| 1 | A bill to be entitled |
| 2 | An act relating to the tax on sales, use, and other |
| 3 | transactions; amending s. 212.052, F.S.; exempting from |
| 4 | the tax machinery and equipment used predominantly for |
| 5 | research or development; providing definitions; |
| 6 | authorizing businesses to designate the amount of the |
| 7 | exemption to state universities or community colleges |
| 8 | under certain circumstances; providing requirements and |
| 9 | limitations; providing an effective date. |
| 10 |
|
| 11 | Be It Enacted by the Legislature of the State of Florida: |
| 12 |
|
| 13 | Section 1. Subsection (2) of section 212.052, Florida |
| 14 | Statutes, is amended, subsections (3), (4), and (5) of said |
| 15 | section are renumbered as subsections (4), (5), and (6), |
| 16 | respectively, and a new subsection (3) is added to said section, |
| 17 | to read: |
| 18 | 212.052 Research or development costs; exemption.-- |
| 19 | (2) Notwithstanding any provision of this chapter to the |
| 20 | contrary, any person, including an affiliated group as defined |
| 21 | in s. 1504 of the Internal Revenue Code of 1954, as amended, who |
| 22 | manufactures, produces, compounds, processes, or fabricates in |
| 23 | any manner tangible personal property for such taxpayer's own |
| 24 | use directly and solely in research or development shall not be |
| 25 | subject to the tax imposed by this chapter upon the cost of the |
| 26 | product so manufactured, produced, compounded, processed, or |
| 27 | fabricated. However, the tax imposed by this chapter shall be |
| 28 | due on the purchase, rental, or repair of real property or |
| 29 | tangible personal property employed in research or development |
| 30 | which is subject to the tax imposed by this chapter at the time |
| 31 | of purchase or rental. |
| 32 | (3)(a) Machinery and equipment are exempt from the tax |
| 33 | imposed by this chapter if used predominantly for research or |
| 34 | development activities. For purposes of this subsection, the |
| 35 | term "predominantly" means at least 50 percent of the time and |
| 36 | the term "machinery and equipment" includes molds, dies, machine |
| 37 | tooling, other appurtenances or accessories to machinery and |
| 38 | equipment, testing equipment, test beds, computers, and |
| 39 | software, whether purchased or self-fabricated, and, if self- |
| 40 | fabricated, includes materials and labor for design, |
| 41 | fabrication, and assembly. |
| 42 | (b) A business may elect to designate one or more state |
| 43 | universities or community colleges as recipients of up to 100 |
| 44 | percent of the amount of the exemption for which the business |
| 45 | may qualify. To receive these funds, the institution must agree |
| 46 | to match the funds so earned with equivalent cash, programs, |
| 47 | services, or other in-kind support on a one-to-one basis in the |
| 48 | pursuit of research and development projects as requested by the |
| 49 | certified business. The rights to any patents, royalties, or |
| 50 | real or intellectual property must be vested in the business |
| 51 | unless otherwise agreed to by the business and the university or |
| 52 | community college. |
| 53 | Section 2. This act shall take effect upon becoming a law. |