Florida Instructions for Preparing Form F-1120

Instructions for Preparing Form F-1120
Form F-1120N
Instructions for
Corporate Income/Franchise Tax Return
for taxable years beginning
on or after January 1, 2023

F-1120N
R. 01/24

Rule 12C-1.051, F.A.C.
Effective 01/24
Page 1 of 17

What's New?
Internship Tax Credit Renamed Experiential
Learning Tax Credit Program; Program
Availability Expanded

A credit is available against Florida corporate income tax
for employing apprentices, preapprentices, and student
interns during taxable years that begin in calendar years
2022 through 2025. The credit is $2,000 per apprentice,
preapprentice, or student intern up to a maximum of five
apprentices, preapprentices, or student interns per year. To
learn more about this credit, or to submit your application, go
to floridarevenue.com/taxes/cit and under Tax Incentives
select the Corporate Income Tax Incentives webpage link. The
Department of Revenue must approve this credit before it can
be taken. Unused credits may be carried forward up to two (2)
taxable years.

Live Local Program Credit

A credit is available against the corporate income tax for
contributions to the Florida Housing Finance Corporation
under the Live Local Program. To learn more about this credit,
or to submit your application, go to
floridarevenue.com/taxes/cit and under Tax Incentives,
select the Corporate Income Tax Incentives webpage link. The
Department of Revenue must approve an allocation of this
credit before it can be taken. Unused credits may be carried
forward up to ten (10) taxable years.

Credit for Qualified Railroad Reconstruction or
Replacement Expenditures
A credit is available against Florida corporate income tax
equal to 50% of a qualifying railroad’s qualified expenditures
in Florida during the taxable year, with certain limitations. To
learn more about this credit, go to
floridarevenue.com/taxes/cit and under Tax Incentives,
select the Corporate Income Tax Incentives webpage link.
Unused credits may be carried forward up to five (5) taxable
years.

Credit for Manufacturing of Human Breast Milk
Derived Human Milk Fortifiers

A credit is available against Florida corporate income tax
equal to 50% of the cost of equipment purchased for use
in the production of human breast milk derived human milk
fortifiers. To learn more about this credit, or to submit your
application, go to floridarevenue.com/taxes/cit and under
Tax Incentives, select the Corporate Income Tax Incentives
webpage link. The Department of Revenue must approve this
credit before it can be taken. Unused credits may be carried
forward up to five (5) taxable years.

Save Time and Paperwork with Electronic Filing
You can file and pay your Florida corporate income tax return
(Florida Form F-1120) electronically through the Internal
Revenue Service’s (IRS) Modernized e-File (MeF) Program
using electronic transmitters approved by the IRS and the
Florida Department of Revenue. The Department also has
an online application for corporate income tax payments and
filing Florida forms F-1120A (Florida Corporate Short Form
Income Tax Return), F-1120ES (Declaration/Installment of
Florida Estimated Income/Franchise Tax), and F-7004 (Florida
Tentative Income/Franchise Tax Return and Application for
Extension of Time to File Return).
You must file and pay electronically if you paid $5,000 or
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.
We encourage you to enroll for eServices. When you enroll in
our eServices program you will receive a user ID and password.
Advantages to enrolling are:
• your bank account and contact information are saved
• the ability to view your filing history
• the ability to reprint your returns
• the ability to view bills posted to your account
Please visit the Department’s website at
floridarevenue.com/taxes/eservices for more information.
If you change your business name, location or mailing
address, or close or sell your business, immediately
notify the Department. The quickest way to notify us is
online. Go to floridarevenue.com/taxes/updateaccount.

What’s Inside
u	
Who

Must File................................... p. 2

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When

to File and Pay....................... p. 2

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Estimated
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Special

Tax................................... p. 4

Instructions......................... p. 4

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Line-by-Line
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Contact

Instructions ............... p. 5

Us........................................p. 17

floridarevenue.com

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Who Must File a Florida Corporate
Income/Franchise Tax Return?
•	 All corporations (including tax-exempt organizations) doing
business, earning income, or existing in Florida.
•	 Every bank and savings association doing business,
earning income, or existing in Florida.
•	 All associations or artificial entities doing business,
earning income, or existing in Florida.
•	 Foreign (out-of-state) corporations that are partners or
members in a Florida partnership or joint venture. A “Florida
partnership” is a partnership doing business, earning income,
or existing in Florida.
•	 A limited liability company (LLC) classified as a
corporation for Florida and federal income tax purposes
is subject to the Florida Income Tax Code and must file a
Florida corporate income tax return.
•	 An LLC classified as a partnership for Florida and federal
income tax purposes must file a Florida Partnership Information
Return (Florida Form F-1065) if one or more of its owners
is a corporation. In addition, the corporate owner of an LLC
classified as a partnership for Florida and federal income tax
purposes must file a Florida corporate income
tax return.
•	 A single member LLC disregarded for Florida and federal
income tax purposes is not required to file a separate Florida
corporate income tax return. The income must be reported
on the owner’s return if the single member LLC is owned,
directly or indirectly, by a corporation. The corporation must
file Florida Form F-1120, reporting its own income and the
income of the single member LLC, even if the only activity of
the corporation is ownership of the single member LLC.
•	 Homeowner and condominium associations that file
federal Form 1120 (U.S. Corporation Income Tax Return)
must file Florida Form F-1120 or F-1120A regardless of
whether any tax may be due. If you file federal Form 1120-H
(U.S. Income Tax Return for Homeowners Associations), you
are not required to file a Florida return.
•	 Political organizations that file federal Form 1120-POL.
•	 S corporations that pay federal income tax on Line 22c of
federal Form 1120S.
•	 Tax-exempt organizations that have “unrelated trade or
business taxable income” for federal income tax purposes are
subject to Florida corporate income tax and must file either
Florida Form F-1120 or F-1120A.

Who is Eligible to File Florida Form F-1120A?

Corporations or other entities subject to Florida corporate
income tax must file Florida Form F-1120 unless qualified to file
Florida Corporate Short Form Income Tax Return, Florida Form
F-1120A.
A corporation qualifies to file Florida Form F-1120A if it meets
ALL the following criteria:
•	 It has Florida net income of $45,000 or less.
•	 It conducts 100% of its business in Florida.
•	 It does not report any additions to and/or subtractions from
federal taxable income other than a net operating loss
deduction and/or state income taxes, if any.

•	 It is not included in a Florida or federal consolidated corporate
income tax return.
•	 It claims no tax credits other than tentative tax payments or
estimated tax payments.

Using Software to Prepare Your Return

If you use commercial software to prepare and file your paper
return:
•	 The Florida Department of Revenue must approve all vendor
software that develops paper tax forms. Ask the vendor for
proof that you are using approved software.
•	 Make sure that the software is for the correct year. You
cannot use 2022 software to produce 2023 tax forms.
Visit floridarevenue.com/taxes/eservices and select “Software
Vendors for eFiling” to obtain a list of approved software
vendors.

