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                                                                                                                        F-1120N
                                              Instructions for                                                          R. 01/23
                                                                                                           Rule 12C-1.051, F.A.C.
                      Corporate Income/Franchise Tax Return                                                Effective 01/23
                                                                                                           Page 1 of 17
                                              for taxable years beginning
                                              on or after January 1, 2022

What's New?

G Internship Tax Credit                                             Who Must File a Florida Corporate 
A credit is available against Florida corporate income tax for 
employing student interns during taxable years that begin           Income/Franchise Tax Return?
in 2022 and 2023. The credit is $2,000 per student intern 
up to a maximum of five student interns per year. To learn        • All corporations (including tax-exempt organizations) 
                                                                    doing business, earning income, or existing in Florida.
more about this credit, or to submit your application, go to 
floridarevenue.com/taxes/cit and under Tax Incentives             • Every bank and savings association doing business, 
select the Corporate Income Tax Incentives webpage link.            earning income, or existing in Florida.
The Department of Revenue must approve this credit before         • All associations or artificial entities doing business, 
it can be taken. Unused credits may be carried forward up to        earning income, or existing in Florida.
two (2) taxable years.
                                                                  • Foreign (out-of-state) corporations that are partners 
Electronic File and Pay Requirements                                or members in a Florida partnership or joint venture. A 
Effective January 1, 2023, the threshold requiring electronic       “Florida partnership” is a partnership doing business, 
filing of returns and electronic remittance of payments changes     earning income, or existing in Florida.
from $20,000 to $5,000. Taxpayers must file tax returns and       • A limited liability company (LLC) classified as a 
pay amounts due electronically if the tax amount paid in the        corporation for Florida and federal income tax purposes 
State of Florida’s prior fiscal year (July 1 – June 30) is $5,000   is subject to the Florida Income Tax Code and must file a 
or more.                                                            Florida corporate income tax return.
                                                                  • An LLC classified as a partnership for Florida and federal 
Save Time and Paperwork with Electronic Filing                      income tax purposes must file a Florida Partnership 
                                                                    Information Return (Florida Form F-1065) if one or more of 
You can file and pay your Florida corporate income tax return       its owners is a corporation. In addition, the corporate owner 
(Florida Form F-1120) electronically through the Internal           of an LLC classified as a partnership for Florida and federal 
Revenue Service’s (IRS) Modernized e-File (MeF) Program             income tax purposes must file a Florida corporate income 
using electronic transmitters approved by the IRS and the              tax return.
Florida Department of Revenue. The Department also has            • A single member LLC disregarded for Florida and federal 
an online application for corporate income tax payments and         income tax purposes is not required to file a separate 
filing Florida forms F-1120A (Florida Corporate Short Form          Florida corporate income tax return. The income must 
Income Tax Return), F-1120ES (Declaration/Installment of            be reported on the owner’s return if the single member 
Florida Estimated Income/Franchise Tax), and F-7004 (Florida        LLC is owned, directly or indirectly, by a corporation. The 
Tentative Income/Franchise Tax Return and Application for           corporation must file Florida Form F-1120, reporting its own 
Extension of Time to File Return).                                  income and the income of the single member LLC, even 
                                                                    if the only activity of the corporation is ownership of the 
You must file and pay electronically if you paid $5,000 or          single member LLC.
more in corporate income tax during the State of Florida’s 
prior fiscal year (July 1 – June 30). You must also file and 
pay electronically if you were required to file your federal 
income tax return electronically.                                         What’s Inside
We encourage you to enroll for eServices. When you enroll in 
our eServices program you will receive a user ID and password.    u Who Must File .................................. p. 1
Advantages to enrolling are:
   •  your bank account and contact information are saved         u When to File and Pay ...................... p. 2
   •  the ability to view your filing history                     u Estimated Tax .................................. p. 3
   •  the ability to reprint your returns
   •  the ability to view bills posted to your account            u Special Instructions ........................ p. 4
If you change your business name, location or mailing             u Line-by-Line Instructions  .............. p. 5
address, or close or sell your business, immediately 
notify the Department. The quickest way to notify us is           u Contact Us .......................................p. 17
online. Go to floridarevenue.com/taxes/updateaccount.

                                              floridarevenue.com



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                                                                                                                          F-1120N
                                                                                                                          R. 01/23
                                                                                                                          Page 2 of 17

• Homeowner and condominium associations that file                   (1) For tax years ending June 30, the due date is on or before 
  federal Form 1120 (U.S. Corporation Income Tax Return)             the first day of the fourth month following the close of the tax 
  must file Florida Form F-1120 or F-1120A regardless of             year. For all other tax year endings, the due date is on or before 
  whether any tax may be due. If you file federal Form 1120-H        the first day of the fifth month following the close of the tax year. 
  (U.S. Income Tax Return for Homeowners Associations), you          For example, for a taxpayer with a tax year that ends
  are not required to file a Florida return.                         December 31, 2022, the Florida Form F-1120 is due on or 
                                                                     before May 1, 2023;  or
• Political organizations that file federal Form 1120-POL.
                                                                     (2) The 15th day following the due date, without extension, for 
• S corporations that pay federal income tax on Line 22c of          the filing of the related federal return for the taxable year. For 
  federal Form 1120S.                                                example, if the federal return is due on May 15, the related 
• Tax-exempt organizations that have “unrelated trade or             Florida Form F-1120 is due on June 1.
  business taxable income” for federal income tax purposes are       You must file a return, even if no tax is due.
  subject to Florida corporate income tax and must file either 
  Florida Form F-1120 or F-1120A.                                    If the due date falls on a Saturday, Sunday, or federal or state 
                                                                     holiday, the return is considered to be filed on time if postmarked 
                                                                     on the next business day. For a calendar of filing due dates for 
Who is Eligible to File Florida Form F-1120A?                        Florida corporate income tax returns, go to 
Corporations or other entities subject to Florida corporate          floridarevenue.com/taxes/cit/duedates.
income tax must file Florida Form F-1120 unless qualified to file 
Florida Corporate Short Form Income Tax Return, Florida Form         If you electronically pay, you must initiate electronic payments 
F-1120A.                                                             and receive a confirmation number no later than 5 p.m. ET 
                                                                     on the business day prior to the due date to avoid penalty 
A corporation qualifies to file Florida Form F-1120A if it meets     and interest. See the Florida eServices Calendar of Electronic 
ALL the following criteria:                                          Payment Deadlines (DR-659) at floridarevenue.com/forms in 
•  It has Florida net income of $45,000 or less.                     the eServices section for due dates. 
•  It conducts 100% of its business in Florida.
•  It does not report any additions to and/or subtractions from      Note: A late-filed return will subject a corporation to penalty, 
  federal taxable income other than a net operating loss             whether or not tax is due.
  deduction and/or state income taxes, if any.
•  It is not included in a Florida or federal consolidated corporate 
  income tax return.                                                 Extension of Time to File
                                                                     To apply for an extension of time for filing Florida Form F-1120, 
•  It claims no tax credits other than tentative tax payments or 
                                                                     you must complete Florida Form F-7004, Florida Tentative 
  estimated tax payments.
                                                                     Income/Franchise Tax Return and Application for Extension 
                                                                     of Time to File Return. To obtain Florida Form F-7004, see 
Electronic Filing                                                    "Contact Us" on page 17.
You are able to file and pay your Florida corporate income tax 
return (Florida Form F-1120) electronically through the IRS          You can file Florida Form F-7004 electronically through the IRS 
MeF Program. You must file and pay electronically if you paid        MeF Program or online. Go to the Department’s website for 
$5,000 or more in tax during the State of Florida’s prior fiscal     more information.
year (July 1 – June 30). The Department also has an online           You must file Florida Form F-7004 to extend your time to 
application for corporate income tax payments and filing Florida     file. A copy of your federal extension alone will not extend 
forms F-1120A, F-1120ES, Declaration/Installment of Florida          the time for filing your Florida return. See Rule 12C-1.0222, 
Estimated Income/Franchise Tax, and F-7004, Florida Tentative        Florida Administrative Code (F.A.C.), for information on the 
Income/Franchise Tax Return and Application for Extension of         requirements that must be met for your request for an extension 
Time to File Return. Go to the Department’s website for more         of time to be valid.
information.
                                                                     You must file Florida Form F-7004 and pay all the tax due 
Using Software to Prepare Your Return                                (tentative tax) on or before the original due date of Florida Form 
If you use commercial software to prepare and file your paper        F-1120. An extension of time will be void if:
return:                                                              1)  Your tentative tax due is not paid.
•  The Florida Department of Revenue must approve all vendor         2)  You underpay your tax by the greater of $2,000 or 30% of the 
  software that develops paper tax forms. Ask the vendor for         tax shown on Florida Form F-1120 when filed.
  proof that you are using approved software.                        Extensions are valid for six months, with the exception of 
•  Make sure that the software is for the correct year. You          extensions for taxpayers with a June 30 tax year end, which 
  cannot use 2021 software to produce 2022 tax forms.                are valid for seven months. Only one extension may be 
Visit floridarevenue.com/taxes/eservices and select “Software        granted per tax year.
Vendors for eFiling” to obtain a list of approved software 
vendors.
                                                                     Payment of Tax
                                                                     You must pay the amount of tax due, as shown on Line 17 of 
            When to File and Pay                                     the return, and either file your return or extension of time by the 
                                                                     original due date. Make payments in U.S. funds. Penalties and 
                                                                     interest apply to late payments.
When is Florida Form F-1120 Due?
Generally, Florida Form F-1120 is due the later of:



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                                                                                                                                F-1120N
                                                                                                                                R. 01/23
                                                                                                                          Page 3 of 17

