Bill Text: FL S1406 | 2010 | Regular Session | Introduced
Bill Title: Taxation [WPSC]
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2010-04-30 - Died in Committee on Banking and Insurance, companion bill(s) passed, see CS/SB 2126 (Ch. 2010-24) [S1406 Detail]
Download: Florida-2010-S1406-Introduced.html
Florida Senate - 2010 SB 1406 By Senator Lawson 6-01386-10 20101406__ 1 A bill to be entitled 2 An act relating to taxation; creating ss. 199.0125, 3 199.0235, 199.0325, 199.0335, 199.0425, 199.0525, 4 199.0575, 199.0625, 199.1035, 199.10555, 199.1065, 5 199.1755, and 199.1855, F.S.; recreating the annual 6 intangible personal property tax; providing a short 7 title; providing definitions; providing for imposition 8 of the annual tax; specifying a separate tax rate for 9 securities in a Florida’s Future Investment Fund; 10 specifying nonapplication; specifying due date of 11 annual tax; providing for a discount for early 12 payments; providing requirements and procedures for 13 annual tax returns and payment of the annual tax; 14 providing for corporate election to pay stockholders’ 15 annual tax; providing requirements for annual tax 16 information reports; providing requirements for the 17 basis of assessments and valuation of intangible 18 personal property; providing for a contaminated site 19 rehabilitation tax credit; providing requirements, 20 procedures, and limitations; providing for a credit 21 for taxes imposed by other states; specifying 22 requirements for taxable situs of intangible personal 23 property; exempting certain property from the annual 24 and nonrecurring intangible taxes; amending ss. 28.35, 25 192.0105, 192.032, 192.042, 192.091, 193.114, 196.015, 26 196.199, 199.133, 199.183, 199.218, 199.232, 199.282, 27 199.292, 199.303, 212.02, 213.053, 213.054, 213.27, 28 650.05, and 733.702, F.S., to conform provisions to 29 the creation of the annual intangible personal 30 property tax; providing for application of certain 31 collection, administration, and enforcement provisions 32 to taxation of certain leaseholds; authorizing the 33 Department of Revenue to adopt emergency implementing 34 rules for a certain time; providing legislative 35 findings and intent; amending s. 220.03, F.S.; 36 revising a definition; defining the terms “tax haven” 37 and “water’s edge group”; amending s. 220.13, F.S.; 38 conforming a cross-reference; redefining the term 39 “adjusted federal income” to limit the subtraction of 40 certain deductions and certain carryovers; requiring 41 the subtraction of certain dividends from taxable 42 income; creating s. 220.136, F.S.; providing rules and 43 criteria to determine if a corporation is a member of 44 a water’s edge group; creating s. 220.1363, F.S.; 45 providing a reporting method for a water’s edge group; 46 providing for the apportionment of income to the 47 state; requiring a member of a water’s edge group 48 having nexus with this state to file a single return 49 for the water’s edge group; providing for the 50 determination of income for a member of a water’s edge 51 group having a different tax year than the water’s 52 edge group; requiring a water’s edge group return to 53 include a computational schedule; requiring a water’s 54 edge group to file a domestic disclosure spreadsheet 55 along with its return; authorizing the Department of 56 Revenue to adopt rules; amending s. 220.14, F.S.; 57 providing for the proration of an exemption during a 58 leap year; limiting a water’s edge group to a single 59 claim of a specified exemption; amending s. 220.15, 60 F.S.; deleting provisions relating to affiliated 61 groups with respect to certain sales of a financial 62 institution; amending s. 220.183, F.S.; deleting 63 provisions relating to affiliated groups with respect 64 to community contribution tax credits; amending s. 65 220.1845, F.S.; deleting provisions relating to 66 affiliated groups with respect to the contaminated 67 site rehabilitation tax credit; amending s. 220.187, 68 F.S.; deleting provisions relating to affiliated 69 groups with respect to the tax credit for 70 contributions to nonprofit scholarship funding 71 organizations; amending s. 220.191, F.S.; deleting 72 provisions relating to affiliated groups with respect 73 to the capital investment tax credit; amending s. 74 220.192, F.S.; deleting provisions relating to 75 affiliated groups with respect to the renewable energy 76 technologies investment tax credit; amending s. 77 220.193, F.S.; deleting provisions relating to 78 affiliated groups with respect to the Florida 79 renewable energy production tax credit; amending s. 80 220.51, F.S.; deleting provisions relating to the 81 rulemaking authority of the Department of Revenue with 82 respect to consolidated reporting for affiliated 83 groups; amending ss. 220.1845, 220.64, and 376.30781, 84 F.S.; conforming cross-references and conforming 85 provisions to the creation of the annual intangible 86 personal property tax; providing transitional rules 87 for corporate income tax returns filed by water’s edge 88 groups and affiliated groups of corporations; 89 specifying the allocation of funds that are recaptured 90 under the act; repealing s. 220.131, F.S., relating to 91 adjusted federal income for affiliated groups; 92 requiring deposit of certain funds into the 93 Educational Enhancement Trust Fund; specifying certain 94 allocations of appropriations from the fund; providing 95 legislative intent relating to uses of funds; 96 providing authority for certain entities as to how 97 best to use certain funds; providing effective dates. 98 99 Be It Enacted by the Legislature of the State of Florida: 100 101 Section 1. Effective January 1, 2011, sections 199.0125, 102 199.0235, 199.0325, 199.0335, 199.0425, 199.0525, 199.0575, 103 199.0625, 199.1035, 199.10555, 199.1065, 199.1755, and 199.1855, 104 Florida Statutes, are created to read: 105 199.0125 Short title.—Sections 199.0125-199.1855 may be 106 cited as the “Millionaire’s Tax Act.” 107 199.0235 Definitions.—As used in this chapter: 108 (1) “Abroad” means in one or more foreign nations; in the 109 colonies, dependencies, possessions, or territories of a foreign 110 nation or of the United States; or in the Commonwealth of Puerto 111 Rico. 112 (2)(a) “Affiliated group” means one or more chains of 113 corporations or limited liability companies connected through 114 stock ownership or membership interest in a limited liability 115 company with a common parent corporation or limited liability 116 company, for which: 117 1. Stock or membership interest in a limited liability 118 company possessing at least 80 percent of the voting power of 119 all classes of stock or membership interest in a limited 120 liability company and at least 80 percent of each class of the 121 nonvoting stock or membership interest in a limited liability 122 company of each corporation or limited liability company, except 123 for the common parent corporation or limited liability company, 124 is owned directly by one or more of the other corporations or 125 limited liability companies. 126 2. The common parent corporation or limited liability 127 company directly owns stock or membership interest in a limited 128 liability company possessing at least 80 percent of the voting 129 power of all classes of stock or membership interest in a 130 limited liability company and at least 80 percent of each class 131 of the nonvoting stock or membership interest in a limited 132 liability company of at least one of the other corporations or 133 limited liability companies. 134 (b) As used in this subsection, the terms “nonvoting stock” 135 and “membership interest in a limited liability company” do not 136 include nonvoting stock or membership interest in a limited 137 liability company which is limited and preferred as to 138 dividends. For purposes of this chapter, a common parent may be 139 a corporation or a limited liability company. 140 (3) “Banking organization” means: 141 (a) A bank organized and existing under the laws of this 142 state; 143 (b) A national bank organized and existing pursuant to the 144 provisions of the National Bank Act, 12 U.S.C. ss. 21 et seq., 145 and maintaining its principal office in this state; 146 (c) An Edge Act corporation organized pursuant to the 147 provisions of s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss. 148 611 et seq., and maintaining an office in this state; 149 (d) An international bank agency licensed pursuant to the 150 laws of this state; 151 (e) A federal agency licensed pursuant to ss. 4 and 5 of 152 the International Banking Act of 1978 to maintain an office in 153 this state; 154 (f) A savings association organized and existing under the 155 laws of this state; 156 (g) A federal association organized and existing pursuant 157 to the provisions of the Home Owners’ Loan Act of 1933, 12 158 U.S.C. ss. 1461 et seq., and maintaining its principal office in 159 this state; or 160 (h) An export finance corporation organized in this state 161 and existing pursuant to the provisions of part V of chapter 162 288. 163 (4) A resident has a “beneficial interest” in a trust if 164 the resident has a vested interest, even if subject to 165 divestment, which includes at least a current right to income 166 and either a power to revoke the trust or a general power of 167 appointment, as defined in 26 U.S.C. s. 2041(b)(1). 168 (5) “Department” means the Department of Revenue. 169 (6) “Intangible personal property” means all personal 170 property that is not in itself intrinsically valuable, but that 171 derives its chief value from that which it represents, 172 including, but not limited to: 173 (a) All stocks or shares of incorporated or unincorporated 174 companies, business trusts, and mutual funds. 175 (b) All notes, bonds, and other obligations for the payment 176 of money. 177 (c) All condominium and cooperative apartment leases of 178 recreation facilities, land leases, and leases of other commonly 179 used facilities. 180 (d) Except for any leasehold or other possessory interest 181 described in s. 4(a), Art. VII of the State Constitution or s. 182 196.199(7), all leasehold or other possessory interests in real 183 property owned by the United States, the state, any political 184 subdivision of the state, any municipality of the state, or any 185 agency, authority, or other public body corporate of the state, 186 which are undeveloped or predominantly used for residential or 187 commercial purposes and upon which rental payments are due. 188 (7) “International banking facility” means a set of asset 189 and liability accounts segregated on the books and records of a 190 banking organization that includes only international banking 191 facility deposits, borrowings, and extensions of credit as those 192 terms are defined pursuant to s. 655.071(2). 193 (8) “International banking transaction” means: 194 (a) The financing of the exportation from, or the 195 importation into, the United States or between jurisdictions 196 abroad of tangible personal property or services; 197 (b) The financing of the production, preparation, storage, 198 or transportation of tangible personal property or services 199 which are identifiable as being directly and solely for export 200 from, or import into, the United States or between jurisdictions 201 abroad; 202 (c) The financing of contracts, projects, or activities to 203 be performed substantially abroad, except those transactions 204 secured by a mortgage, deed of trust, or other lien upon real 205 property located in this state; 206 (d) The receipt of deposits or borrowings or the extensions 207 of credit by an international banking facility, except the loan 208 or deposit of funds secured by mortgage, deed of trust, or other 209 lien upon real property located in this state; or 210 (e) Entering into foreign exchange trading or hedging 211 transactions in connection with the activities described in 212 paragraph (d). 213 (9) “Ministerial function” means an act the performance of 214 which does not involve the use of discretion or judgment. 215 (10) “Money” includes, without limitation, United States 216 legal tender, certificates of deposit, cashier’s and certified 217 checks, bills of exchange, drafts, the cash equivalent of 218 annuities and life insurance policies, and similar instruments, 219 which are held by a taxpayer, or deposited with or held by a 220 banking organization or any other person. 221 (11) “Person” means any individual, firm, partnership, 222 joint adventure, syndicate, or other group or combination acting 223 as a unit, association, corporation, estate, trust, business 224 trust, trustee, personal representative, receiver, or other 225 fiduciary and includes the plural as well as the singular. 226 (12) “Processing activity” means an activity undertaken to 227 administer or service intangible personal property in accordance 228 with such terms, guidelines, criteria, or directions as are 229 provided solely by the owner of the property. Methods, systems, 230 or techniques chosen by the processor to implement such terms, 231 guidelines, criteria, or directions are not considered the 232 exercise of management or control. 233 (13) “Taxpayer” means any person liable for taxes imposed 234 under this chapter and any heir, successor, assignee, and 235 transferee of any such person. 236 199.0325 Levy of annual tax.—An annual tax of 2 mills is 237 imposed on each dollar of the just valuation of all intangible 238 personal property that has a taxable situs in this state, except 239 for notes and other obligations for the payment of money, other 240 than bonds, that are secured by a mortgage, deed of trust, or 241 other lien upon real property situated in this state. This tax 242 shall be assessed and collected as provided in this chapter. 243 199.0335 Securities in a Florida’s Future Investment Fund; 244 tax rate.— 245 (1) Notwithstanding the provisions of this chapter, the tax 246 imposed under s. 199.0325 on securities in a Florida’s Future 247 Investment Fund applies at a rate of 0.85 mill when the average 248 daily balance in such funds exceeds $2 billion and at a rate of 249 0.70 mill when the average daily balance in such funds exceeds 250 $5 billion. 251 (2) This section shall not apply in any year in which the 252 revenues of the foundation in the previous calendar year are 253 less than the tax savings allowed by this section. The term “tax 254 savings” means the difference between the tax that would be 255 imposed pursuant to s. 199.0325 and the tax rate specified in 256 subsection (1). 257 199.0425 Due date of annual tax.— 258 (1) The annual tax on intangible personal property shall be 259 due and payable on June 30 of each year. Payment of the tax 260 shall be made to the department upon filing of the return 261 required by s. 199.0525. A return mailed to the department shall 262 be considered timely filed if the return bears a postmark no 263 later than the due date. 264 (2) A discount for early payment of the annual tax shall be 265 allowed as follows: for payment on or before the last day of 266 February, 4 percent; for payment on or before March 31, 3 267 percent; for payment on or before April 30, 2 percent; and for 268 payment after April 30 but on or before May 31, 1 percent. 269 199.0525 Annual tax returns; payment of annual tax.— 270 (1) An annual intangible tax return must be filed with the 271 department by each corporation authorized to do business in this 272 state or doing business in this state and by each person, 273 regardless of domicile, who on January 1 owns, controls, or 274 manages intangible personal property which has a taxable situs 275 in this state. For purposes of this chapter, the terms “control” 276 or “manage” do not include any ministerial function or any 277 processing activity. The return shall be due on June 30 of each 278 year. It shall list separately the character, description, and 279 just valuation of all such property. 280 (2) A person, corporation, agent, or fiduciary is not 281 required to pay the annual tax in any year when the aggregate 282 annual tax upon the intangible personal property, after 283 exemptions but before application of any discount for early 284 filing, would be less than $60. In such case, an annual return 285 is not required. Agents and fiduciaries shall report for each 286 person for whom they hold intangible personal property if the 287 aggregate annual tax on such person is $60 or more. 288 (3) A corporation having no intangible tax liability, and 289 required to file an annual report pursuant to s. 607.1622, is 290 not required to file the annual intangible tax return required 291 by this section. 292 (4) A husband and wife may file a joint return with regard 293 to all intangible personal property held jointly or individually 294 by them. They shall then be jointly liable for the payment of 295 the annual tax. 296 (5) A trustee of a trust is not responsible for filing 297 returns for the trust’s intangible personal property and is not 298 required to pay any annual tax on such property, although the 299 department may require the trustee to file an informational 300 return. 301 (6) Each resident of this state with a beneficial interest 302 as defined in s. 199.0235(4) in a trust is responsible for 303 filing an annual return for the resident’s equitable share of 304 the trust’s intangible personal property and paying the annual 305 tax on such property. The trustee of a trust may file an annual 306 return and pay the tax on the equitable shares of all residents 307 of this state having beneficial interests, in which case the 308 residents need not file an annual return for such property or 309 pay such tax. 310 (7) The personal representative or curator of an estate in 311 this state is primarily responsible for filing an annual return 312 for the estate’s intangible personal property and paying the 313 annual tax on it. The heirs or devisees, however, may 314 individually file an annual return for their equitable shares of 315 the estate’s intangible personal property and pay the tax on 316 such shares, in which case the personal representative or 317 curator need not file an annual return on such property or pay 318 such tax, although the department may require the personal 319 representative or curator to file an informational return. 320 (8) The guardian of the property of an incompetent resident 321 of this state shall file an annual return for the incompetent’s 322 intangible personal property and pay the annual tax on such 323 property. The custodian of a minor resident of this state under 324 a gifts-to-minors or similar act shall file an annual return for 325 the minor’s intangible personal property which is subject to the 326 custodianship and pay the annual tax on such property. 327 (9) If an agent other than a trustee has control or 328 management of intangible personal property, the principal is 329 primarily responsible for filing an annual return for such 330 property and paying the annual tax on such property, but the 331 agent shall file an annual return for property on behalf of the 332 principal and pay the annual tax on such property if the 333 principal fails to do so. The department may in any case require 334 the agent to file an informational return. 335 (10) An affiliated group may elect to file a consolidated 336 return for any year. The election shall be made by timely filing 337 a consolidated return. Once made, an election may not be revoked 338 and is binding for the tax year. The mere filing of a 339 consolidated return does not in itself provide a business situs 340 in this state for intangible personal property held by a 341 corporation. The fact that members of an affiliated group own 342 stock in corporations or membership interest in limited 343 liability companies that do not qualify under the stock 344 ownership or membership interest in a limited liability company 345 requirements as members of an affiliated group shall not 346 preclude the filing of a consolidated return on behalf of the 347 qualified members. If a consolidated return is filed, 348 intercompany accounts, including the capital stock or membership 349 interest in a limited liability company of an includable 350 corporation or limited liability company, other than the parent, 351 owned by another includable corporation or limited liability 352 company, are not subject to the annual tax. However, capital 353 stock, or membership interest in a limited liability company, 354 and other intercompany accounts of a nonqualified member of the 355 affiliated group are subject to the annual tax. Each 356 consolidated return must be accompanied by documentation 357 identifying all intercompany accounts and containing such other 358 information as the department may require. Failure to timely 359 file a consolidated return shall not prejudice the taxpayer’s 360 right to file a consolidated return, provided the failure to 361 file a consolidated return is limited to 1 year and the 362 taxpayer’s intent to file a consolidated return is evidenced by 363 the taxpayer having filed a consolidated return for the 3 years 364 prior to the year the return was not timely filed. 