CODING: Words stricken are deletions; words underlined are additions.House Bill 0119
Florida House of Representatives - 1997 HB 119
By Representative Culp
1 A bill to be entitled
2 An act relating to credits against taxes;
3 amending s. 220.02, F.S.; providing the order
4 of credits against the corporate income tax or
5 franchise tax; amending s. 220.03, F.S.;
6 revising the definition of "child care facility
7 startup costs" and defining "operation of a
8 child care facility"; amending s. 220.12, F.S.;
9 revising the definition of a taxpayer's net
10 income for corporate income tax purposes to
11 delete the deduction of child care facility
12 startup costs; creating s. 220.19, F.S.;
13 authorizing a credit against the corporate
14 income tax for child care facility startup
15 costs and operation; providing limitations;
16 requiring a recipient to refund a portion of
17 tax credits received under certain conditions;
18 providing eligibility and application
19 requirements; providing for administration by
20 the Department of Revenue; providing for future
21 expiration; creating s. 624.5107, F.S.;
22 authorizing a credit against insurance premium
23 taxes for child care facility startup costs and
24 operation; providing definitions; providing
25 limitations; requiring a recipient to refund a
26 portion of tax credits received under certain
27 conditions; providing eligibility and
28 application requirements; providing for
29 administration by the Department of Revenue;
30 providing for future expiration; providing an
31 effective date.
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Florida House of Representatives - 1997 HB 119
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1 Be It Enacted by the Legislature of the State of Florida:
2
3 Section 1. Subsection (10) of section 220.02, Florida
4 Statutes, is amended to read:
5 220.02 Legislative intent.--
6 (10) It is the intent of the Legislature that credits
7 against either the corporate income tax or the franchise tax
8 be applied in the following order: those enumerated in s.
9 220.68, those enumerated in s. 631.719(1), those enumerated in
10 s. 631.705, those enumerated in s. 220.18, those enumerated in
11 s. 631.828, those enumerated in s. 220.181, those enumerated
12 in s. 220.183, those enumerated in s. 220.182, those
13 enumerated in s. 221.02, those enumerated in s. 220.184, those
14 enumerated in s. 220.186, and those enumerated in s. 220.188,
15 and those enumerated in s. 220.19.
16 Section 2. Paragraph (cc) of subsection (1) of section
17 220.03, Florida Statutes, 1996 Supplement, is amended, and
18 paragraph (gg) is added to said subsection, to read:
19 220.03 Definitions.--
20 (1) SPECIFIC TERMS.--When used in this code, and when
21 not otherwise distinctly expressed or manifestly incompatible
22 with the intent thereof, the following terms shall have the
23 following meanings:
24 (cc) "Child care facility startup costs" means
25 expenditures for equipment, including playground equipment and
26 kitchen appliances and cooking equipment, and real property,
27 including land and improvements, used to establish a child
28 care facility as defined by s. 402.302(4) which is located in
29 this the state on the taxpayer's premises or within 5 miles of
30 the employees' workplace and used exclusively by the employees
31 of the taxpayer.
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1 (gg) "Operation of a child care facility" means
2 operation of a child care facility as defined by s. 402.302(4)
3 which is located in this state on the taxpayer's premises and
4 used exclusively by the employees of the taxpayer.
5 Section 3. Section 220.12, Florida Statutes, 1996
6 Supplement, is amended to read:
7 220.12 "Net income" defined.--For purposes of this
8 code, a taxpayer's net income for a taxable year shall be its
9 adjusted federal income, or that share of its adjusted federal
10 income for such year which is apportioned to this state under
11 s. 220.15, plus nonbusiness income allocated to this state
12 pursuant to s. 220.16, less child care facility startup costs
13 as defined by s. 220.03(1)(dd), less the exemption allowed by
14 s. 220.14.
15 Section 4. Section 220.19, Florida Statutes, is
16 created to read:
17 220.19 Child care tax credit.--
18 (1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
19 (a) A credit of 50 percent of the startup costs of
20 child care facilities is allowed against any tax due for a
21 taxable year under this chapter. A credit against such tax is
22 also allowed for the operation of a child care facility, which
23 credit is in the amount of $50 per month for each child
24 enrolled in the facility.
25 (b) A corporation may not receive more than $50,000 in
26 annual tax credits for all approved child care costs that the
27 corporation incurs in any one year.
28 (c) The total amount of tax credits which may be
29 granted for all programs approved under this section and s.
30 624.5107 is $2 million annually.
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1 (d) An application for tax credit under this section
2 must be approved by the executive director of the department.
3 (e) If the credit granted under this section is not
4 fully used in any one year because of insufficient tax
5 liability on the part of the corporation, the unused amount
6 may be carried forward for a period not to exceed 5 years.
