonferrous rolling & drawing, nec3341 Nonferrous metals3463 Nonferrous forging3299 Nonmetallic mineral products, nec2297 Nonwoven fabrics3579 Office machines, nec2522 Office furniture, except wood3533 Oil & gas field machinery3851 Ophthalmic goods3827 Optical instruments & lenses3489 Ordnance & accessories, nec2824 Organic fibers, noncellulosic3565 Packaging machinery2851 Paints & allied products3554 Paper industries machinery2621 Paper mills2671 Paper coated & laminated,

packaging2672 Paper coated & laminated, nec2631 Paperboard mills2542 Partitions & fixtures, except wood3951 Pens & mechanical pencils2721 Periodicals3172 Personal leather goods, nec2911 Petroleum refining2999 Petroleum & coal products, nec2834 Pharmaceutical preparations2874 Phosphatic fertilizers3861 Photographic equipment &

supplies2035 Pickles, sauces, & salad dressing3085 Plastic bottles3086 Plastic foam products2821 Plastic materials & resins3084 Plastic pipe

3088 Plastic plumbing fixtures3089 Plastic products, nec2796 Platemaking service3471 Plating & polishing2395 Pleating & stitching3432 Plumbing fixture fittings & trim2842 Polishes & sanitation goods3264 Porcelain electrical supplies2096 Potato chips & similar snacks3269 Pottery products, nec0254 Poultry hatcheries0259 Poultry and eggs, nec2015 Poultry slaughtering & processing3568 Power transmission equipment,

nec3546 Power-driven handtools3448 Prefabricated metal buildings2452 Prefabricated wood buildings2045 Prepared flour mixes & doughs2048 Prepared feeds, nec3652 Prerecorded records & tapes3229 Pressed & blown glass, nec3399 Primary metal products, nec3339 Primary nonferrous metals, nec3334 Primary aluminum3331 Primary copper3692 Primary batteries, dry & wet3672 Printed circuit boards2893 Printing ink3555 Printing trades machinery3823 Process control instruments3231 Products of purchased glass2531 Public building & related furniture2611 Pulp mills3561 Pumps & pumping equipment3663 Radio, TV, & communications

equipment3743 Railroad equipment2061 Raw sugar cane3273 Ready-mixed concrete2493 Reconstituted wood products3585 Refrigeration & heating equipment3625 Relays & industrial controls3645 Residential lighting fixtures2044 Rice milling2095 Roasted coffee2384 Robes & dressing gowns3547 Rolling mill machinery3052 Rubber & plastic hose & belting3021 Rubber & plastic footwear2068 Salted & roasted nuts & seeds2656 Sanitary food containers2676 Sanitary paper products2013 Sausages & other prepared meats3425 Saw blades & handsaws2421 Sawmills & planing mills, general3596 Scales & balances, except

laboratory2397 Schiffli machine embroideries3451 Screw machine products3812 Search & navigation equipment3674 Semiconductors & related devices3263 Semivitreous table & kitchenware3589 Service industry machinery, nec2652 Setup paperboard boxes0214 Sheep and goats3444 Sheet metal work3731 Ship building & repairing3993 Signs & advertising specialties3914 Silverware and plate ware3484 Small arms3482 Small arms ammunition2841 Soap & other detergents2436 Softwood veneer & plywood2075 Soybean oil mills3769 Space vehicle equipment & parts3764 Space propulsion units & parts2429 Special product sawmills, nec3544 Special dies, tools, jigs, & fixtures3559 Special industry machinery, nec3566 Speed changers, drives, & gears

3949 Sporting & athletic goods, nec2678 Stationery products3493 Steel springs, except wire3315 Steel wire & related products3317 Steel pipe & tubes3325 Steel foundries, nec3324 Steel investment foundries3691 Storage batteries3259 Structural clay products, nec2439 Structural wood members, nec2843 Surface active agents3841 Surgical & medical instruments3842 Surgical appliances & supplies3613 Switchgear & switchboard

apparatus2822 Synthetic rubber3795 Tanks & tank components3661 Telephone & telegraph apparatus3552 Textile machinery2393 Textile bags2299 Textile goods, nec2284 Thread mills2282 Throwing & winding mills2296 Tire cord & fabrics3011 Tires & inner tubes2141 Tobacco stemming & redrying2844 Toilet preparations3612 Transformers, except electronic3799 Transportation equipment, nec3792 Travel trailers & campers3713 Truck & bus bodies3715 Truck trailers3511 Turbines & turbines generator sets0253 Turkey and turkey eggs2791 Typesetting3082 Unsupported plastic profile shapes3081 Unsupported plastic film & sheet2512 Upholstered household furniture3494 Valves & pipe fittings, nec2076 Vegetable oil mills, nec3647 Vehicular lighting equipment3261 Vitreous plumbing fixtures3262 Vitreous china table & kitchenware3873 Watches, clocks, & parts2385 Waterproof outerwear2257 Weft knit fabric mills3548 Welding apparatus2046 Wet corn milling2084 Wines, brandy, & brandy spirits3495 Wire springs2337 Women’s & misses’ suits & coats2335 Women’s, juniors’, & misses’

dresses2341 Women’s & children’s underwear2251 Women’s hosiery, except socks2339 Women’s & misses’ outerwear, nec2331 Women’s & misses’ blouses &

shirts3171 Women’s handbags and purses3144 Women’s footwear, except athletic2491 Wood preserving2499 Wood products, nec2434 Wood kitchen cabinets2541 Wood partitions & fixtures2521 Wood office furniture2517 Wood TV & radio cabinets2449 Wood containers, nec2511 Wood household furniture2448 Wood pallets & skids3553 Woodworking machinery3844 X-ray apparatus & tubes2281 Yarn spinning mills


FTB 3808Codes for Principal Business Activity

This list of principal business activities and their associatedcodes is designed to classify a business by the type ofactivity in which it is engaged to facilitate the administrationof the California Revenue and Taxation Code. For taxableyears beginning on or after January 1, 1998, these principalbusiness activity codes are based on the North AmericanIndustry Classification System published by the UnitedStates Office of Management and Budget, 1997 Edition.Caution: For purposes of qualifying for the MEA taxincentive, refer to the Standard Industrial ClassificationManual, 1987 Edition and the partial listing on pages 13and 14 of this booklet.

