Florida Expands Strong Families Tax Credit, Announces New Application Period

TALLAHASSEE, Fla. — The Florida Department of Revenue has announced legislative changes that will expand the state's Strong Families Tax Credit program, increasing the total amount of available credits for participating businesses beginning in the 2026–2027 fiscal year.

While specific details on the new credit cap are forthcoming, the announcement signals a significant enhancement to the popular program, which provides corporations with a dollar-for-dollar credit against several state taxes for contributions made to eligible charitable organizations focused on child welfare.

The Strong Families Tax Credit program was established in 2021 to incentivize private sector support for non-profits that provide services to at-risk families, including child abuse prevention, support for fathers, aid for families with disabled children, and job placement assistance for parents. The program allows businesses to redirect their tax dollars to community-based organizations that are approved by the Florida Department of Children and Families (DCF).

Under the current structure for the 2024-2025 fiscal year, the program has an annual cap of $40 million in available credits. These credits are highly sought after and are allocated on a first-come, first-served basis. According to the Department of Revenue, the application window for each fiscal year opens on the first business day of January. For the current cycle, applications opened at 9:00 a.m. Eastern Time on January 2, 2024.

Historically, the entire allocation of credits is claimed very quickly, often within the first day or even hours of the application portal opening, underscoring the program's popularity and the need for businesses to be prepared.

Any corporate taxpayer in Florida is eligible to participate. The tax credit can be used to offset liability for Florida's corporate income/franchise tax, insurance premium tax, and use tax for direct pay permit holders, among others. This flexibility makes it an attractive option for a wide range of industries operating within the state.

The process requires businesses to first apply to the Department of Revenue for an allocation of the tax credit. Once the application is approved, the business makes its monetary contribution to a designated, eligible charitable organization. The business then receives a certificate of contribution to be filed with its state tax return.

One of the program's key features is its financial flexibility. If a business cannot use the full amount of its approved tax credit in a single tax year, the unused portion can be carried forward for up to 10 years, allowing for long-term tax planning.

For a non-profit organization to become an eligible recipient of these corporate contributions, it must meet stringent criteria set by the DCF. According to section 402.62 of the Florida Statutes, an organization must be a federally recognized 501(c)(3) entity, be formed and headquartered in Florida, and provide direct services to at-risk families that do not have an open dependency case with the state.

Furthermore, these charities must conduct Level 2 background screenings on all staff and volunteers who work directly with children. They are also required to submit to an annual audit by an independent certified public accountant and provide the state with their most recent IRS Form 990. These requirements are designed to ensure accountability and that 100 percent of the contributions are used for direct services to Florida residents.

In our experience, while dollar-for-dollar tax credits are incredibly attractive, the operational reality can be challenging for busy companies. The Strong Families Tax Credit is a prime example. Because the credits are capped and allocated on a first-come, first-served basis, securing them requires proactive planning long before tax season. It's not simply a matter of writing a check; it involves monitoring application windows, accurately forecasting tax liabilities across different state taxes, and ensuring the chosen charity meets all state requirements. We've seen businesses miss out because they treated it as a year-end task rather than a strategic financial move. This is where expert guidance becomes critical. Our tax preparation and compliance services help clients integrate these opportunities into their overall financial strategy, ensuring they can capitalize on valuable programs like this without disrupting their core operations. To navigate these complexities effectively, businesses can contact C&S Finance Group LLC at csfinancegroup.com.

As Florida businesses look toward future tax years, they will be awaiting further guidance from the Department of Revenue on the specifics of the program's expansion for the 2026-2027 fiscal year. The announced administrative modifications and the increased credit cap will likely draw even more interest to the program, making timely and strategic application more critical than ever.