Florida Department of Revenue Seeks Comments on Federal Tax Cuts and Jobs Act Impact

The Florida Department of Revenue (DOR) is asking business leaders for their thoughts and comments regarding the federal Tax Cuts and Jobs Act and its effect on the state corporate income tax.

The Florida Legislature and the Department of Revenue are relying heavily on public comment to identify areas where the state tax base may be expanded and how the Tax Cats and Jobs Act might increase state taxes on businesses.  Changes to how Florida adopts the Internal Revenue Code for state tax purposes are expected to be adopted in the 2019 Legislative Session.

Comments may be submitted by email to: CITReview@floridarevenue.com or by regular mail to: Corporate Income Tax Review, c/o Director of Legislative and Cabinet Services, Department of Revenue, P.O. Box 5906, Tallahassee, Florida 32314-5906. These comments will be posted to DOR’s website.

In addition, DOR will be holding two public workshops to receive public comments on the Tax Cuts and Jobs Act, the first of which will be held August 22, 2018 at 9 AM EST in Tallahassee. Those unable to attend in person can register by webinar here.

For more information, please visit the DOR website.

Find Out How to Qualify for R&D Tax Credit

The Florida Department of Revenue (DOR) will begin collecting applications for the R&D Tax Credit against the Corporate Income Tax for tax year 2015 on Sunday, March 20, 2016. The application will be live online until March 26, 2016 at 11:59 PM. During that time, the amount of credits that will be awarded is $23 million, and if applications exceed the cap, will be awarded on a pro-rata basis.

Prior to applying through DOR, companies must certify through the Department of Economic Opportunity that they are a qualified targeted industry business. For additional information on how to apply, including screenshots of the application and information on how to qualify, DOR has released a “Tax Information Publication.”

R&D Tax Credits for 2016 Tax Year

During the 2016 Legislative Session, the Florida Chamber, along with Representatives Ed Narain (D-Tampa), Jay Fant (R-Jacksonville), Matt Gaetz (R-Shalimar) and Senator Jeff Brandes (R- St. Petersburg), advocated to increase the $9 million cap for a second year in a row. Unfortunately, these efforts were not fruitful. The maximum amount of tax credits awarded during the 2017 application period, for the 2016 tax year, will be $9 million. However, these credits will continue to be awarded on a pro-rata basis if the cap is exceeded.

Get Involved:

Contact Carolyn Johnson and share the great R&D work that you are performing in Florida or how fewer credits awarded in 2017 might impact your business at 850-521-1235 or cjohnson@flchamber.com.

Florida Employers Will See Unemployment Comp Rates Decline

GOOD NEWS…Most employers can expect to see a $30.40 drop per employee in unemployment compensation rates retroactively effective January 1, 2015.  This is a reduction of 64 percent and marks the second year in a row that the state unemployment compensation rates have decreased.

The Florida Chamber of Commerce today learned that the state Department of Revenue will notify employers this month on the new reemployment tax rates for the coming year. While every employer is subject to its own experience-based rate, employers at the minimum rate will see a change from $47.20 per employee last year to $16.80 per employee. That’s a $30.40 decrease per employee for 2015. This decrease in rates further shows that Florida’s unemployment compensation trust fund is healthy, and confirms that Florida is moving in the right direction again through private-sector job creation.

Governor Scott and the Florida Legislature’s focus on private-sector job creation has resulted in more than 715,000 private-sector jobs created since December 2010, putting less of a burden on the overall fund. Florida’s 5.8 percent unemployment rate is down from 11.4 percent in January 2010, and is indicative that Florida families are getting back to work.

 

Get the Facts

Need rate calculation information and fact sheets to understand the factors used to calculate the new rates? Contact Carolyn Johnson at cjohnson@flchamber.com for details, and to learn how the Florida Chamber of Commerce can help your business become more competitive.