Florida Senate - 2014 COMMITTEE AMENDMENT
Bill No. SB 596
Ì817598eÎ817598
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
03/03/2014 .
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following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Section 288.1046, Florida Statutes, is created
6 to read:
7 288.1046 Defense Works in Florida Incentive.—
8 (1) As used in this section, the term:
9 (a) “Florida prime contractor” means a business entity
10 operating in this state that is awarded a prime contract.
11 (b) “Florida small business subcontractor” means a business
12 entity that:
13 1. Maintains its primary place of business in the state;
14 2. Has 250 or fewer employees at the time a qualified
15 subcontract award is made;
16 3. Is awarded a subcontract from a Florida prime
17 contractor; and
18 4. Has no subsidiary or affiliate business relationship to
19 the prime contractor making the award.
20 (c) “Prime contract” means a contract that is awarded
21 directly from the Federal Government.
22 (d) “Qualified defense work” means a prime contract awarded
23 for manufacturing, engineering, construction, distribution,
24 research, development, or other activities related to equipment,
25 supplies, technology, or other goods or services that directly
26 or indirectly support the United States Armed Forces or that can
27 be reasonably determined to support national security, including
28 space related activities. The term does not include contracts
29 awarded before October 1, 2013.
30 (e) “Qualified subcontract award” means qualified defense
31 work, in part or in whole, subcontracted from a Florida prime
32 contractor to a Florida small business subcontractor, which is
33 executed in the state and valued at more than $250,000.
34 (2) A Florida prime contractor may apply to the department
35 to certify that it may reduce its computation of adjusted
36 federal income under s. 220.13 by an amount equal to 4 percent
37 of the subcontract award if such prime contractor:
38 (a) Is subject to chapter 220;
39 (b) Is awarded qualified defense work; and
40 (c) Awards a qualified subcontract award.
41 (3) A Florida prime contractor may claim the incentive
42 under subsection (2) only for taxable years beginning on or
43 after January 1, 2014, and must apply separately to the
44 department for each qualified subcontract award and provide the
45 department required documentation, including, but not limited
46 to, the application for the award and copies of contracts, tax
47 records, or employment records.
48 (4) The department may establish application, approval,
49 appeal, and accountability processes as necessary. The
50 department may consult with Enterprise Florida, Inc., and the
51 Florida Defense Support Task Force as necessary to administer
52 this section.
53 (a) Within 10 days after certifying a qualified subcontract
54 award, the department shall provide:
55 1. A letter certifying the award to the applicant; and
56 2. A copy of the letter certifying the award to the
57 Department of Revenue.
58 (b) The department may certify, for each Florida prime
59 contractor applicant per calendar year, up to $250 million in
60 aggregate qualified subcontract awards, equaling up to $10
61 million in reduced taxable income and up to $550,000 in reduced
62 taxes.
63 (c) The department may certify in total, per calendar year,
64 up to $2.5 billion in aggregate qualified subcontract awards,
65 equaling up to $100 million in reduced taxable income and up to
66 $5.5 million in reduced taxes.
67 (d) For a multiyear qualified subcontract award:
68 1. The department shall certify the full amount of the
69 award under paragraphs (b) and (c) in the calendar year it was
70 awarded; and
71 2. The Florida prime contractor may claim the incentive in
72 the taxable year in which payment is made to the Florida small
73 business subcontractor.
74 (5) The department and the Department of Revenue may adopt
75 rules to administer this section.
76 Section 2. Paragraph (b) of subsection (1) of 220.13,
77 Florida Statutes, is amended to read:
78 220.13 “Adjusted federal income” defined.—
79 (1) The term “adjusted federal income” means an amount
80 equal to the taxpayer’s taxable income as defined in subsection
81 (2), or such taxable income of more than one taxpayer as
82 provided in s. 220.131, for the taxable year, adjusted as
83 follows:
84 (b) Subtractions.—
85 1. There shall be subtracted from such taxable income:
