HB 397 Summary

• Creates the Commercialization Credit Transfer Program allowing eligible technology companies to transfer net operating losses as certified tax credits in exchange for private financial assistance from purchasers.

• Eligible companies must have fewer than 100 full-time employees (75% working in Florida), hold an active patent application, demonstrate net operating losses in 2 previous years, and have a documented commercialization business plan.

• Certified credits are calculated by multiplying the net operating loss apportioned to Florida by the corporate income tax rate; individual companies limited to $1 million maximum transfer and $3 million maximum per fiscal year statewide.

• Purchasers of transferred credits may claim them against corporate income tax on their next return filed within 1 year of transfer, with unused credits not carried forward.

• Program requires participating companies to file annual reports on commercialization progress and job creation; Office of Tourism, Trade, and Economic Development must report to legislature by February 1 annually; program repeals June 30, 2016 unless reenacted.