F-1196 
                                                                                                    R. 01/18 

                                                                                               Rule 12C-1.051 
                                                                                Florida Administrative Code 
                                                                                               Effective 01/18 

             Allocation for Research and Development Tax Credit for 
              Florida Corporate Income/Franchise Tax 

Applications may be filed with the Department between 12:00 a.m., ET, March 20 and 
11:59 p.m., ET, March 26 of each calendar year for which the credit is available. If the 
Sample 
total credits for all qualified applicants exceed the tax credit cap, the Department will 
allocate credits on a prorated basis. 

Instructions 

Once you complete this application, you will receive a confirmation number. The screen will 
display the information entered and confirm receipt of the electronic application for credit 
allocation. You will be able to print this information and confirmation number. 

The Department will send you written correspondence either approving an allocation of tax 
credit or explaining why a credit allocation could not be made. 
  Form
About the Research and Development Tax Credit 

The credit is available annually and is based upon qualified research expenses in Florida 
allowed under section (s.) 41 of the Internal Revenue Code (IRC). Approved tax credits will be 
based on qualified research expenses incurred during the prior calendar year. 

Who May Apply 

Corporations, as defined in s. 220.03, F.S., that also meet the definition of qualified target 
industry business, as defined in s. 288.106(2)(n), F.S., may apply. However, only qualified target 
industry businesses in the manufacturing, life sciences, information technology, aviation and 
aerospace, homeland security and defense, cloud information technology, marine sciences, 
materials science, and nanotechnology industries may qualify for a tax credit. 

Businesses that are partnerships, limited liability companies taxed as partnerships, or 
disregarded single member limited liability companies, are not corporations under Section 
220.03, F.S., and, therefore, may not apply for an allocation of credit. However, each corporate 
partner of a partnership may apply separately for an allocation of credit based on the 
corporation’s  separate research expenses, including allocated partnership research expenses, if 
the corporate partner is also a qualified target industry business. For disregarded entities, the 
corporation that owns the single member limited liability company may apply separately for an 
allocation of credit based on the corporation’s separate research expenses, including those of 
the disregarded single member limited liability company, if the corporate owner is also a qualified 
target industry business. For purposes of 26 U.S.C. s. 41, the research expenses are 
apportioned among the partners during the taxable year and are treated as paid or incurred 
directly by the partners rather than by the partnership. 

A corporation applying for the tax credit must include a letter from the Department of 
Economic Opportunity certifying that it is an eligible qualified target industry business 
with its application, or documentation that it has timely protested the Department of 
Economic Opportunity’s determination not to issue such a certification letter. 

Federal Income Tax Credit 

To receive a Florida research and development tax credit, the corporation must claim and be 
allowed a research credit for the taxable year against federal income tax for qualified research 
expenses under s. 41, IRC. Attach federal Form 6765 (Credit for Increasing Research Activities) 
and federal Form 3800 (General Business Credit) to Florida Form F-1120 (Florida Corporate 
Income/Franchise Tax Return) when claiming the Florida credit. For federal forms, see 
www.irs.gov/Forms-Pubs. 

Qualified Research Expenses 

Qualified research expenses are defined as research expenses qualifying for the credit under 
Sample 
s. 41, IRC, for in-house research expenses incurred in Florida or contract research expenses
incurred in Florida. The term "qualified research expenses" does not include research 
conducted outside Florida or research expenses that do not qualify for a credit under s. 41, IRC. 

Program Limitations 

If the total credits requested (computed as the sum of the credit allocations requested from 
Form F-1196 for all qualified applicants) exceed the annual credit cap, each qualified applicant 
will be allocated credit on a prorated basis. 

The Florida research and development tax credit taken may not exceed 50 percent of the 
  FormFlorida corporate income tax liability after all other credits have been applied in the order 
provided in s. 220.02(8), F.S. 

If the amount of qualified research expenses is reduced as a result of a federal audit or 
examination, the Florida credit must be recalculated. Amended Florida returns must be filed for 
all affected years, and the difference between the initial credit amount taken and the 
recalculated credit amount, with interest, in accordance with the provisions of s. 220.807, F.S., 
must be paid to the Department. 

Should the amount of credit requested be overstated, the percentage of the original allocation 
provided by the Department will be applied to the lesser amount of credit that should have been 
requested. 

Additional Information 

See Rule 12C-1.0196, F.A.C., for additional information on the Research and Development Tax 
Credit. 

Apply for the Research and Development Tax Credit Allocation. 

[When you click on the link above, you will be taken to a new page (see below).] 

Research and Development Tax Credit for Florida Corporate Income/Franchise Tax 

(Under section 220.196, Florida Statutes) 

Beginning 12:00 a.m., ET, March 20thand ending 11:59 p.m., ET, March 26th, you may 
apply for the credit based upon qualified research expenses incurred during the prior 
calendar year. 
Is the applicant a corporation, or treated like a corporation for federal income tax purposes? 
        
  Yes      No

IndicateSampleyour tax year: 

 Calendar year 
 Other taxable year beginning / /    and ending  / /    . 

