Bill Text: FL S1590 | 2012 | Regular Session | Introduced
Bill Title: Corporate Income Tax
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Failed) 2012-03-09 - Died in Commerce and Tourism [S1590 Detail]
Download: Florida-2012-S1590-Introduced.html
Florida Senate - 2012 SB 1590 By Senator Rich 34-00945-12 20121590__ 1 A bill to be entitled 2 An act relating to the corporate income tax; providing 3 legislative findings and intent; amending s. 220.03, 4 F.S.; revising a definition; defining the terms “tax 5 haven” and “water’s edge group”; amending s. 220.13, 6 F.S.; conforming cross-references; redefining the term 7 “adjusted federal income” to limit the subtraction of 8 certain deductions and certain carryovers; requiring 9 the subtraction of certain dividends from taxable 10 income; creating s. 220.136, F.S.; providing rules and 11 criteria to determine if a corporation is a member of 12 a water’s edge group; creating s. 220.1363, F.S.; 13 providing a reporting method for a water’s edge group; 14 providing for the apportionment of income to the 15 state; requiring a member of a water’s edge group 16 having nexus with this state to file a single return 17 for the water’s edge group; providing for the 18 determination of income for a member of a water’s edge 19 group having a different tax year than the water’s 20 edge group; requiring a water’s edge group return to 21 include a computational schedule; requiring a water’s 22 edge group to file a domestic disclosure spreadsheet 23 along with its return; authorizing the Department of 24 Revenue to adopt rules; amending s. 220.14, F.S.; 25 providing for the proration of an exemption during a 26 leap year; limiting a water’s edge group to a single 27 claim of a specified exemption; amending s. 220.15, 28 F.S.; revising criteria applicable to determining 29 whether a sale of tangible personal property occurs in 30 this state; deleting provisions relating to affiliated 31 groups with respect to certain sales of a financial 32 institution; amending s. 220.183, F.S.; deleting 33 provisions relating to affiliated groups with respect 34 to community contribution tax credits; amending s. 35 220.1845, F.S.; deleting provisions relating to 36 affiliated groups with respect to the contaminated 37 site rehabilitation tax credit; amending s. 220.1875, 38 F.S.; deleting provisions relating to affiliated 39 groups with respect to tax credits for contributions 40 to eligible nonprofit scholarship-funding 41 organizations; amending s. 220.191, F.S.; deleting 42 provisions relating to affiliated groups with respect 43 to the capital investment tax credit; amending s. 44 220.192, F.S.; deleting provisions relating to 45 affiliated groups with respect to the renewable energy 46 technologies investment tax credit; amending s. 47 220.193, F.S.; deleting provisions relating to 48 affiliated groups with respect to the Florida 49 renewable energy production tax credit; amending s. 50 220.51, F.S.; deleting provisions relating to the 51 rulemaking authority of the Department of Revenue with 52 respect to consolidated reporting for affiliated 53 groups; amending s. 220.64, F.S.; conforming cross 54 references; deleting provisions relating to the filing 55 of consolidated returns by affiliated groups of 56 corporations composed of banks or savings 57 associations, their parent corporations, and certain 58 subsidiaries of the parent corporation; amending s. 59 288.1254, F.S.; deleting provisions relating to 60 affiliated groups with respect to tax credits awarded 61 under the entertainment industry financial incentive 62 program; amending s. 376.30781, F.S.; conforming 63 cross-references; amending s. 627.6699, F.S.; 64 conforming a provision to changes made by the act; 65 providing transitional rules for corporate income tax 66 returns filed by water’s edge groups and affiliated 67 groups of corporations; specifying the allocation of 68 funds that are recaptured under the act; repealing s. 69 220.131, F.S., relating to adjusted federal income for 70 affiliated groups; providing an effective date. 71 72 Be It Enacted by the Legislature of the State of Florida: 73 74 Section 1. Legislative findings and intent.—The Legislature 75 finds that the separate accounting system used to measure the 76 income of multistate and multinational corporations for tax 77 purposes often places Florida corporations at a competitive 78 disadvantage. Moreover, corporate business is increasingly 79 conducted through groups of commonly owned corporations. 80 Therefore, the Legislature intends to more accurately measure 81 the business activities of corporations by adopting a combined 82 system of income tax reporting. 83 Section 2. Paragraph (z) of subsection (1) of section 84 220.03, Florida Statutes, is amended, and paragraphs (gg) and 85 (hh) are added to that subsection, to read: 86 220.03 Definitions.— 87 (1) SPECIFIC TERMS.—When used in this code, and when not 88 otherwise distinctly expressed or manifestly incompatible with 89 the intent thereof, the following terms shall have the following 90 meanings: 91 (z) “Taxpayer” means any corporation subject to the tax 92 imposed by this code, and includes all corporations that are 93 members of a water’s edge groupfor which a consolidated return94is filed under s.220.131. However, “taxpayer” does not include 95 a corporation having no individuals (including individuals 96 employed by an affiliate) receiving compensation in this state 97 as defined in s. 220.15 when the only property owned or leased 98 by said corporation (including an affiliate) in this state is 99 located at the premises of a printer with which it has 100 contracted for printing, if such property consists of the final 101 printed product, property which becomes a part of the final 102 printed product, or property from which the printed product is 103 produced. 104 (gg) “Tax haven” means a jurisdiction that, for a 105 particular tax year: 106 1. Is identified by the Organization for Economic Co 107 operation and Development as a tax haven or as having a harmful 108 preferential tax regime; or 109 2.a. Is a jurisdiction that does not impose or imposes only 110 a nominal, effective tax on relevant income; 111 b. Has laws or practices that prevent the effective 112 exchange of information for tax purposes with other governments 113 regarding taxpayers who are subject to, or benefiting from, the 114 tax regime; 115 c. Lacks transparency; 116 d. Facilitates the establishment of foreign-owned entities 117 without the need for a local substantive presence or prohibits 118 these entities from having any commercial impact on the local 119 economy; 120 e. Explicitly or implicitly excludes the jurisdiction’s 121 resident taxpayers from taking advantage of the tax regime’s 122 benefits or prohibits enterprises that benefit from the regime 123 from operating in the jurisdiction’s domestic market; or 124 f. Has created a tax regime that is favorable for tax 125 avoidance, based upon an overall assessment of relevant factors, 126 including whether the jurisdiction has a significant untaxed 127 offshore financial or other services sector relative to its 128 overall economy. 129 130 For purposes of this paragraph, a tax regime lacks transparency 131 if the details of legislative, legal, or administrative 132 requirements are not open to public scrutiny and apparent, or 133 are not consistently applied among similarly situated taxpayers. 134 As used in this paragraph, the term “tax regime” means a set or 135 system of rules, laws, regulations, or practices by which taxes 136 are imposed on any person, corporation, or entity, or on any 137 income, property, incident, indicia, or activity pursuant to 138 government authority. 139 (hh) “Water’s edge group” means a group of corporations 140 related through common ownership whose business activities are 141 integrated with, dependent upon, or contribute to a flow of 142 value among members of the group. 143 Section 3. Subsection (1) and paragraph (f) of subsection 144 (2) of section 220.13, Florida Statutes, are amended to read: 145 220.13 “Adjusted federal income” defined.— 146 (1) The term “adjusted federal income” means an amount 147 equal to the taxpayer’s taxable income as defined in subsection 148 (2), or such taxable income of more than one taxpayer as 149 provided in s. 220.1363s.220.131, for the taxable year, 150 adjusted as follows: 151 (a) Additions.