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Announcement: Palm Beach County has created the Department of Economic Sustainability (DES), combining programs for business development, housing, and community initiatives. This department's mission is: The new website is currently under construction, but please check back often for further updates. If you are presently interested in programs for business assistance and economic development, visit EDO. For housing assistance and community development initiatives, visit HCD. We look forward to working with you.
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EFFECTIVE January 1, 2002 1. Jobs Tax Credit - Sales Tax The employer receives a monthly credit against either the sales & use tax or corporate income tax on wages paid to new employees who have been employed by the business for at least 3 months and are residents of a Florida Enterprise Zone. Advantages: The enterprise zone jobs tax credit against corporate income tax or sales & use tax no longer applies to part-time jobs. Effective January 1, 2002, the tax credit is available to businesses that have increased the number of full-time jobs from the average of the previous 12 months, or added at least five new full-time jobs between July 1, 2000 and December 31, 2001. The credit is also available for jobs filled by leased employees who meet specific criteria. There will be an increase on tax credits. The new calculation will be as displayed in the table below. Employers may get a higher tax credit if the wage rate paid to welfare program participants is at least $4 above the hourly federal minimum wage rate; the credit increases as the hourly salary increases, as shown in the table below. If requesting the tax credit against the corporate income tax, a five-year carry-forward provision is available for any unused portion of past credits. If requesting the tax credit against the sales & use tax, there is no refund or carry-forward for credit in excess of the tax due. Limitations: There will be no salary limits. This credit is available only against one type of credit, corporate income tax or sales & use tax, for the lifetime of the Enterprise Zone Program. Changes in type of credit are not allowed. The credit will be allowed for up to 24 consecutive months, beginning with the first tax return due after approval by the Department. How to apply: Submit to the Department of Revenue the following forms. Corporate Income Tax : F-1156Z with your regular F-1120. Sales Tax: Forms : DR-15ZC submit original with DR-15CS (Sales and Use Tax). Forms must be filed within six months of the hire date or within seven months of the date of hire for leased employee(s). Calculation of Jobs Tax Credit
Notes: 1. The calculations are to be made separately for each new full-time job.
Refund on sales taxes paid on business property that is used exclusively in an enterprise zone for at least three consecutive years. Business property is defined as office equipment, warehouse equipment, and some industrial machinery and equipment. The term "unit" refers to a single item of tangible personal property. If two or more items are sold to the same purchaser at the same time and each of the items is interconnected and necessary to make the other(s) functional and integrated, such items are a single unit for purposes of the $5,000 limitation when supported by charge tickets, sales slips, invoices, or other tangible evidence of a single sale. For instance, for purposes of the $5,000 limitation, a computer, monitor, keyboard, speakers, printer, and mouse sold to a customer at the same time on one invoice comprise a unit. Another example of unit would be the furniture suites or sets sold to a customer and identified in one invoice. Advantages: This incentive reduces the cost of purchasing new and used qualified tangible personal property. Limitations: The total amount of the sales tax refund must be at least $291. If less than 20% of the permanent, full-time employees of the business are residents of a Florida Enterprise Zone, the maximum refund per application will be no more than the lesser of $5,000 or 97% of the state sales tax paid. If 20% or more of the permanent, full-time employees of the business are residents of a Florida Enterprise Zone, the maximum refund per application will be no more than the lesser of $10,000 or 97% of the tax paid. How to apply: Form DR-26S and an EZ-E application form certified by the Enterprise Zone Coordinator for the enterprise zone in which the business is located, must be filed as follows: Property purchased prior to July 1, 2001, must be filed within six months after the business property is purchased. The $5,000 per unit limitation does not apply in this case. Business property purchased on or after July 1, 2001 must be filed within six months of when sales tax is due on eligible purchases. Items eligible for the refund must have a sales price of at least $5,000 per unit and must meet the other criteria under the "business property" definition. Refund 97% of the State Sales Tax paid on business equipment calculation: Minimum refund - $291 (minimum purchase amount = $5,000) Example: $5,000 (equipment purchased)
X 0.06 = $ 300 (State Sales Tax paid) 4. Building Materials - Sales Tax Refund Refund on sales taxes paid on building materials used to rehabilitate your property located in an enterprise zone. Advantages: This incentive reduces the cost of rehabilitating new real property that is located in an enterprise zone. This incentive is available to homeowners and as of January 1, 2001 to nonprofit community-based organizations, and governmental agencies. Limitations: The total amount of the sales tax refund must be at least $500, but no more than the lesser of $5,000 or 97% of the tax paid per parcel of property. If 20% or more of the permanent, full-time employees of the business are residents of a Florida Enterprise Zone, the refund will be no more than the lesser of $10,000 or 97% of the tax paid per parcel. How to apply: Form DR-26S and an EZ-M application form certified by the Enterprise Zone Coordinator in which the business is located must be filed within 6 months after the improvements have been certified for being substantially complete by the local building inspector, or within 90 days after the rehabilitated property is first subject to assessment (s. 212.08(5)(g), F.S.) Refund 97% of the State Sales Tax paid on building materials Calculation: Minimum refund $500 (minimum purchase amount= $8,600) Example: $8,600 (building materials purchased)
X 0.06 = $516.20 (State Sales Tax paid)
Employers receive credit on Florida corporate income tax equal to 96% of ad valorem taxes paid on the property. Advantages: Any unused portion of the credit may be carried forward for five years. The credit can be claimed for five years for the amount of $25,000 annually for employees that are Enterprise Zone residents. If 20% or more of the employees are Enterprise Zone residents, a maximum credit of $50,000 annually may be claimed. Limitations: Five employees must be hired to be eligible to apply for the credit. Firms must earn more than $5,000 to take advantage of the credit. The federal tax burden may increase since state tax liability is reduced. The amount of the credit also must be added back to Florida taxable income. How to apply: Business must file a notice (Form DR-456) with the County Property Appraiser before April 1st of the first year in which the new or expanded property is subject to assessment. The Enterprise Zone Coordinator will certify the application and provide copies to the Department of Revenue. Firms must include copies of receipts for applicable ad valorem taxes paid with tax returns and statements listing names and addresses of employees. (Form F-1158Z must also be submitted with the return.)
