THE BILL ITSELF
CS/HB 1041
Business Development Incentives for Veterans and Military Spouses
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A bill to be entitled
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An act relating to business development incentives for
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veterans and military spouses; creating s. 295.189,
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F.S.; providing a short title; providing legislative
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findings and intent; providing definitions; requiring
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the Department of State to waive specified fees for
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certain businesses; providing eligibility and
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registration requirements for such waivers; providing
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applicability; providing tax exemptions for certain
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businesses; providing eligibility requirements for
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such exemptions; requiring the Department of Revenue
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to establish procedures for claiming such exemptions;
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providing applicability; providing for rulemaking and
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interagency cooperation; providing annual reporting
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requirements; providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Section 295.189, Florida Statutes, is created
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to read:
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295.189 Business development incentives for veterans and
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military spouses.—
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(1) SHORT TITLE.—This section may be cited as the "Florida
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Veterans and Military Spouses Business Development Act."
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(2) LEGISLATIVE FINDINGS AND INTENT.—
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(a) The Legislature finds that veterans and military
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spouses contribute significantly to this state's economy through
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their skills, expertise, and entrepreneurial efforts.
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(b) The Legislature recognizes the challenges of frequent
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relocations and economic instability faced by many military
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spouses.
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(c) It is the intent of the Legislature that this act
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attract and support veteran-owned and military spouse-owned
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businesses by providing incentives.
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(3) DEFINITIONS.—As used in this section, the term:
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(a) "Military spouse" means a spouse of:
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1. An active duty member of the United States Armed
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Forces; or
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2. A veteran.
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(b) "Veteran" has the same meaning as in s. 1.01(14).
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(c) "Veteran-owned or military spouse-owned business"
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means a business entity:
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1. That employs 200 or fewer permanent full-time
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employees.
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2. That, together with its affiliates, has a net worth of
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$5 million or less or, if a sole proprietorship, has a net worth
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of $5 million or less including personal and business
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investments.
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3. That is organized to engage in commercial transactions.
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4. That is domiciled in this state.
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5. That is at least 51 percent owned and operated by one
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or more veterans or military spouses.
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6. The management and daily business operations of which
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are controlled by one or more veterans or military spouses.
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7. That has a professional license, if required by the
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industry, in the name of a veteran or military spouse who owns
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the business entity.
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(4) FEE WAIVER.—
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(a) The Department of State shall waive all fees for:
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1. A new business established by a veteran or military
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spouse.
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2. An existing veteran-owned or military spouse-owned
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business that relocates to this state.
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(b) The Department of State shall establish registration
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requirements for such fee waivers, which must include:
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1. For veterans, a DD Form 214 or another acceptable form
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of identification as specified by the United States Department
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of Veterans' Affairs; or
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2. For military spouses, verification of a military spouse
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relationship and that the other spouse is on active duty or a
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veteran.
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(c) The fee waivers apply to veteran-owned or military
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spouse-owned businesses established between July 1, 2026, and
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June 30, 2031.
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(5) TAX EXEMPTIONS.—
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(a) Eligible veteran-owned and military spouse-owned
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businesses shall receive:
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1. A 5-year tax exemption from the corporate income tax.
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a. A business that is 100 percent veteran-owned or
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military spouse-owned shall receive the 5-year tax exemption
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after being in business for at least 5 years.
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b. A business that is at least 51 percent veteran-owned or
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military spouse-owned but does not qualify for the tax exemption
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under sub-subparagraph a. shall receive the 5-year tax exemption
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after being in business for at least 7 years.
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2. A one-time sales tax exemption on equipment and
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supplies directly related to business operations.
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(b) The Department of Revenue shall establish procedures
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for claiming the tax exemptions.
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(c) For veteran-owned and military spouse-owned businesses
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relocating to this state, the tax exemptions apply for 5 years
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after the date on which the business is established.
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(6) ADMINISTRATION.—The Department of Veterans' Affairs,
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the Department of Revenue, and the Department of State shall:
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(a) Develop rules for administering this section.
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(b) Ensure interagency cooperation for seamless
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implementation of this section.
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(7) ANNUAL REPORTING.—Beginning December 31, 2026, and
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each December 31 thereafter, the Department of Veterans' Affairs
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shall submit a report to the Governor, the President of the
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Senate, and the Speaker of the House of Representatives that
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includes:
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(a) The number of veteran-owned and military spouse-owned
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businesses that were established in this state or that relocated
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to this state.
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(b) Economic metrics such as job creation and tax revenue
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impact from veteran-owned and military spouse-owned businesses.
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(c) Demographic data for the participating veterans and
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military spouses.
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Section 2. This act shall take effect July 1, 2026.