Florida State Tax Credits

More ways to save your hard-earned money from the tax man!

Florida has some great State Tax Credits for you....

Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.

We hope this resource is helpful to you, and if there is something you feel we have missed, please let us know!

It would be completely arrogant of us to think that we know all things and if we missed something we want to know so we can vet that and help you and our other friends in the entrepreneurial community pay less in taxes! And if you found this helpful, you should check out our DIY resources inside of our Tax Savings Communities (found at www.MakeTaxesFair.com/Our-Communities).

We're also ready to help you if you want to skip the line of the DIY process and get help directly from us. To learn more about how we help our clients check out www.MakeTaxesFair.com/Get-My-Roadmap

 
Florida

Florida Tax Credit Scholarship Program

Overview:
The Florida Tax Credit Scholarship Program allows businesses and taxpayers to earn tax credits by making voluntary contributions to approved nonprofit scholarship-funding organizations (SFOs). These donations help fund private school scholarships for eligible K–12 students across Florida.

Who It’s For:
Florida taxpayers with liability in corporate income tax, insurance premium tax, alcohol excise taxes, gas and oil production taxes, or use taxes due under a direct pay permit, seeking to support education while reducing their state tax liabilities.

Four Key Highlights:

  1. Wide Range of Eligible Taxes for Credit

    • Credits can offset taxes such as corporate income tax, insurance premium tax, excise taxes on liquor, wine, and beer, and more.

  2. Pre-Approval Required Before Donating

    • Taxpayers must apply for and receive a credit allocation from the Florida Department of Revenue before making any contributions.

  3. First-Come, First-Served Allocation

    • Credit allocations are issued in the order applications are received, encouraging early application each year.

  4. Strict Contribution and Usage Rules

    • Contributions must be directed only to approved nonprofit SFOs listed by the Florida Department of Education, and credits cannot exceed the taxpayer’s actual tax liability.

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Florida Rural Job Tax Credit Program

Overview:
The Florida Rural Job Tax Credit Program incentivizes businesses to create jobs in designated rural areas by offering tax credits for hiring qualified employees. Credits can be applied against corporate income tax or sales and use tax, supporting economic growth in Florida’s rural communities.

Who It’s For:
New or existing businesses physically located in one of Florida’s 36 designated Qualified Rural Areas that are creating full-time jobs in eligible industries such as manufacturing, agriculture, hospitality, and customer service centers.

Four Key Highlights:

  1. Generous Per-Employee Tax Credits

    • Businesses earn $1,000 per qualified new employee, with a bonus $500 for hiring Welfare Transition Program participants.

  2. Eligibility Based on Location and Industry

    • Must operate in a Qualified Rural Area and fall within approved SIC industry codes like agriculture, manufacturing, R&D, hotels, and amusement parks.

  3. Carryforward and Election Rules

    • Corporate tax credits carry forward up to five years, while sales and use tax credits must be used within 12 months; once a tax type is chosen, it cannot be switched after claiming.

  4. Compliance Requirements for Approval

    • Businesses must use E-Verify for new hires, submit a foreign entity affidavit, and meet minimum hiring thresholds (10 new employees for new businesses, or a 10-20% workforce increase for existing ones).

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Urban High-Crime Area Job Tax Credit Program

Overview:
The Urban High-Crime Area Job Tax Credit Program encourages businesses to create new jobs in designated high-crime urban areas across Florida. Businesses can earn tax credits against corporate income tax or sales and use tax based on the number of full-time employees hired or added.

Who It’s For:
Businesses physically located in one of Florida’s 13 designated urban high-crime areas that are expanding or starting operations and creating full-time jobs in eligible industries.

Four Key Highlights:

  1. Tiered Per-Employee Tax Credits

    • New businesses and existing businesses can earn between $500 and $1,500 per employee, depending on the area's assigned tier.

  2. Eligible Industries Defined by SIC Codes

    • Qualifying activities include agriculture, manufacturing, retail, warehousing, R&D, lodging, amusement parks, and customer service call centers.