When to File and Pay
When is Florida Form F-1120 Due?

Generally, Florida Form F-1120 is due the later of:
(1) For tax years ending June 30, the due date is on or before
the first day of the fourth month following the close of the tax
year. For all other tax year endings, the due date is on or before
the first day of the fifth month following the close of the tax year.
For example, for a taxpayer with a tax year that ends
December 31, 2023, the Florida Form F-1120 is due on or
before May 1, 2024; or
(2) The 15th day following the due date, without extension, for
the filing of the related federal return for the taxable year. For
example, if the federal return is due on May 15, the related
Florida Form F-1120 is due on June 1.
You must file a return, even if no tax is due.
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
Florida corporate income tax returns, go to
floridarevenue.com/taxes/cit/duedates.
If you electronically pay, you must initiate electronic payments
and receive a confirmation number no later than 5 p.m. ET
on the business day prior to the due date to avoid penalty
and interest. See the Florida eServices Calendar of Electronic
Payment Deadlines (DR-659) at floridarevenue.com/forms in
the eServices section for due dates.
Note: A late-filed return will subject a corporation to penalty,
whether or not tax is due.

Extension of Time to File

To apply for an extension of time for filing Florida Form F-1120,
you must complete Florida Form F-7004, Florida Tentative
Income/Franchise Tax Return and Application for Extension
of Time to File Return. To obtain Florida Form F-7004, see
"Contact Us" on page 17.
You can file Florida Form F-7004 electronically through the IRS
MeF Program or online. Go to the Department’s website for
more information.
You must file Florida Form F-7004 to extend your time to
file. A copy of your federal extension alone will not extend
the time for filing your Florida return. See Rule 12C-1.0222,
Florida Administrative Code (F.A.C.), for information on the
requirements that must be met for your request for an extension
of time to be valid.

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You must file Florida Form F-7004 and pay all the tax due
(tentative tax) on or before the original due date of Florida Form
F-1120. An extension of time will be void if:
1)	 Your tentative tax due is not paid.
2)	 You underpay your tax by the greater of $2,000 or 30% of the
tax shown on Florida Form F-1120 when filed.
Extensions are valid for six months, with the exception of
extensions for taxpayers with a June 30 tax year end, which
are valid for seven months. Only one extension may be
granted per tax year.

Payment of Tax

You must pay the amount of tax due, as shown on Line 17 of
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.

Using Payment Credits

When a corporation makes payment using payment credits from
a different Federal Employer Identification Number (FEIN), the
following documentation is required:
•	 Written authorization, including an original signature of a
corporate officer, from the corporation or entity that made the
payment.
•	 The FEIN and complete names of the corporations or entities
involved.
•	 The applied period (taxable year-end) for the payment credits
you are requesting to transfer.
•	 The type of credit and the amount of payment credit you are
requesting to transfer.

Where to Send Payments and Returns

Make checks payable to and send with your return to:
Florida Department of Revenue
5050 W Tennessee St
Tallahassee FL 32399-0135
If you are requesting a refund (Line 19), send your return to:
Florida Department of Revenue
PO Box 6440
Tallahassee FL 32314-6440

Penalties

Late-Filed Return – The penalty for a return filed late is 10% per
month, or fraction thereof, not to exceed 50% of the tax due with
the return. If no tax is due and you file late, the penalty is $50 per
month or fraction thereof, not to exceed $300.
Underpayment of Tentative Tax – The penalty for underpayment
of tentative tax is 12% per year during the extension period on
the underpaid amount. You must calculate the penalty from the
original due date of the return.
Underpayment of Estimated Tax – The penalty for underpayment
of estimated tax is 12% per year. If you underpay your estimated
tax, complete Florida Form F-2220, Underpayment of Estimated
Tax on Florida Corporate Income/Franchise Tax, and attach it to
Florida Form F-1120 (see Line 14 instructions).
Incomplete Return – For an incomplete return, the penalty is
the greater of $300 or 10% of the tax finally determined to be
due, not to exceed $10,000. An incomplete return is one that we
cannot readily handle, verify, or review.
Fraudulent Return – The penalty for filing a false or fraudulent
return is 100% of the deficiency.

Electronic Filing – The penalty is 5% of the tax due for each
month the return is not filed electronically. The penalty cannot
exceed $250 in total. If no tax is due, the penalty is $10.

Interest

A floating rate of interest applies to underpayments, late payments,
and overpayments of corporate income tax. The floating interest
rate is updated on January 1 and July 1 of each year by using the
formula established in s. 220.807, F.S. For information on current
and prior period interest rates, visit
floridarevenue.com/taxes/rates.

Required Attachments

Attach a copy of the actual federal income tax return filed with
the IRS.

You must also attach copies of federal Forms 4562, 851 (or
Florida Form F-851), 1122, 1125-A, Schedule D, Schedule M-3,
and any supporting details for Schedules M-1 and M-2. Attach
other supporting schedules if requested in these instructions.
Do not detach the coupon located at the bottom of the first
page of your Florida Form F-1120 or your account may not
be properly credited.
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
format of the schedules on the return. Enter the taxpayer’s name
and FEIN on all sheets exactly as they appear on the front page
of Florida Form F-1120.

Taxable Year and Accounting Methods

The taxable year and method of accounting must be the same
for Florida income tax as it is for federal income tax. If you
change your taxable year or your method of accounting for
federal income tax, you must also change the taxable year or
method of accounting for Florida income tax.

Rounding Off to Whole-Dollar Amounts

Whole-dollar amounts may be entered on the return and
accompanying schedules. To round off dollar amounts, drop
amounts less than 50 cents to the next lowest dollar and
increase amounts from 50 cents to 99 cents to the next highest
dollar. If you use this method on the federal return, you must use
it on the Florida return.

Federal Employer Identification Number

If you do not have an FEIN, obtain one from the Internal
Revenue Service. You can:
•	 Apply online at irs.gov
•	 Apply by mail with IRS Form SS-4. To obtain this form,
download or order it from irs.gov or call 800-829-3676.

To Amend a Return

You must complete a Florida Form F-1120X, Amended Florida
Corporate Income/Franchise Tax Return, to amend your Florida
corporate income tax return if:
•	 You file an amended federal return.
•	 A redetermination of federal income is made (for example,
through an audit adjustment), and the adjustments would
affect net income subject to the Florida corporate income/
franchise tax.
Go to floridarevenue.com/forms in the Corporate Income Tax
section for Florida Form F-1120X with instructions.

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Estimated Tax (Florida Form F-1120ES)
Who Must Make Estimated Tax Payments?

If you expect the amount of your income tax liability for the
year to be more than $2,500, you must make a declaration
of estimated tax for the taxable year. Use Florida Form
F-1120ES, Declaration/Installment of Florida Estimated
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.

