Florida’s Home Away From Home Tax Credit: Allocation, Compliance, and Planning Considerations for 2026

Overview of the Home Away From Home Tax Credit (Florida)

Florida’s Home Away From Home Tax Credit is a newly enacted multi-tax credit program designed to encourage private financial support for charitable organizations that provide housing to families of critically ill children. Created by the Florida Legislature in 2025, the program allows eligible taxpayers to receive dollar-for-dollar Florida tax credits for qualifying charitable contributions.

The program is administered jointly by the Florida Department of Revenue (FDOR) and the Florida Department of Health (FDOH). While the Department of Revenue oversees tax credit allocations and compliance, the Department of Health is responsible for designating eligible charitable organizations.

Beginning with the 2026–2027 state fiscal year, the program is subject to an annual statewide cap of $13 million in available credits. Applications for credit allocations open at 9:00 a.m. Eastern Time on January 2, 2026, and credits are awarded on a first-come, first-served basis.

Statutory Authority and Legislative Purpose

The Home Away From Home Tax Credit is authorized under section 220.18775, Florida Statutes, which was added as part of Florida’s 2025 tax legislation. The statute establishes a tax credit for monetary contributions made to qualifying charitable organizations that provide housing to families of critically ill children while those children undergo medical treatment.

The Legislature’s intent is to reduce the financial and logistical burden faced by families during serious medical events by incentivizing private-sector contributions. By offering tax credits rather than deductions, the program directs private capital into mission-driven housing services that support families during periods of acute medical need.

Florida Taxes Eligible for the Credit

One of the distinguishing features of the Home Away From Home Tax Credit is its multi-tax applicability. According to Florida Department of Revenue Tax Information Publication (TIP) No. 25ADM-02, credits may be applied against the following Florida taxes:

• Florida corporate income tax

• Florida excise tax on liquor, wine, and malt beverages

• Florida insurance premium tax

This flexibility allows businesses operating in different industries to benefit from the program, unlike many state tax credits that apply only to a single tax type.

Eligible Charitable Organizations

Tax credits are available only for contributions made to charitable organizations designated as eligible by the Florida Department of Health. The Department of Health maintains and publishes a list of eligible organizations on its Home Away From Home Tax Credit webpage.

To qualify for designation, an organization must:

• Be exempt from federal income tax under IRC section 501(c)(3)

• Be a Florida-based entity with its principal office located in the state

• Provide housing at minimal or no cost to families of critically ill children

• Submit required documentation and annual attestations confirming compliance

These requirements ensure that contributions support organizations directly engaged in providing housing and related services, rather than general charitable activities.

Credit Allocation Application Process

Taxpayers seeking to claim the Home Away From Home Tax Credit must first apply to the Florida Department of Revenue for a credit allocation before making a contribution.

Key features of the allocation process include:

• Applications are submitted through the Department’s online Multi-Tax Credits portal

• Allocations are granted on a first-come, first-served basis

• Applications open January 2, 2026, at 9:00 a.m. Eastern Time

Each application must identify:

• The specific tax against which the credit will be applied

• The applicable taxable year

• The eligible charitable organization receiving the contribution

• The total contribution amount and allocation by tax type

Once an application is approved, the Department notifies both the taxpayer and the charitable organization within 10 days. Approval alone does not authorize the credit—the contribution must still be made and documented.

Claiming the Credit and Documentation Requirements

After receiving an approved allocation, a taxpayer must complete the following steps to properly claim the credit:

1. Make the approved monetary contribution to the designated charitable organization

2. Obtain a Certificate of Contribution from the organization confirming the amount and date of the contribution

3. Claim the credit on the applicable Florida tax return for the taxable year in which the contribution was made

The Certificate of Contribution must be retained as supporting documentation. Credits may only be claimed for contributions that are actually paid and properly certified.

Carryforward, Transfer, and Rescission Rules

If a taxpayer cannot fully utilize the credit in the year it is earned, any unused portion may be carried forward for up to 10 years, providing long-term tax planning flexibility.

The statute and Department guidance also permit affiliated group transfers, allowing credits to be transferred to another member of the same affiliated group, subject to Department approval and provided the credit type remains unchanged.

Taxpayers may also rescind all or part of an allocated credit they do not intend to use. Rescinded credits are returned to the pool and may be reallocated to other taxpayers, subject to Department approval.

Planning Considerations and Compliance Risks

Because the Home Away From Home Tax Credit is capped and allocated on a first-come basis, early planning is critical. Taxpayers intending to participate should prepare application materials well in advance of the January 2 opening date.

Additional considerations include:

• Coordinating the credit with other Florida tax credits

• Ensuring compliance with electronic filing and payment requirements

• Properly timing contributions to align with the intended tax year

• Maintaining complete and accurate documentation

Failure to follow allocation procedures, contribution timing rules, or documentation requirements may result in disallowed credits and potential compliance issues.