365 (11) An annual return for securities held in margin 366 accounts by a security broker not acting as a fiduciary shall be 367 filed, and the annual tax on such securities shall be paid, by 368 the customer owning them. The security broker is not required to 369 file an annual return or pay the tax on such securities. 370 (12) Except as otherwise provided in this section, the 371 owner of intangible personal property is liable for the payment 372 of annual tax on such property, and any other person required to 373 file an annual return for such property is liable for the tax if 374 the owner fails to pay the tax. 375 (13) If a bank or savings association, as defined in s. 376 220.62, acts as a fiduciary or agent of a trust other than as a 377 trustee, the bank or savings association is not responsible for 378 filing an annual return for the trust’s intangible personal 379 property and is not required to pay any annual tax on such 380 property, and the management or control of the bank or savings 381 association shall not be used as the basis for imposing any 382 annual tax on any person or any assets of the trust. If a person 383 acts as a fiduciary or agent for purposes of managing intangible 384 assets owned by another person, such intangible assets shall not 385 have a taxable situs in this state pursuant to s. 199.1755 386 solely by virtue of the management or control of such assets by 387 the person who is not the owner of the assets. 388 (14)(a) Except as provided in paragraph (b), each bank and 389 financial organization filing annual intangible tax returns for 390 its customers shall file return information for taxes due 391 January 1, 2011, and thereafter using machine-sensible media. 392 The information required by this subsection must be reported by 393 banks or financial organizations on machine-sensible media, 394 using specifications and instructions of the department. A bank 395 or financial organization that demonstrates to the satisfaction 396 of the department that a hardship exists is not required to file 397 intangible tax returns for its customers using machine-sensible 398 media. The department shall adopt rules necessary to administer 399 this paragraph. 400 (b) A taxpayer may choose to file an annual intangible 401 personal property tax return in a form initiated through an 402 electronic data interchange using an advanced encrypted 403 transmission by means of the Internet or other suitable 404 transmission. The department shall prescribe by rule the format 405 and instructions necessary for such filing to ensure a full 406 collection of taxes due. The acceptable method of transfer, the 407 method, form, and content of the electronic data interchange, 408 and the means, if any, by which the taxpayer will be provided 409 with an acknowledgment shall be prescribed by the department. 410 199.0575 Corporate election to pay stockholders’ annual 411 tax.— 412 (1) Each corporation incorporated or qualified to do 413 business in this state may elect each tax year to pay the annual 414 tax on any class of its stock, as agent for its stockholders in 415 this state holding such stock. 416 (2) To make the election, the corporation shall: 417 (a) File written notice with the department on or before 418 June 30 of the year for which the election is made. 419 (b) File an annual return with respect to such stock and 420 its own intangible personal property. 421 (c) Furnish its stockholders in this state with written 422 notice, on or before April 1 of the year for which the election 423 is made, that the election is being made, including a 424 description of the class or classes of stock which are affected. 425 A corporation making the election under this subsection shall 426 certify on its notice to the department that its stockholders 427 were timely notified of the election. 428 (3) An election is not valid unless timely notice of the 429 election is given to the department under paragraph (2)(a). Once 430 made, an election may not be amended or revoked and is binding 431 for the tax year. 432 199.0625 Annual tax information reports.— 433 (1)(a) On or before June 30 of each year, each security 434 dealer and investment adviser registered under the laws of this 435 state shall file with the department a position statement as of 436 December 31 of the preceding year for each customer whose 437 mailing address is in this state or a statement that the 438 security dealer or investment adviser does not hold securities 439 on account for any customer whose mailing address is in this 440 state. The position statement shall include the customer’s name, 441 address, social security number, or federal identification 442 number; the number of units, value, and description, including 443 the Committee on Uniform Security Identification Procedures 444 (CUSIP) number, if any, of all securities held by the dealer or 445 adviser for the customer; and such other information as the 446 department may reasonably require. The dealer or adviser shall 447 report the information required by this paragraph on magnetic 448 media, using specifications and instructions of the department, 449 unless the dealer or adviser demonstrates that an undue hardship 450 exists. 451 (b)1. The department may require security dealers and 452 investment advisers registered in this state to transmit once 453 every 2 years a copy of the department’s intangible tax brochure 454 to each customer of the dealer or advisor whose mailing address 455 is in this state. 456 2. The department may require property appraisers to send, 457 at such times and in such manner as the department and the 458 property appraisers jointly determine, a copy of the 459 department’s intangible tax brochure to each owner of property 460 in this state. 461 (2) Each fiduciary shall serve the department with a copy 462 of each inventory required to be prepared or filed in the 463 circuit court under general law or rules adopted by the Supreme 464 Court relating to decedent’s estates, trusts, or guardianships. 465 Any such inventory required to be filed in the circuit court may 466 not be approved by the court until such copy as required by this 467 subsection has been filed with the department. When an inventory 468 is not required to be filed in the circuit court, the personal 469 representative of a decedent’s estate shall serve the department 470 with a copy of one inventory as provided in s. 733.604, and each 471 other fiduciary shall file a return relating to such information 472 as shall be prescribed by rule of the department. 473 199.1035 Basis of assessment; valuation.—All intangible 474 personal property shall be subject to the annual tax at its just 475 valuation as of January 1 of each year. Such property shall be 476 valued in the following manner: 477 (1) Shares of stock of corporations, or any interest of a 478 limited partner in any limited partnership, regularly listed on 479 any public stock exchange or regularly traded over-the-counter 480 shall be valued at their closing prices on the last business day 481 of the previous calendar year. 482 (2) Shares or units of companies or trusts registered under 483 the Investment Company Act of 1940, as amended, including mutual 484 funds, money market funds, and unit investment trusts where such 485 shares or units are not exempt under s. 199.1855, shall be 486 valued at the net asset value of such shares or units on the 487 last business day of the previous calendar year. 488 (3) Bonds regularly listed on any public stock exchange or 489 regularly traded over-the-counter shall be valued at their 490 closing bid prices on the last business day of the previous 491 calendar year. 492 (4) Shares of stocks, bonds, or similar instruments of 493 corporations not listed on any public stock exchange or not 494 regularly traded over-the-counter shall be valued as of January 495 1 of each year on the basis of those factors customarily 496 considered in determining fair market value. 497 (5) Accounts receivable shall be valued at their face value 498 as of January 1 of each year, less a reasonable allowance for 499 uncollectible accounts. 500 (6) All notes and other obligations shall have a value 501 equal to their unpaid balance as of January 1 of each year, 502 unless the taxpayer can establish a lesser value upon proof 503 satisfactory to the department. 504 (7) All other forms of intangible personal property shall 505 be valued on the basis of factors customarily considered in 506 determining fair market value. 507 (8) Stocks or shares of a savings association or middle 508 tier stock holding company, held by a parent mutual holding 509 company, the depositors of which are members of the mutual 510 holding company, which converted from a mutual savings 511 association to a mutual holding company pursuant to 12 U.S.C. s. 512 1467a.(o), shall be valued as of January 1 each year on the same 513 basis as ownership in the mutual savings association was valued 514 for intangible tax purposes prior to the conversion. Stocks or 515 shares of such a converted association which are held by 516 individuals or entities other than the parent mutual holding 517 company shall be valued pursuant to subsection (1) or subsection 518 (4). 519 199.10555 Contaminated site rehabilitation tax credit.— 520 (1) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.— 521 (a) A credit equal to 35 percent of the costs of voluntary 522 cleanup activity that is integral to site rehabilitation at the 523 following sites is available against any tax due for a taxable 524 year under s. 199.0325, less any credit allowed by former s. 525 220.68 for that year: 526 1. A drycleaning-solvent-contaminated site eligible for 527 state-funded site rehabilitation under s. 376.3078; 528 2. A drycleaning-solvent-contaminated site at which 529 voluntary cleanup is undertaken by the real property owner 530 pursuant to s. 376.3078, if the real property owner is not also, 531 and has never been, the owner or operator of the drycleaning 532 facility where the contamination exists; or 533 3. A brownfield site in a designated brownfield area under 534 s. 376.80. 535 (b) A tax credit applicant, or multiple tax credit 536 applicants working jointly to clean up a single site, may not be 537 granted more than $250,000 per year in tax credits for each site 538 voluntarily rehabilitated. Multiple tax credit applicants shall 539 be granted tax credits in the same proportion as their 540 contribution to payment of cleanup costs. Subject to the same 541 conditions and limitations as provided in this section, a 542 municipality, county, or other tax credit applicant which 543 voluntarily rehabilitates a site may receive not more than 544 $250,000 per year in tax credits which it can subsequently 545 transfer subject to the provisions in paragraph (g). 546 (c) If the credit granted under this section is not fully 547 used in any one year because of insufficient tax liability on 548 the part of the tax credit applicant, the unused amount may be 549 carried forward for a period not to exceed 5 years. Five years 550 after the date a credit is granted under this section, such 551 credit expires and may not be used. However, if during the 5 552 year period the credit is transferred, in whole or in part, 553 pursuant to paragraph (g), each transferee has 5 years after the 554 date of transfer to use the transferred credit. 555 (d) A taxpayer that receives a credit under s. 220.1845 is 556 ineligible to receive credit under this section in a given tax 557 year. 558 (e) A tax credit applicant that receives state-funded site 559 rehabilitation pursuant to s. 376.3078 for rehabilitation of a 560 drycleaning-solvent-contaminated site is ineligible to receive 561 credit under this section for costs incurred by the tax credit 562 applicant in conjunction with the rehabilitation of that site 563 during the same time period that state-administered site 564 rehabilitation was underway. 565 (f) The total amount of the tax credits which may be 566 granted under this section and s. 220.1845 is $2 million 567 annually. 568 (g)1. Tax credits that may be available under this section 569 to an entity eligible under s. 376.30781 may be transferred 570 after a merger or acquisition to the surviving or acquiring 571 entity and used in the same manner with the same limitations. 572 2. The entity, or its surviving or acquiring entity as 573 described in subparagraph 1., may transfer any unused credit in 574 whole or in units of no less than 25 percent of the remaining 575 credit. The entity acquiring such credit may use it in the same 576 manner and with the same limitation as described in this 577 section. Such transferred credits may not be transferred again, 578 although such credits may succeed to a surviving or acquiring 579 entity subject to the same conditions and limitations as 580 described in this section. 581 3. If the credit provided for under this section is reduced 582 as a result of a determination by the Department of 583 Environmental Protection or an examination or audit by the 584 Department of Revenue, such tax deficiency shall be recovered 585 from the first entity, or the surviving or acquiring entity, to 586 have claimed such credit up to the amount of credit taken. Any 587 subsequent deficiencies shall be assessed against any entity 588 acquiring and claiming such credit or, in the case of multiple 589 succeeding entities, in the order of credit succession. 590 (h) In order to encourage completion of site rehabilitation 591 at contaminated sites being voluntarily cleaned up and eligible 592 for a tax credit under this section, the tax credit applicant 593 may claim an additional 10 percent of the total cleanup costs, 594 not to exceed $50,000, in the final year of cleanup as evidenced 595 by the Department of Environmental Protection issuing a “No 596 Further Action” order for that site. 597 (2) FILING REQUIREMENTS.—Any taxpayer that wishes to obtain 598 credit under this section must submit with the taxpayer’s return 599 a tax credit certificate approving partial tax credits issued by 600 the Department of Environmental Protection under s. 376.30781. 601 (3) ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT 602 FORFEITURE.— 603 (a) The Department of Revenue may adopt rules to prescribe 604 any necessary forms required to claim a tax credit under this 605 section and to provide the administrative guidelines and 606 procedures required to administer this section. 607 (b) In addition to its existing audit and investigation 608 authority relating to chapters 199 and 220, the Department of 609 Revenue may perform any additional financial and technical 610 audits and investigations, including examining the accounts, 611 books, or records of the tax credit applicant, which are 612 necessary to verify the site rehabilitation costs included in a 613 tax credit return and to ensure compliance with this section. 614 The Department of Environmental Protection shall provide 615 technical assistance, when requested by the Department of 616 Revenue, on any technical audits performed under this section. 617 (c) It is grounds for forfeiture of previously claimed and 618 received tax credits if the Department of Revenue determines, as 619 a result of either an audit or information received from the 620 Department of Environmental Protection, that a taxpayer received 621 tax credits under this section to which the taxpayer was not 622 entitled. In the case of fraud, the taxpayer shall be prohibited 623 from claiming any future tax credits under this section or s. 624 220.1845. 625 1. The taxpayer is responsible for returning forfeited tax 626 credits to the Department of Revenue, and such funds shall be 627 paid into the General Revenue Fund of the state. 628 2. The taxpayer shall file with the Department of Revenue 629 an amended tax return or such other report as the Department of 630 Revenue prescribes by rule and shall pay any required tax within 631 60 days after the taxpayer receives notification from the 632 Department of Environmental Protection pursuant to s. 376.30781 633 that previously approved tax credits have been revoked or 634 modified, if uncontested, or within 60 days after a final order 635 is issued following proceedings involving a contested revocation 636 or modification order. 637 3. A notice of deficiency may be issued by the Department 638 of Revenue at any time within 5 years after the date the 639 taxpayer receives notification from the Department of 640 Environmental Protection pursuant to s. 376.30781 that 641 previously approved tax credits have been revoked or modified. 642 If a taxpayer fails to notify the Department of Revenue of any 643 change in its tax credit claimed, a notice of deficiency may be 644 issued at any time. In either case, the amount of any proposed 645 assessment set forth in such notice of deficiency shall be 646 limited to the amount of any deficiency resulting under this 647 section from the recomputation of the taxpayer’s tax for the 648 taxable year. 649 4. Any taxpayer that fails to report and timely pay any tax 650 due as a result of the forfeiture of its tax credit is in 651 violation of this section and is subject to applicable penalty 652 and interest. 653 199.1065 Credit for taxes imposed by other states.— 654 (1) For intangible personal property that has been deemed 655 to have a taxable situs in this state solely pursuant to s. 656 199.1755(2) or any similar predecessor statute, a credit against 657 the tax imposed by s. 199.0325 is allowed to a taxpayer in an 658 amount equal to a like tax lawfully imposed and paid by that 659 taxpayer on the same property in another state, territory of the 660 United States, or the District of Columbia. For purposes of this 661 subsection, the term “like tax” means an ad valorem tax on 662 intangible personal property that is also subject to tax under 663 s. 199.0325. The credit may not exceed the tax imposed on the 664 property under s. 199.0325. Proof of entitlement to such a 665 credit must be made pursuant to rules and forms adopted by the 666 department. 667 (2) For intangible personal property that has a taxable 668 situs in this state under s. 199.1755(1) or any similar 669 predecessor statute, a credit against the tax imposed by s. 670 199.0325 is allowed to a taxpayer in an amount equal to a like 671 tax lawfully imposed and paid by that taxpayer on the same 672 property in another state, territory of the United States, or 673 the District of Columbia when the other taxing authority is also 674 claiming situs under provisions similar or identical to those in 675 s. 199.1755(1) or any similar predecessor statute. For purposes 676 of this subsection, the term “like tax” means an ad valorem tax 677 on intangible personal property which is also subject to tax 678 under s. 199.0325. The credit may not exceed the tax imposed on 679 the property under s. 199.0325. Proof of entitlement to such a 680 credit must be made pursuant to rules and forms adopted by the 681 department. 682 (3) The credits provided by this section apply 683 retroactively. However, notwithstanding the retroactivity of 684 these credit provisions, this section does not reopen a closed 685 period of nonclaim under s. 215.26 or any other statute or 686 extend the period of nonclaim under s. 215.26 or any other 687 statute. 688 199.1755 Taxable situs.—For purposes of the annual tax 689 imposed under this chapter: 690 (1) Intangible personal property has a taxable situs in 691 this state when it is owned, managed, or controlled by any 692 person domiciled in this state on January 1 of the tax year. 693 Such intangibles shall be subject to annual taxation under this 694 chapter, unless the person who owns, manages, or controls them 695 is specifically exempt or unless the property is specifically 696 exempt. This provision applies regardless of where the evidence 697 of the intangible property is kept; where the intangible is 698 created, approved, or paid; or where business may be conducted 699 from which the intangible arises. The fact that a corporation in 700 this state owns the stock of an out-of-state corporation and 701 manages and controls such corporation from a location in this 702 state shall not operate to give a taxable situs in this state to 703 the intangibles owned by the out-of-state corporation, which 704 intangibles arise out of business transacted outside this state. 