Fla. Stat. 212.052
Research or development costs; exemption
(1)
For the purposes of the exemption provided in this section:The term “research or development” means research which has one of the following as its ultimate goal:Basic research in a scientific field of endeavor.
Advancing knowledge or technology in a scientific or technical field of endeavor.
The development of a new product, whether or not the new product is offered for sale.
The improvement of an existing product, whether or not the improved product is offered for sale.
The development of new uses of an existing product, whether or not a new use is offered as a rationale to purchase the product.
The design and development of prototypes, whether or not a resulting product is offered for sale.
The term “research or development” does not include ordinary testing or inspection of materials or products used for quality control, market research, efficiency surveys, consumer surveys, advertising and promotions, management studies, or research in connection with literary, historical, social science, psychological, or other similar nontechnical activities.
The term “costs” means cost price as defined in s. 212.02(4).The term “product” means any item, device, technique, prototype, invention, or process which is, was, or may be commercially exploitable.(a)
The term “research or development” means research which has one of the following as its ultimate goal:Basic research in a scientific field of endeavor.Advancing knowledge or technology in a scientific or technical field of endeavor.The development of a new product, whether or not the new product is offered for sale.The improvement of an existing product, whether or not the improved product is offered for sale.The development of new uses of an existing product, whether or not a new use is offered as a rationale to purchase the product.The design and development of prototypes, whether or not a resulting product is offered for sale.The term “research or development” does not include ordinary testing or inspection of materials or products used for quality control, market research, efficiency surveys, consumer surveys, advertising and promotions, management studies, or research in connection with literary, historical, social science, psychological, or other similar nontechnical activities.
(b)
The term “costs” means cost price as defined in s. 212.02(4).(c)
The term “product” means any item, device, technique, prototype, invention, or process which is, was, or may be commercially exploitable.(2)
Notwithstanding any provision of this chapter to the contrary, any person, including an affiliated group as defined in s. 1504 of the Internal Revenue Code of 1954, as amended, who manufactures, produces, compounds, processes, or fabricates in any manner tangible personal property for such taxpayer’s own use directly and solely in research or development shall not be subject to the tax imposed by this chapter upon the cost of the product so manufactured, produced, compounded, processed, or fabricated.(3)
This section does not apply to any product of research or development which is used by a person, including an affiliated group as defined in s. 1504 of the Internal Revenue Code of 1954, as amended, in the ordinary course of business, other than for research or development, except and to the extent that the knowledge, technology, science, design, plan, patent, or understanding which is derived from the product of research or development is applied in the ordinary course of business. In addition, this section does not apply to any product of research or development that is tangible personal property which is offered for sale.(4)
Any person, including an affiliated group as defined in s. 1504 of the Internal Revenue Code of 1954, as amended, who makes a fraudulent claim under this section shall be liable for the payment of the tax due, together with the penalties set forth in s. 212.085, and as otherwise provided by law.(5)
The department shall promulgate rules governing the implementation and operation of this section.
Source:
Section 212.052 — Research or development costs; exemption, https://www.flsenate.gov/Laws/Statutes/2024/0212.052 (accessed Aug. 7, 2025).