Live Local Program Tax Credit

The fastest and easiest way to apply for a tax credit allocation is the Department’s online Multi-Tax Credits application. Here you can:

• create a secure, online account;
• complete and submit your application and receive a confirmation number with the date and time of submission;
• view the status of your application(s) from your account dashboard; and
• complete and submit tax credit applications for multiple taxes.

Taxpayers required to file and pay electronically must apply online. Taxpayers not obligated to file and pay electronically may apply by submitting the paper Live Local Program – Application for Tax Credit Allocation for Contributions to the Florida Housing Finance Corporation (Form DR-446000).

You will need the following information to apply:

• your federal identification number;
• the total amount you plan to contribute;
• the amount you plan to contribute for each specific tax; and,
• if you file your Florida corporate income/franchise tax return on a consolidated basis, the name and federal identification number of the parent company.

The Department will send notification of approval or denial. Taxpayers who create an account and apply online can also view their application status from their account dashboard.

Approval of a credit allocation does not authorize the credit to be claimed. See “Claiming a Tax Credit” for more information.

If your credit allocation is approved, you must make a monetary contribution to the Florida Housing Finance Corporation before claiming a credit against tax due. The Florida Housing Finance Corporation will issue you a Certificate of Contribution containing the amount of the contribution and the date received.

Please refer to the tax sections below for tax credit information specific to each tax.

You may apply to the Department to rescind all or part of a previously approved credit allocation under the Live Local Program by visiting the Department’s online Multi-Tax Credits application. Rescinding a tax credit allocation allows credit allocations that will not be used by you to be made available to other taxpayers wishing to apply for an allocation. A separate application is required to rescind each previously approved credit allocation.

Taxpayers required to file and pay electronically must apply online for a rescindment. Taxpayers who create an online account and apply online can view the status of the rescindment from their account dashboard.

Taxpayers not obligated to file and pay electronically may apply by submitting the paper Live Local Program ─ Application for Rescindment of Previous Allocation of Tax Credit (Form DR-446100).

You will need the following information to apply for a rescindment:

• the confirmation number from your original application for an allocation of credit;
• the amount you wish to rescind in total and by tax type;
• your federal identification number; and
• if you file your Florida corporate income/franchise tax return on a consolidated basis, the federal identification number of the parent company.

The Department will send notification of approval or denial.

The tax credit may be conveyed, assigned, or transferred only:

• if all the assets of a taxpayer/entity are conveyed, transferred, or assigned in the same transaction; or
• from one taxpayer/entity (transferor) to another taxpayer/entity (transferee) when the transferee is a member of the transferor’s affiliated group.

You can apply for a transfer from one member to another member of your affiliated group by submitting the paper Live Local Program – Notice of Intent to Transfer a Tax Credit (Form DR-446200).

The Department will send notification of approval or denial. If the transfer is approved, a copy of the approval letter will be sent to both the transferor and transferee. The approval letter will include instructions on how the transferee may claim the tax credit on a tax return. Transfers must be approved before a transferee may claim a tax credit on a tax return.

One hundred percent of an eligible contribution is allowed as a credit against any tax due for a taxable year. The amount of the tax credit for a tax year must be taken in the order of the credits provided against the corporate income tax in section 220.02(8), Florida Statutes (F.S.). The credit granted must be reduced by the resulting decrease in federal income tax, if any, when considering the credit and the overall impact it has on the federal income tax due. The amount of credit taken for the taxable year must be added back to taxable income only once. A copy of the Certificate of Contribution issued by the Florida Housing Finance Corporation must be attached to the return when claiming the credit.

For taxable years beginning within the 2023 calendar year only, applications may be submitted beginning October 1, 2023.

For taxable years beginning on or after January 1, 2024, applications may be submitted beginning on the first business day in January for contributions to be made for taxable years that begin in the same calendar year through the day before the due date, or if extended, the day before the extended due date of the Florida Corporate Income/Franchise Tax Return (Form F-1120). The allocation of each state fiscal year's allotted credit cap amount begins on the first business day in January. The Department will accept applications for an allocation of credit against corporate income tax until the allotted credit cap amount is reached or until the day before the due date, or if the due date is extended, the day before the extended due date of the return for the applicable tax year, whichever occurs first.

For estimated tax purposes, all contributions that earn a credit for the taxable year will apply to the first installment due for that taxable year under the prior year exception. However, estimated tax penalty and interest may still be imposed under certain circumstances when the request for an allocation of credit is made during the period in which an extension of time to file the tax return has been granted.

