Form F-1196 Draft - Allocation For Research And Development Tax Credit For Florida Corporate Income/franchise Tax


R. 01/18
Rule 12C-1.051
Florida Administrative Code
Effective 01/18
Allocation for Research and Development Tax Credit for
Florida Corporate Income/Franchise Tax
Applications may be filed with the Department between 12:00 a.m., ET, March 20 and
11:59 p.m., ET, March 26 of each calendar year for which the credit is available. If the
total credits for all qualified applicants exceed the tax credit cap, the Department will
allocate credits on a prorated basis.
Once you complete this application, you will receive a confirmation number. The screen will
display the information entered and confirm receipt of the electronic application for credit
allocation. You will be able to print this information and confirmation number.
The Department will send you written correspondence either approving an allocation of tax
credit or explaining why a credit allocation could not be made.
About the Research and Development Tax Credit
The credit is available annually and is based upon qualified research expenses in Florida
allowed under section (s.) 41 of the Internal Revenue Code (IRC). Approved tax credits will be
based on qualified research expenses incurred during the prior calendar year.
Who May Apply
Corporations, as defined in s. 220.03, F.S., that also meet the definition of qualified target
industry business, as defined in s. 288.106(2)(n), F.S., may apply. However, only qualified target
industry businesses in the manufacturing, life sciences, information technology, aviation and
aerospace, homeland security and defense, cloud information technology, marine sciences,
materials science, and nanotechnology industries may qualify for a tax credit.
Businesses that are partnerships, limited liability companies taxed as partnerships, or
disregarded single member limited liability companies, are not corporations under Section
220.03, F.S., and, therefore, may not apply for an allocation of credit. However, each corporate
partner of a partnership may apply separately for an allocation of credit based on the
corporation’s separate research expenses, including allocated partnership research expenses, if
the corporate partner is also a qualified target industry business. For disregarded entities, the
corporation that owns the single member limited liability company may apply separately for an
allocation of credit based on the corporation’s separate research expenses, including those of
the disregarded single member limited liability company, if the corporate owner is also a qualified
target industry business. For purposes of 26 U.S.C. s. 41, the research expenses are
apportioned among the partners during the taxable year and are treated as paid or incurred
directly by the partners rather than by the partnership.
A corporation applying for the tax credit must include a letter from the Department of
Economic Opportunity certifying that it is an eligible qualified target industry business
with its application, or documentation that it has timely protested the Department of
Economic Opportunity’s determination not to issue such a certification letter.


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