Using Payment Credits                                                  Required Attachments
When a corporation makes payment using payment credits from            Attach a copy of the actual federal income tax return filed with 
a different Federal Employer Identification Number (FEIN), the         the IRS.
following documentation is required:
•  Written authorization, including an original signature of a         You must also attach copies of federal Forms 4562, 851 (or 
corporate officer, from the corporation or entity that made the        Florida Form F-851), 1122, 1125-A, Schedule D, Schedule M-3, 
payment.                                                               and any supporting details for Schedules M-1 and M-2. Attach 
•  The FEIN and complete names of the corporations or entities         other supporting schedules if requested in these instructions.
involved.                                                              Do not detach the coupon located at the bottom of the first 
•  The applied period (taxable year-end) for the payment credits       page of your Florida Form F-1120 or your account may not 
you are requesting to transfer.                                        be properly credited.
•  The type of credit and the amount of payment credit you are 
requesting to transfer.                                                You may use additional sheets if the lines on Florida Form 
                                                                       F-1120 or on any schedules are not sufficient. The additional 
                                                                       sheets must contain all the required information and follow the 
Where to Send Payments and Returns                                     format of the schedules on the return. Enter the taxpayer’s name 
Make checks payable to and send with your return to:                   and FEIN on all sheets exactly as they appear on the front page 
     Florida Department of Revenue                                     of Florida Form F-1120.
     5050 W Tennessee St                                               Taxable Year and Accounting Methods
     Tallahassee FL 32399-0135                                         The taxable year and method of accounting must be the same 
If you are requesting a refund (Line 19), send your return to:         for Florida income tax as it is for federal income tax. If you 
                                                                       change your taxable year or your method of accounting for 
     Florida Department of Revenue                                     federal income tax, you must also change the taxable year or 
     PO Box 6440                                                       method of accounting for Florida income tax.
     Tallahassee FL 32314-6440
                                                                       Rounding Off to Whole-Dollar Amounts
                                                                       Whole-dollar amounts may be entered on the return and 
Penalties                                                              accompanying schedules. To round off dollar amounts, drop 
Late-Filed Return – The penalty for a return filed late is 10% per     amounts less than 50 cents to the next lowest dollar and 
month, or fraction thereof, not to exceed 50% of the tax due with      increase amounts from 50 cents to 99 cents to the next highest 
the return. If no tax is due and you file late, the penalty is $50 per dollar. If you use this method on the federal return, you must use 
month or fraction thereof, not to exceed $300.                         it on the Florida return.
Underpayment of Tentative Tax – The penalty for underpayment           Federal Employer Identification Number
of tentative tax is 12% per year during the extension period on        If you do not have an FEIN, obtain one from the Internal 
the underpaid amount. You must calculate the penalty from the          Revenue Service. You can:
original due date of the return.                                       •  Apply online at irs.gov
Underpayment of Estimated Tax – The penalty for underpayment           •  Apply by mail with IRS Form SS-4. To obtain this form, 
of estimated tax is 12% per year. If you underpay your estimated       download or order it from irs.gov or call 800-829-3676.
tax, complete Florida Form F-2220, Underpayment of Estimated 
Tax on Florida Corporate Income/Franchise Tax, and attach it to        To Amend a Return
Florida Form F-1120 (see Line 14 instructions).                        You must complete a Florida Form F-1120X, Amended Florida 
                                                                       Corporate Income/Franchise Tax Return, to amend your Florida 
Incomplete Return – For an incomplete return, the penalty is           corporate income tax return if:
the greater of $300 or 10% of the tax finally determined to be         •  You file an amended federal return.
due, not to exceed $10,000. An incomplete return is one that we        •  A redetermination of federal income is made (for example, 
cannot readily handle, verify, or review.                              through an audit adjustment), and the adjustments would 
Fraudulent Return – The penalty for filing a false or fraudulent       affect net income subject to the Florida corporate income/
return is 100% of the deficiency.                                      franchise tax.
Electronic Filing – The penalty is 5% of the tax due for each          Go to floridarevenue.com/forms in the Corporate Income Tax 
month the return is not filed electronically. The penalty cannot       section for Florida Form F-1120X with instructions.
exceed $250 in total. If no tax is due, the penalty is $10.
                                                                       Estimated Tax (Florida Form F-1120ES)
Interest
A floating rate of interest applies to underpayments, late payments,   Who Must Make Estimated Tax Payments?
and overpayments of corporate income tax. The floating interest        If you expect the amount of your income tax liability for the 
rate is updated on January 1 and July 1 of each year by using the      year to be more than $2,500, you must make a declaration 
formula established in s. 220.807, F.S. For information on current     of estimated tax for the taxable year. Use Florida Form 
and prior period interest rates, visit floridarevenue.com/taxes/       F-1120ES, Declaration/Installment of Florida Estimated 
rates.                                                                 Income/Franchise Tax to declare and pay estimated tax. To 
                                                                       determine if a declaration and payment of estimated tax is 
                                                                       required, complete the Estimated Tax Worksheet on page 6 of 
                                                                       the Florida Form F-1120.



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                                                                                                                                  F-1120N
                                                                                                                                  R. 01/23
                                                                                                                       Page 4 of 17

Due Dates for Declaration and Payment                                 The filing of a Florida consolidated tax return for any taxable 
Make your estimated tax payments in four equal installments.          year requires the filing of a consolidated return for all subsequent 
For calendar year filers payments are due on May 31, June 30,         years, including subsequent additions to the group, even if 
September 30, and December 31. To obtain Florida Form                 the parent subsequently is not subject to Florida tax. For more 
F-1120ES, visit floridarevenue.com/forms in the Corporate             information, see section (s.) 220.131, Florida Statutes (F.S.), and 
Income Tax section. The Department does not send reminder             Rule 12C-1.0131, F.A.C.
notices for estimated tax installments. Do not annualize 
your payments. For a calendar of filing due dates for Florida         Florida Net Operating Loss Carryover Deduction 
corporate income tax returns, go to the Department’s website at 
floridarevenue.com/taxes/cit/duedates.                                (NOLD)
                                                                      You may not carry back a Florida net operating loss as a 
To pay estimated tax, go to floridarevenue.com/taxes/filepay          deduction to a prior taxable year. A net operating loss must 
and select corporate tax. If filing and/or paying electronically, see be carried over to subsequent taxable years and treated in 
the Florida eServices Calendar of Electronic Payment Deadlines        the same manner, to the same extent, and for the same time 
(Form DR-659).                                                        periods prescribed in s. 172, Internal Revenue Code (IRC). The 
                                                                      Florida carryover to future tax years is limited to the amount 
Short Taxable Years                                                   of the federal net operating loss multiplied by the Florida 
You must file a separate declaration (Florida Form F-1120ES)          apportionment fraction. However, adjustments such as those 
when a return is required for a period of less than 12 months,        listed in s. 220.13(1)(e), F.S., may increase the amount of the 
unless the short period is less than four months or the               Florida carryover. See Rule 12C-1.013(15), F.A.C.
requirement is first met after the first day of the last month in 
the short taxable year. When determining if you must file a           Note: If you have other Florida carryover deductions, apply them 
declaration of estimated tax for a short taxable year that results    first before applying your Florida NOLD. 
from a change in annual accounting period, you must annualize         When claiming your Florida NOLD, the following limitations also 
your net income for the short period. Multiply the short year’s       apply.
income by 12 and divide the result by the number of months in 
the short period. If the tax due based on this income is greater      • Florida net operating losses generated in taxable years 
than $2,500, a declaration is required.                                 beginning before January 1, 2018, are carried forward up to 
                                                                        20 taxable years. 
Amended Declaration (Florida Form F-1120ES)                           • Florida net operating losses generated in taxable years 
You must base your declaration of estimated tax upon a                  beginning after December 31, 2017, are carried forward 
reasonable projection of tax liability. Circumstances may develop       indefinitely until used and never expire.
during the year that warrant a revision of the original estimated     • For taxable years beginning before January 1, 2021, a Florida 
tax. If the revised estimate differs materially from the original       net operating loss deduction may be taken against 100% of 
estimate, file an amended declaration on or before the next             Florida tentative apportioned adjusted federal income.
installment due date.                                                 • For taxable years beginning after December 31, 2020, 
Underpayments of Estimated Tax                                          a Florida net operating loss deduction may be taken as 
If you underpay estimated tax, penalty and interest apply (see          follows:
“Penalties” and “Interest” and the instructions for Line 14 on          -   First, any carryover(s) generated in a taxable year 
page 6).                                                                    beginning before January 1, 2018, is applied against 
                                                                            100% of Florida tentative apportioned adjusted federal 
                                                                            income;
                Special Instructions                                    -   Then, any carryover(s) generated in a taxable year 
                                                                            beginning after December 31, 2017, is applied against 
Consolidated Returns                                                        80% of the remaining Florida tentative adjusted federal 
The privilege of electing to file a Florida consolidated income             income.
tax return is limited to an affiliated group where the parent 
corporation is subject to the Florida Income Tax Code and:            To support a Florida NOLD, attach a schedule showing the 
                                                                      following information, as applicable:
1.  The affiliated group must have filed a consolidated return for    •  Tax Year
federal income tax purposes.                                          •  Adjusted Federal Loss
                                                                      •  Apportionment Fraction for the Year of Loss
2.  The affiliated group electing to file a Florida consolidated      •  Florida Apportioned Income/Loss
return must be identical to the affiliated group filing the           •  Net Operating Loss Carryover (NOLCO) Applied
federal consolidated return.                                          •  Florida Portion of Adjusted Federal Income
3.  In the initial year of election, you must complete Florida        •  Net Operating Loss Carry Forward to Next Year
Form F-1122, Authorization and Consent of Subsidiary                  See Examples of Florida Net Operating Loss Carry Forward 
Corporation to be Included in a Consolidated Income Tax               Schedules on page 16.
Return for each affiliated member. Attach the form to the 
Florida consolidated return.                                          Include the Florida net operating loss carryover deduction 
                                                                      available on either Schedule II or IV.
4.  In subsequent years, a completed Florida Form F-1122 must 
be attached for each new member of the affiliated group.              If you conduct all of your business in Florida, you must enter 
                                                                      the Florida net operating loss carryover deduction available on 
5.  A copy of federal Form 851 or Florida Form F-851 (Corporate       Schedule II, Line 3.
Income/Franchise Tax Affiliations Schedule) must be 
attached.                                                             If you are doing business outside Florida, you must enter 
                                                                      zero (0) on Schedule II, Line 3, and the amount of the NOLD on 
6.  You must make the election by the due date of the return,         Schedule IV, Line 4.
including properly filed extensions.



