Senate Bill sb0096
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Florida Senate - 2006 (Corrected Copy) SB 96
By Senator Fasano
11-131-06
1 A bill to be entitled
2 An act relating to the tax on sales, use, and
3 other transactions; amending s. 212.052, F.S.;
4 deleting an exception to an exemption from the
5 tax for research or development costs;
6 providing an exemption for machinery and
7 equipment used predominantly for research and
8 development activities; defining the term
9 "machinery and equipment"; allowing a business
10 certified to receive the exemption to designate
11 one or more state universities or community
12 colleges as recipients of part or all of the
13 amount of the exemption under specified
14 conditions; providing that the business retains
15 the rights to patents, royalties, or real or
16 intellectual property unless an agreement
17 specifies otherwise; providing an effective
18 date.
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20 Be It Enacted by the Legislature of the State of Florida:
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22 Section 1. Subsection (2) of section 212.052, Florida
23 Statutes, is amended, present subsections (3), (4), and (5) of
24 that section are redesignated as subsections (4), (5), and
25 (6), respectively, and a new subsection (3) is added to that
26 section, to read:
27 212.052 Research or development costs; exemption.--
28 (2) Notwithstanding any provision of this chapter to
29 the contrary, any person, including an affiliated group as
30 defined in s. 1504 of the Internal Revenue Code of 1954, as
31 amended, who manufactures, produces, compounds, processes, or
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Florida Senate - 2006 (Corrected Copy) SB 96
11-131-06
1 fabricates in any manner tangible personal property for such
2 taxpayer's own use directly and solely in research or
3 development shall not be subject to the tax imposed by this
4 chapter upon the cost of the product so manufactured,
5 produced, compounded, processed, or fabricated. However, the
6 tax imposed by this chapter shall be due on the purchase,
7 rental, or repair of real property or tangible personal
8 property employed in research or development which is subject
9 to the tax imposed by this chapter at the time of purchase or
10 rental.
11 (3)(a) Machinery and equipment are exempt from the tax
12 imposed by this chapter if used predominantly for research and
13 development activities. For the purposes of this subsection,
14 the term "machinery and equipment" includes molds, dies,
15 machine tooling, other appurtenances or accessories to
16 machinery and equipment, testing equipment, test beds,
17 computers, and software, whether purchased or self-fabricated,
18 and, if self-fabricated, includes materials and labor for
19 design, fabrication, and assembly.
20 (b) A business certified to receive this exemption may
21 elect to designate one or more state universities or community
22 colleges as recipients of up to 100 percent of the amount of
23 the exemption for which the business qualifies. To receive
24 these funds, the state university or community college must
25 agree to match the funds so earned with equivalent cash,
26 programs, services, or other in-kind support on a one-to-one
27 basis in the pursuit of research and development projects as
28 requested by the certified business. The rights to any
29 patents, royalties, or real or intellectual property must be
30 vested in the business unless otherwise agreed to by the
31 business and the state university or community college.
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Florida Senate - 2006 (Corrected Copy) SB 96
11-131-06
1 Section 2. This act shall take effect July 1, 2006.
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4 SENATE SUMMARY
5 Deletes an exception to the exemption from the tax on
sales, use, and other transactions which applies to
6 research or development costs. Provides an exemption from
the tax for machinery and equipment used predominantly
7 for research and development activities. Defines the term
"machinery and equipment." Allows a business certified to
8 receive the exemption to designate one or more state
universities or community colleges as recipients of part
9 or all of the amount of the exemption under specified
conditions. Provides that the business retains the rights
10 to patents, royalties, or real or intellectual property
unless an agreement specifies otherwise.
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