Florida Regulations 12C-1.0188: Enterprise Zone Program
Current as of: 2022 |
Check for updates
|
Other versions
(1) Corporate Income Tax — Enterprise Zone Jobs Credit.
(a) How to Claim the Credit. Florida Statutes § 220.181(2), requires that an application, which includes the information stated in that subsection, be filed with the Enterprise Zone Development Agency for the enterprise zone in which the business is located.
(b)1. Forms Required. Taxpayers claiming the Enterprise Zone Jobs Credit for employees hired on or after January 1, 2006, must use Form F-1156Z, Florida Enterprise Zone Jobs Credit Certificate of Eligibility for Corporate Income Tax (incorporated by reference in Fl. Admin. Code R. 12C-1.051), to compute the allowable Enterprise Zone Jobs Credit amount. Form F-1156Z requires the signature of an officer, under oath, duly authorized to sign. The F-1156Z must be certified by the Enterprise Zone Development Agency, attached to a corporate income tax return, and submitted to the Department of Revenue.
2. A copy of the certified F-1156Z must be forwarded to the Florida Department of Revenue, General Tax Administration, 5050 West Tennessee Street, Tallahassee, Florida 32399-0100, by the Enterprise Zone Development Agency.
(2) Corporate Income Tax — Enterprise Zone Property Tax Credit.
(a) How to Claim the Credit.
1. Notice Required. Florida Statutes § 220.182(4), requires a notice be filed with the local property appraiser before the Enterprise Zone Property Tax Credit may be claimed. This notice must be on Form DR-456, Notice of New, Rebuilt, or Expanded Property (incorporated by reference in Fl. Admin. Code R. 12D-16.002).
2. This notice is required to be filed with the property appraiser of the county in which the eligible business property is located, or is to be located, no later than April 1 of the year in which the property is first subject to ad valorem assessment. If this notice is not filed by April 1 of the year in which the eligible property is first subject to assessment, the taxpayer will be precluded from qualifying for the tax credit and would not be allowed to claim the Enterprise Zone Property Tax Credit in later years.
(b)1. The Enterprise Zone Development Agency for the enterprise zone in which the eligible property is located, must certify all applications meeting the criteria set forth in Florida Statutes § 220.182, to be eligible to receive the credit.
2. Taxpayers claiming the Enterprise Zone Property Tax Credit against corporate income tax, must use Form F-1158Z, Enterprise Zone Property Tax Credit (incorporated by reference in Fl. Admin. Code R. 12C-1.051), to apply for, and compute the allowable amount of the credit. The F-1158Z must be certified by the Enterprise Zone Development Agency, attached to a Florida corporate income tax return and submitted to the Department of Revenue. A copy of the certified F-1158Z is to be forwarded to the Florida Department of Revenue, General Tax Administration, 5050 West Tennessee Street, Tallahassee, Florida 32399-0100, by the Enterprise Zone Development Agency.
(3) Corporate Income Tax or Insurance Premium Tax — Community Contribution Tax Credit.
(a) Who May Claim the Credit. Any taxpayer who has received prior approval from the Department of Economic Opportunity, Division of Strategic Business Development, for a community contribution to any revitalization project undertaken by an eligible sponsor, will be allowed a credit of 50 percent of the contribution. The total annual credit under this section, applied against the tax due under chapter 220, F.S., for a taxable year, is limited to $200,000. Additionally, contributions approved for insurance companies who are eligible to take this credit against the insurance premium tax, as provided for in Florida Statutes § 624.5105, are not eligible to receive the credit against the corporate income tax.
(b) The valuation of the contribution determined by the Department of Economic Opportunity, Division of Strategic Business Development will be used in the computation of the credit. In instances where the value is misrepresented to the Department of Economic Opportunity, the Director of the Department of Revenue has the authority to redetermine the value of the contribution, pursuant to Florida Statutes § 220.44
1. A contribution of more than $400,000 may be made in a tax year. However, the credit received for any contribution may not exceed the $200,000 annual credit limitation.
2. When to Claim the Credit. The credit will be claimed in the taxpayer’s taxable year in which the contribution is paid or the transfer of the asset is completed, whichever is later. Any taxpayer on the accrual basis will be allowed the deduction if the contribution conforms to the provisions of s. 170(a)(2), I.R.C.
(c) Carryover of Community Contributions.
1. If a credit granted in a tax year exceeds the tax liability for that year, the unused credit may be carried forward for a period not to exceed 5 years.