—There shall be added to such taxable income: 152 1. The amount of any tax upon or measured by income, 153 excluding taxes based on gross receipts or revenues, paid or 154 accrued as a liability to the District of Columbia or any state 155 of the United States which is deductible from gross income in 156 the computation of taxable income for the taxable year. 157 2. The amount of interest which is excluded from taxable 158 income under s. 103(a) of the Internal Revenue Code or any other 159 federal law, less the associated expenses disallowed in the 160 computation of taxable income under s. 265 of the Internal 161 Revenue Code or any other law, excluding 60 percent of any 162 amounts included in alternative minimum taxable income, as 163 defined in s. 55(b)(2) of the Internal Revenue Code, if the 164 taxpayer pays tax under s. 220.11(3). 165 3. In the case of a regulated investment company or real 166 estate investment trust, an amount equal to the excess of the 167 net long-term capital gain for the taxable year over the amount 168 of the capital gain dividends attributable to the taxable year. 169 4. That portion of the wages or salaries paid or incurred 170 for the taxable year which is equal to the amount of the credit 171 allowable for the taxable year under s. 220.181. This 172 subparagraph shall expire on the date specified in s. 290.016 173 for the expiration of the Florida Enterprise Zone Act. 174 5. That portion of the ad valorem school taxes paid or 175 incurred for the taxable year which is equal to the amount of 176 the credit allowable for the taxable year under s. 220.182. This 177 subparagraph shall expire on the date specified in s. 290.016 178 for the expiration of the Florida Enterprise Zone Act. 179 6. The amount taken as a credit under s. 220.195 which is 180 deductible from gross income in the computation of taxable 181 income for the taxable year. 182 7. That portion of assessments to fund a guaranty 183 association incurred for the taxable year which is equal to the 184 amount of the credit allowable for the taxable year. 185 8. In the case of a nonprofit corporation which holds a 186 pari-mutuel permit and which is exempt from federal income tax 187 as a farmers’ cooperative, an amount equal to the excess of the 188 gross income attributable to the pari-mutuel operations over the 189 attributable expenses for the taxable year. 190 9. The amount taken as a credit for the taxable year under 191 s. 220.1895. 192 10. Up to nine percent of the eligible basis of any 193 designated project which is equal to the credit allowable for 194 the taxable year under s. 220.185. 195 11. The amount taken as a credit for the taxable year under 196 s. 220.1875. The addition in this subparagraph is intended to 197 ensure that the same amount is not allowed for the tax purposes 198 of this state as both a deduction from income and a credit 199 against the tax. This addition is not intended to result in 200 adding the same expense back to income more than once. 201 12. The amount taken as a credit for the taxable year under 202 s. 220.192. 203 13. The amount taken as a credit for the taxable year under 204 s. 220.193. 205 14. Any portion of a qualified investment, as defined in s. 206 288.9913, which is claimed as a deduction by the taxpayer and 207 taken as a credit against income tax pursuant to s. 288.9916. 208 15. The costs to acquire a tax credit pursuant to s. 209 288.1254(5) that are deducted from or otherwise reduce federal 210 taxable income for the taxable year. 211 16. The amount taken as a credit for the taxable year 212 pursuant to s. 220.194. 213 17. The amount taken as a credit for the taxable year under 214 s. 220.196. The addition in this subparagraph is intended to 215 ensure that the same amount is not allowed for the tax purposes 216 of this state as both a deduction from income and a credit 217 against the tax. The addition is not intended to result in 218 adding the same expense back to income more than once. 219 (b) Subtractions.— 220 1. There shall be subtracted from such taxable income: 221 a. The net operating loss deduction allowable for federal 222 income tax purposes under s. 172 of the Internal Revenue Code 223 for the taxable year, except that any net operating loss that is 224 transferred pursuant to s. 220.194(6) may not be deducted by the 225 seller, 226 b. The net capital loss allowable for federal income tax 227 purposes under s. 1212 of the Internal Revenue Code for the 228 taxable year, 229 c. The excess charitable contribution deduction allowable 230 for federal income tax purposes under s. 170(d)(2) of the 231 Internal Revenue Code for the taxable year, and 232 d. The excess contributions deductions allowable for 233 federal income tax purposes under s. 404 of the Internal Revenue 234 Code for the taxable year. 235 236 However, a net operating loss and a capital loss shall never be 237 carried back as a deduction to a prior taxable year, but all 238 deductions attributable to such losses shall be deemed net 239 operating loss carryovers and capital loss carryovers, 240 respectively, and treated in the same manner, to the same 241 extent, and for the same time periods as are prescribed for such 242 carryovers in ss. 172 and 1212, respectively, of the Internal 243 Revenue Code. A deduction is not allowed for net operating 244 losses, net capital losses, or excess contribution deductions 245 under 26 U.S.C. ss. 170(d)(2), 172, 1212, and 404 for a member 246 of a water’s edge group that is not a United States member. 247 Carryovers of net operating losses, net capital losses, or 248 excess contribution deductions under 26 U.S.C. ss. 170(d)(2), 249 172, 1212, and 404 may be subtracted only by the member of the 250 water’s edge group that generates a carryover. 251 2. There shall be subtracted from such taxable income any 252 amount to the extent included therein the following: 253 a. Dividends treated as received from sources without the 254 United States, as determined under s. 862 of the Internal 255 Revenue Code. 256 b. All amounts included in taxable income under s. 78 or s. 257 951 of the Internal Revenue Code. 258 259 However, as to any amount subtracted under this subparagraph, 260 there shall be added to such taxable income all expenses 261 deducted on the taxpayer’s return for the taxable year which are 262 attributable, directly or indirectly, to such subtracted amount. 263 Further, no amount shall be subtracted with respect to dividends 264 paid or deemed paid by a Domestic International Sales 265 Corporation. 266 3. Amounts received by a member of a water’s edge group as 267 dividends paid by another member of the water’s edge group shall 268 be subtracted from the taxable income to the extent that the 269 dividends are included in the taxable income. 270 4.3.In computing “adjusted federal income” for taxable 271 years beginning after December 31, 1976, there shall be allowed 272 as a deduction the amount of wages and salaries paid or incurred 273 within this state for the taxable year for which no deduction is 274 allowed pursuant to s. 280C(a) of the Internal Revenue Code 275 (relating to credit for employment of certain new employees). 276 5.4.There shall be subtracted from such taxable income any 277 amount of nonbusiness income included therein. 278 6.5.There shall be subtracted any amount of taxes of 279 foreign countries allowable as credits for taxable years 280 beginning on or after September 1, 1985, under s. 901 of the 281 Internal Revenue Code to any corporation which derived less than 282 20 percent of its gross income or loss for its taxable year 283 ended in 1984 from sources within the United States, as 284 described in s. 861(a)(2)(A) of the Internal Revenue Code, not 285 including credits allowed under ss. 902 and 960 of the Internal 286 Revenue Code, withholding taxes on dividends within the meaning 287 of sub-subparagraph 2.a., and withholding taxes on royalties, 288 interest, technical service fees, and capital gains. 289 7.6.Notwithstanding any other provision of this code, 290 except with respect to amounts subtracted pursuant to 291 subparagraphs 1. and 4.3., any increment of any apportionment 292 factor which is directly related to an increment of gross 293 receipts or income which is deducted, subtracted, or otherwise 294 excluded in determining adjusted federal income shall be 295 excluded from both the numerator and denominator of such 296 apportionment factor. Further, all valuations made for 297 apportionment factor purposes shall be made on a basis 298 consistent with the taxpayer’s method of accounting for federal 299 income tax purposes. 300 (c) Installment sales occurring after October 19, 1980.— 301 1. In the case of any disposition made after October 19, 302 1980, the income from an installment sale shall be taken into 303 account for the purposes of this code in the same manner that 304 such income is taken into account for federal income tax 305 purposes. 