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Insurance Premium Tax Incentives

Florida offers tax credits, refunds, and other incentives to promote business development and job creation.

Note: Florida's Enterprise Zone Program expired on December 31, 2015. See Tax Information Publication #15ADM-04 PDF Icon issued September 8, 2015.

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 facilities).

  • 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 PDF Icon, and Tax Information Publication #08C01-04 PDF Icon.

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 (Form 8E-17TCA#01 PDF Icon).
  • 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.

Tax Credits for Contributions to Nonprofit Scholarship-Funding Organizations

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.

Find eligible nonprofit scholarship funding organizations at Florida Department of Education - School Choice, or apply for the credit now.

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
(Form DR-908 PDF Icon).

Reference: Section 631.72, F.S.