Florida Tax Credit Scholarship

Florida Tax Credit Scholarship Overview.

The Florida Tax Credit Scholarship Program empowers taxpayers to actively contribute to eligible nonprofit scholarship-funding organizations.

In return, they receive a dollar-for-dollar credit against various Florida taxes, including;

  • corporate income tax
  • excise tax on liquor
  •  wine, and malt beverages
  • gas and oil production tax
  • insurance premium tax
  • use tax due under a direct pay permit.

The Florida Department of Education plays a crucial role by designating the nonprofit scholarship-funding organizations eligible to receive these contributions through the program.

To find a comprehensive list of eligible nonprofit scholarship-funding organizations, you can visit the Florida Department of Education – School Choice webpage.

For taxpayers interested in participating, the first step is to apply to the Department of Revenue for an allocation of tax credit.

It’s worth noting that applying online is both the quickest and most convenient method.

If you’re mandated to file returns and remit payments electronically, online application is mandatory.

Upon completing and submitting the online application, you will receive a confirmation number to ensure your application’s receipt.

Florida Tax Credit Scholarship

To apply for a Tax Credit Allocation, follow these steps and ensure you have the necessary information:

  1. Visit the Department’s Online Application for Tax Credit Allocation for Contributions to Nonprofit Scholarship Funding Organizations (SFOs).
  2. Complete the online application and receive a confirmation number, which is for your records. Please note that this number solely confirms the receipt of your application by the Department.
  3. Keep in mind that the confirmation number does not grant approval for the credit allocation or authorize credit usage. The Department will send you written correspondence to explain whether your tax credit allocation has been approved or the reasons for disapproval.
  4. Be prepared with the following information:
    • Your federal identification number.
    • The name of the eligible nonprofit scholarship-funding organization you intend to contribute to.
    • The specific contribution amount for the applicable tax.
    • If you file your Florida corporate income/franchise tax return on a consolidated basis, provide the name and federal identification number of the parent company.

To rescind a previously approved Florida Tax Credit Scholarship Program allocation, follow these steps:

Apply to the Department to rescind all or part of the approved credit tax allocation for a contribution to an eligible nonprofit scholarship-funding organization.

Rescinding a tax credit allocation makes unused credits available to other taxpayers seeking an allocation.

Remember to submit a separate application for each previously approved credit allocation.

Prepare the following information:

The confirmation number from your initial allocation application.

Specify the total amount you wish to rescind, broken down by tax type.

Provide your federal identification number.

Mention the name of the eligible nonprofit scholarship-funding organization to which you initially intended to contribute.

If you file your Florida corporate income/franchise tax return on a consolidated basis, include the federal identification number of the parent company.

Expect written correspondence from the Department detailing the approved rescinded amount or the reason for non-approval.

The Department will typically approve the application unless you’ve already claimed the credit amount on a previously filed tax return, or the credit allocation for a specific year is closed.