Florida Tax Credit Scholarship Program – Insurance Premium Tax

AAA Scholarship Foundation (AAA) is a 501 (c)(3) nonprofit organization and state approved Scholarship Funding Organization (SFO) that exclusively serves eligible low income children through the Florida Tax Credit Scholarship Program which allows any company that pays Florida insurance premium tax to redirect up to 100 percent of its tax liability (after the application of any other allowable credits) to AAA in order to fund K-12 education scholarships for eligible, low-income children. It costs you NO extra dollars – the legislature has made it possible for your company to earmark up to 100 percent of its premium tax payments to fund low-income student scholarships.ⁱ

The process to enroll is very simple. Just click on this link to visit the FL DOR’s web application and choose AAA Scholarship Foundation under the Contribution Section. Upon completing your enrollment on the DOR website, please send your DOR confirmation e-mail to Kim Dyson at Kim@aaascholarships.org and she will send you a payment reminder and remittance instructions.

Once you have received your approval from the DOR, you can remit up to that amount directly to AAA via check, wire or ACH by December 31, 2017. Your remittances may also be made by the estimated tax installment due dates in order to help meet the prior year exception rule. You will receive a written acknowledgement from AAA. A copy of the acknowledgement must be included with your tax return to support the amount of tax credit taken. It’s important to remember that the approval process does not oblige you to remit the funds to AAA-it is merely a way for the DOR to ensure that the annual maximum ($699 million for 2017) in tax credits is not over-subscribed.

If the company determines that it has insufficient tax liability to take the full credit (amount remitted is greater than 100 percent of net tax liability), it may carry forward each year using the DOR’s same online form that it used to apply for the credit.

A company using the “general”, “standard” or “alternative” method of determining its estimated quarterly payments should net the remittance amount from its state tax liability (after the application of any other allowable credits). For insurance premium tax credit purposes, the credit for the FTC Scholarship Program is on Line 10 of Schedule III (Credits Against the Premium Tax) on Form DR-908. Please note that any state tax liability remaining after the remittance is netted should be paid as normal estimated tax payments to the Florida DOR.

To View the PDF Version, Click Here.

To Access the Tax Credit Application, Click Here