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Florida Businesses Should Prepare to Apply for the State‘s 2013 Research and Development Tax Credits by Karen Lake


Posted on March 13, 2014 by Karen Lake

Beginning on March 20, 2014, Florida businesses in specific target industries may begin applying for research and development tax credits against their 2013 corporate returns. The credit is equal to 10 percent of qualified R&D expenses that businesses located in the state incur to develop new products, secure new patents, and employ new methods, processes and software. Credits that remained unused during one calendar year may be carried forward for up to five years.

In addition to meeting the definitions of target-industry businesses and qualified research expenses, corporations must also recognize that the R&D credit, if granted, may not exceed 50 percent of their Florida corporate income tax liability after all other credit are applied.

The state of Florida places a $9 million cap on the total amount of tax credits it offers during a calendar year, and it allocates those credits on a first-come first-serve basis. In 2013, the state distributed the entire $9 million it set aside for the credit within 24 hours of opening the application process. As a result, businesses should not delay in speaking with their accounting advisors to determine their eligibility for and potential tax savings from the R&D credit in advance of the March 20 application filing start date.

About the Author: Karen A. Lake, CPA, is an associate director in Berkowitz Pollack Brant’s Tax Services practice. For more information call 305-379-7000 or email info@bpbcpa.com.