Florida · research and development · FL-RD-001
Florida Research and Development Tax Credit
Publication revised September 24, 2026. Sourcebook page 76.
Credit amount / calculation
Generally 10% of Florida qualified research expenses over the base amount, subject to annual cap/proration and liability limits.
Business fit and eligible activity
Certified qualified-target-industry businesses claiming the federal research credit can apply for Florida's capped credit. Qualified research activity. Ordinary production, routine quality control and an equipment purchase alone do not qualify. Page
Eligibility and practical use
A wood-products company can miss this credit by assuming that "research" means white coats and laboratories. In practice, qualifying work can arise in process engineering, product development, automation, drying, recovery, and software. A logging company has a narrower path, but equipment-control, software, or process-development work can sometimes qualify if it satisfies the same technical tests. This program also has an advance procedural step, so the technical work should not begin on the assumption that a later application will cure the timing issue.
Illustrative business benefit
A hardwood mill spends $320,000 on a documented project to improve recovery from low-grade logs using scanner changes, controlled test runs, software adjustments, and revised sawing patterns. Assume $200,000 is ultimately treated as the relevant qualified or excess research base. At 10%, the state credit would be about $20,000 before program caps and tax-liability limits. The company would need records showing the uncertainty, alternatives tested, people involved, and results - not simply a year-end estimate of 'engineering time.'
Timing / first action
Check application or certification requirements before incurring the qualifying expense or beginning the qualifying activity.
Official sources
- Florida Department of Revenue — 2026 Allocation Report (floridarevenue.com)
Related programs
Individuals with Unique Abilities Tax Credit
$1 per eligible hour, up to $1,000 per employee
Eligible employers can receive a hiring-related credit for employees with qualifying physical or intellectual impairments.
Rural Job Tax Credit
$1,000-$1,500 per qualifying employee
Eligible manufacturing employers in designated rural counties can use job creation to reduce state tax.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.
Rehabilitation Credit (Internal Revenue Code §47)
Generally
A forest-products company rehabilitating a certified historic mill or industrial building for income-producing use may qualify.