Bill Text: FL S0110 | 2014 | Regular Session | Comm Sub

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Bill Title: Taxes on Businesses

Spectrum: Bipartisan Bill

Status: (Failed) 2014-05-02 - Died in Appropriations Subcommittee on Finance and Tax [S0110 Detail]

Download: Florida-2014-S0110-Comm_Sub.html

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       Florida Senate - 2014                       CS for CS for SB 110
       
       
        
       By the Committees on Commerce and Tourism; and Military and
       Veterans Affairs, Space, and Domestic Security; and Senators
       Soto, Sachs, and Abruzzo
       
       
       
       577-01604-14                                           2014110c2
    1                        A bill to be entitled                      
    2         An act relating to taxes on businesses; creating s.
    3         220.197, F.S.; providing a short title; establishing a
    4         tax credit for the hiring of veterans; providing
    5         eligibility requirements; establishing an additional
    6         credit for the hiring of disabled veterans; providing
    7         an application process; providing a cap on the total
    8         amount of tax credits allowed per year; authorizing
    9         the Department of Revenue to adopt rules; authorizing
   10         the department to establish guidelines for qualifying
   11         credits; providing for expiration of the tax credits;
   12         providing applicability; amending s. 220.02, F.S.;
   13         revising the order in which credits against the
   14         corporate income tax or franchise tax may be taken to
   15         include the hiring of veterans; amending s. 220.13,
   16         F.S.; revising the term “adjusted federal income” to
   17         include certain tax credits taken relating to the
   18         hiring of veterans; authorizing the executive director
   19         of the department to adopt emergency rules; providing
   20         for time of effect of emergency rules and for the
   21         expiration of such rule authority; providing an
   22         effective date.
   23          
   24  Be It Enacted by the Legislature of the State of Florida:
   25  
   26         Section 1. Section 220.197, Florida Statutes, is created to
   27  read:
   28         220.197 Tax credit for employment of veterans.—
   29         (1) This section may be cited as the “Florida Veterans
   30  Employment Act.”
   31         (2) A business qualifies for a one-time credit against the
   32  tax imposed by this chapter in the amount of $5,000 per
   33  individual for hiring a veteran, as defined in s. 1.01, after
   34  the business has paid $5,000 in gross salary to the veteran.
   35  Veterans for whom the credit is claimed must first begin
   36  employment in this state in the operations of the qualifying
   37  business on or after January 1, 2015, and perform duties in
   38  connection with the operations of the business for an average of
   39  at least 36 hours per week. Veterans who have been previously
   40  employed by the qualifying business or any other member of the
   41  same controlled group of corporations of which the qualifying
   42  business is a member may not be claimed for the tax credit. As
   43  used in this section, the term “controlled group of
   44  corporations” has the same meaning as provided in 26 U.S.C. s.
   45  1563(a).
   46         (3) A qualifying business is eligible for an additional
   47  one-time credit against the tax imposed by this chapter in the
   48  amount of $5,000 per individual for hiring a veteran, as defined
   49  in s. 1.01, after the business has paid an additional $5,000 in
   50  gross salary to the veteran if such veteran has an official
   51  letter from the United States Department of Veterans Affairs
   52  stating that he or she has a service-connected disability.
   53         (4) In order to claim a tax credit under this section, a
   54  qualifying business must submit an application and receive
   55  approval from the department to claim the credit. Applications
   56  for credit under subsection (3) must include a copy of the
   57  veteran’s official letter from the United States Department of
   58  Veterans Affairs stating that the veteran has a service
   59  connected disability. Qualified applicants shall be approved on
   60  a first-come, first-served basis, based on the date the
   61  completed application is received by the department. The
   62  department may not accept an incomplete application as a
   63  placeholder for the completed application, and the submission of
   64  such incomplete application does not secure a place in the
   65  first-come, first-served approval process.
   66         (5) The department may not approve more than $10 million in
   67  tax credits per calendar year pursuant to this section.
   68         (6) The department may adopt rules governing the manner and
   69  form of application for the tax credits. The department may
   70  establish guidelines for making an affirmative showing of
   71  qualification for the tax credits under this section.
   72         (7) This section expires December 31, 2019. However, a
   73  qualifying business may carry forward any unused credit for up
   74  to 2 taxable years after the year the credit is earned.
   75         (8) This section applies to taxable years beginning on or
   76  after January 1, 2015.
   77         Section 2. Subsection (8) of section 220.02, Florida
   78  Statutes, is amended to read:
   79         220.02 Legislative intent.—
   80         (8) It is the intent of the Legislature that credits
   81  against either the corporate income tax or the franchise tax be
   82  applied in the following order: those enumerated in s. 631.828,
   83  those enumerated in s. 220.191, those enumerated in s. 220.181,
   84  those enumerated in s. 220.183, those enumerated in s. 220.182,
   85  those enumerated in s. 220.1895, those enumerated in s. 220.195,
   86  those enumerated in s. 220.184, those enumerated in s. 220.186,