Agriculture, Forestry, Fishingand HuntingCodeCrop Production111100 Oilseed & Grain Farming111210 Vegetable & Melon Farming

(including potatoes & yams)111300 Fruit & Tree Nut Farming111400 Greenhouse, Nursery, &

Floriculture Production111900 Other Crop Farming (including

tobacco, cotton, sugarcane,hay, peanut, sugar beet, & allother crop farming)

Animal Production112111 Beef Cattle Ranching &

Farming112112 Cattle Feedlots112120 Dairy Cattle & Milk Production112210 Hog & Pig Farming112300 Poultry & Egg Production112400 Sheep & Goat Farming112510 Animal Aquaculture (including

shellfish & finfish farms &hatcheries)

112900 Other Animal ProductionForestry and Logging113110 Timber Tract Operations113210 Forest Nurseries & Gathering

of Forest Products113310 LoggingFishing, Hunting and Trapping114110 Fishing114210 Hunting & TrappingSupport Activities for Agriculture andForestry115110 Support Activities for Crop

Production (including cottonginning, soil preparation,planting, & cultivating)

115210 Support Activities for AnimalProduction

115310 Support Activities for Forestry

Mining211110 Oil & Gas Extraction212110 Coal Mining212200 Metal Ore Mining212310 Stone Mining & Quarrying212320 Sand, Gravel, Clay, & Ceramic

& RefractoryMinerals Mining & Quarrying212390 Other Nonmetallic Mineral

Mining & Quarrying213110 Support Activities for Mining

Utilities221100 Electric Power Generation,

Transmission & Distribution221210 Natural Gas Distribution221300 Water, Sewage, & Other

Systems

ConstructionCodeBuilding, Developing, and GeneralContracting233110 Land Subdivision & Land

Development233200 Residential Building

Construction233300 Nonresidential Building

ConstructionHeavy Construction234100 Highway, Street, Bridge, &

Tunnel Construction234900 Other Heavy ConstructionSpecial Trade Contractors235110 Plumbing, Heating, & Air-

Conditioning Contractors235210 Painting & Wall Covering

Contractors235310 Electrical Contractors235400 Masonry, Drywall, Insulation, &

Tile Contractors235500 Carpentry & Floor Contractors235610 Roofing, Siding, & Sheet Metal

Contractors235710 Concrete Contractors235810 Water Well Drilling Contractors235900 Other Special Trade

Contractors

ManufacturingFood Manufacturing311110 Animal Food Mfg311200 Grain & Oilseed Milling311300 Sugar & Confectionery Product

Mfg311400 Fruit & Vegetable Preserving &

Specialty Food Mfg311500 Dairy Product Mfg311610 Animal Slaughtering and

Processing311710 Seafood Product Preparation &

Packaging311800 Bakeries & Tortilla Mfg311900 Other Food Mfg (including

coffee, tea, flavorings &seasonings)

Beverage and Tobacco ProductManufacturing312110 Soft Drink & Ice Mfg312120 Breweries312130 Wineries312140 Distilleries312200 Tobacco ManufacturingTextile Mills and Textile Product Mills313000 Textile Mills314000 Textile Product MillsApparel Manufacturing315100 Apparel Knitting Mills315210 Cut & Sew Apparel

Contractors315220 Men’s & Boys’ Cut & Sew

Apparel Mfg

Code315230 Women’s & Girls’ Cut & Sew

Apparel Mfg315290 Other Cut & Sew Apparel Mfg315990 Apparel Accessories & Other

Apparel MfgLeather and Allied ProductManufacturing316110 Leather & Hide Tanning &

Finishing316210 Footwear Mfg (including rubber

& plastics)316990 Other Leather & Allied Product

MfgWood Product Manufacturing321110 Sawmills & Wood Preservation321210 Veneer, Plywood, & Engi-

neered Wood Product Mfg321900 Other Wood Product MfgPaper Manufacturing322100 Pulp, Paper, & Paperboard

Mills322200 Converted Paper Product MfgPrinting and Related SupportActivities323100 Printing & Related Support

ActivitiesPetroleum and Coal ProductsManufacturing324110 Petroleum Refineries

(including integrated)324120 Asphalt Paving, Roofing, &

Saturated Materials Mfg324190 Other Petroleum & Coal

Products MfgChemical Manufacturing325100 Basic Chemical Mfg325200 Resin, Synthetic Rubber, &

Artificial & Synthetic Fibers &Filaments Mfg

325300 Pesticide, Fertilizer, & OtherAgricultural Chemical Mfg

325410 Pharmaceutical & MedicineMfg

325500 Paint, Coating, & Adhesive Mfg325600 Soap, Cleaning Compound, &

Toilet Preparation Mfg325900 Other Chemical Product &

Preparation MfgPlastics and Rubber ProductsManufacturing326100 Plastics Product Mfg326200 Rubber Product MfgNonmetallic Mineral ProductManufacturing327100 Clay Product & Refractory Mfg327210 Glass & Glass Product Mfg327300 Cement & Concrete Product

Mfg327400 Lime & Gypsum Product Mfg327900 Other Nonmetallic Mineral

Product MfgPrimary Metal Manufacturing331110 Iron & Steel Mills & Ferroalloy

Mfg331200 Steel Product Mfg from

Purchased Steel331310 Alumina & Aluminum

Production & Processing331400 Nonferrous Metal (except

Aluminum) Production &Processing

331500 FoundriesFabricated Metal ProductManufacturing332110 Forging & Stamping332210 Cutlery & Handtool Mfg332300 Architectural & Structural

Metals Mfg332400 Boiler, Tank, & Shipping

Container Mfg332510 Hardware Mfg332610 Spring & Wire Product Mfg332700 Machine Shops; Turned

