The Community Contribution Tax Credit Program (CCTCP) provides a financial incentive (50% tax credit) to encourage Florida businesses to make donations toward community development and housing projects of low-income persons. The tax credit is easy for a business to receive. Corporations located anywhere in Florida that make donations to an approved community development project may receive a tax credit equal to 50% of the value of the donation. Businesses may take the credit on Florida corporate income tax, franchise tax, insurance premium tax, or sales & use tax.
Any Florida Business, which collects and remits Florida state sales tax, is eligible to participate in the program.
- The credit shall be granted as a refund against state sales and use taxes reported on returns and remitted in the last 12 months preceding the date of the application of the tax credit.
- If the tax credit is not fully used through such refund because of insufficient tax payment during the 12-month period, the unused amount can be carried forward for three years.
Habitat for Humanity of Hernando County is an approved Community Contribution Tax Credit Sponsor eligible to receive contributions.
Who Can Contribute?
A business paying Florida corporate income tax, franchise tax, insurance premium tax, or state sales tax is eligible to receive a tax credit equal to 50% of the cash donation of an approved project.
What is an Eligible Contribution?
Cash, property, and goods donated to an approved sponsor is eligible for the credit. Dues and services are not eligible donations.
Can the Tax Credit Program be used to sponsor a Habitat Home?
Yes, because the sponsor is donating improvements (a new home), the value of the donation is calculated based on the appraised value of the new home.
How much credit can a business receive?
- A business is eligible to receive credits of up to $200,000 per tax year.
- Unused corporate tax credits can be carried forward for up to 5 years. Sales tax remittances can be carried forward for 3 years.
Sponsoring a Habitat Home
Who Can Qualify?
- A business paying Florida state income tax, franchise tax, or insurance premium tax
- Any business collecting and remitting $50,000 annually in Florida State Sales & Use Tax
What is required to sponsor a Habitat Home?
- A donation from the business
- 200 hours of volunteer work performed by either the corporation’s employees or volunteers recruited by the business
How does the Tax Credit Program Work?
- The business agrees to sponsor a Habitat home. A letter of intent is signed and workdays are scheduled (Wednesday or Saturday) for employees or volunteer groups solicited by the business. Other groups may also join to help complete the new home.
- Completion of the new home is scheduled over an 8-10 week period. Employee and volunteer groups work side by side with the homeowner to build a new Habitat home. Volunteers complete the ICF block, drywall, windows, painting, landscaping and final touch up for the new home.
Upon substantial completion of the new home:
- The business applies for a tax credit, which is based on 50% of the appraised value of the home, excluding land (estimated at $50,000 for a $100,000 appraisal).
- A tax credit approval letter is returned to the business within 2-3 weeks of presentation of tax credits.
- The business applies for a sales tax refund or reduces estimated taxes on their Florida state corporate income tax return. For a sales tax refund, a check for the credit is returned within 3 to 6 weeks.
What do I need to do to start the Program?
- Habitat works with the business at every step.
- A sponsor Commitment Form documents the agreement
- The volunteer staff works with you to schedule the workdays
- We hold a Partner’s Meeting before construction begins so that you can meet your Homebuyer and your Builder.
- A dedication service is held, with special thanks to the sponsor for their generous donation
- Habitat prepares all paperwork required by the tax credit program
For more information contact our Business Development Director by either calling 352-754-1159 or email: firstname.lastname@example.org