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                                                                                                                              F-1120N
                                                                                                                              R. 01/23
                                                                                                                           Page 5 of 17

Florida Net Capital Loss Carryover Deduction                          Line 1 - Federal Taxable Income
You may not carry back a Florida net capital loss as a deduction      Generally, corporations should enter the amount shown on 
to a prior taxable year. A net capital loss must be carried over      Line 30 of federal Form 1120 or the corresponding line (taxable 
to subsequent tax years and treated in the same manner, to the        income) of the related federal income tax return.
same extent, and for the same periods prescribed in s. 1212, IRC.     If a corporation is a member of an affiliated group that filed 
The Florida subtraction for net capital loss carryovers is limited to a consolidated federal tax return, but the corporation is filing 
the portion of the carry forward apportioned to Florida using the     a separate return for Florida, the amount shown on Line 1 of 
apportionment fraction for the year in which the loss occurred.       the Florida Form F-1120 should be its federal taxable income 
                                                                      computed as if it had filed a separate federal income tax return. 
To support a deduction, you must attach a schedule showing            Attach to Florida Form F-1120:
how you computed the deduction:                                       •  A copy of the related federal consolidated return that was filed.
•  Year(s) of loss,                                                   •  A statement reconciling the amount reported on Line 1 with 
•  Apportionment fraction for the taxable year in which the loss      the taxable income shown on Line 30 of the related federal 
occurred, and                                                         consolidated return.
•  Amount of the carryover(s) previously deducted.                    •  Attach a pro forma federal return, which is a federal return as 
If you conduct all of your business in Florida, you must enter the    if the consolidated subsidiary filing separately in Florida had 
Florida net capital loss carryover on Schedule II, Line 4.            also filed a separate federal return.
If you are doing business outside Florida, you must enter zero        Note: The interest limitation under s.163(j), IRC, is computed at 
(0) on Schedule II, Line 4, and the Florida portion of net capital    the filer level. Florida did not follow the CARES Act’s temporary 
loss carryover on Schedule IV, Line 5.                                increase in the interest limitation from 30% to 50% of federal 
                                                                      adjusted taxable income for taxable years beginning on or after 
                                                                      January 1, 2019, and before January 1, 2021. Any addition(s) 
Florida Excess Contribution Carryover                                 required on Florida returns for taxable years 2019-2020 
Deductions                                                            because of this decoupling is treated as a disallowed business 
The excess contribution deductions may not create or increase         interest expense carryforward from prior years for purposes of 
a net operating loss for Florida. The Florida excess contribution     computing the subsequent year’s business interest expense.
deduction is the lesser of:
•  the federal excess contribution limitation apportioned to          When you file a Florida consolidated return, the amount that you 
Florida in the current year or                                        should enter is the:
•  the Florida excess contribution carryover.                         •  Consolidated federal taxable income from Line 30 of federal 
                                                                      Form 1120, or
                                                                      •  Corresponding line (taxable income) of the federal income tax 
To support a deduction, you must attach a schedule showing            return filed.
how you computed the deduction:
•  Year(s) of federal excess contributions,                           Generally, the Florida consolidated group must be identical to 
•  Actual contributions made,                                         the federal consolidated group. Also see Consolidated Returns 
•  Federal contribution limitation,                                   Instructions (page 4).
•  Amount of excess contributions,                                    S corporations should enter only the amount of income subject 
•  Florida apportionment fraction for the taxable year(s),            to federal income tax at the corporate level.
•  Apportioned excess contribution to be carried over, and
•  Amount of the carryover(s) previously deducted.                    Line 2 - State Income Taxes Deducted in Computing Federal 
                                                                      Taxable Income
Any unused federal limitation must be apportioned as well.            Enter the total amount of state income taxes deducted on the 
If you conduct all of your business in Florida, you must enter the    federal return in the computation of federal taxable income. 
Florida excess charitable contribution carryover on Schedule II,      Include the amount deducted for income taxes paid to the 
Line 5, and the Florida employee benefit plan contribution            District of Columbia and all states, including Florida. Do not 
carryover on Schedule II, Line 6.                                     include taxes based on gross receipts, or income taxes paid to 
                                                                      cities or counties.
If you are doing business outside Florida, you must enter zero (0) 
on Schedule II, Lines 5 and 6. You must enter the Florida portion     Note:  You must attach a list to Florida Form F-1120 identifying 
of your excess charitable contribution carryover on Schedule IV,      the amount of tax and the state to which it was paid.
Line 6, and the Florida portion of your excess employee benefit       Line 3 - Additions to Federal Taxable Income
plan contribution carryover on Schedule IV, Line 7.                   Enter the total amount of additions or adjustments to federal 
                                                                      taxable income shown on Schedule I, Line 25.
                                                                      Line 4 - Total of Lines 1, 2, and 3.
Line-by-Line Instructions for
Completing Florida Form F-1120                                        Line 5 - Subtractions from Federal Taxable Income
                                                                      Enter the total amount of subtractions from federal taxable 
Instructions are numbered to correspond with the appropriate          income shown on Schedule II, Line 13.
schedule and line numbers.
                                                                      Line 6 - Adjusted Federal Income
Computation of Florida Net Income Tax                                 Subtract Line 5 from Line 4 and enter the difference.
Chapter 220, F.S., provides that corporations and other entities 
base Florida net income on federal taxable income with certain        Line 7 - Florida Portion of Adjusted Federal Income 
modifications. Such modifications include Florida additions and       If the taxpayer’s business is entirely within Florida, enter the 
subtractions, apportionment, and the Florida exemption.               amount reported on Line 6 on this line.



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                                                                                                                            F-1120N
                                                                                                                            R. 01/23
                                                                                                                        Page 6 of 17

If the taxpayer is doing business outside Florida, complete          Line 16 - Payment Credits 
Schedules III and IV and enter the adjusted federal income           On Line 16(a), enter the total estimated tax payments, if any, 
amount from Schedule IV, Line 9.                                     made for the taxable year, plus any carryovers from previous 
                                                                     years or corporate income tax credit memos issued by the 
Line 8 - Nonbusiness Income Allocated to Florida                     Department. If you filed Florida Form F-7004, enter the tentative 
If the taxpayer’s business is entirely within Florida, enter         tax paid on Line 16(b). Add the estimated tax payments and the 
zero (0). If the taxpayer is doing business outside Florida, see     tentative tax paid (Line 16(a) plus Line 16(b)). Enter that sum 
the instructions for Schedule R.                                     on Line 16. Attach a schedule of payments showing the 
Line 9 - Florida Exemption                                           amounts paid and dates of each payment.
Section 220.14, F.S., exempts up to $50,000 of Florida net           Line 17 - Total Amount Due
income. The amount of the exemption is the lesser of $50,000 or      Subtract the amount on Line 16 from Line 15 and enter the 
the Florida portion of adjusted federal income plus nonbusiness      amount due. Also, enter the amount due in the space provided at 
income allocated to Florida (Line 7 plus Line 8). If the sum of      the bottom of the front page of Florida Form F-1120. Make your 
Line 7 plus Line 8 is zero or less, enter zero (0).                  check payable to the Florida Department of Revenue. If tax was 
Florida allows only one $50,000 exemption to the members of          overpaid, please refer to the instructions for Lines 18 and 19.
a controlled group of corporations as defined in s.1563, IRC. If     Line 18 - Credit
you file a consolidated return, the amount of exemption taken on     Enter the amount of overpayment you want applied to the
Line 9 is limited to the lesser of $50,000 or the Florida portion of following taxable year as an estimated tax payment. You may
adjusted income plus nonbusiness income allocated to Florida         apply any portion of an overpayment as an estimated tax
(Line 7 plus Line 8). If members of the controlled group file        payment. Also, enter this amount in the space provided at the 
separate returns, follow the instructions for Question G-1.          bottom of the front page of Florida Form F-1120.
If the taxable year is less than 12 months, the $50,000              Note:  The election to apply an overpayment to the next year’s 
exemption must be prorated. Multiply $50,000 by the number of        estimated tax is irrevocable. For more information, see Rule 
days in the short tax year divided by 365.                           12C-1.034(8), F.A.C., titled Special Rules Relating to Estimated Tax.
Line 10 - Florida Net Income                                         Line 19 - Refund
Subtract Line 9 from the sum of Lines 7 and 8 and enter the          Enter the amount of overpayment you want refunded on Line 19. 
difference. If the result is a loss, enter zero (0).                 You may request a refund of any portion of an overpayment. 
Line 11 - Tax Due                                                    Also, enter this amount in the space provided at the bottom 
Multiply the amount on Line 10 by the tax rate.                      of the front page of Florida Form F-1120. If Line 19 is left 
                                                                     blank, we will credit the entire overpayment to next year’s 
Line 12 - Credits Against the Tax                                    estimated tax. Sub S corporations must include the Notice of 
Enter the total credits against the tax from Schedule V, Line 21.    Acceptance as an S corporation from the IRS if the document 
Credits against the tax cannot exceed the amount of tax due on       has not been sent to the Department.
Line 11 and cannot create a refund.
Line 13 - Total Corporate Income/Franchise Tax Due                   Signature and Verification
Subtract Line 12 from Line 11.                                       An officer or person authorized to sign for the entity must sign all 
Line 14 - Penalty and Interest                                       original signature is required. We will not accept a 
                                                                     returns. An 
If you have underpaid estimated tax, you may compute penalty         photocopy, facsimile, or stamp. A receiver, trustee, assignee, or 
and interest using Florida Form F-2220 and enter the amounts         other fiduciary must sign any return filed on behalf of the entity.
on Lines 14(a) and 14(c). To obtain Florida Form F-2220, go to       Any person, firm, or corporation who prepares a return for 
floridarevenue.com/forms in the Corporate Income Tax section.        compensation must also sign the return and provide:
                                                                     •  Federal employer identification number (FEIN).
Penalty and interest on an underpayment of estimated tax are         •  Preparer tax identification number (PTIN).
computed from the installment due date until the earlier of the 
payment date or due date for filing the annual tax return, without 
regard to any extension of time. No penalty or interest will apply   Questions A through L
if the cumulative amount paid or credited for each installment       All taxpayers must answer questions A through L.
equals or exceeds the cumulative amount due if the installments 
were based on:                                                       Question A - Enter the state in which you are incorporated.
•  At least 90% of the tax finally shown to be due for the taxable   Question B - Enter the Florida document number received 
year; or                                                             from the Florida Secretary of State. For information, contact the 
•  The tax computed using the prior year facts and income and        Department of State, Corporate Information at 850-245-6052 or 
current year rates.                                                  visit the website at sunbiz.org.
Note: The installment amounts that must be paid to meet the          Question C - Check the appropriate box to indicate if you are 
prior year exception are decreased by the amount of the Florida      filing a Florida consolidated return.
Tax Credit Scholarship Program credit earned with contributions 
made for the current tax year.                                       Question D - Check the “Initial return” box if the return is the 
                                                                     initial Florida return filed. Check “Final return” only if you have 
Enter any other penalty or interest due on Lines 14(b) and 14(d)     filed a final federal return. When a C Corporation elects to 
respectively. See also “Penalties” and “Interest” on page 3.         become an S corporation, the final C return is not considered 
Line 15 - Total of Lines 13 and 14.                                  to be a final tax return for the corporation. A return for a foreign 
                                                                     (out-of-state) corporation that has ceased doing business in 
                                                                     Florida is not a final return.