Product; & Screw, Nut, & BoltMfg

332810 Coating, Engraving, HeatTreating, & Allied Activities

Code332900 Other Fabricated Metal

Product MfgMachinery Manufacturing333100 Agriculture, Construction, &

Mining Machinery Mfg333200 Industrial Machinery Mfg333310 Commercial & Service

Industry Machinery Mfg333410 Ventilation, Heating, Air-

Conditioning, & CommercialRefrigeration Equipment Mfg

333510 Metalworking Machinery Mfg333610 Engine, Turbine & Power

Transmission Equipment Mfg333900 Other General Purpose

Machinery MfgComputer and Electronic ProductManufacturing334110 Computer & Peripheral

Equipment Mfg334200 Communications Equipment

Mfg334310 Audio & Video Equipment Mfg334410 Semiconductor & Other

Electronic Component Mfg334500 Navigational, Measuring,

Electromedical, & ControlInstruments Mfg

334610 Manufacturing & ReproducingMagnetic & Optical Media

Electrical Equipment, Appliance, andComponent Manufacturing335100 Electric Lighting Equipment

Mfg335200 Household Appliance Mfg335310 Electrical Equipment Mfg335900 Other Electrical Equipment &

Component MfgTransportation EquipmentManufacturing336100 Motor Vehicle Mfg336210 Motor Vehicle Body & Trailer

Mfg336300 Motor Vehicle Parts Mfg336410 Aerospace Product & Parts

Mfg336510 Railroad Rolling Stock Mfg336610 Ship & Boat Building336990 Other Transportation

Equipment MfgFurniture and Related ProductManufacturing337000 Furniture & Related Product

ManufacturingMiscellaneous Manufacturing339110 Medical Equipment & Supplies

Mfg339900 Other Miscellaneous

Manufacturing

Wholesale TradeWholesale Trade, Durable Goods421100 Motor Vehicle & Motor Vehicle

Parts & Supplies Wholesalers421200 Furniture & Home Furnishing

Wholesalers421300 Lumber & Other Construction

Materials Wholesalers421400 Professional & Commercial

Equipment & SuppliesWholesalers

421500 Metal & Mineral (exceptPetroleum) Wholesalers

421600 Electrical Goods Wholesalers421700 Hardware, & Plumbing &

Heating Equipment & SuppliesWholesalers

421800 Machinery, Equipment, &Supplies Wholesalers

421910 Sporting & Recreational Goods& Supplies Wholesalers

421920 Toy & Hobby Goods &Supplies Wholesalers

421930 Recyclable MaterialWholesalers

421940 Jewelry, Watch, PreciousStone, & Precious MetalWholesalers

421990 Other Miscellaneous DurableGoods Wholesalers


CodeWholesale Trade, Nondurable Goods422100 Paper & Paper Product

Wholesalers422210 Drugs & Druggists’ Sundries

Wholesalers422300 Apparel, Piece Goods, &

Notions Wholesalers422400 Grocery & Related Product

Wholesalers422500 Farm Product Raw Material

Wholesalers422600 Chemical & Allied Products

Wholesalers422700 Petroleum & Petroleum

Products Wholesalers422800 Beer, Wine, & Distilled

Alcoholic Beverage Wholesal-ers

422910 Farm Supplies Wholesalers422920 Book, Periodical, & Newspaper

Wholesalers422930 Flower, Nursery Stock, &

Florists’ Supplies Wholesalers422940 Tobacco & Tobacco Product

Wholesalers422950 Paint, Varnish, & Supplies

Wholesalers422990 Other Miscellaneous

Nondurable GoodsWholesalers

Retail TradeMotor Vehicle and Parts Dealers441110 New Car Dealers441120 Used Car Dealers441210 Recreational Vehicle Dealers441221 Motorcycle Dealers441222 Boat Dealers441229 All Other Motor Vehicle

Dealers441300 Automotive Parts, Accessories,

& Tire StoresFurniture and Home FurnishingsStores442110 Furniture Stores442210 Floor Covering Stores442291 Window Treatment Stores442299 All Other Home Furnishings

StoresElectronics and Appliance Stores443111 Household Appliance Stores443112 Radio, Television, & Other

Electronics Stores443120 Computer & Software Stores443130 Camera & Photographic

Supplies StoresBuilding Material and GardenEquipment and Supplies Dealers444110 Home Centers444120 Paint & Wallpaper Stores444130 Hardware Stores444190 Other Building Material

Dealers444200 Lawn & Garden Equipment &

Supplies StoresFood and Beverage Stores445110 Supermarkets and Other

Grocery (except Convenience)Stores

445120 Convenience Stores445210 Meat Markets445220 Fish & Seafood Markets445230 Fruit & Vegetable Markets445291 Baked Goods Stores445292 Confectionery & Nut Stores445299 All Other Specialty Food

Stores445310 Beer, Wine, & Liquor StoresHealth and Personal Care Stores446110 Pharmacies & Drug Stores446120 Cosmetics, Beauty Supplies, &

Perfume Stores446130 Optical Goods Stores446190 Other Health & Personal Care

StoresGasoline Stations447100 Gasoline Stations (including

convenience stores with gas)

CodeClothing and Clothing AccessoriesStores448110 Men’s Clothing Stores448120 Women’s Clothing Stores448130 Children’s & Infants’ Clothing

Stores448140 Family Clothing Stores448150 Clothing Accessories Stores448190 Other Clothing Stores448210 Shoe Stores448310 Jewelry Stores448320 Luggage & Leather Goods

StoresSporting Goods, Hobby, Book, andMusic Stores451110 Sporting Goods Stores451120 Hobby, Toy, & Game Stores451130 Sewing, Needlework, & Piece

Goods Stores451140 Musical Instrument & Supplies

Stores451211 Book Stores451212 News Dealers & Newsstands451220 Prerecorded Tape, Compact

Disc, & Record StoresGeneral Merchandise Stores452110 Department stores452900 Other General Merchandise

StoresMiscellaneous Store Retailers453110 Florists453210 Office Supplies & Stationery

Stores453220 Gift, Novelty, & Souvenir

Stores453310 Used Merchandise Stores453910 Pet & Pet Supplies Stores453920 Art Dealers453930 Manufactured (Mobile) Home