Due Dates for Declaration and Payment

Make your estimated tax payments in four equal installments.
For calendar year filers payments are due on May 31, June 30,
September 30, and December 31. To obtain Florida Form
F-1120ES, visit floridarevenue.com/forms in the Corporate
Income Tax section. The Department does not send reminder
notices for estimated tax installments. Do not annualize
your payments. For a calendar of filing due dates for Florida
corporate income tax returns, go to the Department’s website at
floridarevenue.com/taxes/cit/duedates.
To pay estimated tax, go to floridarevenue.com/taxes/filepay
and select corporate income tax. If filing and/or paying
electronically, see the Florida eServices Calendar of Electronic
Payment Deadlines (Form DR-659).

Short Taxable Years

You must file a separate declaration (Florida Form F-1120ES)
when a return is required for a period of less than 12 months,
unless the short period is less than four months or the
requirement is first met after the first day of the last month in
the short taxable year. When determining if you must file a
declaration of estimated tax for a short taxable year that results
from a change in annual accounting period, you must annualize
your net income for the short period. Multiply the short year’s
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
than $2,500, a declaration is required.

Amended Declaration (Florida Form F-1120ES)

You must base your declaration of estimated tax upon a
reasonable projection of tax liability. Circumstances may develop
during the year that warrant a revision of the original estimated
tax. If the revised estimate differs materially from the original
estimate, file an amended declaration on or before the next
installment due date.

Underpayments of Estimated Tax

If you underpay estimated tax, penalty and interest apply (see
“Penalties” and “Interest” and the instructions for Line 14 on
page 6).

Special Instructions
Consolidated Returns

The privilege of electing to file a Florida consolidated income
tax return is limited to an affiliated group where the parent
corporation is subject to the Florida Income Tax Code and:
1.	 The affiliated group must have filed a consolidated return for
federal income tax purposes.
2. 	The affiliated group electing to file a Florida consolidated
return must be identical to the affiliated group filing the
federal consolidated return.

3. 	In the initial year of election, you must complete Florida
Form F-1122, Authorization and Consent of Subsidiary
Corporation to be Included in a Consolidated Income Tax
Return for each affiliated member. Attach the form to the
Florida consolidated return.
4. 	In subsequent years, a completed Florida Form F-1122 must
be attached for each new member of the affiliated group.
5. 	A copy of federal Form 851 or Florida Form F-851 (Corporate
Income/Franchise Tax Affiliations Schedule) must be
attached.
6. 	You must make the election by the due date of the return,
including properly filed extensions.
The filing of a Florida consolidated tax return for any taxable
year requires the filing of a consolidated return for all subsequent
years, including subsequent additions to the group, even if
the parent subsequently is not subject to Florida tax. For more
information, see section (s.) 220.131, Florida Statutes (F.S.), and
Rule 12C-1.0131, F.A.C.

Florida Net Operating Loss Carryover Deduction
(NOLD)
You may not carry back a Florida net operating loss as a
deduction to a prior taxable year. A net operating loss must
be carried over to subsequent taxable years and treated in
the same manner, to the same extent, and for the same time
periods prescribed in s. 172, Internal Revenue Code (IRC). The
Florida carryover to future tax years is limited to the amount
of the federal net operating loss multiplied by the Florida
apportionment fraction. However, adjustments such as those
listed in s. 220.13(1)(e), F.S., may increase the amount of the
Florida carryover. See Rule 12C-1.013(15), F.A.C.

Note: If you have other Florida carryover deductions, apply them
first before applying your Florida NOLD.
When claiming your Florida NOLD, the following limitations also
apply.
•	
•	
•	
•	

Florida net operating losses generated in taxable years
beginning before January 1, 2018, are carried forward up to
20 taxable years.
Florida net operating losses generated in taxable years
beginning after December 31, 2017, are carried forward
indefinitely until used and never expire.
For taxable years beginning before January 1, 2021, a Florida
net operating loss deduction may be taken against 100% of
Florida tentative apportioned adjusted federal income.
For taxable years beginning after December 31, 2020,
a Florida net operating loss deduction may be taken as
follows:
-	 First, any carryover(s) generated in a taxable year
beginning before January 1, 2018, is applied against
100% of Florida tentative apportioned adjusted federal
income;
-	 Then, any carryover(s) generated in a taxable year
beginning after December 31, 2017, is applied against
80% of the remaining Florida tentative adjusted federal
income.

To support a Florida NOLD, attach a schedule showing the
following information, as applicable:
•	 Tax Year
•	 Adjusted Federal Loss
•	 Apportionment Fraction for the Year of Loss
•	 Florida Apportioned Income/Loss

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•	 Net Operating Loss Carryover (NOLCO) Applied
•	 Florida Portion of Adjusted Federal Income
•	 Net Operating Loss Carry Forward to Next Year

Line-by-Line Instructions for
Completing Florida Form F-1120

See Examples of Florida Net Operating Loss Carry Forward
Schedules on page 16.

Instructions are numbered to correspond with the appropriate
schedule and line numbers.

Include the Florida net operating loss carryover deduction
available on either Schedule II or IV.

Computation of Florida Net Income Tax

If you conduct all of your business in Florida, you must enter
the Florida net operating loss carryover deduction available on
Schedule II, Line 3.
If you are doing business outside Florida, you must enter
zero (0) on Schedule II, Line 3, and the amount of the NOLD on
Schedule IV, Line 4.

Florida Net Capital Loss Carryover Deduction

You may not carry back a Florida net capital loss as a deduction
to a prior taxable year. A net capital loss must be carried over
to subsequent tax years and treated in the same manner, to the
same extent, and for the same periods prescribed in s. 1212, IRC.
The Florida subtraction for net capital loss carryovers is limited to
the portion of the carry forward apportioned to Florida using the
apportionment fraction for the year in which the loss occurred.
To support a deduction, you must attach a schedule showing
how you computed the deduction:
•	 Year(s) of loss,
•	 Apportionment fraction for the taxable year in which the loss
occurred, and
•	 Amount of the carryover(s) previously deducted.
If you conduct all of your business in Florida, you must enter the
Florida net capital loss carryover on Schedule II, Line 4.
If you are doing business outside Florida, you must enter zero
(0) on Schedule II, Line 4, and the Florida portion of net capital
loss carryover on Schedule IV, Line 5.

Florida Excess Contribution Carryover
Deductions

The excess contribution deductions may not create or increase
a net operating loss for Florida. The Florida excess contribution
deduction is the lesser of:
•	 the federal excess contribution limitation apportioned to
Florida in the current year or
•	 the Florida excess contribution carryover.
To support a deduction, you must attach a schedule showing
how you computed the deduction:
•	 Year(s) of federal excess contributions,
•	 Actual contributions made,
•	 Federal contribution limitation,
•	 Amount of excess contributions,
•	 Florida apportionment fraction for the taxable year(s),
•	 Apportioned excess contribution to be carried over, and
•	 Amount of the carryover(s) previously deducted.
Any unused federal limitation must be apportioned as well.
If you conduct all of your business in Florida, you must enter the
Florida excess charitable contribution carryover on Schedule II,
Line 5, and the Florida employee benefit plan contribution
carryover on Schedule II, Line 6.
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
of your excess charitable contribution carryover on Schedule IV,
Line 6, and the Florida portion of your excess employee benefit
plan contribution carryover on Schedule IV, Line 7.

