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