S.B. 1314 Summary

• Eliminates the base amount limitation in federal tax code section 41, allowing qualified research expense credits to be claimed without regard to previous year expenses.

• Transfers research activity tax credit certification duties from the Department of Taxation to the Department of Business, Economic Development, and Tourism (DBEDT).

• Establishes an annual aggregate cap of $5,000,000 for certified research activity tax credits, with certification on a first-come, first-served basis.

• Extends the research activity tax credit through taxable years ending on or before December 31, 2024, after which the credit automatically repeals.

• Requires DBEDT to identify tax credit applicants to the Legislature and conduct annual reporting on job creation, compensation levels, intellectual property filings, and other economic effectiveness measures.