306 2. Any taxpayer who regularly sells or otherwise disposes 307 of personal property on the installment plan and reports the 308 income therefrom on the installment method for federal income 309 tax purposes under s. 453(a) of the Internal Revenue Code shall 310 report such income in the same manner under this code. 311 (d) Nonallowable deductions.—A deduction for net operating 312 losses, net capital losses, or excess contributions deductions 313 under ss. 170(d)(2), 172, 1212, and 404 of the Internal Revenue 314 Code which has been allowed in a prior taxable year for Florida 315 tax purposes shall not be allowed for Florida tax purposes, 316 notwithstanding the fact that such deduction has not been fully 317 utilized for federal tax purposes. 318 (e) Adjustments related to the Federal Economic Stimulus 319 Act of 2008, the American Recovery and Reinvestment Act of 2009, 320 the Small Business Jobs Act of 2010, and the Tax Relief, 321 Unemployment Insurance Reauthorization, and Job Creation Act of 322 2010.—Taxpayers shall be required to make the adjustments 323 prescribed in this paragraph for Florida tax purposes in 324 relation to certain tax benefits received pursuant to the 325 Economic Stimulus Act of 2008, the American Recovery and 326 Reinvestment Act of 2009, the Small Business Jobs Act of 2010, 327 and the Tax Relief, Unemployment Insurance Reauthorization, and 328 Job Creation Act of 2010. 329 1. There shall be added to such taxable income an amount 330 equal to 100 percent of any amount deducted for federal income 331 tax purposes as bonus depreciation for the taxable year pursuant 332 to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as 333 amended by s. 103 of Pub. L. No. 110-185, s. 1201 of Pub. L. No. 334 111-5, s. 2022 of Pub. L. No. 111-240, and s. 401 of Pub. L. No. 335 111-312, for property placed in service after December 31, 2007, 336 and before January 1, 2013. For the taxable year and for each of 337 the 6 subsequent taxable years, there shall be subtracted from 338 such taxable income an amount equal to one-seventh of the amount 339 by which taxable income was increased pursuant to this 340 subparagraph, notwithstanding any sale or other disposition of 341 the property that is the subject of the adjustments and 342 regardless of whether such property remains in service in the 343 hands of the taxpayer. 344 2. There shall be added to such taxable income an amount 345 equal to 100 percent of any amount in excess of $128,000 346 deducted for federal income tax purposes for the taxable year 347 pursuant to s. 179 of the Internal Revenue Code of 1986, as 348 amended by s. 102 of Pub. L. No. 110-185, s. 1202 of Pub. L. No. 349 111-5, s. 2021 of Pub. L. No. 111-240, and s. 402 of Pub. L. No. 350 111-312, for taxable years beginning after December 31, 2007, 351 and before January 1, 2013. For the taxable year and for each of 352 the 6 subsequent taxable years, there shall be subtracted from 353 such taxable income one-seventh of the amount by which taxable 354 income was increased pursuant to this subparagraph, 355 notwithstanding any sale or other disposition of the property 356 that is the subject of the adjustments and regardless of whether 357 such property remains in service in the hands of the taxpayer. 358 3. There shall be added to such taxable income an amount 359 equal to the amount of deferred income not included in such 360 taxable income pursuant to s. 108(i)(1) of the Internal Revenue 361 Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There 362 shall be subtracted from such taxable income an amount equal to 363 the amount of deferred income included in such taxable income 364 pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986, 365 as amended by s. 1231 of Pub. L. No. 111-5. 366 4. Subtractions available under this paragraph may be 367 transferred to the surviving or acquiring entity following a 368 merger or acquisition and used in the same manner and with the 369 same limitations as specified by this paragraph. 370 5. The additions and subtractions specified in this 371 paragraph are intended to adjust taxable income for Florida tax 372 purposes, and, notwithstanding any other provision of this code, 373 such additions and subtractions shall be permitted to change a 374 taxpayer’s net operating loss for Florida tax purposes. 375 (2) For purposes of this section, a taxpayer’s taxable 376 income for the taxable year means taxable income as defined in 377 s. 63 of the Internal Revenue Code and properly reportable for 378 federal income tax purposes for the taxable year, but subject to 379 the limitations set forth in paragraph (1)(b) with respect to 380 the deductions provided by ss. 172 (relating to net operating 381 losses), 170(d)(2) (relating to excess charitable 382 contributions), 404(a)(1)(D) (relating to excess pension trust 383 contributions), 404(a)(3)(A) and (B) (to the extent relating to 384 excess stock bonus and profit-sharing trust contributions), and 385 1212 (relating to capital losses) of the Internal Revenue Code, 386 except that, subject to the same limitations, the term: 387 (f) “Taxable income,” in the case of a corporation which is 388 a member of an affiliated group of corporations filing a 389 consolidated income tax return for the taxable year for federal 390 income tax purposes, means taxable income of such corporation 391 for federal income tax purposes as if such corporation had filed 392 a separate federal income tax return for the taxable year and 393 each preceding taxable year for which it was a member of an 394 affiliated group, unless a consolidated return for the taxpayer395and others is required or elected under s.220.131; 396 Section 4. Section 220.136, Florida Statutes, is created to 397 read: 398 220.136 Determination of the members of a water’s edge 399 group.— 400 (1) MEMBERSHIP RULES.— 401 (a) A corporation having 50 percent or more of its 402 outstanding voting stock directly or indirectly owned or 403 controlled by a water’s edge group is presumed to be a member of 404 the group. A corporation having less than 50 percent of its 405 outstanding voting stock directly or indirectly controlled by a 406 water’s edge group is a member of the group if the business 407 activities of the corporation show that the corporation is a 408 member of the group. All of the income of a corporation that is 409 a member of a water’s edge group is presumed to be unitary. 410 (b) A corporation that conducts business outside the United 411 States is not a member of a water’s edge group if 80 percent or 412 more of the corporation’s property and payroll, as determined by 413 the apportionment factors described in ss. 220.1363 and 220.15, 414 may be assigned to locations outside the United States. However, 415 such corporations that are incorporated in a tax haven may be a 416 member of a water’s edge group pursuant to paragraph (a). This 417 paragraph does not exempt a corporation that is not a member of 418 a water’s edge group from the provisions of this chapter. 419 (2) MEMBERSHIP EVALUATION CRITERIA.— 420 (a) The attribution rules of 26 U.S.C. s. 318 shall be used 421 to determine whether voting stock is owned indirectly. 422 (b) As used in this paragraph, the term “United States” 423 means the 50 states, the District of Columbia, and Puerto Rico. 424 (c) The apportionment factors described in ss. 220.1363 and 425 220.15 shall be used to determine whether a special industry 426 corporation has engaged in a sufficient amount of activities 427 outside the United States to exclude it from treatment as a 428 member of a water’s edge group. 429 Section 5. Section 220.1363, Florida Statutes, is created 430 to read: 431 220.1363 Water’s edge groups; special requirements.— 432 (1) All members of a water’s edge group must use the 433 water’s edge reporting method. Under the water’s edge reporting 434 method: 435 (a) Adjusted federal income for purposes of s. 220.12 means 436 the sum of adjusted federal income for all members of the group 437 as determined for a concurrent tax year. 438 (b) The numerators and denominators of the apportionment 439 factors shall be calculated for all members of the group 440 combined. 441 (c) Intercompany sales transactions between members of the 442 group are not included in the numerator or denominator of the 443 sales factor pursuant to ss. 220.15 and 220.151, regardless of 444 whether indicia of a sale exist. As used in this subsection, the 445 term “sale” includes, but is not limited to, loans, payments for 446 the use of intangibles, dividends, and management fees. 447 (d) For sales of intangibles, including, but not limited 448 to, accounts receivable, notes, bonds, and stock, which are made 449 to entities outside of the group, only the net proceeds are 450 included in the numerator and denominator of the sales factor. 