Florida Senate - 2026                             CS for SB 1182
       
       
        
       By the Committee on Military and Veterans Affairs, Space, and
       Domestic Security; and Senator Jones
       
       
       
       
       583-02775-26                                          20261182c1
    1                        A bill to be entitled                      
    2         An act relating to business development incentives for
    3         veterans and military spouses; amending s. 213.053,
    4         F.S.; authorizing the Department of Revenue to provide
    5         specified state tax information to the Department of
    6         Veterans’ Affairs and the Department of State under a
    7         specified condition; creating s. 295.189, F.S.;
    8         providing a short title; providing legislative
    9         findings and intent; defining terms; requiring the
   10         Department of State to waive all fees for certain
   11         businesses; providing applicability; providing that
   12         certain businesses are eligible to receive specified
   13         tax exemptions; providing eligibility requirements for
   14         such exemptions; providing applicability; requiring
   15         the Department of Revenue to adopt specified rules;
   16         requiring the Department of Veterans’ Affairs, the
   17         Department of Revenue, and the Department of State to
   18         adopt specified rules and ensure interagency
   19         cooperation; requiring the Department of Veterans’
   20         Affairs to establish registration requirements for
   21         businesses seeking certain fee waivers and tax
   22         exemptions; specifying registration requirements;
   23         requiring that applicants meeting certain requirements
   24         receive a verification letter from the Department of
   25         Veterans’ Affairs; specifying ways in which such
   26         letter may be used or presented; requiring the
   27         Department of Veterans’ Affairs to notify the
   28         Department of State and the Department of Revenue
   29         under specified conditions; providing annual reporting
   30         requirements, beginning on a specified date; providing
   31         an effective date.
   32          
   33  Be It Enacted by the Legislature of the State of Florida:
   34  
   35         Section 1. Paragraph (cc) is added to subsection (8) of
   36  section 213.053, Florida Statutes, to read:
   37         213.053 Confidentiality and information sharing.—
   38         (8) Notwithstanding any other provision of this section,
   39  the department may provide:
   40         (cc) State tax information relative to the exemptions in s.
   41  295.189(5) pursuant to any formal agreement for the mutual
   42  exchange of information between the Department of Veterans’
   43  Affairs, the Department of State, and the Department of Revenue.
   44  
   45  Disclosure of information under this subsection shall be
   46  pursuant to a written agreement between the executive director
   47  and the agency. Such agencies, governmental or nongovernmental,
   48  shall be bound by the same requirements of confidentiality as
   49  the Department of Revenue. Breach of confidentiality is a
   50  misdemeanor of the first degree, punishable as provided by s.
   51  775.082 or s. 775.083.
   52         Section 2. Section 295.189, Florida Statutes, is created to
   53  read:
   54         295.189Business development incentives for veterans and
   55  military spouses.—
   56         (1)SHORT TITLE.—This section may be cited as the “Florida
   57  Veterans and Military Spouses Business Development Act.”
   58         (2)LEGISLATIVE FINDINGS AND INTENT.—
   59         (a)The Legislature finds that veterans and military
   60  spouses contribute significantly to this state’s economy through
   61  their skills, expertise, and entrepreneurial efforts.
   62         (b)The Legislature recognizes the challenges of frequent
   63  relocations and economic instability faced by many military
   64  spouses.
   65         (c)It is the intent of the Legislature that this act serve
   66  to attract and support veteran-owned and military spouse-owned
   67  businesses by providing incentives.
   68         (3)DEFINITIONS.—As used in this section, the term:
   69         (a)“Military spouse” means a spouse of:
   70         1.An active duty member of the United States Armed Forces;
   71  or
   72         2.A veteran.
   73         (b)“Veteran” has the same meaning as in s. 1.01(14).
   74         (c)“Veteran-owned or military spouse-owned business” means
   75  any business entity:
   76         1.That employs 200 or fewer permanent full-time employees.
   77         2.That, together with its affiliates, has a net worth of
   78  $5 million or less or, if a sole proprietorship, has a net worth
   79  of $5 million or less including personal and business
   80  investments.
   81         3.That is domiciled in this state.
   82         4.That is at least 51 percent owned and operated by one or
   83  more veterans or military spouses.
   84         5.The management and daily business operations of which
   85  are controlled by one or more veterans or military spouses.
   86         6.That has a professional license, if required by the
   87  industry, in the name of a veteran or military spouse who owns
   88  the business entity.
   89         (4)FEE WAIVER.—
   90         (a)The Department of State shall waive all fees for:
   91         1.A new business established by a veteran or military
   92  spouse in this state.
   93         2.An existing veteran-owned or military spouse-owned
   94  business in this state.
   95         (b)The fee waivers apply to veteran-owned or military
   96  spouse-owned businesses established between July 1, 2026, and
   97  June 30, 2031.
   98         (5)TAX EXEMPTIONS.—
   99         (a)Eligible veteran-owned and military spouse-owned
  100  businesses shall receive:
  101         1.A temporary increase in the exemption provided by s.
  102  220.14 for business entities incorporated in this state and
  103  subject to the tax imposed by chapter 220, for the taxable year
  104  in which the Department of Veterans’ Affairs verifies the
  105  veteran-owned or military spouse-owned business pursuant to