2. The community contribution tax credit carryover created in a given year as a result of an annual contribution, cannot exceed the annual $200,000 credit limitation. However, the total carryover for all years may be greater than $200,000.
3. If applicable, a schedule of the computation of any carryover of the credit must be included with the return.
(d) Consolidated Returns. In instances where taxpayers are filing a consolidated return, the community contribution tax credit will not be limited to the tax liability allocated to the particular corporation which made the contribution. Credits provided under this section are applied against the consolidated tax liability of the affiliated group that files a Florida consolidated income tax return.
(e) S Corporations. An S Corporation may avail itself of the community contribution tax credit at any time it has a Florida corporate income tax liability. In order to preserve the credit, even if the S Corporation does not have a tax liability for the current taxable year, a Form F-1120 must be filed for that taxable year, with a schedule attached which indicates the allowable credit is being carried forward. The credit may then be utilized in any of the eligible carry forward taxable years against any corporate income tax liability incurred either as an S Corporation, or as a C Corporation, if the S Corporation election is terminated.
(f) Recordkeeping Requirements. Every corporation claiming the community contribution tax credit must retain a copy of each approved application for tax credit obtained from the issuing agency for as long as the contents are material for administrative purposes. The retention of records is generally controlled by Florida Statutes § 213.35 This section requires records to be kept until the expiration of time within which the Department of Revenue may make an assessment under Florida Statutes § 95.091(3)
(4) The forms referenced in this rule section are available, without cost, by one or more of the following methods: 1) downloading the form from the Department’s website at www.floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800; or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112; or, 4) visiting any local Department of Revenue Service Center to personally obtain a copy. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY). These forms may also be obtained from the Enterprise Zone Development Agency for the enterprise zone in which the business is located.
(5) Questions relating to enterprise zones created on January 1, 2006, should be directed to:
Department of Economic Opportunity
Division of Strategic Business Development
The Capitol
Tallahassee, Florida 32399-0001.
Rulemaking Authority 213.06(1), 220.182(8), 220.183(6)(d), 220.51 FS. Law Implemented 213.05, 213.35, 220.03(1), 220.131, 220.181, 220.182, 220.183, 220.44, 290.0055, 290.0065, 290.009(1) FS. History—New 1-3-96, Amended 8-1-02, 5-1-06.
Terms Used In Florida Regulations 12C-1.0188
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Oath: A promise to tell the truth.
(b)1. Forms Required. Taxpayers claiming the Enterprise Zone Jobs Credit for employees hired on or after January 1, 2006, must use Form F-1156Z, Florida Enterprise Zone Jobs Credit Certificate of Eligibility for Corporate Income Tax (incorporated by reference in Fl. Admin. Code R. 12C-1.051), to compute the allowable Enterprise Zone Jobs Credit amount. Form F-1156Z requires the signature of an officer, under oath, duly authorized to sign. The F-1156Z must be certified by the Enterprise Zone Development Agency, attached to a corporate income tax return, and submitted to the Department of Revenue.
2. A copy of the certified F-1156Z must be forwarded to the Florida Department of Revenue, General Tax Administration, 5050 West Tennessee Street, Tallahassee, Florida 32399-0100, by the Enterprise Zone Development Agency.
(2) Corporate Income Tax — Enterprise Zone Property Tax Credit.
(a) How to Claim the Credit.
1. Notice Required. Florida Statutes § 220.182(4), requires a notice be filed with the local property appraiser before the Enterprise Zone Property Tax Credit may be claimed. This notice must be on Form DR-456, Notice of New, Rebuilt, or Expanded Property (incorporated by reference in Fl. Admin. Code R. 12D-16.002).
2. This notice is required to be filed with the property appraiser of the county in which the eligible business property is located, or is to be located, no later than April 1 of the year in which the property is first subject to ad valorem assessment. If this notice is not filed by April 1 of the year in which the eligible property is first subject to assessment, the taxpayer will be precluded from qualifying for the tax credit and would not be allowed to claim the Enterprise Zone Property Tax Credit in later years.
(b)1. The Enterprise Zone Development Agency for the enterprise zone in which the eligible property is located, must certify all applications meeting the criteria set forth in Florida Statutes § 220.182, to be eligible to receive the credit.
