Florida Senate - 2018                        COMMITTEE AMENDMENT
       Bill No. SB 502
       
       
       
       
       
       
                                Ì848256BÎ848256                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/20/2018           .                                
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       Appropriations Subcommittee on Finance and Tax (Stargel)
       recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Between lines 29 and 30
    4  insert:
    5         Section 2. Paragraph (e) of subsection (1) of section
    6  220.13, Florida Statutes, is amended to read:
    7         220.13 “Adjusted federal income” defined.—
    8         (1) The term “adjusted federal income” means an amount
    9  equal to the taxpayer’s taxable income as defined in subsection
   10  (2), or such taxable income of more than one taxpayer as
   11  provided in s. 220.131, for the taxable year, adjusted as
   12  follows:
   13         (e) Adjustments related to federal acts.—Taxpayers shall be
   14  required to make the adjustments prescribed in this paragraph
   15  for Florida tax purposes with respect to certain tax benefits
   16  received pursuant to the Economic Stimulus Act of 2008, the
   17  American Recovery and Reinvestment Act of 2009, the Small
   18  Business Jobs Act of 2010, the Tax Relief, Unemployment
   19  Insurance Reauthorization, and Job Creation Act of 2010, the
   20  American Taxpayer Relief Act of 2012, the Tax Increase
   21  Prevention Act of 2014, and the Consolidated Appropriations Act,
   22  2016, and the Tax Cuts and Jobs Act of 2017.
   23         1. There shall be added to such taxable income an amount
   24  equal to 100 percent of any amount deducted for federal income
   25  tax purposes as bonus depreciation for the taxable year pursuant
   26  to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
   27  amended by s. 103 of Pub. L. No. 110-185, s. 1201 of Pub. L. No.
   28  111-5, s. 2022 of Pub. L. No. 111-240, s. 401 of Pub. L. No.
   29  111-312, s. 331 of Pub. L. No. 112-240, s. 125 of Pub. L. No.
   30  113-295, and s. 143 of Division Q of Pub. L. No. 114-113, and s.
   31  13201 of Pub. L. No. 115-97, for property placed in service
   32  after December 31, 2007, and before January 1, 2027 2021. For
   33  the taxable year and for each of the 6 subsequent taxable years,
   34  there shall be subtracted from such taxable income an amount
   35  equal to one-seventh of the amount by which taxable income was
   36  increased pursuant to this subparagraph, notwithstanding any
   37  sale or other disposition of the property that is the subject of
   38  the adjustments and regardless of whether such property remains
   39  in service in the hands of the taxpayer.
   40         2. There shall be added to such taxable income an amount
   41  equal to 100 percent of any amount in excess of $128,000
   42  deducted for federal income tax purposes for the taxable year
   43  pursuant to s. 179 of the Internal Revenue Code of 1986, as
   44  amended by s. 102 of Pub. L. No. 110-185, s. 1202 of Pub. L. No.
   45  111-5, s. 2021 of Pub. L. No. 111-240, s. 402 of Pub. L. No.
   46  111-312, s. 315 of Pub. L. No. 112-240, and s. 127 of Pub. L.
   47  No. 113-295, for taxable years beginning after December 31,
   48  2007, and before January 1, 2015. For the taxable year and for
   49  each of the 6 subsequent taxable years, there shall be
   50  subtracted from such taxable income one-seventh of the amount by
   51  which taxable income was increased pursuant to this
   52  subparagraph, notwithstanding any sale or other disposition of
   53  the property that is the subject of the adjustments and
   54  regardless of whether such property remains in service in the
   55  hands of the taxpayer.
   56         3. There shall be added to such taxable income an amount
   57  equal to the amount of deferred income not included in such
   58  taxable income pursuant to s. 108(i)(1) of the Internal Revenue
   59  Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
   60  shall be subtracted from such taxable income an amount equal to
   61  the amount of deferred income included in such taxable income
   62  pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
   63  as amended by s. 1231 of Pub. L. No. 111-5.
   64         4. Subtractions available under this paragraph may be
   65  transferred to the surviving or acquiring entity following a
   66  merger or acquisition and used in the same manner and with the
   67  same limitations as specified by this paragraph.
   68         5. The additions and subtractions specified in this
   69  paragraph are intended to adjust taxable income for Florida tax
   70  purposes, and, notwithstanding any other provision of this code,
   71  such additions and subtractions shall be permitted to change a
   72  taxpayer’s net operating loss for Florida tax purposes.
   73         Section 3. The Legislature recognizes that the Tax Cuts and
   74  Jobs Act of 2017 will have significant effects on the state
   75  corporate income tax and on corporate taxpayers when it is fully
   76  implemented. To better understand these effects, the Legislature
   77  finds the following actions are necessary:
   78         (1) The Department of Revenue shall establish a workgroup
   79  to examine how the implementation of the Tax Cuts and Jobs Act
   80  of 2017 will affect the state corporate income tax.
   81         (2) The workgroup must consist of employees of the
   82  department who have expertise in state and federal corporate
   83  income tax and other employees who may assist the workgroup. In
   84  performing its duties, the workgroup shall consult with the
   85  Revenue Estimating Conference. The workgroup must seek and
   86  consider comments from the private sector.
   87         (3) By February 1, 2019, the workgroup shall submit a
   88  report to the Governor, the President of the Senate, the Speaker
   89  of the House, and the chairs of appropriate legislative
   90  committees. At a minimum, the report must address the following:
   91         (a) A comprehensive discussion of any issues the workgroup
   92  determines will have an effect on the state corporate tax
   93  structure and on corporate tax revenues.
   94         (b) Options for changes to state tax law which may be
   95  needed to integrate state law with federal law.
   96         (c) The potential fiscal impact of each option on the state
   97  and on taxpayers.
   98         (d) Whether the workgroup should be extended.
   99         (e) Any other information the workgroup determines will
  100  assist the Legislature.
  101         (4) The workgroup shall submit status reports to the chairs
  102  of appropriate legislative committees on May 15, 2018, July 15,
  103  2018, September 15, 2018, and November 15, 2018. At a minimum,
  104  the status reports must include a brief description of the
  105  workgroup’s activities and any guidance issued by the Internal
  106  Revenue Service relevant to the workgroups duties.
  107  
  108  ================= T I T L E  A M E N D M E N T ================
  109  And the title is amended as follows:
  110         Delete line 4
  111  and insert:
  112         Internal Revenue Code; amending s. 220.13, F.S.;
  113         revising the definition of the term “adjusted federal
  114         income” relating to adjustments related to federal
  115         acts; providing legislative findings; requiring the
  116         Department of Revenue to establish a workgroup for
  117         certain purposes; specifying the composition of the
  118         workgroup; requiring the workgroup to consult with the
  119         Revenue Estimating Conference and seek and consider
  120         comments from the private sector; requiring the
  121         workgroup to submit a specified report to the Governor
  122         and Legislature by a specified date; requiring the
  123         workgroup to submit status reports to appropriate
  124         legislative committees on specified dates; providing
  125         retroactive