Chapter 220, F.S., provides that corporations and other entities
base Florida net income on federal taxable income with certain
modifications. Such modifications include Florida additions and
subtractions, apportionment, and the Florida exemption.
Line 1 - Federal Taxable Income
Generally, corporations should enter the amount shown on
Line 30 of federal Form 1120 or the corresponding line (taxable
income) of the related federal income tax return.

If a corporation is a member of an affiliated group that filed
a consolidated federal tax return, but the corporation is filing
a separate return for Florida, the amount shown on Line 1 of
the Florida Form F-1120 should be its federal taxable income
computed as if it had filed a separate federal income tax return.
Attach to Florida Form F-1120:
•	 A copy of the related federal consolidated return that was filed.
•	 A statement reconciling the amount reported on Line 1 with
the taxable income shown on Line 30 of the related federal
consolidated return.
•	 Attach a pro forma federal return, which is a federal return as
if the consolidated subsidiary filing separately in Florida had
also filed a separate federal return.
Note: The interest limitation under s.163(j), IRC, is computed at
the filer level. Florida did not follow the CARES Act’s temporary
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)
required on Florida returns for taxable years 2019-2020
because of this decoupling is treated as a disallowed business
interest expense carryforward from prior years for purposes of
computing the subsequent year’s business interest expense.
When you file a Florida consolidated return, the amount that you
should enter is the:
•	 Consolidated federal taxable income from Line 30 of federal
Form 1120, or
•	 Corresponding line (taxable income) of the federal income tax
return filed.
Generally, the Florida consolidated group must be identical to
the federal consolidated group. Also see Consolidated Returns
Instructions (page 4).
S corporations should enter only the amount of income subject
to federal income tax at the corporate level.
Line 2 - State Income Taxes Deducted in Computing Federal
Taxable Income
Enter the total amount of state income taxes deducted on the
federal return in the computation of federal taxable income.
Include the amount deducted for income taxes paid to the
District of Columbia and all states, including Florida. Do not
include taxes based on gross receipts, or income taxes paid to
cities or counties.
Note: You must attach a list to Florida Form F-1120 identifying
the amount of tax and the state to which it was paid.
Line 3 - Additions to Federal Taxable Income
Enter the total amount of additions or adjustments to federal
taxable income shown on Schedule I, Line 27.
Line 4 - Total of Lines 1, 2, and 3.

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Line 5 - Subtractions from Federal Taxable Income
Enter the total amount of subtractions from federal taxable
income shown on Schedule II, Line 13.
Line 6 - Adjusted Federal Income
Subtract Line 5 from Line 4 and enter the difference.
Line 7 - Florida Portion of Adjusted Federal Income
If the taxpayer’s business is entirely within Florida, enter the
amount reported on Line 6 on this line.
If the taxpayer is doing business outside Florida, complete
Schedules III and IV and enter the adjusted federal income
amount from Schedule IV, Line 9.
Line 8 - Nonbusiness Income Allocated to Florida
If the taxpayer’s business is entirely within Florida, enter
zero (0). If the taxpayer is doing business outside Florida, see
the instructions for Schedule R.
Line 9 - Florida Exemption
Section 220.14, F.S., exempts up to $50,000 of Florida net
income. The amount of the exemption is the lesser of $50,000 or
the Florida portion of adjusted federal income plus nonbusiness
income allocated to Florida (Line 7 plus Line 8). If the sum of
Line 7 plus Line 8 is zero or less, enter zero (0).
Florida allows only one $50,000 exemption to the members of
a controlled group of corporations as defined in s.1563, IRC. If
you file a consolidated return, the amount of exemption taken on
Line 9 is limited to the lesser of $50,000 or the Florida portion of
adjusted income plus nonbusiness income allocated to Florida
(Line 7 plus Line 8). If members of the controlled group file
separate returns, follow the instructions for Question G-1.
If the taxable year is less than 12 months, the $50,000
exemption must be prorated. Multiply $50,000 by the number of
days in the short tax year divided by 365.
Line 10 - Florida Net Income
Subtract Line 9 from the sum of Lines 7 and 8 and enter the
difference. If the result is a loss, enter zero (0).
Line 11 - Tax Due
Multiply the amount on Line 10 by the tax rate.
Line 12 - Credits Against the Tax
Enter the total credits against the tax from Schedule V, Line 23.
Credits against the tax cannot exceed the amount of tax due on
Line 11 and cannot create a refund.
Line 13 - Total Corporate Income/Franchise Tax Due
Subtract Line 12 from Line 11.
Line 14 - Penalty and Interest
If you have underpaid estimated tax, you may compute penalty
and interest using Florida Form F-2220 and enter the amounts
on Lines 14(a) and 14(c). To obtain Florida Form F-2220, go to
floridarevenue.com/forms in the Corporate Income Tax section.
Penalty and interest on an underpayment of estimated tax are
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
if the cumulative amount paid or credited for each installment
equals or exceeds the cumulative amount due if the installments
were based on:
•	 At least 90% of the tax finally shown to be due for the taxable
year; or
•	 The tax computed using the prior year facts and income and
current year rates.

Note: The installment amounts that must be paid to meet
the prior year exception are decreased by the amount of any
credit earned for the taxable year under the Florida Tax Credit
Scholarship Program, New Worlds Reading Initiative, Strong
Families Tax Credit Program, Live Local Program, and Credit
for Manufacturing of Human Breast Milk Derived Human Milk
Fortifiers.
Enter any other penalty or interest due on Lines 14(b) and 14(d)
respectively. See also “Penalties” and “Interest” on page 3.
Line 15 - Total of Lines 13 and 14.
Line 16 - Payment Credits
On Line 16(a), enter the total estimated tax payments, if any,
made for the taxable year, plus any carryovers from previous
years or corporate income tax credit memos issued by the
Department. If you filed Florida Form F-7004, enter the tentative
tax paid on Line 16(b). Add the estimated tax payments and the
tentative tax paid (Line 16(a) plus Line 16(b)). Enter that sum
on Line 16. Attach a schedule of payments showing the
amounts paid and dates of each payment.
Line 17 - Total Amount Due
Subtract the amount on Line 16 from Line 15 and enter the
amount due. Also, enter the amount due in the space provided at
the bottom of the front page of Florida Form F-1120. Make your
check payable to the Florida Department of Revenue. If tax was
overpaid, please refer to the instructions for Lines 18 and 19.
Line 18 - Credit
Enter the amount of overpayment you want applied to the
following taxable year as an estimated tax payment. You may
apply any portion of an overpayment as an estimated tax
payment. Also, enter this amount in the space provided at the
bottom of the front page of Florida Form F-1120.
Note: The election to apply an overpayment to the next year’s
estimated tax is irrevocable. For more information, see Rule
12C-1.034(8), F.A.C., titled Special Rules Relating to Estimated Tax.
Line 19 - Refund
Enter the amount of overpayment you want refunded on Line 19.
You may request a refund of any portion of an overpayment.
Also, enter this amount in the space provided at the bottom
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
estimated tax. Sub S corporations must include the Notice of
Acceptance as an S corporation from the IRS if the document
has not been sent to the Department.

