FL – Two-factor method for computing qualified project’s income accepted

The Florida Department of Revenue (department) has issued a technical assistance advisement concurring with a taxpayer’s methodology for calculating income generated by a qualifying capital investment project for purposes of the Florida capital investment tax credit. Generally, a qualified project is eligible for a credit against the corporate income tax imposed provided certain criteria are met. No annual credit may be claimed without a letter from the Department of Economic Opportunity stating that the appropriate annual requirements have been satisfied. In this matter, the taxpayer successfully proposed using a two-factor method to determine the income generated by or arising out of the project. The two equally weighted factors were a jobs-change factor and a property factor. The department accepted the use of the proposed method, provided the facts represented by the taxpayer in its request remained unchanged. Technical Assistance Advisement, No. 21C1-007, Florida Department of Revenue, July 28, 2021, released January 2022