Jobs Tax Credit (Corporate Income Tax):  Rural Enterprise Zones
s.220.181, F.S.

Forms:

• EZ Jobs Credit Certificate F-1156Z

Purpose:

• Allows business located in a Florida Enterprise Zone a corporate income tax credit for the wages paid to new employees.

Advantages:

• Provides a credit of 30% of wages paid to new eligible employees who are residents of Florida Enterprise Zone.  
• If more than 20% of the employees are residents of a Florida Enterprise Zone, the credit is 45%.

Limitations:

• Firms must earn more than $5,000 to take advantage of the credit.
• The Federal tax burden may increase sine state tax liability is reduced.
• That amount of the credit must be added back to Florida taxable income.
• This credit is not available if the Credit Against Sales Tax for Job Creation is taken.

Eligibility Requirements:

Business:  

• Must be located within a Rural Enterprise Zone. (See s. 290.004(8), F.S. for Rural Enterprise Zone definition.)
• Must not be taking E.Z. Jobs Tax Credit against sales tax.

Employee:

• Must work in a new job in an Enterprise Zone and reside within a rural county. (See s. 288.106(1)( r ), F.S. for more details.)
• Welfare Transition Program participants may reside anywhere, but must work within a zone.
• Must work at least 36 hours per week (no part-time employees).
• Must be employed for three consecutive months.
• Employees leased from an employee leasing company must continuously be leased to an employer for more than 6 months.
• Previous employees must not have been employed by the hiring business in the preceding 12 months.  
• Tax credits shall be allowed for up to 24 months per new employee.
• Unused tax credit may be carried forward up to 5 years.

Calculations:

• Number of permanent, full-time zone resident employees/Total number of permanent, full-time zone and non zone resident employees.
• If this percentage is less than 20% the tax credit will be 30% of monthly wages paid to new employees.
• If this percentage is 20% or more the tax credit will be 45% of monthly wages paid to new employees.