Bill Text: FL H0133 | 2010 | Regular Session | Introduced
Bill Title: Commercial Launch Zone Tax Incentives
Spectrum: Strong Partisan Bill (Republican 22-2)
Status: (Failed) 2010-04-30 - Died in Committee on Economic Development Policy (EDCA) [H0133 Detail]
Download: Florida-2010-H0133-Introduced.html
| HB 133 |
| 1 | |
| 2 | An act relating to commercial launch zone tax incentives; |
| 3 | creating s. 220.194, F.S.; providing intent; providing |
| 4 | definitions; authorizing certain commercial spaceflight |
| 5 | businesses to take a credit against the corporate income |
| 6 | tax for certain commercial spaceflight projects; |
| 7 | specifying eligible tax credits; specifying criteria, |
| 8 | requirements, and limitations for individual tax credits; |
| 9 | establishing eligibility requirements for the tax credits; |
| 10 | allowing for the carryforward of tax credits under certain |
| 11 | circumstances; providing application and certification |
| 12 | requirements; requiring the Office of Tourism, Trade, and |
| 13 | Economic Development to determine the eligibility of |
| 14 | taxpayers; providing for the expiration and renewal of a |
| 15 | taxpayer's eligibility for tax credits; providing for |
| 16 | administration and auditing of tax credits by the |
| 17 | Department of Revenue; requiring the return and deposit of |
| 18 | tax credits under certain circumstances; requiring the |
| 19 | office to consult with Space Florida and adopt rules for |
| 20 | tax credit applications and certifications; authorizing |
| 21 | the department to adopt rules for tax administration, |
| 22 | claims and transfers of tax credits, auditing, and |
| 23 | reporting; requiring an annual report to the Governor and |
| 24 | Legislature; amending s. 14.2015, F.S.; revising the |
| 25 | duties of the office to include administration of the tax |
| 26 | credits created by the act; amending s. 213.053, F.S.; |
| 27 | providing for sharing of confidential information; |
| 28 | amending s. 220.02, F.S.; revising legislative intent |
| 29 | relating to the order for applying tax credits; amending |
| 30 | s. 220.13, F.S.; specifying that net operating losses |
| 31 | taken or transferred as corporate income tax credits may |
| 32 | not also be deducted from income; amending s. 220.16, |
| 33 | F.S.; adding the financial assistance obtained by the sale |
| 34 | of tax credits pursuant to s. 220.194, F.S., to the |
| 35 | category of nonbusiness income that must be reported; |
| 36 | providing an effective date. |
| 37 | |
| 38 | Be It Enacted by the Legislature of the State of Florida: |
| 39 | |
| 40 | Section 1. Section 220.194, Florida Statutes, is created |
| 41 | to read: |
| 42 | 220.194 Corporate income tax credits for commercial |
| 43 | spaceflight projects in Florida's commercial launch zone.-- |
| 44 | (1) INTENT.--The intent of this section is to create |
| 45 | incentives to attract commercial launch, payload, and other |
| 46 | commercial space business to this state. |
| 47 | (2) DEFINITIONS.--As used in this section, the term: |
| 48 | (a) "Commercial launch zone" means an area within |
| 49 | spaceport territory, as defined in s. 331.303(18). |
| 50 | (b) "Certified commercial spaceflight business" means a |
| 51 | business that has been certified by the office; is registered |
| 52 | with the Secretary of State to do business in this state; and is |
| 53 | currently undertaking in this state, for nongovernmental |
| 54 | purposes only, the following activities that will eventually |
| 55 | result in a launch from a commercial launch zone: designing or |
| 56 | manufacturing a launch vehicle, reentry vehicle, or components |
| 57 | thereof; providing a launch service or reentry service; or |
| 58 | providing the payload for a launch vehicle or reentry vehicle. |
| 59 | The business may participate in more than one commercial |
| 60 | spaceflight project at a time. For the purposes of applying for |
| 61 | the tax incentives created in this section, a certified |
| 62 | commercial spaceflight business also must have: |
| 63 | 1. Created, filled, and retained at least 35 net new jobs |
| 64 | associated with an individual spaceflight project within the 3 |
| 65 | calendar years prior to claiming the credit; |
| 66 | 2. Invested a total of at least $15 million in an |
| 67 | individual spaceflight project during the 3 calendar years prior |
| 68 | to claiming the credit; and |
| 69 | 3. Participated in a commercial spaceflight project that |
| 70 | resulted in a successful launch from a commercial launch zone |