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Question E - Enter the Principal Business Activity Code that       Line 6 - Employee Benefit Plan Contribution Carryover
pertains to Florida business activities. If the Principal Business Enter the total amount of excess employee benefit plan 
Activity Code is unknown, see the “Principal Business Activity     deductions determined under s. 404(a)(1)(E), IRC, (excess 
Codes” section of the IRS Instructions for Form 1120.              contributions to qualified pension plans) and
                                                                   s. 404(a)(3)(A)(ii), IRC, (excess contributions to qualified stock 
Question F - Check the appropriate box to indicate if you have     bonus or profit-sharing plans), carried forward and deducted in 
filed a Florida extension of time (Florida Form F-7004). Attach a  computing federal taxable income for the taxable year.
copy of Florida Form F-7004, if timely filed.
                                                                   Line 7 - Enterprise Zone Jobs Credit
Question G-1 - Florida allows only one $50,000 exemption to        Enter the amount from Line 3 of Schedule V. This will be the 
a controlled group of corporations as defined in s.1563, IRC. If   amount of enterprise zone jobs credit on Florida Form F-1156Z 
the taxpayer is a member of a controlled group, attach a list of   for the taxable year.
the members. Include FEIN, address, and apportioned amount 
of the $50,000 exemption for each corporation. If the controlled   Line 8 - Ad Valorem Taxes Allowable as an Enterprise Zone 
group is a parent-subsidiary group, please indicate the parent     Property Tax Credit
corporation on your attached list. Attaching the list shows        Enter the amount from Line 5 of Schedule V. This will be the 
consent to an unequal apportionment of the Florida exemption.      portion of the ad valorem taxes paid or incurred for the taxable 
                                                                   year that is allowable as an enterprise zone property tax credit 
Question G-2 - Check the appropriate box to indicate if you are    on Florida Form F-1158Z.
part of a federal consolidated return. Enter the name and FEIN 
from your federal consolidated return.                             Line 9 - Guaranty Association Assessment(s) Credit
                                                                   Enter the amount from Line 1 of Schedule V, Florida Health 
Question G-3 - Check the appropriate box to indicate if the        Maintenance Organization Consumer Assistance Assessment 
federal common parent has sales, property, or payroll in Florida.  Credit, and any Florida Life and Health Insurance Guaranty 
Question H - Enter the address where the corporate books and       Association (FLAHIGA) Assessment Credit included on 
records are located.                                               Schedule V, Line 18.
Question I - Check the appropriate box to indicate if you are a    Line 10 - Rural and/or Urban High-Crime Area Job Tax Credits
member of a partnership or joint venture that does business in     Enter the total of the amounts from Lines 6 and 7 of Schedule V. 
Florida.                                                           This is the amount taken as rural and/or urban high-crime area job 
                                                                   tax credits for the taxable year. 
Question J - Provide the date of your latest IRS audit and list 
the years examined.                                                Line 11 - State Housing Tax Credit
                                                                   Enter the amount from Line 11 of Schedule V. This is the 
Question K - Provide the name, a telephone number, and email       amount taken as the state housing tax credit for the taxable 
address of the person to contact regarding this return.            year.
Question L - Indicate the form number of the return filed with     Line 12 - Florida Tax Credit Scholarship Program Credit
the IRS.                                                           (contributions to nonprofit scholarship-funding organizations 
                                                                   tax credit)
Schedule I – Additions and/or Adjustments to                       Enter the amount from Line 12 of Schedule V. This is the 
                                                                   amount taken as a credit for the Florida Tax Credit Scholarship 
Federal Taxable Income                                             Program. However, if the credit taken has previously been 
Line 1 - Interest Excluded from Federal Taxable Income             added to taxable income in a prior taxable year, and is taken 
Enter the amount of interest excluded from taxable income          as a deduction for federal tax purposes in the current taxable 
under s.103(a), IRC, or any other federal law, less the            year, the amount of the deduction allowed shall not be added to 
associated expenses disallowed in the computation of taxable       taxable income in the current year. This exception is intended to 
income under s. 265, IRC, or any other law. These items will be    ensure that the credit is added in the applicable taxable year and 
included in Schedule M-1 of the federal return.                    does not result in a duplicate addition in a subsequent year.
Line 2 - Undistributed Net Long-Term Capital Gains                 Line 13 - New Worlds Reading Initiative Credit 
If you are a regulated investment company (RIC) or a real estate   Enter the amount from Line 13 of Schedule V. This is the amount 
investment trust (REIT), enter the undistributed net capital gain  taken for the new worlds reading initiative credit for the taxable year.
for the taxable year computed pursuant to ss. 852(b)(3)(D) and 
857(b)(3)(D), IRC.                                                 Line 14 - Strong Families Tax Credit (credit for contribution 
                                                                   to eligible charitable organizations)
Line 3 - Net Operating Loss Deduction                              Enter the amount from Line 14 of Schedule V. This is the amount 
Enter the amount of net operating loss deduction shown on          taken for the strong families tax credit for the taxable year.
Line 29(a) of the federal Form 1120 or on the corresponding line 
of other federal income tax forms.                                 Line 15 - New Markets Tax Credit
                                                                   Enter the amount from Line 15 of Schedule V. This is the 
Line 4 - Net Capital Loss Carryover                                amount taken for the new markets tax credit for the taxable year.
Enter the net capital loss carryover, as defined in s. 1212, IRC, 
deducted from capital gains in computing federal taxable income    Line 16 - Entertainment Industry Tax Credit
for the taxable year. Refer to federal Form 1120, Schedule D, for  Enter the amount from Line 16 of Schedule V. This is the 
this adjustment.                                                   amount taken as the entertainment industry tax credit for the 
                                                                   taxable year. 
Line 5 - Excess Charitable Contribution Carryover
Enter the amount of excess charitable contributions determined     Line 17 - Research and Development Tax Credit
under s. 170(d)(2), IRC, carried forward and deducted in           Enter the amount from Line 17 of Schedule V. This is the 
computing federal taxable income for the taxable year.             amount taken as the research and development tax credit for the 
                                                                   taxable year.



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Line 18 - Energy Economic Zone Tax Credit                               Revenue Code that were enacted after January 1, 1980,
Enter the amount from Line 18 of Schedule V. This is the                and before January 1, 1982, became effective on
amount of the energy economic zone tax credit taken for the         January 1, 1982. Taxpayers who made Election A are 
taxable year.                                                       required to make a depreciation adjustment in computing the
                                                                        corporate income/franchise tax if any depreciable assets
Line 19 - s. 168(k), IRC, Special Bonus Depreciation                    were placed in service between January 1, 1981, and
Enter all amounts claimed as a special depreciation allowance           December 31, 1981.
under IRC s. 168(k) for property placed in service before 
January 1, 2027.                                                    “Election B” means the election made by taxpayers for 
                                                                    taxable years beginning prior to January 1, 1987, pursuant to 
Line 20 - Depreciation of Qualified Improvement Property            s. 220.03(5)(c), F.S., to report and pay the corporate income/
Enter the depreciation taken in the computation of federal taxable  franchise tax as if the Internal Revenue Code of 1954, 
income on qualified improvement property placed in service on or    as amended and in effect on January 1, 1980, is in effect 
after January 1, 2018.                                              indefinitely. Taxpayers who made Election B are required to 
If bonus depreciation was taken on the qualified improvement        make a depreciation adjustment in computing the corporate 
property and the bonus depreciation was included on Line 19, it     income/franchise tax if any depreciable assets were placed in 
should not be added back again on this line.                        service between January 1, 1981, and December 31, 1986.
Line 21 - Expenses for Business Meals Provided by a                 If a consolidated Florida corporate income/franchise tax 
Restaurant                                                          return is filed, a separate schedule listing the name, address, 
Enter the portion of the business meal expense deduction taken      FEIN, and the depreciation election (General Rule, which 
in the computation of federal taxable income that exceeds the       was for the emergency excise tax that has been phased out, 
amount that would have been allowed without application of          Election A, or Election B) of each included corporation must 
Public Law 116-260, Division EE, Title II, s. 210, which made       be attached.
business meals provided by a restaurant 100% deductible                 The depreciation adjustment will include the positive or
instead of 50% deductible. This addition applies to taxable years       negative difference, if any, between the depreciation
beginning on or after January 1, 2021, and before January 1, 2026.      deducted as shown on federal Form 4562 for these assets
Line 22 - Film, Television, and Live Theatrical Production              and the depreciation allowable for these assets under the
Expenses                                                                Internal Revenue Code of 1954, as amended and in effect
Enter the deduction taken in the computation of federal taxable         on January 1, 1980. Attach a copy of federal Form 4562 and
income under s. 181, IRC. This addition applies to taxable years        a statement setting forth the details of the adjustment.
beginning on or after January 1, 2021, and before January 1, 2026.  If a taxpayer is governed by Election A or Election B and 
Line 23 - Internship Tax Credit                                     directly or indirectly owns an interest in a partnership, trust, 
Enter the amount from Line 19 of Schedule V. This is the amount     or other entity not taxable as a corporation, it must include 
taken as the internship tax credit for the taxable year.            in its adjustment its distributive share of any depreciation 
                                                                    difference. The difference in the depreciation for the 
Line 24 - Other Additions                                           partnership, trust, or other entity should be computed 
Attach explanatory schedules. Examples:                             in the same manner explained above for Election A 
(1)  Partnership adjustment.                                        or Election B. The taxpayer’s distributive share of the 
 Florida adjusted federal ordinary partnership income or            depreciation difference computed should be added to the 
 loss is based on the federal ordinary partnership income           difference computed under Election A or Election B on the 
 or loss with certain modifications (Florida additions and          taxpayer’s assets. You must attach a copy of the underlying 
 subtractions). To the extent that such modifications increase      entity’s federal Form 4562 and a statement setting forth the 
 the taxpayer’s distributive share of partnership income or loss    details of the adjustment.
 included in its federal income tax return, you must enter an      Line 25 - Total
 appropriate addition as determined on Florida Form F-1065         Enter the sum of Lines 1 through 24 on this line and on the front 
 on Line 24 of this schedule.                                      page of Florida Form F-1120, Line 3.
(2) Consolidated income adjustment.
 No consolidated income adjustment is necessary unless the         Schedule II – Subtractions from Federal Taxable 
 corporation made an election under s. 220.131(1), F.S., within    Income
 90 days of December 20, 1984, or upon filing the taxpayer’s       Taxpayers may not subtract from federal taxable income for 
 first return after December 20, 1984, to file a consolidated      Social Security and Medicare taxes paid on certain employee tip 
 return on the same basis as its consolidated returns filed prior  income when such taxes are taken as a credit on their federal 
 to July 19, 1983. Attach a schedule showing the computation       corporate income tax return as part of the federal General 
 of federal taxable income for the Florida affiliated group and    Business Credit. Florida Statutes do not provide a similar credit 
 the amounts included in the net positive or negative (using a     for Florida income tax purposes, nor is there a provision for a 
 negative sign) adjustment.                                        subtraction from federal income for the taxes taken as a federal 
                                                                   tax credit.
(3) Depreciation adjustment.
 The required depreciation adjustment is for Election A and        Line 1 - Gross Foreign Source Income Less Attributable 
 Election B taxpayers.                                             Expenses
     “Election A” means the election made by taxpayers for         Enter all amounts included in federal taxable income under
     taxable years beginning prior to January 1, 1987, pursuant    s. 78, IRC, on Line 1(a). Enter dividends treated as received from 
     to s. 220.03(5)(b), F.S., to report and pay the corporate     sources outside the United States, as determined under s. 862, 
     income/franchise tax as if the amendments to the Internal     IRC, on Line 1(b). Enter income under s. 951A, IRC, on Line 1(c).



