Bill Text: FL H0657 | 2010 | Regular Session | Introduced

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Bill Title: Corporate Income Tax Credits

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2010-04-30 - Died in Committee on PreK-12 Appropriations (CEED) [H0657 Detail]

Download: Florida-2010-H0657-Introduced.html

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HB 657

1	A bill to be entitled
2	An act relating to corporate income tax credits; creating
3	s. 220.1875, F.S.; providing legislative findings and
4	purposes; providing definitions; establishing the Florida
5	Public School Tax Credit Program; providing for credits
6	against the corporate income tax for contributions to
7	public schools for certain purposes; providing
8	limitations; authorizing public schools to determine how
9	to use undesignated contributions; requiring public
10	schools to report certain information to the Department of
11	Revenue; limiting the total annual amount of credits;
12	providing requirements for taxpayers filing consolidated
13	returns; providing procedures and requirements for
14	rescinding credits; providing for use of rescinded credits
15	by other taxpayers; specifying certain taxpayers as
16	ineligible to receive the corporate tax credit; specifying
17	administrative rules for use and application of the
18	credit; requiring the Department of Revenue and the State
19	Board of Education to adopt rules; providing requirements
20	for deposits of eligible contributions; providing criteria
21	for preservation of tax credits under certain
22	circumstances; providing a limitation; providing an
23	effective date.
24
25	Be It Enacted by the Legislature of the State of Florida:
26
27	Section 1. Section 220.1875, Florida Statutes, is created
28	to read:
29	220.1875 Credits for contributions to public schools for
30	public school expenses.-
31	(1) FINDINGS AND PURPOSE.-
32	(a) The Legislature finds that:
33	1. It has the inherent power to determine subjects of
34	taxation for general or particular public purposes.
35	2. Expanding educational opportunities and improving the
36	quality of educational services within the state are valid
37	public purposes that the Legislature may promote using its
38	sovereign power to determine subjects of taxation and exemptions
39	from taxation.
40	3. Expanding educational opportunities and the healthy
41	competition they promote are critical to improving the quality
42	of education in the state and to ensuring that all children
43	receive the high-quality education to which they are entitled.
44	(b) The purpose of this section is to:
45	1. Enable taxpayers to make private, voluntary
46	contributions to public schools in order to promote the general
47	welfare.
48	2. Enable children in this state to achieve a greater
49	level of excellence in their education.
50	3. Improve the quality of education in this state, both by
51	expanding educational opportunities for children and by creating
52	incentives for public schools to achieve excellence.
53	4. Allow corporations to claim education tax credits for
54	direct payments to public schools for educational expenses,
55	special assistance, tutoring, Foundation for Florida's Future,
56	mentoring, extracurricular activities, or character education
57	programs and pay-to-play fees associated with mental and
58	physical student development.
59	(2) DEFINITIONS.-As used in this section, the term:
60	(a) "Department" means the Department of Revenue.
61	(b) "Eligible contribution" means a monetary contribution
62	from a taxpayer, subject to the restrictions provided in this
63	section, to a public school.
64	(c) "Public school" means a school in this state that
65	provides education to students in any grades K-12 in a public
66	school district.
67	(3) PROGRAM.-The Florida Public School Tax Credit Program
68	is established.
69	(4) AUTHORIZATION TO GRANT PUBLIC SCHOOL FUNDING TAX
70	CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.-
71	(a)1. There is allowed a credit of 100 percent of an
72	eligible contribution against any tax due for a taxable year
73	under this chapter. The credit is allowed against the taxes
74	imposed by this chapter for the amount of any fees paid or cash
75	contributions made by a taxpayer during the taxable year to a
76	public school located in this state for the support of
77	educational expenses, special assistance, tutoring, Foundation
78	for Florida's Future, mentoring, extracurricular activities,
79	character education programs and pay-to-play fees. The taxpayer
80	may designate the specific use to which the contribution must be
81	applied. However, such a credit may not exceed 75 percent of the
82	tax due under this chapter for the taxable year, after the
83	application of any other allowable credits by the taxpayer. The
84	credit granted by this section shall be reduced by the
85	difference between the amount of federal corporate income tax
86	taking into account the credit granted by this section and the
87	amount of federal corporate income tax without application of
88	the credit granted by this section.