| 71 | within the previous 3 years. |
| 72 | (c) "Commercial spaceflight project" means an activity |
| 73 | performed by a certified commercial spaceflight business related |
| 74 | to the launch or reentry of a launch vehicle or reentry vehicle |
| 75 | for launches from a commercial launch zone. The term includes a |
| 76 | launch service or reentry service, and any process that |
| 77 | validates hardware or components to meet design and workmanship |
| 78 | criteria for space launch vehicles per United States Department |
| 79 | of Defense and National Aeronautics and Space Administration |
| 80 | guidelines. |
| 81 | (d) "Launch" means to place or attempt to place a launch |
| 82 | vehicle or reentry vehicle and any payload from Earth into a |
| 83 | suborbital trajectory, into Earth orbit in outer space, or |
| 84 | otherwise into outer space. |
| 85 | (e) "Launch service" means an activity related to the |
| 86 | preparation of a launch vehicle and any payload for launch and |
| 87 | the conduct of a launch. |
| 88 | (f) "New job" means a full-time equivalent position that |
| 89 | is created by a certified commercial spaceflight business on or |
| 90 | after January 1, 2011, to work on a commercial spaceflight |
| 91 | project; is not held by an owner, partner, or majority |
| 92 | stockholder of the business; is not an administrative, clerical, |
| 93 | or janitorial position; and is filled by an employee. The same |
| 94 | job may not be counted more than once for the purposes of |
| 95 | claiming incentives created by this section. |
| 96 | (g) "Office" means the Governor's Office of Tourism, |
| 97 | Trade, and Economic Development. |
| 98 | (h) "Outer space" means an altitude of at least 50 miles |
| 99 | above the Earth's surface. |
| 100 | (i) "Payload" means an object that a certified commercial |
| 101 | spaceflight business undertakes to place in outer space by means |
| 102 | of a launch vehicle or reentry vehicle, including components of |
| 103 | the vehicle specifically designed or adapted for the object. |
| 104 | (j) "Reentry" means to return or attempt to return a |
| 105 | reentry vehicle and any payload from Earth orbit, or from outer |
| 106 | space, to Earth. |
| 107 | (k) "Reentry service" means an activity related to the |
| 108 | preparation of a reentry vehicle and any payload for reentry and |
| 109 | conduct of the reentry. |
| 110 | (l) "Spaceport territory" has the same meaning as defined |
| 111 | in s. 331.303(18). |
| 112 | (m) "Space vehicle" means any spacecraft, satellite, |
| 113 | upper-stage, or launch vehicle system. |
| 114 | (n) "Successful launch" means a launch that successfully |
| 115 | places a launch vehicle or reentry vehicle and any payload from |
| 116 | Earth into a suborbital trajectory, into Earth orbit in outer |
| 117 | space, or otherwise into outer space. |
| 118 | (o) "Taxpayer" has the same meaning as defined in s. |
| 119 | 220.03. |
| 120 | (3) TAX CREDITS.--For any tax year beginning on or after |
| 121 | January 1, 2014, a certified commercial spaceflight business |
| 122 | providing or conducting commercial spaceflight projects may |
| 123 | select one of the following tax credits for which it is |
| 124 | certified: |
| 125 | (a) Nontransferable corporate income tax credit.--A credit |
| 126 | equal to 50 percent of the net tax imposed by this chapter shall |
| 127 | be granted to a certified commercial spaceflight business. Under |
| 128 | no circumstances may the business claim this credit in any tax |
| 129 | year that exceeds its corporate income tax liability that same |
| 130 | tax year. |
| 131 | (b) Transferable net operating loss tax credit.--The |
| 132 | certified commercial spaceflight business may convert its net |
| 133 | operating loss that has not otherwise been deducted from income |
| 134 | for Florida tax purposes to a transferable tax credit as |
| 135 | provided below. |
| 136 | 1. In addition to meeting the requirements in paragraph |
| 137 | (2)(b), the business must: |
| 138 | a. Have incurred net operating losses in any of the |
| 139 | previous 3 calendar years; and |
| 140 | b. Not be at least 50 percent owned or controlled, |
| 141 | directly or indirectly, by another corporation that has |
| 142 | demonstrated positive net income in any of the 3 previous years |
| 143 | of ongoing operations, or not be part of a consolidated group of |
| 144 | affiliated corporations, as filed for federal income tax |
| 145 | purposes, which in the aggregate demonstrated positive net |
