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Form F-1196 Draft - Allocation For Research And Development Tax Credit For Florida Corporate Income/franchise Tax Page 2

Federal Income Tax Credit

To receive a Florida research and development tax credit, the corporation must claim and be

allowed a research credit for the taxable year against federal income tax for qualified research

expenses under s. 41, IRC. Attach federal Form 6765 (Credit for Increasing Research Activities)

and federal Form 3800 (General Business Credit) to Florida Form F-1120 (Florida Corporate

Income/Franchise Tax Return) when claiming the Florida credit. For federal forms, see

Qualified Research Expenses

Qualified research expenses are defined as research expenses qualifying for the credit under

s. 41, IRC, for in-house research expenses incurred in Florida or contract research expenses

incurred in Florida. The term "qualified research expenses" does not include research

conducted outside Florida or research expenses that do not qualify for a credit under s. 41, IRC.

Program Limitations

If the total credits requested (computed as the sum of the credit allocations requested from

Form F-1196 for all qualified applicants) exceed the annual credit cap, each qualified applicant

will be allocated credit on a prorated basis.

The Florida research and development tax credit taken may not exceed 50 percent of the

Florida corporate income tax liability after all other credits have been applied in the order

provided in s. 220.02(8), F.S.

If the amount of qualified research expenses is reduced as a result of a federal audit or

examination, the Florida credit must be recalculated. Amended Florida returns must be filed for

all affected years, and the difference between the initial credit amount taken and the

recalculated credit amount, with interest, in accordance with the provisions of s. 220.807, F.S.,

must be paid to the Department.

Should the amount of credit requested be overstated, the percentage of the original allocation

provided by the Department will be applied to the lesser amount of credit that should have been

requested.

Additional Information

See Rule 12C-1.0196, F.A.C., for additional information on the Research and Development Tax

Credit.

Apply for the Research and Development Tax Credit Allocation.

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Form F-1196 Draft - Allocation For Research And Development Tax Credit For Florida Corporate Income/franchise Tax Page 2