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Enter the total of expenses directly and indirectly attributable to    without retroactive changes made by the CARES Act, and without 
ss. 78, 862, and 951A, IRC, and related amounts deducted under         taking into account any sale or other disposition of the property. 
s. 250, IRC, on Line 1(d). Add s. 78 income plus s. 862 dividends      Attach a schedule showing the taxable year and amount of the 
plus s. 951A income and subtract expenses [1(a) + 1(b) + 1(c) –        original addition and the amount of the subtraction by taxable 
1(d)]. Enter result on Line 1.                                         year. Enter the amount to be subtracted this year.
Line 2 - Gross Subpart F Income Less Attributable Expenses             Line 11 - Film, Television, and Live Theatrical Production 
Enter the subpart F income included in federal taxable income          Expenses
under s. 951, IRC, on Line 2(a). Enter the total of expenses           The recovery of amounts required to be added back for film, 
directly and indirectly attributable to s. 951, IRC, on Line 2(b).     television, and live theatrical productions on Schedule I,
Subtract the attributable expenses from the subpart F income           Line 22 is provided back to a taxpayer through a subtraction on 
(2[a] - 2[b]). Include copies of all IRS forms, schedules, and         this line. The subtraction is limited to the deduction that would 
worksheets associated with IRS Form 5471.                              have been allowed without application of s. 181, IRC, if any. 
                                                                       Attach a schedule showing the taxable year and amount of the 
Note: Taxpayers doing business outside Florida enter zero (0)          original addition and the amount of the subtraction by taxable 
on Lines 3, 4, 5, and 6 and complete Lines 4, 5, 6, 7, and 8 of        year. Enter the amount to be subtracted this year.
Schedule IV.
                                                                       Line 12 - Other Subtractions 
Line 3 - Florida Net Operating Loss Carryover Deduction                Enter any other item required to be subtracted as an adjustment 
See Florida Net Operating Loss Carryover Deduction (NOLD)              to compute adjusted federal income. 
instructions (page 4).
                                                                       Attach explanatory schedules. Examples:
Line 4 - Florida Net Capital Loss Carryover Deduction                  (1) Partnership adjustment. Florida adjusted federal ordinary 
See Florida Net Capital Loss Carryover Deduction instructions          partnership income or loss is based on the federal ordinary 
(page 5).                                                              partnership income or loss with certain modifications 
Line 5 - Florida Excess Charitable Contribution Carryover              (Florida additions and subtractions). To the extent that such 
See Florida Excess Contribution Carryover Deductions                   modifications decrease the taxpayer’s distributive share of 
instructions (page 5).                                                 partnership income or loss included in its federal income tax 
                                                                       return, an appropriate subtraction as determined on Florida 
Line 6 - Florida Employee Benefit Plan Contribution Carryover          Form F-1065 must be entered on Line 12 of this schedule.
See Florida Excess Contribution Carryover Deductions 
instructions (page 5).                                                 (2) Certain foreign taxes. Enter the amount of taxes of foreign 
                                                                       countries allowable as credits under s. 901, IRC, to any 
Line 7 - Nonbusiness Income                                            corporation that derived less than 20% of its gross income or 
If the taxpayer’s business is entirely within Florida, enter zero (0). loss for its taxable year ending in 1984 from sources within 
If the taxpayer is doing business outside Florida, enter the amount    the United States, as described in s. 861(a)(2)(A), IRC, not 
of nonbusiness income included in federal taxable income from          including withholding taxes specified in s. 220.13(1)(b)5., F.S.
Schedule R, Line 3. See Instructions for Schedule R (page 15).
                                                                       (3) Cancellation of indebtedness income deferred under 
Line 8 - Eligible Net Income of an International Banking Facility      s.108(i), IRC. Enter the amount of income previously required 
The eligible net income of an international banking facility is        to be added back under s. 220.13(1)(e)3., F.S., when the 
allowed as a deduction from adjusted federal income, to the            deferred cancellation of indebtedness income is recognized for 
extent not deductible in determining federal taxable income or         federal income tax purposes. The subtraction may not exceed 
subtracted pursuant to s. 220.13(1)(b)2., F.S. See ss. 220.63(5)       the amount of s.108(i), IRC, income added back under
and 220.62(3), F.S., for a detailed explanation of the computation          s. 220.13(1)(e)3., F.S.
of eligible net income and a definition of international banking 
facility.                                                              Line 13 - Total
                                                                       Enter the sum of Lines 1 through 12 on this line and on the front 
Line 9 - s. 168(k), IRC, Special Bonus Depreciation                    page of Florida Form F-1120, Line 5.
With the exception of qualified improvement property placed in 
service on or after January 1, 2018, the amount required to be 
added back for s.168(k), IRC, bonus depreciation is provided back      Schedule III – Apportionment of Adjusted Federal 
to a taxpayer through a subtraction over a seven-year period of        Income
one seventh of the amount of the addition, beginning with the tax      Florida taxpayers doing business outside Florida are required 
year of the addition. Attach a schedule showing the taxable year       to apportion their business income to Florida based upon a 
and amount of the original addition, the amount of the original        three-factor formula (average value of property, payroll, and 
addition for qualified improvement property placed in service on       sales factors), except for insurance companies, transportation 
or after January 1, 2018, and the amount of the subtraction by         companies, citrus processing companies, taxpayers granted 
taxable year. Enter the amount to be subtracted this year.             permission to use a single sales factor under s. 220.153, F.S., 
                                                                       and taxpayers who have been given prior permission by the
Line 10 - Depreciation of Qualified Improvement Property               Department to apportion income using a different method under
The recovery of amounts required to be added back to federal           s. 220.152, F.S.
taxable income for qualified improvement property placed in 
service on or after January 1, 2018 (Schedule I, Line 20, and the      Florida does not allow a taxpayer to apportion income if it is not 
portion related to such property added back on Schedule I,             doing business outside the state. Making only sales in another 
Line 19) is provided back to a taxpayer through a subtraction on       state without property or payroll in that state does not automatically 
this line. The subtraction is limited to the depreciation that would   indicate a taxpayer is “doing business” in a state other than Florida. 
have been allowed under the IRC in effect on January 1, 2020,          See Rule 12C-1.015, F.A.C., for further information about when a 
                                                                       Florida corporation may apportion income.



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The three-factor formula measures Florida’s share of adjusted          (a) Coin or currency located in Florida.
federal income by ratios of the taxpayer’s property, payroll, and      (b) Assets in the nature of loans located in Florida, including 
sales in Florida to total property, payroll, and sales located or      balances due from depository institutions, repurchase 
occurring everywhere. The apportionment factors are weighted as        agreements, federal funds sold, and bankers’ acceptances.
follows: 25% to property, 25% to payroll, and 50% to sales.            (c) Installment obligations on loans for which the customer initially 
                                                                       applied at an office located in Florida.
Note: If the amount reported in Schedule III-A, Column (b) for either  (d) Loans secured by mortgages, deeds of trust, or other liens 
the property or payroll factor is zero, the weighted percentage        upon real or tangible personal property located in Florida.
for the other factor will be 33-1/3% and the weighted percentage       (e) A portion of a participation loan where the office that enters 
for the sales factor will be 66-2/3%. If the amount reported in        into the participation is located in Florida.
Schedule III-A, Column (b) for the sales factor is zero, the weighted  (f)  Credit card receivables from customers who reside or who are 
percentage for the property and payroll factors will change from       commercially domiciled in Florida.
25% to 50% each. If the amounts reported in Schedule III-A,            (g) Investments in securities that generate business income where 
Column (b) for any two factors are zero, the weighted percentage       the taxpayer’s commercial domicile is in Florida, unless such 
for the remaining factor will be 100%.                                 securities have acquired a discrete business situs elsewhere.
All amounts related to nonbusiness income, income related              (h) Securities held by a state treasurer or other public official or 
to ss. 78, 862, 951, and 951A, IRC, and any other income not           pledged to secure public funds or trust funds deposited with 
included in the adjusted federal income (Florida Form F-1120,          the taxpayer, if the office where the secured deposits are 
Line 6) must be excluded from the apportionment factors.               maintained is in Florida.
                                                                       (i)  Leases of tangible personal property where the taxpayer’s 
                                                                       commercial domicile is in Florida, unless the taxpayer 
III-A Line 1. Average Value of Property                                establishes that the location of the leased tangible property is 
The property factor is a fraction. The numerator of this fraction      in another state or states for the entire taxable year and the 
is the average value of real and tangible personal property            taxpayer is taxable in such other state or states.
owned or rented and used during the taxable year in Florida.           (j)  Installment sale agreements originally executed by a taxpayer 
The denominator is the average value of such property owned or         or its agent to sell real or tangible personal property located in 
rented and used everywhere during the taxable year.                    Florida.
Property owned is valued at original cost, without regard to           (k) Any other intangible personal property located in Florida used 
accumulated depreciation. Property rented is valued at eight times     to generate business income.
the net annual rental rate. You must reduce the net annual rental 
rate by the annual rental rate received from sub-rentals.              III-A Line 2. Payroll
Compute the average value of property using Schedule III-B. On         The payroll factor is a fraction. The numerator of this fraction is the 
Lines 1 through 4 of this schedule, enter the beginning-of-year        total amount paid to employees in Florida during the taxable year 
and end-of-year balances for property owned and used within            for compensation. The denominator is the total compensation 
Florida, as well as property owned and used everywhere. Compute        paid to employees everywhere during the taxable year. Enter 
the average value using the formula provided on Line 6. Enter          the numerator in Schedule III-A, Line 2, Column (a). Enter the 
the value of rented property on Line 7.  Add Lines 6a and 7a and       denominator in Schedule III-A, Line 2, Column (b). For purposes 
enter the Florida average on Line 8a of Schedule III-B and on          of this factor, compensation is paid within Florida if:
Schedule III-A, Line 1, Column (a). Likewise, add Lines 6b and 7b      (a) The employee’s service is performed entirely within Florida, or
and enter the everywhere average on Line 8b of Schedule III-B and      (b) The employee’s service is performed both within and outside 
on Schedule III-A, Line 1, Column (b).                                 Florida, but the service performed outside Florida is incidental 
                                                                       to the employee’s service, or
If substantial fluctuations in the values of the property exist during (c) Some of the employee’s service is performed in Florida and 
the tax period or where you acquired property after the beginning      either the base of operations or the place from which the 
of the tax period or disposed of property before the end of the tax    service is directed or controlled is in Florida, or the base of 
period, the Department may require or allow monthly averaging          operations or place from which the service is controlled is not 
of property values. If monthly averages are used, you must attach      in any state in which some part of the service is performed and 
appropriate schedules.                                                 the employee’s residence is in Florida.
For corporations not included within the definition of a financial     The taxpayer must attach a statement listing all compensation 
organization, intangible personal property will not be included        paid or accrued for the taxable year other than that shown 
in the property factor. The property factor used by a financial        on federal Form 1125-A, federal Form 1125-E (if required to 
organization must include intangible personal property, except         complete for federal tax purposes), or federal Form 1120.
goodwill, owned and used in the business. The term “financial 
organization” includes any bank, trust company, savings bank,          Sponsored Research and Development Contracts through a 
industrial bank, land bank, safe deposit company, private banker,      University
savings and loan association, credit union, cooperative bank,          The payroll factor excludes compensation paid to a Florida 
small loan company, sales finance company, or investment               employee and the property factor excludes any real or tangible 
company.                                                               personal property located in Florida certified as dedicated 
                                                                       exclusively to the activities of sponsored research and 
The intangible personal property will be valued at its tax basis for   development contracts through a state university or a non-public 
federal income tax purposes. Florida considers intangible personal     Florida chartered university conducting graduate programs at the 
property to be in Florida if it consists of any of the following:      professional or doctoral level. This exclusion applies only during 
                                                                       the contractual period and the tax savings is limited to the amount 
                                                                       paid for the sponsored research.



