Florida Senate - 2012 SB 160 By Senator Ring 32-00087-12 2012160__ 1 A bill to be entitled 2 An act relating to employment of the homeless; 3 amending s. 220.02, F.S.; specifying the order for 4 applying the tax credit for employment of the 5 homeless; amending s. 220.13, F.S.; redefining the 6 term “adjusted federal income” to include an 7 adjustment for such tax credit; creating s. 220.197, 8 F.S.; providing definitions; providing a tax credit 9 for a corporation that hires a homeless person 10 residing in a transitional, permanent supportive, or 11 permanent housing facility; specifying the information 12 that must be provided to the Department of Revenue 13 when applying for the credit; providing for the 14 carryover of unused credits; requiring that the 15 application be filed with the department by a 16 specified date each year; providing penalties for 17 fraudulently claiming the tax credit; limiting the 18 total amount of tax credits that may be granted per 19 taxable year; authorizing the department to adopt 20 rules; providing for the expiration of the tax credit; 21 requiring that the department collect certain data; 22 providing an effective date. 23 24 Be It Enacted by the Legislature of the State of Florida: 25 26 Section 1. Subsection (8) of section 220.02, Florida 27 Statutes, is amended to read: 28 220.02 Legislative intent.— 29 (8) It is the intent of the Legislature that credits 30 against either the corporate income tax or the franchise tax be 31 applied in the following order: those enumerated in s. 631.828, 32 those enumerated in s. 220.191, those enumerated in s. 220.181, 33 those enumerated in s. 220.183, those enumerated in s. 220.182, 34 those enumerated in s. 220.1895, those enumerated in s. 220.195, 35 those enumerated in s. 220.184, those enumerated in s. 220.186, 36 those enumerated in s. 220.1845, those enumerated in s. 220.19, 37 those enumerated in s. 220.185, those enumerated in s. 220.1875, 38 those enumerated in s. 220.192, those enumerated in s. 220.193, 39 those enumerated in s. 288.9916, those enumerated in s. 40 220.1899, those enumerated in s. 220.1896, those enumerated in 41 s. 220.194,andthose enumerated in s. 220.196, and those 42 enumerated under s. 220.197. 43 Section 2. Paragraph (a) of subsection (1) of section 44 220.13, Florida Statutes, is amended to read: 45 220.13 “Adjusted federal income” defined.— 46 (1) The term “adjusted federal income” means an amount 47 equal to the taxpayer’s taxable income as defined in subsection 48 (2), or such taxable income of more than one taxpayer as 49 provided in s. 220.131, for the taxable year, adjusted as 50 follows: 51 (a) Additions.—There shall be added to such taxable income: 52 1. The amount of any tax upon or measured by income, 53 excluding taxes based on gross receipts or revenues, paid or 54 accrued as a liability to the District of Columbia or any state 55 of the United States which is deductible from gross income in 56 the computation of taxable income for the taxable year. 57 2. The amount of interest which is excluded from taxable 58 income under s. 103(a) of the Internal Revenue Code or any other 59 federal law, less the associated expenses disallowed in the 60 computation of taxable income under s. 265 of the Internal 61 Revenue Code or any other law, excluding 60 percent of any 62 amounts included in alternative minimum taxable income, as 63 defined in s. 55(b)(2) of the Internal Revenue Code, if the 64 taxpayer pays tax under s. 220.11(3). 65 3. In the case of a regulated investment company or real 66 estate investment trust, an amount equal to the excess of the 67 net long-term capital gain for the taxable year over the amount 68 of the capital gain dividends attributable to the taxable year. 69 4. That portion of the wages or salaries paid or incurred 70 for the taxable year which is equal to the amount of the credit 71 allowable for the taxable year under s. 220.181. This 72 subparagraph shall expire on the date specified in s. 290.016 73 for the expiration of the Florida Enterprise Zone Act. 74 5. That portion of the ad valorem school taxes paid or 75 incurred for the taxable year which is equal to the amount of 76 the credit allowable for the taxable year under s. 220.182. This 77 subparagraph shall expire on the date specified in s. 290.016 78 for the expiration of the Florida Enterprise Zone Act. 79 6. The amount taken as a credit under s. 220.195 which is 80 deductible from gross income in the computation of taxable 81 income for the taxable year. 82 7. That portion of assessments to fund a guaranty 83 association incurred for the taxable year which is equal to the 84 amount of the credit allowable for the taxable year. 85 8. In the case of a nonprofit corporation which holds a 86 pari-mutuel permit and which is exempt from federal income tax 87 as a farmers’ cooperative, an amount equal to the excess of the 88 gross income attributable to the pari-mutuel operations over the 89 attributable expenses for the taxable year. 90 9. The amount taken as a credit for the taxable year under 91 s. 220.1895. 92 10. Up to nine percent of the eligible basis of any 93 designated project which is equal to the credit allowable for 94 the taxable year under s. 220.185. 95 11. The amount taken as a credit for the taxable year under 96 s. 220.1875. The addition in this subparagraph is intended to 97 ensure that the same amount is not allowed for the tax purposes 98 of this state as both a deduction from income and a credit 99 against the tax. This addition is not intended to result in 100 adding the same expense back to income more than once. 101 12. The amount taken as a credit for the taxable year under 102 s. 220.192. 103 13. The amount taken as a credit for the taxable year under 104 s. 220.193. 105 14. Any portion of a qualified investment, as defined in s. 106 288.9913, which is claimed as a deduction by the taxpayer and 107 taken as a credit against income tax pursuant to s. 288.9916. 