Child Care Tax Credits Program

The fastest and easiest way to apply for a tax credit allocation is by using the Department’s online Multi-Tax Credits application. There you can:

• create a secure, online account;
• complete and submit your application and receive a confirmation number with the date and time of submission;
• view the status of your application(s) from your account dashboard; and,
• complete and submit tax credit applications for multiple taxes.

Taxpayers required to file and pay electronically must apply online.
(Exception: If two or more taxpayers jointly establish and operate an eligible child care facility, or cause a not-for-profit taxpayer to establish and operate an eligible child care facility, the taxpayers must file a joint application, or the not-for-profit taxpayer may file an application. The joint application must be submitted in hardcopy format. See below.)

Taxpayers not obligated to file and pay electronically may apply by submitting a paper Child Care Tax Credits Program – Application for Tax Credit Allocation (Form DR-556000).

You will need the following information to apply:

• your Federal Employer Identification Number (FEIN);
• the average number of employees employed during the taxable or fiscal year for which you are applying; and
• the name and FEIN of the parent company, if you file your Florida corporate income/franchise tax return on a consolidated basis.

If you are filing for an allocation of credit for establishing an eligible child care facility (startup costs) pursuant to section 402.261(2)(a), Florida Statutes (F.S.), you are required to complete the “Eligible Child Care Facility Information” section of Form DR-556000. (Provide the name, address, phone, FEIN, and license number (if applicable) of the eligible child care facility.) You will also need to provide:

• a completed Child Care Tax Credits Program - Application for Tax Credit Allocation Eligible Child Care Facility Statement (Form DR-556000A) (required attachment);
• your proposal for establishing an eligible child care facility for use by your employees (required attachment);
• the expected or actual beginning operation date of the eligible child care facility;
• the number of eligible children expected to be enrolled in the eligible child care facility (or actual number enrolled); and
• the amount of expected or actual startup costs for the eligible child care facility.

If you are filing for an allocation of credit for operating an eligible child care facility pursuant to s. 402.261(2)(b), F.S., you are required to complete the “Eligible Child Care Facility Information” section of Form DR-556000. (Provide the name, address, phone, FEIN, and license number (if applicable) of the eligible child care facility.) You will also need to provide:

• a completed Child Care Tax Credits Program - Application for Tax Credit Allocation Eligible Child Care Facility Statement (Form DR-556000A) (required attachment);
• the total number of months the eligible child care facility is expected to operate during the taxable or fiscal year in which the credit will be earned;
• the total number of eligible children for whom child care will be provided at the eligible child care facility; and
• the number of eligible children enrolled in the eligible child care facility during each month of the taxable or fiscal year in which the credit will be earned.

If you are filing for an allocation of credit for making payments to an eligible child care facility in the name and for the benefit of your employee(s) pursuant to s. 402.261(2)(c), F.S., you will also need to provide:

• the total number of eligible children for whom child care payments will be paid to an eligible child care facility during the taxable or fiscal year in which the credit will be earned; and
• the estimated total annual amount of child care payments made to an eligible child care facility during the taxable or fiscal year in which the credit will be earned.

Applications for allocation of credit will be approved on a first-come, first-served basis. The Department will send notification of approval or denial. Before sending notification of approval or denial for a credit allocation against excise taxes on liquor, wine, and malt beverages, the Department must receive approval from the Division of Alcoholic Beverages and Tobacco of the Florida Department of Business and Professional Regulation. Taxpayers that create an account and apply online can also view their application status from their account dashboard.

Approval of a credit allocation does not authorize the credit to be claimed. See “Claiming a Tax Credit” for more information.

If your credit allocation is approved, you must incur startup costs for an eligible child care facility, operate an eligible child care facility, or make payments to an eligible child care facility in the name and for the benefit of an employee before claiming the credit on a tax return.

You may apply to the Department to rescind all or part of a previously approved tax credit allocation under the Child Care Tax Credits Program by visiting the Department’s online Multi-Tax Credits application. Rescinding a tax credit allocation allows credit allocations that will not be used by you to be made available to other taxpayers wishing to apply for an allocation. A separate application is required to rescind each previously approved credit allocation.

Taxpayers required to file and pay electronically must apply online for a rescindment. Taxpayers that create an online account and apply online can view the status of the rescindment from their account dashboard.

Taxpayers not obligated to file and pay electronically may apply by submitting a paper Child Care Tax Credits Program ─ Application for Rescindment of Previous Allocation of Tax Credit (Form DR-556100).

You will need the following information to apply for a rescindment:

• 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 Employer Identification Number (FEIN); and
• the FEIN of the parent company, if you file your Florida corporate income/franchise tax return on a consolidated basis.

The Department will send notification of approval or denial. Before sending notification of approval for rescindments related to excise taxes on liquor, wine, and malt beverages, the Department must receive approval from the Division of Alcoholic Beverages and Tobacco of the Florida Department of Business and Professional Regulation.

