HB 529 Summary

• Creates the Defense Works in Florida Incentive program allowing Florida prime contractors to reduce adjusted federal income by 4 percent of certified qualified subcontract awards to small businesses.

• Defines "qualified subcontract award" as defense work subcontracted to Florida small businesses with 250 or fewer employees, valued over $250,000, and executed in-state (effective July 1, 2015 forward).

• Establishes caps allowing the Department of Economic Opportunity to certify up to $250 million per contractor annually and $2.5 billion in total aggregate qualified subcontract awards per calendar year.

• Requires prime contractors to apply separately for each subcontract award and provide supporting documentation; allows tax reduction only for taxable years beginning January 1, 2016 and in years when payments are made to subcontractors.

• Amends section 220.13 to allow a 4 percent subtraction of qualified subcontract award amounts from adjusted federal income, divided by the apportionment factor; act takes effect July 1, 2015.