  3. Bonus Credit for Targeted Hires

    • Businesses receive an additional $500 credit per employee for hiring participants from the Welfare Transition Program.

  4. Application and Use Restrictions

    • Applications are first-come, first-served until the $5 million annual cap is reached.

    • Credits must be used within 12 months, and businesses may only apply once per 12-month period.

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Florida Community Contribution Tax Credit Program (CCTCP)

Overview:
The Florida Community Contribution Tax Credit Program (CCTCP) encourages businesses to support affordable housing, economic development, and community revitalization by offering a tax credit for donations made to approved community projects. Businesses can apply the credit toward corporate income, insurance premium, or sales taxes.

Who It’s For:
Florida-based businesses that pay corporate income tax, insurance premium tax, or sales tax and are willing to donate cash, property, or goods to certified community development, housing, or economic development projects.

Four Key Highlights:

  1. 50% Tax Credit for Donations to Approved Projects

    • Businesses receive a tax credit worth 50% of the donation's value, whether cash, property, or goods.

  2. Wide Range of Eligible Sponsors and Projects

    • Donations must go to approved organizations like community development nonprofits, housing authorities, redevelopment agencies, and others focused on low-income housing, job development, or broadband expansion.

  3. Limited Statewide Cap and First-Come, First-Served

    • Credits are awarded until the annual statewide cap is met, making early application critical for businesses.

  4. Simple Application and Claiming Process

    • Businesses must apply to FloridaCommerce for approval, then attach the approval letter when filing either their corporate, insurance premium, or sales tax refund applications.

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Florida Live Local Program Tax Credit

Overview:
The Florida Live Local Program Tax Credit, established in 2023, provides a dollar-for-dollar tax credit for businesses making monetary contributions to the Florida Housing Finance Corporation to support affordable housing initiatives. The credit offsets corporate income tax or insurance premium tax and encourages private sector investment in state housing development.

Who It’s For:
Florida businesses subject to corporate income tax or insurance premium tax that wish to contribute financially to the Florida Housing Finance Corporation and receive a state tax credit in return.

Four Key Highlights:

  1. Dollar-for-Dollar Tax Credit with 10-Year Carryforward

    • Full credit for the amount contributed, with unused credits carried forward for up to 10 years.

  2. Strict Pre-Approval Requirement

    • Businesses must apply for a tax credit allocation online (or by paper if exempt) before making contributions.

  3. Contribution Only Accepted as Monetary Donations

    • Only cash contributions made directly to the Florida Housing Finance Corporation qualify; no in-kind or non-cash contributions are eligible.

  4. Annual Statewide Credit Cap and First-Come, First-Served

    • Applications open January 1st each year and are processed until the annual credit cap is reached, making early application essential.

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Florida Research and Development (R&D) Tax Credit

Overview:
The Florida R&D Tax Credit offers corporate income tax credits to businesses engaging in qualified research and development activities in targeted industries. Businesses must have received the federal R&D credit under Section 41 of the IRC and must operate within Florida’s specified target industries.

Who It’s For:
Corporations subject to Florida corporate income tax that operate in qualified target industries such as aerospace, IT, life sciences, manufacturing, and more, and have claimed the federal R&D tax credit.

Four Key Highlights:

  1. Credit Tied to Federal R&D Tax Credit Eligibility

    • Businesses must qualify for the federal R&D tax credit and be certified as a target industry business by the Florida Department of Commerce.

  2. $9 Million Annual Credit Cap

    • The statewide cap is $9 million annually; if demand exceeds the cap, credits are prorated among all approved applicants.

  3. Strict Application Window

    • Applications open March 20–26, 2025 for expenses incurred in 2024; only a short timeframe is available, and applications are first-come, first-served.

  4. Five-Year Carryforward for Unused Credits

    • If the credit exceeds a company’s Florida tax liability, unused portions can be carried forward for up to five years.

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