The tax credit may be conveyed, assigned, or transferred:

• if all of the assets of a taxpayer/entity are conveyed, transferred, or assigned in the same transaction; or
• from one taxpayer/entity (transferor) to another taxpayer/entity (transferee) when the transferee is a member of the transferor’s affiliated group.

You can apply for a transfer from one member to another member of your affiliated group by submitting the paper Child Care Tax Credits Program – Notice of Intent to Transfer a Tax Credit (Form DR-556200).

The Department will send notification of approval or denial. Before sending notification of approval or denial for transfers related to excise taxes on liquor, wine, and malt beverages, the Department must receive approval from the Division of Alcoholic Beverages and Tobacco of the Florida Department of Business and Professional Regulation. If the transfer is approved, a copy of the approval letter will be sent to both the transferor and transferee. The approval letter will include instructions on how the transferee may claim the tax credit on a tax return. Transfers must be approved before a transferee may claim a tax credit on a tax return.

The credit must be earned during the tax year through the date the taxpayer is required to file its Florida Corporate Income/Franchise Tax Return (Form F-1120), including extended due dates. One hundred percent of any earned credit is allowed against any tax due for a tax year. The amount of the tax credit for a tax year must be taken in the order of the credits provided against the corporate income tax in section 220.02(8), Florida Statutes (F.S.).

Applications for allocation of credit may be submitted beginning on the first business day in January for tax years that begin in the same calendar year. 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 credit earned for the tax year will apply to the first installment due for that tax 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 in which an extension of time to file the tax return has been granted.

If you cannot use the full amount of the tax credit earned for the given tax year, you may carry forward the amount of unused tax credit for up to five years.

Example 1 – For the credit cap for state fiscal year 2024-25, a corporate income tax taxpayer applying for a credit allocation for its tax year beginning January 1, 2024, and ending December 31, 2024, may submit an application on October 1, 2024. The credit must be earned during the tax year through on or before the tax return due date of May 1, 2025; however, if the due date of the taxpayer’s Florida corporate income/franchise tax return is validly extended, the credit must be earned before November 1, 2025. If the earned credit is not fully used on this return, the unused credit can be carried forward up to five years.

Example 2 – For the credit cap for state fiscal year 2025-26, a corporate income tax taxpayer applying for a credit allocation for its tax year beginning January 1, 2025, and ending December 31, 2025, may submit an application on January 2, 2025. The credit must be earned before May 1, 2026; however, if the due date of the taxpayer’s Florida corporate income/franchise tax return is validly extended, the credit must be earned before November 1, 2026. If the earned credit is not fully used on this return, the unused credit can be carried forward up to five years.

Example 3 – For the credit cap for state fiscal year 2025-26, a corporate income tax taxpayer applying for a credit allocation for its tax year beginning December 1, 2025, and ending November 30, 2026, may submit an application on January 2, 2025. The credit must be earned before April 1, 2027; however, if the due date of the taxpayer’s Florida corporate income/franchise tax return is validly extended, the credit must be earned before October 1, 2027. If the earned credit is not fully used on this return, the unused credit can be carried forward up to five years.

References: ss. 220.02, 220.19, and 402.261, F.S.

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 excise tax due, except excise taxes imposed on wine produced by manufacturers in this state from products grown in this state. The amount of credit taken may not exceed 90% of the tax due on the return the credit is claimed.

Applications may be submitted beginning on the first business day in January for credit to be earned during 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.

If you cannot use the full amount of the tax credit earned in the given state fiscal year, you may carry forward the amount of unused tax credit for up to five years.

Example 1 – For state fiscal year 2024-25, excise taxpayers of liquor, wine, and malt beverages applying for a credit allocation may submit an application between October 1, 2024, and June 30, 2025, assuming the annual allocation is not exhausted before the time of application. In this example, the taxpayer must earn the credit between July 1, 2024, and June 30, 2025. The credit can be claimed after the credit is earned and before June 30, 2025. If the earned credit is not fully used before June 30, 2025, the unused credit can be carried forward up to five years.

Example 2 – For state fiscal year 2025-26, excise taxpayers of liquor, wine, and malt beverages applying for a credit allocation may submit an application between January 2, 2025, and June 30, 2026, assuming the annual allocation is not exhausted before the time of application. In this example, the taxpayer must earn the credit between July 1, 2025, and June 30, 2026. The credit can be claimed after the credit is earned and before June 30, 2026. If the earned credit is not fully used before June 30, 2026, the unused credit can be carried forward up to five years.

References: ss. 402.261 and 561.1214, Florida Statutes

The credit must be earned during the tax year. One hundred percent of any earned credit is allowed against any tax due for a tax 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 ss. 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 the salary credit allowed under s. 624.509(5), F.S., as these are limited by s. 624.509(6), F.S. (the 65% limitation);
4. the amount of any Strong Families Tax Credit under s. 624.51057, F.S.; and
5. the amount of any Live Local Program credit under s. 624.51058, F.S.