451 (e) Sales that are not allocated or apportioned to any 452 taxing jurisdiction, otherwise known as “nowhere sales,” may not 453 be included in the numerator or denominator of the sales factor. 454 (f) The income attributable to the Florida activities of a 455 corporation that is exempt from taxation under Pub. L. No. 86 456 272 is excluded from the apportionment factor numerators in the 457 calculation of corporate income tax even if another member of 458 the water’s edge group has nexus with Florida and is subject to 459 tax. 460 (g) For purposes of this section, the term “water’s edge 461 reporting method” is a method to determine the taxable business 462 profits of a group of entities conducting a unitary business. 463 Under this method, the net income of the entities must be added 464 together along with the additions and subtractions under s. 465 220.13 and apportioned to this state as a single taxpayer under 466 ss. 220.15 and 220.151. However, each special industry member 467 included in a water’s edge group return, which would otherwise 468 be permitted to use a special method of apportionment under s. 469 220.151, shall convert its single-factor apportionment to a 470 three-factor apportionment of property, payroll, and sales. The 471 special industry member shall calculate the denominator of its 472 property, payroll, and sales factors in the same manner as those 473 denominators are calculated by members that are not a special 474 industry member. The numerator of its sales, property, and 475 payroll factors is the product of the denominator of each factor 476 multiplied by the premiums or revenue-miles-factor ratio 477 otherwise applicable under s. 220.151. 478 (2)(a) A single water’s edge group return must be filed in 479 the name and federal employer identification number of the 480 parent corporation if the parent is a member of the group and 481 has nexus with Florida. If the group does not have a parent 482 corporation, if the parent corporation is not a member of the 483 group, or if the parent corporation does not have nexus with 484 Florida, the members of the group must choose a member subject 485 to the Florida corporate income tax to file the return. The 486 members of the group may not choose another member to file a 487 corporate income tax return in subsequent years unless the 488 filing member does not maintain nexus with Florida or remain a 489 member of that group. The return must be signed by an authorized 490 officer of the filing member as the agent for the group. 491 (b) If members of a water’s edge group have different tax 492 years, the tax year of a majority of the members of the group is 493 the tax year of the group. If the tax years of a majority of the 494 members of a group do not correspond, the tax year of the member 495 that must file the return for the group is the tax year of the 496 group. 497 (c)1. A member of a water’s edge group having a tax year 498 that does not correspond to the tax year of the group shall 499 determine its income for inclusion on the tax return for the 500 group. The member shall use: 501 a. The precise amount of taxable income received during the 502 months corresponding to the tax year of the group, if the 503 precise amount can be readily determined from the member’s books 504 and records. 505 b. The taxable income of the member converted to conform to 506 the tax year of the group on the basis of the number of months 507 falling within the tax year of the group. For example, if the 508 tax year of the water’s edge group is a calendar year and a 509 member operates on a fiscal year ending on April 30, the income 510 of the member shall include 8/12 of the income from the current 511 tax year and 4/12 of the income from the preceding tax year. 512 This method to determine the income of a member may be used only 513 if the return can be timely filed after the end of the tax year 514 of the group. 515 c. The taxable income of the member during its tax year 516 that ends within the tax year of the group. 517 2. The method of determining the income of a member of a 518 group whose tax year does not correspond to the tax year of the 519 group may not change as long as the member remains a member of 520 the group. The apportionment factors for the member must be 521 applied to the income of the member for the tax year of the 522 group. 523 (3)(a) A water’s edge group return shall include a 524 computational schedule that: 525 1. Combines the federal income of all members of the 526 water’s edge group; 527 2. Shows all intercompany eliminations; 528 3. Shows Florida additions and subtractions under s. 529 220.13; and 530 4. Shows the calculation of the combined apportionment 531 factors. 532 (b) A water’s edge group shall also file a domestic 533 disclosure spreadsheet in addition to its return. The 534 spreadsheet shall fully disclose: 535 1. The income reported to each state; 536 2. The state tax liability; 537 3. The method used for apportioning or allocating income to 538 the various states; and 539 4. Other information required by the department by rule in 540 order to determine the proper amount of tax due to each state 541 and to identify the water’s edge group. 542 (4) The department shall adopt rules and forms to 543 administer this section. The Legislature intends to grant the 544 department extensive authority to adopt rules and forms 545 describing and defining principles for determining the existence 546 of a water’s edge business, definitions of common control, 547 methods of reporting, and related forms, principles, and other 548 definitions. 549 Section 6. Section 220.14, Florida Statutes, is amended to 550 read: 551 220.14 Exemption.— 552 (1) In computing a taxpayer’s liability for tax under this 553 code, there shall be exempt from the tax $25,000 of net income 554 as defined in s. 220.12 or such lesser amount as will, without 555 increasing the taxpayer’s federal income tax liability, provide 556 the state with an amount under this code which is equal to the 557 maximum federal income tax credit which may be available from 558 time to time under federal law. 559 (2) In the case of a taxable year for a period of less than 560 12 months, the exemption allowed by this section shall be 561 prorated on the basis of the number of days in such year to 365, 562 or in the case of a leap year, to 366. 563 (3) Only one exemption shall be allowed to taxpayers filing 564 a water’s edge groupconsolidatedreturn under this code. 565 (4) Notwithstanding any other provision of this code, not 566 more than one exemption under this section may be allowed to the 567 Florida members of a controlled group of corporations, as 568 defined in s. 1563 of the Internal Revenue Code with respect to 569 taxable years ending on or after December 31, 1970, filing 570 separate returns under this code. The exemption described in 571 this section shall be divided equally among such Florida members 572 of the group, unless all of such members consent, at such time 573 and in such manner as the department shall by regulation 574 prescribe, to an apportionment plan providing for an unequal 575 allocation of such exemption. 576 Section 7. Subsection (5) of section 220.15, Florida 577 Statutes, is amended to read: 578 220.15 Apportionment of adjusted federal income.— 579 (5) The sales factor is a fraction the numerator of which 580 is the total sales of the taxpayer in this state during the 581 taxable year or period and the denominator of which is the total 582 sales of the taxpayer everywhere during the taxable year or 583 period. 584 (a) As used in this subsection, the term “sales” means all 585 gross receipts of the taxpayer except interest, dividends, 586 rents, royalties, and gross receipts from the sale, exchange, 587 maturity, redemption, or other disposition of securities. 588 However: 589 1. Rental income is included in the term if a significant 590 portion of the taxpayer’s business consists of leasing or 591 renting real or tangible personal property; and 592 2. Royalty income is included in the term if a significant 593 portion of the taxpayer’s business consists of dealing in or 594 with the production, exploration, or development of minerals. 