Bulletin: Tax Intelligence – Florida Enterprise Zone
Florida’s Enterprise Zone (EZ) Program offers valuable job creation tax incentives to qualifying businesses. These tax incentives are available to all businesses, including retail, as long as they are located in a Florida Enterprise Zone. Qualified companies can take these credits against either income tax or sales tax.
Once a company determines they have a location in a Florida Enterprise Zone, they can qualify for a tax credit by hiring at least one full-time employee who lives in an enterprise zone or a rural county. The credit has various levels of benefit, ranging from 20% of the qualifying employee’s wages to as high as 45% of the qualifying employee’s wages for a business in a rural enterprise zone. The credit can be taken up to 24 months for each qualifying employee.
Florida offers a favorable option to businesses in regards to utilizing this credit. Businesses may elect to apply the credit against two different types of tax – income tax or sales tax. If a company chooses to take the credit against income tax, unused credit can be carried forward for up to five tax years. Against sales tax, there is no carryforward.
Timeliness is key when pursuing this program. Prior to taking the job tax credit, the local zone enterprise zone coordinator must verify the enterprise zone address. In addition, the business must take the credit on their current return. When amending an income tax return, a business cannot take more credit than that which was taken on the original return. For sales tax returns, credit must be claimed for a qualifying employee within six months of hire.
Equifax Workforce Solutions monitors all Florida Enterprise Zones, and can verify your locations and calculate credit for any qualifying employees. Equifax Workforce Solutions can also file necessary applications, with little or no burden to your business. If your company is interested in receiving more information on these credits or any other credits, please contact us
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