Signature and Verification

An officer or person authorized to sign for the entity must sign all
returns. An original signature is required. We will not accept a
photocopy, facsimile, or stamp. A receiver, trustee, assignee, or
other fiduciary must sign any return filed on behalf of the entity.
Any person, firm, or corporation who prepares a return for
compensation must also sign the return and provide:
•	 Federal employer identification number (FEIN).
•	 Preparer tax identification number (PTIN).

Questions A through L

All taxpayers must answer questions A through L.
Question A - Enter the state in which you are incorporated.
Question B - Enter the Florida document number received
from the Florida Secretary of State. For information, contact the

F-1120N
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Department of State, Corporate Information at 850-245-6052 or
visit the website at sunbiz.org.
Question C - Check the appropriate box to indicate if you are
filing a Florida consolidated return.
Question D - Check the “Initial return” box if the return is the
initial Florida return filed. Check “Final return” only if you have
filed a final federal return. When a C Corporation elects to
become an S corporation, the final C return is not considered
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.
Question E - Enter the Principal Business Activity Code that
pertains to Florida business activities. If the Principal Business
Activity Code is unknown, see the “Principal Business Activity
Codes” section of the IRS Instructions for Form 1120.
Question F - Check the appropriate box to indicate if you have
filed a Florida extension of time (Florida Form F-7004). Attach a
copy of Florida Form F-7004, if timely filed.
Question G-1 - Florida allows only one $50,000 exemption to
a controlled group of corporations as defined in s.1563, IRC. If
the taxpayer is a member of a controlled group, attach a list of
the members. Include FEIN, address, and apportioned amount
of the $50,000 exemption for each corporation. If the controlled
group is a parent-subsidiary group, please indicate the parent
corporation on your attached list. Attaching the list shows
consent to an unequal apportionment of the Florida exemption.
Question G-2 - Check the appropriate box to indicate if you are
part of a federal consolidated return. Enter the name and FEIN
from your federal consolidated return.
Question G-3 - Check the appropriate box to indicate if the
federal common parent has sales, property, or payroll in Florida.
Question H - Enter the address where the corporate books and
records are located.
Question I - Check the appropriate box to indicate if you are a
member of a partnership or joint venture that does business in
Florida.
Question J - Provide the date of your latest IRS audit and list
the years examined.
Question K - Provide the name, a telephone number, and email
address of the person to contact regarding this return.
Question L - Indicate the form number of the return filed with
the IRS.

Schedule I – Additions and/or Adjustments to
Federal Taxable Income
Line 1 - Interest Excluded from Federal Taxable Income
Enter the amount of interest excluded from taxable income
under s.103(a), IRC, or any other federal law, less the
associated expenses disallowed in the computation of taxable
income under s. 265, IRC, or any other law. These items will be
included in Schedule M-1 of the federal return.
Line 2 - Undistributed Net Long-Term Capital Gains
If you are a regulated investment company (RIC) or a real estate
investment trust (REIT), enter the undistributed net capital gain
for the taxable year computed pursuant to ss. 852(b)(3)(D) and
857(b)(3)(D), IRC.

Line 3 - Net Operating Loss Deduction
Enter the amount of net operating loss deduction shown on
Line 29(a) of the federal Form 1120 or on the corresponding line
of other federal income tax forms.
Line 4 - Net Capital Loss Carryover
Enter the net capital loss carryover, as defined in s. 1212, IRC,
deducted from capital gains in computing federal taxable income
for the taxable year. Refer to federal Form 1120, Schedule D, for
this adjustment.
Line 5 - Excess Charitable Contribution Carryover
Enter the amount of excess charitable contributions determined
under s. 170(d)(2), IRC, carried forward and deducted in
computing federal taxable income for the taxable year.
Line 6 - Employee Benefit Plan Contribution Carryover
Enter the total amount of excess employee benefit plan
deductions determined under s. 404(a)(1)(E), IRC, (excess
contributions to qualified pension plans) and
s. 404(a)(3)(A)(ii), IRC, (excess contributions to qualified stock
bonus or profit-sharing plans), carried forward and deducted in
computing federal taxable income for the taxable year.
Line 7 - Enterprise Zone Jobs Credit
Enter the amount from Line 3 of Schedule V. This will be the
amount of enterprise zone jobs credit on Florida Form F-1156Z
for the taxable year.
Line 8 - Ad Valorem Taxes Allowable as an Enterprise Zone
Property Tax Credit
Enter the amount from Line 5 of Schedule V. This will be the
portion of the ad valorem taxes paid or incurred for the taxable
year that is allowable as an enterprise zone property tax credit
on Florida Form F-1158Z.
Line 9 - Guaranty Association Assessment(s) Credit
Enter the amount from Line 1 of Schedule V, Florida Health
Maintenance Organization Consumer Assistance Assessment
Credit, and any Florida Life and Health Insurance Guaranty
Association (FLAHIGA) Assessment Credit included on
Schedule V, Line 22.
Line 10 - Rural and/or Urban High-Crime Area Job Tax Credits
Enter the total of the amounts from Lines 6 and 7 of Schedule V.
This is the amount taken as rural and/or urban high-crime area job
tax credits for the taxable year.
Line 11 - State Housing Tax Credit
Enter the amount from Line 11 of Schedule V. This is the
amount taken as the state housing tax credit for the taxable
year.
Line 12 - Florida Tax Credit Scholarship Program Credit
(contributions to nonprofit scholarship-funding organizations
tax credit)
Enter the amount from Line 12 of Schedule V. This is the
amount taken as a credit for the Florida Tax Credit Scholarship
Program. However, if the credit taken has previously been
added to taxable income in a prior taxable year, and is taken
as a deduction for federal tax purposes in the current taxable
year, the amount of the deduction allowed shall not be added to
taxable income in the current year. This exception is intended to
ensure that the credit is added in the applicable taxable year and
does not result in a duplicate addition in a subsequent year.
Line 13 - New Worlds Reading Initiative Credit
Enter the amount from Line 13 of Schedule V. This is the amount
taken for the new worlds reading initiative credit for the taxable year.

