Jim Rosica
Two Tampa Bay-area lawmakers have filed legislation in both chambers to boost the state’s research and development, or R&D, tax credit.
State Sen. Jeff Brandes, a St. Petersburg Republican, and state Rep. Ed Narain, a Tampa Democrat, filed the identical bills (SB 508/HB 311) earlier this week.
The bill is a priority of the Florida Chamber of Commerce. The measure would increase the current $9 million cap to $23 million, according to a press release.
“Increasing the cap on the R&D Tax Credit is imperative if we wish to continue to attract and retain industries completing research and providing high-wage, high-skill jobs,” said David Hart, the chamber’s executive vice president.
The R&D Tax Credit, created in 2011, was bumped up in a one-time-only move last year. Brandes and Narain want to make the increase permanent.
“The increased demand for this tax credit has resulted in applications being denied, causing our state to lose out on innovative new businesses and high-wage job creators,” the Chamber’s release said.
More on the tax credit from the release:
The R&D Tax Credit is available to companies that have qualified research expenses in Florida and are part of a targeted industry as determined by various factors, including job creation abilities. The tax credit each company may receive is up to 10 percent of the excess qualified research expenses over the company’s “base,” or the average the company has spent on qualified research and development over the prior four years. Additionally, the credit cannot exceed 50 percent of the company’s remaining tax liability.