2. Taxpayers claiming the Enterprise Zone Property Tax Credit against corporate income tax, must use Form F-1158Z, Enterprise Zone Property Tax Credit (incorporated by reference in Fl. Admin. Code R. 12C-1.051), to apply for, and compute the allowable amount of the credit. The F-1158Z must be certified by the Enterprise Zone Development Agency, attached to a Florida corporate income tax return and submitted to the Department of Revenue. A copy of the certified F-1158Z is to be forwarded to the Florida Department of Revenue, General Tax Administration, 5050 West Tennessee Street, Tallahassee, Florida 32399-0100, by the Enterprise Zone Development Agency.
(3) Corporate Income Tax or Insurance Premium Tax — Community Contribution Tax Credit.
(a) Who May Claim the Credit. Any taxpayer who has received prior approval from the Department of Economic Opportunity, Division of Strategic Business Development, for a community contribution to any revitalization project undertaken by an eligible sponsor, will be allowed a credit of 50 percent of the contribution. The total annual credit under this section, applied against the tax due under chapter 220, F.S., for a taxable year, is limited to $200,000. Additionally, contributions approved for insurance companies who are eligible to take this credit against the insurance premium tax, as provided for in Florida Statutes § 624.5105, are not eligible to receive the credit against the corporate income tax.
(b) The valuation of the contribution determined by the Department of Economic Opportunity, Division of Strategic Business Development will be used in the computation of the credit. In instances where the value is misrepresented to the Department of Economic Opportunity, the Director of the Department of Revenue has the authority to redetermine the value of the contribution, pursuant to Florida Statutes § 220.44
1. A contribution of more than $400,000 may be made in a tax year. However, the credit received for any contribution may not exceed the $200,000 annual credit limitation.
2. When to Claim the Credit. The credit will be claimed in the taxpayer’s taxable year in which the contribution is paid or the transfer of the asset is completed, whichever is later. Any taxpayer on the accrual basis will be allowed the deduction if the contribution conforms to the provisions of s. 170(a)(2), I.R.C.
(c) Carryover of Community Contributions.
1. If a credit granted in a tax year exceeds the tax liability for that year, the unused credit may be carried forward for a period not to exceed 5 years.
2. The community contribution tax credit carryover created in a given year as a result of an annual contribution, cannot exceed the annual $200,000 credit limitation. However, the total carryover for all years may be greater than $200,000.
3. If applicable, a schedule of the computation of any carryover of the credit must be included with the return.
(d) Consolidated Returns. In instances where taxpayers are filing a consolidated return, the community contribution tax credit will not be limited to the tax liability allocated to the particular corporation which made the contribution. Credits provided under this section are applied against the consolidated tax liability of the affiliated group that files a Florida consolidated income tax return.
(e) S Corporations. An S Corporation may avail itself of the community contribution tax credit at any time it has a Florida corporate income tax liability. In order to preserve the credit, even if the S Corporation does not have a tax liability for the current taxable year, a Form F-1120 must be filed for that taxable year, with a schedule attached which indicates the allowable credit is being carried forward. The credit may then be utilized in any of the eligible carry forward taxable years against any corporate income tax liability incurred either as an S Corporation, or as a C Corporation, if the S Corporation election is terminated.
(f) Recordkeeping Requirements. Every corporation claiming the community contribution tax credit must retain a copy of each approved application for tax credit obtained from the issuing agency for as long as the contents are material for administrative purposes. The retention of records is generally controlled by Florida Statutes § 213.35 This section requires records to be kept until the expiration of time within which the Department of Revenue may make an assessment under Florida Statutes § 95.091(3)
(4) The forms referenced in this rule section are available, without cost, by one or more of the following methods: 1) downloading the form from the Department’s website at www.floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800; or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112; or, 4) visiting any local Department of Revenue Service Center to personally obtain a copy. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY). These forms may also be obtained from the Enterprise Zone Development Agency for the enterprise zone in which the business is located.
(5) Questions relating to enterprise zones created on January 1, 2006, should be directed to:
Department of Economic Opportunity
Division of Strategic Business Development
The Capitol
Tallahassee, Florida 32399-0001.
Rulemaking Authority 213.06(1), 220.182(8), 220.183(6)(d), 220.51 FS. Law Implemented 213.05, 213.35, 220.03(1), 220.131, 220.181, 220.182, 220.183, 220.44, 290.0055, 290.0065, 290.009(1) FS. History—New 1-3-96, Amended 8-1-02, 5-1-06.