Enter the appropriate information in the following boxes: 

Federal Employer Identification Number 
(FEIN):                                                           (999999999) 

Corporation Name: 
  Form
Date of Incorporation:                                            (MM-DD-YYYY) 

Mailing Address: 

Address (cont): 

City: 

State: 

ZIP Code: 

Contact Person: 

Contact's Telephone Number:                                       (999 999-9999) 

Contact's Email Address: 

If a consolidated Florida corporate income tax return is filed, provide the parent 
corporation's name and FEIN. 

Parent Corporation's Name: 

Parent Corporation's FEIN:                                        (999999999) 

Target Industry Business 

Is this a qualified target industry business as defined in section 288.106(2)(n), F.S., and 
certified by the Department of Economic Opportunity? Yes No 

Attach certification letter from the Department of Economic Opportunity. 

Federal Credit for Increasing Research Activities 

Is the corporation planning to claim the federal credit for increasing research activities for its 
qualified research expenses incurred during the prior calendar year? Yes      No 

Indicate the corporation's total (including non-Florida) research expenses qualifying for the 
federal credit for increasing research activities under s. 41, IRC, incurred during calendar 
year      (January 1 – December 31). 

(Enter whole dollar amount only.) 
  Sample 
$ 

Tentative Allowable Amount of Credit 

Lines (1) – (6): Compute the base amount as the average of the qualified research expenses in 
Florida for the 4 taxable years preceding the taxable year for which the credit is determined. The 
qualified research expenses taken into account in computing the base amount is determined on 
a basis consistent with the determination of qualified research expenses for the taxable year. 

  FormThe 4 taxable years used to compute the base amount must end before the calendar year for 
which the qualified research expenses are determined. For example, the base years for 
qualified research expenses incurred during calendar year 2017 should end in 2016, 2015, 
2014, and 2013*. See table below: 

                                  1st taxable    2nd taxable   3rd taxable        4th taxable 
                  Qualified 
                                  year ending    year ending   year ending      year ending 
                  research 
  Tax year end                    before the      before the         before the   before the 
                  expenses in 
                                  taxable year  taxable year   taxable year     taxable year 
                  Florida 
                                  of the credit  of the credit of the credit    of the credit 
  12/31/2017                      12/31/2016     12/31/2015    12/31/2014         12/31/2013 
  01/31/2018                      01/31/2016     01/31/2015    01/31/2014         01/31/2013 
  02/29/2018                      02/28/2016     02/28/2015    02/29/2014         02/28/2013 
  03/31/2018                      03/31/2016     03/31/2015    03/31/2014         03/31/2013 
  04/30/2018                      04/30/2016     04/30/2015    04/30/2014         04/30/2013 
  05/31/2018      1/1/2017-       05/31/2016     05/31/2015    05/31/2014         05/31/2013 
  06/30/2018      12/31/2017      06/30/2016     06/30/2015    06/30/2014         06/30/2013 
  07/31/2018                      07/31/2016     07/31/2015    07/31/2014         07/31/2013 
  08/31/2018                      08/31/2016     08/31/2015    08/31/2014         08/31/2013 
  09/30/2018                      09/30/2016     09/30/2015    09/30/2014         09/30/2013 
  10/31/2018                      10/31/2016     10/31/2015    10/31/2014         10/31/2013 
  11/30/2018                      11/30/2016     11/30/2015    11/30/2014         11/30/2013 

*If the corporation has any short years as part of the base calculation, include the corporation’s
taxable years. 

Lines (7) – (10): Compute the credit allocation requested. The tax credit is 10 percent of the 
qualified research expenses over the base amount. However, the maximum tax credit for a 
business enterprise that has not been in existence for at least 4 taxable years immediately 
preceding the taxable year of the credit is reduced by 25 percent for each taxable year for which 

the business enterprise, or a predecessor corporation that was a business enterprise, did not 
exist. 

Taxable years preceding the taxable year of the         Qualified research expenses in Florida 
                        credit                            (Enter whole dollar amount only.) 
(1)    1st taxable year end       / /       or 
                                    / /20        $ 

(2)    2nd taxable year end       / /       or 
                                    / /20        $ 

(3)    3rd taxable year end 
Sample /                            /       or 
                                    / /20        $ 

(4)    4th taxable year end       / /       or 
                                    / /20        $ 

(5)    Sum of the qualified research expenses in 
       Florida for the 4 taxable years preceding the 
                                                        $ 
       taxable year of the credit. 
       Total of Lines (1) – (4). 
(6)    Base amount. 
                                                        $ 
  FormLine (5) divided by 4. 

(7)    Enter qualified research expenses in Florida 
                                                        $ 
       during calendar year        . 
(8)    Line (7) minus Line (6). 
       If Line (6) is greater than Line (7), the amount $ 
       will be zero. 

(9)    10% of Line (8).                                 $ 

(10)   Credit allocation requested. Enter the amount 
       from Line (9). If the business enterprise did 
       not exist for the 4 preceding tax years, 
                                                        $ 
       reduce the amount from Line (9) by 25% for 
       each taxable year for which the business 
       enterprise did not exist. 

By typing your name in the space below and submitting this form, you are declaring, under 
penalties of perjury, that you have read this application and that the facts stated in it are true. 

Name: 

Title: 

                     Submit Application         Clear Application