California Form 3805Z applies to individuals, estates, trusts, corporations, partnerships, and limited liability companies (LLCs) that operate within a designated California Enterprise Zone (EZ). These state-designated zones were created to stimulate economic growth and job creation in targeted communities. Any eligible entity that conducted business within an EZ during the taxable year must attach completed Form 3805Z to their California Franchise Tax Board return to claim EZ tax benefits.
The form covers five main areas. Part I calculates the hiring credit from Schedule Z for qualified EZ employees. Part II computes the business expense deduction using Worksheet II. Part III determines the net interest deduction from Worksheet III. Part IV allocates business income between EZ and non-EZ operations. Part V handles the net operating loss (NOL) deduction and carryover amounts for EZ activity. Each section requires separate calculations, so gather all relevant financial records before you begin.
To complete Form 3805Z, you need the name of your Enterprise Zone, the number of employees working within the EZ, gross annual receipts, and total asset value. Credits that exceed your current California tax liability may be carried forward to future tax years using the Schedule Z credit carryover columns. Review your entries carefully, since errors in Part I or Schedule Z directly affect the hiring credit and total EZ credit limitation.
| Question | Answer |
|---|---|
| Form Name | California Form 3805Z |
| Form Length | 2 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 30 sec |
| Other names | 12_3805z 2012 ca form 3805z |