705 (a) For the purposes of this chapter, the term “any person 706 domiciled in this state” means: 707 1. Any natural person who is a legal resident of this 708 state; 709 2. Any business, business trust as described in chapter 710 609, company, corporation, partnership, or other artificial 711 entity organized or created under the law of this state, except 712 a trust; or 713 3. Any person, including a business trust, that has 714 established a commercial domicile in this state. 715 (b) A business or other artificial entity acquires its 716 commercial domicile in this state when it maintains its chief or 717 principal office in this state where executive or management 718 functions are performed or where the course of business 719 operations is determined. 720 (c) Notwithstanding the provisions of this subsection, 721 intangibles that are credit card receivables or charge card 722 receivables or related lines of credit or loans that would 723 otherwise be deemed to have taxable situs in this state solely 724 because they are owned, managed, or controlled by a bank or 725 savings association as defined in s. 220.62, or an affiliate or 726 subsidiary thereof, which is domiciled in this state shall be 727 treated as having a taxable situs in this state only when the 728 debt represented by the intangible is owed by a customer who is 729 domiciled in this state. As used in this paragraph, the terms 730 “credit card receivables” and “charge card receivables” do not 731 include trade or service receivables as defined in s. 864 of the 732 Internal Revenue Code of 1986, as amended. 733 (2) Intangible personal property has a taxable situs in 734 this state when it is deemed to have a business situs in this 735 state and it is owned, managed, or controlled by a person 736 transacting business in this state, even though the owner may 737 claim a domicile elsewhere. This provision applies regardless of 738 where the evidence of the intangible is kept or where the 739 intangible is created, approved, or paid. 740 (a) Intangibles shall be deemed to have a business situs in 741 this state when the intangibles receive the benefit and 742 protection of the laws and courts of this state and are derived 743 from, arise out of, or are issued in connection with the 744 business transacted in this state with a customer in this state. 745 For purposes of this paragraph: 746 1. Business is transacted in this state when any 747 occupation, profession, or commercial activity, including 748 financing, leasing, selling, or servicing activities, is 749 regularly conducted with customers in this state from an office, 750 plant, home, or any other business location in this state. 751 2. Business is transacted in this state when any 752 occupation, profession, or commercial activity, including, but 753 not limited to, financing, leasing, selling, or servicing 754 activities, is regularly conducted with customers in this state 755 by or through agents, employees, or representatives of any kind 756 in this state, whether or not such persons are vested with 757 discretionary authority. 758 (b) Notwithstanding the provisions of this subsection: 759 1.a. Intangible personal property that is credit card or 760 charge card receivables or related lines of credit or loans 761 shall be deemed to have business situs in this state only when 762 the debt represented by such intangible property is owed by a 763 customer who is domiciled in this state. 764 b. The performance of ministerial functions relating to, or 765 the processing of, credit card or charge card receivables in 766 this state for the owner of such receivables is not sufficient 767 to support a finding that the owner is transacting business in 768 this state. 769 c. The term “credit card or charge card receivables” does 770 not include trade or service receivables as defined in s. 864 of 771 the Internal Revenue Code of 1986, as amended. 772 2. Intangible personal property owned by a real estate 773 mortgage investment conduit, a real estate investment trust, or 774 a regulated investment company, as those terms are defined in 775 the United States Internal Revenue Code of 1986, as amended, 776 shall not be deemed to have a taxable situs in this state unless 777 such entity has its legal or commercial domicile in this state. 778 3. The ownership of any interest in a participation or 779 syndication loan or pool of loans, notes, or receivables is not 780 sufficient to support a finding that the owner of such interest 781 is transacting business in this state. For purposes of this 782 subparagraph, a participation or syndication loan is a loan in 783 which more than one lender is a creditor to a common borrower, 784 and a participation or syndication interest in a pool of loans, 785 notes, or receivables is an interest acquired from the 786 originator or initial creditor with respect to the loans, notes, 787 or receivables constituting the pool. 788 (c) It is the intent of this subsection that a nonresident 789 may not transact business in this state without paying the same 790 tax which the state imposes on residents transacting the same 791 business. 792 199.1855 Property exempted from annual and nonrecurring 793 taxes.— 794 (1) The following intangible personal property is exempt 795 from the annual and nonrecurring taxes imposed by this chapter: 796 (a) Money. 797 (b) Franchises. 798 (c) Any interest as a partner in a partnership, general or 799 limited, other than any interest as a limited partner in a 800 limited partnership registered with the Securities and Exchange 801 Commission pursuant to the Securities Act of 1933, as amended. 802 (d) Notes, bonds, and other obligations issued by the State 803 of Florida or its municipalities, counties, and other taxing 804 districts, or by the United States Government and its agencies. 805 (e) Intangible personal property held in trust pursuant to 806 any stock bonus, pension, or profit-sharing plan or any 807 individual retirement account which is qualified under s. 530, 808 s. 401, s. 408, or s. 408A of the United States Internal Revenue 809 Code, 26 U.S.C. ss. 530, 401, 408, and 408A, as amended. 810 (f) Intangible personal property held under a retirement 811 plan of a Florida-based corporation exempt from federal income 812 tax under s. 501(c)(6) of the United States Internal Revenue 813 Code, 26 U.S.C., if the primary purpose of the corporation is to 814 support the promotion of professional sports and the retirement 815 plan is either a qualified plan under s. 457 of the United 816 States Internal Revenue Code or the contributions to the plan, 817 pursuant to a ruling by the United States Internal Revenue 818 Service, are not taxable to plan participants until actual 819 receipt or withdrawal by the participant. 820 (g) Notes and other obligations, except bonds, to the 821 extent that such notes and obligations are secured by mortgage, 822 deed of trust, or other lien upon real property situated outside 823 the state. 824 (h) The assets of a corporation registered under the 825 Investment Company Act of 1940, 15 U.S.C. s. 80a-1-52, as 826 amended. 827 (i) All intangible personal property issued in or arising 828 out of any international banking transaction and owned by a 829 banking organization. 830 (j) Units of a unit investment trust and shares or units 831 of, or other undivided interest in, a business trust organized 832 under an agreement, indenture, or declaration of trust and 833 registered under the Investment Company Act of 1940, as amended, 834 shall be exempt if at least 90 percent of the net asset value of 835 the portfolio of assets corresponding to such shares, units, or 836 undivided interests is invested in assets that are exempt from 837 the tax imposed by s. 199.0325. 838 (k) Interests in real estate securitizations, including, 839 but not limited to, real estate mortgage investment conduits 840 (REMIC) and financial asset securitization trusts (FASITS), 841 which are directly or indirectly secured by or payable from 842 notes and obligations that are in turn secured solely by a 843 mortgage, deed of trust, or other lien upon real property 844 situated in or outside the state, including, but not limited to, 845 mortgage pools, participations, and derivatives. 846 (l) All accounts receivable arising or acquired in the 847 ordinary course of a trade or business which are owned, 848 controlled, or managed by a taxpayer. This exemption does not 849 apply to accounts receivable that arise outside the taxpayer’s 850 ordinary course of trade or business. For the purposes of this 851 chapter, the term “accounts receivable” means a business debt 852 that is owed by another to the taxpayer or the taxpayer’s 853 assignee in the ordinary course of trade or business and is not 854 supported by negotiable instruments. Accounts receivable 855 include, but are not limited to, credit card receivables, charge 856 card receivables, credit receivables, margin receivables, 857 inventory or other floor plan financing, lease payments past 858 due, conditional sales contracts, retail installment sales 859 agreements, financing lease contracts, and a claim against a 860 debtor usually arising from sales or services rendered and which 861 is not necessarily due or past due. The examples specified in 862 this paragraph shall be deemed not to be supported by negotiable 863 instruments. The term “negotiable instrument” means a written 864 document that is legally capable of being transferred by 865 endorsement or delivery. The term “endorsement” means the act of 866 a payee or holder in writing his or her name on the back of an 867 instrument without further qualifying words other than “pay to 868 the order of” or “pay to” whereby the property is assigned and 869 transferred to another. 870 (m) Stock options granted to employees by their employer 871 pursuant to an incentive plan, if the employees cannot transfer, 872 sell, or mortgage the options. Stock purchased by an employee 873 from an employer pursuant to an incentive plan shall be treated 874 as a nontaxable stock option if part of the purchase price of 875 the stock is nonrecourse debt secured by the stock and the stock 876 cannot be sold, transferred, or assigned by the employee until 877 the nonrecourse debt is discharged. Such stock becomes taxable 878 stock when it can be sold, transferred, or assigned by the 879 employee. 880 (n)1. A leasehold estate in governmental property in which 881 the lessee is required to furnish space on the leasehold estate 882 for public use by governmental agencies at no charge to the 883 governmental agencies. 884 2. The provisions of this exemption apply retroactively. 885 However, notwithstanding the retroactivity of the exemption, it 886 does not reopen a closed period of nonclaim under s. 215.26 or 887 any other law or extend the period of nonclaim under s. 215.26 888 or any other statute. 889 (2)(a) Each natural person is entitled each year to an 890 exemption of the first $1 million of the value of property 891 otherwise subject to the annual tax. A husband and wife filing 892 jointly shall have an exemption of $2 million. Every taxpayer 893 that is not a natural person is entitled each year to an 894 exemption of the first $250,000 of the value of property 895 otherwise subject to the tax. Agents and fiduciaries, other than 896 guardians and custodians under a gifts-to-minors act, filing as 897 such may not claim this exemption on behalf of their principals 898 or beneficiaries; however, if the principal or beneficiary 899 returns the property held by the agent or fiduciary and is a 900 natural person, the principal or beneficiary may claim the 901 exemption. A taxpayer is not entitled to more than one exemption 902 under this subsection. This exemption shall not apply to 903 intangible personal property described in s. 199.0235(6)(d). 904 (b) For purposes of this chapter, a resident shall be 905 deemed to have a beneficial interest in a trust if the resident 906 is the grantor of an irrevocable trust formed under any 907 arrangement, verbal or written, that provides for more than 25 908 per cent of the assets of the trust to be transferred within 10 909 years after the agreement is executed back to the grantor or to 910 the beneficiary other than as a result of the death of the 911 grantor. Assets in any trust designated as a Florida Intangible 912 Tax Exempt Trust or a similar arrangement are considered 913 beneficial interests. 914 (3) Each natural person who is a widow or widower, or who 915 is blind or totally and permanently disabled, is entitled each 916 year to an additional exemption of $500 of property otherwise 917 subject to the annual or nonrecurring tax. This exemption is 918 afforded by s. 3, Art. VII of the State Constitution and is 919 available only to the extent not used against real property or 920 tangible personal property taxes. 921 (4) Charitable trusts, 95 percent of the income of which is 922 paid to organizations exempt from federal income tax pursuant to 923 s. 501(c)3 of the Internal Revenue Code, are exempt from the tax 924 imposed in s. 199.0325. 925 (5) Any organization defined in s. 220.62(1), (2), (3), or 926 (4) is exempt from the tax imposed by s. 199.0325. 927 (6) Each liquor distributor that is domiciled in this 928 state, that is authorized to do business under the Beverage Law, 929 and that has paid the license taxes required by s. 565.03(2) is 930 exempt from paying tax on accounts receivable owned by the 931 taxpayer which are derived from, arise out of, or are issued in 932 connection with a sale of alcoholic beverages transacted in 933 another state with a customer in another state. 934 (7) A national bank that has its principal place of 935 business in another state, processes credit card credit 936 applications in this state or performs customer service or 937 collection operations in this state, and is not a bank under 12 938 U.S.C. s. 1941(c)(2)(F), is exempt from paying tax on credit 939 card receivables owed to the bank by a credit card holder 940 domiciled outside this state. 941 (8) Each insurer, as defined in s. 624.03, whether the 942 insurer is authorized or unauthorized as defined in s. 624.09, 943 is exempt from the tax imposed by s. 199.0325. 944 Section 2. Effective January 1, 2011, paragraph (c) of 945 subsection (1) of section 28.35, Florida Statutes, is amended to 946 read: 947 28.35 Florida Clerks of Court Operations Corporation.— 948 (1) 949 (c) For purposes of s. 199.183(1), the corporation shall be 950 considered a political subdivision of the state and shall be 951 exempt from the corporate income tax. The corporation is not 952 subject to the procurement provisions of chapter 287, and 953 policies and decisions of the corporation relating to incurring 954 debt, levying assessments, and the sale, issuance, continuation, 955 terms, and claims under corporation policies, and all services 956 relating thereto, are not subject to the provisions of chapter 957 120. 958 Section 3. Effective January 1, 2011, paragraph (a) of 959 subsection (4) of section 192.0105, Florida Statutes, is amended 960 to read: 961 192.0105 Taxpayer rights.—There is created a Florida 962 Taxpayer’s Bill of Rights for property taxes and assessments to 963 guarantee that the rights, privacy, and property of the 964 taxpayers of this state are adequately safeguarded and protected 965 during tax levy, assessment, collection, and enforcement 966 processes administered under the revenue laws of this state. The 967 Taxpayer’s Bill of Rights compiles, in one document, brief but 968 comprehensive statements that summarize the rights and 969 obligations of the property appraisers, tax collectors, clerks 970 of the court, local governing boards, the Department of Revenue, 971 and taxpayers. Additional rights afforded to payors of taxes and 972 assessments imposed under the revenue laws of this state are 973 provided in s. 213.015. The rights afforded taxpayers to assure 974 that their privacy and property are safeguarded and protected 975 during tax levy, assessment, and collection are available only 976 insofar as they are implemented in other parts of the Florida 977 Statutes or rules of the Department of Revenue. The rights so 978 guaranteed to state taxpayers in the Florida Statutes and the 979 departmental rules include: 980 (4) THE RIGHT TO CONFIDENTIALITY.— 981 (a) The right to have information kept confidential, 982 including federal tax information, ad valorem tax returns, 983 social security numbers, all financial records produced by the 984 taxpayer, Form DR-219 returns for documentary stamp tax 985 information, and sworn statements of gross income, copies of 986 federal income tax returns for the prior year, wage and earnings 987 statements (W-2 forms), and other documents (see ss. 192.105, 988 193.074, 193.114(6)(5), 195.027(3) and (6), and 196.101(4)(c)). 989 Section 4. Effective January 1, 2011, subsections (5) and 990 (6) of section 192.032, Florida Statutes, are renumbered as 991 subsections (6) and (7), respectively, and a new subsection (5) 992 is added to that section, to read: 993 192.032 Situs of property for assessment purposes.—All 994 property shall be assessed according to its situs as follows: 995 (5) Intangible personal property, according to the rules 996 laid down in chapter 199. 997 Section 5. Effective January 1, 2011, subsection (3) is 998 added to section 192.042, Florida Statutes, to read: 999 192.042 Date of assessment.—All property shall be assessed 1000 according to its just value as follows: 1001 (3) Intangible personal property, according to the rules 1002 laid down in chapter 199. 1003 Section 6. Effective January 1, 2011, subsection (5) of 1004 section 192.091, Florida Statutes, is amended to read: 1005 192.091 Commissions of property appraisers and tax 1006 collectors.— 1007 (5) The provisions of this section shall not apply to 1008 commissions on intangible property taxes or drainage district or 1009 drainage subdistrict taxes. 1010 Section 7. Effective January 1, 2011, subsections (4), (5), 1011 and (6) of section 193.114, Florida Statutes, are renumbered as 1012 subsections (5), (6), and (7), respectively, and a new 1013 subsection (4) is added to that section to read: 1014 193.114 Preparation of assessment rolls.— 1015 (4) The department shall adopt regulations and forms for 1016 the preparation of the intangible personal property tax roll to 1017 comply with chapter 199. 1018 Section 8. Effective January 1, 2011, subsection (11) is 1019 added to section 196.015, Florida Statutes, to read: 1020 196.015 Permanent residency; factual determination by 1021 property appraiser.—Intention to establish a permanent residence 1022 in this state is a factual determination to be made, in the 1023 first instance, by the property appraiser. Although any one 1024 factor is not conclusive of the establishment or 1025 nonestablishment of permanent residence, the following are 1026 relevant factors that may be considered by the property 1027 appraiser in making his or her determination as to the intent of 1028 a person claiming a homestead exemption to establish a permanent 1029 residence in this state: 1030 (11) The previous filing of Florida intangible tax returns 1031 by the applicant. 1032 Section 9. Effective January 1, 2011, paragraph (b) of 1033 subsection (2) of section 196.199, Florida Statutes, is amended 1034 to read: 1035 196.199 Government property exemption.— 1036 (2) Property owned by the following governmental units but 1037 used by nongovernmental lessees shall only be exempt from 1038 taxation under the following conditions: 1039 (b) Except as provided in paragraph (c), the exemption 1040 provided by this subsection shall not apply to those portions of 1041 a leasehold or other interest defined by s. 199.0235(6)(d) 1042199.023(1)(d), Florida Statutes 2005, subject to the provisions 1043 of subsection (7). Such leasehold or other interest shall be 1044 taxed only as intangible personal property pursuant to chapter 1045 199,Florida Statutes 2005,if rental payments are due in 1046 consideration of such leasehold or other interest.All1047applicable collection, administration, and enforcement1048provisions of chapter 199, Florida Statutes 2005, shall apply to1049taxation of such leaseholds.If no rental payments are due 1050 pursuant to the agreement creating such leasehold or other 1051 interest, the leasehold or other interest shall be taxed as real 1052 property. Nothing in this paragraph shall be deemed to exempt 1053 personal property, buildings, or other real property 1054 improvements owned by the lessee from ad valorem taxation. 1055 Section 10. Effective January 1, 2011, subsection (2) of 1056 section 199.133, Florida Statutes, is amended to read: 1057 199.133 Levy of nonrecurring tax; relationship to annual 1058 tax.