Emergency Rule Promulgated Establishing Regulations For Florida Tax Credit Scholarship Program Applicable to Certain Corporate and Insurance Premium Taxpayers

With the 2010 Florida Legislature having expanded the Florida Tax Credit Scholarship Program (“Program”) to qualify corporate income tax and insurance premium tax for Program credit, the Florida Department of Revenue (“DOR”) has issued a Notice of Emergency Rule advising of the promulgation of Emergency Rule 12ER11-01, entitled “Florida Tax Credit Scholarship Program.”

Emergency Rule 12ER11-01 establishes the procedures governing the approval of corresponding tax credit allocations and rescindments, the approval for carryforward tax credits to a subsequent tax year and the procedures to be followed by taxpayers when claiming tax credits on tax returns.  It also adopts those applications necessary to apply for an allocation of the credit and to rescind a previously awarded credit allocation.

Specifically, for taxpayers eligible to participate in the Florida Tax Credit Scholarship Program, Emergency Rule 12ER11-01 effects the following:

• Requires eligible taxpayers to file an Application for Tax Credit Contributions to Nonprofit Scholarship Funding Organizations with the DOR to receive a credit allocation from the tax cap authorized by the law for the 2010-2011 state fiscal year;
• Establishes the procedures the DOR will use to notify an applicant of the taxpayer’s credit allocation;
• Provides that a contribution to an eligible nonprofit scholarship funding organization must be made by an eligible taxpayer prior to taking a tax credit on a tax return;
• Establishes procedures for taxpayers to carry forward a tax credit for a period of up to three years when a taxpayer’s tax liability is insufficient to take the full amount of the tax credit;
• Establishes procedures for taxpayers who are unable to use a credit allocation to submit an Application for Rescindment of Tax Credit Allocation to Nonprofit Scholarship Funding Organizations to rescind that credit and when those funds are eligible to other taxpayers for that state fiscal year; and
• Provides how taxpayers may obtain copies of the applications used in the administration of the Florida Tax Credit Scholarship Program.

To access the complete text of Emergency Rule 12ER11-01, click here.

Should you have any questions or comments, please contact Colodny Fass.