Corporation A's credit is equal to 50 percent of the $20,000 qualified expenditures incurred in the taxable year but may not exceed $3,500 multiplied by the number of miles owned or leased in Florida at the end of its taxable year.
Credit computation: 50% x $20,000 = $10,000 but may not exceed $7,000 ($3,500 x 2 miles of railroad track). Therefore, Corporation A receives a $7,000 credit for qualified railroad reconstruction or replacement expenditures.
The amount of computed credit exceeding the limitation amount ($3,000 = $10,000 - $7,000) cannot be used, carried forward, or transferred.
When it files its Florida Corporate Income/Franchise Tax Return (Form F-1120), Corporation A has $5,000 tax due after application of all credits required to be claimed prior to application of the credit for qualified railroad reconstruction or replacement expenditures. Assuming the Department does not have to make any adjustments to Corporation A's Form F-1120, the Department will issue a letter to Corporation A indicating that the amount of credit available to carry forward or transfer is $2,000 ($7,000 - $5,000).
Fla. Admin. Code Ann. R. 12C-1.01915
Rulemaking Authority 213.06(1), 220.1915(7) FS. Law Implemented 220.02(8), 220.1915 FS.
New 12-3-23.