active State Tax Credit

Florida R&D Tax Credit (Corporate Income Tax)

Florida Department of Revenue / Department of Commerce

10% of incremental QRE

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The short version

Competitive R&D credit for FL C-corps

Florida's R&D tax credit offers 10% of incremental qualified research expenses above a 4-year historical base, claimed against corporate income tax. Unlike most state R&D credits, Florida's is competitive: businesses must apply to the Department of Commerce (formerly DEO) during a narrow 7-day window in March, and if aggregate applications exceed the $9M annual cap they are prorated. Only designated target-industry C-corporations are eligible.

Funding type: Tax Credit
Level: State
Amount: 10% of qualified research expenses in Florida exceeding the 4-year average base amount. Annual statewide cap of $9 million — prorated if applications exceed cap. Credit cannot exceed 50% of remaining corporate income tax liability after other credits. Carries forward 5 years.
Realistic amount: A Florida biotech C-corp spending $1M/yr on in-state QRE with a $700K base could claim $30,000 (10% × $300K incremental)…
Deadline: Annual competitive window: March 20–26 each year (7-day application window with the Florida Department of Commerce). Credit is then claimed on corporate income tax return after receiving certification letter.
Status: active
States: FL
Payment model: tax offset

Who qualifies

C-corporation subject to Florida corporate income tax (F.S. Chapter 220)
Qualifies as a 'target industry business' under F.S. §288.106 — includes manufacturing, life sciences, information technology, aerospace, homeland security/defense, cloud computing, marine sciences, materials science, and nanotechnology
Conducts qualified research activities within Florida during the taxable year
Qualified research expenses must meet the federal IRC §41 definition
Must submit an application to the Florida Department of Commerce during the March 20–26 window and receive a certification letter before claiming the credit
Annual credit may not exceed 50% of the business's remaining Florida corporate income tax liability after all other credits are applied

Hard requirements

Must be incorporated

What it covers

Eligible expenses

Wages for employees directly engaged in qualified research activities in Florida
Supplies consumed in the conduct of qualified research in Florida
Contract research expenses — 65% of amounts paid to third parties for qualified research performed in Florida
Lease or rental costs for equipment used exclusively in qualified research in Florida

Ineligible expenses

Research funded by any federal, state, or local government grant or contract
Research conducted outside the state of Florida
Ordinary product testing or quality control activities
Social science, arts, or humanities research
Research conducted after commercial production begins on an existing product

How to apply

1

Compute incremental QRE

Calculate Florida-located qualified research expenses (QRE) for the tax year, then subtract the 4-year historical average of Florida QRE to determine the incremental base amount. Document wages, supplies, and contract research expenses for Florida activities.

~5 hrs
2

Submit Department of Commerce application (March 20–26)

File the competitive credit application with the Florida Department of Commerce (floridajobs.org portal) during the narrow annual window. Provide QRE documentation, entity certification as a target-industry business, and Florida corporate income tax account information.

~5 hrs
3

Receive certification letter

The Department of Commerce reviews applications and issues a certification letter specifying the approved credit amount (prorated if statewide requests exceeded $9M). Retain this letter — it is required to claim the credit on your tax return.

~5 hrs
4

Claim on Form F-1120

Enter the certified credit amount on your Florida Corporate Income Tax Return (Form F-1120). Apply against corporate income tax liability, subject to the 50% liability cap. Any unused credit carries forward up to 5 tax years.

~5 hrs

Industry & certifications

NAICS codes: 541511, 541512, 541714, 541715, 325412, 336411

Insider tip

The March 20–26 application window is hard. Set a calendar alert now — missing it by one day means losing the credit for the entire year. Engage a CPA by February.

Deadline & timing

Applications open March 20 and close March 26 (or March 27 per some statutory references). Missing this narrow window forfeits the credit for that tax year — there is no rolling or extended intake. After receiving a Department of Commerce certification letter, the credit is claimed on Form F-1120 (Florida Corporate Income Tax Return). The $9M annual cap is shared among all certified applicants; if total approved credits exceed $9M, each applicant receives a prorated share.

Programs that stack well

Research & Development Tax Credit (Section 41)

Related programs

Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.