Florida’s Department of Revenue (DOR) recently announced from its Tallahassee offices that it will begin accepting applications for the R&D Tax Credit against the Corporate Income Tax for tax year 2015 on Sunday, March 20.
The application will be available online up until 11:59 p.m. March 26. Up to $23 million in credits will be awarded during that time frame. If applications exceed the cap, funds will be awarded on a pro-rata basis.
The Florida Chamber reported that despite having worked closely with several key state legislators — including Representatives Ed Narain (D-Tampa), Jay Fant (R-Jacksonville), Matt Gaetz (R-Shalimar) and Senator Jeff Brandes (R- St. Petersburg) — during the 2016 Legislative Session, efforts to increase the maximum number of tax credits for next fiscal year were unsuccessful. The 2017 application period will thus see the same amount — $9 million — awarded as in 2016, with pro-rated benefits if applications surpass that ceiling.
Businesses are advised to ascertain eligibility from the state’s Department of Economic Opportunity before going through the application process to ensure that they are a qualified “targeted industry business.”
The Research & Experimentation Tax Credit or R&D Tax Credit is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States.