Florida Senate - 2014                        COMMITTEE AMENDMENT
       Bill No. CS for SB 596
       
       
       
       
       
       
                                Ì113672(Î113672                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/02/2014           .                                
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       recommended the following:
       
    1         Senate Amendment to Amendment (731766) 
    2  
    3         Delete lines 37 - 140
    4  and insert:
    5  of the qualified subcontract award if such prime contractor:
    6         (a) Is subject to chapter 220;
    7         (b) Is awarded qualified defense work; and
    8         (c) Awards a qualified subcontract award.
    9         (3) A Florida prime contractor may reduce its adjusted
   10  federal income under subsection (2) only for taxable years
   11  beginning on or after January 1, 2014, and must apply separately
   12  to the department for each qualified subcontract award and
   13  provide the department required documentation, including, but
   14  not limited to, the application for the award and copies of
   15  contracts, tax records, or employment records.
   16         (4) The department may establish application, approval,
   17  appeal, and accountability processes as necessary. The
   18  department may consult with Enterprise Florida, Inc., and the
   19  Florida Defense Support Task Force as necessary to administer
   20  this section.
   21         (a) Within 10 days after certifying a qualified subcontract
   22  award, the department shall provide:
   23         1. A letter certifying the award to the applicant; and
   24         2. A copy of the letter certifying the award to the
   25  Department of Revenue.
   26         (b) The department may certify, for each Florida prime
   27  contractor applicant per calendar year, up to $250 million in
   28  aggregate qualified subcontract awards.
   29         (c) The department may certify in total, per calendar year,
   30  up to $2.5 billion in aggregate qualified subcontract awards.
   31         (d) For a multiyear qualified subcontract award, the
   32  department shall certify the full amount of the award under
   33  paragraphs (b) and (c) in the calendar year it was awarded.
   34         (e) The Florida prime contractor may reduce its adjusted
   35  federal income under subsection (2) in the taxable years in
   36  which payments are made to the Florida small business
   37  subcontractor.
   38         (5) The department and the Department of Revenue may adopt
   39  rules to administer this section.
   40         Section 2. Paragraph (b) of subsection (1) of 220.13,
   41  Florida Statutes, is amended to read:
   42         220.13 “Adjusted federal income” defined.—
   43         (1) The term “adjusted federal income” means an amount
   44  equal to the taxpayer’s taxable income as defined in subsection
   45  (2), or such taxable income of more than one taxpayer as
   46  provided in s. 220.131, for the taxable year, adjusted as
   47  follows:
   48         (b) Subtractions.—
   49         1. There shall be subtracted from such taxable income:
   50         a. The net operating loss deduction allowable for federal
   51  income tax purposes under s. 172 of the Internal Revenue Code
   52  for the taxable year, except that any net operating loss that is
   53  transferred pursuant to s. 220.194(6) may not be deducted by the
   54  seller;,
   55         b. The net capital loss allowable for federal income tax
   56  purposes under s. 1212 of the Internal Revenue Code for the
   57  taxable year;,
   58         c. The excess charitable contribution deduction allowable
   59  for federal income tax purposes under s. 170(d)(2) of the
   60  Internal Revenue Code for the taxable year;, and
   61         d. The excess contributions deductions allowable for
   62  federal income tax purposes under s. 404 of the Internal Revenue
   63  Code for the taxable year.
   64  
   65  However, a net operating loss and a capital loss shall never be
   66  carried back as a deduction to a prior taxable year, but all
   67  deductions attributable to such losses shall be deemed net
   68  operating loss carryovers and capital loss carryovers,
   69  respectively, and treated in the same manner, to the same
   70  extent, and for the same time periods as are prescribed for such
   71  carryovers in ss. 172 and 1212, respectively, of the Internal
   72  Revenue Code.
   73         2. There shall be subtracted from such taxable income any
   74  amount to the extent included therein the following:
   75         a. Dividends treated as received from sources without the
   76  United States, as determined under s. 862 of the Internal
   77  Revenue Code.
   78         b. All amounts included in taxable income under s. 78 or s.
   79  951 of the Internal Revenue Code.
   80  
   81  However, as to any amount subtracted under this subparagraph,
   82  there shall be added to such taxable income all expenses
   83  deducted on the taxpayer’s return for the taxable year which are
   84  attributable, directly or indirectly, to such subtracted amount.
   85  Further, no amount shall be subtracted with respect to dividends
   86  paid or deemed paid by a Domestic International Sales
   87  Corporation.
   88         3. In computing “adjusted federal income” for taxable years
   89  beginning after December 31, 1976, there shall be allowed as a
   90  deduction the amount of wages and salaries paid or incurred
   91  within this state for the taxable year for which no deduction is
   92  allowed pursuant to s. 280C(a) of the Internal Revenue Code
   93  (relating to credit for employment of certain new employees).
   94         4. There shall be subtracted from such taxable income any
   95  amount of nonbusiness income included therein.
   96         5. There shall be subtracted any amount of taxes of foreign
   97  countries allowable as credits for taxable years beginning on or
   98  after September 1, 1985, under s. 901 of the Internal Revenue
   99  Code to any corporation which derived less than 20 percent of
  100  its gross income or loss for its taxable year ended in 1984 from
  101  sources within the United States, as described in s.
  102  861(a)(2)(A) of the Internal Revenue Code, not including credits
  103  allowed under ss. 902 and 960 of the Internal Revenue Code,
  104  withholding taxes on dividends within the meaning of sub
  105  subparagraph 2.a., and withholding taxes on royalties, interest,
  106  technical service fees, and capital gains.
  107         6. There shall be subtracted from such taxable income 4
  108  percent of the amount of the qualified subcontract award
  109  certified by the