Free F-1160 - Florida

Application for Corporate Income Tax and Insurance Premium Tax Credit for Contributions to Nonprofit Scholarship Funding Organizations (SFOs)
(Under section 220.187 and 624.51055, Florida Statutes)

F-1160 R. 07/09

Business name ___________________________________________________________________________________________ Federal Employer Identification Number (FEIN) ­

Mailing address __________________________________________________________________________________________ City ___________________________________________ State _____________ ZIP __________________________________ Contact person ___________________________ Contact's telephone number ____________________________________ Amount of planned contribution or previously approved credit you wish to carry forward to this tax year: $ , , .

For taxable year beginning

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and ending

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q Check here if the applicant is an insurance company
Insurance companies must claim the credit against Insurance Premium Tax imposed by section 624.509, F.S. Choose one of the options below. You must complete a separate application for each SFO. Also, a separate application is required for the total carry forward credit(s) that you wish to use for the tax year.

q Contribution to SFO. Enter name as it appears on Florida Department of Education's Internet site:
_____________________________________________________________ OR

q Credit carry forward
Do you give permission and grant authority to the Florida Department of Education to share the corporation's name, address, telephone number, and tax credit amount with the SFO identified in this application? q Yes q No

Type of federal tax return filed (check one) 1120 1120A Other. Enter form number ______________________ If you file a consolidated Florida corporate income tax return, you must provide the parent corporation's name and FEIN. Parent corporation________________________________________________________________________________________ Parent corporation's FEIN ­

I hereby certify that I have examined this application form and the information contained here is, to the best of my knowledge and belief, true, correct, and complete.

________________________________________________ Signature of officer, owner, or partner

______________________ Date

F-1160 R. 07/09

Instructions for Completing Form F-1160
You may apply for this credit using the Department's Internet site. Once you complete the online application you will receive a confirmation number that you can print out. The screen will display the information entered and confirm receipt of the electronic application for credit or credit carry forward. Taxpayers who paid $20,000 or more in corporate income tax or insurance premium tax in the state fiscal year before application must apply online. Taxpayers who paid less than $20,000 in corporate income tax or insurance premium tax in the state fiscal year before application are encouraged to apply online. However, these taxpayers may apply for the credit by completing and mailing Form F-1160 to: Revenue Accounting - CIT/IPT SFO Credit Florida Department of Revenue 5050 W Tennessee St Bldg I Tallahassee FL 32399-0100 The Department will send you written correspondence within 10 working days of receiving your application. We will either approve an amount of tax credit or explain why a credit could not be approved. Who May Apply? Florida corporate income and insurance premium taxpayers may participate in this program to receive credits for contributions to SFOs. One hundred percent is allowed as a credit against the insurance premium tax, but the credit may not exceed 75% of the tax due under section 624.509(1), F.S., after deducting from such tax: 1. Deductions for assessments made pursuant to section 440.51, F.S. (workers compensation administrative assessments), 2. Credits for taxes paid under sections 175.101 and 185.08, F.S. (firefighter's and police officers' pension trust funds), and 3. Credits for income taxes and emergency excise taxes paid under Chapters 220 and 221, F.S., and the salary credit allowed under section 624.509(5), F.S., as these are limited by section 624.509(6), F.S. (the 65 percent limitation).

Program Information

Eligible contributions must be made to and accepted by eligible, nonprofit SFOs or the credit may be disallowed. Contributions must be monetary and must be made to eligible SFOs. The Department of Education establishes the eligibility of the SFOs. A list of SFOs is available from the Department of Education's Internet site at http://www.floridaschoolchoice.org/. Their phone number is 800-447-1636. You must submit a separate application for each SFO you intend to support, and a separate application for the total amount of any carry forward credit(s) you wish to use. Once you receive written confirmation and approval for the credit from the Department, you are expected to make such contribution within the tax year for which the credit was approved. Upon receiving a contribution, an SFO will issue a certificate of contribution to the taxpayer, when requested. This certificate will contain the following information: · · · · · Contributor'sname. Contributor'sFEIN. Amountofcontribution. Dateofcontribution. NameofSFO.

Credit Against Corporate Income Tax

One hundred percent of an eligible contribution is allowed as a credit, but the amount of the credit taken may not exceed seventy-five percent of the tax due after applying any other allowable credits against the tax due. The credit granted must be reduced by the resulting decrease in federal income tax when considering this credit and the overall impact it has on the federal income tax due. The amount taken as a credit for the taxable year must be added back to taxable income. If the credit granted is not fully used in any one year, application may be made to obtain approval to carry forward the unused credit in a subsequent year. An unused credit cannot be carried forward more than 3 years from the year in which it was originally approved. The amount of the credit taken may be less than the amount approved because the exact amount to be taken cannot be determined until the end of the tax year. The credit cannot be conveyed, assigned, or transferred to another entity unless all of the assets of the taxpayer are conveyed, assigned, or transferred in the same transaction.

An officer or authorized representative of the SFO will sign the certificate. You must attach a copy of the certificate(s) of contribution to your tax return when filed. All other requirements of s. 220.187, F.S., and Rule 12C-1.0187, F.A.C., must be met to claim this credit. The letter granting approval to take the credit will indicate the time frame (within the relevant tax year) in which the contribution must be made, and express that the approval is contingent upon an eligible contribution being made and accepted by the SFO. If the SFO listed on the approval letter is unable to accept a contribution or part of a contribution because of its obligations under ss. 220.187 and 624.51055, F.S., and it provides a written statement declining the contribution, the taxpayer may make the contribution or partial contribution to another eligible SFO. The taxpayer should keep the written statement for its records to support the credit claimed. Contributions must be made during the tax year specified in the approval letter.

