Enterprise Zone Stimulus Tax Credit (Sales and Use Tax)

Allows businesses located in an enterprise zone who collect and pay Florida Sales & Use tax, and create a new full-time job, a credit against their tax based on wages paid to new employees (in a full-time job) who have been employed by the business for at least 3 months and are residents of a Florida Enterprise Zone.

FORMS

• Enterprise Zone Stimulus Tax Credit (Sales and Use Tax) Form DR-15ZC
• Enterprise Zone Stimulus Tax Credit (Sales and Use Tax) Instructions Form DR-15ZCN

PURPOSE

• Allows business located in a Florida Enterprise Zone a monthly credit against their tax due on wages paid to new employees. A new full-time job must be created before a business earns a tax credit.

ADVANTAGES

• Provides a credit of 20% 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 30%.

LIMITATIONS

• The credit is limited to the amount of tax due on each return.
• There is no refund or carry-forward for credit in excess of the tax due.
• This credit is not available if the Enterprise Zone Stimulus Tax Credit against corporate tax is taken.

ELIGIBILITY REQUIREMENTS

BUSINESS

• Must be located within an Enterprise Zone.
• Must collect and pay sales and use tax.
• Must not be taking E.Z. Stimulus Tax Credit against corporate income tax.

EMPLOYEE

• Must reside and work in a Florida Enterprise Zone. .
• 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.
• New employee cannot be an Owner, Partner, or Stockholder.
• 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.
• Tax credit amount cannot be more than amount of sales tax owed for the month.

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 20% of monthly wages paid to new employee.
• If this percentage is 20% or more the tax credit will be 30% of monthly wages paid to new employee.

For additional information contact the Economic Development Council of Tallahassee/Leon County, Inc. (850) 521-3106.