Allows business 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.
FORM
PURPOSE
- Allows businesses anywhere in Florida a 50% credit on Florida corporate income tax, insurance premium tax, or sales tax refund for donation to local community development projects
ADVANTAGES
- For each dollar donated, business may receive a $.555 ($.50 from the credit, $.055 from the deductibility of the donation).
- The donation may also be deducted from Federal taxable income.
- A 5 year carry forward provision is available for any unused portion of the corporate income tax credit (sales tax refunds are available for up to 3 years after the first application).
LIMITATIONS
- 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.
ELIGIBILITY REQUIREMENTS
- 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.
- New businesses must establish 5 or more new jobs.
- Expanding businesses must establish 5 or more new jobs.
- Rebuilding businesses must have suffered damage in an “emergency.”
For additional information contact Karen Hintz, Economic Development Program Coordinator, Economic Development Council of Tallahassee/Leon County, Inc. (850) 521-3111 or khintz@taledc.com
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