CS/HB 143

1	A bill to be entitled
2	An act relating to tax credits; amending s. 220.02, F.S.;
3	revising the priority of tax credits that may be taken
4	against the corporate income tax or the franchise tax;
5	amending s. 220.13, F.S.; redefining the term "adjusted
6	federal income" to include the amount of certain tax
7	credits; creating s. 220.1811, F.S.; authorizing
8	aerospace-sector jobs tax credits and tuition
9	reimbursement tax credits; defining terms; authorizing a
10	tax credit to aerospace businesses based on the salary or
11	tuition reimbursed to certain employees; specifying the
12	maximum annual amount of tax credits for an aerospace
13	business; limiting the annual amount of tax credits
14	available; prohibiting a business from claiming an
15	aerospace-sector jobs tax credit and a tuition
16	reimbursement tax credit, or any other state tax credit or
17	tax incentive refund, for the same employee; providing for
18	the Department of Revenue to approve applications for tax
19	credits; prohibiting increases in the amount of unused tax
20	credits carried over in amended tax returns; providing
21	fines and criminal penalties for certain unlawful claims
22	of tax credits; authorizing the Department of Revenue to
23	adopt rules; providing for the expiration of the tax
24	credit program; providing for applicability; providing an
25	effective date.
26
27	Be It Enacted by the Legislature of the State of Florida:
28
29	Section 1.  Subsection (8) of section 220.02, Florida
30	Statutes, is amended to read:
31	220.02  Legislative intent.-
32	(8)  It is the intent of the Legislature that Credits
33	against either the corporate income tax or the franchise tax
34	shall be applied in the following order: those enumerated in s.
35	631.828, those enumerated in s. 220.191, those enumerated in s.
36	220.181, those enumerated in s. 220.183, those enumerated in s.
37	220.182, those enumerated in s. 220.1895, those enumerated in s.
38	221.02, those enumerated in s. 220.184, those enumerated in s.
39	220.186, those enumerated in s. 220.1845, those enumerated in s.
40	220.19, those enumerated in s. 220.185, those enumerated in s.
41	220.1875, those enumerated in s. 220.192, those enumerated in s.
42	220.193, those enumerated in s. 288.9916, those enumerated in s.
43	220.1899, and those enumerated in s. 220.1896, and those
44	enumerated in s. 220.1811.
45	Section 2.  Paragraph (a) of subsection (1) of section
46	220.13, Florida Statutes, is amended to read:
47	220.13  "Adjusted federal income" defined.-
48	(1)  The term "adjusted federal income" means an amount
49	equal to the taxpayer's taxable income as defined in subsection
50	(2), or such taxable income of more than one taxpayer as
51	provided in s. 220.131, for the taxable year, adjusted as
52	follows:
53	(a)  Additions.-There shall be added to such taxable
54	income:
55	1.  The amount of any tax upon or measured by income,
56	excluding taxes based on gross receipts or revenues, paid or
57	accrued as a liability to the District of Columbia or any state
58	of the United States which is deductible from gross income in
59	the computation of taxable income for the taxable year.
60	2.  The amount of interest which is excluded from taxable
61	income under s. 103(a) of the Internal Revenue Code or any other
62	federal law, less the associated expenses disallowed in the
63	computation of taxable income under s. 265 of the Internal
64	Revenue Code or any other law, excluding 60 percent of any
65	amounts included in alternative minimum taxable income, as
66	defined in s. 55(b)(2) of the Internal Revenue Code, if the
67	taxpayer pays tax under s. 220.11(3).
68	3.  In the case of a regulated investment company or real
69	estate investment trust, an amount equal to the excess of the
70	net long-term capital gain for the taxable year over the amount
71	of the capital gain dividends attributable to the taxable year.
72	4.  That portion of the wages or salaries paid or incurred
73	for the taxable year which is equal to the amount of the credit
74	allowable for the taxable year under s. 220.181. This
75	subparagraph shall expire on the date specified in s. 290.016
76	for the expiration of the Florida Enterprise Zone Act.
77	5.  That portion of the ad valorem school taxes paid or
78	incurred for the taxable year which is equal to the amount of
79	the credit allowable for the taxable year under s. 220.182. This
80	subparagraph shall expire on the date specified in s. 290.016
81	for the expiration of the Florida Enterprise Zone Act.