| 146 | income in any of the 3 previous years of ongoing operations. |
| 147 | 2. The amount of the transferable tax credit is equal to: |
| 148 | a. One hundred percent of the net operating losses |
| 149 | incurred by a certified commercial spaceflight business during |
| 150 | its first full year of operations. |
| 151 | b. One hundred percent of the net operating losses |
| 152 | incurred by a certified commercial spaceflight business during |
| 153 | its second full year of operations. |
| 154 | c. One hundred percent of the net operating losses |
| 155 | incurred by a certified commercial spaceflight business during |
| 156 | its third full year of operations. |
| 157 | 3. A certified commercial spaceflight business allowed a |
| 158 | tax credit under this paragraph may transfer all or part of a |
| 159 | transferable tax credit to any taxpayer that is subject to the |
| 160 | tax imposed by this chapter. The certified commercial |
| 161 | spaceflight business has 5 years after the date of its original |
| 162 | certification to transfer a net operating loss tax credit. The |
| 163 | transfer must be by written agreement for consideration of no |
| 164 | less than 75 percent of the credit's face value. The transferee |
| 165 | is entitled to apply the credit to the taxes owed under this |
| 166 | chapter, and may carry forward an unused credit up to 5 years. |
| 167 | Under no circumstances may the transferee claim a credit in any |
| 168 | tax year that exceeds the corporate income taxes it owes that |
| 169 | same tax year. |
| 170 | 4. The office may not approve a cumulative amount of |
| 171 | transferrable net operating loss tax credits that may result in |
| 172 | the claim of more than $50 million in tax credits during a |
| 173 | single state fiscal year. However, the potential for a taxpayer |
| 174 | to carry forward an unused tax credit may not be considered in |
| 175 | calculating the annual limit. |
| 176 | (c) Jobs tax credit.--A credit against the tax imposed by |
| 177 | this chapter shall be granted to a certified commercial |
| 178 | spaceflight business, in an amount equal to 10 percent of the |
| 179 | annual wages subject to unemployment tax paid by the commercial |
| 180 | spaceflight business to each employee in a new job, not to |
| 181 | exceed $7,500 per employee. The credits may be applied up to the |
| 182 | amount of taxes owed under this chapter for the tax year in |
| 183 | which they are claimed. Unused credits may be carried forward |
| 184 | for up to 5 years. The office may not approve a cumulative |
| 185 | amount of jobs tax credits that may result in the claim of more |
| 186 | than $15 million in tax credits in a single state fiscal year. |
| 187 | However, the potential for a taxpayer to carry forward an unused |
| 188 | tax credit may not be considered in calculating the annual |
| 189 | limit. |
| 190 | (d) Machinery and equipment credit.--A credit against the |
| 191 | tax imposed by this chapter shall be granted to a certified |
| 192 | commercial spaceflight business that invests a cumulative total |
| 193 | of at least $500,000 in machinery and equipment that is used for |
| 194 | a commercial spaceflight project. An investment in machinery and |
| 195 | equipment may be claimed once. The amount of the credit is equal |
| 196 | to 7.5 percent of the investment of machinery and equipment. The |
| 197 | taxpayer may only claim a credit not exceeding 50 percent of the |
| 198 | taxpayer's tax liability in the year in which it is claimed. If |
| 199 | credit granted under this paragraph is not fully used in any one |
| 200 | tax year because of insufficient tax liability, the unused |
| 201 | amount may be carried forward for up to 5 years. |
| 202 | (4) ADMINISTRATION.-- |
| 203 | (a) Unless transferred as provided in paragraph (3)(b), |
| 204 | credits awarded under this section may be granted only against |
| 205 | the corporate income tax liability generated by or arising out |
| 206 | of a commercial spaceflight project, as documented in the |
| 207 | business's annual audit prepared by a certified public |
| 208 | accountant licensed to do business in this state and verified by |
| 209 | the office. |
| 210 | (b) Certified spaceflight businesses may not file |
| 211 | consolidated returns for the purposes of claiming the tax |
| 212 | incentives described paragraphs (3)(a)-(d). |
| 213 | (c) It is the responsibility of the certified commercial |
| 214 | spaceflight business or transferee to demonstrate to the |
| 215 | office's and the department's satisfaction that it is eligible |