86 a. The net operating loss deduction allowable for federal
87 income tax purposes under s. 172 of the Internal Revenue Code
88 for the taxable year, except that any net operating loss that is
89 transferred pursuant to s. 220.194(6) may not be deducted by the
90 seller;,
91 b. The net capital loss allowable for federal income tax
92 purposes under s. 1212 of the Internal Revenue Code for the
93 taxable year;,
94 c. The excess charitable contribution deduction allowable
95 for federal income tax purposes under s. 170(d)(2) of the
96 Internal Revenue Code for the taxable year;, and
97 d. The excess contributions deductions allowable for
98 federal income tax purposes under s. 404 of the Internal Revenue
99 Code for the taxable year.
100
101 However, a net operating loss and a capital loss shall never be
102 carried back as a deduction to a prior taxable year, but all
103 deductions attributable to such losses shall be deemed net
104 operating loss carryovers and capital loss carryovers,
105 respectively, and treated in the same manner, to the same
106 extent, and for the same time periods as are prescribed for such
107 carryovers in ss. 172 and 1212, respectively, of the Internal
108 Revenue Code.
109 2. There shall be subtracted from such taxable income any
110 amount to the extent included therein the following:
111 a. Dividends treated as received from sources without the
112 United States, as determined under s. 862 of the Internal
113 Revenue Code.
114 b. All amounts included in taxable income under s. 78 or s.
115 951 of the Internal Revenue Code.
116
117 However, as to any amount subtracted under this subparagraph,
118 there shall be added to such taxable income all expenses
119 deducted on the taxpayer’s return for the taxable year which are
120 attributable, directly or indirectly, to such subtracted amount.
121 Further, no amount shall be subtracted with respect to dividends
122 paid or deemed paid by a Domestic International Sales
123 Corporation.
124 3. In computing “adjusted federal income” for taxable years
125 beginning after December 31, 1976, there shall be allowed as a
126 deduction the amount of wages and salaries paid or incurred
127 within this state for the taxable year for which no deduction is
128 allowed pursuant to s. 280C(a) of the Internal Revenue Code
129 (relating to credit for employment of certain new employees).
130 4. There shall be subtracted from such taxable income any
131 amount of nonbusiness income included therein.
132 5. There shall be subtracted any amount of taxes of foreign
133 countries allowable as credits for taxable years beginning on or
134 after September 1, 1985, under s. 901 of the Internal Revenue
135 Code to any corporation which derived less than 20 percent of
136 its gross income or loss for its taxable year ended in 1984 from
137 sources within the United States, as described in s.
138 861(a)(2)(A) of the Internal Revenue Code, not including credits
139 allowed under ss. 902 and 960 of the Internal Revenue Code,
140 withholding taxes on dividends within the meaning of sub
141 subparagraph 2.a., and withholding taxes on royalties, interest,
142 technical service fees, and capital gains.
143 6. There shall be subtracted from such taxable income 4
144 percent of the amount of the subcontract award certified by the
145 Department of Economic Opportunity pursuant to s. 288.1046.
146 7. Notwithstanding any other provision of this code, except
147 with respect to amounts subtracted pursuant to subparagraphs 1.
148 and 3., any increment of any apportionment factor which is
149 directly related to an increment of gross receipts or income
150 which is deducted, subtracted, or otherwise excluded in
151 determining adjusted federal income shall be excluded from both
152 the numerator and denominator of such apportionment factor.
153 Further, all valuations made for apportionment factor purposes
154 shall be made on a basis consistent with the taxpayer’s method
155 of accounting for federal income tax purposes.
156 Section 3. This act shall take effect July 1, 2014.
157
158 ================= T I T L E A M E N D M E N T ================
159 And the title is amended as follows:
160 Delete everything before the enacting clause
161 and insert:
162 A bill to be entitled
163 An act relating to defense contracting; creating s.
164 288.1046, F.S.; defining terms; authorizing certain
165 prime contractors to apply to the Department of
166 Economic Opportunity to certify that such contractors
167 may reduce their computation of adjusted federal
168 income by a certain amount when awarded a prime
169 contract; providing requirements to apply for a
170 reduction in computation of income; requiring a prime
171 contractor to apply separately for each qualified
172 subcontract award and to provide documentation;
173 providing guidelines for the department to certify an
174 award; authorizing the department and the Department
175 of Revenue to adopt rules; amending s. 220.13, F.S.;
176 revising the definition of the term “adjusted federal
177 income” for corporate income tax purposes; providing
178 for certain reduction in computation of income, to
179 conform; providing an effective date.