New Florida Corporate Income Tax Credits Explained by French Brown

State and Local Taxation (SALT) attorney French Brown recently authored “INSIGHT: Florida Corporate Income Tax Credits Help Recipients and Taxpayers Through New Law,” which appeared as an article in Bloomberg Tax. Brown focuses on three new tax credit improvements that are meant to encourage corporations to participate in the Florida Tax Credit (FTC) Scholarship Program.

He states:

Since 2001, Florida has allowed a dollar-for-dollar tax credit when a corporation chooses to redirect its corporate income taxes as a donation to help fund scholarships for lower-income students. This extremely successful program is known as the Florida Tax Credit (FTC) Scholarship Program. Corporate income taxpayers contribute more than $150 million through the program each year. Through the corporate income tax credits, plus tax-credited contributions from five other eligible tax types, more than 100,000 students have received a K-12 scholarship this school year.

In 2018, the Florida Legislature passed three additional improvements to incentivize the program for corporations.

Three Program Improvements

  1. Enhancing and Streamlining the Ability for Taxpayers to Carry Forward Credits
  2. Allowing Credits for Contributions Occurring After the Taxpayer’s Fiscal Year End
  3. Applying Contributions Against Any Estimated Taxes Due, Even If the Contribution Occurs After the Due Date

In the remainder of his article, Brown provides details and examples related to each of the intended improvements. To get the entire information in Brown’s article about Florida corporate income tax credits, please click here. The PDF is reproduced with permission from Bloomberg Daily Tax Report.

If you have questions about corporate tax credits or any other state or local tax issues, please contact a member of Dean Mead’s SALT team.

You can learn more about the Florida Tax Credit Scholarship Program by visiting the Florida Department of Education’s website.