| | 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 Sample total credits for all qualified applicants exceed the tax credit cap, the Department will allocate credits on a prorated basis. Instructions 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. Form 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. 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 www. irs. gov/Forms-Pubs. Qualified Research Expenses Qualified research expenses are defined as research expenses qualifying for the credit under Sample 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 Form 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 |
| | see below).] Research and Development Tax Credit for Florida Corporate Income/Franchise Tax ( Under section 220. 196, Florida Statutes) Beginning 12:00 a. m., ET, March 20 th and ending 11:59 p. m., ET, March 26 th , you may apply for the credit based upon qualified research expenses incurred during the prior calendar year. Is the applicant a corporation, or treated like a corporation for federal income tax purposes? Yes No Indicate Sample your tax year: Calendar year Other taxable year beginning / / and ending / / . Enter the appropriate information in the following boxes: Federal Employer Identification Number ( FEIN) : ( 999999999) Corporation Name: Form Date of Incorporation: ( MM-DD-YYYY) Mailing Address: Address ( cont) : City: State: ZIP Code: Contact Person: Contact's Telephone Number: ( 999 999-9999) Contact's Email Address: If a consolidated Florida corporate income tax return is filed, provide the parent corporation's name and FEIN. Parent Corporation's Name: Parent Corporation's FEIN: ( 999999999) Target Industry Business Is this a qualified target industry business as defined in section 288. 106( 2)( n), F. S., and certified by the Department of Economic Opportunity? Yes No Attach certification letter from the Department of Economic Opportunity. Federal Credit for Increasing Research Activities Is the corporation planning |
| | the base amount must end before the calendar year for which the qualified research expenses are determined. For example , the base years for qualified research expenses incurred during calendar year 2017 should end in 2016, 2015, 2014, and 2013 *. See table below: 1st taxable 2nd taxable 3rd taxable 4th taxable Qualified year ending year ending year ending year ending research Tax year end before the before the before the before the expenses in taxable year taxable year taxable year taxable year Florida of the credit of the credit of the credit of the credit 12/31/2017 12/31/2016 12/31/2015 12/31/2014 12/31/2013 01/31/2018 01/31/2016 01/31/2015 01/31/2014 01/31/2013 02/29/2018 02/28/2016 02/28/2015 02/29/2014 02/28/2013 03/31/2018 03/31/2016 03/31/2015 03/31/2014 03/31/2013 04/30/2018 04/30/2016 04/30/2015 04/30/2014 04/30/2013 05/31/2018 1/1/2017- 05/31/2016 05/31/2015 05/31/2014 05/31/2013 06/30/2018 12/31/2017 06/30/2016 06/30/2015 06/30/2014 06/30/2013 07/31/2018 07/31/2016 07/31/2015 07/31/2014 07/31/2013 08/31/2018 08/31/2016 08/31/2015 08/31/2014 08/31/2013 09/30/2018 09/30/2016 09/30/2015 09/30/2014 09/30/2013 10/31/2018 10/31/2016 10/31/2015 10/31/2014 10/31/2013 11/30/2018 11/30/2016 11/30/2015 11/30/2014 11/30/2013 *If the corporation has any short years as part of the base calculation, include the corporation’s taxable years. Lines ( 7) – ( 10) : Compute the credit allocation requested. The tax credit is 10 percent of the qualified research expenses over the base amount. However, the maximum tax credit for a business enterprise that has not been in existence for at least 4 taxable years immediately preceding the taxable year of the credit is reduced by 25 percent for each taxable year for which the business enterprise, or a predecessor corporation that was a business enterprise, did not exist. Taxable years preceding the taxable year of the Qualified research expenses in Florida credit ( Enter whole dollar amount only .) ( 1) 1st taxable year end / / or $ / /20 ( 2) 2nd taxable year end / / or $ / /20 Sample ( 3) 3rd taxable year end / / or $ / /20 ( 4) 4th taxable year end / / or $ / /20 ( 5) Sum of the qualified research expenses in Florida for the 4 taxable years preceding the $ taxable year of the credit. Total of Lines ( 1) – ( 4). ( 6) Base amount. $ Form Line ( 5) divided by 4. ( 7) Enter qualified research expenses in Florida $ during calendar year . ( 8) Line ( 7) minus Line ( 6). If Line ( 6) is greater than Line ( 7), the amount $ will be zero. ( 9) 10% of Line ( 8). $ ( 10) Credit allocation requested. Enter the amount from Line ( 9). If the business enterprise did not exist for the 4 preceding tax years, $ reduce the amount from Line ( 9) by 25% for each taxable year for which the business enterprise did not exist. By typing your name in the space below and submitting this form, you are declaring, under penalties of perjury, that you have read this application and that the facts stated in it are true. Name: Title: Submit Application Clear Application |