Florida Issues Emergency Rule For Research and Development Tax Credit
An emergency rule (Emerg. Regs. Section 12CER13-02) regarding the research and development tax credit was issued by the Florida Department of Revenue to explain the credit’s calculation and application procedure.
For tax years beginning on or after Jan. 1, 2012, a research and development tax credit is available to any target industry business that is allowed a federal credit for qualified research expenses underInternal Revenue Code Section 41. A “target industry business” is a corporate headquarters business or any business that is part of a target industry, identified by certain criteria, such as future growth potential and positive economic impact.
The research and development credit equals 10 percent of the excess qualified research expenses incurred in Florida over the base amount; however, the credit is limited to 50 percent of state income tax liability after all other credits have been applied.
Text of the emergency rule is at https://www.flrules.org/Faw/FAWDocuments/FAWVOLUMEFOLDERS2013/3945/3945doc.pdf.