FL S0596

Authorizes Florida prime contractors awarded federal defense contracts to apply for certification to reduce adjusted federal income by 4 percent of qualified subcontract awards made to Florida small businesses.

Eligible subcontractors must maintain primary business in Florida, have 250 or fewer employees, and have no subsidiary or affiliate relationship to the prime contractor.

Qualified subcontract awards must exceed $250,000, involve defense-related work (manufacturing, engineering, construction, research, development, or support for U.S. Armed Forces or national security), and be executed in-state.

Department of Economic Opportunity may certify up to $250 million in aggregate subcontract awards per contractor annually and up to $2.5 billion statewide annually, limiting reduced taxes to $550,000 per contractor and $5.5 million statewide per calendar year.

Incentive applies to taxable years beginning January 1, 2014, and becomes effective July 1, 2014.