89	2. Each public school that receives contributions that are
90	not designated for a specific purpose shall determine how the
91	contributions are used. The school advisory council may make
92	recommendations as to how best to apply undesignated
93	contributions.
94	3. A public school that receives fees or a cash
95	contribution shall report to the department, in a form
96	prescribed by the department:
97	a. The total number of fee and cash contribution payments
98	received during the previous calendar year.
99	b. The total dollar amount of fees and contributions
100	received during the previous calendar year.
101	c. The total dollar amount from fees and contributions
102	received that were spent by the public school during the
103	previous calendar year.
104	(b) For each state fiscal year, the total amount of tax
105	credits and carryforward of tax credits which may be granted
106	under this section and s. 624.51055 is $118 million.
107	(c) A taxpayer who files a Florida consolidated return as
108	a member of an affiliated group pursuant to s. 220.131(1) may be
109	allowed the credit on a consolidated return basis; however, the
110	total credit taken by the affiliated group is subject to the
111	limitation established under paragraph (a).
112	(d) Effective for tax years beginning January 1, 2011, a
113	taxpayer may rescind all or part of its allocated tax credit
114	under this section. The amount rescinded shall become available
115	for purposes of the cap for that state fiscal year under this
116	section to an eligible taxpayer as approved by the department if
117	the taxpayer receives notice from the department that the
118	rescission has been accepted by the department and the taxpayer
119	has not previously rescinded any or all of its tax credit
120	allocation under this section more than once in the previous 3
121	tax years. Any amount rescinded under this paragraph shall
122	become available to an eligible taxpayer on a first-come, first-
123	served basis based on tax credit applications received after the
124	date the rescission is accepted by the department.
125	(e) A taxpayer who is eligible to receive the credit
126	provided for in s. 624.51055 is not eligible to receive the
127	credit provided by this section.
128	(5) ADMINISTRATION; RULES.-
129	(a) If the credit granted pursuant to this section is not
130	fully used in any one year because of insufficient tax liability
131	on the part of the corporation, the unused amount may be carried
132	forward for a period not to exceed 3 years; however, any
133	taxpayer that seeks to carry forward an unused amount of tax
134	credit must submit an application for allocation of tax credits
135	or carryforward credits as required in paragraph (d) in the year
136	that the taxpayer intends to use the carryforward. This
137	carryforward applies to all approved contributions made after
138	January 1, 2011. A taxpayer may not convey, assign, or transfer
139	the credit authorized by this section to another entity unless
140	all of the assets of the taxpayer are conveyed, assigned, or
141	transferred in the same transaction.
142	(b) An application for a tax credit pursuant to this
143	section shall be submitted to the department on forms
144	established by rule of the department.
145	(c) The department and the Department of Education shall
146	develop a cooperative agreement to assist in the administration
147	of this section.
148	(d) The department shall adopt rules necessary to
149	administer this section, including rules establishing
150	application forms and procedures and governing the allocation of
151	tax credits and carryforward credits under this section on a
152	first-come, first-served basis.
153	(e) The State Board of Education shall adopt rules
154	pursuant to ss. 120.536(1) and 120.54 to administer this section
155	as it relates to the roles of the Department of Education and
156	the Commissioner of Education.
157	(6) DEPOSITS OF ELIGIBLE CONTRIBUTIONS.-All eligible
158	contributions received by a public school shall be deposited in
159	a manner consistent with s. 17.57(2).
160	(7) PRESERVATION OF CREDIT.-If any provision or portion of
161	subsection (4) or the application thereof to any person or
162	circumstance is held unconstitutional by any court or is
163	otherwise declared invalid, the unconstitutionality or
164	invalidity shall not affect any credit earned under subsection
165	(4) by any taxpayer with respect to any contribution paid to a
166	public school before the date of a determination of
167	unconstitutionality or invalidity. Such credit shall be allowed
168	at such time and in such a manner as if a determination of
169	unconstitutionality or invalidity had not been made, provided
170	that nothing in this subsection by itself or in combination with
171	any other provision of law shall result in the allowance of any
172	credit to any taxpayer in excess of one dollar of credit for
173	each dollar paid to a public school.
174	Section 2. This act shall take effect July 1, 2010.

CODING: Words stricken are deletions; words underlined are additions.