Bill > H0529

This bill establishes the "Defense Works in Florida Incentive" program, allowing Florida-based prime contractors, which are businesses awarded contracts directly from the Federal Government, to reduce their taxable income by 4% of qualified subcontract awards. A qualified subcontract award is defined as a portion of a "qualified defense work" contract (work supporting the U.S. Armed Forces or national security, including space activities) that is subcontracted by a Florida prime contractor to a Florida small business subcontractor. A Florida small business subcontractor must be based in Florida, have 250 or fewer employees, and have no affiliate relationship with the prime contractor. The subcontract must be valued at over $250,000 and executed in Florida, with awards made after July 1, 2015. The Department of Economic Opportunity (DEO) will administer the program, certifying these awards and capping the total amount of certified subcontract awards per Florida prime contractor at $250 million annually and the state's total annual certification at $2.5 billion. This reduction in taxable income, referred to as "adjusted federal income," is a key component of Florida's corporate income tax calculation. The bill also specifies that the reduction is applied in the taxable years when payments are made to the subcontractor and takes effect on July 1, 2015.