HB 1125 - Capital Investment Tax Credit

• Amends section 220.191 to add new definitions for "intellectual property" and "strategic priority project" and expands tax credit eligibility beyond traditional facilities to include projects for developing copyrightable software, multimedia applications, and scripted content for theatrical/streaming/television distribution.

• Creates a 20 percent tax credit (against corporate income tax, sales/use tax, or combination) for qualifying businesses establishing intellectual property projects with aggregate eligible capital costs of at least $50 million per year for 3 years, with ability to transfer or use credits flexibly over project period through completion plus 2 years.

• Creates a 20 percent tax credit for "strategic priority projects" (intellectual property projects with measurable state value such as marketing Florida as a destination or technology skills development) with at least $75 million in eligible capital costs, allowing businesses to elect to transfer or use credits within specified timeframes.

• For intellectual property projects, eligible capital costs now include wages, salaries, and compensation paid to Florida legal residents, plus rental of tangible personal property and services directly related to development or creation, expanding beyond traditional construction and equipment costs.

• Takes effect July 1, 2021, and conformingly amends section 288.1089 to update definitions in the Innovation Incentive Program.