| 216 | for credit under this section. |
| 217 | (5) APPLICATION AND CERTIFICATION.--To claim tax credits |
| 218 | under this section, a commercial spaceflight business must |
| 219 | submit a certification application to Space Florida for review. |
| 220 | The application must include the following information, along |
| 221 | with a $250 nonrefundable fee: |
| 222 | (a) The name and physical Florida address of the taxpayer. |
| 223 | (b) Documentation that the taxpayer is a commercial |
| 224 | spaceflight business. |
| 225 | (c) Documentation of the business's current commercial |
| 226 | spaceflight project and any other information it will need to |
| 227 | qualify for the tax credits, where applicable. |
| 228 | (d) The total amount and types of credits sought. |
| 229 | (e) The amount of transferable tax credits to be |
| 230 | transferred, if any; when the business expects to transfer them; |
| 231 | and the name and address of the recipient taxpayer or taxpayers. |
| 232 | (f) A copy of an audit or audits of the pertinent tax |
| 233 | years prepared by a certified public accountant licensed to |
| 234 | practice in this state, that specifies, if applicable, that |
| 235 | portion of the business's activities related to commercial |
| 236 | spaceflight projects. |
| 237 | (g) An acknowledgement that it must file an annual report |
| 238 | on the project's progress with Space Florida and the office. |
| 239 | (h) Any other information necessary to demonstrate that |
| 240 | the applicant meets the job creation, investment, and other |
| 241 | requirements of this section. |
| 242 | |
| 243 | Within 60 days after receipt of the application, the executive |
| 244 | staff of Space Florida shall evaluate the application and |
| 245 | recommend it for certification or denial of certification by the |
| 246 | office. The executive director of the office has 30 days |
| 247 | following receipt of Space Florida's recommendation to approve |
| 248 | or deny the application. The office shall provide a letter of |
| 249 | certification to the applicant, if approved. If the office |
| 250 | denies any part of the application, it shall inform the |
| 251 | applicant of the grounds for the denial. A copy of the |
| 252 | certification shall be submitted to the department within 10 |
| 253 | days after the executive director's decision. |
| 254 | (6) COMMERCIAL SPACEFLIGHT BUSINESS; EXPIRATION OF |
| 255 | ELIGIBILITY FOR TAX CREDITS; RENEWAL.--Eligibility of a |
| 256 | certified commercial spaceflight business for credits under this |
| 257 | section shall expire 10 years after the executive director of |
| 258 | the office certifies that the commercial spaceflight business is |
| 259 | eligible for the credit program, or 10 years after the business' |
| 260 | last successful launch of its commercial spaceflight project, |
| 261 | whichever occurs later. A certified commercial spaceflight |
| 262 | business whose eligibility expires under this subsection may |
| 263 | renew its eligibility for another 10 years, upon a successful |
| 264 | launch that results from its commercial spaceflight project. |
| 265 | (7) ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF |
| 266 | CREDITS.-- |
| 267 | (a) In addition to its existing audit and investigative |
| 268 | authority, the department may perform any additional financial |
| 269 | and technical audits and investigations, including examining the |
| 270 | accounts, books, and financial records of the tax credit |
| 271 | applicant, which are necessary to verify the eligible costs |
| 272 | included in the tax credit return and to ensure compliance with |
| 273 | this section. The office shall provide technical assistance when |
| 274 | requested by the department on any technical audits or |
| 275 | examinations performed under this subsection. |
| 276 | (b) It is grounds for forfeiture of previously claimed and |
| 277 | received tax credits if the department determines, as a result |
| 278 | of an audit or examination, or from information received from |
| 279 | the office, that a certified commercial spaceflight business, or |
| 280 | in the case of transferred tax credits a taxpayer, received tax |
| 281 | credits under this section to which the certified commercial |
| 282 | spaceflight business or taxpayer was not entitled. The certified |
| 283 | commercial spaceflight business or taxpayer is responsible for |
| 284 | returning forfeited tax credits to the department, and any |