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Line 14 - Strong Families Tax Credit (credit for contribution
to eligible charitable organizations)
Enter the amount from Line 14 of Schedule V. This is the amount
taken for the strong families tax credit for the taxable year.
Line 15 - Live Local Program Credit
Enter the amount from Line 15 of Schedule V. This is the
amount taken for the live local program credit for the taxable
year.
Line 16 - New Markets Tax Credit
Enter the amount from Line 16 of Schedule V. This is the
amount taken for the new markets tax credit for the taxable year.
Line 17 - Entertainment Industry Tax Credit
Enter the amount from Line 17 of Schedule V. This is the
amount taken as the entertainment industry tax credit for the
taxable year.
Line 18 - Research and Development Tax Credit
Enter the amount from Line 18 of Schedule V. This is the
amount taken as the research and development tax credit for the
taxable year.
Line 19 - Experiential Learning Tax Credit Program
Enter the amount from Line 19 of Schedule V. This is the amount
of the experiential learning tax credit taken for the taxable year.
Line 20 - Credit for Qualified Railroad Reconstruction or
Replacement Expenditures
Enter the amount from Line 20 of Schedule V. This is the
amount taken as a credit for qualified railroad reconstruction or
replacement expenditures for the taxable year.
Line 21 - Credit for Manufacturing of Human Breast Milk
Derived Human Milk Fortifiers
Enter the amount from Line 21 of Schedule V. This is the amount
taken as a credit for manufacturing of human breast milk derived
human milk fortifiers for the taxable year.
Line 22 - s. 168(k), IRC, Special Bonus Depreciation
Enter all amounts claimed as a special depreciation allowance
under IRC s. 168(k) for property placed in service before
January 1, 2027.
Line 23 - Depreciation of Qualified Improvement Property
Enter the depreciation taken in the computation of federal taxable
income on qualified improvement property placed in service on or
after January 1, 2018.

(1) 	Partnership adjustment.
	 Florida adjusted federal ordinary partnership income or
loss is based on the federal ordinary partnership income
or loss with certain modifications (Florida additions and
subtractions). To the extent that such modifications increase
the taxpayer’s distributive share of partnership income or loss
included in its federal income tax return, you must include an
appropriate addition as determined on Florida Form F-1065.
(2) Consolidated income adjustment.
	 No consolidated income adjustment is necessary unless the
corporation made an election under s. 220.131(1), F.S., within
90 days of December 20, 1984, or upon filing the taxpayer’s
first return after December 20, 1984, to file a consolidated
return on the same basis as its consolidated returns filed prior
to July 19, 1983. Attach a schedule showing the computation
of federal taxable income for the Florida affiliated group and
the amounts included in the net positive or negative (using a
negative sign) adjustment.
(3)	Depreciation adjustment.
	 The required depreciation adjustment is for Election A and
Election B taxpayers.

	

	“Election B” means the election made by taxpayers for
taxable years beginning prior to January 1, 1987, pursuant to
s. 220.03(5)(c), F.S., to report and pay the corporate income/
franchise tax as if the Internal Revenue Code of 1954,
as amended and in effect on January 1, 1980, is in effect
indefinitely. Taxpayers who made Election B are required to
make a depreciation adjustment in computing the corporate
income/franchise tax if any depreciable assets were placed in
service between January 1, 1981, and December 31, 1986.
	

If bonus depreciation was taken on the qualified improvement
property and the bonus depreciation was included on Line 22, it
should not be added back again on this line.
Line 24 - Expenses for Business Meals Provided by a
Restaurant
Enter the portion of the business meal expense deduction taken
in the computation of federal taxable income that exceeds the
amount that would have been allowed without application of
Public Law 116-260, Division EE, Title II, s. 210, which made
business meals provided by a restaurant 100% deductible
instead of 50% deductible. This addition applies to taxable years
beginning on or after January 1, 2021, and before January 1, 2026.
Line 25 - Film, Television, and Live Theatrical Production
Expenses
Enter the deduction taken in the computation of federal taxable
income under s. 181, IRC. This addition applies to taxable years
beginning on or after January 1, 2021, and before January 1, 2026.
Line 26 - Other Additions
Attach explanatory schedules. Examples:

“Election A” means the election made by taxpayers for
taxable years beginning prior to January 1, 1987, pursuant
to s. 220.03(5)(b), F.S., to report and pay the corporate
income/franchise tax as if the amendments to the Internal
Revenue Code that were enacted after January 1, 1980,
and before January 1, 1982, became effective on
January 1, 1982. Taxpayers who made Election A are
required to make a depreciation adjustment in computing the
corporate income/franchise tax if any depreciable assets
were placed in service between January 1, 1981, and
December 31, 1981.

If a consolidated Florida corporate income/franchise tax
return is filed, a separate schedule listing the name, address,
FEIN, and the depreciation election (General Rule, which
was for the emergency excise tax that has been phased out,
Election A, or Election B) of each included corporation must
be attached.
The depreciation adjustment will include the positive or
negative difference, if any, between the depreciation
deducted as shown on federal Form 4562 for these assets
and the depreciation allowable for these assets under the
Internal Revenue Code of 1954, as amended and in effect
on January 1, 1980. Attach a copy of federal Form 4562 and
a statement setting forth the details of the adjustment.

	

If a taxpayer is governed by Election A or Election B and
directly or indirectly owns an interest in a partnership, trust,
or other entity not taxable as a corporation, it must include
in its adjustment its distributive share of any depreciation
difference. The difference in the depreciation for the
partnership, trust, or other entity should be computed
in the same manner explained above for Election A
or Election B. The taxpayer’s distributive share of the

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depreciation difference computed should be added to the
difference computed under Election A or Election B on the
taxpayer’s assets. You must attach a copy of the underlying
entity’s federal Form 4562 and a statement setting forth the
details of the adjustment.
Line 27 - Total
Enter the sum of Lines 1 through 26 on this line and on the front
page of Florida Form F-1120, Line 3.