A 50% or 100% exemption of state sales tax on electrical utilities is available to businesses located in an enterprise zone. The exemption is limited to municipalities that have passed an ordinance to reduce the municipal utility tax for enterprise zone businesses: Riviera Beach and West Palm Beach. Advantages: The 50% or 100% exemption of state sales tax on utilities and the 50% abatement of municipal utility tax is available for up to five years. If 20% or greater of the employees are residents of an enterprise zone, the business will receive a larger abatement. Limitations: A 50% sales tax exemption is available to businesses located in an enterprise zone on the purchase of electrical energy. A 100% sales tax exemption is available only if 20% or greater of the permanent full-time employees are residents of a Florida Enterprise Zone. How to apply: Form DR-15JEZ must be filed with an application certified by the Enterprise Zone Coordinator for the zone in which the business is located.
50% of credit on Florida corporate income tax, insurance premium tax, and sales & use tax for donations to approved local community development projects. Advantages: For each dollar donated, businesses may receive a 55.5 cent reduction in tax liability (50 cents from the credit and 5.5 cents from the deductibility of the donation.) The donation may also be deducted from federal taxable income. The annual amount of credit granted is limited to $200,000 per donor and $10,000,000 for the state. Florida corporate income tax and insurance premium tax liability credits have a five-year carry-forward provision available for any unused portion of the tax credits. As of July 1, 2001, sales and use tax liability credits have a three-year carry-forward provision available for any unused portion of the tax credits. Limitations: Firms must earn more than $5,000 to take advantage of the credit. The IRS rules for the valuation of donated goods may require depreciation recapture, therefore, the allowable deduction may be decreased. By reducing the state tax liability, state taxes deducted from federal income are decreased, therefore, the federal tax burden may increase. Eligible businesses may claim tax credit as a refund against either sales and use tax OR corporate income tax, OR insurance premium tax. Once a choice is made, businesses must continue claiming against the same type of credit for the duration of the program. How to apply: To become an approved sponsor (or recipient of donations), submit a proposal to the Office of Tourism, Trade, and Economic Development (OTTED) for approval. The sponsor then solicits donations from businesses. Project proposals must be re-approved on annual basis. OTTED sets forth the name of the sponsor, a description of the project, and the type, value, and purpose of the contribution. Businesses seeking to participate with eligible donations must submit an application for a tax credit to OTTED along with proof of donation as many times as needed during any time of the year. Upon notification of approval from OTTED, businesses may apply to the Department of Revenue to receive the refund only one time within any 12-month period. A copy of the approval letter must be submitted with the state tax return. (Please call the Economic Development Office at 561-355-3624 to obtain the list of organizations authorized to receive donations in Palm Beach County.)
Advantages: Any real estate used and owned as a child care facility as defined in s.402.302, F.S., which operates in an enterprise zone is exempt from taxation. Definition: "Child care facility" includes any child care center or child care arrangement which provides child care for more than five children unrelated to the operator and which receives a payment, fee, or grant for any of the children receiving care, wherever operated, and whether or not operated for profit. Exclusions: The following are not included: (a) Public schools and nonpublic schools and their integral programs, except as provided in s.402.3025; (b) Summer camps having children in full-time residence; (c) Summer day camps; (d) Bible schools normally conducted during vacation periods; and (e) Operators of transient establishments, as defined in chapter 509, which provide child care services solely for the guests of their establishment or resort, provided that all child care personnel of the establishment are screened according to the level #2 screening requirements of chapter 435. Requirements: The child care facility must be located within the Palm Beach County Enterprise Zone. (Any child care facility located in the Pahokee Enterprise Zone must apply through the City of Pahokee 561-924-5534.) The facility must have been owned and used as a Child Care facility, as defined in section 402.302, Florida Statutes, on January 1 of the year for which exemption is claimed. The Child Care facility must have license from the Florida Department of Children and Family Services or local licensing authority (Palm Beach County Health Department for Child Care). The child care center is responsible for forwarding all application and required attachments to the Palm Beach County Economic Development Office on or before February 1 of the year for which exemption is claimed. |
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