New Bill Brings New Rules to the Florida R&D Tax Credit

With the passing of House Bill 33a in 2015, several changes have been made to Florida’s R&D Tax Credit. Florida has changed the annual limit on the research and development corporate tax credit for the March 2016 application period to $23 million from the usual $9 million cap. After 2016, the available credit returns to $9 million. The bill also applies further restrictions on which types of industries can claim the credit, and changes the distribution of credits to eligible applicants from first-come, first-serve to a prorated basis.

The eligible target industries include the following:

  • Manufacturing
  • Life Sciences
  • Information Technology
  • Aviation and Aerospace
  • Homeland Security and Defense
  • Cloud Information Technology
  • Marine Sciences
  • Materials Science
  • Nanotechnology

A business applying for the Florida R&D tax credit must include a letter from the Department of Economic Opportunity confirming its eligibility.

Applications must be filed on or after March 20th and before March 27th  for R&D expenses incurred during the previous year. The $23 million cap for the 2016 application period will be granted for R&D expenses incurred in calendar year 2015. If total credits for all applicants surpass the maximum allowed, credits are granted on a prorated basis.

If you are interested in claiming the R&D tax credit in Florida, please contact a Swanson Reed specialist for more information. 


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