Schedule II – Subtractions from Federal Taxable
Income

Taxpayers may not subtract from federal taxable income for
Social Security and Medicare taxes paid on certain employee tip
income when such taxes are taken as a credit on their federal
corporate income tax return as part of the federal General
Business Credit. Florida Statutes do not provide a similar credit
for Florida income tax purposes, nor is there a provision for a
subtraction from federal income for the taxes taken as a federal
tax credit.
Line 1 - Gross Foreign Source Income Less Attributable
Expenses
Enter all amounts included in federal taxable income under
s. 78, IRC, on Line 1(a). Enter dividends treated as received from
sources outside the United States, as determined under s. 862,
IRC, on Line 1(b). Enter income under s. 951A, IRC, on Line 1(c).
Enter the total of expenses directly and indirectly attributable to
ss. 78, 862, and 951A, IRC, and related amounts deducted under
s. 250, IRC, on Line 1(d). Add s. 78 income plus s. 862 dividends
plus s. 951A income and subtract expenses [1(a) + 1(b) + 1(c) –
1(d)]. Enter result on Line 1.
Line 2 - Gross Subpart F Income Less Attributable Expenses
Enter the subpart F income included in federal taxable income
under s. 951, IRC, on Line 2(a). Enter the total of expenses
directly and indirectly attributable to s. 951, IRC, on Line 2(b).
Subtract the attributable expenses from the subpart F income
(2[a] - 2[b]). Include copies of all IRS forms, schedules, and
worksheets associated with IRS Form 5471.
Note: Taxpayers doing business outside Florida enter zero (0)
on Lines 3, 4, 5, and 6 and complete Lines 4, 5, 6, 7, and 8 of
Schedule IV.
Line 3 - Florida Net Operating Loss Carryover Deduction
See Florida Net Operating Loss Carryover Deduction (NOLD)
instructions (page 4).
Line 4 - Florida Net Capital Loss Carryover Deduction
See Florida Net Capital Loss Carryover Deduction instructions
(page 5).
Line 5 - Florida Excess Charitable Contribution Carryover
See Florida Excess Contribution Carryover Deductions
instructions (page 5).
Line 6 - Florida Employee Benefit Plan Contribution Carryover
See Florida Excess Contribution Carryover Deductions
instructions (page 5).
Line 7 - Nonbusiness Income
If the taxpayer’s business is entirely within Florida, enter zero (0).
If the taxpayer is doing business outside Florida, enter the amount
of nonbusiness income included in federal taxable income from
Schedule R, Line 3. See Instructions for Schedule R (page 15).
Line 8 - Eligible Net Income of an International Banking Facility
The eligible net income of an international banking facility is
allowed as a deduction from adjusted federal income, to the

extent not deductible in determining federal taxable income or
subtracted pursuant to s. 220.13(1)(b)2., F.S. See ss. 220.63(5)
and 220.62(3), F.S., for a detailed explanation of the computation
of eligible net income and a definition of international banking
facility.
Line 9 - s. 168(k), IRC, Special Bonus Depreciation
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
to a taxpayer through a subtraction over a seven-year period of
one seventh of the amount of the addition, beginning with the tax
year of the addition. Attach a schedule showing the taxable year
and amount of the original addition, the amount of the original
addition for qualified improvement property placed in service on
or after January 1, 2018, and the amount of the subtraction by
taxable year. Enter the amount to be subtracted this year.
Line 10 - Depreciation of Qualified Improvement Property
The recovery of amounts required to be added back to federal
taxable income for qualified improvement property placed in
service on or after January 1, 2018 (Schedule I, Line 23, and the
portion related to such property added back on Schedule I,
Line 22) is provided back to a taxpayer through a subtraction on
this line. The subtraction is limited to the depreciation that would
have been allowed under the IRC in effect on January 1, 2020,
without retroactive changes made by the CARES Act, and without
taking into account any sale or other disposition of the property.
Attach a schedule showing the taxable year and amount of the
original addition and the amount of the subtraction by taxable
year. Enter the amount to be subtracted this year.
Line 11 - Film, Television, and Live Theatrical Production
Expenses
The recovery of amounts required to be added back for film,
television, and live theatrical productions on Schedule I,
Line 25 is provided back to a taxpayer through a subtraction on
this line. The subtraction is limited to the deduction that would
have been allowed without application of s. 181, IRC, if any.
Attach a schedule showing the taxable year and amount of the
original addition and the amount of the subtraction by taxable
year. Enter the amount to be subtracted this year.
Line 12 - Other Subtractions
Enter any other item required to be subtracted as an adjustment
to compute adjusted federal income.
Attach explanatory schedules. Examples:
(1) Partnership adjustment. Florida adjusted federal ordinary
partnership income or loss is based on the federal ordinary
partnership income or loss with certain modifications
(Florida additions and subtractions). To the extent that such
modifications decrease the taxpayer’s distributive share of
partnership income or loss included in its federal income
tax return, you must include an appropriate subtraction as
determined on Florida Form F-1065.
(2) Certain foreign taxes. Enter the amount of taxes of foreign
countries allowable as credits under s. 901, IRC, to any
corporation that derived less than 20% of its gross income or
loss for its taxable year ending in 1984 from sources within
the United States, as described in s. 861(a)(2)(A), IRC, not
including withholding taxes specified in s. 220.13(1)(b)5., F.S.
Line 13 - Total
Enter the sum of Lines 1 through 12 on this line and on the front
page of Florida Form F-1120, Line 5.

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Schedule III – Apportionment of Adjusted Federal
Income
Florida taxpayers doing business outside Florida are required
to apportion their business income to Florida based upon a
three-factor formula (average value of property, payroll, and
sales factors), except for insurance companies, transportation
companies, citrus processing companies, taxpayers granted
permission to use a single sales factor under s. 220.153, F.S.,
and taxpayers who have been given prior permission by the
Department to apportion income using a different method under
s. 220.152, F.S.

Florida does not allow a taxpayer to apportion income if it is not
doing business outside the state. Making only sales in another
state without property or payroll in that state does not automatically
indicate a taxpayer is “doing business” in a state other than Florida.
See Rule 12C-1.015, F.A.C., for further information about when a
Florida corporation may apportion income.
The three-factor formula measures Florida’s share of adjusted
federal income by ratios of the taxpayer’s property, payroll, and
sales in Florida to total property, payroll, and sales located or
occurring everywhere. The apportionment factors are weighted as
follows: 25% to property, 25% to payroll, and 50% to sales.
Note: If the amount reported in Schedule III-A, Column (b) for either
the property or payroll factor is zero, the weighted percentage
for the other factor will be 33-1/3% and the weighted percentage
for the sales factor will be 66-2/3%. If the amount reported in
Schedule III-A, Column (b) for the sales factor is zero, the weighted
percentage for the property and payroll factors will change from
25% to 50% each. If the amounts reported in Schedule III-A,
Column (b) for any two factors are zero, the weighted percentage
for the remaining factor will be 100%.
All amounts related to nonbusiness income, income related
to ss. 78, 862, 951, and 951A, IRC, and any other income not
included in the adjusted federal income (Florida Form F-1120,
Line 6) must be excluded from the apportionment factors.
III-A Line 1. Average Value of Property
The property factor is a fraction. The numerator of this fraction
is the average value of real and tangible personal property
owned or rented and used during the taxable year in Florida.
The denominator is the average value of such property owned or
rented and used everywhere during the taxable year.
Property owned is valued at original cost, without regard to
accumulated depreciation. Property rented is valued at eight times
the net annual rental rate. You must reduce the net annual rental
rate by the annual rental rate received from sub-rentals.
Compute the average value of property using Schedule III-B. On
Lines 1 through 4 of this schedule, enter the beginning-of-year
and end-of-year balances for property owned and used within
Florida, as well as property owned and used everywhere. Compute
the average value using the formula provided on Line 6. Enter
the value of rented property on Line 7. Add Lines 6a and 7a and
enter the Florida average on Line 8a of Schedule III-B and on
Schedule III-A, Line 1, Column (a). Likewise, add Lines 6b and 7b
and enter the everywhere average on Line 8b of Schedule III-B and
on Schedule III-A, Line 1, Column (b).
If substantial fluctuations in the values of the property exist during
the tax period or where you acquired property after the beginning
of the tax period or disposed of property before the end of the tax
period, the Department may require or allow monthly averaging
of property values. If monthly averages are used, you must attach
appropriate schedules.

