May 14, 2024

New Florida Tax Law Introduces Tax Holidays, Corporate Incentives, and Extensions

By John Bonk, Partner, National Co-Leader - State & Local Tax

New Florida Tax Law Introduces Tax Holidays, Corporate Incentives, and Extensions State & Local Tax

In a significant overhaul of Florida’s tax code, Florida Governor Ron DeSantis signed into law the comprehensive tax bill H7073 on May 7, 2024. The bill provides timely relief and economic incentives through various tax updates, and here are the critical aspects of the income and sales tax amendments that you should be aware of:

Corporate Income Tax

  • Corporate Income Tax Adjustments: The state has adopted the Internal Revenue Code (IRC) in effect as of January 1, 2024. This adoption is retroactive to January 1, 2024, and will come into force on July 1, 2024.
  • Filing Extensions for Disaster Areas: An automatic state filing extension is provided for any taxable year where federal filing extensions are granted due to a federally declared disaster within Florida. This gives taxpayers an additional 15 days after the federal due date as long as tentative tax payments have been made.
  • Unique Abilities Tax Credit: Corporations can claim a credit of up to $1,000 for each eligible employee with a disability, defined by law, who has worked at least six months within the taxable year. The credit is $1 for each hour worked, up to 1,000 hours, with a statewide cap of $5 million annually for fiscal years 2024-2027.

Sales Tax

  • Sales Tax Extensions in Emergencies: Registered dealers in counties under a state emergency declaration receive a 10-day filing extension for sales tax returns. This applies when a state of emergency is declared five business days before the due date.
  • Sales Tax Holidays: The bill establishes multiple sales tax holidays for 2024, including school supplies (July 29-August 11), “Disaster Preparedness” supplies (June 1-14 and August 24-September 6), a “Freedom Month” (July 1-31), and a “Tool Time” holiday (September 1-7) during which specific items are exempt from sales tax.

Please get in touch with your Marcum tax team if you need more details or assistance understanding how these changes may impact your tax situation.