If you cannot use the full amount of the tax credit in the given year, you may carry forward the amount of unused tax credit for up to 10 years.

Example 1 - A corporate income taxpayer applying for a credit allocation for its taxable year beginning January 1, 2023, and ending December 31, 2023, may submit an application on October 1, 2023, through April 30, 2024. If the return is validly extended, the application may be submitted through October 31, 2024, assuming the annual allocation is not exhausted before the time of application. In this example, the taxpayer must contribute to the Florida Housing Finance Corporation between October 1, 2023, and May 1, 2024, unless the return is validly extended, in which case the contribution must be made by November 1, 2024. If the credit is not fully used on this return, the unused credit can be carried forward up to 10 years.

Example 2 - A corporate income taxpayer applying for a credit allocation for its taxable year beginning January 1, 2024, and ending December 31, 2024, may submit an application on January 1, 2024, through April 30, 2025. If the return is validly extended, the application may be submitted through October 31, 2025, assuming the annual allocation is not exhausted before the time of application. In this example, the taxpayer must contribute to the Florida Housing Finance Corporation between January 1, 2024, and May 1, 2025, unless the return is validly extended, in which case the contribution must be made by November 1, 2025. If the credit is not fully used on this return, the unused credit can be carried forward up to 10 years.

Example 3 - A corporate income taxpayer applying for a credit allocation for its taxable year beginning December 1, 2024, and ending November 30, 2025, may submit an application on January 1, 2024, through March 31, 2026. If the return is validly extended, the application may be submitted through September 30, 2026, assuming the annual allocation is not exhausted before the time of application. In this example, the taxpayer must contribute to the Florida Housing Finance Corporation between December 1, 2024, and April 1, 2026, unless the return is validly extended, in which case the contribution must be made by October 1, 2026. If the credit is not fully used on this return, the unused credit can be carried forward up to 10 years.

References: ss. 220.02, 220.13, 220.1878 and 420.50872, F.S.

One hundred percent of an eligible contribution is allowed as a credit against any tax due for a taxable year after deducting from such tax:

1. Deductions for assessments made pursuant to Section 440.51, Florida Statutes (F.S.) ─ Workers' Compensation Administrative Assessments;
2. Credits for taxes paid under Sections 175.101 and 185.08, F.S. ─ Firefighters' and Police Officers' Pension Trust Funds;
3. Credits for income tax paid under Chapter 220, F.S., and credit allowed under Section 624.509(5), F.S., as such credit is limited by Section 624.509(6), F.S., the 65% limitation; and
4. Credits for the Strong Families Tax Credit under Section 624.51057, F.S.

A copy of the Certificate of Contribution issued by the Florida Housing Finance Corporation must be attached to your tax return when claiming the credit. Credits earned for contributions made for a taxable year decrease the amount that must be paid to meet the prior year exception for installment penalty and interest purposes.

For tax year 2023 only, applications may be submitted beginning October 1, 2023.

Starting with tax year 2024, applications may be submitted beginning on the first business day in January for contributions to be made in tax years that begin in the same calendar year. The Department will accept applications for an allocation of credit against that insurance premium tax year until the allotted credit cap amount is reached or until the day before the due date of the return for the applicable insurance premium tax year, whichever occurs first.

If you cannot use the full amount of the tax credit in the given year, you may carry forward the amount of unused tax credit for up to 10 years.

Example 1 – An insurance premium taxpayer applying for a credit allocation for its 2023 tax year may submit an application between October 1, 2023, and February 28, 2024, assuming the annual allocation is not exhausted before the time of application. In this example, the taxpayer must contribute to the Florida Housing Finance Corporation between October 1, 2023, and March 1, 2024. If the credit is not fully used on the taxpayer’s 2023 insurance premium return, the unused credit can be carried forward up to 10 years.

Example 2 – An insurance premium taxpayer applying for a credit allocation for its 2024 tax year may submit an application between January 1, 2024, and February 28, 2025, assuming the annual allocation is not exhausted before the time of application. In this example, the taxpayer must contribute to the Florida Housing Finance Corporation between January 1, 2024, and March 1, 2025. If the credit is not fully used on the taxpayer’s 2024 insurance premium return, the unused credit can be carried forward up to 10 years.

References: ss. 420.50872, 624.509, 624.51058, F.S.