For corporations not included within the definition of a financial
organization, intangible personal property will not be included
in the property factor. The property factor used by a financial
organization must include intangible personal property, except
goodwill, owned and used in the business. The term “financial
organization” includes any bank, trust company, savings bank,
industrial bank, land bank, safe deposit company, private banker,
savings and loan association, credit union, cooperative bank,
small loan company, sales finance company, or investment
company.
The intangible personal property will be valued at its tax basis for
federal income tax purposes. Florida considers intangible personal
property to be in Florida if it consists of any of the following:
(a)	Coin or currency located in Florida.
(b)	Assets in the nature of loans located in Florida, including	
balances due from depository institutions, repurchase
agreements, federal funds sold, and bankers’ acceptances.
(c)	Installment obligations on loans for which the customer initially
applied at an office located in Florida.
(d)	Loans secured by mortgages, deeds of trust, or other liens
upon real or tangible personal property located in Florida.
(e)	A portion of a participation loan where the office that enters
into the participation is located in Florida.
(f)	 Credit card receivables from customers who reside or who are
commercially domiciled in Florida.
(g)	Investments in securities that generate business income where
the taxpayer’s commercial domicile is in Florida, unless such
securities have acquired a discrete business situs elsewhere.
(h)	Securities held by a state treasurer or other public official or
pledged to secure public funds or trust funds deposited with
the taxpayer, if the office where the secured deposits are
maintained is in Florida.
(i)	 Leases of tangible personal property where the taxpayer’s
commercial domicile is in Florida, unless the taxpayer
establishes that the location of the leased tangible property is
in another state or states for the entire taxable year and the
taxpayer is taxable in such other state or states.
(j)	 Installment sale agreements originally executed by a taxpayer
or its agent to sell real or tangible personal property located in
Florida.
(k)	Any other intangible personal property located in Florida used
to generate business income.
III-A Line 2. Payroll
The payroll factor is a fraction. The numerator of this fraction is the
total amount paid to employees in Florida during the taxable year
for compensation. The denominator is the total compensation
paid to employees everywhere during the taxable year. Enter
the numerator in Schedule III-A, Line 2, Column (a). Enter the
denominator in Schedule III-A, Line 2, Column (b). For purposes
of this factor, compensation is paid within Florida if:
(a)	The employee’s service is performed entirely within Florida, or
(b)	The employee’s service is performed both within and outside
Florida, but the service performed outside Florida is incidental
to the employee’s service, or
(c)	Some of the employee’s service is performed in Florida and
either the base of operations or the place from which the
service is directed or controlled is in Florida, or the base of
operations or place from which the service is controlled is not
in any state in which some part of the service is performed and
the employee’s residence is in Florida.
The taxpayer must attach a statement listing all compensation
paid or accrued for the taxable year other than that shown
on federal Form 1125-A, federal Form 1125-E (if required to
complete for federal tax purposes), or federal Form 1120.

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Sponsored Research and Development Contracts through a
University
The payroll factor excludes compensation paid to a Florida
employee and the property factor excludes any real or tangible
personal property located in Florida certified as dedicated
exclusively to the activities of sponsored research and
development contracts through a state university or a non-public
Florida chartered university conducting graduate programs at the
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.
Attach a copy of the certification letter, received from the Board
of Governors of the State University System or the university
president, to the return. Also, the taxpayer must include the
schedule of items, as certified by the university, excluded from
the payroll and property factors.
III-A Line 3. Sales Factor
The sales factor is a fraction. The numerator of this fraction is the
total sales of the taxpayer in Florida during the taxable year. The
denominator is the total sales of the taxpayer everywhere during
the taxable year. Use Schedule III-C to calculate the sales factor.
Enter the numerator on Schedule III-A, Line 3, Column (a) and the
denominator on Schedule III-A, Line 3, Column (b).
Florida defines the term “sales” as gross receipts without regard
to returns or allowances. The term “sales” is not limited to
tangible personal property, and includes:
(a)	Rental or royalty income, if such income is significant in the
taxpayer’s business.
(b)	Interest received on deferred payments of sales of real or
tangible personal property.
(c)	Income from the sale, licensing, or other use of intangible
personal property.
(d)	Sales of services.
(e)	For financial organizations, income from intangible personal
property.
Making only sales in another state without property or payroll in
that state does not automatically indicate a taxpayer is “doing
business” in a state other than Florida. See Rule 12C-1.015,
F.A.C., for further information about when a Florida corporation
may apportion income.
Sales will be attributable to Florida using the following criteria:
(a)	Sales of tangible personal property will be “Florida sales” if the
property is delivered or shipped to a purchaser within Florida.
(b)	Rentals will be “Florida sales” if the real or tangible personal
property is in Florida.
(c)	Interest received on deferred payments of sales of real or
tangible personal property will be included in “Florida sales” if
the sale of the property is in Florida.
(d)	Sales of service organizations are within Florida if the services
are performed in Florida.
For a financial organization, “Florida sales” will also include:
(a)	Fees, commissions, or other compensation for financial
services rendered within Florida.
(b)	Gross profits from trading in stocks, bonds, or other securities
managed within Florida.
(c)	Interest, other than interest from loans secured by
mortgages, deeds of trust, or other liens upon real or tangible
property located outside Florida.
(d)	Dividends received within Florida.
(e)	Interest for carrying debit balances on margin accounts,
charged to customers at their business locations in Florida,
without deducting any costs for carrying such accounts.

(f)	 Interest, fees, commissions, and other charges or gains from
loans secured by mortgages, deeds of trust, or other liens
upon real or tangible personal property located in Florida or
from installment sale agreements originally executed by a
taxpayer or its agent to sell real or tangible personal property
located in Florida.
(g)	Any other gross income, including other interest, resulting
from the operation as a financial organization within Florida.
III-A Line 4. Apportionment Fraction
For Lines 1, 2, and 3 of Schedule III-A, divide the amount in
Column (a) by the amount in Column (b). Round the result to
six decimal places. Enter the result in Column (c) of Schedule
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
in Column (d). Round the result to six decimal places. Enter the
result in Column (e).
To compute the Florida apportionment fraction, add the weighted
factors on Schedule III-A, Lines 1, 2, and 3 of Column (e). Enter
the total on Schedule III-A, Line 4 and on Schedule IV, Line 2.
III-D. Special Apportionment Fractions
Insurance Companies
Insurance companies apportion adjus