Enterprise Zone Property Tax Credit(Corporate Income Tax)

New or expanded businesses located in an Enterprise Zone are allowed a credit on Florida corporate income tax equal to 96% of ad valorem taxes paid on the new or improved property (the assessment rate varies by county).

FORMS

• Property Tax Credit Form F-1158Z
• Property Tax Credit (Notice of New, Rebuilt, or Expanded Property) Form DR-456

PURPOSE

• New or expanded business located in an Enterprise zone are allowed a credit on Florida corporate income tax equal to 96% of ad valorem taxes paid on the new or improved property

ADVANTAGES

• Any unused portion of the credit may be carried forward to 5 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 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

• 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 businesses: tax credit will be based on the ad valorem taxes paid from the assessments on property replaced or restored.

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