Tax Credits and Incentives-Enterprise Zone Credit | We speak English, Spanish, Hebrew & French

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Tax Credits and Incentives - Enterprise Zone Credit

A corporate income tax credit or a sales tax credit may be taken by any business located in an enterprise zone that has increased jobs from the number of jobs 12 months prior to the application date. The credit applies only to wages that are subject to the unemployment tax and does not apply to any new employee who is employed for fewer than three full months or to any employee who is an owner, partner or majority stockholder of an eligible business.

The credit is equal to:

20% of the monthly wages paid to each new employee hired when a new job has been created;
30% of monthly wages if the business is located in a rural enterprise zone;
30% of the monthly wages if more than 20% of the business's employees are residents of an enterprise zone;
45% of the monthly wages if the business is in a rural enterprise zone and more than 20% of employees are residents of a Florida enterprise zone.

If the new employee is a participant in the welfare transition program, the credit is:

40% for $4 above the hourly federal minimum wage rate;
41% for $5 above the hourly federal minimum wage rate;
42% for $6 above the hourly federal minimum wage rate;
43% for $7 above the hourly federal minimum wage rate;
44% for $8 above the hourly federal minimum wage rate.

These credits may be carried forward for up to five years. A business that claims the corporate income tax credit may not claim the similar sales and use tax credit for any new employee.

A business must first obtain certification from the enterprise zone coordinator for the zone in which the business is located. To claim the corporate income tax credit, Form F-1156Z, Florida Enterprise Zone Jobs Credit Certificate of Eligibility for Corporate Income Tax, must be attached to Form F-1120, Florida Corporate Income/Franchise and Emergency Excise Tax Return. To claim the sales and use tax credit, Form DR-15ZC, Application for Florida Enterprise Zone Jobs Credit for Sales Tax, must be filed. Generally, the sales tax credit form must be submitted within six months of the date a new employee is hired.