HCS/HB 2260 - Current law prohibits the approval, award, or issuance of tax credits for qualified research expenses after January 1, 2005. The act removes the prohibition on approval, award, and issuance and allows a tax credit equal to no more than six and one-half percent of a taxpayer's qualified research expenses. The annual aggregate cap on the amount of these tax credits that can be authorized by the department is increased from nine million to ten million dollars. Qualified research expenses will be limited to those incurred in the research and development of agricultural biotechnology, plant genomics products, diagnostic and therapeutic medical devices, and prescription pharmaceuticals consumed by humans or animals. Expenses incurred in the research, development, and manufacturing of power system technology for aerospace, space, defense, or implantable or wearable medical devices are also permitted. The director of the Department of Economic Development may allow a taxpayer to transfer up to forty percent of the tax credits issued, but not yet claimed, between January 1, 2009, and December 31, 2015. Applications for qualified research expense tax credits must be filed between January 1st and July 1st for claims for the previous year and the director must act on such applications between August 1st and August 15th of each year. No one taxpayer can be issued more than thirty percent of the total amount of tax credits authorized in any calendar year.JASON ZAMKUS
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