Thursday, April 14, 2011

Community Contribution Tax Credit

The Community Contribution Tax Credit Program (CCTCP) encourage Florida corporations to make donations toward community development and low income housing projects.

Florida Corporations that make donations to approved community development projects may receive a tax credit equal to 50 percent of the value of the donation.  Businesses may take the credit on Florida corporate income tax, franchise tax, or insurance premium tax.

Who qualifies as a sponsor?
§  A Sponsor MUST meet one of the following criteria:
o   Community Action Program
o   Community Development/Redevelopment Agency
o   Neighborhood Housing Services Corporation
o   Local Housing Authority
o   Historic Preservation District Agency or Organization
o   Regional Workforce Development Board (formerly Private Industry Council)
o   Direct-Support Organization (DSO)
o   Enterprise Zone Development Agency
o   Non-profit corporation affiliated with economic/community development efforts
o   Unit of Local/State Government
o   School Board

§  Donate to a project to construct, improve, or substantially rehabilitate housing, commercial, industrial, or public facilities, or to promote entrepreneurial or job development opportunities for low-income persons.

§  Donate to an eligible project in an area designated as a Florida Enterprise Zone.  [A project designed to construct or rehabilitate housing for low-income persons does not have to be located in an Enterprise Zone].

Who is eligible?
Any corporation paying Florida corporate income tax, franchise tax or insurance premium tax is eligible to receive a tax credit up to 50 percent of the value of donations to approved community development projects.

What is an eligible contribution?
Cash, property, and goods donated to approved sponsors are eligible for the credit.

How much credit can a business receive?
A business is eligible to receive credits of up to $200,000 per tax year.  Unused credits may be carried over for up to 5 years.

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