CS/HB 155 Summary

• Creates the Defense Works in Florida Incentive allowing Florida prime contractors awarded federal defense contracts to reduce adjusted federal income by 4% of certified subcontract awards to Florida small businesses.

• Requires prime contractors to apply separately to the Department of Economic Opportunity for each qualified subcontract award valued over $250,000 and executed in the state.

• Limits department certification to $250 million per prime contractor per calendar year ($10 million reduced taxable income, $550,000 reduced taxes) and $2.5 billion total statewide per calendar year ($100 million reduced taxable income, $5.5 million reduced taxes).

• Amends corporate income tax code to allow 4% subtraction of certified subcontract awards from adjusted federal income calculation for taxable years beginning January 1, 2014.

• Applies only to qualified defense work contracts awarded after October 1, 2013, supporting U.S. Armed Forces or national security; effective July 1, 2014.