| 285 | returned funds shall be deposited in the state's General Revenue |
| 286 | Fund. |
| 287 | (c) The certified commercial spaceflight business must |
| 288 | repay the credit amount claimed or transferred if its net |
| 289 | operating loss is adjusted by amendment or as a result of any |
| 290 | other recomputation or redetermination of federal or Florida |
| 291 | taxable income or loss. The certified commercial spaceflight |
| 292 | business also is liable for a penalty equal to the amount of the |
| 293 | credit claimed or transferred, reduced in proportion to the |
| 294 | amount of the net operating loss certified for transfer over the |
| 295 | amount of the certified net operating loss disallowed. The |
| 296 | applicant and its successors shall maintain all records |
| 297 | necessary to support the reported net operating loss. |
| 298 | (d) The office may revoke or modify any written decision |
| 299 | granting eligibility for tax credits under this section if it is |
| 300 | discovered that the certified commercial spaceflight business |
| 301 | submitted any false statement, representation, or certification |
| 302 | in any application, record, report, plan, or other document |
| 303 | filed in an attempt to receive tax credits under this section. |
| 304 | The office shall immediately notify the department of any |
| 305 | revoked or modified orders affecting previously granted tax |
| 306 | credits. Additionally, the certified commercial spaceflight |
| 307 | business must notify the department of any change in its tax |
| 308 | credit claimed. |
| 309 | (e) The certified commercial spaceflight business shall |
| 310 | file with the department an amended return or other report as |
| 311 | the department prescribes by rule and shall pay any required tax |
| 312 | and interest within 60 days after the certified commercial |
| 313 | spaceflight business receives notification from the office that |
| 314 | previously approved tax credits have been revoked or modified. |
| 315 | If the revocation or modification order is contested, the |
| 316 | certified commercial spaceflight business shall file an amended |
| 317 | return or other report as provided in this paragraph within 60 |
| 318 | days after a final order is issued following proceedings. |
| 319 | (f) The department may assess additional tax, penalty, and |
| 320 | interest as permitted by s. 95.091. |
| 321 | (8) RULES.-- |
| 322 | (a) The office, in consultation with Space Florida, shall |
| 323 | adopt rules under ss. 120.536(1) and 120.54 to administer this |
| 324 | section, including rules relating to the certification forms for |
| 325 | commercial spaceflight businesses to complete, and the |
| 326 | application and certification procedures, guidelines, and |
| 327 | requirements necessary to administer this section. |
| 328 | (b) The department may adopt rules under ss. 120.536(1) |
| 329 | and 120.54 to administer this section, including rules relating |
| 330 | to: |
| 331 | 1. The forms required to claim a tax credit under this |
| 332 | section, the requirements and basis for establishing an |
| 333 | entitlement to a credit, and the examination and audit |
| 334 | procedures required to administer this section. |
| 335 | 2. The implementation and administration of the provisions |
| 336 | allowing a transfer of a net operating loss as a tax credit, |
| 337 | including rules prescribing forms, reporting requirements, and |
| 338 | specific procedures, guidelines, and requirements necessary to |
| 339 | perform the transfer. |
| 340 | 3. The minimum portion of the credit that is available for |
| 341 | transfer. |
| 342 | (9) ANNUAL REPORT.--The office, in cooperation with Space |
| 343 | Florida and the department, shall submit an annual report of the |
| 344 | commercial launch zone incentive program's activities to the |
| 345 | Governor, the President of the Senate, and the Speaker of the |
| 346 | House of Representatives by November 30 of each year, beginning |
| 347 | in 2014. |
| 348 | Section 2. Paragraph (f) of subsection (2) of section |
| 349 | 14.2015, Florida Statutes, is amended to read: |
| 350 | 14.2015 Office of Tourism, Trade, and Economic |
| 351 | Development; creation; powers and duties.-- |
| 352 | (2) The purpose of the Office of Tourism, Trade, and |
| 353 | Economic Development is to assist the Governor in working with |
| 354 | the Legislature, state agencies, business leaders, and economic |
| 355 | development professionals to formulate and implement coherent |
| 356 | and consistent policies and strategies designed to provide |
