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Property Tax Credit (Corporate Income Tax): Rural and Urban Enterprise Zones
s.220.182, F.S.
Forms:
Purpose:
Advantages:
- Any unused portion of the credit may be carried forward to five years.
Limitations:
- Firms must earn more than $5,000 to take advantage of the credit.
- The Federal tax burden may increase, since state tax liability is reduced. The amount of the credit must also be added back to Florida taxable income.
Eligibility Requirements:
- The corporation must be located within an Enterprise Zone
- Firms must earn more than $5,000 to take advantage of the credit.
- 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.”
Tax Credit Calculation
- New businesses: tax credit will be based on the amount of ad valorem taxes paid.
- Expanding businesses: tax credit will be based on the additional ad valorem taxes paid from the assessments on additional real or tangible personal property acquired for the expansion project.
- Rebuilding b businesses: tax credit will be based on the ad valorem taxes paid from the assessments on property replaced or restored
- If 20% or more of the full time employees are Enterprise Zone residents then the maximum of $50,000 annual credit can be claimed for 5 years; otherwise the credit is limited $25,000 annually for 5 years.
Calculations:
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New businesses: tax credit will be based on the amount of ad valorem taxes paid.
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Expanding businesses: tax credit will be based on the additional ad valorem taxes paid from the assessments on additional real or tangible personal property acquired for the expansion project.
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Rebuilding businesses: tax credit will be based on the ad valorem taxes paid from the assessments on property replaced or restored.
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