A copy of the tax credit allocation letter issued by the Department must be attached to your tax return when claiming the credit. Credits earned for a tax year 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 credit to be earned during the tax year that begins in the same calendar year. The Department will accept applications for an allocation of credit against that insurance premium tax year until the allotted credit cap amount is reached or until the day before the due date of the return for the applicable insurance premium tax year, whichever occurs first.

If you cannot use the full amount of the tax credit earned in the given tax year, you can carry forward the amount of the unused tax credit for up to five years.

Example 1 – For state fiscal year 2024-25, an insurance premium taxpayer applying for a credit allocation for its 2024 tax year may submit an application between October 1, 2024, and February 28, 2025, assuming the annual allocation is not exhausted before the time of application. In this example, the taxpayer must earn the credit between January 1, 2024, and December 31, 2024. If the earned credit is not fully used on its 2024 insurance premium tax return, the insurer can carry forward the unused credit up to five years.

Example 2 – For state fiscal year 2025-26, an insurance premium taxpayer applying for a credit allocation for its 2025 tax year may submit an application between January 2, 2025, and February 28, 2026, assuming the annual allocation is not exhausted before the time of application. In this example, the taxpayer must earn the credit between January 1, 2025, and December 31, 2025. If the earned credit is not fully used on its 2025 insurance premium tax return, the insurer can carry forward the unused credit up to five years.

References: ss. 402.261 and 624.5107, F.S.

One hundred percent of the credit earned during the fiscal year is allowed as a credit against the use tax due from a direct pay permit holder. Claiming this credit will not reduce your collection allowance.

Applications may be submitted beginning on the first business day in January for credit to be earned in the state fiscal year beginning the following July 1. The Department will accept applications for an allocation of credit against the use tax from 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.

If you cannot use the full amount of the tax credit earned in the given state fiscal year, you may carry forward the amount of unused tax credit for up to five years.

Example 1 – For state fiscal year 2024-25, direct pay permit holders applying for a credit allocation may submit an application between October 1, 2024, and June 30, 2025, assuming the annual allocation is not exhausted before the time of application. In this example, the taxpayer must earn the credit between July 1, 2024, and June 30, 2025. The credit can be claimed after the credit is earned and before June 30, 2025. If the earned credit is not fully used before June 30, 2025, the unused credit can be carried forward up to five years.

Example 2 – For state fiscal year 2025-26, direct pay permit holders applying for a credit allocation may submit an application between January 2, 2025, and June 30, 2026, assuming the annual allocation is not exhausted before the time of application. In this example, the taxpayer must earn the credit between July 1, 2025, and June 30, 2026. The credit can be claimed after the credit is earned and before June 30, 2026. If the credit amount is not fully used before June 30, 2026, the unused credit can be carried forward up to five years.

References: ss. 212.1835 and 402.261, Florida Statutes

One hundred percent of the credit earned during the fiscal year is allowed against any severance tax due on oil and gas production. However, the total amount of credit claimed on each return must not exceed 50% of the tax due. If Child Care, Florida Tax Credit Scholarship, Strong Families, or New Worlds Reading Initiative tax credits are combined and exceed 50% of the tax due on a return, the credits must be taken in the following order:

1. Florida Tax Credit Scholarship Program
2. Strong Families Tax Credit
3. New Worlds Reading Initiative Tax Credit
4. Child Care Tax Credits

Attach a copy of the tax credit allocation letter issued by the Department to your tax return when claiming Child Care Tax Credits.

Applications may be submitted beginning on the first business day in January for credit to be earned 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.

If you cannot use the full amount of the tax credit earned in the given state fiscal year, you may carry forward the amount of unused tax credit for up to five years.

Example 1 – For state fiscal year 2024-25, oil and gas production taxpayers applying for a credit allocation may submit an application between October 1, 2024, and June 30, 2025, assuming the annual allocation is not exhausted before the time of application. In this example, the taxpayer must earn the credit between July 1, 2024, and June 30, 2025. The credit can be claimed after the credit is earned and before June 30, 2025. If the earned credit is not fully used before June 30, 2025, the unused credit can be carried forward up to five years.

Example 2 – For state fiscal year 2025-26, oil and gas production taxpayers applying for a credit allocation may submit an application between January 2, 2025, and June 30, 2026, assuming the annual allocation is not exhausted before the time of application. In this example, the taxpayer must earn the credit between July 1, 2025, and June 30, 2026. The credit can be claimed after the credit is earned and before June 30, 2026. If the earned credit is not fully used before June 30, 2026, the unused credit can be carried forward up to five years.

References: ss. 211.0254 and 402.261, Florida Statutes