Florida Administrative Code › 12 - DEPARTMENT OF REVENUE › 12C - Corporate, Estate and Intangible Tax › Chapter 12C-1 - CORPORATE INCOME TAX › Section 12C-1.0191 - Capital Investment Tax Credit Program

Current through Reg. 50, No. 138; July 16, 2024
(1) Qualifying projects defined in Sections
				220.191 (1)(g)1. and 2., F.S.
(a) Section 220.191, F.S., requires an
				application process for the capital investment tax credit, which includes
				review and recommendation by Enterprise Florida, and a certification from the
				Department of Economic Opportunity, Division of Strategic Business Development.
				Once the applicant has been recommended by Enterprise Florida and certified by
				the Department of Economic Opportunity, the applicant is required to reach a
				written agreement with the Florida Department of Revenue on how the taxable
				income from the qualifying project is to be determined or calculated. The
				Department adopts a Technical Assistance Advisement, which the applicant
				requests from the Department, as the method for entering into such written
				agreement. When requesting the Technical Assistance Advisement, the applicant
				is required to follow the guidelines provided in Rule
				12-11.003, F.A.C., and in
				addition, to include how the applicant proposes to determine the taxable income
				generated by or arising out of the qualifying project.
1. In situations where the applicant is using
				a separate corporate entity to account for the activities of the qualifying
				project, the taxable income generated by that entity as reported on the return
				filed pursuant to Section
				220.22(1),
				F.S., will be used to determine the amount of income tax due and the subsequent
				amount of the credit that will be available for use. If the applicant has other
				activities not related to the project reported on this return, a pro forma
				attachment will be required to separately account for the taxable income
				generated by the project, the resulting amount of tax due, and the subsequent
				amount of the credit that will be available for use.
2. Where the activities of the qualifying
				project are included within preexisting multiple corporate structures, such as
				several affiliates or divisions, or the activities of the project are included
				within a corporation or corporations that are included in a consolidated income
				tax return filed pursuant to Section
				220.131, F.S., the applicant
				will be required to separately account for, using a "pro forma" format, the
				qualifying project's taxable income, the amount of income tax due, and
				subsequent credit. This pro-forma attachment will indicate separately all
				revenues, expenses, either direct or indirect, and any other adjustments made
				in the determination of the project's annual taxable income, and the subsequent
				annual amount of the Capital Investment Tax Credit that may be claimed on the
				Florida corporate income tax return. This computation requires the qualifying
				project's annual taxable income to be determined by generally accepted
				accounting principles (GAAP) and to conform to the provisions contained in
				Florida Corporate Income Tax Law under Chapter 220, F.S.
3. In situations where the activities of the
				project are included within other types of corporate structures, the applicant
				will be required to separately account for, using a "pro forma" format, the
				qualifying project's taxable income, the amount of income tax due, and
				subsequent credit. This pro-forma attachment will indicate separately all
				revenues, expenses, either direct or indirect, and any other adjustments made
				in the determination of the project's annual taxable income, and the subsequent
				annual amount of the Capital Investment Tax Credit that may be claimed on the
				Florida corporate income tax return. This computation requires the qualifying
				project's annual taxable income to be determined by generally accepted
				accounting principles (GAAP) and to conform to the provisions contained in
				Florida Corporate Income Tax Law under Chapter 220, F.S.