Insurance Premium Tax Incentives

Salary Tax Credit

Provides a credit against insurance premium taxes and fees for up to 15% of the salary of employees of the insurer who:

• Perform insurance-related activities;
• Are located or based within this state; and
• Are covered by Chapter 443, Florida Statutes (F.S.), Reemployment Assistance.

References: Sections 624.509(5) and 624.509(6), Florida Statutes, and Rule 12B-8.001, Florida Administrative Code

Capital Investment Tax Credit

This credit is available to businesses in a designated high-impact sector (e.g., silicon technology, transportation industries, or solar panel manufacturing facilities).

• The business must establish a qualified project which results in a cumulative capital investment of at least $25 million.
• The project must be certified by the Florida Department of Commerce. An annual credit may be claimed for up to 20 years in an annual amount up to 5% of the eligible capital costs generated by a qualifying project.

References: Section 220.191, Florida Statutes (F.S.), Rule 12C-1.0191, Florida Administrative Code (F.A.C.), Tax Information Publication #98C1-06 , and Tax Information Publication #08C01-04 .

Child Care Tax Credits Program

A credit is available against specific Florida taxes, including the insurance premium tax, for taxpayers that:

• establish an eligible child care facility for employees;
• operate an eligible child care facility for employees; or
• pay an eligible child care facility in the name and for the benefit of an employee.

For more information, visit the Department’s Child Care Tax Credits Program webpage.

References: Sections 402.261 and 624.5107, F.S.

Community Contribution Tax Credit

A credit of 50% of a qualified community contribution (cash, property, or goods) to an eligible sponsor for a project, as defined in Section 220.03(1)(t), F.S., is allowable.

• The annual amount granted is up to $200,000 per business.
• The credit may be carried over for five years.
• File an Application for a Community Contribution Tax Credit (Form 8E-17TCA#01) with the Florida Department of Commerce.
• Attach the credit approval letter from the Florida Department of Commerce to the Insurance Premium Taxes and Fees Return (Form DR-908) for the taxable year in which the donation is made.

Reference: Section 624.5105, F.S.

Home Away From Home Tax Credit

Taxpayers may make contributions to eligible charitable organizations and receive a dollar-for-dollar credit against specific Florida taxes, including insurance premium tax. For more information, visit the Department’s Home Away From Home Tax Credit webpage.

References: Sections 402.63 and 624.51059, F.S.

Live Local Program Tax Credit

Taxpayers may make contributions to the Florida Housing Finance Corporation and receive a dollar-for-dollar credit against corporate income tax or insurance premium tax. For more information, visit the Department’s Live Local Program Tax Credit webpage.

References: Sections 420.50872 and 624.51058, F.S.

New Markets Tax Credit

A credit equal to 39% of the purchase price of a qualified investment as defined in Section 288.9913(9), F.S. may be taken. The credit may be carried forward for five years.

Reference: Section 288.9916, F.S.

New Worlds Reading Initiative Tax Credit

Taxpayers may make contributions to an administrator and receive a dollar-for-dollar credit against specific Florida taxes, including the insurance premium tax. For more information, visit the Department's New World Reading Initiative – Tax Credit webpage.

References: Sections 624.51056 and 1003.485, F.S.

Rural Community Investment Program Tax Credit

The Rural Community Investment Program (RCIP) provides tax credits against corporate income tax or insurance premium tax to encourage investment in rural business investment companies that subsequently invest in eligible businesses located in rural communities throughout Florida.

• The credit must be approved by the Florida Department of Commerce.
• Attach the final order issued by the Florida Department of Commerce to the Insurance Premium Taxes and Fees Return (Form DR-908) when claiming credit.
• Unused credit may be carried forward for use in subsequent tax years until the tax year containing the 11th credit certification date.
• Unused credit may be transferred to affiliates of the certified rural fund. Refer to Rural Community Investment Program Notice of Intent to Transfer a Tax Credit (Form DR-288062) – coming soon.

Reference: Section 288.062, F.S.

Scholarship-Funding Organizations – Tax Credits for Contributions

The Florida Tax Credit Scholarship Program allows taxpayers to make private, voluntary contributions to nonprofit scholarship funding organizations and receive a dollar-for-dollar credit against specific Florida taxes, including the insurance premium tax. For more information, visit the Department's Scholarship-Funding Organizations – Tax Credits for Contributions web page.

References: Section 624.51055 and 1002.395, F.S., and Rule Chapter 12-29, F.A.C.

Strong Families Tax Credit

Taxpayers may make contributions to eligible charitable organizations and receive a dollar-for-dollar credit against specific Florida taxes, including the insurance premium tax. For more information, visit the Department's Strong Families Tax Credit webpage.

References: Sections 624.51057 and 402.62, F.S.

Corporate Income Tax Credit

Income tax imposed under Chapter 220, Florida Statutes (F.S.), paid by any insurer may be credited against, and to the extent thereof will discharge, the liability for premium taxes imposed by Section 624.509, F.S., for the annual period in which such tax payments are made.

References: Sections 624.509(4) and 624.509(6), F.S., and Rule 12B-8.001, Florida Administrative Code

Firefighters’ Pension Trust Fund Credit

Amounts assessed and paid by an insurer amounting to 1.85% of the gross amount of receipts of premiums from policyholders on all premiums collected on property insurance policies covering property within the corporate limits of such municipalities or within the legally defined boundaries of special fire control districts, respectively, may be credited against insurance premium taxes and fees.

Reference: Section 175.141, F.S.

Municipal Police Officers’ Retirement Trust Fund Credit

Amounts assessed and paid by an insurer amounting to .85% of the gross amount of receipts of premiums from policyholders on all premiums collected on casualty insurance policies covering property within the corporate limits of such municipalities, may be credited against insurance premium taxes and fees.

Reference: Section 185.12, F.S.

Workers’ Compensation Administrative Assessment Credit

Amounts assessed and paid by an insurance carrier, self-insurer authorized under Section 624.4621, F.S., or commercial self-insurance fund authorized under Sections 624.460 - 624.488, F.S., may be deducted from the amount of any other tax levied by the state upon the premiums, assessments, or deposits for workers' compensation insurance on contracts or policies of said insurance carrier, self-insurer, or commercial self-insurance fund.

Reference: Section 440.51(5), F.S.

Florida Life and Health Insurance Guaranty Association (FLAHIGA)

A credit to a member insurer of FLAHIGA, based on any assessments described in Section 631.718, Florida Statues (F.S.), is allowed. The credit is 5% of the amount of the assessment for each assessment levied by the association on the member for a period of 20 years. For assessments paid in earlier periods, the percentages for which the credit was allowed varied. See Schedule VII of the Insurance Premium Taxes and Fees Return (Form DR-908 ).

Reference: Section 631.72, F.S.