Oops! Something went wrong while submitting the form.
The Florida Research and Development Tax Credit, authorized under §220.196, Florida Statutes, incentivizes corporations engaged in qualified target industry businesses to invest in in-state innovation, offsetting corporate income tax liabilities through the Florida Department of Revenue. This program supports key sectors like manufacturing, life sciences, and aerospace, with applications processed annually for prior-year expenses.
Eligibility requires C-corporations performing qualified research in Florida that aligns with federal IRC §41 standards, tied exclusively to in-state activities within approved target industries. A certification letter from the Florida Department of Commerce is mandatory to confirm target industry status.
Florida uses a single incremental method based on federal principles, applied only to Florida-sourced QREs. No alternative simplified credit (ASC) is available. Businesses must first qualify for the federal credit to claim the state version. Florida still allows taxpayers to claim the federal ASC method for federal purposes, but the Florida state credit is always computed using the single 10% incremental formula on Florida QREs.
Florida's R&D credit emphasizes targeted high-impact industries with strict certification and allocation processes to prioritize innovation in strategic sectors.
The Florida R&D tax credit provides a 10% incentive on excess qualified research expenses over a base amount for C-corporations in certified target industries, administered under §220.196, F.S., and aligned with federal IRC §41 rules.
Eligible activities must meet the federal four-part test (technological uncertainty, experimentation, process improvement, business component) and occur in Florida within target industries like aviation, life sciences, or IT. Strike Tax verifies qualifying projects for compliance.
For $2 million in excess Florida QREs, a qualified C-corp could save $200,000, stackable with federal credits. Use Strike Tax’s R&D Credit Calculator for personalized estimates based on your target industry.
No, credits are nonrefundable but carry forward up to 5 years and offset up to 50% of remaining corporate income tax liability. Startups receive phased-down rates but benefit from a low or zero base in early years.
Secure a certification letter from the Florida Department of Commerce, then submit an online application via the Department of Revenue portal during the March 20–26 window for prior-year expenses. Because the program is capped and oversubscribed, it is important to have both your Commerce certification letter and your DOR application ready for the March 20–26 window. Strike Tax handles documentation and filing to maximize allocation.
Yes, the state credit requires claiming the federal credit for the same Florida QREs, allowing full stacking to amplify savings. Strike Tax optimizes dual claims for target industry businesses.
High-impact sectors like manufacturing, aerospace, life sciences, and information technology see the highest utilization due to QRE-intensive activities. Over $100M in credits have been allocated since inception, per state reports.
Defined under §288.005, F.S., with the industry list from former s. 288.106(2)(n), F.S. (2022), it includes firms in manufacturing, life sciences, information technology, aviation and aerospace, homeland security and defense, cloud information technology, marine sciences, materials science, and nanotechnology. Certification from the Department of Commerce is required.
Startups use an average of available prior Florida QREs (zero for years before incorporation), but the credit rate reduces by 25% for each of the prior 4 years not in existence (e.g., one missing year: effective 7.5%). This phases in full 10% benefits over time.
Strike Tax ensures target industry certification, navigates the competitive application window, maximizes federal-state stacking, and provides audit-ready documentation tailored to Florida's unique rules.
Use our calculator to estimate your potential federal and state benefits
Schedule a consultation to structure your row crop research activities
Connect with us to find out how R&D tax credits can boost your organization’s bottom line.
To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.
Download our R&D Tax Credit Calculator for Android to see how much you can receive from your qualified R&D tax credit expenses.
The Florida R&D tax credit provides a 10% incentive on excess qualified research expenses over a base amount for C-corporations in certified target industries, administered under §220.196, F.S., and aligned with federal IRC §41 rules.
Eligible activities must meet the federal four-part test (technological uncertainty, experimentation, process improvement, business component) and occur in Florida within target industries like aviation, life sciences, or IT. Strike Tax verifies qualifying projects for compliance.
For $2 million in excess Florida QREs, a qualified C-corp could save $200,000, stackable with federal credits. Use Strike Tax’s R&D Credit Calculator for personalized estimates based on your target industry.
No, credits are nonrefundable but carry forward up to 5 years and offset up to 50% of remaining corporate income tax liability. Startups receive phased-down rates but benefit from a low or zero base in early years.
Secure a certification letter from the Florida Department of Commerce, then submit an online application via the Department of Revenue portal during the March 20–26 window for prior-year expenses. Because the program is capped and oversubscribed, it is important to have both your Commerce certification letter and your DOR application ready for the March 20–26 window. Strike Tax handles documentation and filing to maximize allocation.
Yes, the state credit requires claiming the federal credit for the same Florida QREs, allowing full stacking to amplify savings. Strike Tax optimizes dual claims for target industry businesses.
High-impact sectors like manufacturing, aerospace, life sciences, and information technology see the highest utilization due to QRE-intensive activities. Over $100M in credits have been allocated since inception, per state reports.
Defined under §288.005, F.S., with the industry list from former s. 288.106(2)(n), F.S. (2022), it includes firms in manufacturing, life sciences, information technology, aviation and aerospace, homeland security and defense, cloud information technology, marine sciences, materials science, and nanotechnology. Certification from the Department of Commerce is required.
Startups use an average of available prior Florida QREs (zero for years before incorporation), but the credit rate reduces by 25% for each of the prior 4 years not in existence (e.g., one missing year: effective 7.5%). This phases in full 10% benefits over time.
Strike Tax ensures target industry certification, navigates the competitive application window, maximizes federal-state stacking, and provides audit-ready documentation tailored to Florida's unique rules.
