Florida offers tax credits, refunds, and other incentives to promote business development and job creation.
Incentive Related to Jobs
Salary Tax Credit
Provides a credit against insurance premium taxes and fees for up to 15% of the salary of employees of the insurer who:
- Perform insurance-related activities;
- Are located or based within this state; and
- Are covered by Chapter 443, Florida Statutes (F.S.), Reemployment Assistance.
References: Sections 624.509(5) and 624.509(6), Florida Statutes, and Rule 12B-8.001, Florida Administrative Code
Incentives Related to Investment in Florida
Capital Investment Tax Credit
This credit is available to businesses in a designated high-impact sector (e.g., silicon technology, transportation industries, or solar panel manufacturing
- The business must establish a qualified project which results in a cumulative capital investment of at least $25 million.
- The project must be certified by the Florida Department of Economic Opportunity. An annual credit may be claimed for up to 20 years in an annual amount up to
5% of the eligible capital costs generated by a qualifying project.
References: Section 220.191, Florida Statutes (F.S.), Rule 12C-1.0191, Florida Administrative Code (F.A.C.), Tax Information Publication #98C1-06
, and Tax Information Publication #08C01-04
Community Contribution Tax Credit
A credit of 50% of a qualified community contribution (cash, property, or goods) to an eligible sponsor for a project, as defined in Section 220.03(1)(t),
F.S., is allowable.
- The annual amount granted is up to $200,000 per business.
- The credit may be carried over for five years.
- Complete the Florida Department of Economic Opportunity (DEO), Application for a Community Contribution Tax Credit
- Attach the credit approval letter from DEO to the Insurance Premium Taxes and Fees Return (Form DR-908) for the
taxable year in which the donation is made.
Reference: Section 624.5105, F.S.
New Markets Tax Credit
A credit equal to 39% of the purchase price of a qualified investment as defined in Section 288.9913(9), F.S. may be taken. The credit may be carried
forward for five years.
Reference: Section 288.9916, F.S.
Scholarship-Funding Organizations – Tax Credits for Contributions
The Florida Tax Credit Scholarship Program allows taxpayers to make private, voluntary contributions to nonprofit scholarship
funding organizations and receive a dollar-for-dollar credit against specific Florida taxes, including the insurance premium tax.
For more information, visit the Department's Scholarship-Funding Organizations – Tax Credits for Contributions web page.
References: Section 624.51055 and 1002.395, F.S., and Rule Chapter 12-29, F.A.C.
Incentives Related to Other Assessments Paid
Corporate Income Tax Credit
Income tax imposed under Chapter 220, Florida Statutes (F.S.), paid by any insurer may be credited against, and to the extent thereof will discharge, the
liability for premium taxes imposed by Section 624.509, F.S., for the annual period in which such tax payments are made.
References: Sections 624.509(4) and 624.509(6), F.S., and Rule 12B-8.001, Florida Administrative Code
Firefighters’ Pension Trust Fund Credit
Amounts assessed and paid by an insurer amounting to 1.85% of the gross amount of receipts of premiums from policyholders on all premiums collected on
property insurance policies covering property within the corporate limits of such municipalities or within the legally defined boundaries of special fire control
districts, respectively, may be credited against insurance premium taxes and fees.
Reference: Section 175.141, F.S.
Municipal Police Officers’ Retirement Trust Fund Credit
Amounts assessed and paid by an insurer amounting to .85% of the gross amount of receipts of premiums from policyholders on all premiums collected on
casualty insurance policies covering property within the corporate limits of such municipalities, may be credited against insurance premium
taxes and fees.
Reference: Section 185.12, F.S.
Workers’ Compensation Administrative Assessment Credit
Amounts assessed and paid by an insurance carrier, self-insurer authorized under Section 624.4621, F.S., or commercial self-insurance fund
authorized under Sections 624.460 - 624.488, F.S., may be deducted from the amount of any other tax levied by the state upon the premiums, assessments, or
deposits for workers' compensation insurance on contracts or policies of said insurance carrier, self-insurer, or commercial self-insurance fund.
Reference: Section 440.51(5), F.S.
Incentive Related to Insurers and Health Maintenance Organizations
Florida Life and Health Insurance Guaranty Association (FLAHIGA)
A credit to a member insurer of FLAHIGA, based on any assessments described in Section 631.718, Florida Statues (F.S.), is allowed. The credit is 5% of the amount of the
assessment for each assessment levied by the association on the member for a period of 20 years. For assessments paid in earlier periods, the percentages for
which the credit was allowed varied. See Schedule VII of the Insurance Premium Taxes and Fees Return
Reference: Section 631.72, F.S.