Dealers453990 All Other Miscellaneous Store

Retailers (including tobacco,candle, & trophy shops)

Nonstore Retailers454110 Electronic Shopping & Mail-

Order Houses454210 Vending Machine Operators454311 Heating Oil Dealers454312 Liquefied Petroleum Gas

(Bottled Gas) Dealers454319 Other Fuel Dealers454390 Other Direct Selling Establish-

ments (including door-to-doorretailing, frozen food planproviders, party planmerchandisers, & coffee-breakservice providers)

Transportation andWarehousingAir, Rail, and Water Transportation481000 Air Transportation482110 Rail Transportation483000 Water TransportationTruck Transportation484110 General Freight Trucking, Local484120 General Freight Trucking,

Long-distance484200 Specialized Freight TruckingTransit and Ground PassengerTransportation485110 Urban Transit Systems485210 Interurban & Rural Bus

Transportation485310 Taxi Service485320 Limousine Service485410 School & Employee Bus

Transportation485510 Charter Bus Industry485990 Other Transit & Ground

Passenger TransportationPipeline Transportation486000 Pipeline TransportationScenic & Sightseeing Transportation487000 Scenic & Sightseeing

Transportation

CodeSupport Activities for Transportation488100 Support Activities for Air

Transportation488210 Support Activities for Rail

Transportation488300 Support Activities for Water

Transportation488410 Motor Vehicle Towing488490 Other Support Activities for

Road Transportation488510 Freight Transportation

Arrangement488990 Other Support Activities for

TransportationCouriers and Messengers492110 Couriers492210 Local Messengers & Local

DeliveryWarehousing and Storage493100 Warehousing & Storage

(except lessors ofminiwarehouses & self-storage units)

InformationPublishing Industries511110 Newspaper Publishers511120 Periodical Publishers511130 Book Publishers511140 Database & Directory

Publishers511190 Other Publishers511210 Software PublishersMotion Picture and Sound RecordingIndustries512100 Motion Picture & Video

Industries (except video rental)512200 Sound Recording IndustriesBroadcasting andTelecommunications513100 Radio & Television Broadcast-

ing513200 Cable Networks & Program

Distribution513300 Telecommunications (including

paging, cellular, satellite, &other telecommunications)

Information Services and DataProcessing Services514100 Information Services (including

news syndicates, libraries, &on-line information services)

514210 Data Processing Services

Finance and InsuranceDepository Credit Intermediation522110 Commercial Banking522120 Savings Institutions522130 Credit Unions522190 Other Depository Credit

IntermediationNondepository Credit Intermediation522210 Credit Card Issuing522220 Sales Financing522291 Consumer Lending522292 Real Estate Credit (including

mortgage bankers &originators)

522293 International Trade Financing522294 Secondary Market Financing522298 All Other Nondepository Credit

IntermediationActivities Related to CreditIntermediation522300 Activities Related to Credit

Intermediation (including loanbrokers)

Securities, Commodity Contracts, andOther Financial Investments andRelated Activities523110 Investment Banking &

Securities Dealing523120 Securities Brokerage523130 Commodity Contracts Dealing523140 Commodity Contracts

Brokerage

Code523210 Securities & Commodity

Exchanges523900 Other Financial Investment

Activities (including portfoliomanagement & investmentadvice)

Insurance Carriers and RelatedActivities524140 Direct Life, Health, & Medical

Insurance & ReinsuranceCarriers

524150 Direct Insurance & Reinsur-ance (except Life, Health &Medical) Carriers

524210 Insurance Agencies &Brokerages

524290 Other Insurance RelatedActivities

Funds, Trusts, and Other FinancialVehicles525100 Insurance & Employee Benefit

Funds525910 Open-End Investment Funds

(Form 1120-RIC)525920 Trusts, Estates, & Agency

Accounts525930 Real Estate Investment Trusts

(Form 1120-REIT)525990 Other Financial Vehicles

Real Estate and Rental andLeasingReal Estate531110 Lessors of Residential

Buildings & Dwellings531120 Lessors of Nonresidential

Buildings (exceptMiniwarehouses)

531130 Lessors of Miniwarehouses &Self-Storage Units

531190 Lessors of Other Real EstateProperty

531210 Offices of Real Estate Agents& Brokers

531310 Real Estate PropertyManagers

531320 Offices of Real EstateAppraisers

531390 Other Activities Related toReal Estate

Rental and Leasing Services532100 Automotive Equipment Rental

& Leasing532210 Consumer Electronics &

Appliances Rental532220 Formal Wear & Costume

Rental532230 Video Tape & Disc Rental532290 Other Consumer Goods Rental532310 General Rental Centers532400 Commercial & Industrial

Machinery & EquipmentRental & Leasing

Lessors of Nonfinancial IntangibleAssets (except copyrighted works)533110 Lessors of Nonfinancial

Intangible Assets (exceptcopyrighted works)

Professional, Scientific, andTechnical ServicesLegal Services541110 Offices of Lawyers541190 Other Legal ServicesAccounting, Tax Preparation,Bookkeeping, and Payroll Services541211 Offices of Certified Public

Accountants541213 Tax Preparation Services541214 Payroll Services541219 Other Accounting ServicesArchitectural, Engineering, andRelated Services541310 Architectural Services541320 Landscape Architecture

Services541330 Engineering Services541340 Drafting Services541350 Building Inspection Services


CodeOther Ambulatory Health CareServices621900 Other Ambulatory Health Care

Services (including ambulanceservices & blood & organbanks)

Hospitals622000 HospitalsNursing and Residential CareFacilities623000 Nursing & Residential Care

FacilitiesSocial Assistance624100 Individual & Family Services624200 Community Food & Housing, &

Emergency & Other ReliefServices

624310 Vocational RehabilitationServices

624410 Child Day Care Services

Arts, Entertainment, andRecreationPerforming Arts, Spectator Sports,and Related Industries711100 Performing Arts Companies711210 Spectator Sports (including

sports clubs & racetracks)711300 Promoters of Performing Arts,

Sports, & Similar Events711410 Agents & Managers for Artists,

Athletes, Entertainers, & OtherPublic Figures

711510 Independent Artists, Writers, &Performers

Museums, Historical Sites, andSimilar Institutions712100 Museums, Historical Sites, &

