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ENTERPRISE
ZONE JOBS TAX CREDIT (Corporate Income Tax
Section 220.181, Florida Statutes
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ENTERPRISE
ZONE PROPERTY
TAX CREDIT (Corporate Income Tax)
Section 220.182, Florida Statutes
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COMMUNITY
CONTRIBUTION TAX
CREDIT PROGRAM
(Corporate Income Tax)
Section 220.183, Florida Statutes
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| What
is the program? |
Allows
businesses located in an enterprise zone who pay corporate income
tax a corporate income tax credIT for wages paid to new employees
(in a new full-time job) who have been employed by the business for
at least 3 months and are residents of a Florida enterprise zone (or
are Welfare Transition Program participants).
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New,
expanded or rebuilding businesses located in an enterprise zone are
allowed a credIT on Florida corporate income tax equal to 96% of ad
valorem taxes paid on the new or improved property (the assessment
rate varies by county). |
Allows
businesses anywhere in Florida a 50% credIT on Florida corporate income
tax, insurance premium tax, or sales tax refund for donations to local
community development projects. Donations must be made to an eligible
sponsor conducting an approved community development project. The
annual amount of credIT granted is limited to $200,000 per firm and
$10,000,000 for the state.
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| What
are the advantages? |
This
incentive provides a credIT of 20% of wages to new eligible employees
who are residents of a Florida enterprise zone. If 20% or more of
the permanent, full-time employees are residents of a Florida enterprise
zone, the credIT is 30%.
A five-year carry-forward provision is available for unused portions
of past credits.
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Any
unused portion of the credIT may be carried forward for five years.
The credIT can be claimed for five years, up to a maximum of $50,000
annually, IT 20% or more employees are enterprise zone residents;
otherwise the credIT is limited to $25,000 annually.
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For
each dollar donated, businesses may receive a 50-cent reduction in
Florida tax liability. The donation may also be deducted from Federal
taxable income.
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| What
are the limitations? |
Firms
must earn more than $5,000 to take advantage of the credIT .
The Federal tax burden may increase since state tax liability is reduced.
The amount of the credIT also must be added back to Florida taxable
income.
This credIT is not available if the CredIT Against Sales Tax for Job
Creation is taken.
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New
or Expanding businesses must create 5 or more jobs to take advantage
of the credIT .
Rebuilding
businesses must have suffered damage in an "emergency declared
by the Governor."
The
Federal tax burden may increase, since state tax liability is reduced.
The amount of the credIT must also be added back to Florida taxable
income.
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IRS
rules for the valuation of donated goods may require depreciation
recapture; therefore, the deduction may be decreased.
By reducing the state tax liability, state taxes deducted from federal
income are decreased; therefore, the federal tax burden may increase.
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| How
do I receive the credIT ? |
Form
F-1156Z, which requires a list of names and addresses of eligible
employees, must be certified by an Enterprise Zone Coordinator and
submitted with the business' corporate income tax return.
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Businesses
must file Form FR-456 with the county property appraiser before April
1 of the first year in which the new or expanded property is subject
to assessment. An Enterprise Zone Coordinator will certify Form F-1158Z
and provide copies to the department of Revenue. Firms must include
copies of receipts for applicable ad valorem taxes paid with tax returns
and Form F-1158Z.
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The
project sponsor submits a proposal to O.T.T.E.D. for approval and
solicits donations from businesses. Businesses file form 8E-17TCA#01
to O.T.T.E.D.
Once the donation has been approved, a copy of the approval letter
must be submitted with the state tax return or application for a sales
tax refund. Project proposals must be recertified on an annual basis.
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