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Attach a copy of the certification letter, received from the Board     III-A Line 4. Apportionment Fraction
of Governors of the State University System or the university          For Lines 1, 2, and 3 of Schedule III-A, divide the amount in 
president, to the return. Also, the taxpayer must include the          Column (a) by the amount in Column (b). Round the result to 
schedule of items, as certified by the university, excluded from       six decimal places. Enter the result in Column (c) of Schedule 
the payroll and property factors.                                      III-A. In Column (d), use the appropriate weight for each 
                                                                       factor. See the note on page 10 for more detailed information. 
                                                                       Multiply the amount in Column (c) by the weighted percentage 
III-A Line 3. Sales Factor                                             in Column (d). Round the result to six decimal places. Enter the 
The sales factor is a fraction. The numerator of this fraction is the  result in Column (e).
total sales of the taxpayer in Florida during the taxable year. The 
denominator is the total sales of the taxpayer everywhere during       To compute the Florida apportionment fraction, add the weighted 
the taxable year. Use Schedule III-C to calculate the sales factor.    factors on Schedule III-A, Lines 1, 2, and 3 of Column (e). Enter 
Enter the numerator on Schedule III-A, Line 3, Column (a) and the      the total on Schedule III-A, Line 4 and on Schedule IV, Line 2.
denominator on Schedule III-A, Line 3, Column (b).
Florida defines the term “sales” as gross receipts without regard      III-D. Special Apportionment Fractions
to returns or allowances. The term “sales” is not limited to           Insurance Companies
tangible personal property, and includes:                              Insurance companies apportion adjusted federal income to 
(a) Rental or royalty income, if such income is significant in the     Florida by multiplying it by a fraction. The numerator is the 
taxpayer’s business.                                                   direct premiums written for insurance upon properties and risks 
(b) Interest received on deferred payments of sales of real or         in Florida and the denominator is direct premiums written on 
tangible personal property.                                            properties and risks everywhere. Florida defines the term “direct 
(c) Income from the sale, licensing, or other use of intangible        premiums written” as the total amount of direct premiums written, 
personal property.                                                     assessments, and annuity considerations, as reported on the 
(d) Sales of services.                                                 annual statement filed by the company with the Florida Insurance 
(e) For financial organizations, income from intangible personal       Commissioner.
property.
                                                                       However, if the principal source of premiums written by an 
Making only sales in another state without property or payroll in      insurance company consists of premiums for reinsurance 
that state does not automatically indicate a taxpayer is “doing        accepted by it, the numerator and denominator of the above 
business” in a state other than Florida. See Rule 12C-1.015,           fraction include the direct premiums written plus premiums written 
F.A.C., for further information about when a Florida corporation       for reinsurance.
may apportion income.
                                                                       Enter the amounts within Florida in Column (a) and amounts 
Sales will be attributable to Florida using the following criteria:    everywhere in Column (b) on Schedule III-D, Line 1. Divide 
(a) Sales of tangible personal property will be “Florida sales” if the Column (a) by Column (b) and enter the result on Schedule III-D, 
property is delivered or shipped to a purchaser within Florida.        Line 1, Column (c) and on Schedule IV, Line 2.
(b) Rentals will be “Florida sales” if the real or tangible personal 
property is in Florida.                                                Note:  Insurance companies using this apportionment fraction 
(c) Interest received on deferred payments of sales of real or         should attach a copy of Schedule T from their annual report.
tangible personal property will be included in “Florida sales” if      Transportation service companies 
the sale of the property is in Florida.                                Taxpayers furnishing transportation services will use a single 
(d) Sales of service organizations are within Florida if the services  factor apportionment fraction to apportion their income to Florida. 
are performed in Florida.                                              The term “taxpayers furnishing transportation services” includes 
For a financial organization, “Florida sales” will also include:       taxpayers engaged exclusively in interstate commerce.
(a) Fees, commissions, or other compensation for financial             Florida apportions the income of transportation companies 
services rendered within Florida.                                      by multiplying their adjusted federal income by a fraction; the 
(b) Gross profits from trading in stocks, bonds, or other securities   numerator is the revenue miles within Florida and the denominator 
managed within Florida.                                                is the revenue miles everywhere.
(c) Interest, other than interest from loans secured by 
mortgages, deeds of trust, or other liens upon real or tangible        For transportation other than by pipeline, a revenue mile is the 
property located outside Florida.                                      transportation of one passenger or one net ton of freight the 
(d) Dividends received within Florida.                                 distance of one mile for consideration.
(e) Interest for carrying debit balances on margin accounts,           Enter the amount within Florida in Column (a) and the 
charged to customers at their business locations in Florida,           amount everywhere in Column (b) on Schedule III-D, Line 2. 
without deducting any costs for carrying such accounts.                Divide Column (a) by (b) and enter the result on Schedule III-D, 
(f)  Interest, fees, commissions, and other charges or gains from      Line 2, Column (c) and on Schedule IV, Line 2.
loans secured by mortgages, deeds of trust, or other liens 
upon real or tangible personal property located in Florida or          Schedule IV – Computation of Florida Portion of 
from installment sale agreements originally executed by a 
taxpayer or its agent to sell real or tangible personal property       Adjusted Federal Income
                                                                       A taxpayer doing business outside Florida should use 
located in Florida.
                                                                       Schedule IV to compute the Florida portion of adjusted federal 
(g) Any other gross income, including other interest, resulting 
                                                                       income. Florida does not allow a taxpayer to apportion income 
from the operation as a financial organization within Florida.
                                                                       using Schedule IV if it is not considered to be doing business 
                                                                       outside Florida.



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Apportionment of Adjusted Federal Income                            Section 220.02(8), F.S., provides for an order of application for 
Line 1 - Apportionable Adjusted Federal Income                      the credits against corporate income tax. The credits are listed 
Enter the adjusted federal income from Line 6 on the front page     in Schedule V in the order they must be applied. The Florida 
of Florida Form F-1120.                                             Life and Health Insurance Guaranty Association (FLAHIGA) 
                                                                    Assessment Credit, available to certain insurers, is not listed in 
Line 2 - Florida Apportionment Fraction                             s. 220.02(8), F.S. Therefore, the FLAHIGA credit is to be included 
Enter the Florida apportionment fraction from either                in the “other credits” on Line 20. You may find the instructions for 
Schedule III-A, Line 4 or Schedule III-D, Column (c).               the credit with the instructions for Line 20 on page 14.
Line 4 - Net Operating Loss Carryover Apportioned to Florida        Line 1 - Florida Health Maintenance Organization Consumer 
Enter the Florida net operating loss carryover deduction.           Assistance Assessment Credit
To support a deduction, you must attach a schedule showing          A corporate income tax credit is available to a member of the 
how you computed the deduction. See the Florida Net Operating       Health Maintenance Organization Consumer Assistance Plan for 
Loss Carryover Deduction (NOLD) instructions on page 4,             assessments paid under s. 631.828, F.S. This credit is limited 
including Examples of Florida Net Operating Loss Carry Forward      to 20% of the amount of such assessments for each of the five 
Schedules on page 16.                                               calendar years following the year in which such assessment was 
                                                                    paid. Attach a copy of the assessment notice to Florida Form 
Line 5 - Net Capital Loss Carryover Apportioned to Florida          F-1120.
Enter any available Florida net capital loss carryover deduction. 
See the Florida Net Capital Loss Carryover Deduction                Note: Taxpayers must include the amount of any credit claimed 
instructions on page 5.                                             for the current year on Schedule I, Line 9.
To support a deduction, you must attach a schedule showing how      Line 2 - Capital Investment Tax Credit
you computed the deduction. You must include the year(s) of         An annual capital investment tax credit is available to a 
loss, apportionment fraction for the taxable year in which the loss qualifying business that establishes a qualifying project. Attach a 
occurred, and amounts of the carryover(s) previously deducted.      copy of the certification. For qualifying projects defined in
                                                                    s. 220.191(1)(g)1., and 2., F.S., this credit is granted against 
Line 6 - Excess Charitable Contribution Carryover                   only the portion of Florida corporate income tax generated by, 
Apportioned to Florida                                              or arising out of, the qualifying project. You must attach a pro 
Enter any available Florida excess charitable contribution          forma tax return indicating the qualifying project’s Florida taxable 
carryover. See the Florida Excess Contribution Carryover            income for the year to claim this credit. Businesses may apply 
Deductions instructions on page 5.                                  for this credit with Enterprise Florida, Inc., at 850-298-6620. A 
To support a deduction, you must attach a schedule showing          taxpayer that takes this credit against Florida insurance premium 
how you computed the deduction. You must include the year(s)        tax is not eligible to take it against Florida corporate income tax.
of federal excess contributions, actual contributions made,         For qualifying projects defined in s. 220.191(1)(g)3., F.S., when 
federal contribution limitation, amount of excess contributions,    the capital investment tax credit is used in whole or in part by a 
Florida apportionment fraction for the taxable year(s),             member of the qualifying business’ affiliated group or a related 
apportioned excess contribution to be carried over, and the         entity that is taxable as a cooperative under subchapter T of 
amount of the carryover(s) previously deducted.                     the Internal Revenue Code, the qualifying business and the 
                                                                    entities claiming the qualifying business’ tax credit must attach 
Line 7 - Employee Benefit Plan Contribution Carryover               a schedule reconciling how the capital investment tax credit is 
Apportioned to Florida                                              used. The name, federal employer identification number, and 
Enter any available Florida employee benefit plan excess            amount of capital investment tax credit claimed by each entity 
contribution carryover. See the Florida Excess Contribution         must be included in the schedule.
Carryover Deductions instructions on page 5.
                                                                    If you are claiming a transferred capital investment tax credit per 
To support a deduction, you must attach a schedule showing          s. 220.191(2)(c), F.S., you must attach to your return a copy of 
how you computed the deduction. You must include the year(s)        the letter received from the Department of Revenue certifying 
of federal excess contributions, actual contributions made,         the amount of the credit transferred (only credits relating to solar 
federal contribution limitation, amount of excess contributions,    energy projects may be transferred).
Florida apportionment fraction for the taxable year(s), 
apportioned excess contribution to be carried over, and the         Line 3 - Enterprise Zone Jobs Credit
amount of the carryover(s) previously deducted.                     Any business claiming the credit must complete and attach 
                                                                    a Florida Enterprise Zone Jobs Credit Certificate of Eligibility 
Line 8 - Total Carryovers Apportioned to Florida                    for Corporate Income Tax (Florida Form F-1156Z). Enter the 
Add Lines 4 through 7, and enter the total.                         amount from Florida Form F-1156Z. Taxpayers claiming the 
                                                                    credit must include the amount claimed for the current taxable 
Line 9 - Adjusted Federal Income Apportioned to Florida             year on Schedule I, Line 7.
Subtract Line 8 from Line 3 and enter the difference on this line 
and on the front page of Florida Form F-1120 (Line 7).              Line 4 - Community Contribution Tax Credit
                                                                    Florida allows a credit equal to 50% of a qualified community 
                                                                    contribution against corporate income tax for the taxable year of 
Schedule V – Credits Against the Corporate                          the contribution. The amount of the community contribution credit 
Income/Franchise Tax                                                allowed is limited to $200,000 per taxpayer. You may carry forward 
Note: Credits against the tax may not exceed the corporate          any unused credits for a period not to exceed five (5) years.
income/franchise tax liability.
                                                                    Attach a copy of the decision approving the credit to the Florida 
                                                                    Form F-1120 on which you are claiming the credit.