| 357 | economic opportunities for all Floridians. To accomplish such |
| 358 | purposes, the Office of Tourism, Trade, and Economic Development |
| 359 | shall: |
| 360 | (f)1. Administer the Florida Enterprise Zone Act under ss. |
| 361 | 290.001-290.016, the community contribution tax credit program |
| 362 | under ss. 220.183 and 624.5105, the tax refund program for |
| 363 | qualified target industry businesses under s. 288.106, the tax- |
| 364 | refund program for qualified defense contractors and space |
| 365 | flight business contractors under s. 288.1045, contracts for |
| 366 | transportation projects under s. 288.063, the sports franchise |
| 367 | facility program under s. 288.1162, the professional golf hall |
| 368 | of fame facility program under s. 288.1168, the expedited |
| 369 | permitting process under s. 403.973, the Rural Community |
| 370 | Development Revolving Loan Fund under s. 288.065, the Regional |
| 371 | Rural Development Grants Program under s. 288.018, the Certified |
| 372 | Capital Company Act under s. 288.99, the Florida State Rural |
| 373 | Development Council, the Rural Economic Development Initiative, |
| 374 | the corporate income tax credits for commercial spaceflight |
| 375 | projects under s. 220.194, and other programs that are |
| 376 | specifically assigned to the office by law, by the |
| 377 | appropriations process, or by the Governor. Notwithstanding any |
| 378 | other provisions of law, the office may expend interest earned |
| 379 | from the investment of program funds deposited in the Grants and |
| 380 | Donations Trust Fund to contract for the administration of the |
| 381 | programs, or portions of the programs, enumerated in this |
| 382 | paragraph or assigned to the office by law, by the |
| 383 | appropriations process, or by the Governor. Such expenditures |
| 384 | shall be subject to review under chapter 216. |
| 385 | 2. The office may enter into contracts in connection with |
| 386 | the fulfillment of its duties concerning the Florida First |
| 387 | Business Bond Pool under chapter 159, tax incentives under |
| 388 | chapters 212 and 220, tax incentives under the Certified Capital |
| 389 | Company Act in chapter 288, foreign offices under chapter 288, |
| 390 | the Enterprise Zone program under chapter 290, the Seaport |
| 391 | Employment Training program under chapter 311, the Florida |
| 392 | Professional Sports Team License Plates under chapter 320, |
| 393 | Spaceport Florida under chapter 331, Expedited Permitting under |
| 394 | chapter 403, and in carrying out other functions that are |
| 395 | specifically assigned to the office by law, by the |
| 396 | appropriations process, or by the Governor. |
| 397 | Section 3. Paragraph (z) is added to subsection (8) of |
| 398 | section 213.053, Florida Statutes, to read: |
| 399 | 213.053 Confidentiality and information sharing.-- |
| 400 | (8) Notwithstanding any other provision of this section, |
| 401 | the department may provide: |
| 402 | (z) Information relative to tax credits taken under s. |
| 403 | 220.194 to the Office of Tourism, Trade, and Economic |
| 404 | Development or to Space Florida. |
| 405 | |
| 406 | Disclosure of information under this subsection shall be |
| 407 | pursuant to a written agreement between the executive director |
| 408 | and the agency. Such agencies, governmental or nongovernmental, |
| 409 | shall be bound by the same requirements of confidentiality as |
| 410 | the Department of Revenue. Breach of confidentiality is a |
| 411 | misdemeanor of the first degree, punishable as provided by s. |
| 412 | 775.082 or s. 775.083. |
| 413 | Section 4. Subsection (8) of section 220.02, Florida |
| 414 | Statutes, is amended to read: |
| 415 | 220.02 Legislative intent.-- |
| 416 | (8) It is the intent of the Legislature that credits |
| 417 | against either the corporate income tax or the franchise tax be |
| 418 | applied in the following order: those enumerated in s. 631.828, |
| 419 | those enumerated in s. 220.191, those enumerated in s. 220.181, |
| 420 | those enumerated in s. 220.183, those enumerated in s. 220.182, |
| 421 | those enumerated in s. 220.1895, those enumerated in s. 221.02, |
| 422 | those enumerated in s. 220.184, those enumerated in s. 220.186, |
| 423 | those enumerated in s. 220.1845, those enumerated in s. 220.19, |
| 424 | those enumerated in s. 220.185, those enumerated in s. 220.187, |
| 425 | those enumerated in s. 220.192, those enumerated in s. 220.193, |
| 426 | |
| 427 | 220.194. |