Credit Against Insurance Premium Tax

Applicants subject to the insurance premium tax contained in section 624.509, Florida Statutes (F.S.), may only claim this credit against their insurance premium tax liability. The provisions of section 220.187, F.S., and Rule 12C-1.0187, Florida Administrative Code (F.A.C.), apply to the credit against insurance premium tax. This includes definitions, the credit application process, the rescindment provisions, the preservation of credit provisions, and the administrative provisions, including the three year credit carryover provision.

F-1160 R. 07/09
Contributions to an SFO are not payments of estimated tax or installment payments of tax. Taxpayers must make installment payments to the Department of Revenue in accordance with s. 220.34, F.S., and Rule 12C-1.034, F.A.C. for corporate income tax and s. 624.5092, F.S. and Rule 12B-8.001, F.A.C. for insurance premium tax. Program Guidelines. The allocation of each year's allotted amount begins on the first business day in January for: · · Contributionsthatwillbemadeintaxyearsbeginninginthe same calendar year (January 1 through December 31). Creditscarriedforwardwhichwillbeusedintaxyears beginning in the same calendar year (January 1 through December 31). Assuming the taxpayer received a deduction of $10,000 and a reduction in taxes paid to Florida of $10,000, the net effect on the federal income tax is zero. Thus, no adjustment to the credit is required because there is no decrease in federal tax as a result of making the contribution and receiving the credit. Example 4 ­ If the taxpayer apportioned its income to Florida and its apportionment factor was 90 percent (90%) the computation would be different. Again, the limitation is determined first as 75 percent (75%) of the tax due prior to application of this credit. This means the taxpayer would first calculate the Florida tax without taking the credit. · · · · · $300,000federaltaxableincometakingintoaccountthe contribution of $10,000 Multipliedby.900000(theapportionmentfactor) Minus$5,000exemption Multipliedby.055taxrate Equals$14,575taxduebeforecreditandcorresponding credit addback.

The Department approves applications on a first-come, firstserved basis. The Department will deny applications received before the first business day in January. We will accept applications until the allotted amount is reached or until the end of the taxpayer's tax year, whichever occurs first. Example 1 ­ A taxpayer applying for a credit for its tax year beginning on January 1, 2009, could submit an application between January 2, 2009 and December 31, 2009, assuming the annual allocation is not exhausted before the time of application. In this example, you must contribute to the SFO between January 1, 2009 and December 31, 2009. Example 2 ­ A taxpayer applying for a credit for its tax year beginning on July 1, 2009, could submit an application between January 2, 2009 and June 30, 2010, assuming the annual allocation is not exhausted before the time of application. In this example, you must contribute to the SFO between July 1, 2009 and June 30, 2010. Additional Examples: - Corporate Income Tax Taxpayer applied for a credit of $10,000 on 01/02/2003 and received approval from the Department of Revenue on 01/09/2003. The taxpayer made the contribution on 01/16/2003 and received a certificate of contribution from the SFO. Taxpayer's federal taxable income for tax year ending 12/31/2003 is $300,000 taking into account an assumed $10,000 deduction for a contribution to an SFO. Assuming the taxpayer is not apportioning their income, they should calculate the available credit as follows: Example 3 ­ The limitation is determined first as 75 percent (75%) of the tax due before application of this credit. This means the taxpayer would first calculate the Florida tax without taking the credit. · · · · Assume$300,000federaltaxableincomethattakesinto account the contribution of $10,000 multiplied by 1.000000 Less$5,000exemption Multipliedby.055taxrate Equals$16,225taxduebeforecreditandcorresponding credit addback.

The taxpayer should then calculate the 75 percent (75%) limit on this amount (.75 X $14,575 = $10,931). Since the contribution is less than the 75 percent (75%) limit, the taxpayer may receive a nonprofit scholarship funding organization credit up to $10,000 (the amount of the contribution). Assuming the taxpayer received a deduction of $10,000 and a reduction in taxes paid to Florida of $10,000, the net effect on the federal income tax is zero. Thus, no adjustment to the credit is required because there is no reduction in federal tax as a result of making the contribution and receiving the credit. Note: The outcome in these examples could be different as a result of other items that impact the calculation of a taxpayer's Florida or federal income tax liability.
Example Eligible Contribution Application Date Approval Date Contribution Date Tax Year Beginning Tax Year Ending Federal Taxable Income Addition for Credit Adjusted Fed. Income Apportionment Fraction Florida portion of AFI Less: Fla. Exemption Florida Net Income Tax Due Credit Total Tax Due Contribution Less: Federal Benefit Less: Florida Benefit Net Cost of Contribution 3. $10,000 01/02/2003 01/09/2003 01/16/2003 01/01/2003 12/31/2003 $300,000 $10,000 $310,000 1.000000 $310,000 $(5,000) $305,000 $16,775 $10,000 $6,775 $10,000 0 $10,000 0 4. $10,000 01/02/2003 01/09/2003 01/16/2003 01/01/2003 12/31/2003 $300,000 $10,000 $310,000 .900000 $279,000 $(5,000) $274,000 $15,070 $10,000 $5,070 $10,000 0 $10,000 0

The taxpayer should then calculate the 75 percent (75%) limit on this amount (.75 X $16,225 = $12,169). Since the contribution is less than the 75 percent (75%) limit, the taxpayer may receive an SFO credit up to $10,000 (the amount of the contribution).