United States / Funding / Research and Development Tax Credit Program

Research and Development Tax Credit Program

Florida C-corporations in target industries can claim a 10% state credit on qualified research spending above a base amount, applied for each March.

Open nowTax benefit, up to $9MChecked Sep 24, 2026 on the official site

What you get
10% credit on qualified research expenses above a base amount, subject to a $9 million annual statewide cap, carryforward up to 5 years
Sectors
tech, life sciences, manufacturing
Where
Florida
When to apply
annual (application window March 20-26)

About this programme

The Research and Development Tax Credit Program, created under section 220.196 of the Florida Statutes, gives eligible businesses a Florida corporate income tax credit for certain qualified research expenses. The credit is administered jointly: FloridaCommerce certifies which companies are in an eligible target industry, and the Florida Department of Revenue (DOR) allocates the actual tax credit.

To participate, a corporation must already claim and be allowed a federal research credit under section 41 of the Internal Revenue Code for the same qualified research expenses, and must be in one of the state's targeted industries: aviation and aerospace, cloud information technology, homeland security and defense, information technology, life sciences, manufacturing, marine sciences, materials science, or nanotechnology.

How it works

The program runs on a two-step annual cycle. First, a company gets a FloridaCommerce Certification Letter confirming it is in an eligible target industry; this letter expires three years after it is issued, after which the company must be re-certified. Second, once certified, the company applies to the Florida Department of Revenue for an allocation of the actual R&D credit.

DOR opens applications for an allocation of the Florida Research and Development Credit on March 20 each year. The final DOR application deadline tracks the year the FloridaCommerce certification letter was issued: for example, a 2025 certification letter carries DOR deadlines of 3/26/2025, 3/26/2026 and 3/26/2027.

Partnerships, limited liability companies taxed as partnerships, and disregarded single-member LLCs are not corporations under Florida Statutes section 220.03 and cannot apply directly. Instead, each corporate partner of a partnership may apply separately for an allocation based on its own share of research expenses, including allocated partnership research expenses; for a disregarded entity, the owning corporation applies based on its own expenses plus the disregarded entity's.

Who can apply

The applicant must be a C-corporation (not a partnership, an LLC taxed as a partnership, or a disregarded single-member LLC) that claims and is allowed a federal research credit under IRC section 41 for qualified research expenses.

The business must fall into one of the state's targeted industries: aviation and aerospace, cloud information technology, homeland security and defense, information technology, life sciences, manufacturing, marine sciences, materials science, or nanotechnology.

How to apply

  1. Complete the FloridaCommerce Certification Request Form for the current year (a new form is issued annually).
  2. Email the completed form to R&DCertificationRequest@Commerce.fl.gov before FloridaCommerce's stated deadline (5:00pm Eastern Standard Time on the last business day of February, per the 2025 cycle).
  3. Once FloridaCommerce issues a Certification Letter confirming the target-industry status, include that letter with an Application for an Allocation of Credit submitted to the Florida Department of Revenue.
  4. Submit the DOR application within the deadline window that opens March 20 and tracks the FloridaCommerce certification year (deadlines fall around March 26 for up to three years after certification).

Frequently asked

Who administers this credit?

Two agencies: FloridaCommerce certifies that a business is in an eligible target industry, and the Florida Department of Revenue allocates the actual tax credit once that certification is in hand.

Do I need a federal R&D credit first?

Yes. The corporation must already claim and be allowed a research credit against federal income tax for qualified research expenses under IRC section 41.

Can my LLC or partnership apply directly?

No. Partnerships, LLCs taxed as partnerships, and disregarded single-member LLCs cannot apply directly. A corporate partner can apply separately based on its own share of the research expenses, including allocated partnership expenses.

How long does my FloridaCommerce certification last?

Three years from the date of the certification letter. After that, the company must be re-certified before submitting a new Application for an Allocation of Credit to DOR.

When does the DOR application window open?

March 20 each year, with a final deadline around March 26 that depends on which year the company's FloridaCommerce certification letter was issued.

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