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Note:  Insurance companies may not claim the community              Line 11 - State Housing Tax Credit
contribution credit against their corporate income tax liability.   A credit is available against Florida corporate income tax based 
                                                                    upon approved low income housing projects for a five (5) year 
Line 5 - Enterprise Zone Property Tax Credit                        credit period beginning with the year the project is completed. 
Any business claiming the credit must complete and attach           A taxpayer that wishes to participate in the State Housing 
an Enterprise Zone Property Tax Credit form (Florida Form           Tax Credit Program must submit an application to the Florida 
F-1158Z). Enter the amount of enterprise zone property tax          Housing Finance Corporation. Attach a copy of the approval 
credit, including any applicable carryover credit, from Florida     letter from the Florida Housing Finance Corporation to the 
Form F-1158Z.                                                       return. Additional information can be obtained from the Low 
Note: Taxpayers claiming the credit must include the amount         Income Housing Administrator at 850-488-4197.
claimed for the current year on Schedule I, Line 8.                 Note: Taxpayers must include the amount claimed for the 
Line 6 - Rural Job Tax Credit and Line 7 - Urban High-Crime         current year on Schedule I, Line 11.
Area Job Tax Credit                                                 Line 12 - Florida Tax Credit Scholarship Program 
Attach a copy of the approval to the return. A corporation that     Credit: (contributions to nonprofit scholarship-funding 
uses one of these credits against sales and use tax is not          organizations tax credit) 
eligible to take the same credit against Florida corporate income   A credit is available against Florida corporate income tax for 
tax. You may carry forward any unused credit for a period not to    contributions to nonprofit scholarship-funding organizations 
exceed five (5) years.                                              (SFOs). To learn more about this credit or to submit your 
Note:  Taxpayers claiming these credits must include the            application, go to floridarevenue.com/taxes/cit and under Tax 
amounts claimed for the current year on Schedule I, Line 10.        Incentives select Corporate Income Tax Incentives webpage link.
Line 8 - Hazardous Waste Facility Tax Credit                        The Department of Revenue must approve an allocation of this 
A credit is allowed to the owner of any commercial hazardous        credit before it can be taken. If the credit granted is not fully 
waste facility for the sum of: (a) expenses for required            used in any one year, the unused credit can be carried forward 
hydrologic, geologic, or soil site evaluations and permit fees,     no more than ten (10) years (five [5] years for carry forward 
and (b) 5% of the cost of stationary facility equipment used for    amounts from tax years beginning prior to January 1, 2018).
recycling hazardous wastes pursuant to s. 220.184, F.S. Any         The credit shall be reduced by the difference between the
unused credit may be carried forward for a period not to exceed     amount of federal corporate income tax taking into account the
five (5) years.                                                     credit and the amount of federal corporate income tax without
Line 9 - Florida Alternative Minimum Tax (AMT) Credit               application of the credit. In addition, a taxpayer’s noncompliance 
A credit for Florida AMT paid is allowable in any tax year in       with the requirement to pay tentative taxes may result in the 
which “regular” Florida tax is due following the tax year for which revocation and rescindment of the credit when the allocation of 
Florida AMT was paid. The amount of the AMT credit generated        credit is made after a request for an extension of time. See
in a taxable year is equal to the amount of AMT paid over the       s. 220.1875, F.S.
“regular” tax that would have otherwise been due without
application of the Florida tax credit scholarship program credits   Attach a copy of the certificate of contribution from each 
(s. 220.1875, F.S.) and the Florida renewable energy production     nonprofit scholarship-funding organization to your Florida 
tax credit (s. 220.193, F.S.). For tax years beginning on or after  Form F-1120.
January 1, 2018, there is no Florida AMT and no additional          You may transfer this credit to members of the same affiliated 
Florida AMT credit will be created.                                 group. To learn more about transfers of this credit refer to Florida 
The amount of AMT credit that may be taken is limited to the        Form DR-116200, Florida Tax Credit Scholarship Program 
lesser of:                                                          Notice of Intent to Transfer a Tax Credit. For transferred credits, 
• the amount of unused Florida AMT credit carried forward from      a copy of the letter received from the Department of Revenue 
  previous tax years, and                                           certifying the amount of credit transferred must be attached to 
• the amount of tax due on Line 11 of the computation of            the return.
  Florida net income less the credits claimed on Lines 1 through    Note: Taxpayers must include the amount of any credit claimed 
  9 minus 3.3% of the amount that additions (Schedule I,            for the current year on Schedule I, Line 12.
  Lines 1 and 7 through 24) exceed subtractions (Schedule II, 
  Lines 3 through 12, and if your apportionment factor is not       Line 13. New Worlds Reading Initiative Credit
  100% Florida, Schedule IV, Line 8).                               A credit is available against the corporate income tax for 
                                                                    contributions to the administrator under the New Worlds Reading 
Line 10 - Contaminated Site Rehabilitation Tax Credit:              Initiative. To learn more about this credit, or to submit your 
(voluntary cleanup tax credit)                                      application, go to floridarevenue.com/taxes/cit and under Tax 
A credit is available to eligible entities for a percentage of      Incentives, select the Corporate Income Tax Incentives webpage 
the costs of a voluntary cleanup of a contaminated site. Any        link.
corporation that wishes to obtain this credit must submit with its 
return a tax credit certificate issued by the Florida Department of The Department of Revenue must approve an allocation of this 
Environmental Protection. Additional information can be obtained    credit before it can be taken. If the credit granted is not fully used 
by contacting the Department of Environmental Protection,           in any one year, the unused credit can be carried forward no 
Bureau of Waste Cleanup, at 850-245-8927. Any unused credit         more than ten (10) years. 
may be carried forward for a period not to exceed five (5) years.



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                                                                                                                                F-1120N
                                                                                                                                R. 01/23
                                                                                                                          Page 14 of 17

The credit shall be reduced by the difference between the amount       Line 16 - Entertainment Industry Tax Credit
of federal corporate income tax taking into account the credit and     A credit is available against Florida corporate income tax as part 
the amount of federal corporate income tax without application         of the entertainment industry financial incentive program. The 
of the credit. In addition, a taxpayer’s noncompliance with the        program is administered by the Office of Film and Entertainment. 
requirement to pay tentative taxes may result in the revocation        Visit their website at filminflorida.com. Attach a copy of the 
and rescindment of the credit when the allocation of credit is made    approval letter for the tax credit or credit transfer to the return. 
after a request for an extension of time. See s. 1003.485, F.S.        Any unused credit may be carried forward for a period not to 
                                                                       exceed five (5) years.
Attach a copy of the certificate of contribution from the 
administrator to your Florida Form F-1120.                             Note: Taxpayers must include the amount of any credit claimed 
                                                                       for the current year on Schedule I, Line 16.
You may transfer this credit to members of the same affiliated 
group. To learn more about transfers of this credit, refer to Florida  Line 17 - Research and Development Tax Credit
Form DR-336200, The New Worlds Reading Initiative Notice of            A credit is available against Florida corporate income tax based 
Intent to Transfer a Tax Credit. For transferred credits, a copy of    upon qualified research expenses in Florida for taxpayers that 
the letter received from the Department of Revenue certifying the      also claim and are allowed a federal income tax credit under 
amount of credit transferred must be attached to the return.           section 41 of the IRC for the same research expenses. The 
                                                                       Department of Revenue must allocate this credit before it can 
Note: Taxpayers must include the amount of any credit claimed          be taken. Attach federal Forms 6765, 3800, and 1065, Schedule 
for the current year on Schedule I, Line 13.                           K-1 (if applicable) to the return. An unused credit cannot be 
Line 14. Strong Families Tax Credit (credit for contributions          carried forward more than five (5) years. 
to eligible charitable organizations)                                  Note: Taxpayers must include the amount claimed for the 
A credit is available against Florida corporate income tax for         current taxable year on Schedule I, Line 17.
contributions to eligible charitable organizations under the 
Florida Strong Families Tax Credit Program. To learn more about        Line 18 - Energy Economic Zone Tax Credit
this credit, or to submit your application, go to                      A credit is available against Florida corporate income tax for 
floridarevenue.com/taxes/cit and under Tax Incentives select           eligible corporations located in an energy economic zone. Attach 
the Corporate Income Tax Incentives webpage link.                      a copy of the certification approving the credit to the return.
The Department of Revenue must approve an allocation of this           Note: Taxpayers must include the amount of any credit claimed 
credit before it can be taken. If the credit granted is not fully used for the current year on Schedule I, Line 18.
in any one year, the unused credit can be carried forward no           Line 19. Internship Tax Credit
more than ten (10) years.                                              A credit is available against Florida corporate income tax for 
The credit shall be reduced by the difference between the amount       employing student interns during taxable years that begin in 
of federal corporate income tax taking into account the credit and     2022 and 2023. The credit is $2,000 per student intern up to a 
the amount of federal corporate income tax without application         maximum of five student interns per year. To learn more about 
of the credit. In addition, a taxpayer’s noncompliance with the        this credit, or to submit your application, go to 
requirement to pay tentative taxes may result in the revocation        floridarevenue.com/taxes/cit and under Tax Incentives 
and rescindment of the credit when the allocation of credit is made    select the Corporate Income Tax Incentives webpage link. The 
after a request for an extension of time. See s. 402.62, F.S.          Department of Revenue must approve this credit before it can 
                                                                       be taken. Unused credits may be carried forward up to two (2) 
Attach a copy of the certificate of contribution from each             taxable years. 
eligible charitable organization to your Florida Form F-1120.
                                                                       Note: Taxpayers must include the amount of any credit claimed 
You may transfer this credit to members of the same affiliated         for the current year on Schedule I, Line 23.
group. To learn more about transfers of this credit, refer to 
Florida Form DR-226200, Strong Families Tax Credit Notice of           Line 20 - Other Credits
Intent to Transfer a Tax Credit. For transferred credits, a copy of    Enter the amount of any other credits allowable against the 
the letter received from the Department of Revenue certifying          corporate income/franchise tax. Attach a supporting schedule 
the amount of credit transferred must be attached to the return.       indicating the type and amount of any allowable credit.
Note: Taxpayers must include the amount of any credit claimed          Florida Life and Health Insurance Guaranty Association 
for the current year on Schedule I, Line 14.                           (FLAHIGA) Assessment Credit
                                                                       A credit against insurance premium tax or corporate income tax is 
Line 15 - New Markets Tax Credit                                       available to member insurers of FLAHIGA as follows:
A credit is available against Florida corporate income tax for a 
qualified investment under the Florida New Markets Development         •  For each assessment levied before January 1, 1997,
Program administered by the Department of Economic                          0.1% of the amount of the assessment for each year following 
Opportunity. Attach a copy of the credit certification. You may        the year in which the assessment was paid.
carry forward any unused credit for a period of five (5) years.        •  For each assessment levied and paid after 
                                                                       December 31, 1996, 5% of the amount of the assessment 
Insurance companies may only claim this credit against their           for each of the 20 years following the year in which the 
insurance premium tax due under s. 624.509, F.S.                       assessment was paid.
Note: Taxpayers must include the amount of any credit claimed          The total amount of assessment that can be claimed as a credit is 
for the current year on Schedule I, Line 15.                           net of any refunds received.