108 15. The costs to acquire a tax credit pursuant to s. 109 288.1254(5) that are deducted from or otherwise reduce federal 110 taxable income for the taxable year. 111 16. The amount taken as a credit for the taxable year 112 pursuant to s. 220.194. 113 17. The amount taken as a credit for the taxable year under 114 s. 220.196. The addition in this subparagraph is intended to 115 ensure that the same amount is not allowed for the tax purposes 116 of this state as both a deduction from income and a credit 117 against the tax. The addition is not intended to result in 118 adding the same expense back to income more than once. 119 18. The amount taken as a credit for the taxable year under 120 s. 220.197. 121 Section 3. Section 220.197, Florida Statutes, is created to 122 read: 123 220.197 Tax credit for employment of the homeless.— 124 (1) As used in this section, the term: 125 (a) “Continuously employed” means that an employee has 126 worked for the corporation for at least 80 hours during each 30 127 day period and has been employed at least 6 months following the 128 date that the employee began working for the corporation on or 129 after July 1, 2012. 130 (b) “Homeless person” means an individual whose primary 131 nighttime residence is a transitional, permanent supportive, or 132 permanent housing facility. 133 (c) “Transitional, permanent supportive, or permanent 134 housing facility” means a facility located in the state which 135 is: 136 1. A supervised, publicly or privately operated shelter 137 that is designed to provide temporary living accommodations, 138 including welfare hotels, congregate shelters, and transitional 139 housing for the mentally ill, and that receives federal homeless 140 assistance funding distributed by the United States Department 141 of Housing and Urban Development. 142 2. An emergency shelter that receives county homeless 143 assistance funding. 144 (2) For taxable years beginning on or after January 1, 145 2013, a tax credit of $1,000 shall be allowed to a corporation 146 against any corporate income tax due under this chapter if the 147 corporation hires a homeless person who resides in an emergency 148 shelter, or a transitional, permanent supportive, or permanent 149 housing facility at the time he or she begins employment and who 150 remains continuously employed by the corporation for at least 6 151 months. The tax credit may be taken only once per new employee. 152 (3) Upon applying for the credit, the corporation must 153 provide the department with the following information: 154 (a) For each new employee for whom the credit is claimed: 155 1. The employee’s name, social security number, and current 156 address or, if the employee is no longer employed, the last 157 known address of the person while employed by the corporation; 158 2. The address of the transitional, permanent supportive, 159 or permanent housing facility where the employee was residing at 160 the time he or she began employment and documentation from the 161 facility which demonstrates that the employee qualified for and 162 was residing at the facility at the time he or she began 163 employment; and 164 3. The salary or hourly wages paid to the new employee 165 during the taxable year. 166 (b) The total salary or hourly wages paid during the 167 taxable year to each employee who is still employed by the 168 corporation and for whom the tax credit was claimed in a prior 169 taxable year. 170 (4) If the credit is not fully used in any one year, the 171 unused amount may be carried forward for up to 5 years. The 172 carryover credit may be used in a subsequent year if the tax 173 imposed by this chapter exceeds the credit for the year after 174 applying any other credits and unused credit carryovers in the 175 order provided in s. 220.02(8). 176 (5) The corporation applying for the credit must 177 affirmatively demonstrate to the satisfaction of the department 178 that it meets the requirements in this section. An application 179 must be filed with the department by February 1 of each year for 180 an allocation of the previous year’s credit. The application 181 must show that all of the requirements in this section were met 182 during the preceding calendar year. 183 (6) Any person who fraudulently claims the credit is liable 184 for payment of the credit, plus a mandatory penalty in the 185 amount of 200 percent of the credit and interest at the rate 186 provided in s. 220.807, and commits a felony of the third 187 degree, punishable as provided in s. 775.082, s. 775.083, or s. 188 775.084. 189 (7) The total amount of tax credit which may be granted 190 under this section is $2 million per calendar year. If the total 191 amount of tax credit for applications submitted in a given 192 calendar year exceeds $2 million, the amount of tax credit per 193 applicant shall be granted on a pro rata basis. If the full 194 amount of the tax credit is not allowed due to the $2 million 195 annual limitation, the balance shall be allowed in the following 196 tax year. The amount not allowed in the previous tax year shall 197 be allowed in full prior to the pro rata allocation of tax 198 credit in the following tax year. 199 (8) The department may adopt rules and forms to administer 200 this section. 201 (9) This section expires December 31, 2017, except for 202 subsections (3) and (8), which expire December 31, 2023. In 203 determining whether to reenact this section, the Legislature 204 shall consider whether the revenue generated from wages paid to 205 qualifying employees outweighs the cost to the state in terms of 206 the amount of taxes waived. The department shall collect and 207 maintain data relating to the total amount of wages paid to 208 employees for whom a tax credit has been claimed in order to 209 assist the Legislature in making its determination. 210 Section 4. This act shall take effect July 1, 2012.