Similar InstitutionsAmusement, Gambling, andRecreation Industries713100 Amusement Parks & Arcades713200 Gambling Industries713900 Other Amusement &

Recreation Industries(including golf courses, skiingfacilities, marinas, fitnesscenters, & bowling centers)

Accommodation and FoodServicesAccommodation721110 Hotels (except casino hotels) &

Motels721120 Casino Hotels721191 Bed & Breakfast Inns721199 All Other Traveler Accommoda-

tion721210 RV (Recreational Vehicle)

Parks & Recreational Camps721310 Rooming & Boarding Houses

CodeFood Services and Drinking Places722110 Full-Service Restaurants722210 Limited-Service Eating Places722300 Special Food Services

(including food servicecontractors & caterers)

722410 Drinking Places (AlcoholicBeverages)

Other ServicesRepair and Maintenance811110 Automotive Mechanical &

Electrical Repair & Mainte-nance

811120 Automotive Body, Paint,Interior, & Glass Repair

811190 Other Automotive Repair &Maintenance (including oilchange & lubrication shops &car washes)

811210 Electronic & PrecisionEquipment Repair &Maintenance

811310 Commercial & IndustrialMachinery & Equipment(except Automotive &Electronic) Repair &Maintenance

811410 Home & Garden Equipment &Appliance Repair & Mainte-nance

811420 Reupholstery & FurnitureRepair

811430 Footwear & Leather GoodsRepair

811490 Other Personal & HouseholdGoods Repair & Maintenance

Personal and Laundry Services812111 Barber Shops812112 Beauty Salons812113 Nail Salons812190 Other Personal Care Services

(including diet & weightreducing centers)

812210 Funeral Homes & FuneralServices

812220 Cemeteries & Crematories812310 Coin-Operated Laundries &

Drycleaners812320 Drycleaning & Laundry

Services (except Coin-Operated)

812330 Linen & Uniform Supply812910 Pet Care (except Veterinary)

Services812920 Photofinishing812930 Parking Lots & Garages812990 All Other Personal ServicesReligious, Grantmaking, Civic,Professional, and SimilarOrganizations813000 Religious, Grantmaking, Civic,

Professional, & SimiliarOrganizations

Code541360 Geophysical Surveying &

Mapping Services541370 Surveying & Mapping (except

Geophysical) Services541380 Testing LaboratoriesSpecialized Design Services541400 Specialized Design Services

(including interior, industrial,graphic, & fashion design)

Computer Systems Design andRelated Services541511 Custom Computer Program-

ming Services541512 Computer Systems Design

Services541513 Computer Facilities Manage-

ment Services541519 Other Computer Related

ServicesOther Professional, Scientific, andTechnical Services541600 Management, Scientific, &

Technical Consulting Services541700 Scientific Research &

Development Services541800 Advertising & Related

Services541910 Marketing Research & Public

Opinion Polling541920 Photographic Services541930 Translation & Interpretation

Services541940 Veterinary Services541990 All Other Professional,

Scientific, & Technical Services

Management of Companies(Holding Companies)551111 Offices of Bank Holding

Companies551112 Offices of Other Holding

Companies

Administrative and Supportand Waste Management andRemediation ServicesAdministrative and Support Services561110 Office Administrative Services561210 Facilities Support Services561300 Employment Services561410 Document Preparation

Services561420 Telephone Call Centers561430 Business Service Centers

(including private mail centers& copy shops)

561440 Collection Agencies561450 Credit Bureaus561490 Other Business Support

Services (including reposses-sion services, court reporting,& stenotype services)

Code561500 Travel Arrangement &

Reservation Services561600 Investigation & Security

Services561710 Exterminating & Pest Control

Services561720 Janitorial Services561730 Landscaping Services561740 Carpet & Upholstery Cleaning

Services561790 Other Services to Buildings &

Dwellings561900 Other Support Services

(including packaging & labelingservices, & convention & tradeshow organizers)

Waste Management and RemediationServices562000 Waste Management &

Remediation Services

Educational Services611000 Educational Services

(including schools, colleges, &universities)

Health Care and SocialAssistanceOffices of Physicians and Dentists621111 Offices of Physicians (except

mental health specialists)621112 Offices of Physicians, Mental

Health Specialists621210 Offices of DentistsOffices of Other Health Practitioners621310 Offices of Chiropractors621320 Offices of Optometrists621330 Offices of Mental Health

Practitioners (exceptPhysicians)

621340 Offices of Physical, Occupa-tional & Speech Therapists, &Audiologists

621391 Offices of Podiatrists621399 Offices of All Other Miscella-

neous Health PractitionersOutpatient Care Centers621410 Family Planning Centers621420 Outpatient Mental Health &

Substance Abuse Centers621491 HMO Medical Centers621492 Kidney Dialysis Centers621493 Freestanding Ambulatory

Surgical & Emergency Centers621498 All Other Outpatient Care

CentersMedical and Diagnostic Laboratories621510 Medical & Diagnostic

LaboratoriesHome Health Care Services621610 Home Health Care Services


THIS PAGE INTENTIONALLY LEFT BLANK

Go to our Website:

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FTB 3808 2001 Side 1

Manufacturing Enhancement AreaCredit Summary

YEAR

2001Social security or California corporation number

Name(s) as shown on return

CALIFORNIA FORM

3808

FEIN

-

Attach to your California tax return.

380801109

A. Check the appropriate box for your entity type:� Individual � Estate � Trust � C corporation � S corporation � Partnership

� Exempt organization � Limited liability company � Limited liability partnership

B. Enter the name of the Manufacturing Enhancement Area (MEA) business: _________________________________________________________

C. Enter the address (actual location) where the MEA business is conducted:

____________________________________________________________________________________________________________________

D. Enter the name of the MEA in which the business and/or investment activity is located. See General Information C, Manufacturing EnhancementArea Designation.