82	6.  The amount of emergency excise tax paid or accrued as a
83	liability to this state under chapter 221 which tax is
84	deductible from gross income in the computation of taxable
85	income for the taxable year.
86	7.  That portion of assessments to fund a guaranty
87	association incurred for the taxable year which is equal to the
88	amount of the credit allowable for the taxable year.
89	8.  In the case of a nonprofit corporation which holds a
90	pari-mutuel permit and which is exempt from federal income tax
91	as a farmers' cooperative, an amount equal to the excess of the
92	gross income attributable to the pari-mutuel operations over the
93	attributable expenses for the taxable year.
94	9.  The amount taken as a credit for the taxable year under
95	s. 220.1895.
96	10.  Up to nine percent of the eligible basis of any
97	designated project which is equal to the credit allowable for
98	the taxable year under s. 220.185.
99	11.  The amount taken as a credit for the taxable year
100	under s. 220.1875. The addition in this subparagraph is intended
101	to ensure that the same amount is not allowed for the tax
102	purposes of this state as both a deduction from income and a
103	credit against the tax. This addition is not intended to result
104	in adding the same expense back to income more than once.
105	12.  The amount taken as a credit for the taxable year
106	under s. 220.192.
107	13.  The amount taken as a credit for the taxable year
108	under s. 220.193.
109	14.  Any portion of a qualified investment, as defined in
110	s. 288.9913, which is claimed as a deduction by the taxpayer and
111	taken as a credit against income tax pursuant to s. 288.9916.
112	15.  The costs to acquire a tax credit pursuant to s.
113	288.1254(5) that are deducted from or otherwise reduce federal
114	taxable income for the taxable year.
115	16.  The amount taken as a credit for the taxable year
116	under s. 220.1811.
117	Section 3.  Section 220.1811, Florida Statutes, is created
118	to read:
119	220.1811  Aerospace-sector jobs tax credit and tuition
120	reimbursement tax credit.-
121	(1)  DEFINITIONS.-As used in this section, the term:
122	(a)  "Aerospace business" means a business located in this
123	state which is engaged in aerospace, as defined in s. 331.303.
124	(b)  "Qualified employee" means a resident of this state
125	who:
126	1.  Is first employed or reemployed by an aerospace
127	business on or after January 1, 2012;
128	2.  Received an undergraduate or graduate degree from a
129	college or university that is accredited by a national
130	accrediting body; received a technical degree or certification
131	related to aerospace from a technical training institution; or
132	completed an aerospace development workforce training program
133	coordinated by Workforce Florida, Inc.;
134	3.  Is not an owner, partner, or majority stockholder of an
135	aerospace business; and
136	4.  Is employed for at least 6 months.
137	(c)  "Tuition reimbursed to a qualified employee" means a
138	lump-sum payment by an aerospace business to a qualified
139	employee, which may not exceed the average annual tuition, as
140	reported by the Board of Governors of the State University
141	System, for a Florida resident who is a full-time undergraduate
142	student enrolled in a public college or university. The term
143	does not include the cost of books, fees, or room and board.
144	(2)  AEROSPACE-SECTOR JOBS TAX CREDIT.-
145	(a)  A credit against the tax imposed under this chapter
146	may be claimed by an aerospace business for compensation paid to
147	a qualified employee.
148	(b)  The credit authorized by this subsection shall equal
149	10 percent of the compensation paid for the first through fifth
150	years of employment in this state by an aerospace business.
151	(c)  The credit authorized by this subsection may not
152	exceed $12,500 annually for each qualified employee.
153	(d)  This credit applies only with respect to wages subject
154	to unemployment tax.
155	(e)  If the credit is not fully used in any one year, the
156	unused amount may be carried forward for a period not to exceed
157	5 years. The carryover credit may be used in a subsequent year
158	if the tax imposed by this chapter for such year exceeds the
159	credit for such year after applying the other credits and unused
160	credit carryovers in the order provided in s. 220.02(8).
161	(3)  TUITION REIMBURSEMENT TAX CREDIT.-
162	(a)  A credit against the tax imposed under this chapter
163	may be claimed by an aerospace business for 50 percent of
164	tuition reimbursed to a qualified employee in a tax year.