— 1059 (2) The nonrecurring tax shall apply to a note, bond, or 1060 other obligation for payment of money only to the extent it is 1061 secured by mortgage, deed of trust, or other lien upon real 1062 property situated in this state. Where a note, bond, or other 1063 obligation is secured by personal property or by real property 1064 situated outside this state, as well as by mortgage, deed of 1065 trust, or other lien upon real property situated in this state, 1066 then the nonrecurring tax shall apply to that portion of the 1067 note, bond, or other obligation which bears the same ratio to 1068 the entire principal balance of the note, bond, or other 1069 obligation as the value of the real property situated in this 1070 state bears to the value of all of the security; however, if the 1071 security is solely made up of personal property and real 1072 property situated in this state, the taxpayer may elect to 1073 apportion the taxes based upon the value of the collateral, if 1074 any, to which the taxpayer by law or contract must look first 1075 for collection. In no event shall the portion of the note, bond, 1076 or other obligation which is subject to the nonrecurring tax 1077 exceed in value the value of the real property situated in this 1078 state which is the security. The portion of a note, bond, or 1079 other obligation that is not subject to the nonrecurring tax 1080 shall be subject to the annual tax unless otherwise exempt. 1081 Section 11. Effective January 1, 2011, paragraph (a) of 1082 subsection (1) of section 199.183, Florida Statutes, is amended, 1083 and subsections (3) and (4) are added to that section, to read: 1084 199.183 Taxpayers exempt from annual and nonrecurring 1085 taxes.— 1086 (1) Intangible personal property owned by this state or any 1087 of its political subdivisions or municipalities shall be exempt 1088 from taxation under this chapter. This exemption does not apply 1089 to: 1090 (a) Any leasehold or other interest that is described in s. 1091 199.0235(6)(d)199.023(1)(d), Florida Statutes 2005; or 1092 (b) Property related to the provision of two-way 1093 telecommunications services to the public for hire by the use of 1094 a telecommunications facility, as defined in s. 364.02(15), and 1095 for which a certificate is required under chapter 364, when the 1096 service is provided by any county, municipality, or other 1097 political subdivision of the state. Any immunity of any 1098 political subdivision of the state or other entity of local 1099 government from taxation of the property used to provide 1100 telecommunication services that is taxed as a result of this 1101 paragraph is hereby waived. However, intangible personal 1102 property related to the provision of telecommunications services 1103 provided by the operator of a public-use airport, as defined in 1104 s. 332.004, for the operator’s provision of telecommunications 1105 services for the airport or its tenants, concessionaires, or 1106 licensees, and intangible personal property related to the 1107 provision of telecommunications services provided by a public 1108 hospital, are exempt from taxation under this chapter. 1109 (3) Every national bank having its principal place of 1110 business in another state, but operating a credit card credit 1111 application processing, customer service, or collection 1112 operation in this state, that is not considered a bank under the 1113 provisions of 12 U.S.C. s. 1841(c)(2)(F), is exempt from paying 1114 the tax imposed by this chapter on credit card receivables owed 1115 to the bank by credit card holders domiciled outside this state. 1116 (4) Intangible personal property that is owned, managed, or 1117 controlled by a trustee of a trust is exempt from annual tax 1118 under this chapter. This exemption does not exempt from annual 1119 tax a resident of this state who has a taxable beneficial 1120 interest, as defined in s. 199.0235(4), in a trust. 1121 Section 12. Effective January 1, 2011, section 199.218, 1122 Florida Statutes, is amended to read: 1123 199.218 Books and records.— 1124 (1) Each taxpayer shall retain all books and other records 1125 necessary to identify the taxpayer’s intangible personal 1126 property and to determine any tax due under this chapter, as 1127 well as all books and other records otherwise required by rule 1128 of the department with respect to any such tax, until the 1129 department’s power to make an assessment with respect to such 1130 tax has terminated under s. 95.091(3). 1131 (2) Each broker subject to the provisions of s. 199.0625 1132 shall preserve all books and other records relating to the 1133 information reported under s. 199.0625 or otherwise required by 1134 rule of the department for a period of 3 years from the due date 1135 of the report. 1136 Section 13. Effective January 1, 2011, paragraph (a) of 1137 subsection (1) and subsection (3) of section 199.232, Florida 1138 Statutes, are amended to read: 1139 199.232 Powers of department.— 1140 (1)(a) The department may audit the books and records of 1141 any person to determine whether an annual tax or a nonrecurring 1142 tax has been properly paid. 1143 (3) With or without an audit, the department may assess any 1144 tax deficiency resulting from nonpayment or underpayment of the 1145 tax, as well as any applicable interest and penalties. The 1146 department shall assess on the basis of the best information 1147 available to it, including estimates based on the best 1148 information available to it if the taxpayer fails to permit 1149 inspection of the taxpayer’s records, fails to file an annual 1150 return, files a grossly incorrect return, or files a false and 1151 fraudulent return. 1152 Section 14. Effective January 1, 2011, section 199.282, 1153 Florida Statutes, is amended to read: 1154 199.282 Penalties for violation of this chapter.— 1155 (1) Any person willfully violating or failing to comply 1156 with any of the provisions of this chapter shall be guilty of a 1157 felony of the third degree, punishable as provided in s. 1158 775.082, s. 775.083, or s. 775.084. 1159 (2) If any annual or nonrecurring tax is not paid by the 1160 statutory due date, then despite any extension granted under s. 1161 199.232(6), interest shall run on the unpaid balance from such 1162 due date until paid at the rate of 12 percent per year. 1163 (3)(a) If any annual or nonrecurring tax is not paid by the 1164 due date, a delinquency penalty shall be charged. The 1165 delinquency penalty shall be 10 percent of the delinquent tax 1166 for each calendar month or portion thereof from the due date 1167 until paid, up to a limit of 50 percent of the total tax not 1168 timely paid. 1169 (b) If any annual tax return required by this chapter is 1170 not filed by the due date, a penalty of 10 percent of the tax 1171 due with the return shall be charged for each calendar month or 1172 portion thereof during which the return remains unfiled, up to a 1173 limit of 50 percent of the total tax due. 1174 1175 For any penalty assessed under this subsection, the combined 1176 total for all penalties assessed under paragraphs (a) and (b) 1177 shall not exceed 10 percent per calendar month, up to a limit of 1178 50 percent of the total tax due. 1179 (4) If an annual tax return is filed and property is either 1180 omitted from it or undervalued, then a specific penalty shall be 1181 charged. The specific penalty shall be 10 percent of the tax 1182 attributable to each omitted item or to each undervaluation. No 1183 delinquency or late filing penalty shall be charged with respect 1184 to any undervaluation. 1185 (5)(4)No mortgage, deed of trust, or other lien upon real 1186 property situated in this state shall be enforceable in any 1187 Florida court, nor shall any written evidence of such mortgage, 1188 deed of trust, or other lien be recorded in any public record of 1189 the state, until the nonrecurring tax imposed by this chapter, 1190 including any taxes due on future advances, has been paid and 1191 the clerk of circuit court collecting the tax has noted its 1192 payment on the instrument or given other receipt for it. 1193 However, failure to pay the correct amount of tax or failure of 1194 the clerk to note payment of the tax on the instrument shall not 1195 affect the constructive notice given by recording of the 1196 instrument. 1197 (6) Late reporting penalties shall be imposed as follows: 1198 (a) A penalty of $100 upon any corporation that does not 1199 timely file a written notice required under s. 199.0575(2)(c). 1200 (b) An initial penalty of $10 per customer position 1201 statement, plus an additional penalty of the greater of 1 1202 percent of the initial penalty or $50 for each month or portion 1203 of a month, from the date due until filing is made, upon any 1204 security dealer or investment adviser who does not timely file 1205 or fails to file the statements required by s. 199.0625(1). The 1206 submission of a position statement that does not comply with the 1207 department’s specifications and instructions or the submission 1208 of an inaccurate position statement is not a timely filing. The 1209 department shall notify any security dealer or investment 1210 adviser who fails to timely file the required statements. The 1211 minimum penalty imposed upon a security dealer or investment 1212 adviser under this paragraph is $100. 1213 (7)(5)Interest and penalties attributable to any tax shall 1214 be deemed assessed when the tax is assessed. Interest and 1215 penalties shall be assessed and collected by the department as 1216 provided in this chapter. The department may settle or 1217 compromise tax, interest, or penalties under the provisions of 1218 s. 213.21. 1219 (8)(6)Any person who fails or refuses to file an annual 1220 return, or who fails or refuses to make records available for 1221 inspection, when requested to do so by the department is guilty 1222 of a misdemeanor of the first degree, punishable as provided in 1223 s. 775.082 or s. 775.083. 1224 (9)(7)Any officer or director of a corporation who has 1225 administrative control over the filing of a return or payment of 1226 any tax due under this chapter and who willfully directs any 1227 employee of the corporation to fail to file the return or pay 1228 the tax due or to evade, defeat, or improperly account for the 1229 tax due, in addition to any other penalties provided by law, 1230 shall be liable for a penalty equal to the amount of tax not 1231 paid as required by this chapter. The filing of a protest based 1232 upon doubt as to liability for the tax shall not be deemed an 1233 attempt to evade or defeat the tax under this subsection. The 1234 penalty imposed hereunder shall be abated to the extent the tax 1235 is paid and may be compromised by the executive director of the 1236 department as provided in s. 213.21. An assessment of penalty 1237 made pursuant to this section shall be deemed prima facie 1238 correct in any judicial or quasi-judicial proceeding brought to 1239 collect this penalty. 1240 Section 15. Effective January 1, 2011, section 199.292, 1241 Florida Statutes, is amended to read: 1242 199.292 Disposition of intangible personal property taxes. 1243 All intangible personal property taxes collected pursuant to 1244 this chapter, except for revenues derived from the annual tax on 1245 a leasehold described in s. 199.0235(6)(d)199.023(1)(d),1246Florida Statutes 2005,shall be deposited into the General 1247 Revenue Fund. Revenues derived from the annual tax on a 1248 leasehold described in s. 199.0235(6)(d)199.023(1)(d), Florida1249Statutes 2005,shall be returned to the local school board for 1250 the county in which the property subject to the leasehold is 1251 situated. 1252 Section 16. Effective January 1, 2011, subsection (3) of 1253 section 199.303, Florida Statutes, is amended to read: 1254 199.303 Declaration of legislative intent.— 1255(3) It is hereby declared to be the specific intent of the1256Legislature that all annual intangible personal property taxes1257imposed as provided by law for calendar years 2006 and prior1258shall remain in full force and effect during the period1259specified by s.95.091for the year in which the tax was due. It1260is further the intent of the Legislature that the department1261continue to assess and collect all taxes due to the state under1262such provisions for all periods available for assessment, as1263provided for the year in which tax was due by s.95.091.1264 Section 17. Effective January 1, 2011, subsection (19) of 1265 section 212.02, Florida Statutes, is amended to read: 1266 212.02 Definitions.—The following terms and phrases when 1267 used in this chapter have the meanings ascribed to them in this 1268 section, except where the context clearly indicates a different 1269 meaning: 1270 (19) “Tangible personal property” means and includes 1271 personal property which may be seen, weighed, measured, or 1272 touched or is in any manner perceptible to the senses, including 1273 electric power or energy, boats, motor vehicles and mobile homes 1274 as defined in s. 320.01(1) and (2), aircraft as defined in s. 1275 330.27, and all other types of vehicles. The term “tangible 1276 personal property” does not include stocks, bonds, notes, 1277 insurance, or other obligations or securities; intangibles as 1278 defined by the intangible tax law of the state; or pari-mutuel 1279 tickets sold or issued under the racing laws of the state. 1280 Section 18. Effective January 1, 2011, paragraph (p) of 1281 subsection (8) and paragraph (a) of subsection (15) of section 1282 213.053, Florida Statutes, are amended to read: 1283 213.053 Confidentiality and information sharing.— 1284 (8) Notwithstanding any other provision of this section, 1285 the department may provide: 1286 (p) Information relative to ss. 199.10555, 220.1845, and 1287 376.30781 to the Department of Environmental Protection in the 1288 conduct of its official business. 1289 1290 Disclosure of information under this subsection shall be 1291 pursuant to a written agreement between the executive director 1292 and the agency. Such agencies, governmental or nongovernmental, 1293 shall be bound by the same requirements of confidentiality as 1294 the Department of Revenue. Breach of confidentiality is a 1295 misdemeanor of the first degree, punishable as provided by s. 1296 775.082 or s. 775.083. 1297 (15)(a) Notwithstanding any other provision of this 1298 section, the department shall, subject to the safeguards 1299 specified in paragraph (c), disclose to the Division of 1300 Corporations of the Department of State the name, address, 1301 federal employer identification number, and duration of tax 1302 filings with this state of all corporate or partnership entities 1303 which are not on file or have a dissolved status with the 1304 Division of Corporations and which have filed tax returns 1305 pursuant to chapter 199 or chapter 220. 1306 Section 19. Effective January 1, 2011, section 213.054, 1307 Florida Statutes, is amended to read: 1308 213.054 Persons claiming tax exemptions or deductions; 1309 annual report.—The Department of Revenue shall be responsible 1310 for monitoring the utilization of tax exemptions and tax 1311 deductions authorized pursuant to chapter 81-179, Laws of 1312 Florida. On or before September 1 of each year, the department 1313 shall report to the Chief Financial Officer the names and 1314 addresses of all persons who have claimed an exemption pursuant 1315 to s. 199.1855(1)(i) or a deduction pursuant to s. 220.63(5). 1316 Section 20. Effective January 1, 2011, section 213.27, 1317 Florida Statutes, is amended to read: 1318 213.27 Contracts with debt collection agencies and certain 1319 vendors.— 1320 (1) The Department of Revenue may, for the purpose of 1321 collecting any delinquent taxes due from a taxpayer, including 1322 taxes for which a bill or notice has been generated, contract 1323 with any debt collection agency or attorney doing business 1324 within or without this state for the collection of such 1325 delinquent taxes, including penalties and interest thereon. The 1326 department may also share confidential information pursuant to 1327 the contract necessary for the collection of delinquent taxes 1328 and taxes for which a billing or notice has been generated. 1329 Contracts will be made pursuant to chapter 287. The taxpayer 1330 must be notified by mail by the department, its employees, or 1331 its authorized representative at least 30 days prior to 1332 commencing any litigation to recover any delinquent taxes. The 1333 taxpayer must be notified by mail by the department at least 30 1334 days prior to the initial assignment by the department of the 1335 taxpayer’s account for the collection of any taxes by the debt 1336 collection agency. 1337 (2) The department may enter into contracts with any 1338 individual or business for the purpose of identifying intangible 1339 personal property tax liability. Contracts may provide for the 1340 identification of assets subject to the tax on intangible 1341 personal property, the determination of value of such property, 1342 the requirement for filing a tax return and the collection of 1343 taxes due, including applicable penalties and interest thereon. 1344 The department may share confidential information pursuant to 1345 the contract necessary for the identification of taxable 1346 intangible personal property. Contracts shall be made pursuant 1347 to chapter 287. The taxpayer must be notified by mail by the 1348 department at least 30 days prior to the department assigning 1349 identification of intangible personal property to an individual 1350 or business. 1351 (3)(2)Any contract may provide, in the discretion of the 1352 executive director of the Department of Revenue, the manner in 1353 which the compensation for such services will be paid. Under 1354 standards established by the department, such compensation shall 1355 be added to the amount of the tax and collected as a part 1356 thereof by the agency or deducted from the amount of tax, 1357 penalty, and interest actually collected. 1358 (4)(3)All funds collected under the terms of the contract, 1359 less the fees provided in the contract, shall be remitted to the 1360 department within 30 days from the date of collection from a 1361 taxpayer. Forms to be used for such purpose shall be prescribed 1362 by the department. 1363 (5)(4)The department shall require a bond from the debt 1364 collection agency or the individual or business contracted with 1365 under subsection (2) not in excess of $100,000 guaranteeing 1366 compliance with the terms of the contract. However, a bond of 1367 $10,000 is required from a debt collection agency if the agency 1368 does not actually collect and remit delinquent funds to the 1369 department. 1370 (6)(5)The department may, for the purpose of ascertaining 1371 the amount of or collecting any taxes due from a person doing 1372 mail order business in this state, contract with any auditing 1373 agency doing business within or without this state for the 1374 purpose of conducting an audit of such mail order business; 1375 however, such audit agency may not conduct an audit on behalf of 1376 the department of any person domiciled in this state, person 1377 registered for sales and use tax purposes in this state, or 1378 corporation filing a Florida corporate tax return, if any such 1379 person or corporation objects to such audit in writing to the 1380 department and the auditing agency. The department shall notify 1381 the taxpayer by mail at least 30 days before the department 1382 assigns the collection of such taxes. 1383 (7)(6)Confidential information shared by the department 1384 with debt collection or auditing agencies or individuals or 1385 businesses with which the department has contracted under 1386 subsection (2) is exempt from the provisions of s. 119.07(1), 1387 and debt collection or auditing agencies and individuals or 1388 businesses with which the department has contracted under 1389 subsection (2) shall be bound by the same requirements of 1390 confidentiality as the Department of Revenue. Breach of 1391 confidentiality is a misdemeanor of the first degree, punishable 1392 as provided by ss. 775.082 and 775.083. 1393 (8)(7)(a) The executive director of the department may 1394 enter into contracts with private vendors to develop and 1395 implement systems to enhance tax collections where compensation 1396 to the vendors is funded through increased tax collections. The 1397 amount of compensation paid to a vendor shall be based on a 1398 percentage of increased tax collections attributable to the 1399 system after all administrative and judicial appeals are 1400 exhausted, and the total amount of compensation paid to a vendor 1401 shall not exceed the maximum amount stated in the contract. 1402 (b) A person acting on behalf of the department under a 1403 contract authorized by this subsection does not exercise any of 1404 the powers of the department, except that the person is an agent 1405 of the department for the purposes of developing and 1406 implementing a system to enhance tax collection. 