____________________________________________________________________________________________________________________

E. Principal Business Activity Code number of the MEA business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________Enter the six-digit number from the Principal Business Activity Code Chart.

F. Total number of employees in the MEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

G. Number of employees included in the computation of the hiring credit, if claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

H. Number of new employees included in the computation of the hiring credit, if claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

I. Gross annual receipts of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

J. Total asset value of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

Part I Credit Used

1 Hiring credit from Worksheet III, line 6A, column (f) or line 7, column (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ❚ 1_________________

Note: To compute the amount of credit to carry over, complete Worksheet III on Side 2.

Part II Portion of Business Attributable to the Manufacturing Enhancement Area

2 Enter the average apportionment percentage of your business that is in the MEA from Worksheet II, Section A,line 4. If your operation is entirely within one MEA, the average apportionment percentage is 100% (1.00) . . . . . . . . . . . . . 2 ________________

Part III Recapture of Credit

3 Recapture of hiring credit from Worksheet I, Section B, line 2, column (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3_________________

Secretary of State file number

Qualified Taxpayer’s SIC Code Activity. Caution: See instructions. ___ ___ ___ ___

Side 2 FTB 3808 2001

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Part II Limitation of Credits for Corporations, Individuals, Estates, and Trusts. See instructions.



6 Hiringcredit

A

B

Part III Limitation of Credits for S Corporations Only. See instructions.

(a) (b) (c) (d) (e) (f) (g)Credit Credit S corporation Total Total credit Credit used Carryovername amount credit (multiply prior year (add col. (c) this year by (col. (e) minus

col. (b) by 1/3) carryover and col. (d)) S corporation col. (f))

7 Hiringcredit

Part IV Limitation of Credits for Corporations and S Corporations Subject to Paying Only the Minimum Franchise Tax. See instructions.

(a) (b) (c) (d)Credit Credit Total Total creditname amount prior year carryover. (add

carryover col. (b) and col. (c))

8 Hiringcredit

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Worksheet III Computation of Credit Limitations — Manufacturing Enhancement AreaPart I Computation of Credit Limitations. See instructions.

1 Trade or business income. Individuals: Enter the amount from Worksheet II, Section B, line 14, column (c) onthis line and on line 3 (skip line 2). See instructions. Note: Corporations which file a combined report, enterthe taxpayer’s business income apportioned to California (see Part II instructions) . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 Corporations: Enter the average apportionment percentage from Worksheet II, Section A, line 4. See instructions 23 Multiply line 1 by line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 a Compute the amount of tax due using the amount on line 3.

See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4ab Enter the amount of tax from Form 540, line 24; Form 540NR, line 27;

Form 541, line 21; Form 100, line 24; Form 100W, line 24; Form 100S, line 22; orForm 109, line 7 or line 15. Corporations and S corporations, see instructions . 4b

5 Enter the smaller of line 4a or line 4b. This is the limitation based on the MEA income. Go to Part II, Part III,or Part IV. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

380801209

FTB 3808 2001 Side 1

Manufacturing Enhancement AreaCredit Summary

YEAR

2001Social security or California corporation number

Name(s) as shown on return

CALIFORNIA FORM

3808

FEIN

-

Attach to your California tax return.

380801109

A. Check the appropriate box for your entity type:� Individual � Estate � Trust � C corporation � S corporation � Partnership

� Exempt organization � Limited liability company � Limited liability partnership

B. Enter the name of the Manufacturing Enhancement Area (MEA) business: _________________________________________________________

C. Enter the address (actual location) where the MEA business is conducted:

____________________________________________________________________________________________________________________

D. Enter the name of the MEA in which the business and/or investment activity is located. See General Information C, Manufacturing EnhancementArea Designation.

____________________________________________________________________________________________________________________

E. Principal Business Activity Code number of the MEA business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________Enter the six-digit number from the Principal Business Activity Code Chart.

F. Total number of employees in the MEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

G. Number of employees included in the computation of the hiring credit, if claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

H. Number of new employees included in the computation of the hiring credit, if claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

I. Gross annual receipts of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

J. Total asset value of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

Part I Credit Used

1 Hiring credit from Worksheet III, line 6A, column (f) or line 7, column (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ❚ 1_________________

Note: To compute the amount of credit to carry over, complete Worksheet III on Side 2.

Part II Portion of Business Attributable to the Manufacturing Enhancement Area

2 Enter the average apportionment percentage of your business that is in the MEA from Worksheet II, Section A,line 4. If your operation is entirely within one MEA, the average apportionment percentage is 100% (1.00) . . . . . . . . . . . . . 2 ________________

Part III Recapture of Credit

3 Recapture of hiring credit from Worksheet I, Section B, line 2, column (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3_________________

Secretary of State file number

Qualified Taxpayer’s SIC Code Activity. Caution: See instructions. ___ ___ ___ ___

Side 2 FTB 3808 2001

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Part II Limitation of Credits for Corporations, Individuals, Estates, and Trusts. See instructions.



6 Hiringcredit

A

B

Part III Limitation of Credits for S Corporations Only. See instructions.

(a) (b) (c) (d) (e) (f) (g)Credit Credit S corporation Total Total credit Credit used Carryovername amount credit (multiply prior year (add col. (c) this year by (col. (e) minus

col. (b) by 1/3) carryover and col. (d)) S corporation col. (f))

7 Hiringcredit

Part IV Limitation of Credits for Corporations and S Corporations Subject to Paying Only the Minimum Franchise Tax. See instructions.

(a) (b) (c) (d)Credit Credit Total Total creditname amount prior year carryover. (add

carryover col. (b) and col. (c))

8 Hiringcredit

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12345678901234567123456789012345671234567890123456712345678901234567

Worksheet III Computation of Credit Limitations — Manufacturing Enhancement AreaPart I Computation of Credit Limitations. See instructions.