165	(b)  The credit may be claimed only if the qualified
166	employee was awarded an undergraduate or graduate degree, a
167	technical certification, or a certification from a training
168	program coordinated by Workforce Florida, Inc., within 1 year
169	after commencing employment with the business requesting the
170	credit, and may be claimed within 4 years after employment of
171	the qualified employee.
172	(c)  If this credit is not fully used in any one year, the
173	unused amount may be carried forward for a period not to exceed
174	5 years. The carryover credit may be used in a subsequent year
175	if the tax imposed under this chapter for such year exceeds the
176	credit for such year after applying the other credits and unused
177	credit carryovers in the order provided in s. 220.02(8).
178	(4)  MAXIMUM CREDITS FOR AN AEROSPACE BUSINESS.-The maximum
179	amount of credits under this section which may be claimed by any
180	single aerospace business in a calendar year is $200,000.
181	(5)  ANNUAL LIMIT ON TAX CREDITS.-The total amount of
182	credits that may be granted under this section is $2 million in
183	any calendar year. A credit that is claimed after the $2 million
184	limit is reached shall be disallowed.
185	(6)  DUPLICATION OF TAX CREDITS.-A business may not claim
186	an aerospace-sector jobs tax credit and a tuition reimbursement
187	tax credit, or any other state tax credit or tax incentive
188	refund, for the same qualified employee.
189	(7)  APPLICATION FOR TAX CREDITS.-
190	(a)  An aerospace business must apply to the department for
191	authorization to claim an aerospace-sector jobs tax credit or a
192	tuition reimbursement tax credit. The application must be filed
193	under oath and include:
194	1.  The name and address of the business and documentation
195	that the business is an aerospace business.
196	2.  For each employee for which a tax credit is sought:
197	a.  The employee's name and documentation that the employee
198	is a qualified employee.
199	b.  The salary or hourly wages, including the hourly wages
200	subject to unemployment tax paid to the qualified employee.
201	c.  The location of the community college, college,
202	university, technical institution, or training program
203	coordinated by Workforce Florida, Inc., from which the qualified
204	employee received his or her degree or certification.
205	d.  A statement as to whether the applicant is seeking an
206	aerospace-sector jobs tax credit or a tuition reimbursement tax
207	credit.
208	(b)  The applicant for a tax credit has the burden of
209	demonstrating to the satisfaction of the department that it
210	meets the requirements of this section.
211	(8)  LIMITS ON THE CARRY OVER OF TAX CREDITS.-An aerospace
212	business may not carry over more tax credits in an amended
213	return than were claimed on the original return for the taxable
214	year. This subsection does not limit increases in the amount of
215	credit claimed on an amended return due to the use of any credit
216	amount previously carried over pursuant to paragraph (2)(e) or
217	paragraph (3)(c).
218	(9)  PENALTIES.-
219	(a)  Any person who fraudulently claims a credit under this
220	section is liable for repayment of the credit, plus a mandatory
221	penalty in the amount of 200 percent of the credit, plus
222	interest at the rate provided in s. 220.807, and commits a
223	felony of the third degree, punishable as provided in s.
224	775.082, s. 775.083, or s. 775.084.
225	(b)  Any person who makes an underpayment of tax as a
226	result of a grossly overstated claim for this credit commits a
227	felony of the third degree, punishable as provided in s.
228	775.082, s. 775.083, or s. 775.084. As used in this paragraph,
229	the term "grossly overstated claim" means a claim in an amount
230	in excess of 100 percent of the amount of credit allowable under
231	this section.
232	(10)  RULEMAKING.-The department may adopt rules to
233	prescribe any necessary forms required to claim a tax credit
234	under this section and to provide guidelines and procedures
235	required to administer this section.
236	(11)  EXPIRATION.-This section, except paragraphs (2)(e)
237	and (3)(c) and subsection (8), expires December 31, 2021. An
238	aerospace business may not claim a new tax credit under this
239	section after that date. However, an aerospace business may
240	claim tax credits carried over pursuant to paragraph (2)(e) or
241	paragraph (3)(c).
242	Section 4.  This act shall take effect January 1, 2012, and
243	applies to tax years beginning on or after that date.

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