Florida Regulations 12C-1.0188: Community Contribution Tax
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(1) Who May Claim the Credit inst Corporate Income Tax or Insurance Premium Tax.
(a) Any taxpayer who has received prior approval from the Florida Department of Commerce 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 for each taxpayer, applied against the tax due under Florida Statutes Chapter 220, for a taxable year, is limited to $200,000. 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 Florida Department of Commerce will be used in the computation of the credit. In instances where the value is misrepresented to the Florida Department of Commerce, 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.
(2) Carryover of Community Contributions.
(a) 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.
(b) 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.
(c) If applicable, a schedule of the computation of any carryover of the credit must be included with the return.
(3) 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.
(4) 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.
(5) 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)
Rulemaking Authority 213.06(1), 220.183(4)(d), 220.51 FS. Law Implemented 213.35, 220.03(1), 220.131, 220.183, 220.44 FS. History-New 1-3-96, Amended 8-1-02, 5-1-06, 1-1-24.
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.
(b) The valuation of the contribution determined by the Florida Department of Commerce will be used in the computation of the credit. In instances where the value is misrepresented to the Florida Department of Commerce, 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.
(2) Carryover of Community Contributions.
(a) 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.
(b) 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.
(c) If applicable, a schedule of the computation of any carryover of the credit must be included with the return.
(3) 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.
(4) 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.
(5) 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)
Rulemaking Authority 213.06(1), 220.183(4)(d), 220.51 FS. Law Implemented 213.35, 220.03(1), 220.131, 220.183, 220.44 FS. History-New 1-3-96, Amended 8-1-02, 5-1-06, 1-1-24.