California Tax Form 3523 Fill in and Calculate California State tax Online

California Tax Form 3523: Research Credit

Use the California Tax Form Calculator California Tax Form 3523: Research Credit as a stand alone tax form calculator to quickly calculate specific amounts for your 2025 California state tax return.

Research Credit
Part I Credit Computation. Read the instructions before completing this form.
Section A Regular Credit. Skip this section and go to Section B, Alternative Incremental Credit, if you are electing the alternative incremental credit
Line 1 through line 4 are to be completed only by corporations (other than S corporations, personal holding companies, and service organizations). Individuals, S corporations, estates, trusts, partnerships, and limited liability companies (LLCs), begin on line 5.
1	Basic research payments paid or incurred during the taxable year. See instructions				1
2	Base period amount. See instructions				2
3	Subtract line 2 from line 1. If less than zero, enter -0-				3
4	Multiply line 3 by 24% (0.24)				4
Qualified research expenses paid or incurred.
5	Wages for qualified services. See instructions				5
6	Cost of supplies. See instructions				6
7	Rental or lease costs of computers. See instructions				7
8	Enter the applicable percentage of contract research expenses. See instructions				8
9	Total qualified research expenses. Add line 5 through line 8				9
10	Enter fixed-base percentage, but not more than 16% (0.16). See instructions				10
11	Enter average annual gross receipts. See instructions				11
12	Base amount. Multiply line 11 by the percentage on line 10				12
13	Subtract line 12 from line 9. If zero or less, enter -0-				13
14	Multiply line 9 by 50% (0.5). See instructions				14
15	Enter the smaller of line 13 or line 14				15
16	Multiply line 15 by 15% (0.15)				16
17a	Regular credit. Add line 4 and line 16. If you do not elect the reduced credit under IRC Section 280C(c), enter the result here, and see instructions for the schedule to attach				17a
17b	Reduced regular credit under IRC Section 280C(c). Multiply line 17a by the applicable percentage below: • 87.7% (0.877) for individuals, estates, and trusts • 91.16% (0.9116) for corporations • 98.5% (0.985) for S corporations Enter the reduced credit amount and write “Section 280C(c)’’ on the dotted line to the left of line 17b				17b
Line 18 through line 21 are to be completed only by corporations (other than S corporations, personal holding companies, and service organizations). Individuals, S corporations, estates, trusts, partnerships, and LLCs, begin on line 22.
18	Basic research payments paid or incurred during the taxable year. See instructions				18
19	Base period amount. See instructions				19
20	Subtract line 19 from line 18. If less than zero, enter -0-				20
21	Multiply line 20 by 24% (0.24)				21
Qualified research expenses paid or incurred.
22	Wages for qualified services. See instructions				22
23	Cost of supplies. See instructions				23
24	Rental or lease costs of computers. See instructions				24
25	Enter the applicable percentage of contract research expenses. See instructions				25
26	Total qualified research expenses. Add line 22 through line 25				26
27	Enter average annual gross receipts. See instructions				27
28	Multiply line 27 by 1% (0.01)				28
29	Subtract line 28 from line 26. If zero or less, enter -0-				29
30	Multiply line 27 by 1.5% (0.015)				30
31	Subtract line 30 from line 26. If zero or less, enter -0-				31
32	Subtract line 31 from line 29. If zero or less, enter -0-				32
33	Multiply line 27 by 2% (0.02)				33
34	Subtract line 33 from line 26. If zero or less, enter -0-				34
35	Subtract line 34 from line 31. If zero or less, enter -0-				35
36	Multiply line 32 by 1.49% (0.0149)				36
37	Multiply line 35 by 1.98% (0.0198)				37
38	Multiply line 34 by 2.48% (0.0248)				38
39a	Alternative incremental credit. Add line 21, line 36, line 37, and line 38. If you do not elect the reduced credit under IRC Section 280C(c), enter the result here, and see instructions for the schedule that must be attached				39a
39b	Reduced alternative incremental credit under IRC Section 280C(c). Multiply line 39a by the applicable percentage below: • 87.7% (0.877) for individuals, estates, and trusts • 91.16% (0.9116) for corporations • 98.5% (0.985) for S corporations Enter the reduced credit amount and write “Section 280C(c)’’ on the dotted line to the left of line 39b				39b
Section C Available Research Credit
40	Pass-through research credit(s) from S corporations, estates, trusts, partnerships, and LLCs. See instructions				40
41	Current year research credit. If you did not elect the reduced credit under IRC Section 280C(c), add line 17a or line 39a to line 40 and enter the result here. If you elected the reduced credit under IRC Section 280C(c), add line 17b or line 39b to line 40 and enter the result here				41
42	Enter the amount of credit on line 41 that is from passive activities. If none of the amount on line 41 is from passive activities, enter -0-				42
43	Subtract line 42 from line 41				43
44	Enter the allowable credit from passive activities. See instructions				44
45	Non-passive activity credit carryover from prior year. (Do not include credits received through assignment) See instructions				45
46	Total Add line 43 through line 45				46
Part II Carryover Computation. Combined Report Filers see instructions for Part III before completing this part.
47	Credit claimed. Enter the amount of the credit claimed on the current year tax return. See instructions. (Do not include any assigned credit claimed on form FTB 3544A.)				47
48	Total credit assigned. Enter the total amount from form FTB 3544, column (g). If you are not a corporation, enter -0-. See instructions				48
49	Credit carryover available for use or assignment for future years. Subtract lines 47 and 48 from line 46				49
Part III Credit Allocation and Carryover Per Entity – Only Combined Report Filers
To make an election for assigning credits, you must also complete form FTB 3544. Otherwise, the assignment indicated here will be invalid.
Credit Generated and Assigned Per Entity
	(a) Corporation	(b) Corporation no., FEIN, or SOS no.	(c) Amount of credit generated in current year	(d) Amount of generated credit carryover from prior years	(e) Total of generated credit and credit carryover from prior years col. (c) + col. (d)
1
2
3
4
5
6
7
Total
	(f) Amount of credit from col. (e) claimed in current year return. (Do not include any assigned credit claimed on form FTB 3544A)	(g) Amount of research credit assigned and to be reported on form FTB 3544	(h) Generated credit carryover for future years col. (e)-[col. (f)+col. (g)]
1
2
3
4
5
6
7
Total

Follow us on Facebook to be informed of the latest updates to the US Tax Form Calculator and our popular Tax and Finance Calculators.