Increases Sought to Florida Chamber-Backed Research and Development Tax Credit
TALLAHASSEE (October 15 , 2015) – Florida’s ability to attract high-wage jobs and increase global competitiveness is front and center once again as recently filed bills seek to increase the state’s Research and Development (R&D) Tax Credit, a priority of the Florida Chamber of Commerce.
The bills, filed by Senator Jeff Brandes (R- St Petersburg) and Representative Ed Narain (D- Tampa), would increase the current $9 million R&D Tax Credit cap— which is currently exceeded within 10 minutes of the open online application period— to $23 million.
“Florida’s innovation economy is growing and the R&D Tax Credit is an important tool to enhance our competitiveness,” said David Hart, Executive Vice President of the Florida Chamber. “Increasing the cap on the R&D Tax Credit is imperative if we wish to continue to attract and retain these industries completing research and providing high-wage, high-skill jobs. I applaud the continued efforts of Senator Brandes and Representative Narain to drive innovation in Florida, and thank them for their partnership with the Florida Chamber to increase the R&D Tax Credit.”
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 has resulted in applications being denied, causing our state to lose out on innovative new businesses and high-wage job creators.
At the Florida Chamber, we believe in the Florida dream, and we believe that Florida should be open to business for more job creators than those with the fastest internet connections or the first-through-the-door, one-day-out-of-the-year.
About the R&D Tax Credit:
Florida’s R&D Tax Credit was created in 2011 and is implemented through the Department of Revenue. The R&D Tax Credit is available to companies that have qualified research expenses in Florida and are part of a targeted industry as determined by various factors, including job creation abilities. The tax credit each company may receive is up to 10 percent of the excess qualified research expenses over the company’s “base,” or the average the company has spent on qualified research and development over the prior four years. Additionally, the credit cannot exceed 50 percent of the company’s remaining tax liability.
The Florida Chamber of Commerce is the voice of business and the state’s largest federation of employers, chambers of commerce and associations, aggressively representing small and large businesses from every industry and every region. The Florida Chamber works within all branches of government to affect those changes set forth in the annual Florida Business Agenda, and which are seen as critical to secure Florida’s future. The Florida Chamber works closely with its Political Operations and the Florida Chamber Foundation. Visit www.FloridaChamber.com for more information.