Florida R&D Tax Credit Filing Instructions
To claim the Research and Development (R&D) tax credit in Florida, eligible businesses, primarily C corporations in specific target industries (such as manufacturing, life sciences, and technology), must first secure a certification letter from the Florida Department of Commerce (FloridaCommerce) confirming their status as a qualified target industry business. This certification is generally valid for up to three years. Once certified, businesses can apply for an allocation of the R&D tax credit with the Florida Department of Revenue (DOR) by filing Form F-1196, Allocation for Research and Development Tax Credit for Florida Corporate Income/Franchise Tax. Applications are typically accepted online between March 20 and March 26 each year for qualified research expenses incurred in the prior calendar year. It’s crucial to note that there’s an annual statewide cap on the total amount of credits awarded, which are distributed on a first-come, first-served basis. Businesses must also have claimed the federal R&D tax credit under IRC Section 41 for the same tax year to be eligible for the Florida credit.