| 428 | Section 5. Paragraphs (a) and (b) of subsection (1) of |
| 429 | section 220.13, Florida Statutes, are amended to read: |
| 430 | 220.13 "Adjusted federal income" defined.-- |
| 431 | (1) The term "adjusted federal income" means an amount |
| 432 | equal to the taxpayer's taxable income as defined in subsection |
| 433 | (2), or such taxable income of more than one taxpayer as |
| 434 | provided in s. 220.131, for the taxable year, adjusted as |
| 435 | follows: |
| 436 | (a) Additions.--There shall be added to such taxable |
| 437 | income: |
| 438 | 1. The amount of any tax upon or measured by income, |
| 439 | excluding taxes based on gross receipts or revenues, paid or |
| 440 | accrued as a liability to the District of Columbia or any state |
| 441 | of the United States which is deductible from gross income in |
| 442 | the computation of taxable income for the taxable year. |
| 443 | 2. The amount of interest which is excluded from taxable |
| 444 | income under s. 103(a) of the Internal Revenue Code or any other |
| 445 | federal law, less the associated expenses disallowed in the |
| 446 | computation of taxable income under s. 265 of the Internal |
| 447 | Revenue Code or any other law, excluding 60 percent of any |
| 448 | amounts included in alternative minimum taxable income, as |
| 449 | defined in s. 55(b)(2) of the Internal Revenue Code, if the |
| 450 | taxpayer pays tax under s. 220.11(3). |
| 451 | 3. In the case of a regulated investment company or real |
| 452 | estate investment trust, an amount equal to the excess of the |
| 453 | net long-term capital gain for the taxable year over the amount |
| 454 | of the capital gain dividends attributable to the taxable year. |
| 455 | 4. That portion of the wages or salaries paid or incurred |
| 456 | for the taxable year which is equal to the amount of the credit |
| 457 | allowable for the taxable year under s. 220.181. This |
| 458 | subparagraph shall expire on the date specified in s. 290.016 |
| 459 | for the expiration of the Florida Enterprise Zone Act. |
| 460 | 5. That portion of the ad valorem school taxes paid or |
| 461 | incurred for the taxable year which is equal to the amount of |
| 462 | the credit allowable for the taxable year under s. 220.182. This |
| 463 | subparagraph shall expire on the date specified in s. 290.016 |
| 464 | for the expiration of the Florida Enterprise Zone Act. |
| 465 | 6. The amount of emergency excise tax paid or accrued as a |
| 466 | liability to this state under chapter 221 which tax is |
| 467 | deductible from gross income in the computation of taxable |
| 468 | income for the taxable year. |
| 469 | 7. That portion of assessments to fund a guaranty |
| 470 | association incurred for the taxable year which is equal to the |
| 471 | amount of the credit allowable for the taxable year. |
| 472 | 8. In the case of a nonprofit corporation which holds a |
| 473 | pari-mutuel permit and which is exempt from federal income tax |
| 474 | as a farmers' cooperative, an amount equal to the excess of the |
| 475 | gross income attributable to the pari-mutuel operations over the |
| 476 | attributable expenses for the taxable year. |
| 477 | 9. The amount taken as a credit for the taxable year under |
| 478 | s. 220.1895. |
| 479 | 10. Up to nine percent of the eligible basis of any |
| 480 | designated project which is equal to the credit allowable for |
| 481 | the taxable year under s. 220.185. |
| 482 | 11. The amount taken as a credit for the taxable year |
| 483 | under s. 220.187. |
| 484 | 12. The amount taken as a credit for the taxable year |
| 485 | under s. 220.192. |
| 486 | 13. The amount taken as a credit for the taxable year |
| 487 | under s. 220.193. |
| 488 | 14. Any portion of a qualified investment, as defined in |
| 489 | s. 288.9913, which is claimed as a deduction by the taxpayer and |
| 490 | taken as a credit against income tax pursuant to s. 288.9916. |
| 491 | 15. The amount taken as a credit for the taxable year |
| 492 | under s. 220.194. |
| 493 | (b) Subtractions.-- |
| 494 | 1. There shall be subtracted from such taxable income: |
| 495 | a. The net operating loss deduction allowable for federal |
| 496 | income tax purposes under s. 172 of the Internal Revenue Code |
| 497 | for the taxable year, |
| 498 | b. The net capital loss allowable for federal income tax |
| 499 | purposes under s. 1212 of the Internal Revenue Code for the |
| 500 | taxable year, except that any net operating loss taken as a |
| 501 | credit to corporate income taxes owed or that is transferred, |