1407 (c) Disclosure of information under this subsection shall 1408 be pursuant to a written agreement between the executive 1409 director and the private vendors. The vendors shall be bound by 1410 the same requirements of confidentiality as the department. 1411 Breach of confidentiality is a misdemeanor of the first degree, 1412 punishable as provided in s. 775.082 or s. 775.083. 1413 Section 21. Effective January 1, 2011, paragraph (b) of 1414 subsection (4) of section 650.05, Florida Statutes, is amended 1415 to read: 1416 650.05 Plans for coverage of employees of political 1417 subdivisions.— 1418 (4) 1419 (b) The grants-in-aid and other revenue referred to in 1420 paragraph (a) specifically include, but are not limited to, 1421 minimum foundation program grants to public school districts and 1422 community colleges; gasoline, motor fuel, intangible, cigarette, 1423 racing, and insurance premium taxes distributed to political 1424 subdivisions; and amounts specifically appropriated as grants 1425 in-aid for mental health, mental retardation, and mosquito 1426 control programs. 1427 Section 22. Effective January 1, 2011, subsection (5) of 1428 section 733.702, Florida Statutes, is renumbered as subsection 1429 (6), and a new subsection (5) is added to that section to read: 1430 733.702 Limitations on presentation of claims.— 1431 (5) The Department of Revenue may file a claim against the 1432 estate of a decedent for taxes due under chapter 199 after the 1433 expiration of the time for filing claims provided in subsection 1434 (1), if the department files its claim within 30 days after the 1435 service of the inventory. Upon filing of the estate tax return 1436 with the department as provided in s. 198.13, or to the extent 1437 the inventory or estate tax return is amended or supplemented, 1438 the department has the right to file a claim or to amend its 1439 previously filed claim within 30 days after service of the 1440 estate tax return, or an amended or supplemented inventory or 1441 filing of an amended or supplemental estate tax return, as to 1442 the additional information disclosed. 1443 Section 23. Effective upon this act becoming a law, the 1444 executive director of the Department of Revenue may adopt 1445 emergency rules under ss. 120.536(1) and 120.54, Florida 1446 Statutes, to implement chapter 199, Florida Statutes, and all 1447 conditions are deemed met for the adoption of such rules. 1448 Notwithstanding any other provision of law, such emergency rules 1449 shall remain effective for 6 months after the date of adoption 1450 and may be renewed during the pendency of procedures to adopt 1451 rules addressing the subject of the emergency rules. 1452 Section 24. Legislative findings and intent.—The 1453 Legislature finds that the separate accounting system used to 1454 measure the income of multistate and multinational corporations 1455 for tax purposes often places corporations in this state at a 1456 competitive disadvantage. Moreover, corporate business is 1457 increasingly conducted through groups of commonly owned 1458 corporations. Therefore, the Legislature intends to more 1459 accurately measure the business activities of corporations by 1460 adopting a combined system of income tax reporting. 1461 Section 25. Paragraph (z) of subsection (1) of section 1462 220.03, Florida Statutes, is amended, and paragraphs (gg) and 1463 (hh) are added to that subsection, to read: 1464 220.03 Definitions.— 1465 (1) SPECIFIC TERMS.—When used in this code, and when not 1466 otherwise distinctly expressed or manifestly incompatible with 1467 the intent thereof, the following terms shall have the following 1468 meanings: 1469 (z) “Taxpayer” means any corporation subject to the tax 1470 imposed by this code, and includes all corporations that are 1471 members of a water’s edge groupfor which a consolidated return1472is filed under s.220.131. However, “taxpayer” does not include 1473 a corporation having no individuals (including individuals 1474 employed by an affiliate) receiving compensation in this state 1475 as defined in s. 220.15 when the only property owned or leased 1476 by said corporation (including an affiliate) in this state is 1477 located at the premises of a printer with which it has 1478 contracted for printing, if such property consists of the final 1479 printed product, property which becomes a part of the final 1480 printed product, or property from which the printed product is 1481 produced. 1482 (gg) “Tax haven” means a jurisdiction that, for a 1483 particular tax year: 1484 1. Is identified by the Organization for Economic Co 1485 operation and Development as a tax haven or as having a harmful 1486 preferential tax regime; or 1487 2.a. Is a jurisdiction that does not impose or imposes only 1488 a nominal, effective tax on relevant income; 1489 b. Has laws or practices that prevent the effective 1490 exchange of information for tax purposes with other governments 1491 regarding taxpayers who are subject to, or benefiting from, the 1492 tax regime; 1493 c. Lacks transparency; 1494 d. Facilitates the establishment of foreign-owned entities 1495 without the need for a local substantive presence or prohibits 1496 these entities from having any commercial impact on the local 1497 economy; 1498 e. Explicitly or implicitly excludes the jurisdiction’s 1499 resident taxpayers from taking advantage of the tax regime’s 1500 benefits or prohibits enterprises that benefit from the regime 1501 from operating in the jurisdiction’s domestic market; or 1502 f. Has created a tax regime that is favorable for tax 1503 avoidance, based upon an overall assessment of relevant factors, 1504 including whether the jurisdiction has a significant untaxed 1505 offshore financial or other services sector relative to its 1506 overall economy. 1507 1508 For purposes of this paragraph, a tax regime lacks transparency 1509 if the details of legislative, legal, or administrative 1510 requirements are not open to public scrutiny and apparent, or 1511 are not consistently applied among similarly situated taxpayers. 1512 As used in this paragraph, the term “tax regime” means a set or 1513 system of rules, laws, regulations, or practices by which taxes 1514 are imposed on any person, corporation, or entity, or on any 1515 income, property, incident, indicia, or activity pursuant to 1516 government authority. 1517 (hh) “Water’s edge group” means a group of corporations 1518 related through common ownership whose business activities are 1519 integrated with, dependent upon, or contribute to a flow of 1520 value among members of the group. 1521 Section 26. Subsection (1) of section 220.13, Florida 1522 Statutes, is amended to read: 1523 220.13 “Adjusted federal income” defined.— 1524 (1) The term “adjusted federal income” means an amount 1525 equal to the taxpayer’s taxable income as defined in subsection 1526 (2), or such taxable income of more than one taxpayer as 1527 provided in s. 220.1363s.220.131, for the taxable year, 1528 adjusted as follows: 1529 (a) Additions.—There shall be added to such taxable income: 1530 1. The amount of any tax upon or measured by income, 1531 excluding taxes based on gross receipts or revenues, paid or 1532 accrued as a liability to the District of Columbia or any state 1533 of the United States which is deductible from gross income in 1534 the computation of taxable income for the taxable year. 1535 2. The amount of interest which is excluded from taxable 1536 income under s. 103(a) of the Internal Revenue Code or any other 1537 federal law, less the associated expenses disallowed in the 1538 computation of taxable income under s. 265 of the Internal 1539 Revenue Code or any other law, excluding 60 percent of any 1540 amounts included in alternative minimum taxable income, as 1541 defined in s. 55(b)(2) of the Internal Revenue Code, if the 1542 taxpayer pays tax under s. 220.11(3). 1543 3. In the case of a regulated investment company or real 1544 estate investment trust, an amount equal to the excess of the 1545 net long-term capital gain for the taxable year over the amount 1546 of the capital gain dividends attributable to the taxable year. 1547 4. That portion of the wages or salaries paid or incurred 1548 for the taxable year which is equal to the amount of the credit 1549 allowable for the taxable year under s. 220.181. This 1550 subparagraph shall expire on the date specified in s. 290.016 1551 for the expiration of the Florida Enterprise Zone Act. 1552 5. That portion of the ad valorem school taxes paid or 1553 incurred for the taxable year which is equal to the amount of 1554 the credit allowable for the taxable year under s. 220.182. This 1555 subparagraph shall expire on the date specified in s. 290.016 1556 for the expiration of the Florida Enterprise Zone Act. 1557 6. The amount of emergency excise tax paid or accrued as a 1558 liability to this state under chapter 221 which tax is 1559 deductible from gross income in the computation of taxable 1560 income for the taxable year. 1561 7. That portion of assessments to fund a guaranty 1562 association incurred for the taxable year which is equal to the 1563 amount of the credit allowable for the taxable year. 1564 8. In the case of a nonprofit corporation which holds a 1565 pari-mutuel permit and which is exempt from federal income tax 1566 as a farmers’ cooperative, an amount equal to the excess of the 1567 gross income attributable to the pari-mutuel operations over the 1568 attributable expenses for the taxable year. 1569 9. The amount taken as a credit for the taxable year under 1570 s. 220.1895. 1571 10. Up to nine percent of the eligible basis of any 1572 designated project which is equal to the credit allowable for 1573 the taxable year under s. 220.185. 1574 11. The amount taken as a credit for the taxable year under 1575 s. 220.187. 1576 12. The amount taken as a credit for the taxable year under 1577 s. 220.192. 1578 13. The amount taken as a credit for the taxable year under 1579 s. 220.193. 1580 14. Any portion of a qualified investment, as defined in s. 1581 288.9913, which is claimed as a deduction by the taxpayer and 1582 taken as a credit against income tax pursuant to s. 288.9916. 1583 (b) Subtractions.— 1584 1. There shall be subtracted from such taxable income: 1585 a. The net operating loss deduction allowable for federal 1586 income tax purposes under s. 172 of the Internal Revenue Code 1587 for the taxable year, 1588 b. The net capital loss allowable for federal income tax 1589 purposes under s. 1212 of the Internal Revenue Code for the 1590 taxable year, 1591 c. The excess charitable contribution deduction allowable 1592 for federal income tax purposes under s. 170(d)(2) of the 1593 Internal Revenue Code for the taxable year, and 1594 d. The excess contributions deductions allowable for 1595 federal income tax purposes under s. 404 of the Internal Revenue 1596 Code for the taxable year. 1597 1598 However, a net operating loss and a capital loss shall never be 1599 carried back as a deduction to a prior taxable year, but all 1600 deductions attributable to such losses shall be deemed net 1601 operating loss carryovers and capital loss carryovers, 1602 respectively, and treated in the same manner, to the same 1603 extent, and for the same time periods as are prescribed for such 1604 carryovers in ss. 172 and 1212, respectively, of the Internal 1605 Revenue Code. A deduction is not allowed for net operating 1606 losses, net capital losses, or excess contribution deductions 1607 under 26 U.S.C. ss. 170(d)(2), 172, 1212, and 404 for a member 1608 of a water’s edge group that is not a United States member. 1609 Carryovers of net operating losses, net capital losses, or 1610 excess contribution deductions under 26 U.S.C. ss. 170(d)(2), 1611 172, 1212, and 404 may be subtracted only by the member of the 1612 water’s edge group that generates a carryover. 1613 2. There shall be subtracted from such taxable income any 1614 amount to the extent included therein the following: 1615 a. Dividends treated as received from sources without the 1616 United States, as determined under s. 862 of the Internal 1617 Revenue Code. 1618 b. All amounts included in taxable income under s. 78 or s. 1619 951 of the Internal Revenue Code. 1620 1621 However, as to any amount subtracted under this subparagraph, 1622 there shall be added to such taxable income all expenses 1623 deducted on the taxpayer’s return for the taxable year which are 1624 attributable, directly or indirectly, to such subtracted amount. 1625 Further, no amount shall be subtracted with respect to dividends 1626 paid or deemed paid by a Domestic International Sales 1627 Corporation. 1628 3. Amounts received by a member of a water’s edge group as 1629 dividends paid by another member of the water’s edge group shall 1630 be subtracted from the taxable income to the extent that the 1631 dividends are included in the taxable income. 1632 4.3.In computing “adjusted federal income” for taxable 1633 years beginning after December 31, 1976, there shall be allowed 1634 as a deduction the amount of wages and salaries paid or incurred 1635 within this state for the taxable year for which no deduction is 1636 allowed pursuant to s. 280C(a) of the Internal Revenue Code 1637 (relating to credit for employment of certain new employees). 1638 5.4.There shall be subtracted from such taxable income any 1639 amount of nonbusiness income included therein. 1640 6.5.There shall be subtracted any amount of taxes of 1641 foreign countries allowable as credits for taxable years 1642 beginning on or after September 1, 1985, under s. 901 of the 1643 Internal Revenue Code to any corporation which derived less than 1644 20 percent of its gross income or loss for its taxable year 1645 ended in 1984 from sources within the United States, as 1646 described in s. 861(a)(2)(A) of the Internal Revenue Code, not 1647 including credits allowed under ss. 902 and 960 of the Internal 1648 Revenue Code, withholding taxes on dividends within the meaning 1649 of sub-subparagraph 2.a., and withholding taxes on royalties, 1650 interest, technical service fees, and capital gains. 1651 7.6.Notwithstanding any other provision of this code, 1652 except with respect to amounts subtracted pursuant to 1653 subparagraphs 1. and 4.3., any increment of any apportionment 1654 factor which is directly related to an increment of gross 1655 receipts or income which is deducted, subtracted, or otherwise 1656 excluded in determining adjusted federal income shall be 1657 excluded from both the numerator and denominator of such 1658 apportionment factor. Further, all valuations made for 1659 apportionment factor purposes shall be made on a basis 1660 consistent with the taxpayer’s method of accounting for federal 1661 income tax purposes. 1662 (c) Installment sales occurring after October 19, 1980.— 1663 1. In the case of any disposition made after October 19, 1664 1980, the income from an installment sale shall be taken into 1665 account for the purposes of this code in the same manner that 1666 such income is taken into account for federal income tax 1667 purposes. 1668 2. Any taxpayer who regularly sells or otherwise disposes 1669 of personal property on the installment plan and reports the 1670 income therefrom on the installment method for federal income 1671 tax purposes under s. 453(a) of the Internal Revenue Code shall 1672 report such income in the same manner under this code. 1673 (d) Nonallowable deductions.—A deduction for net operating 1674 losses, net capital losses, or excess contributions deductions 1675 under ss. 170(d)(2), 172, 1212, and 404 of the Internal Revenue 1676 Code which has been allowed in a prior taxable year for Florida 1677 tax purposes shall not be allowed for Florida tax purposes, 1678 notwithstanding the fact that such deduction has not been fully 1679 utilized for federal tax purposes. 1680 (e) Adjustments related to the Federal Economic Stimulus 1681 Act of 2008 and the American Recovery and Reinvestment Act of 1682 2009.—Taxpayers shall be required to make the adjustments 1683 prescribed in this paragraph for Florida tax purposes in 1684 relation to certain tax benefits received pursuant to the 1685 Economic Stimulus Act of 2008 and the American Recovery and 1686 Reinvestment Act of 2009. 1687 1. There shall be added to such taxable income an amount 1688 equal to 100 percent of any amount deducted for federal income 1689 tax purposes as bonus depreciation for the taxable year pursuant 1690 to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as 1691 amended by s. 103 of Pub. L. No. 110-185 and s. 1201 of Pub. L. 1692 No. 111-5, for property placed in service after December 31, 1693 2007, and before January 1, 2010. For the taxable year and for 1694 each of the 6 subsequent taxable years, there shall be 1695 subtracted from such taxable income an amount equal to one 1696 seventh of the amount by which taxable income was increased 1697 pursuant to this subparagraph, notwithstanding any sale or other 1698 disposition of the property that is the subject of the 1699 adjustments and regardless of whether such property remains in 1700 service in the hands of the taxpayer. 1701 2. There shall be added to such taxable income an amount 1702 equal to 100 percent of any amount in excess of $128,000 1703 deducted for federal income tax purposes for the taxable year 1704 pursuant to s. 179 of the Internal Revenue Code of 1986, as 1705 amended by s. 102 of Pub. L. No. 110-185 and s. 1202 of Pub. L. 1706 No. 111-5, for taxable years beginning after December 31, 2007, 1707 and before January 1, 2010. For the taxable year and for each of 1708 the 6 subsequent taxable years, there shall be subtracted from 1709 such taxable income one-seventh of the amount by which taxable 1710 income was increased pursuant to this subparagraph, 1711 notwithstanding any sale or other disposition of the property 1712 that is the subject of the adjustments and regardless of whether 1713 such property remains in service in the hands of the taxpayer. 1714 3. There shall be added to such taxable income an amount 1715 equal to the amount of deferred income not included in such 1716 taxable income pursuant to s. 108(i)(1) of the Internal Revenue 1717 Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There 1718 shall be subtracted from such taxable income an amount equal to 1719 the amount of deferred income included in such taxable income 1720 pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986, 1721 as amended by s. 1231 of Pub. L. No. 111-5. 1722 4. Subtractions available under this paragraph may be 1723 transferred to the surviving or acquiring entity following a 1724 merger or acquisition and used in the same manner and with the 1725 same limitations as specified by this paragraph. 1726 5. The additions and subtractions specified in this 1727 paragraph are intended to adjust taxable income for Florida tax 1728 purposes, and, notwithstanding any other provision of this code, 1729 such additions and subtractions shall be permitted to change a 1730 taxpayer’s net operating loss for Florida tax purposes. 1731 Section 27. Section 220.136, Florida Statutes, is created 1732 to read: 1733 220.136 Determination of the members of a water’s edge 1734 group.— 1735 (1) MEMBERSHIP RULES.— 1736 (a) A corporation having 50 percent or more of its 1737 outstanding voting stock directly or indirectly owned or 1738 controlled by a water’s edge group is presumed to be a member of 1739 the group. A corporation having less than 50 percent of its 1740 outstanding voting stock directly or indirectly controlled by a 1741 water’s edge group is a member of the group if the businesses 1742 activities of the corporation show that the corporation is a 1743 member of the group. All of the income of a corporation that is 1744 a member of a water’s edge group is presumed to be unitary. 1745 (b) A corporation that conducts business outside the United 1746 States is not a member of a water’s edge group if 80 percent or 1747 more of the corporation’s property and payroll, as determined by 1748 the apportionment factors described in ss. 220.15 and 220.1363, 1749 may be assigned to locations outside the United States. However, 1750 such corporations that are incorporated in a tax haven may be a 1751 member of a water’s edge group pursuant to paragraph (a). This 1752 paragraph does not exempt a corporation that is not a member of 1753 a water’s edge group from the provisions of this chapter. 1754 (2) MEMBERSHIP EVALUATION CRITERIA.— 1755 (a) The attribution rules of 26 U.S.C. 318 shall be used to 1756 determine whether voting stock is owned indirectly. 