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Florida Tax Credit Scholarship Program

The Florida Tax Credit Scholarship Program allows taxpayers to make private, voluntary contributions to eligible nonprofit scholarship-funding organizations and receive a dollar-for-dollar credit against the following Florida taxes:

  • corporate income tax;
  • excise tax on liquor, wine, and malt beverages;
  • gas and oil production tax;
  • insurance premium tax; and
  • sales and use tax due under a direct pay permit.

You can find a listing of eligible nonprofit scholarship-funding organizations at the Florida Department of Education - School Choice web page.

The fastest and easiest way to apply for an allocation of credit or to rescind a previous allocation of credit is to use the online application. You must apply online if you are required to file returns and remit payments by electronic means. When an online application is completed and submitted, a confirmation number will be provided to confirm receipt of the application. Taxpayers who do not meet the electronic filing requirements are encouraged to apply online.

Apply for an Allocation of Florida Tax Credit Scholarship Program Credit

To apply for the credit online, visit the Department's Online Application for Tax Credit Allocation for Contributions to Nonprofit Scholarship Funding Organizations (SFOs). Once you complete the application, you will receive a confirmation number that you can print for your records. This confirmation number only confirms that the Department received your application. It does not approve the application for credit allocation, and it does not authorize the use of any credit. The Department will send you written correspondence explaining the approved tax credit allocation or the reason the credit allocation could not be approved.

You will need the following information:

  • your federal identification number,

  • the name of the eligible nonprofit scholarship-funding organization you plan to contribute to,

  • the amount you plan to contribute for the specific tax, and

  • if you file your Florida corporate income/franchise tax return on a consolidated basis, the name and federal identification number of the parent company.

Rescind a Previously Approved Florida Tax Credit Scholarship Program

A taxpayer may apply to the Department to rescind all or part of a previously approved credit allocation for a contribution to an eligible nonprofit scholarship-funding organization under the Florida Tax Credit Scholarship Program. You must submit a separate application for each previously approved credit allocation you wish to rescind.

You will need the following information:

  • the confirmation number from your original application for an allocation of credit,
  • the amount you wish to rescind in total and by tax type,
  • your federal identification number,
  • the name of the eligible nonprofit scholarship-funding organization which you originally intended to make your contribution to, and
  • if you file your Florida corporate income/franchise tax return on a consolidated basis, the federal identification number of the parent company.

The Department will send written correspondence explaining the approved rescinded amount or the reason the application could not be approved. The Department will approve the application unless you have claimed the credit amount to be rescinded on a previously filed tax return, or the credit allocation for a particular year is closed.

To apply for rescindment online, visit the Department's Application for Rescindment of Tax Credit for Contributions to Nonprofit Scholarship Funding Organizations (SFOs).

Corporate Income Tax

One hundred percent of an eligible contribution is allowed as a credit against any tax due for a taxable year. The credit granted must be reduced by the resulting decrease in federal income tax when considering the credit and the overall impact it has on the federal income tax due. The amount of credit taken for the taxable year must be added back to taxable income only once. A copy of the certificate of contribution from each eligible nonprofit scholarship-funding organization must be attached to the return when claiming the credit.

For taxable years beginning on or after January 1, 2018, applications may be submitted beginning on the first business day in January for contributions to be made for taxable years that begin in the same calendar year through the day before the due date, or if extended, the day before the extended due date of the Florida corporate income/franchise tax return. The allocation of each state fiscal year's allotted credit cap amount begins on the first business day in January. The Department will accept applications for an allocation of credit against corporate income tax until the allotted credit cap amount is reached or until the day before the due date, or if the due date is extended, the day before the extended due date of the return for the applicable tax year, whichever occurs first.

For estimated tax purposes, all contributions that earn a credit for the taxable year beginning on or after January 1, 2018, will apply to the first installment due for that taxable year under the prior year exception. However, estimated tax penalty and interest may still be imposed under certain circumstances when the request for an allocation of credit is made during the period of time in which an extension of time to file the tax return has been granted.

An unused credit cannot be carried forward more than 10 years. The tax credit cannot be conveyed, assigned, or transferred to another entity unless the other entity is a member of the taxpayer's affiliated group, or all the assets of the taxpayer are conveyed, transferred, or assigned in the same transaction. For transfers to another member of the taxpayer's affiliated group, submit Florida Tax Credit Scholarship Program Notice of Intent to Transfer a Tax Credit (Form DR-116200 PDF Icon).

References: Sections 220.02(8), 220.13(1)(a)1.b., 220.13(1)(a)11., 220.1875, 220.222, 220.32, 220.34, and 1002.395, Florida Statutes, and Rule Chapter 12-29, Florida Administrative Code

Excise Tax on Liquor, Wine, and Malt Beverages

Upon approval of the Division of Alcoholic Beverages and Tobacco of the Florida Department of Business and Professional Regulation, a credit is allowed against any tax due, except excise taxes imposed on wine produced by manufacturers in this state from products grown in this state, for eligible contributions paid to an eligible nonprofit scholarship-funding organization. The amount of credit taken may not exceed 90% of the tax due on the return the credit is claimed. A copy of the certificate of contribution from each eligible nonprofit scholarship-funding organization must be attached to the return when claiming the credit.