| 502 | pursuant to s. 220.194(3)(b), may not be deducted by the seller, |
| 503 | c. The excess charitable contribution deduction allowable |
| 504 | for federal income tax purposes under s. 170(d)(2) of the |
| 505 | Internal Revenue Code for the taxable year, and |
| 506 | d. The excess contributions deductions allowable for |
| 507 | federal income tax purposes under s. 404 of the Internal Revenue |
| 508 | Code for the taxable year. |
| 509 | |
| 510 | However, a net operating loss and a capital loss shall never be |
| 511 | carried back as a deduction to a prior taxable year, but all |
| 512 | deductions attributable to such losses shall be deemed net |
| 513 | operating loss carryovers and capital loss carryovers, |
| 514 | respectively, and treated in the same manner, to the same |
| 515 | extent, and for the same time periods as are prescribed for such |
| 516 | carryovers in ss. 172 and 1212, respectively, of the Internal |
| 517 | Revenue Code. |
| 518 | 2. There shall be subtracted from such taxable income any |
| 519 | amount to the extent included therein the following: |
| 520 | a. Dividends treated as received from sources without the |
| 521 | United States, as determined under s. 862 of the Internal |
| 522 | Revenue Code. |
| 523 | b. All amounts included in taxable income under s. 78 or |
| 524 | s. 951 of the Internal Revenue Code. |
| 525 | |
| 526 | However, as to any amount subtracted under this subparagraph, |
| 527 | there shall be added to such taxable income all expenses |
| 528 | deducted on the taxpayer's return for the taxable year which are |
| 529 | attributable, directly or indirectly, to such subtracted amount. |
| 530 | Further, no amount shall be subtracted with respect to dividends |
| 531 | paid or deemed paid by a Domestic International Sales |
| 532 | Corporation. |
| 533 | 3. In computing "adjusted federal income" for taxable |
| 534 | years beginning after December 31, 1976, there shall be allowed |
| 535 | as a deduction the amount of wages and salaries paid or incurred |
| 536 | within this state for the taxable year for which no deduction is |
| 537 | allowed pursuant to s. 280C(a) of the Internal Revenue Code |
| 538 | (relating to credit for employment of certain new employees). |
| 539 | 4. There shall be subtracted from such taxable income any |
| 540 | amount of nonbusiness income included therein, including |
| 541 | payments received for a tax credit pursuant to s. 220.194(3)(b). |
| 542 | 5. There shall be subtracted any amount of taxes of |
| 543 | foreign countries allowable as credits for taxable years |
| 544 | beginning on or after September 1, 1985, under s. 901 of the |
| 545 | Internal Revenue Code to any corporation which derived less than |
| 546 | 20 percent of its gross income or loss for its taxable year |
| 547 | ended in 1984 from sources within the United States, as |
| 548 | described in s. 861(a)(2)(A) of the Internal Revenue Code, not |
| 549 | including credits allowed under ss. 902 and 960 of the Internal |
| 550 | Revenue Code, withholding taxes on dividends within the meaning |
| 551 | of sub-subparagraph 2.a., and withholding taxes on royalties, |
| 552 | interest, technical service fees, and capital gains. |
| 553 | 6. Notwithstanding any other provision of this code, |
| 554 | except with respect to amounts subtracted pursuant to |
| 555 | subparagraphs 1. and 3., any increment of any apportionment |
| 556 | factor which is directly related to an increment of gross |
| 557 | receipts or income which is deducted, subtracted, or otherwise |
| 558 | excluded in determining adjusted federal income shall be |
| 559 | excluded from both the numerator and denominator of such |
| 560 | apportionment factor. Further, all valuations made for |
| 561 | apportionment factor purposes shall be made on a basis |
| 562 | consistent with the taxpayer's method of accounting for federal |
| 563 | income tax purposes. |
| 564 | Section 6. Subsection (5) is added to section 220.16, |
| 565 | Florida Statutes, to read: |
| 566 | 220.16 Allocation of nonbusiness income.--Nonbusiness |
| 567 | income shall be allocated as follows: |
| 568 | (5) The amount of payments received in exchange for |
| 569 | transferring a net operating loss as authorized by s. 220.194 is |
| 570 | allocable to this state. |
| 571 | Section 7. This act shall take effect January 1, 2011, and |
| 572 | credits created herein may be claimed in the tax year beginning |
| 573 | on or after January 1, 2014. |
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