1757 (b) As used in this paragraph, the term “United States” 1758 means the 50 states, the District of Columbia, and Puerto Rico. 1759 (c) The apportionment factors described in ss. 220.15 and 1760 220.1363 shall be used to determine whether a special industry 1761 corporation has engaged in a sufficient amount of activities 1762 outside the United States to exclude it from treatment as a 1763 member of a water’s edge group. 1764 Section 28. Section 220.1363, Florida Statutes, is created 1765 to read: 1766 220.1363 Water’s edge groups; special requirements.— 1767 (1) All members of a water’s edge group must use the 1768 water’s edge reporting method. Under the water’s edge reporting 1769 method: 1770 (a) Adjusted federal income for purposes of s. 220.12 means 1771 the sum of adjusted federal income for all members of the group 1772 as determined for a concurrent tax year. 1773 (b) The numerators and denominators of the apportionment 1774 factors shall be calculated for all members of the group 1775 combined. 1776 (c) Intercompany sales transactions between members of the 1777 group are not included in the numerator or denominator of the 1778 sales factor pursuant to ss. 220.15 and 220.151, regardless of 1779 whether indicia of a sale exist. As used in this subsection, the 1780 term “sale” includes, but is not limited to, loans, payments for 1781 the use of intangibles, dividends, and management fees. 1782 (d) For sales of intangibles, including, but not limited 1783 to, accounts receivable, notes, bonds, and stock, which are made 1784 to entities outside of the group, only the net proceeds are 1785 included in the numerator and denominator of the sales factor. 1786 (e) Sales that are not allocated or apportioned to any 1787 taxing jurisdiction, otherwise known as “nowhere sales,” may not 1788 be included in the numerator or denominator of the sales factor. 1789 (f) The income attributable to the activities in this state 1790 of a corporation that is exempt from taxation under Pub. L. No. 1791 86-272 is excluded from the apportionment factor numerators in 1792 the calculation of corporate income tax even if another member 1793 of the water’s edge group has nexus with this state and is 1794 subject to tax. 1795 (g) For purposes of this section, the term “water’s edge 1796 reporting method” is a method to determine the taxable business 1797 profits of a group of entities conducting a unitary business. 1798 Under this method, the net income of the entities must be added 1799 together along with the additions and subtractions under s. 1800 220.13 and apportioned to this state as a single taxpayer under 1801 s. 220.15 and 220.151. However, each special industry member 1802 included in a water’s edge group return, which would otherwise 1803 be permitted to use a special method of apportionment under s. 1804 220.151, shall convert its single-factor apportionment to a 1805 three-factor apportionment of property, payroll, and sales. The 1806 special industry member shall calculate the denominator of its 1807 property, payroll, and sales factors in the same manner as those 1808 denominators are calculated by members that are not a special 1809 industry member. The numerator of its sales, property, and 1810 payroll factors is the product of the denominator of each factor 1811 multiplied by the premiums or revenue-miles-factor ratio 1812 otherwise applicable under s. 220.151. 1813 (2)(a) A single water’s edge group return must be filed in 1814 the name and federal employer identification number of the 1815 parent corporation if the parent is a member of the group and 1816 has nexus with this state. If the group does not have a parent 1817 corporation, if the parent corporation is not a member of the 1818 group, or if the parent corporation does not have nexus with 1819 this state, the members of the group must choose a member 1820 subject to the Florida corporate income tax to file the return. 1821 The members of the group may not choose another member to file a 1822 corporate income tax return in subsequent years unless the 1823 filing member does not maintain nexus with this state or remain 1824 a member of that group. The return must be signed by an 1825 authorized officer of the filing member as the agent for the 1826 group. 1827 (b) If members of a water’s edge group have different tax 1828 years, the tax year of a majority of the members of the group is 1829 the tax year of the group. If the tax years of a majority of the 1830 members of a group do not correspond, the tax year of the member 1831 that must file the return for the group is the tax year of the 1832 group. 1833 (c)1. A member of a water’s edge group having a tax year 1834 that does not correspond to the tax year of the group shall 1835 determine its income for inclusion on the tax return for the 1836 group. The member shall use: 1837 a. The precise amount of taxable income received during the 1838 months corresponding to the tax year of the group, if the 1839 precise amount can be readily determined from the member’s books 1840 and records. 1841 b. The taxable income of the member converted to conform to 1842 the tax year of the group on the basis of the number of months 1843 falling within the tax year of the group. For example, if the 1844 tax year of the water’s edge group is a calendar year and a 1845 member operates on a fiscal year ending on April 30, the income 1846 of the member shall include 8/12 of the income from the current 1847 tax year and 4/12 of the income from the preceding tax year. 1848 This method to determine the income of a member may be used only 1849 if the return can be timely filed after the end of the tax year 1850 of the group. 1851 c. The taxable income of the member during its tax year 1852 that ends within the tax year of the group. 1853 2. The method of determining the income of a member of a 1854 group whose tax year does not correspond to the tax year of the 1855 group may not change as long as the member remains a member of 1856 the group. The apportionment factors for the member must be 1857 applied to the income of the member for the tax year of the 1858 group. 1859 (3)(a) A water’s edge group return shall include a 1860 computational schedule that: 1861 1. Combines the federal income of all members of the 1862 water’s edge group; 1863 2. Shows all intercompany eliminations; 1864 3. Shows Florida additions and subtractions under s. 1865 220.13; and 1866 4. Shows the calculation of the combined apportionment 1867 factors. 1868 (b) A water’s edge group shall also file a domestic 1869 disclosure spreadsheet in addition to its return. The 1870 spreadsheet shall fully disclose: 1871 1. The income reported to each state. 1872 2. The state tax liability. 1873 3. The method used for apportioning or allocating income to 1874 the various states. 1875 4. Other information required by the department by rule in 1876 order to determine the proper amount of tax due to each state 1877 and to identify the water’s edge group. 1878 (4) The department may adopt rules and forms to administer 1879 this section. The Legislature intends to grant the department 1880 extensive authority to adopt rules and forms describing and 1881 defining principles for determining the existence of a water’s 1882 edge business, definitions of common control, methods of 1883 reporting, and related forms, principles, and other definitions. 1884 Section 29. Section 220.14, Florida Statutes, is amended to 1885 read: 1886 220.14 Exemption.— 1887 (1) In computing a taxpayer’s liability for tax under this 1888 code, there shall be exempt from the tax $5,000 of net income as 1889 defined in s. 220.12 or such lesser amount as will, without 1890 increasing the taxpayer’s federal income tax liability, provide 1891 the state with an amount under this code which is equal to the 1892 maximum federal income tax credit which may be available from 1893 time to time under federal law. 1894 (2) In the case of a taxable year for a period of less than 1895 12 months, the exemption allowed by this section shall be 1896 prorated on the basis of the number of days in such year to 365, 1897 or in the case of a leap year, to 366. 1898 (3) Only one exemption shall be allowed to taxpayers filing 1899 a water’s edge groupa consolidatedreturn under this code. 1900 (4) Notwithstanding any other provision of this code, not 1901 more than one exemption under this section may be allowed to the 1902 Florida members of a controlled group of corporations, as 1903 defined in s. 1563 of the Internal Revenue Code with respect to 1904 taxable years ending on or after December 31, 1970, filing 1905 separate returns under this code. The exemption described in 1906 this section shall be divided equally among such Florida members 1907 of the group, unless all of such members consent, at such time 1908 and in such manner as the department shall by regulation 1909 prescribe, to an apportionment plan providing for an unequal 1910 allocation of such exemption. 1911 Section 30. Subsection (5) of section 220.15, Florida 1912 Statutes, is amended to read: 1913 220.15 Apportionment of adjusted federal income.— 1914 (5) The sales factor is a fraction the numerator of which 1915 is the total sales of the taxpayer in this state during the 1916 taxable year or period and the denominator of which is the total 1917 sales of the taxpayer everywhere during the taxable year or 1918 period. 1919 (a) As used in this subsection, the term “sales” means all 1920 gross receipts of the taxpayer except interest, dividends, 1921 rents, royalties, and gross receipts from the sale, exchange, 1922 maturity, redemption, or other disposition of securities. 1923 However: 1924 1. Rental income is included in the term if a significant 1925 portion of the taxpayer’s business consists of leasing or 1926 renting real or tangible personal property; and 1927 2. Royalty income is included in the term if a significant 1928 portion of the taxpayer’s business consists of dealing in or 1929 with the production, exploration, or development of minerals. 1930 (b)1. Sales of tangible personal property occur in this 1931 state if the property is delivered or shipped to a purchaser 1932 within this state, regardless of the f.o.b. point, other 1933 conditions of the sale, or ultimate destination of the property, 1934 unless shipment is made via a common or contract carrier. 1935 However, for industries in NAICS National Number 311411, if the 1936 ultimate destination of the product is to a location outside 1937 this state, regardless of the method of shipment or f.o.b. 1938 point, the sale shall not be deemed to occur in this state. As 1939 used in this paragraph, “NAICS” means those classifications 1940 contained in the North American Industry Classification System, 1941 as published in 2007 by the Office of Management and Budget, 1942 Executive Office of the President. 1943 2. When citrus fruit is delivered by a cooperative for a 1944 grower-member, by a grower-member to a cooperative, or by a 1945 grower-participant to a Florida processor, the sales factor for 1946 the growers for such citrus fruit delivered to such processor 1947 shall be the same as the sales factor for the most recent 1948 taxable year of that processor. That sales factor, expressed 1949 only as a percentage and not in terms of the dollar volume of 1950 sales, so as to protect the confidentiality of the sales of the 1951 processor, shall be furnished on the request of such a grower 1952 promptly after it has been determined for that taxable year. 1953 3. Reimbursement of expenses under an agency contract 1954 between a cooperative, a grower-member of a cooperative, or a 1955 grower and a processor is not a sale within this state. 1956 (c) Sales of a financial organization, including, but not 1957 limited to, banking and savings institutions, investment 1958 companies, real estate investment trusts, and brokerage 1959 companies, occur in this state if derived from: 1960 1. Fees, commissions, or other compensation for financial 1961 services rendered within this state; 1962 2. Gross profits from trading in stocks, bonds, or other 1963 securities managed within this state; 1964 3. Interest received within this state, other than interest 1965 from loans secured by mortgages, deeds of trust, or other liens 1966 upon real or tangible personal property located without this 1967 state, and dividends received within this state; 1968 4. Interest charged to customers at places of business 1969 maintained within this state for carrying debit balances of 1970 margin accounts, without deduction of any costs incurred in 1971 carrying such accounts; 1972 5. Interest, fees, commissions, or other charges or gains 1973 from loans secured by mortgages, deeds of trust, or other liens 1974 upon real or tangible personal property located in this state or 1975 from installment sale agreements originally executed by a 1976 taxpayer or the taxpayer’s agent to sell real or tangible 1977 personal property located in this state; 1978 6. Rents from real or tangible personal property located in 1979 this state; or 1980 7. Any other gross income, including other interest, 1981 resulting from the operation as a financial organization within 1982 this state. 1983 1984In computing the amounts under this paragraph, any amount1985received by a member of an affiliated group (determined under s.19861504(a) of the Internal Revenue Code, but without reference to1987whether any such corporation is an “includable corporation”1988under s. 1504(b) of the Internal Revenue Code) from another1989member of such group shall be included only to the extent such1990amount exceeds expenses of the recipient directly related1991thereto.1992 Section 31. Subsection (1) of section 220.183, Florida 1993 Statutes, is amended to read: 1994 220.183 Community contribution tax credit.— 1995 (1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX 1996 CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM 1997 SPENDING.— 1998 (a) There shall be allowed a credit of 50 percent of a 1999 community contribution against any tax due for a taxable year 2000 under this chapter. 2001 (b) No business firm shall receive more than $200,000 in 2002 annual tax credits for all approved community contributions made 2003 in any one year. 2004 (c) The total amount of tax credit which may be granted for 2005 all programs approved under this section, s. 212.08(5)(p), and 2006 s. 624.5105 is $10.5 million annually for projects that provide 2007 homeownership opportunities for low-income or very-low-income 2008 households as defined in s. 420.9071(19) and (28) and $3.5 2009 million annually for all other projects. 2010 (d) All proposals for the granting of the tax credit shall 2011 require the prior approval of the Office of Tourism, Trade, and 2012 Economic Development. 2013 (e) If the credit granted pursuant to this section is not 2014 fully used in any one year because of insufficient tax liability 2015 on the part of the business firm, the unused amount may be 2016 carried forward for a period not to exceed 5 years. The 2017 carryover credit may be used in a subsequent year when the tax 2018 imposed by this chapter for such year exceeds the credit for 2019 such year under this section after applying the other credits 2020 and unused credit carryovers in the order provided in s. 2021 220.02(8). 2022(f) A taxpayer who files a Florida consolidated return as a2023member of an affiliated group pursuant to s.220.131(1) may be2024allowed the credit on a consolidated return basis.2025 (f)(g)A taxpayer who is eligible to receive the credit 2026 provided for in s. 624.5105 is not eligible to receive the 2027 credit provided by this section. 2028 (g)(h)Notwithstanding paragraph (c), and for the 2008-2009 2029 fiscal year only, the total amount of tax credit which may be 2030 granted for all programs approved under this section, s. 2031 212.08(5)(p), and s. 624.5105 is $13 million annually for 2032 projects that provide homeownership opportunities for low-income 2033 or very-low-income households as defined in s. 420.9071(19) and 2034 (28) and $3.5 million annually for all other projects. This 2035 paragraph expires June 30, 2009. 2036 Section 32. Subsection (1) of section 220.1845, Florida 2037 Statutes, is amended to read: 2038 220.1845 Contaminated site rehabilitation tax credit.— 2039 (1) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.— 2040 (a) A credit in the amount of 50 percent of the costs of 2041 voluntary cleanup activity that is integral to site 2042 rehabilitation at the following sites is available against any 2043 tax due for a taxable year under this chapter: 2044 1. A drycleaning-solvent-contaminated site eligible for 2045 state-funded site rehabilitation under s. 376.3078(3); 2046 2. A drycleaning-solvent-contaminated site at which site 2047 rehabilitation is undertaken by the real property owner pursuant 2048 to s. 376.3078(11), if the real property owner is not also, and 2049 has never been, the owner or operator of the drycleaning 2050 facility where the contamination exists; or 2051 3. A brownfield site in a designated brownfield area under 2052 s. 376.80. 2053 (b) A tax credit applicant, or multiple tax credit 2054 applicants working jointly to clean up a single site, may not be 2055 granted more than $500,000 per year in tax credits for each site 2056 voluntarily rehabilitated. Multiple tax credit applicants shall 2057 be granted tax credits in the same proportion as their 2058 contribution to payment of cleanup costs. Subject to the same 2059 conditions and limitations as provided in this section, a 2060 municipality, county, or other tax credit applicant which 2061 voluntarily rehabilitates a site may receive not more than 2062 $500,000 per year in tax credits which it can subsequently 2063 transfer subject to the provisions in paragraph (f)(g). 2064 (c) If the credit granted under this section is not fully 2065 used in any one year because of insufficient tax liability on 2066 the part of the corporation, the unused amount may be carried 2067 forward for up to 5 years. The carryover credit may be used in a 2068 subsequent year if the tax imposed by this chapter for that year 2069 exceeds the credit for which the corporation is eligible in that 2070 year after applying the other credits and unused carryovers in 2071 the order provided by s. 220.02(8). If during the 5-year period 2072 the credit is transferred, in whole or in part, pursuant to 2073 paragraph (f)(g), each transferee has 5 years after the date of 2074 transfer to use its credit. 2075(d) A taxpayer that files a consolidated return in this2076state as a member of an affiliated group under s.220.131(1) may2077be allowed the credit on a consolidated return basis up to the2078amount of tax imposed upon the consolidated group.2079 (d)(e)A tax credit applicant that receives state-funded 2080 site rehabilitation under s. 376.3078(3) for rehabilitation of a 2081 drycleaning-solvent-contaminated site is ineligible to receive 2082 credit under this section for costs incurred by the tax credit 2083 applicant in conjunction with the rehabilitation of that site 2084 during the same time period that state-administered site 2085 rehabilitation was underway. 2086 (e)(f)The total amount of the tax credits which may be 2087 granted under this section is $2 million annually. 2088 (f)(g)1. Tax credits that may be available under this 2089 section to an entity eligible under s. 376.30781 may be 2090 transferred after a merger or acquisition to the surviving or 2091 acquiring entity and used in the same manner and with the same 2092 limitations. 2093 2. The entity or its surviving or acquiring entity as 2094 described in subparagraph 1., may transfer any unused credit in 2095 whole or in units of at least 25 percent of the remaining 2096 credit. The entity acquiring such credit may use it in the same 2097 manner and with the same limitation as described in this 2098 section. Such transferred credits may not be transferred again 2099 although they may succeed to a surviving or acquiring entity 2100 subject to the same conditions and limitations as described in 2101 this section. 2102 3. If the credit is reduced due to a determination by the 2103 Department of Environmental Protection or an examination or 2104 audit by the Department of Revenue, the tax deficiency shall be 2105 recovered from the first entity, or the surviving or acquiring 2106 entity that claimed the credit up to the amount of credit taken. 2107 Any subsequent deficiencies shall be assessed against the entity 2108 acquiring and claiming the credit, or in the case of multiple 2109 succeeding entities in the order of credit succession. 