Florida Chamber of Commerce’s support of federal R&D Tax Credit reforms last year paid off recently when Congress authorized a package extending 2015 tax credits for U.S. businesses and households indefinitely, surpassing previous one-year extensions.
The Research & Experimentation Tax Credit, or R&D Tax Credit, is a general business tax credit under Internal Revenue Code section 41 for companies incurring research and development (R&D) costs in the U.S. Florida’s R&D Tax Credit depends on the federal R&D level, so when national standing changes it affects Florida’s status.
Tallahassee-based Florida Chamber of Commerce backed the extension by encouraging legislators to uphold the measure, which passed during a 2015 Legislative Special Session. Consequently, $23 million in tax credits is available, with an application period scheduled for March.
If applications exceed the available funding cap, credits will be pro-rated. In the future, Florida’s R&D credit will have a ceiling of $9 million, barring further congressional action. The Florida Chamber testified in November in front of the Florida House Finance & Tax Committee to advocate for an increase from $9 million to $23 million.
The advantage of rendering the federal R&D Tax Credit permanent is greater certainty for research and development enterprises, which would be able to adhere to one uniform set of standards instead of disparate state and federal requirements.
Want to get notified whenever we write about any of these organizations ?
Sign-up Next time we write about any of these organizations, we'll email you a link to the story. You may edit your settings or unsubscribe at any time.