Florida lawmakers are debating the future of business taxes in the state, with Senate Republicans proposing to block billions of dollars in corporate tax breaks tied to federal legislation.
A new Senate tax package recommends rejecting more than $3.5 billion in business tax reductions connected to President Donald Trump’s “One Big Beautiful Bill Act.” The proposal is part of a tax plan that includes the annual “piggyback” legislation, which typically updates Florida’s tax rules to match federal changes.
Senate proposal seeks to limit corporate tax breaks
Republican lawmakers have introduced legislation to partially separate Florida’s corporate tax code from federal provisions created under Trump’s tax plan. The proposal would set the state’s federal tax conformity date at January 1, 2026, but would exclude several major business tax benefits.
Among the excluded provisions are accelerated depreciation rules and changes to research expense deductions. Lawmakers say adopting these federal breaks could reduce state revenue by about $3.5 billion in the short term.
Over five years, corporations could save more than $7 billion if the state fully adopted the federal changes. Supporters of the Senate proposal argue that most of the benefits would go to large companies because roughly 99 percent of Florida businesses already do not pay state corporate income tax.
Lawmakers cite budget concerns
Florida usually aligns its tax system with federal rules through an annual update, but lawmakers say fully adopting the federal provisions would shift tax revenues into future years and reduce long-term collections.
Estimates show the state could lose roughly $400 million in annual revenue if the federal provisions are adopted. Supporters of the decoupling plan say the move would protect funding for priorities such as infrastructure and childcare, especially as the state faces other economic pressures. Several states have already taken similar steps to separate their tax systems from federal business tax changes.
Bill advances but outcome remains uncertain
The House Ways and Means Committee unanimously approved the decoupling measure on February 26, sending it forward for further debate. The Florida Legislature is still working on the 2026 budget, with a deadline of July 1.
Business groups are lobbying lawmakers to reconsider the proposal. The Florida Chamber of Commerce has argued that adopting federal tax provisions would make the state more competitive for investment.
Voters support cutting the business rent tax
A new Florida Chamber of Commerce poll shows voters favor reducing another tax that directly affects businesses.
About 53 percent of voters surveyed said Florida should eliminate the business rent tax, also known as the sales tax on commercial leases. Florida is the only state that charges a state-wide tax on commercial rent, and business groups have long pushed for its repeal.
Florida Chamber President and CEO Mark Wilson said removing the tax would make the state more competitive and reduce costs for businesses. The organisation has worked for years to reduce the tax rate from 6 percent to 2 percent and hopes lawmakers will eliminate it entirely.