   87  those enumerated in s. 220.1845, those enumerated in s. 220.19,
   88  those enumerated in s. 220.185, those enumerated in s. 220.1875,
   89  those enumerated in s. 220.192, those enumerated in s. 220.193,
   90  those enumerated in s. 288.9916, those enumerated in s.
   91  220.1899, those enumerated in s. 220.194, and those enumerated
   92  in s. 220.196, and those enumerated in s. 220.197.
   93         Section 3. Paragraph (a) of subsection (1) of section
   94  220.13, Florida Statutes, is amended to read:
   95         220.13 “Adjusted federal income” defined.—
   96         (1) The term “adjusted federal income” means an amount
   97  equal to the taxpayer’s taxable income as defined in subsection
   98  (2), or such taxable income of more than one taxpayer as
   99  provided in s. 220.131, for the taxable year, adjusted as
  100  follows:
  101         (a) Additions.—There shall be added to such taxable income:
  102         1. The amount of any tax upon or measured by income,
  103  excluding taxes based on gross receipts or revenues, paid or
  104  accrued as a liability to the District of Columbia or any state
  105  of the United States which is deductible from gross income in
  106  the computation of taxable income for the taxable year.
  107         2. The amount of interest which is excluded from taxable
  108  income under s. 103(a) of the Internal Revenue Code or any other
  109  federal law, less the associated expenses disallowed in the
  110  computation of taxable income under s. 265 of the Internal
  111  Revenue Code or any other law, excluding 60 percent of any
  112  amounts included in alternative minimum taxable income, as
  113  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  114  taxpayer pays tax under s. 220.11(3).
  115         3. In the case of a regulated investment company or real
  116  estate investment trust, an amount equal to the excess of the
  117  net long-term capital gain for the taxable year over the amount
  118  of the capital gain dividends attributable to the taxable year.
  119         4. That portion of the wages or salaries paid or incurred
  120  for the taxable year which is equal to the amount of the credit
  121  allowable for the taxable year under s. 220.181. This
  122  subparagraph expires shall expire on the date specified in s.
  123  290.016 for the expiration of the Florida Enterprise Zone Act.
  124         5. That portion of the ad valorem school taxes paid or
  125  incurred for the taxable year which is equal to the amount of
  126  the credit allowable for the taxable year under s. 220.182. This
  127  subparagraph expires shall expire on the date specified in s.
  128  290.016 for the expiration of the Florida Enterprise Zone Act.
  129         6. The amount taken as a credit under s. 220.195 which is
  130  deductible from gross income in the computation of taxable
  131  income for the taxable year.
  132         7. That portion of assessments to fund a guaranty
  133  association incurred for the taxable year which is equal to the
  134  amount of the credit allowable for the taxable year.
  135         8. In the case of a nonprofit corporation that which holds
  136  a pari-mutuel permit and which is exempt from federal income tax
  137  as a farmers’ cooperative, an amount equal to the excess of the
  138  gross income attributable to the pari-mutuel operations over the
  139  attributable expenses for the taxable year.
  140         9. The amount taken as a credit for the taxable year under
  141  s. 220.1895.
  142         10. Up to nine percent of the eligible basis of any
  143  designated project which is equal to the credit allowable for
  144  the taxable year under s. 220.185.
  145         11. The amount taken as a credit for the taxable year under
  146  s. 220.1875. The addition in this subparagraph is intended to
  147  ensure that the same amount is not allowed for the tax purposes
  148  of this state as both a deduction from income and a credit
  149  against the tax. This addition is not intended to result in
  150  adding the same expense back to income more than once.
  151         12. The amount taken as a credit for the taxable year under
  152  s. 220.192.
  153         13. The amount taken as a credit for the taxable year under
  154  s. 220.193.
  155         14. Any portion of a qualified investment, as defined in s.
  156  288.9913, which is claimed as a deduction by the taxpayer and
  157  taken as a credit against income tax pursuant to s. 288.9916.
  158         15. The costs to acquire a tax credit pursuant to s.
  159  288.1254(5) which that are deducted from or otherwise reduce
  160  federal taxable income for the taxable year.
  161         16. The amount taken as a credit for the taxable year under
  162  pursuant to s. 220.194.
  163         17. The amount taken as a credit for the taxable year under
  164  s. 220.196. The addition in this subparagraph is intended to
  165  ensure that the same amount is not allowed for the tax purposes
  166  of this state as both a deduction from income and a credit
  167  against the tax. The addition is not intended to result in
  168  adding the same expense back to income more than once.
  169         18. The amount taken as a credit for the taxable year under
  170  s. 220.197.
  171         Section 4. Emergency rules.—
  172         (1) The executive director of the Department of Revenue is
  173  authorized, and all conditions are deemed to be met, to adopt
  174  emergency rules pursuant to ss. 120.536(1) and 120.54(4),
  175  Florida Statutes, for the purpose of implementing this act.
  176         (2) Notwithstanding any other provision of law, the
  177  emergency rules adopted pursuant to subsection (1) remain in
  178  effect for 6 months after adoption and may be renewed during the
  179  pendency of procedures to adopt permanent rules addressing the
  180  subject of the emergency rules.
  181         (3) This section expires July 1, 2017.
  182         Section 5. This act shall take effect July 1, 2014.