Research & Development Tax Credit Bill Passes Senate Commerce and Tourism Committee

 

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On March 4, 2019, the Senate Commerce and Tourism Committee passed SB 750, which permanently increases the cap on Florida’s Research & Development Tax Credit to $35 million.

This Florida Chamber- backed bill, sponsored by Senator Joe Gruters, would allow companies to receive a greater percentage of the R&D credits allowed under law while encouraging high wage jobs, capital investments and innovation in Florida. The Florida Chamber has led the effort to improve Florida’s R&D Tax Credit and provide additional funding over the last five years.

As Florida continues to try to drive innovation and attract high-wage, high-skill jobs, a strategic but underfunded component is the R&D tax credit. The Florida Chamber will continue to promote SB 750 and other efforts that will make Florida a top-three state for research and development and innovation by 2030.

Thank Senator Joe Gruters

Please take a moment to send a quick email thanking Senator Joe Gruters for working to further smarter and more competitive tax policies for Florida.

Research and Development

 

 

Building Florida’s Innovation Economy Through Research and Development

 

Why It Matters to Florida

Florida’s ability to attract high-wage jobs and increase global competitiveness is front and center once again as the Legislature once again contemplates tax reform and its role in economic development.

Thanks to the efforts of the Florida Chamber, business leaders and legislative leadership, the Florida Legislature increased the R&D Tax Credit cap from $9 million to $23 million for one year in 2015, and modified the program to allow the credits to be pro-rated, instead of being awarded on a mad dash, first-come first-serve basis. The increased demand for this tax credit had in the past resulted in applications being denied, causing our state to lose out on important R&D and high-wage job creators.

Florida’s Competitiveness Agenda

The Florida Chamber supports increasing the current $9 million R&D Tax Credit cap— which has been exceeded every year — to help our state remain competitive and attract high-wage jobs.

The Fight for Free Enterprise Continues

At the Florida Chamber, we believe in innovation and spurring new technology and emerging industries. Learn how you can get involved by contacting cjohnson@flchamber.com.

Find Out How to Qualify for R&D Tax Credit

The Florida Department of Revenue (DOR) will begin collecting applications for the R&D Tax Credit against the Corporate Income Tax for tax year 2015 on Sunday, March 20, 2016. The application will be live online until March 26, 2016 at 11:59 PM. During that time, the amount of credits that will be awarded is $23 million, and if applications exceed the cap, will be awarded on a pro-rata basis.

Prior to applying through DOR, companies must certify through the Department of Economic Opportunity that they are a qualified targeted industry business. For additional information on how to apply, including screenshots of the application and information on how to qualify, DOR has released a “Tax Information Publication.”

R&D Tax Credits for 2016 Tax Year

During the 2016 Legislative Session, the Florida Chamber, along with Representatives Ed Narain (D-Tampa), Jay Fant (R-Jacksonville), Matt Gaetz (R-Shalimar) and Senator Jeff Brandes (R- St. Petersburg), advocated to increase the $9 million cap for a second year in a row. Unfortunately, these efforts were not fruitful. The maximum amount of tax credits awarded during the 2017 application period, for the 2016 tax year, will be $9 million. However, these credits will continue to be awarded on a pro-rata basis if the cap is exceeded.

Get Involved:

Contact Carolyn Johnson and share the great R&D work that you are performing in Florida or how fewer credits awarded in 2017 might impact your business at 850-521-1235 or cjohnson@flchamber.com.

Florida Chamber Backed R&D Tax Credit Made Permanent

Late last week, Congress negotiated the annual “tax extenders” package which extends a number of tax credits for businesses and families for the 2015 tax year – including the research and development tax credit. The final bill extended the federal R&D Tax Credit indefinitely, instead of the one year extension that has been passed in years past. This bill was signed by President Obama on Friday.

What This Means:

Florida’s R&D Tax Credit is tied to the federal R&D Tax Credit, meaning in years the federal R&D Tax Credit lapsed, companies in Florida performing qualified R&D would not receive the Florida credit either. Making the federal R&D Tax Credit permanent creates predictability for companies performing research and allows companies to qualify for a single set of standards – both at the federal and state level – to receive tax credits for research and development.

The Florida Chamber of Commerce encouraged reforms to Florida’s R&D Tax Credit earlier this year, and lawmakers passed them during the 2015 Legislative Special Session A. The amount available for tax credits for the 2015 tax year is $23 million, with a weeklong application period opening on March 20, 2016. If the amount in tax credits applied for exceeds the $23 million cap, tax credits will be allocated on a prorated basis. After this year, Florida’s R&D Tax Credit will be capped at $9 million, unless legislative action again increases the cap. The Florida Chamber testified last month before the Florida House Finance & Tax Committee about the need to support future innovation by permanently increasing the R&D Tax Credit cap from $9 million to $23 million.

Senate Appropriations Committee Passes Florida Chamber Tax Cut Priorities

Targeted Tax Reform Package Heads to Full Senate- Will Help Lower Cost of Living and Doing Business

The Florida Chamber applauds the Florida Senate Appropriations Committee for their commitment to lowering the cost of living and cost of doing business in Florida by passing a targeted tax reform package today.

“The Florida Senate Appropriations Committee took a positive step today by passing several of the Florida Chamber’s targeted tax reform priorities,” said David Hart, Executive Vice President of the Florida Chamber of Commerce. “We commend the House and Senate for their work on negotiating a meaningful tax cut package and we look forward to seeing it become law.”

Driving a fair and equitable tax system is key to attracting and retaining businesses in Florida. Limiting burdensome taxes by enacting smart and targeted tax reforms help place money back into the pockets of Florida’s families.

The Targeted Tax Reforms in HB 33A Would:

  • Reduce communications services tax by 1.73 percent,
  • Increase the research and development tax credit from $9 million to $23 million for 2016,
  • Extend bonuses in enterprise zones for two years for companies currently receiving bonuses, and
  • Create a 10 day Back-to-School Sales Tax Holiday.

What’s Next?

The bill will now go to the Senate Floor and return to the Florida House for amendments or passage.

Share Your Story:

How will these targeted tax cuts help your business grow? Let us know by emailing cjohnson@flchamber.com.