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Florida's Enterprise Zone Program – Sales Tax Incentives

Building Materials Used to Rehabilitate Real Property Located in an Enterprise Zone

A business or individual that rehabilitates real property located in an enterprise zone may apply for a refund of sales tax paid on the purchase of building materials. The refund claim must be at least $500 and no more than $5,000, unless the number of full-time, permanent employees who live in an enterprise zone divided by the total number of full-time, permanent employees is 20 percent or greater. If the 20 percent requirement is met, the applicant may receive a refund up to $10,000. The applicant must be the owner, lessee, or lessor of the rehabilitated real property who caused the rehabilitation to take place.

Find out how to claim this refund.

To claim a refund, the applicant must:

  • Complete Forms DR-26S (Application for Refund - Sales and Use Tax) and EZ-M (Florida Enterprise Zone Program - Building Materials Sales Tax Refund Application for Eligibility). You can file Form DR-26S online.
  • Attach all required documentation.
  • Get certification from the enterprise zone coordinator for the zone where the property is located.
  • Submit Form DR-26S, Form EZ-M, and documentation to the Department of Revenue. Refund applications must be submitted to the Department:
    • Within 6 months after the date the local building inspector certifies the rehabilitation project to be substantially complete or
    • By September 1 of the year the improvement is first subject to assessment.

For more information, see section 212.08(5)(g), Florida Statutes, and Rule 12A-1.107, Florida Administrative Code.

Business Property Used in an Enterprise Zone

A business that buys property for use in an enterprise zone may apply for a refund of sales tax paid on the property. To be eligible for a refund, the property must:

  • Qualify under section 38 of the Internal Revenue Code of 1954, as amended.
  • Have a 5-year class life for federal depreciation purposes.
  • Have a minimum sales price of $5,000.

The maximum refund amount is $5,000, unless the number of full-time, permanent employees of the business who live in an enterprise zone divided by the total number of full-time, permanent employees is 20 percent or greater. If the 20 percent requirement is met, the business may receive a refund up to $10,000.

Find out how to claim this refund.

To claim a refund, the business must:

  • Complete Forms DR-26S (Application for Refund - Sales and Use Tax) and EZ-E (Florida Enterprise Zone Program - Business Equipment Sales Tax Refund Application for Eligibility). You can file Form DR-26S online.
  • Attach all required documentation.
  • Get certification from the enterprise zone coordinator for the zone where the property is located.
  • Submit Form DR-26S, Form EZ-E, and documentation to the Department of Revenue. Refund applications must be submitted to the Department within 6 months after the tax is due on the purchase of the property.

For more information, see s. 212.08(5)(h), F.S., and Rule 12A-1.107, F.A.C.

Community Contribution Tax Credit or Refund

A business that donates cash, property, or goods to an approved community-based organization or government agency may apply for a refund of sales tax. The refund is equal to 50 percent of the value of the donation, with a limit of $200,000 per year.

Find out how to claim this refund.

To claim a refund, the business must:

  • Complete Form 8E-17TCA#1 (Application for a Community Contribution Tax Credit). You can get this form from the Department of Economic Opportunity.
  • Attach all required documentation.
  • Get approval from the Department of Economic Opportunity (DEO), Division of Community Development.
  • Complete Form DR-26S (Application for Refund - Sales and Use Tax) and attach a copy of the DEO approval letter and other required documentation. You can file Form DR-26S online.

A business may receive no more than $200,000 in community contribution tax credits yearly. Only one Form DR-26S may be submitted within a 12-month period. If the amount of refund requested exceeds the sales tax remitted by the business in the previous 12 months, the business may claim the balance by filing an additional refund application in each of the next 3 tax years.

Taxpayers who request a refund of sales tax cannot claim the credit against corporate income tax or insurance premium tax.

For more information, see s. 212.08(5)(p), F.S., and Rule 12A-1.107, F.A.C.

Electrical Energy Used in an Enterprise Zone

A business that is located in an enterprise zone may apply for a 50 percent exemption from sales tax for purchases of electrical energy. The business must also be in a county that has an ordinance exempting such businesses from municipal utility taxes.

If the number of full-time, permanent employees of the business who live in an enterprise zone divided by the total number of full-time, permanent employees is 20 percent or greater, the business may receive an exemption of 100 percent of the sales tax for purchases of electrical energy.

Find out how to claim this exemption.

To claim this exemption, the business must:

  • Complete Form DR-15JEZ (Application for the Exemption of Electrical Energy Used in an Enterprise Zone).
  • Attach all required documentation.
  • Get certification from the enterprise zone coordinator for the zone where the business is located.
  • Submit Form DR-15JEZ and documentation to the Department of Revenue. The application must be submitted within 6 months after the business:
    • First occupies a new structure to which electrical service has not been previously provided.
    • Newly occupies an existing remodeled, renovated, or rehabilitated structure to which electrical service has not been provided in the 3 preceding billing periods.
    • Occupies a new, remodeled, rebuilt, renovated, or rehabilitated structure for which an enterprise zone building materials refund has been granted.

For more information, see s. 212.08(15), F.S., and Rule 12A-1.107, F.A.C.

Enterprise Zone Jobs Credit Against Sales Tax

A business located in an enterprise zone may take a credit against sales tax when it hires new employees who:

  • Live in an enterprise zone.
  • Participate in a welfare transition program.

To qualify for the credit, the business must:

  • Show an increase in the number of full-time jobs in the 12 months before the date of the application.
  • Have employed the eligible employees for at least 3 months.
  • Have leased the eligible leased employees for more than 6 months.

Find out how to claim this credit.

To claim the credit, the business must:

  • Complete Form DR-15ZC (Application for Florida Enterprise Zone Jobs Credit for Sales Tax).
  • Attach all required documentation.
  • Get certification from the enterprise zone coordinator for the zone where the business is located.
  • Submit Form DR-15ZC and the required documentation to the Department of Revenue within 6 months of the date a new employee is hired or within 7 months of the date a new leased employee is leased.

The credit may be claimed for up to 24 months.

For more information, see s. 212.096, F.S., and Rule 12A-1.107, F.A.C.