Research and Development Tax Credit:
HB 1377 would amend Florida’s research and development tax credit statute to increase the annual statewide cap on credits that may be awarded to business enterprises. Under current law, the combined total amount of credits available each calendar year is $9 million; the bill would raise that cap to $50 million. It also removes obsolete language tied to a past 2018 special allocation and keeps the existing application window and prorated allocation process if requests exceed the cap.
The bill specifies that the higher cap would first apply to the 2026 allocation of tax credits for qualified research expenses incurred in calendar year 2025. The effective date would be July 1, 2025. In practical terms, the measure would expand the amount of state tax relief available to businesses conducting qualifying research and development activities in Florida, potentially increasing the number and size of credits awarded each year.
HB 1377 would amend section 220.196, Florida Statutes, by substantially increasing the annual ceiling on research and development tax credits from $9 million to $50 million. This would expand the state’s tax expenditure for qualifying business enterprises and could reduce corporate income tax liability for companies with eligible research expenses. The bill preserves the existing application timeline and prorated distribution mechanism, so if demand exceeds the cap, credits would still be allocated proportionally among applicants.
There is no committee transcript or recorded vote history available in the provided materials, so direct debate on the bill is not shown. The bill’s introduction suggests a pro-business, pro-innovation policy approach aimed at encouraging research and development activity in Florida. Its failure in the Ways & Means Committee indicates that, despite the policy goal, the measure did not advance through the committee process.
The main point of contention is likely fiscal: raising the annual cap from $9 million to $50 million would significantly increase the state’s tax credit exposure and reduce revenue, which may concern lawmakers focused on budget impacts and the effectiveness of tax incentives. Supporters would likely emphasize economic development, innovation, and competitiveness for Florida businesses, while opponents may question whether the larger credit cap is justified or whether the state should expand this incentive without clearer evidence of return on investment.