FL S0980

Creates the Defense Works in Florida Incentive program allowing Florida prime contractors on federal defense contracts to reduce adjusted federal income by 4 percent of qualified subcontract awards made to Florida small businesses with 250 or fewer employees.

Defines qualified defense work as prime contracts from the Federal Government for manufacturing, engineering, construction, research, development, or other activities supporting the U.S. Armed Forces or national security, including space-related activities.

Requires qualified subcontract awards to exceed $250,000, be executed in Florida, and awarded to Florida small business subcontractors with no subsidiary or affiliate relationship to the prime contractor; applies to contracts executed on or after July 1, 2015.

Caps certification at $125 million per prime contractor per calendar year and $1.25 billion total statewide per calendar year; Department of Economic Opportunity must certify awards and notify Department of Revenue within 10 days.

Allows contractors to claim the income reduction only for taxable years beginning January 1, 2016 or later, with separate applications required for each qualified subcontract award; takes effect July 1, 2015.