2110 (g)(h)In order to encourage completion of site 2111 rehabilitation at contaminated sites being voluntarily cleaned 2112 up and eligible for a tax credit under this section, the tax 2113 credit applicant may claim an additional 25 percent of the total 2114 cleanup costs, not to exceed $500,000, in the final year of 2115 cleanup as evidenced by the Department of Environmental 2116 Protection issuing a “No Further Action” order for that site. 2117 (h)(i)In order to encourage the construction of housing 2118 that meets the definition of affordable provided in s. 420.0004, 2119 an applicant for the tax credit may claim an additional 25 2120 percent of the total site rehabilitation costs that are eligible 2121 for tax credits under this section, not to exceed $500,000. In 2122 order to receive this additional tax credit, the applicant must 2123 provide a certification letter from the Florida Housing Finance 2124 Corporation, the local housing authority, or other governmental 2125 agency that is a party to the use agreement indicating that the 2126 construction on the brownfield site has received a certificate 2127 of occupancy and the brownfield site has a properly recorded 2128 instrument that limits the use of the property to housing that 2129 meets the definition of affordable provided in s. 420.0004. 2130 (i)(j)In order to encourage the redevelopment of a 2131 brownfield site, as defined in the brownfield site 2132 rehabilitation agreement, that is hindered by the presence of 2133 solid waste, as defined in s. 403.703, a tax credit applicant, 2134 or multiple tax credit applicants working jointly to clean up a 2135 single brownfield site, may also claim costs required to address 2136 solid waste removal as defined in this paragraph in accordance 2137 with rules of the Department of Environmental Protection. 2138 Multiple tax credit applicants shall be granted tax credits in 2139 the same proportion as each applicant’s contribution to payment 2140 of solid waste removal costs. These costs are eligible for a tax 2141 credit provided the applicant submits an affidavit stating that, 2142 after consultation with appropriate local government officials 2143 and the Department of Environmental Protection, to the best of 2144 the applicant’s knowledge according to such consultation and 2145 available historical records, the brownfield site was never 2146 operated as a permitted solid waste disposal area or was never 2147 operated for monetary compensation and the applicant submits all 2148 other documentation and certifications required by this section. 2149 Under this section, wherever reference is made to “site 2150 rehabilitation,” the Department of Environmental Protection 2151 shall instead consider whether or not the costs claimed are for 2152 solid waste removal. Tax credit applications claiming costs 2153 pursuant to this paragraph shall not be subject to the calendar 2154 year limitation and January 31 annual application deadline, and 2155 the Department of Environmental Protection shall accept a one 2156 time application filed subsequent to the completion by the tax 2157 credit applicant of the applicable requirements listed in this 2158 section. A tax credit applicant may claim 50 percent of the cost 2159 for solid waste removal, not to exceed $500,000, after the 2160 applicant has determined solid waste removal is completed for 2161 the brownfield site. A solid waste removal tax credit 2162 application may be filed only once per brownfield site. For the 2163 purposes of this section, the term: 2164 1. “Solid waste disposal area” means a landfill, dump, or 2165 other area where solid waste has been disposed of. 2166 2. “Monetary compensation” means the fees that were charged 2167 or the assessments that were levied for the disposal of solid 2168 waste at a solid waste disposal area. 2169 3. “Solid waste removal” means removal of solid waste from 2170 the land surface or excavation of solid waste from below the 2171 land surface and removal of the solid waste from the brownfield 2172 site. The term also includes: 2173 a. Transportation of solid waste to a licensed or exempt 2174 solid waste management facility or to a temporary storage area. 2175 b. Sorting or screening of solid waste prior to removal 2176 from the site. 2177 c. Deposition of solid waste at a permitted or exempt solid 2178 waste management facility, whether the solid waste is disposed 2179 of or recycled. 2180 (j)(k)In order to encourage the construction and operation 2181 of a new health care facility as defined in s. 408.032 or s. 2182 408.07, or a health care provider as defined in s. 408.07 or s. 2183 408.7056, on a brownfield site, an applicant for a tax credit 2184 may claim an additional 25 percent of the total site 2185 rehabilitation costs, not to exceed $500,000, if the applicant 2186 meets the requirements of this paragraph. In order to receive 2187 this additional tax credit, the applicant must provide 2188 documentation indicating that the construction of the health 2189 care facility or health care provider by the applicant on the 2190 brownfield site has received a certificate of occupancy or a 2191 license or certificate has been issued for the operation of the 2192 health care facility or health care provider. 2193 Section 33. Effective January 1, 2011, subsection (1) of 2194 section 220.1845, Florida Statutes, as amended by this act, and 2195 subsection (3) of that section, are amended to read: 2196 220.1845 Contaminated site rehabilitation tax credit.— 2197 (1) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.— 2198 (a) A credit in the amount of 50 percent of the costs of 2199 voluntary cleanup activity that is integral to site 2200 rehabilitation at the following sites is available against any 2201 tax due for a taxable year under this chapter: 2202 1. A drycleaning-solvent-contaminated site eligible for 2203 state-funded site rehabilitation under s. 376.3078(3); 2204 2. A drycleaning-solvent-contaminated site at which site 2205 rehabilitation is undertaken by the real property owner pursuant 2206 to s. 376.3078(11), if the real property owner is not also, and 2207 has never been, the owner or operator of the drycleaning 2208 facility where the contamination exists; or 2209 3. A brownfield site in a designated brownfield area under 2210 s. 376.80. 2211 (b) A tax credit applicant, or multiple tax credit 2212 applicants working jointly to clean up a single site, may not be 2213 granted more than $500,000 per year in tax credits for each site 2214 voluntarily rehabilitated. Multiple tax credit applicants shall 2215 be granted tax credits in the same proportion as their 2216 contribution to payment of cleanup costs. Subject to the same 2217 conditions and limitations as provided in this section, a 2218 municipality, county, or other tax credit applicant which 2219 voluntarily rehabilitates a site may receive not more than 2220 $500,000 per year in tax credits which it can subsequently 2221 transfer subject to the provisions in paragraph (g)(f). 2222 (c) If the credit granted under this section is not fully 2223 used in any one year because of insufficient tax liability on 2224 the part of the corporation, the unused amount may be carried 2225 forward for up to 5 years. The carryover credit may be used in a 2226 subsequent year if the tax imposed by this chapter for that year 2227 exceeds the credit for which the corporation is eligible in that 2228 year after applying the other credits and unused carryovers in 2229 the order provided by s. 220.02(8). If during the 5-year period 2230 the credit is transferred, in whole or in part, pursuant to 2231 paragraph (g)(f), each transferee has 5 years after the date of 2232 transfer to use its credit. 2233 (d) A taxpayer that receives credit under s. 199.10555 is 2234 ineligible to receive credit under this section in a given tax 2235 year. 2236 (e)(d)A tax credit applicant that receives state-funded 2237 site rehabilitation under s. 376.3078(3) for rehabilitation of a 2238 drycleaning-solvent-contaminated site is ineligible to receive 2239 credit under this section for costs incurred by the tax credit 2240 applicant in conjunction with the rehabilitation of that site 2241 during the same time period that state-administered site 2242 rehabilitation was underway. 2243 (f)(e)The total amount of the tax credits which may be 2244 granted under this section and s. 199.10555 is $2 million 2245 annually. 2246 (g)(f)1. Tax credits that may be available under this 2247 section to an entity eligible under s. 376.30781 may be 2248 transferred after a merger or acquisition to the surviving or 2249 acquiring entity and used in the same manner and with the same 2250 limitations. 2251 2. The entity or its surviving or acquiring entity as 2252 described in subparagraph 1., may transfer any unused credit in 2253 whole or in units of at least 25 percent of the remaining 2254 credit. The entity acquiring such credit may use it in the same 2255 manner and with the same limitation as described in this 2256 section. Such transferred credits may not be transferred again 2257 although they may succeed to a surviving or acquiring entity 2258 subject to the same conditions and limitations as described in 2259 this section. 2260 3. If the credit is reduced due to a determination by the 2261 Department of Environmental Protection or an examination or 2262 audit by the Department of Revenue, the tax deficiency shall be 2263 recovered from the first entity, or the surviving or acquiring 2264 entity that claimed the credit up to the amount of credit taken. 2265 Any subsequent deficiencies shall be assessed against the entity 2266 acquiring and claiming the credit, or in the case of multiple 2267 succeeding entities in the order of credit succession. 2268 (h)(g)In order to encourage completion of site 2269 rehabilitation at contaminated sites being voluntarily cleaned 2270 up and eligible for a tax credit under this section, the tax 2271 credit applicant may claim an additional 25 percent of the total 2272 cleanup costs, not to exceed $500,000, in the final year of 2273 cleanup as evidenced by the Department of Environmental 2274 Protection issuing a “No Further Action” order for that site. 2275 (i)(h)In order to encourage the construction of housing 2276 that meets the definition of affordable provided in s. 420.0004, 2277 an applicant for the tax credit may claim an additional 25 2278 percent of the total site rehabilitation costs that are eligible 2279 for tax credits under this section, not to exceed $500,000. In 2280 order to receive this additional tax credit, the applicant must 2281 provide a certification letter from the Florida Housing Finance 2282 Corporation, the local housing authority, or other governmental 2283 agency that is a party to the use agreement indicating that the 2284 construction on the brownfield site has received a certificate 2285 of occupancy and the brownfield site has a properly recorded 2286 instrument that limits the use of the property to housing that 2287 meets the definition of affordable provided in s. 420.0004. 2288 (j)(i)In order to encourage the redevelopment of a 2289 brownfield site, as defined in the brownfield site 2290 rehabilitation agreement, that is hindered by the presence of 2291 solid waste, as defined in s. 403.703, a tax credit applicant, 2292 or multiple tax credit applicants working jointly to clean up a 2293 single brownfield site, may also claim costs required to address 2294 solid waste removal as defined in this paragraph in accordance 2295 with rules of the Department of Environmental Protection. 2296 Multiple tax credit applicants shall be granted tax credits in 2297 the same proportion as each applicant’s contribution to payment 2298 of solid waste removal costs. These costs are eligible for a tax 2299 credit provided the applicant submits an affidavit stating that, 2300 after consultation with appropriate local government officials 2301 and the Department of Environmental Protection, to the best of 2302 the applicant’s knowledge according to such consultation and 2303 available historical records, the brownfield site was never 2304 operated as a permitted solid waste disposal area or was never 2305 operated for monetary compensation and the applicant submits all 2306 other documentation and certifications required by this section. 2307 Under this section, wherever reference is made to “site 2308 rehabilitation,” the Department of Environmental Protection 2309 shall instead consider whether or not the costs claimed are for 2310 solid waste removal. Tax credit applications claiming costs 2311 pursuant to this paragraph shall not be subject to the calendar 2312 year limitation and January 31 annual application deadline, and 2313 the Department of Environmental Protection shall accept a one 2314 time application filed subsequent to the completion by the tax 2315 credit applicant of the applicable requirements listed in this 2316 section. A tax credit applicant may claim 50 percent of the cost 2317 for solid waste removal, not to exceed $500,000, after the 2318 applicant has determined solid waste removal is completed for 2319 the brownfield site. A solid waste removal tax credit 2320 application may be filed only once per brownfield site. For the 2321 purposes of this section, the term: 2322 1. “Solid waste disposal area” means a landfill, dump, or 2323 other area where solid waste has been disposed of. 2324 2. “Monetary compensation” means the fees that were charged 2325 or the assessments that were levied for the disposal of solid 2326 waste at a solid waste disposal area. 2327 3. “Solid waste removal” means removal of solid waste from 2328 the land surface or excavation of solid waste from below the 2329 land surface and removal of the solid waste from the brownfield 2330 site. The term also includes: 2331 a. Transportation of solid waste to a licensed or exempt 2332 solid waste management facility or to a temporary storage area. 2333 b. Sorting or screening of solid waste prior to removal 2334 from the site. 2335 c. Deposition of solid waste at a permitted or exempt solid 2336 waste management facility, whether the solid waste is disposed 2337 of or recycled. 2338 (k)(j)In order to encourage the construction and operation 2339 of a new health care facility as defined in s. 408.032 or s. 2340 408.07, or a health care provider as defined in s. 408.07 or s. 2341 408.7056, on a brownfield site, an applicant for a tax credit 2342 may claim an additional 25 percent of the total site 2343 rehabilitation costs, not to exceed $500,000, if the applicant 2344 meets the requirements of this paragraph. In order to receive 2345 this additional tax credit, the applicant must provide 2346 documentation indicating that the construction of the health 2347 care facility or health care provider by the applicant on the 2348 brownfield site has received a certificate of occupancy or a 2349 license or certificate has been issued for the operation of the 2350 health care facility or health care provider. 2351 (3) ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT 2352 FORFEITURE.— 2353 (a) The Department of Revenue may adopt rules to prescribe 2354 any necessary forms required to claim a tax credit under this 2355 section and to provide the administrative guidelines and 2356 procedures required to administer this section. 2357 (b) In addition to its existing audit and investigation 2358 authority relating to chapter 199 and this chapter, the 2359 Department of Revenue may perform any additional financial and 2360 technical audits and investigations, including examining the 2361 accounts, books, or records of the tax credit applicant, which 2362 are necessary to verify the site rehabilitation costs included 2363 in a tax credit return and to ensure compliance with this 2364 section. The Department of Environmental Protection shall 2365 provide technical assistance, when requested by the Department 2366 of Revenue, on any technical audits performed pursuant to this 2367 section. 2368 (c) It is grounds for forfeiture of previously claimed and 2369 received tax credits if the Department of Revenue determines, as 2370 a result of either an audit or information received from the 2371 Department of Environmental Protection, that a taxpayer received 2372 tax credits pursuant to this section to which the taxpayer was 2373 not entitled. In the case of fraud, the taxpayer shall be 2374 prohibited from claiming any future tax credits under this 2375 section or s. 199.10555. 2376 1. The taxpayer is responsible for returning forfeited tax 2377 credits to the Department of Revenue, and such funds shall be 2378 paid into the General Revenue Fund of the state. 2379 2. The taxpayer shall file with the Department of Revenue 2380 an amended tax return or such other report as the Department of 2381 Revenue prescribes by rule and shall pay any required tax within 2382 60 days after the taxpayer receives notification from the 2383 Department of Environmental Protection pursuant to s. 376.30781 2384 that previously approved tax credits have been revoked or 2385 modified, if uncontested, or within 60 days after a final order 2386 is issued following proceedings involving a contested revocation 2387 or modification order. 2388 3. A notice of deficiency may be issued by the Department 2389 of Revenue at any time within 5 years after the date the 2390 taxpayer receives notification from the Department of 2391 Environmental Protection pursuant to s. 376.30781 that 2392 previously approved tax credits have been revoked or modified. 2393 If a taxpayer fails to notify the Department of Revenue of any 2394 change in its tax credit claimed, a notice of deficiency may be 2395 issued at any time. In either case, the amount of any proposed 2396 assessment set forth in such notice of deficiency shall be 2397 limited to the amount of any deficiency resulting under this 2398 section from the recomputation of the taxpayer’s tax for the 2399 taxable year. 2400 4. Any taxpayer that fails to report and timely pay any tax 2401 due as a result of the forfeiture of its tax credit is in 2402 violation of this section and is subject to applicable penalty 2403 and interest. 2404 Section 34. Subsection (5) of section 220.187, Florida 2405 Statutes, is amended to read: 2406 220.187 Credits for contributions to nonprofit scholarship 2407 funding organizations.— 2408 (5) AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX CREDITS; 2409 LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.— 2410 (a) There is allowed a credit of 100 percent of an eligible 2411 contribution against any tax due for a taxable year under this 2412 chapter. However, such a credit may not exceed 75 percent of the 2413 tax due under this chapter for the taxable year, after the 2414 application of any other allowable credits by the taxpayer. The 2415 credit granted by this section shall be reduced by the 2416 difference between the amount of federal corporate income tax 2417 taking into account the credit granted by this section and the 2418 amount of federal corporate income tax without application of 2419 the credit granted by this section. 2420 (b) For each state fiscal year, the total amount of tax 2421 credits and carryforward of tax credits which may be granted 2422 under this section and s. 624.51055 is $118 million. 2423(c) A taxpayer who files a Florida consolidated return as a2424member of an affiliated group pursuant to s.220.131(1) may be2425allowed the credit on a consolidated return basis; however, the2426total credit taken by the affiliated group is subject to the2427limitation established under paragraph (a).2428 (c)(d)Effective for tax years beginning January 1, 2006, a 2429 taxpayer may rescind all or part of its allocated tax credit 2430 under this section. The amount rescinded shall become available 2431 for purposes of the cap for that state fiscal year under this 2432 section to an eligible taxpayer as approved by the department if 2433 the taxpayer receives notice from the department that the 2434 rescindment has been accepted by the department and the taxpayer 2435 has not previously rescinded any or all of its tax credit 2436 allocation under this section more than once in the previous 3 2437 tax years. Any amount rescinded under this paragraph shall 2438 become available to an eligible taxpayer on a first-come, first 2439 served basis based on tax credit applications received after the 2440 date the rescindment is accepted by the department. 2441 (d)(e)A taxpayer who is eligible to receive the credit 2442 provided for in s. 624.51055 is not eligible to receive the 2443 credit provided by this section. 2444 Section 35. Subsection (3) of section 220.191, Florida 2445 Statutes, is amended to read: 2446 220.191 Capital investment tax credit.— 2447 (3)(a) Notwithstanding subsection (2), an annual credit 2448 against the tax imposed by this chapter shall be granted to a 2449 qualifying business which establishes a qualifying project 2450 pursuant to subparagraph (1)(h)3., in an amount equal to the 2451 lesser of $15 million or 5 percent of the eligible capital costs 2452 made in connection with a qualifying project, for a period not 2453 to exceed 20 years beginning with the commencement of operations 2454 of the project. The tax credit shall be granted against the 2455 corporate income tax liability of the qualifying business and as 2456 further provided in paragraph (c). The total tax credit provided 2457 pursuant to this subsection shall be equal to no more than 100 2458 percent of the eligible capital costs of the qualifying project. 