1 Trade or business income. Individuals: Enter the amount from Worksheet II, Section B, line 14, column (c) onthis line and on line 3 (skip line 2). See instructions. Note: Corporations which file a combined report, enterthe taxpayer’s business income apportioned to California (see Part II instructions) . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 Corporations: Enter the average apportionment percentage from Worksheet II, Section A, line 4. See instructions 23 Multiply line 1 by line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 a Compute the amount of tax due using the amount on line 3.

See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4ab Enter the amount of tax from Form 540, line 24; Form 540NR, line 27;

Form 541, line 21; Form 100, line 24; Form 100W, line 24; Form 100S, line 22; orForm 109, line 7 or line 15. Corporations and S corporations, see instructions . 4b

5 Enter the smaller of line 4a or line 4b. This is the limitation based on the MEA income. Go to Part II, Part III,or Part IV. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

380801209


How to Get California Tax Information (Keep This Page For Future Use)Your Rights as a TaxpayerOur goal at the Franchise Tax Board (FTB) is tomake certain that your rights are protected sothat you will have the highest confidence inthe integrity, efficiency, and fairness of ourstate tax system. FTB Publication 4058,California Taxpayers’ Bill of Rights, includesinformation on your rights as a Californiataxpayer, the Taxpayers’ Rights AdvocateProgram, and how you can request writtenadvice from the FTB on whether a particulartransaction is taxable. See “Where to Get TaxForms and Publications” below.

Where to Get Tax Forms andPublicationsBy Internet – You can download, view, andprint California tax forms and publications. Goto our Website at: www.ftb.ca.govOther state agencies information can beaccessed through the State Agency Indexlocated on the California State Website at:www.ca.gov.By phone – To order California tax forms,publications, and the current year federalbooklets, call our automated phone service. Toorder a form:• Refer to the list in your tax booklet and

find the code number for the form youwant to order.

• Call (800) 338-0505 and follow theinstructions.

Please allow two weeks to receive your order.If you live outside California, please allowthree weeks to receive your order.In person – Many libraries, post offices, andbanks provide free California personal incometax booklets during the filing season. Mostlibraries and some quick print businesses haveforms and schedules for you to photocopy(a nominal fee may apply).Note: Employees at libraries, post offices, banks,and quick print businesses cannot provide taxinformation or assistance.By mail – Write to:

TAX FORMS REQUEST UNITFRANCHISE TAX BOARDPO BOX 307RANCHO CORDOVA CA 95741-0307

LettersIf you write to us, be sure your letter includesyour FEIN, Secretary of State file number,California corporation number, or socialsecurity number, your daytime and eveningtelephone numbers, and a copy of the notice(if applicable). Send your letter to:

PROFESSIONAL RESOURCES ANDEDUCATION SECTION MS F-228FRANCHISE TAX BOARDPO BOX 1468SACRAMENTO CA 95812-1468

We will respond to your letter within sixweeks. In some cases, we may need to callyou for additional information. Note: Do notattach correspondence to your tax returnunless the correspondence relates to an itemon your return.

General Toll-Free Phone ServiceOur general toll-free phone service isavailable:• Monday – Friday, 7 a.m. until 8 p.m.; and• Saturdays, 8 a.m. until 5 p.m.Note: We may modify these hours withoutnotice to meet operational needs.From within the

United States . . . . . . . . . . . (800) 852-5711From outside the

United States . . . . . . . . . . . (916) 845-6500(not toll-free)

Assistance for persons with disabilities:The FTB complies with the Americans withDisabilities Act. Persons with a hearing orspeech impairments, call:From voice phone . . . . . . . . . (800) 735-2922

(California Relay Service)From TTY/TDD . . . . . . . . . . . (800) 822-6268

(Direct line to FTB customer service)For all other assistance or special accommo-dations, call (800) 852-5711.For federal tax questions:Call the IRS at . . . . . . . . . . . . (800) 829-1040Asistencia bilingüe en españolPara obtener servicios en español y asistenciapara completar su declaración de impuestos/formularios, llame al número de teléfono(anotado arriba) que le corresponde.

Geographic BoundariesFurther information about geographicboundaries of the MEA is available from:

ENTERPRISE ZONE PROGRAMSCALIFORNIA TECHNOLOGY, TRADE ANDCOMMERCE AGENCY801 K STREET SUITE 1700SACRAMENTO CA 95814Telephone: (916) 324-8211FAX: (916) 322-7214Website: www.commerce.ca.gov

Economic Development Area(Information Only)Further information about the MEA taxincentives is available from:

FRANCHISE TAX BOARDTelephone: (916) 845-3464FAX: (916) 845-6791Website: www.ftb.ca.gov


� Automated Toll-Free Phone Service (Keep This Page For Future Use)Our automated toll-free phone service is available24 hours a day, 7 days a week, in English andSpanish to callers with touch-tone telephones. Toorder business entity form, the automated service isavailable from 6 a.m. to 8 p.m. Monday throughFriday, except state holidays, and Saturdays from6 a.m. to 4 p.m. You can:• Order California tax forms and publications and

individual current year federal booklets;• Get current year tax refund information;• Get balance due and payment information; and• Hear recorded answers to many of your

questions about California taxes.Have paper and pencil ready to take notes.Call from within the

United States . . . . . . . . . . . . . . . . (800) 338-0505Call from outside the

United States . . . . . . . . . . . . . . . . (916) 845-6600(not toll-free)

Current Year Personal Income Tax RefundInformationYou should wait at least eight weeks after you fileyour tax return before you call to find out aboutyour refund. You will need your social securitynumber, the numbers in your street address, boxnumber, or route number, and your ZIP Code touse this service. Refund status information isavailable 24 hours a day, 7 days a week. Call ourautomated phone service, select personal incometax information, then refund information, andfollow the recorded instructions.Personal Income Tax Balance Due and PaymentInformationYou should wait at least 45 days from the date youmailed your payment before you call to verifyreceipt of your payment. You will need your socialsecurity number, the numbers in your streetaddress, box number, or route number, and yourZIP code to use this service. Balance due andpayment information is available 24 hours a day,7 days a week.Answers To Tax QuestionsRecorded answers to your tax questions areavailable 24 hours a day, 7 days a week. To receiveanswers to any of the following questions, call ourautomated phone service, select either personalincome tax or business entity tax information, thengeneral information, and enter the three-digit codewhen instructed to do so.