595 (b)1. Sales of tangible personal property occur in this 596 state if: 597 a. The property is delivered or shipped to a purchaser 598 other than the United States Government within this state, 599 regardless of the f.o.b. point, other conditions of the sale, or 600 ultimate destination of the property, unless shipment is made 601 via a common or contract carrier; or 602 b. The property is shipped from an office, store, 603 warehouse, factory, or other place of storage in this state and 604 the purchaser is the United States Government or the taxpayer is 605 not taxable in the state of the purchaser. 606 607 However, for industries in NAICS National Number 311411, if the 608 ultimate destination of the product is to a location outside 609 this state, regardless of the method of shipment or f.o.b. 610 point, or the taxability of the taxpayer in the state of the 611 purchaser, the sale shall not be deemed to occur in this state. 612 As used in this paragraph, “NAICS” means those classifications 613 contained in the North American Industry Classification System, 614 as published in 2007 by the Office of Management and Budget, 615 Executive Office of the President. 616 2. When citrus fruit is delivered by a cooperative for a 617 grower-member, by a grower-member to a cooperative, or by a 618 grower-participant to a Florida processor, the sales factor for 619 the growers for such citrus fruit delivered to such processor 620 shall be the same as the sales factor for the most recent 621 taxable year of that processor. That sales factor, expressed 622 only as a percentage and not in terms of the dollar volume of 623 sales, so as to protect the confidentiality of the sales of the 624 processor, shall be furnished on the request of such a grower 625 promptly after it has been determined for that taxable year. 626 3. Reimbursement of expenses under an agency contract 627 between a cooperative, a grower-member of a cooperative, or a 628 grower and a processor is not a sale within this state. 629 (c) Sales of a financial organization, including, but not 630 limited to, banking and savings institutions, investment 631 companies, real estate investment trusts, and brokerage 632 companies, occur in this state if derived from: 633 1. Fees, commissions, or other compensation for financial 634 services rendered within this state; 635 2. Gross profits from trading in stocks, bonds, or other 636 securities managed within this state; 637 3. Interest received within this state, other than interest 638 from loans secured by mortgages, deeds of trust, or other liens 639 upon real or tangible personal property located without this 640 state, and dividends received within this state; 641 4. Interest charged to customers at places of business 642 maintained within this state for carrying debit balances of 643 margin accounts, without deduction of any costs incurred in 644 carrying such accounts; 645 5. Interest, fees, commissions, or other charges or gains 646 from loans secured by mortgages, deeds of trust, or other liens 647 upon real or tangible personal property located in this state or 648 from installment sale agreements originally executed by a 649 taxpayer or the taxpayer’s agent to sell real or tangible 650 personal property located in this state; 651 6. Rents from real or tangible personal property located in 652 this state; or 653 7. Any other gross income, including other interest, 654 resulting from the operation as a financial organization within 655 this state. 656 657In computing the amounts under this paragraph, any amount658received by a member of an affiliated group (determined under s.6591504(a) of the Internal Revenue Code, but without reference to660whether any such corporation is an “includable corporation”661under s. 1504(b) of the Internal Revenue Code) from another662member of such group shall be included only to the extent such663amount exceeds expenses of the recipient directly related664thereto.665 Section 8. Subsection (1) of section 220.183, Florida 666 Statutes, is amended to read: 667 220.183 Community contribution tax credit.— 668 (1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX 669 CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM 670 SPENDING.— 671 (a) There shall be allowed a credit of 50 percent of a 672 community contribution against any tax due for a taxable year 673 under this chapter. 674 (b) No business firm shall receive more than $200,000 in 675 annual tax credits for all approved community contributions made 676 in any one year. 677 (c) The total amount of tax credit which may be granted for 678 all programs approved under this section, s. 212.08(5)(p), and 679 s. 624.5105 is $10.5 million annually for projects that provide 680 homeownership opportunities for low-income or very-low-income 681 households as defined in s. 420.9071(19) and (28) and $3.5 682 million annually for all other projects. 683 (d) All proposals for the granting of the tax credit shall 684 require the prior approval of the Department of Economic 685 Opportunity. 686 (e) If the credit granted pursuant to this section is not 687 fully used in any one year because of insufficient tax liability 688 on the part of the business firm, the unused amount may be 689 carried forward for a period not to exceed 5 years. The 690 carryover credit may be used in a subsequent year when the tax 691 imposed by this chapter for such year exceeds the credit for 692 such year under this section after applying the other credits 693 and unused credit carryovers in the order provided in s. 694 220.02(8). 695(f) A taxpayer who files a Florida consolidated return as a696member of an affiliated group pursuant to s.220.131(1) may be697allowed the credit on a consolidated return basis.698 (f)(g)A taxpayer who is eligible to receive the credit 699 provided for in s. 624.5105 is not eligible to receive the 700 credit provided by this section. 701 Section 9. Subsection (2) of section 220.1845, Florida 702 Statutes, is amended to read: 703 220.1845 Contaminated site rehabilitation tax credit.— 704 (2) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.— 705 (a) A credit in the amount of 50 percent of the costs of 706 voluntary cleanup activity that is integral to site 707 rehabilitation at the following sites is available against any 708 tax due for a taxable year under this chapter: 709 1. A drycleaning-solvent-contaminated site eligible for 710 state-funded site rehabilitation under s. 376.3078(3); 711 2. A drycleaning-solvent-contaminated site at which site 712 rehabilitation is undertaken by the real property owner pursuant 713 to s. 376.3078(11), if the real property owner is not also, and 714 has never been, the owner or operator of the drycleaning 715 facility where the contamination exists; or 716 3. A brownfield site in a designated brownfield area under 717 s. 376.80. 718 (b) A tax credit applicant, or multiple tax credit 719 applicants working jointly to clean up a single site, may not be 720 granted more than $500,000 per year in tax credits for each site 721 voluntarily rehabilitated. Multiple tax credit applicants shall 722 be granted tax credits in the same proportion as their 723 contribution to payment of cleanup costs. Subject to the same 724 conditions and limitations as provided in this section, a 725 municipality, county, or other tax credit applicant which 726 voluntarily rehabilitates a site may receive not more than 727 $500,000 per year in tax credits which it can subsequently 728 transfer subject to the provisions in paragraph (f)(g). 729 (c) If the credit granted under this section is not fully 730 used in any one year because of insufficient tax liability on 731 the part of the corporation, the unused amount may be carried 732 forward for up to 5 years. The carryover credit may be used in a 733 subsequent year if the tax imposed by this chapter for that year 734 exceeds the credit for which the corporation is eligible in that 735 year after applying the other credits and unused carryovers in 736 the order provided by s. 220.02(8). If during the 5-year period 737 the credit is transferred, in whole or in part, pursuant to 738 paragraph (f)(g), each transferee has 5 years after the date of 739 transfer to use its credit. 740(d) A taxpayer that files a consolidated return in this741state as a member of an affiliated group under s.220.131(1) may742be allowed the credit on a consolidated return basis up to the743amount of tax imposed upon the consolidated group.744 (d)(e)A tax credit applicant that receives state-funded 745 site rehabilitation under s. 376.3078(3) for rehabilitation of a 746 drycleaning-solvent-contaminated site is ineligible to receive 747 credit under this section for costs incurred by the tax credit 748 applicant in conjunction with the rehabilitation of that site 749 during the same time period that state-administered site 750 rehabilitation was underway. 