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Florida Introduces Tax Credit for Businesses That Hire Persons with Disabilities by Karen A. Lake, CPA

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Posted on July 09, 2024 by Karen Lake

Florida’s Department of Revenue (DOR) is offering qualifying businesses a tax credit against their state corporate income and franchise in tax years 2024, 2024 and 2026 when they hire qualifying employees with physical or intellectual impairments. The maximum tax credit available to qualifying businesses is $10,000 per year.

Florida’s Individuals with Unique Abilities Tax Credit program provides businesses in the state with a tax credit of $1 for each hour that a qualifying employee works, up to a maximum of 1,000 hours per year. The program defines qualifying employees as individuals who 1) have a physical or intellectual impairment that substantially limits one or more major life activities, 2) have a history or record of such an impairment, or 3) are perceived by others as having such an impairment. Businesses must also employ these individuals for at least six months before qualifying for the credit.

The credit is available on a first-come-first-served basis with annual caps of $5 million for fiscal years 2024-2025, 2025-2026 and 2026-2027. Taxpayers may submit applications for the credit beginning on July 1, 2024, online by visiting the Florida DOR’s website at floridarevenue.com/taxes/SingleTaxCredits or on paper via Form F-111992, Florida Individuals with Unique Abilities Tax Credit Program – Application for Tax Credit. To claim the credit on a Florida Corporate Income/Franchise Tax Return, taxpayers must first receive approval from the DOR.

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, credits and incentives. She can be reached at the firm’s Ft. Lauderdale, Fla., office at (954) 712-7000 or info@bpbcpa.com.