2459 (b) If the credit granted under this subsection is not 2460 fully used in any one year because of insufficient tax liability 2461 on the part of the qualifying business, the unused amount may be 2462 carried forward for a period not to exceed 20 years after the 2463 commencement of operations of the project. The carryover credit 2464 may be used in a subsequent year when the tax imposed by this 2465 chapter for that year exceeds the credit for which the 2466 qualifying business is eligible in that year under this 2467 subsection after applying the other credits and unused 2468 carryovers in the order provided by s. 220.02(8). 2469 (c) The credit granted under this subsection may be used in 2470 whole or in part by the qualifying businessor any corporation2471that is either a member of that qualifying business’s affiliated2472group of corporations, is a related entity taxable as a2473cooperative under subchapter T of the Internal Revenue Code, or,2474if the qualifying business is an entity taxable as a cooperative2475under subchapter T of the Internal Revenue Code, is related to2476the qualifying business.Any entity related to the qualifying2477business may continue to file as a member of a Florida-nexus2478consolidated group pursuant to a prior election made under s.2479220.131(1), Florida Statutes (1985), even if the parent of the2480group changes due to a direct or indirect acquisition of the2481former common parent of the group. Any credit can be used by any2482of the affiliated companies or related entities referenced in2483this paragraph to the same extent as it could have been used by2484the qualifying business. However, any such use shall not operate2485to increase the amount of the credit or extend the period within2486which the credit must be used.2487 Section 36. Subsection (2) of section 220.192, Florida 2488 Statutes, is amended to read: 2489 220.192 Renewable energy technologies investment tax 2490 credit.— 2491 (2) TAX CREDIT.—For tax years beginning on or after January 2492 1, 2007, a credit against the tax imposed by this chapter shall 2493 be granted in an amount equal to the eligible costs. Credits may 2494 be used in tax years beginning January 1, 2007, and ending 2495 December 31, 2010, after which the credit shall expire. If the 2496 credit is not fully used in any one tax year because of 2497 insufficient tax liability on the part of the corporation, the 2498 unused amount may be carried forward and used in tax years 2499 beginning January 1, 2007, and ending December 31, 2012, after 2500 which the credit carryover expires and may not be used.A2501taxpayer that files a consolidated return in this state as a2502member of an affiliated group under s.220.131(1) may be allowed2503the credit on a consolidated return basis up to the amount of2504tax imposed upon the consolidated group.Any eligible cost for 2505 which a credit is claimed and which is deducted or otherwise 2506 reduces federal taxable income shall be added back in computing 2507 adjusted federal income under s. 220.13. 2508 Section 37. Subsection (3) of section 220.193, Florida 2509 Statutes, is amended to read: 2510 220.193 Florida renewable energy production credit.— 2511 (3) An annual credit against the tax imposed by this 2512 section shall be allowed to a taxpayer, based on the taxpayer’s 2513 production and sale of electricity from a new or expanded 2514 Florida renewable energy facility. For a new facility, the 2515 credit shall be based on the taxpayer’s sale of the facility’s 2516 entire electrical production. For an expanded facility, the 2517 credit shall be based on the increases in the facility’s 2518 electrical production that are achieved after May 1, 2006. 2519 (a) The credit shall be $0.01 for each kilowatt-hour of 2520 electricity produced and sold by the taxpayer to an unrelated 2521 party during a given tax year. 2522 (b) The credit may be claimed for electricity produced and 2523 sold on or after January 1, 2007. Beginning in 2008 and 2524 continuing until 2011, each taxpayer claiming a credit under 2525 this section must first apply to the department by February 1 of 2526 each year for an allocation of available credit. The department, 2527 in consultation with the commission, shall develop an 2528 application form. The application form shall, at a minimum, 2529 require a sworn affidavit from each taxpayer certifying the 2530 increase in production and sales that form the basis of the 2531 application and certifying that all information contained in the 2532 application is true and correct. 2533 (c) If the amount of credits applied for each year exceeds 2534 $5 million, the department shall award to each applicant a 2535 prorated amount based on each applicant’s increased production 2536 and sales and the increased production and sales of all 2537 applicants. 2538 (d) If the credit granted pursuant to this section is not 2539 fully used in one year because of insufficient tax liability on 2540 the part of the taxpayer, the unused amount may be carried 2541 forward for a period not to exceed 5 years. The carryover credit 2542 may be used in a subsequent year when the tax imposed by this 2543 chapter for such year exceeds the credit for such year, after 2544 applying the other credits and unused credit carryovers in the 2545 order provided in s. 220.02(8). 2546(e) A taxpayer that files a consolidated return in this2547state as a member of an affiliated group under s.220.131(1) may2548be allowed the credit on a consolidated return basis up to the2549amount of tax imposed upon the consolidated group.2550 (e)(f)1. Tax credits that may be available under this 2551 section to an entity eligible under this section may be 2552 transferred after a merger or acquisition to the surviving or 2553 acquiring entity and used in the same manner with the same 2554 limitations. 2555 2. The entity or its surviving or acquiring entity as 2556 described in subparagraph 1. may transfer any unused credit in 2557 whole or in units of no less than 25 percent of the remaining 2558 credit. The entity acquiring such credit may use it in the same 2559 manner and with the same limitations under this section. Such 2560 transferred credits may not be transferred again although they 2561 may succeed to a surviving or acquiring entity subject to the 2562 same conditions and limitations as described in this section. 2563 3. In the event the credit provided for under this section 2564 is reduced as a result of an examination or audit by the 2565 department, such tax deficiency shall be recovered from the 2566 first entity or the surviving or acquiring entity to have 2567 claimed such credit up to the amount of credit taken. Any 2568 subsequent deficiencies shall be assessed against any entity 2569 acquiring and claiming such credit, or in the case of multiple 2570 succeeding entities in the order of credit succession. 2571 (f)(g)Notwithstanding any other provision of this section, 2572 credits for the production and sale of electricity from a new or 2573 expanded Florida renewable energy facility may be earned between 2574 January 1, 2007, and June 30, 2010. The combined total amount of 2575 tax credits which may be granted for all taxpayers under this 2576 section is limited to $5 million per state fiscal year. 2577 (g)(h)A taxpayer claiming a credit under this section 2578 shall be required to add back to net income that portion of its 2579 business deductions claimed on its federal return paid or 2580 incurred for the taxable year which is equal to the amount of 2581 the credit allowable for the taxable year under this section. 2582 (h)(i)A taxpayer claiming credit under this section may 2583 not claim a credit under s. 220.192. A taxpayer claiming credit 2584 under s. 220.192 may not claim a credit under this section. 2585 (i)(j)When an entity treated as a partnership or a 2586 disregarded entity under this chapter produces and sells 2587 electricity from a new or expanded renewable energy facility, 2588 the credit earned by such entity shall pass through in the same 2589 manner as items of income and expense pass through for federal 2590 income tax purposes. When an entity applies for the credit and 2591 the entity has received the credit by a pass-through, the 2592 application must identify the taxpayer that passed the credit 2593 through, all taxpayers that received the credit, and the 2594 percentage of the credit that passes through to each recipient 2595 and must provide other information that the department requires. 2596 (j)(k)A taxpayer’s use of the credit granted pursuant to 2597 this section does not reduce the amount of any credit available 2598 to such taxpayer under s. 220.186. 2599 Section 38. Section 220.51, Florida Statutes, is amended to 2600 read: 2601 220.51 Promulgation of rules and regulations.—In accordance 2602 with the Administrative Procedure Act, chapter 120, the 2603 department is authorized to make, promulgate, and enforce such 2604 reasonable rules and regulations, and to prescribe such forms 2605 relating to the administration and enforcement of the provisions 2606 of this code, as it may deem appropriate, including: 2607 (1) Rules for initial implementation of this code and for 2608 taxpayers’ transitional taxable years commencing before and 2609 ending after January 1, 1972; and 2610 (2) Rules or regulations to clarify whether certain groups, 2611 organizations, or associations formed under the laws of this 2612 state or any other state, country, or jurisdiction shall be 2613 deemed “taxpayers” for the purposes of this code, in accordance 2614 with the legislative declarations of intent in s. 220.02.; and2615(3) Regulations relating to consolidated reporting for2616affiliated groups of corporations, in order to provide for an2617equitable and just administration of this code with respect to2618multicorporate taxpayers.2619 Section 39. Section 220.64, Florida Statutes, is amended to 2620 read: 2621 220.64 Other provisions applicable to franchise tax.—To the 2622 extent that they are not manifestly incompatible with the 2623 provisions of this part, parts I, III, IV, V, VI, VIII, IX, and 2624 X of this code and ss. 220.12, 220.13, 220.136, 220.1363, 2625 220.15, and 220.16ss.220.12,220.13,220.15, and220.16apply 2626 to the franchise tax imposed by this part. Under rules 2627 prescribed in s. 220.131, a consolidated return may be filed by 2628 any affiliated group of corporations composed of one or more 2629 banks or savings associations, its or their Florida parent 2630 corporation, and any nonbank or nonsavings subsidiaries of such 2631 parent corporation. 2632 Section 40. Subsections (9) and (10) of section 376.30781, 2633 Florida Statutes, are amended to read: 2634 376.30781 Tax credits for rehabilitation of drycleaning 2635 solvent-contaminated sites and brownfield sites in designated 2636 brownfield areas; application process; rulemaking authority; 2637 revocation authority.— 2638 (9) On or before May 1, the Department of Environmental 2639 Protection shall inform each tax credit applicant that is 2640 subject to the January 31 annual application deadline of the 2641 applicant’s eligibility status and the amount of any tax credit 2642 due. The department shall provide each eligible tax credit 2643 applicant with a tax credit certificate that must be submitted 2644 with its tax return to the Department of Revenue to claim the 2645 tax credit or be transferred pursuant to s. 220.1845(1)(f)(g). 2646 The May 1 deadline for annual site rehabilitation tax credit 2647 certificate awards shall not apply to any tax credit application 2648 for which the department has issued a notice of deficiency 2649 pursuant to subsection (8). The department shall respond within 2650 90 days after receiving a response from the tax credit applicant 2651 to such a notice of deficiency. Credits may not result in the 2652 payment of refunds if total credits exceed the amount of tax 2653 owed. 2654 (10) For solid waste removal, new health care facility or 2655 health care provider, and affordable housing tax credit 2656 applications, the Department of Environmental Protection shall 2657 inform the applicant of the department’s determination within 90 2658 days after the application is deemed complete. Each eligible tax 2659 credit applicant shall be informed of the amount of its tax 2660 credit and provided with a tax credit certificate that must be 2661 submitted with its tax return to the Department of Revenue to 2662 claim the tax credit or be transferred pursuant to s. 2663 220.1845(1)(f)(g). Credits may not result in the payment of 2664 refunds if total credits exceed the amount of tax owed. 2665 Section 41. Effective January 1, 2011, paragraph (a) of 2666 subsection (3), subsection (4), and paragraph (a) of subsection 2667 (14) of section 376.30781, Florida Statutes, are amended, and 2668 subsections (9) and (10) of that section, as amended by this 2669 act, are amended, to read: 2670 376.30781 Tax credits for rehabilitation of drycleaning 2671 solvent-contaminated sites and brownfield sites in designated 2672 brownfield areas; application process; rulemaking authority; 2673 revocation authority.— 2674 (3)(a) A credit in the amount of 50 percent of the costs of 2675 voluntary cleanup activity that is integral to site 2676 rehabilitation at the following sites is allowed pursuant to ss. 2677 199.10555 ands.220.1845: 2678 1. A drycleaning-solvent-contaminated site eligible for 2679 state-funded site rehabilitation under s. 376.3078(3); 2680 2. A drycleaning-solvent-contaminated site at which site 2681 rehabilitation is undertaken by the real property owner pursuant 2682 to s. 376.3078(11), if the real property owner is not also, and 2683 has never been, the owner or operator of the drycleaning 2684 facility where the contamination exists; or 2685 3. A brownfield site in a designated brownfield area under 2686 s. 376.80. 2687 (4) The Department of Environmental Protection is 2688 responsible for allocating the tax credits provided for in ss. 2689 199.10555 ands.220.1845, which may not exceed a total of $2 2690 million in tax credits annually. 2691 (9) On or before May 1, the Department of Environmental 2692 Protection shall inform each tax credit applicant that is 2693 subject to the January 31 annual application deadline of the 2694 applicant’s eligibility status and the amount of any tax credit 2695 due. The department shall provide each eligible tax credit 2696 applicant with a tax credit certificate that must be submitted 2697 with its tax return to the Department of Revenue to claim the 2698 tax credit or be transferred pursuant to s. 199.10555(1)(g) or 2699 s. 220.1845(1)(g)(f). The May 1 deadline for annual site 2700 rehabilitation tax credit certificate awards shall not apply to 2701 any tax credit application for which the department has issued a 2702 notice of deficiency pursuant to subsection (8). The department 2703 shall respond within 90 days after receiving a response from the 2704 tax credit applicant to such a notice of deficiency. Credits may 2705 not result in the payment of refunds if total credits exceed the 2706 amount of tax owed. 2707 (10) For solid waste removal, new health care facility or 2708 health care provider, and affordable housing tax credit 2709 applications, the Department of Environmental Protection shall 2710 inform the applicant of the department’s determination within 90 2711 days after the application is deemed complete. Each eligible tax 2712 credit applicant shall be informed of the amount of its tax 2713 credit and provided with a tax credit certificate that must be 2714 submitted with its tax return to the Department of Revenue to 2715 claim the tax credit or be transferred pursuant to s. 2716 199.10555(1)(g) or s. 220.1845(1)(g)(f). Credits may not result 2717 in the payment of refunds if total credits exceed the amount of 2718 tax owed. 2719 (14)(a) A tax credit applicant who receives state-funded 2720 site rehabilitation under s. 376.3078(3) for rehabilitation of a 2721 drycleaning-solvent-contaminated site is ineligible to receive a 2722 tax credit under s. 199.10555 or s. 220.1845 for costs incurred 2723 by the tax credit applicant in conjunction with the 2724 rehabilitation of that site during the same time period that 2725 state-administered site rehabilitation was underway. 2726 Section 42. Transitional rules.— 2727 (1) For the first tax year beginning on or after January 1, 2728 2011, a taxpayer that filed a Florida corporate income tax 2729 return in the preceding tax year and is a member of a water’s 2730 edge group shall compute its income together with all members of 2731 its water’s edge group and file a combined Florida corporate 2732 income tax return with all members of its water’s edge group. 2733 (2) An affiliated group of corporations that filed a 2734 Florida consolidated corporate income tax return pursuant to an 2735 election provided in s. 220.131, Florida Statutes, shall cease 2736 filing a Florida consolidated return for tax years beginning on 2737 or after January 1, 2011, and shall file a combined Florida 2738 corporate income tax return with all members of its water’s edge 2739 group. 2740 (3) An affiliated group of corporations that filed a 2741 Florida consolidated corporate income tax return pursuant to the 2742 election in s. 220.131(1), Florida Statutes (1985), which 2743 allowed the affiliated group to make an election within 90 days 2744 after December 20, 1984, or upon filing the taxpayer’s first 2745 return after December 20, 1984, whichever is later, shall cease 2746 filing a Florida consolidated corporate income tax return using 2747 that method for tax years beginning on or after January 1, 2011, 2748 and shall file a combined Florida corporate income tax return 2749 with all members of its water’s edge group. 2750 (4) Taxpayers that are not members of a water’s edge group 2751 remain subject to chapter 220, Florida Statutes, and shall file 2752 a separate Florida corporate income tax return as previously 2753 required. 2754 (5) For the tax years beginning on or after January 1, 2755 2011, a tax return for a member of a water’s edge group must be 2756 a combined Florida corporate income tax return that includes tax 2757 information for all members of the water’s edge group. The tax 2758 return must be filed by a member that has a nexus with this 2759 state. 2760 Section 43. Of the funds recaptured pursuant to this act, 2761 the sum of $50 million is appropriated from the General Revenue 2762 Fund to the State University System for workforce education, to 2763 be allocated by the Board of Governors; the sum of $50 million 2764 is appropriated from the General Revenue Fund to community 2765 colleges for workforce education, to be allocated by the State 2766 Board of Education; and the remainder of such funds, as 2767 determined by the Revenue Estimating Conference, shall be 2768 appropriated from the General Revenue Fund and allocated as 2769 provided in the General Appropriations Act to the various school 2770 districts to reduce the required local effort millage. 2771 Section 44. Section 220.131, Florida Statutes, is repealed. 2772 Section 45. (1) The funds provided from the implementation 2773 of this act shall be deposited annually into the Educational 2774 Enhancement Trust Fund and appropriated from the fund as 2775 follows: 2776 (a) Twenty-five percent to the Board of Governors of the 2777 State University System for allocation to state universities. 2778 (b) Twenty-five percent to the Department of Education for 2779 allocation to community colleges. 2780 (c) Twenty-five percent to the Department of Education for 2781 allocation to school districts for K-12 education. 2782 (d) Twenty-five percent to the Agency for Workforce 2783 Innovation for allocation to early learning coalitions under the 2784 Voluntary Prekindergarten Education Program. 2785 (2) It is the intent of the Legislature that the revenue 2786 generated from collections derived from the Millionaire’s Tax 2787 Act shall be used specifically for enhancements to higher 2788 education, K-12 education, and prekindergarten education in this 2789 state and shall not supplant any general revenue appropriations 2790 for such higher education, K-12 education, and prekindergarten 2791 education. 2792 (3) Each entity allocated funds pursuant to this section 2793 shall determine how best to expend the additional enhancement 2794 funds appropriated to such entity pursuant to this section. 2795 Section 46. Except as otherwise expressly provided in this 2796 act, this act shall take effect July 1, 2010.