751 (e)(f)The total amount of the tax credits which may be 752 granted under this section is $5 million annually. 753 (f)(g)1. Tax credits that may be available under this 754 section to an entity eligible under s. 376.30781 may be 755 transferred after a merger or acquisition to the surviving or 756 acquiring entity and used in the same manner and with the same 757 limitations. 758 2. The entity or its surviving or acquiring entity as 759 described in subparagraph 1., may transfer any unused credit in 760 whole or in units of at least 25 percent of the remaining 761 credit. The entity acquiring such credit may use it in the same 762 manner and with the same limitation as described in this 763 section. Such transferred credits may not be transferred again 764 although they may succeed to a surviving or acquiring entity 765 subject to the same conditions and limitations as described in 766 this section. 767 3. If the credit is reduced due to a determination by the 768 Department of Environmental Protection or an examination or 769 audit by the Department of Revenue, the tax deficiency shall be 770 recovered from the first entity, or the surviving or acquiring 771 entity that claimed the credit up to the amount of credit taken. 772 Any subsequent deficiencies shall be assessed against the entity 773 acquiring and claiming the credit, or in the case of multiple 774 succeeding entities in the order of credit succession. 775 (g)(h)In order to encourage completion of site 776 rehabilitation at contaminated sites being voluntarily cleaned 777 up and eligible for a tax credit under this section, the tax 778 credit applicant may claim an additional 25 percent of the total 779 cleanup costs, not to exceed $500,000, in the final year of 780 cleanup as evidenced by the Department of Environmental 781 Protection issuing a “No Further Action” order for that site. 782 (h)(i)In order to encourage the construction of housing 783 that meets the definition of affordable provided in s. 420.0004, 784 an applicant for the tax credit may claim an additional 25 785 percent of the total site rehabilitation costs that are eligible 786 for tax credits under this section, not to exceed $500,000. In 787 order to receive this additional tax credit, the applicant must 788 provide a certification letter from the Florida Housing Finance 789 Corporation, the local housing authority, or other governmental 790 agency that is a party to the use agreement indicating that the 791 construction on the brownfield site has received a certificate 792 of occupancy and the brownfield site has a properly recorded 793 instrument that limits the use of the property to housing that 794 meets the definition of affordable provided in s. 420.0004. 795 (i)(j)In order to encourage the redevelopment of a 796 brownfield site, as defined in the brownfield site 797 rehabilitation agreement, that is hindered by the presence of 798 solid waste, as defined in s. 403.703, a tax credit applicant, 799 or multiple tax credit applicants working jointly to clean up a 800 single brownfield site, may also claim costs required to address 801 solid waste removal as defined in this paragraph in accordance 802 with rules of the Department of Environmental Protection. 803 Multiple tax credit applicants shall be granted tax credits in 804 the same proportion as each applicant’s contribution to payment 805 of solid waste removal costs. These costs are eligible for a tax 806 credit provided the applicant submits an affidavit stating that, 807 after consultation with appropriate local government officials 808 and the Department of Environmental Protection, to the best of 809 the applicant’s knowledge according to such consultation and 810 available historical records, the brownfield site was never 811 operated as a permitted solid waste disposal area or was never 812 operated for monetary compensation and the applicant submits all 813 other documentation and certifications required by this section. 814 Under this section, wherever reference is made to “site 815 rehabilitation,” the Department of Environmental Protection 816 shall instead consider whether or not the costs claimed are for 817 solid waste removal. Tax credit applications claiming costs 818 pursuant to this paragraph shall not be subject to the calendar 819 year limitation and January 31 annual application deadline, and 820 the Department of Environmental Protection shall accept a one 821 time application filed subsequent to the completion by the tax 822 credit applicant of the applicable requirements listed in this 823 section. A tax credit applicant may claim 50 percent of the cost 824 for solid waste removal, not to exceed $500,000, after the 825 applicant has determined solid waste removal is completed for 826 the brownfield site. A solid waste removal tax credit 827 application may be filed only once per brownfield site. For the 828 purposes of this section, the term: 829 1. “Solid waste disposal area” means a landfill, dump, or 830 other area where solid waste has been disposed of. 831 2. “Monetary compensation” means the fees that were charged 832 or the assessments that were levied for the disposal of solid 833 waste at a solid waste disposal area. 834 3. “Solid waste removal” means removal of solid waste from 835 the land surface or excavation of solid waste from below the 836 land surface and removal of the solid waste from the brownfield 837 site. The term also includes: 838 a. Transportation of solid waste to a licensed or exempt 839 solid waste management facility or to a temporary storage area. 840 b. Sorting or screening of solid waste prior to removal 841 from the site. 842 c. Deposition of solid waste at a permitted or exempt solid 843 waste management facility, whether the solid waste is disposed 844 of or recycled. 845 (j)(k)In order to encourage the construction and operation 846 of a new health care facility as defined in s. 408.032 or s. 847 408.07, or a health care provider as defined in s. 408.07 or s. 848 408.7056, on a brownfield site, an applicant for a tax credit 849 may claim an additional 25 percent of the total site 850 rehabilitation costs, not to exceed $500,000, if the applicant 851 meets the requirements of this paragraph. In order to receive 852 this additional tax credit, the applicant must provide 853 documentation indicating that the construction of the health 854 care facility or health care provider by the applicant on the 855 brownfield site has received a certificate of occupancy or a 856 license or certificate has been issued for the operation of the 857 health care facility or health care provider. 858 Section 10. Section 220.1875, Florida Statutes, is amended 859 to read: 860 220.1875 Credit for contributions to eligible nonprofit 861 scholarship-funding organizations.— 862 (1) There is allowed a credit of 100 percent of an eligible 863 contribution made to an eligible nonprofit scholarship-funding 864 organization under s. 1002.395 against any tax due for a taxable 865 year under this chapter after the application of any other 866 allowable credits by the taxpayer. The credit granted by this 867 section shall be reduced by the difference between the amount of 868 federal corporate income tax taking into account the credit 869 granted by this section and the amount of federal corporate 870 income tax without application of the credit granted by this 871 section. 872(2) A taxpayer who files a Florida consolidated return as a873member of an affiliated group pursuant to s.220.131(1) may be874allowed the credit on a consolidated return basis; however, the875total credit taken by the affiliated group is subject to the876limitation established under subsection (1).877 (2)(3)The provisions of s. 1002.395 apply to the credit 878 authorized by this section. 879 Section 11. Subsection (3) of section 220.191, Florida 880 Statutes, is amended to read: 881 220.191 Capital investment tax credit.— 882 (3)(a) Notwithstanding subsection (2), an annual credit 883 against the tax imposed by this chapter shall be granted to a 884 qualifying business which establishes a qualifying project 885 pursuant to subparagraph (1)(g)3., in an amount equal to the 886 lesser of $15 million or 5 percent of the eligible capital costs 887 made in connection with a qualifying project, for a period not 888 to exceed 20 years beginning with the commencement of operations 889 of the project. The tax credit shall be granted against the 890 corporate income tax liability of the qualifying business and as 891 further provided in paragraph (c). The total tax credit provided 892 pursuant to this subsection shall be equal to no more than 100 893 percent of the eligible capital costs of the qualifying project. 