Applying for a Credit Allocation
Florida law requires the Department to approve allocations of funds
available under the Florida Tax Credit Scholarship Program for
Commercial Rental Property on a first-come, first-served basis. As a
tenant of commercial rental property, you must apply with the
Department to receive an allocation of the available funds.
An application for an allocation of funds may be submitted for the
state fiscal year in which the application is submitted or the
following state fiscal year. For example, for a credit allocation for
the 2020-2021 state fiscal year, tenants may apply for a credit
allocation beginning on January 1, 2020. The application must be
submitted on or before June 30, 2021. Submit a separate application
for each fiscal year.
A separate application is required for each commercial rental
property. A separate application is also required to contribute to
more than one eligible nonprofit scholarship-funding organization.
To apply you will need the following information:
- Business names for tenant and landlord
- FEIN or EIN (if available) for tenant and landlord
-
Landlord sales tax certificate number of rental property (when FEIN
or EIN is not available)
- Business mailing address for tenant and landlord
- Name of contact persons for tenant and landlord
- Telephone number for tenant and landlord
- Physical street address of commercial rental property
The fastest and easiest way to receive a credit allocation is to apply
using the
Florida Tax Credit Scholarship Program for Commercial Rental
Property
online application. The online application allows you to:
-
create a secure, online account where your application information
will be stored;
-
quickly complete your application and receive a confirmation number
with the date and time of submission;
-
easily submit applications for multiple commercial rental
properties; and
-
view a summary of your applications and the status of each
application.
You may also apply by submitting the paper
Florida Tax Credit Scholarship Program for Commercial Rental
Property Application for a Credit Allocation
(Form DR-117000
).
Applications will be reviewed for an allocation of the funds available
for the fiscal year in which the application is submitted. When funds
are available, and you are eligible to receive a credit allocation, a
letter indicating the amount of credit allocation approved will be
issued to you. If the Department is not able to approve the allocation
you requested, a letter explaining why a credit allocation could not
be approved will be mailed to you.
Contributing to an Eligible Nonprofit Scholarship-Funding Organization
If your credit allocation is approved, you must make a monetary
contribution to the organization you selected in your application
before receiving the tax credit. The contribution must be made within
the same state fiscal year (July 1 - June 30) the credit allocation
was issued. When you make your contribution, the organization
receiving the contribution will issue a certificate of contribution
containing the amount of the contribution and the date received.
Receiving the Allocated Tax Credit
After you receive the certificate of contribution, you may take the
tax credit against the state sales tax due on the rent or license fees
paid to your landlord. The tax credit may only be taken against state
sales tax due. Any discretionary sales surtax due must be paid to your
landlord.
When taking the tax credit against the state sales tax due, provide
your landlord a copy of the credit allocation approval letter issued
by the Department and the certificate of contribution issued by the
eligible nonprofit scholarship-funding organization. Retain the
original letter and certificate in your records.
If you are unable to use the total amount of the available tax credit
on a single rent or license fee due to an insufficient amount of state
tax due, you may take the credit against future rent or license fees
due to the landlord for a period of up to 10 years.
Changing a Credit Allocation
After you receive a letter from the Department approving a credit
allocation, you must notify the Department when:
-
your landlord collecting and remitting sales tax on the property
changes; or
-
you move to another commercial rental property and you plan to use
your approved credit allocation at your new commercial rental
property location.
To notify the Department of these changes, submit a
Florida Tax Credit Scholarship Program for Commercial Rental
Property Application to Change a Credit Allocation
(Form DR-117100
).
If you contributed to an eligible nonprofit scholarship-funding
organization to receive the tax credit under the Program, attach a
lease payment schedule regarding the rent or license fees paid on the
commercial rental property for which your original credit allocation
was applied, beginning with the date your credit allocation was
approved by the Department, and include the following information:
- the amount of each rent or license fee payment;
- the date of each rent or license fee payment;
-
the sales tax and discretionary sales surtax due on each payment;
and
- the amount of the tax credit claimed for each payment.
The Department will review your application to determine whether you
remain eligible for the credit allocation. If approved, a letter will
be issued to you indicating the amount of credit allocation approved
for the new landlord or for the new commercial rental property, or
both the new landlord and the new commercial rental property location.
If the Department is not able to approve the changes in the credit
allocation you requested, a letter will be mailed to you explaining
why a credit allocation could not be approved.
Transferring a Credit Allocation
The tax credit may not be conveyed, assigned, or transferred to
another tenant unless all assets of the tenant are conveyed, assigned,
or transferred in the same transfer transaction, and the successor
business continues the same lease with the landlord.
To transfer any unused tax credit, send a written notice containing
information about each party to the transfer and the transfer of all
assets to the successor business to:
Florida Department of Revenue
Revenue Accounting
PO Box 6609
Tallahassee, FL 32314-6609
Rescinding a Credit Allocation
If you no longer plan to contribute to the selected organization, you
may rescind any unused tax credit allocation to allow other tenants of
commercial rental property to receive a credit allocation. You must
apply to rescind your credit allocation during the same fiscal year
for which your credit allocation was approved.
To apply for rescindment of a previously approved credit allocation,
visit the Department's
Florida Tax Credit Scholarship Program for Commercial Rental
Property
online application.
You may also apply by submitting the paper
Florida Tax Credit Scholarship Program for Commercial Rental
Property Application for Rescindment of a Credit Allocation
(Form DR-117200
).
A separate application is required to rescind each previously approved
credit allocation. If your application is approved, a letter
indicating the amount of the approved rescinded credit allocation will
be issued to you. If the Department is not able to approve the
rescindment you requested, a letter explaining why the rescindment
could not be approved will be mailed to you.
As a landlord, you will need to provide your federal employer
identification number, if available, to any tenant desiring to
participate in the Program. If you do not have a federal employer
identification number, provide your sales tax registration number for
the commercial rental property to the tenant.
The tenant should provide you with a copy of the credit allocation
approval letter issued by the Department and the certificate of
contribution issued by the eligible nonprofit scholarship-funding
organization. Retain these documents in your records.
When your tenant takes a credit allowed under the Program, you may
take the tax credit against the state sales tax due to the Department.
Any discretionary sales surtax due must be paid.
To receive the tax credit, you must file an electronic
Sales and Use Tax Return (Form
DR-15) and pay the tax due electronically. The total amount of tax due
reported on your tax return must include the total sales tax due
(state sales tax plus any discretionary sales surtax) before deducting
the contribution of state sales tax to the Program. For more
information, see
Tax Information Publication #18A01-15.
If you are filing the shorter Form DR-15EZ, and you need to report
this credit, call the Department's Taxpayer Assistance at 850-488-6800
Monday through Friday, excluding holidays, to change your filing
return to Form DR-15.