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                                                                                                                              F-1120N
                                                                                                                              R. 01/23
                                                                                                                      Page 15 of 17

However, if a member insurer ceases doing business, all               Nonbusiness income means rents and royalties from real or 
uncredited assessments may be credited against its insurance          tangible personal property, capital gains, interest, dividends, 
premium or corporate income tax liability for the year it ceases      and patent and copyright royalties, to the extent they do not 
doing business.                                                       arise from transactions and activities in the regular course of a 
                                                                      taxpayer’s trade or business.
The same assessment amount may not be offset by an insurer 
against both its insurance premium and corporate income tax           Line 1 - Nonbusiness Income (Loss) Allocated to Florida 
liabilities.                                                          Enter each type (for example: dividends, interest, and royalties) 
                                                                      and the amount of nonbusiness income allocated to Florida on 
Attach a statement showing the computations to support the            this line and on the front page of Florida Form F-1120 (Line 8). 
credit claimed, a copy of the Assessment Levy, and a copy of the 
Certificate of Contribution for each assessment claimed as a credit.  Line 2 - Nonbusiness Income (Loss) Allocated Elsewhere
                                                                      Enter each type (for example: dividends, interest, and royalties), 
Note: Taxpayers must include the amount of any credit claimed         the state or country to which the nonbusiness income is 
for the current year on Schedule I, Line 9.                           allocated, and the amount of nonbusiness income.
Line 21 - Total Credits Against the Tax                               Line 3 - Total Nonbusiness Income
Enter the sum of Lines 1 through 20 on this line and on the front     Enter the sum of Lines 1 and 2 on Line 3 and on Schedule II, 
page of Florida Form F-1120 (Line 12).                                Line 7.

Schedule R – Nonbusiness Income                                       Estimated Tax Worksheet
Note: Taxpayers that conduct business entirely within Florida do      You must make estimated payments if your corporate income tax 
not need to complete Schedule R.                                      liability exceeds $2,500. Complete the worksheet to determine if 
Nonbusiness income is not subject to apportionment, but is            estimated tax is due.
allocated as provided in s. 220.16, F.S. The term nonbusiness         Line 2 - Florida Exemption $50,000 
does not include income from tangible and intangible property         Members of a Controlled Group - Only one $50,000 exemption 
if the acquisition, management, and disposition of the property       is allowed to a controlled group of corporations. For any Florida 
constitute integral parts of the taxpayer’s regular trade or          taxpayer who is a member of a controlled group, the manner 
business operations, or any amounts that could be included in         in which the members allocate the $50,000 exemption for 
apportionable income without violating the due process clause         purposes of filing the annual Florida return will be binding upon 
of the U.S. Constitution. In general, all transactions and activities all members with respect to estimated tax. This includes the 
of a taxpayer that are dependent upon, or contribute to the           determination of whether a declaration was required and the 
operations of the taxpayer’s economic enterprise as a whole,          computation of penalties and interest on underpayments.
constitute the taxpayer’s trade or business. Functionally related 
dividends are presumed to be business income.



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                                                                                                                                             R. 01/23
                                                                                                                                          Page 16 of 17

            Examples of Florida Net Operating Loss Carry Forward Schedules
For Taxpayers that Apportion (doing business outside Florida):
   Tax              (a)                           (b)                    (c)                       (d)                       (e)          (f)
   Year   Adjusted Federal            Apportionment Fraction     Florida Apportioned              NOLCO Applied  Florida Portion of    NOL Carry Forward 
                Income/Loss           (rounded to 6 decimal      Income/Loss (a) x (b)             (Schedule IV) Adjusted Federal         to Next Year
                                      places)                                                                    Income/Loss (c + d)

2018      $         (1,000,000)       0.123456                   $       (123,456)               $ -             $           (123,456) $  (123,456)
2019      $         750,000           0.130010                   $                      97,508   $ (123,456)     $           (25,948)  $  (25,948)
2020      $         1,500,000         0.128500                   $                      192,750  $ (25,948)      $           166,802   $  -

For 100% Florida Taxpayers:
   Tax                  (a)                                      (b)                               (c)                                 (d)
   Year                 Federal                       NOLCO Applied (Schedule II)               Adjusted Florida Income/Loss NOL Carry Forward to Next Year
                    Income/Loss

2018      $                           (1,000,000) $              -                      $              (1,000,000)           $           (1,000,000)
2019      $                           750,000     $                (1,000,000)          $              (250,000)             $            (250,000)
2020      $                           1,500,000   $                  (250,000)          $              1,250,000             $         -

                                      Forms                                                                      Filing Tips
  Additional Florida forms which may be needed.
  F-851             Corporate Income/Franchise Tax Affiliations Schedule                        ü  Be sure to make copies of your return 
  F-1065           Florida Partnership Information Return                                          and schedules before filing with the 
  F-1120A         Florida Corporate Short Form Income Tax Return                                   Department of Revenue.
  F-1120ES      Declaration/Installment of Florida 
                        Estimated Income/Franchise Tax                                          ü  Notify the Department of a change of 
   F-1120X        Amended Florida Corporate Income/Franchise                                       address online at:
                        Tax Return                                                                 floridarevenue.com/taxes/updateaccount
  F-1122           Authorization and Consent of Subsidiary
                        Corporation to be Included in a                                         ü  To find filing due dates for the current 
                        Consolidated Income Tax Return
                                                                                                   year go to the Department’s website at
  F-1156Z         Florida Enterprise Zone Jobs Credit
                        Certificate of Eligibility for Corporate                                   floridarevenue.com/taxes/cit/duedates
                        Income Tax
  F-1158Z        Enterprise Zone Property Tax Credit
  F-2220          Underpayment of Estimated Tax on
                        Florida Corporate Income/Franchise Tax
  F-7004          Florida Tentative Income/Franchise Tax Return                         
                        and Application for Extension of Time
                        to File Return



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                                                                                                              F-1120N
                                                                                                              R. 01/23
                                                                                                              Page 17 of 17

                                                        Contact Us

Information and tutorials are available at floridarevenue.com/taxes/education.
Tax forms and publications are available at floridarevenue.com/forms.
To speak with a Department of Revenue representative, call Taxpayer Services at 
850-488-6800, Monday through Friday, excluding holidays.
Subscribe to Receive Updates by Email from the Department. 
Subscribe to receive an email for due date reminders, Tax Information Publications (TIPs), or proposed 
rules, including notices of rule development workshops and emergency rulemaking. Subscribe today at 
floridarevenue.com/dor/subscribe.

                                                        References

The following documents were mentioned in this form and are incorporated by reference in the rules indicated below.
               Forms are available online at floridarevenue.com/forms.

Form F-1120    Florida Corporate Income/Franchise Tax Return                            Rule 12C-1.051, F.A.C.

Form F-1120A   Florida Corporate Short Form Income Tax Return          Rule 12C-1.051, F.A.C.

Form F-1120ES  Declaration/Installment of Florida Estimated                             Rule 12C-1.051, F.A.C.
               Income/Franchise Tax

Form F-7004    Florida Tentative Income/Franchise Tax Return and        Rule 12C-1.051, F.A.C.
                                   Application for Extension of Time to File Return     

Form F-1065    Florida Partnership Information Return                                   Rule 12C-1.051, F.A.C.

Form F-2220    Underpayment of Estimated Tax on Florida Corporate    Rule 12C-1.051, F.A.C.
                                   Income/Franchise Tax  

Form F-851     Corporate Income/Franchise Tax Affiliations                              Rule 12C-1.051, F.A.C.
               Schedule

Form F-1120X           Amended Florida Corporate Income/Franchise Tax         Rule 12C-1.051, F.A.C.
                                   Return   

Form F-1122    Authorization and Consent of Subsidiary Corporation                      Rule 12C-1.051, F.A.C.
                                   to be Included in a Consolidated Income Tax Return

Form F-1156Z   Florida Enterprise Zone Jobs Credit Certificate                          Rule 12C-1.051, F.A.C.
               of Eligibility for Corporate Income Tax 

Form F-1158Z   Enterprise Zone Property Tax Credit                                      Rule 12C-1.051, F.A.C.

Form DR-116200 Florida Tax Credit Scholarship Program Notice of                         Rule 12-29.003, F.A.C.
               Intent to Transfer a Tax Credit 

Form DR-336200       The New Worlds Reading Initiative Notice of Intent to              Rule 12-29.003, F.A.C.
                                   Transfer a Tax Credit

Form DR-226200      Strong Families Tax Credit Notice of Intent to                      Rule 12-29.003, F.A.C.
                                   Transfer a Tax Credit





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