Florida Businesses Can Claim Tax Credits for Student Interns by Karen A. Lake, CPA
Posted on April 19, 2023
by
Karen Lake
For tax years 2022 and 2023, businesses located in Florida may claim an Internship Tax Credit of up to $2,000 per student, per year, for up to five student interns they hire from one of the state’s public universities or colleges. That translates to as much as $10,000 a year in tax credits qualifying businesses may use against corporate income and franchise tax.
To be eligible for a Florida internship tax credit, a corporation 1) must have been operating continuously for at least three years, and 2) it must employ a qualifying student intern for at least 30 hours per week over a minimum of nine consecutive weeks. Additionally, the corporation must demonstrate that 1) 20 percent or more of its full-time employees were previously employed by the business as student interns, or 2) it employed 10 or fewer full-time employees on average for the three immediately preceding taxable years and has previously hired at least one student intern.
The law defines a qualifying student as an individual who 1) completed a minimum of 60 credit hours at a state university or a Florida College System institution, regardless of whether the student intern receives course credit for the internship; 2) is currently enrolled in a career center operated by a school district or a charter technical career center; or 3) is a graduate student enrolled at a state university. Qualifying students also must maintain a minimum grade point average of 2.0 on a 4.0 scale.
The total $2.5 million in credits Florida allocated for each of the program’s two years is available on a first-come-first-serve basis. Businesses that meet all eligible requirements may apply for the credit online via the Florida Department of Revenue.
The Florida Internship Tax Credit Program is a valuable incentive for businesses to hire interns, providing students with practical experience in their chosen fields of study while also providing the businesses with a pipeline of future employees.
About the Author: Karen A. Lake, CPA, is a state and local tax (SALT) specialist and a director of Tax Services with Berkowitz Pollack Brant Advisors + CPAs, where she helps individuals and businesses navigate complex federal, state and local tax laws, and credits and incentives. She can be reached at the CPA firm’s Ft. Lauderdale, Fla., office at (954) 712-7070 or info@bpbcpa.com.
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