  106  subsection (7) and for each of the 4 subsequent taxable years.
  107         a.A business that is 100 percent veteran-owned or military
  108  spouse-owned is eligible to receive an exemption from the tax
  109  imposed by chapter 220, totaling $100,000 per taxable year for 5
  110  taxable years, after being in business for at least 5 years from
  111  the date of its incorporation in this state.
  112         b.A business that is at least 51 percent veteran-owned or
  113  military spouse-owned but does not qualify for the tax exemption
  114  under sub-subparagraph a. is eligible to receive an exemption
  115  from the tax imposed by chapter 220, totaling $100,000 per
  116  taxable year for 5 taxable years, after being in business for at
  117  least 7 years from the date of its incorporation in this state.
  118         2.A one-time sales tax exemption for veteran-owned or
  119  military spouse-owned businesses for purchases of equipment and
  120  supplies directly related to and used for business operations.
  121  This exemption does not apply to purchases of items that are
  122  used for personal purposes or items used for both personal and
  123  business purposes.
  124         a.A business entity that is at least 51 percent veteran
  125  owned or military spouse-owned is eligible to receive the sales
  126  tax exemption during the first year of business upon the
  127  issuance of a temporary tax exemption certificate by the
  128  Department of Revenue.
  129         b.A business entity incorporated in this state and subject
  130  to the tax imposed by chapter 220 which is 100 percent veteran
  131  owned or military spouse-owned and has been in business for 5
  132  years and whose net income as reported on its Florida corporate
  133  income or franchise tax return after application of the
  134  exemption provided in s. 220.14 is $0 for the 5th taxable year
  135  is eligible to receive the 1-year sales tax exemption upon the
  136  issuance of a temporary tax certificate by the Department of
  137  Revenue.
  138         c.A business entity incorporated in this state and subject
  139  to the tax imposed by chapter 220 which is at least 51 percent
  140  veteran-owned or military spouse-owned and has been in business
  141  for 7 years and whose net income as reported on its Florida
  142  corporate income or franchise tax return is $0 for the 7th
  143  taxable year is eligible to receive the 1-year sales tax
  144  exemption upon the issuance of a temporary tax exemption
  145  certificate by the Department of Revenue.
  146         (b)The Department of Revenue shall adopt rules to
  147  establish procedures for claiming the tax exemptions and for the
  148  developing and issuing of temporary sales tax exemption
  149  certificates upon notification of application approval by the
  150  Department of Veterans’ Affairs.
  151         (c)For veteran-owned and military spouse-owned businesses
  152  relocating to this state, the tax exemptions apply for 5 years
  153  after the date on which the business is established.
  154         (6)ADMINISTRATION.—The Department of Veterans’ Affairs,
  155  the Department of Revenue, and the Department of State shall:
  156         (a)Develop rules for administering this section.
  157         (b)Ensure interagency cooperation for seamless
  158  implementation of this section.
  159         (7)REGISTRATION.—
  160         (a)The Department of Veterans’ Affairs shall establish
  161  registration requirements for applicants seeking the fee waivers
  162  and tax exemptions provided by this section. The registration
  163  requirements must include:
  164         1.For veterans, a DD Form 214 or another acceptable form
  165  of identification as specified by the United States Department
  166  of Veterans’ Affairs, provided that the applicant served in and
  167  was honorably discharged from a branch of the United States
  168  Armed Forces.
  169         2.For military spouses, verification of a military spouse
  170  relationship and that the other spouse is on active duty or a
  171  veteran.
  172         3.Verification that the applicant’s business meets the
  173  requirements provided in subparagraphs (3)(c)1.-6.
  174         4.The date on which the applicant began doing business in
  175  this state.
  176         5.For applicants seeking the 1-year sales tax exemption
  177  provided under subparagraph (5)(a)2. must include a copy of
  178  their Florida corporate income or franchise tax return in order
  179  to verify the net income reported for the 5th or 7th taxable
  180  year, as applicable.
  181         (b)Applicants meeting the registration requirements of
  182  paragraph (a) shall receive a veteran-owned or military spouse
  183  owned business verification letter from the Department of
  184  Veterans’ Affairs.
  185         1.The verification letter may be presented to the
  186  Department of State to claim the fee waiver provided in
  187  subsection (4).
  188         2.The verification letter must be attached to the Florida
  189  corporate income or franchise tax return to claim the increased
  190  temporary exemption provided by subparagraph (5)(a)1.
  191         3.The verification letter may be presented to the
  192  Department of Revenue to receive a temporary tax exemption
  193  certificate pursuant to subparagraph (5)(a)2.
  194         (c)The Department of Veterans’ Affairs shall notify the
  195  Department of Revenue and the Department of State upon
  196  successful verification of the veteran-owned or military spouse
  197  owned business.
  198         (8)ANNUAL REPORTING.—Beginning December 31, 2026, and each
  199  December 31 thereafter, the Department of Veterans’ Affairs
  200  shall submit a report to the Governor, the President of the
  201  Senate, and the Speaker of the House of Representatives which
  202  includes:
  203         (a)The number of veteran-owned and military spouse-owned
  204  businesses that were established in this state.
  205         (b)Economic metrics, such as job creation and tax revenue
  206  impact from veteran-owned and military spouse-owned businesses.
  207         (c)Demographic data for the participating veterans and
  208  military spouses.
  209         Section 3. This act shall take effect July 1, 2026.