Florida Senate - 2020                                     SB 576
       By Senator Gruters
       23-00290A-20                                           2020576__
    1                        A bill to be entitled                      
    2         An act relating to the research and development tax
    3         credit; amending s. 220.196, F.S.; deleting a
    4         limitation on industries that qualify for the research
    5         and development credit against the corporate income
    6         tax; increasing the combined total amount of credits
    7         which may be granted to business enterprises during
    8         any calendar year; requiring that a specified amount
    9         of credits be allocated to certain qualified cleantech
   10         businesses; authorizing the Department of Revenue to
   11         allocate such amount that is not fully allocated to
   12         other qualifying businesses; providing applicability;
   13         providing an effective date.
   15  Be It Enacted by the Legislature of the State of Florida:
   17         Section 1. Paragraphs (a) and (e) of subsection (2) of
   18  section 220.196, Florida Statutes, are amended to read:
   19         220.196 Research and development tax credit.—
   20         (2) TAX CREDIT.—
   21         (a) As provided in this section, a business enterprise is
   22  eligible for a credit against the tax imposed by this chapter if
   23  it:
   24         1. Has qualified research expenses in this state in the
   25  taxable year exceeding the base amount;
   26         2. Claims and is allowed a research credit for such
   27  qualified research expenses under 26 U.S.C. s. 41 for the same
   28  taxable year as subparagraph 1.; and
   29         3. Is a qualified target industry business as defined in s.
   30  288.106(2)(n). Only qualified target industry businesses in the
   31  manufacturing, life sciences, information technology, aviation
   32  and aerospace, homeland security and defense, cloud information
   33  technology, marine sciences, materials science, and
   34  nanotechnology industries may qualify for a tax credit under
   35  this section. A business applying for a credit pursuant to this
   36  section shall include a letter from the Department of Economic
   37  Opportunity certifying whether the business meets the
   38  requirements of this subparagraph with its application for
   39  credit. The Department of Economic Opportunity shall provide
   40  such a letter upon receiving a request.
   41         (e) The combined total amount of tax credits which may be
   42  granted to all business enterprises under this section during
   43  any calendar year is $50 $9 million, except that the total
   44  amount that may be awarded in the 2018 calendar year is $16.5
   45  million. The first $10 million must be allocated to qualified
   46  businesses in the cleantech industry as certified by the
   47  Department of Economic Opportunity. If such amount is not fully
   48  allocated to qualified cleantech businesses, the department may
   49  allocate the remainder to any qualifying business certified by
   50  the Department of Economic Opportunity. Applications may be
   51  filed with the department on or after March 20 and before March
   52  27 for qualified research expenses incurred within the preceding
   53  calendar year. If the total credits for all applicants exceed
   54  the maximum amount allowed under this paragraph, the credits
   55  shall be allocated on a prorated basis.
   56         Section 2. The amendment made by this act to s. 220.196,
   57  Florida Statutes, first applies to the 2020 allocation of tax
   58  credits for expenses incurred in calendar year 2019.
   59         Section 3. This act shall take effect upon becoming a law.