Applications may be submitted beginning on the first business day in January for contributions to be made in the state fiscal year beginning the following July 1. The Department will accept applications for an allocation of credit against these excise taxes until the allotted credit cap amount is reached or until the end of the applicable state fiscal year, whichever occurs first.

An unused credit cannot be carried forward more than 10 years. The credit cannot be conveyed, assigned, or transferred to another entity unless the other entity is a member of the taxpayer's affiliated group, or all the assets of the taxpayer are conveyed, assigned, or transferred in the same transaction. For transfers to another member of the taxpayer's affiliated group, submit the Florida Tax Credit Scholarship Program Notice of Intent to Transfer a Tax Credit (Form DR-116200 PDF Icon).

References: Sections 561.1211, 563.05, 564.06, 565.12, and 1002.395, Florida Statutes, and Rule Chapter 12-29, Florida Administrative Code

Insurance Premium Tax

One hundred percent of an eligible contribution is allowed as a credit against any tax due for a taxable year after deducting from such tax:

  1. Deductions for assessments made pursuant to Section 440.51, Florida Statutes (F.S.) - Workers' Compensation Administrative Assessments;
  2. Credits for taxes paid under Sections 175.101 and 185.08, F.S. - Firefighters' and Police Officers' Pension Trust Funds;
  3. Credits for income tax paid under Chapter 220, F.S.; and
  4. Credit allowed under Section 624.509(5), F.S., as such credit is limited by Section 624.509(6), F.S., the 65% limitation.

A copy of the certificate of contribution from each eligible nonprofit scholarship-funding organization must be attached to your tax return when claiming the credit. Contributions made on or before an installment due date decrease the amount that must be paid to meet the prior year exception for installment penalty and interest purposes.

Applications may be submitted beginning on the first business day in January for contributions to be made in tax years that begin in the same calendar year. The Department will accept applications for an allocation of credit against the insurance premium tax until the allotted credit cap amount is reached or until the end of the applicable insurance premium tax year, whichever occurs first.

An unused credit cannot be carried forward more than 10 years. The credit cannot be conveyed, assigned, or transferred to another entity unless the other entity is a member of the taxpayer's affiliated group, or all the assets of the taxpayer are conveyed, assigned, or transferred in the same transaction. For transfers to another member of the taxpayer's affiliated group, submit Florida Tax Credit Scholarship Program Notice of Intent to Transfer a Tax Credit (Form DR-116200 PDF Icon ).

References: Section 624.509, 624.51055, and 1002.395, Florida Statutes, and Rule Chapter 12-29, Florida Administrative Code

Sales and Use Tax Due Under a Direct Pay Permit Holder

One hundred percent of an eligible contribution is allowed as a credit against any state sales and use tax due from a direct pay permit holder. Before a credit can be claimed on a Sales and Use Tax Return (Form DR-15), the taxpayer must submit a copy of the certificate of contribution from each eligible nonprofit scholarship-funding organization to:

Florida Department of Revenue
Revenue Accounting
PO Box 6609
Tallahassee, Fl. 32314-6609

The Department will respond with specific instructions on how to claim the credit on your return. You cannot claim the credit until you receive these instructions.

Applications may be submitted beginning on the first business day in January for contributions to be made in the state fiscal year beginning the following July 1. The allocation of each state fiscal year's allotted amount begins on the first business day in January. The Department will accept applications for an allocation of credit against the sales and use tax of a direct pay permit holder until the allotted credit cap amount is reached or until the end of the applicable state fiscal year, whichever occurs first.

Claiming this credit will not reduce your collection allowance. An unused credit cannot be carried forward more than 10 years. The credit cannot be conveyed, assigned, or transferred to another entity unless the other entity is a member of the taxpayer's affiliated group, or all the assets of the taxpayer are conveyed, assigned, or transferred in the same transaction. For transfers to another member of the taxpayer's affiliated group, submit Florida Tax Credit Scholarship Program Notice of Intent to Transfer a Tax Credit (Form DR-116200 PDF Icon).

References: Sections 212.183, 212.1831, and 1002.395, F.S., and Rule Chapter 12-29, Florida Administrative Code

Severance Tax - Gas and Oil Production

One hundred percent of an eligible contribution is allowed as a credit, but the amount of the credit taken may not exceed 50% of the tax due on the return the credit is claimed. A copy of the certificate of contribution from each eligible nonprofit scholarship-funding organization must be attached to your tax return when claiming the credit.

Applications may be submitted beginning on the first business day in January for contributions to be made in the state fiscal year beginning the following July 1. The Department will accept applications for an allocation of credit against the severance tax until the allotted credit cap amount is reached or until the end of the applicable state fiscal year, whichever occurs first.

An unused credit cannot be carried forward more than 10 years. The credit cannot be conveyed, assigned, or transferred to another entity unless the other entity is a member of the taxpayer's affiliated group, or all the assets of the taxpayer are conveyed, assigned, or transferred in the same transaction. For transfers to another member of the taxpayer's affiliated group, submit Florida Tax Credit Scholarship Program Notice of Intent to Transfer a Tax Credit (Form DR-116200 PDF Icon).

References: Sections 211.02, 211.025, 211.0251, and 1002.395, Florida Statutes, and Rule Chapter 12-29, Florida Administrative Code