This bill amends the Income Tax Act of 1967 by adding two new sections, 677a and 717a, which establish a tax credit for qualified research and development expenses incurred by taxpayers and employers, respectively, starting from tax years beginning on or after January 1, 2025. Under section 677a, taxpayers can claim a credit equal to 15% of their qualified research and development expenses, with a cap on the total credits allowed across all claimants in a single calendar year set at $25 million. The bill outlines the process for submitting tentative claims and stipulates that if the total claims exceed this cap, the credits will be prorated among claimants. Additionally, any unused credit can be carried forward for up to 15 years.

Section 717a mirrors the provisions of section 677a but applies specifically to employers, allowing them to claim a similar 15% credit against taxes withheld and remitted to the state. Like the taxpayer credit, the employer credit is also subject to the same $25 million aggregate limit and prorating rules. Both sections define "qualified research and development expenses" in relation to advanced nuclear technologies and require that the research be conducted within the state. The enactment of this bill is contingent upon the passage of several other related bills in the legislature.

Statutes affected:
Substitute (H-1): 206.1, 206.847
House Introduced Bill: 206.1, 206.847
As Passed by the House: 206.1, 206.847