894 (b) If the credit granted under this subsection is not 895 fully used in any one year because of insufficient tax liability 896 on the part of the qualifying business, the unused amount may be 897 carried forward for a period not to exceed 20 years after the 898 commencement of operations of the project. The carryover credit 899 may be used in a subsequent year when the tax imposed by this 900 chapter for that year exceeds the credit for which the 901 qualifying business is eligible in that year under this 902 subsection after applying the other credits and unused 903 carryovers in the order provided by s. 220.02(8). 904 (c) The credit granted under this subsection may be used in 905 whole or in part by the qualifying businessor any corporation906that is either a member of that qualifying business’s affiliated907group of corporations, is a related entity taxable as a908cooperative under subchapter T of the Internal Revenue Code, or,909if the qualifying business is an entity taxable as a cooperative910under subchapter T of the Internal Revenue Code, is related to911the qualifying business. Any entity related to the qualifying912business may continue to file as a member of a Florida-nexus913consolidated group pursuant to a prior election made under s.914220.131(1), Florida Statutes (1985), even if the parent of the915group changes due to a direct or indirect acquisition of the916former common parent of the group. Any credit can be used by any917of the affiliated companies or related entities referenced in918this paragraph to the same extent as it could have been used by919the qualifying business. However, any such use shall not operate920to increase the amount of the credit or extend the period within921which the credit must be used. 922 Section 12. Subsection (2) of section 220.192, Florida 923 Statutes, is amended to read: 924 220.192 Renewable energy technologies investment tax 925 credit.— 926 (2) TAX CREDIT.—For tax years beginning on or after January 927 1, 2007, a credit against the tax imposed by this chapter shall 928 be granted in an amount equal to the eligible costs. Credits may 929 be used in tax years beginning January 1, 2007, and ending 930 December 31, 2010, after which the credit shall expire. If the 931 credit is not fully used in any one tax year because of 932 insufficient tax liability on the part of the corporation, the 933 unused amount may be carried forward and used in tax years 934 beginning January 1, 2007, and ending December 31, 2012, after 935 which the credit carryover expires and may not be used.A936taxpayer that files a consolidated return in this state as a937member of an affiliated group under s.220.131(1) may be allowed938the credit on a consolidated return basis up to the amount of939tax imposed upon the consolidated group.Any eligible cost for 940 which a credit is claimed and which is deducted or otherwise 941 reduces federal taxable income shall be added back in computing 942 adjusted federal income under s. 220.13. 943 Section 13. Subsection (3) of section 220.193, Florida 944 Statutes, is amended to read: 945 220.193 Florida renewable energy production credit.— 946 (3) An annual credit against the tax imposed by this 947 section shall be allowed to a taxpayer, based on the taxpayer’s 948 production and sale of electricity from a new or expanded 949 Florida renewable energy facility. For a new facility, the 950 credit shall be based on the taxpayer’s sale of the facility’s 951 entire electrical production. For an expanded facility, the 952 credit shall be based on the increases in the facility’s 953 electrical production that are achieved after May 1, 2006. 954 (a) The credit shall be $0.01 for each kilowatt-hour of 955 electricity produced and sold by the taxpayer to an unrelated 956 party during a given tax year. 957 (b) The credit may be claimed for electricity produced and 958 sold on or after January 1, 2007. Beginning in 2008 and 959 continuing until 2011, each taxpayer claiming a credit under 960 this section must first apply to the department by February 1 of 961 each year for an allocation of available credit. The department, 962 in consultation with the commission, shall develop an 963 application form. The application form shall, at a minimum, 964 require a sworn affidavit from each taxpayer certifying the 965 increase in production and sales that form the basis of the 966 application and certifying that all information contained in the 967 application is true and correct. 968 (c) If the amount of credits applied for each year exceeds 969 $5 million, the department shall award to each applicant a 970 prorated amount based on each applicant’s increased production 971 and sales and the increased production and sales of all 972 applicants. 973 (d) If the credit granted pursuant to this section is not 974 fully used in one year because of insufficient tax liability on 975 the part of the taxpayer, the unused amount may be carried 976 forward for a period not to exceed 5 years. The carryover credit 977 may be used in a subsequent year when the tax imposed by this 978 chapter for such year exceeds the credit for such year, after 979 applying the other credits and unused credit carryovers in the 980 order provided in s. 220.02(8). 981(e) A taxpayer that files a consolidated return in this982state as a member of an affiliated group under s.220.131(1) may983be allowed the credit on a consolidated return basis up to the984amount of tax imposed upon the consolidated group.985 (e)(f)1. Tax credits that may be available under this 986 section to an entity eligible under this section may be 987 transferred after a merger or acquisition to the surviving or 988 acquiring entity and used in the same manner with the same 989 limitations. 990 2. The entity or its surviving or acquiring entity as 991 described in subparagraph 1. may transfer any unused credit in 992 whole or in units of no less than 25 percent of the remaining 993 credit. The entity acquiring such credit may use it in the same 994 manner and with the same limitations under this section. Such 995 transferred credits may not be transferred again although they 996 may succeed to a surviving or acquiring entity subject to the 997 same conditions and limitations as described in this section. 998 3. In the event the credit provided for under this section 999 is reduced as a result of an examination or audit by the 1000 department, such tax deficiency shall be recovered from the 1001 first entity or the surviving or acquiring entity to have 1002 claimed such credit up to the amount of credit taken. Any 1003 subsequent deficiencies shall be assessed against any entity 1004 acquiring and claiming such credit, or in the case of multiple 1005 succeeding entities in the order of credit succession. 1006 (f)(g)Notwithstanding any other provision of this section, 1007 credits for the production and sale of electricity from a new or 1008 expanded Florida renewable energy facility may be earned between 1009 January 1, 2007, and June 30, 2010. The combined total amount of 1010 tax credits which may be granted for all taxpayers under this 1011 section is limited to $5 million per state fiscal year. 1012 (g)(h)A taxpayer claiming a credit under this section 1013 shall be required to add back to net income that portion of its 1014 business deductions claimed on its federal return paid or 1015 incurred for the taxable year which is equal to the amount of 1016 the credit allowable for the taxable year under this section. 1017 (h)(i)A taxpayer claiming credit under this section may 1018 not claim a credit under s. 220.192. A taxpayer claiming credit 1019 under s. 220.192 may not claim a credit under this section. 1020 (i)(j)When an entity treated as a partnership or a 1021 disregarded entity under this chapter produces and sells 1022 electricity from a new or expanded renewable energy facility, 1023 the credit earned by such entity shall pass through in the same 1024 manner as items of income and expense pass through for federal 1025 income tax purposes. When an entity applies for the credit and 1026 the entity has received the credit by a pass-through, the 1027 application must identify the taxpayer that passed the credit 1028 through, all taxpayers that received the credit, and the 1029 percentage of the credit that passes through to each recipient 1030 and must provide other information that the department requires. 1031 (j)(k)A taxpayer’s use of the credit granted pursuant to 1032 this section does not reduce the amount of any credit available 1033 to such taxpayer under s. 220.186. 