Personal Income Tax InformationCode Filing Assistance100 – Do I need to file a return?111 – Which form should I use?112 – How do I file electronically and get a fast

refund?200 – Where can I pick up a form today?201 – How can I get an extension to file?203 – What is and how do I qualify for the

nonrefundable renter’s credit?204 – I never received a Form W-2. What do I do?205 – I have no withholding taken out. What do I

do?206 – Do I have to attach a copy of my federal

return?207 – Should I file my return even though I do

not have the money to pay?208 – How do I figure my estimated tax

payments?209 – I lived in California for part of the year. Do I

have to file a return?210 – I do not live in California. Why do I have to

file a return?211 – How do I figure my IRA deduction?212 – How do I claim my disaster related loss?215 – Who qualifies me to use the head of

household filing status?216 – I’m due a refund. Do I still need to file a

return?217 – I am currently/was in the military. Do I have

to file a California return?

218 – I’m in the military. Do I have to use the samefiling status as federal?

219 – I sold my personal residence. How do Ireport the sale to California?

220 – There is no difference in my state andfederal depreciation, business income, andcapital gain income. What do I do?

221 – What is community property?222 – How much can I deduct for vehicle license

fees?227 – How do I get a refund of excess SDI?239 – Where can I get help with preparing and

filing my income tax return?240 – Does a tax return have to be filed for a

deceased taxpayer?Refunds

300 – My spouse has passed away. You sent arefund with both our names on it. What doI do?

301 – I got a letter saying you sent my refund toanother agency. Why?Penalties

400 – I have an extension of time to file myreturn. Why did I get a penalty?

401 – I filed my return on time. Why did I get apenalty?

402 – How can I protest a penalty?403 – What is the estimate penalty rate?

Notices and Bills500 – I received a bill and I cannot pay it in full.

What do I do?501 – Why didn’t you give me credit for my

withholding?502 – You didn’t give me credit for my dependent.

What do I do?504 – I’m head of my house. Why was I denied

head of household filing status?506 – How do I get information about my

Form 1099-G?508 – I received a notice that didn’t show all

payments made. How do I get credit forthem?Tax For Children

601 – Can my child take a personal exemptioncredit when I claim her or him as adependent on my return?

602 – Federal law limits the standard deduction.Is the state law the same?Miscellaneous

610 – Can I pay my taxes with a credit card?611 – What address do I send my payment to?612 – I mailed my return and haven’t heard

anything. Should I send a copy of myreturn?

613 – I forgot to attach my Form(s) W-2 when Imailed my return. What do I do?

614 – I forgot to attach a copy of my federalreturn. What do I do?

615 – How do I get a copy of my state tax return?616 – What should I do if my federal tax return

was examined and changed by the IRS?617 – What are the current interest rates?619 – How do I report a change of address?

Business Entity Tax InformationCode Filing Assistance715 – If my actual tax is less than the minimum

franchise tax, what figure do I put online 23 of Form 100 or line 23 ofForm 100W?

717 – What are the tax rates for corporations?718 – How do I get an extension of time to file?722 – When does my corporation have to file a

short-period return?734 – Is my corporation subject to a franchise tax

or income tax?S Corporations

704 – Is an S corporation subject to the minimumfranchise tax?

705 – Are S corporations required to file estimatedpayments?

706 – What forms do S corporations file?707 – The tax for my S corporation is less than the

minimum franchise tax. What figure do I puton line 22 of Form 100S?

708 – Where do S corporations make adjustmentsfor state and federal law differences onSchedule K-1 (100S) and where dononresident shareholders get theirCalifornia source income from theirSchedule K-1 (100S)?Exempt Organizations

709 – How do I get tax-exempt status?710 – Does an exempt organization have to file

Form 199?735 – How can an exempt organization incorpo-

rate without paying corporation fees andcosts?

736 – I have exempt status. Do I need to fileForm 100 or Form 109 in addition toForm 199?Minimum Tax and Estimate Tax

712 – What is the minimum franchise tax?714 – My corporation is not doing business; does

it have to pay the minimum franchise tax?716 – When are my corporation’s estimated

payments due?Billings and Miscellaneous Notices

723 – I received a bill for $250. What is this for?728 – Why was my corporation suspended?729 – Why is my subsidiary getting a request for

a return when we filed a combined report?Tax Clearance

724 – How do I dissolve my corporation?725 – What do I have to do to get a tax

clearance?726 – How long will it take to get a tax clearance

certificate?727 – My corporation was suspended/

forfeited. Can I still get a tax clearance?Miscellaneous

617 – What are the current interest rates?700 – Who do I need to contact to start a

business?701 – I need a state ID number for my business.

Who do I contact?702 – Can you send me an employer’s tax guide?703 – How do I incorporate?719 – How do I properly identify my corporation

when dealing with the Franchise Tax Board?720 – How do I obtain information about

changing my corporation’s name?721 – How does my corporation change its

accounting period?737 – Where do I send my payment?738 – What is electronic funds transfer?739 – How do I get a copy of my state corpora-

tion or partnership tax return?740 – What requirements do I have to report

municipal bond interest paid by a stateother than California?

750 – How do I organize or register an LLC?751 – How do I cancel the registration of my

LLC?752 – What tax forms do I use to file as an LLC?753 – When is the annual tax payment due?754 – What extension voucher do I use to pay the

LLC fee and/or member tax?755 – Where does a LLC send its tax payments?756 – As an LLC I never did any business or even

opened a door, bank account, or anything.Why do I owe the $800 annual tax?

757 – How are LLC fees calculated?758 – I’m a corporation that has converted to an

LLC during the current year. Am I liable forthe tax as a corporation and an LLC in thesame year?

759 – If I have nonresident members and cannotget all their signatures on the consentrelease form, can I still file the return?

Documents

California OF CALIFORNIA FRANCHISE TAX BOARD California Forms & Instructions ... The geographic boundaries of an MEA are used to determine whether the tax incentive is