Articles

Florida Distributes $9 Million in Research and Development Credits in One Day by Karen A. Lake


Posted on March 31, 2014 by Karen Lake

It took just eight hours for the Florida Department of Revenue to allocate the entirety of $9 million in available research and development tax credits to Florida businesses on March 20, 2014.

 

Each year, the Department of Revenue selects one day to activate a first-come-first-serve online application for state-based businesses to apply for research and development credits to use against corporations’ prior year returns. The credit is equal to 10 percent of qualified R&D expenses that businesses in select industries incur to develop new products, secure new patents, and employ new methods, processes and software.

 

Businesses located in the Florida should speak with their accountants after the second quarter of this calendar year to determine their eligibility for the research and development credit and begin preparing accordingly to apply as soon as the application becomes available. If the federal government authorizes the R&D credit for 2014, Florida will open the application process on March 20, 2015.

 

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