1034 Section 14. Section 220.51, Florida Statutes, is amended to 1035 read: 1036 220.51 Promulgation of rules and regulations.—In accordance 1037 with the Administrative Procedure Act, chapter 120, the 1038 department is authorized to make, promulgate, and enforce such 1039 reasonable rules and regulations, and to prescribe such forms 1040 relating to the administration and enforcement of the provisions 1041 of this code, as it may deem appropriate, including: 1042 (1) Rules for initial implementation of this code and for 1043 taxpayers’ transitional taxable years commencing before and 1044 ending after January 1, 1972.;1045 (2) Rules or regulations to clarify whether certain groups, 1046 organizations, or associations formed under the laws of this 1047 state or any other state, country, or jurisdiction shall be 1048 deemed “taxpayers” for the purposes of this code, in accordance 1049 with the legislative declarations of intent in s. 220.02.; and1050(3) Regulations relating to consolidated reporting for1051affiliated groups of corporations, in order to provide for an1052equitable and just administration of this code with respect to1053multicorporate taxpayers.1054 Section 15. Section 220.64, Florida Statutes, is amended to 1055 read: 1056 220.64 Other provisions applicable to franchise tax.—To the 1057 extent that they are not manifestly incompatible with the 1058 provisions of this part, parts I, III, IV, V, VI, VIII, IX, and 1059 X of this code and ss. 220.12, 220.13, 220.136, 220.1363, 1060 220.15, and 220.16 apply to the franchise tax imposed by this 1061 part.Under rules prescribed in s.220.131, a consolidated1062return may be filed by any affiliated group of corporations1063composed of one or more banks or savings associations, its or1064their Florida parent corporation, and any nonbank or nonsavings1065subsidiaries of such parent corporation.1066 Section 16. Present paragraphs (g) and (h) of subsection 1067 (4) of section 288.1254, Florida Statutes, are redesignated as 1068 paragraphs (f) and (g), respectively, and present paragraph (f) 1069 of subsection (4) and paragraph (a) of subsection (5) of that 1070 section are amended to read: 1071 288.1254 Entertainment industry financial incentive 1072 program.— 1073 (4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES; 1074 ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS; 1075 PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND 1076 ACQUISITIONS.— 1077(f)Consolidated returns.—A certified production company1078that files a Florida consolidated return as a member of an1079affiliated group under s.220.131(1) may be allowed the credit1080on a consolidated return basis up to the amount of the tax1081imposed upon the consolidated group under chapter 220.1082 (5) TRANSFER OF TAX CREDITS.— 1083 (a) Authorization.—Upon application to the Office of Film 1084 and Entertainment and approval by the department, a certified 1085 production company, or a partner or member that has received a 1086 distribution under paragraph (4)(f)(4)(g), may elect to 1087 transfer, in whole or in part, any unused credit amount granted 1088 under this section. An election to transfer any unused tax 1089 credit amount under chapter 212 or chapter 220 must be made no 1090 later than 5 years after the date the credit is awarded, after 1091 which period the credit expires and may not be used. The 1092 department shall notify the Department of Revenue of the 1093 election and transfer. 1094 Section 17. Subsections (9) and (10) of section 376.30781, 1095 Florida Statutes, are amended to read: 1096 376.30781 Tax credits for rehabilitation of drycleaning 1097 solvent-contaminated sites and brownfield sites in designated 1098 brownfield areas; application process; rulemaking authority; 1099 revocation authority.— 1100 (9) On or before May 1, the Department of Environmental 1101 Protection shall inform each tax credit applicant that is 1102 subject to the January 31 annual application deadline of the 1103 applicant’s eligibility status and the amount of any tax credit 1104 due. The department shall provide each eligible tax credit 1105 applicant with a tax credit certificate that must be submitted 1106 with its tax return to the Department of Revenue to claim the 1107 tax credit or be transferred pursuant to s. 220.1845(2)(f)s.1108220.1845(2)(g). The May 1 deadline for annual site 1109 rehabilitation tax credit certificate awards shall not apply to 1110 any tax credit application for which the department has issued a 1111 notice of deficiency pursuant to subsection (8). The department 1112 shall respond within 90 days after receiving a response from the 1113 tax credit applicant to such a notice of deficiency. Credits may 1114 not result in the payment of refunds if total credits exceed the 1115 amount of tax owed. 1116 (10) For solid waste removal, new health care facility or 1117 health care provider, and affordable housing tax credit 1118 applications, the Department of Environmental Protection shall 1119 inform the applicant of the department’s determination within 90 1120 days after the application is deemed complete. Each eligible tax 1121 credit applicant shall be informed of the amount of its tax 1122 credit and provided with a tax credit certificate that must be 1123 submitted with its tax return to the Department of Revenue to 1124 claim the tax credit or be transferred pursuant to s. 1125 220.1845(2)(f)s.220.1845(2)(g). Credits may not result in the 1126 payment of refunds if total credits exceed the amount of tax 1127 owed. 1128 Section 18. Paragraph (b) of subsection (4) of section 1129 627.6699, Florida Statutes, is amended to read: 1130 627.6699 Employee Health Care Access Act.— 1131 (4) APPLICABILITY AND SCOPE.— 1132 (b) With respect to a group of affiliated carriers or a 1133 group of carriers that is eligible to file a consolidated 1134 federal tax return, any restrictions, limitations, or 1135 requirements of this section that apply to one of the carriers 1136 applies to all of the carriers as if they were one carrier. 1137 However, with respect to affiliated companies, all of which are 1138 in existence and affiliated on January 1, 1992, the group of 1139 affiliated companies is considered one carrier only after one 1140 member of the group transfers any small employer business to 1141 another member of the group. 1142 Section 19. Transitional rules.— 1143 (1) For the first tax year beginning on or after January 1, 1144 2013, a taxpayer that filed a Florida corporate income tax 1145 return in the preceding tax year that is a member of a water’s 1146 edge group shall compute its income together with all members of 1147 its water’s edge group and file a combined Florida corporate 1148 income tax return with all members of its water’s edge group. 1149 (2) An affiliated group of corporations that filed a 1150 Florida consolidated corporate income tax return pursuant to an 1151 election provided in s. 220.131, Florida Statutes, shall cease 1152 filing a Florida consolidated corporate income tax return for 1153 tax years beginning on or after January 1, 2013, and shall file 1154 a combined Florida corporate income tax return with all members 1155 of its water’s edge group. 1156 (3) An affiliated group of corporations that filed a 1157 Florida consolidated corporate income tax return pursuant to the 1158 election in s. 220.131(1), Florida Statutes (1985), which 1159 allowed the affiliated group to make an election within 90 days 1160 after December 20, 1984, or upon filing the taxpayer’s first 1161 return after December 20, 1984, whichever is later, shall cease 1162 filing a Florida consolidated corporate income tax return using 1163 that method for tax years beginning on or after January 1, 2013, 1164 and shall file a combined Florida corporate income tax return 1165 with all members of its water’s edge group. 1166 (4) Taxpayers that are not members of a water’s edge group 1167 remain subject to chapter 220, Florida Statutes, and shall file 1168 a separate Florida corporate income tax return as previously 1169 required. 1170 (5) For the tax years beginning on or after January 1, 1171 2013, a tax return for a member of a water’s edge group must be 1172 a combined Florida corporate income tax return that includes tax 1173 information for all members of the water’s edge group. The tax 1174 return must be filed by a member that has a nexus with Florida. 1175 Section 20. The funds recaptured pursuant to this act shall 1176 be deposited into the General Revenue Fund. 1177 Section 21. Section 220.131, Florida Statutes, is repealed. 1178 Section 22. This act shall take effect July 1, 2012.