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Department of Revenue Issues Tax Credit TIP

Department of Revenue Issues Tax Credit TIP

The Florida Department of Revenue has issued Tax Information Publication (TIP) 15ADM-03 relating to the community contribution tax credit.  Insurers may be interested in the tax credit against the insurance premium tax.  The credit also may be taken against the sales and use tax and the corporate income tax.  The text of the TIP is set forth below:

Community Contribution Tax Credit
Against Sales and Use Tax, Corporate Income Tax, or
Insurance Premium Tax
2015 Legislative Changes

The Community Contribution Tax Credit against sales and use tax, corporate income tax, or insurance premium tax has been extended through June 30, 2018. The credit has been expanded to include donations made to provide housing opportunities for persons with special needs, as defined in Section 420.0004, Florida Statutes (F.S.).

Before making a donation for which you will be claiming a credit, please be sure it will qualify. A list of eligible organizations is available from the Department of Economic Opportunity (DEO). To receive approval, a business donating to an eligible sponsor must submit a tax credit application to DEO. In order to claim the tax credit, attach proof of the approved donation when you file your state tax return. To claim a sales tax refund, you will need to submit a Sales and Use Tax Application for Refund (Form DR-26S).

Donations to projects that would have qualified previously will continue to be eligible for the credit if the projects are in an area that was located in an enterprise zone pursuant to Section 290.0065, F.S., as of May 1, 2015.

References: Chapter 2015-221, Laws of Florida; Sections 212.08, 220.03, 220.183, and 624.5105, Florida Statutes