7 The carryover credit may be used in a subsequent year when the
8 tax imposed by this chapter for that year exceeds the credit
9 for which the corporation is eligible in that year under this
10 section after applying the other credits and unused carryovers
11 in the order provided by s. 220.02(10).
12 (f) If a corporation that receives a credit for child
13 care facility startup costs fails to operate that facility for
14 at least 5 years, a pro rata share of the credit must be
15 repaid, in accordance with the formula: A = C x (1 - (N/60)),
16 where:
17 1. "A" is the amount in dollars of the required
18 repayment.
19 2. "C" is the total credits taken by the corporation
20 for child care facility startup costs.
21 3. "N" is the number of months the facility was in
22 operation.
23
24 This repayment requirement is inapplicable if the corporation
25 goes out of business or can demonstrate to the department that
26 its employees no longer want to have a child care facility.
27 (g) A taxpayer that files a consolidated return in
28 this state as a member of an affiliated group under s.
29 220.131(1) may be allowed the credit on a consolidated return
30 basis.
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1 (h) A taxpayer that is eligible to receive credit
2 under s. 624.5107 is ineligible to receive credit under this
3 section.
4 (2) ELIGIBILITY REQUIREMENTS.--
5 (a) A child care facility for which a corporation
6 claims a child care tax credit must be a child care facility
7 as defined by s. 402.302 and must be licensed in accordance
8 with s. 402.305.
9 (b) The services of a child care facility for which a
10 corporation claims a child care tax credit must be available
11 to all employees of the corporation whose workplace is within
12 5 miles of the child care facility, or must be allocated on a
13 first-come, first-served basis, and must be used exclusively
14 by employees of the taxpayer.
15 (c) Two or more corporations may join together to
16 start and to operate a child care facility according to the
17 provisions of this section. If two or more corporations
18 choose to jointly operate a child care facility, the facility
19 must be used exclusively by the employees of the cooperating
20 corporations and the corporations must file a joint
21 application with the department, pursuant to subsection (3),
22 setting forth their proposal. The participating corporations
23 may proportion the annual child care costs credits in any
24 manner they choose as appropriate, but no jointly operated
25 corporate child care facility established under this section
26 may receive more than $50,000 in annual tax credits for all
27 approved child care costs that the participating corporations
28 incur in any one year.
29 (3) APPLICATION REQUIREMENTS.--Any corporation that
30 wishes to participate in this program must submit to the
31 department an application for tax credit which sets forth the
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1 proposal for establishing a child care facility for the
2 exclusive use of its employees. This application must state
3 the anticipated startup costs and the number of children to be
4 enrolled.
5 (4) ADMINISTRATION.--
6 (a) The Department of Revenue may adopt all rules
7 necessary to administer this section, including rules for the
8 approval or disapproval of proposals submitted by
9 corporations.
10 (b) The executive director's decision to approve or
11 disapprove a proposal must be in writing, and, if the proposal
12 is approved, the decision must state the maximum credit
13 allowable to the corporation.
14 (5) EXPIRATION.--This section expires on June 30,
15 2007, except that paragraph (1)(e), which relates to carryover
16 credits, and paragraph (1)(f), which relates to repaying tax
17 credits in specified circumstances, do not expire on that
18 date.
19 Section 5. Section 624.5107, Florida Statutes, is
20 created to read:
21 624.5107 Child care facility tax credit; definitions;
22 authorization; limitations; eligibility and application
23 requirements; administration; expiration.--
24 (1) DEFINITIONS.--As used in this section:
25 (a) "Child care facility startup costs" means
26 expenditures for equipment, including playground equipment and
27 kitchen appliances and cooking equipment, and for real
28 property, including land and improvements, used to establish a
29 child care facility as defined by s. 402.302 which is located
30 in this state on the insurer's premises and used exclusively
31 by the employees of the insurer.
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1 (b) "Operation of a child care facility" means
2 operation of a child care facility as defined by s. 402.302
3 which is located in this state on the insurer's premises and
4 used exclusively by the employees of the insurer.
5 (c) "Department" means the Department of Revenue.
6 (d) "Executive director" means the executive director
7 of the Department of Revenue.
8 (2) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
9 (a) A credit of 50 percent of child care facility
10 startup costs is allowed against any tax due for a taxable
11 year under s. 624.509 or s. 624.510. A credit against such
12 tax is also allowed for the operation of a child care
13 facility, which credit is in the amount of $50 per month for
14 each child enrolled in the facility.
15 (b) An insurer may not receive more than $50,000 in
16 annual tax credits for all approved child care costs that the
17 insurer incurs in any one year.
18 (c) The total amount of tax credits which may be
19 granted for all programs approved under this section and s.
20 220.19 is $2 million annually.
21 (d) An application for tax credit under this section
22 must be approved by the executive director.
23 (e) If the credit granted under this section is not
24 fully used in any one year because of insufficient tax
25 liability on the part of the insurer, the unused amount may be
26 carried forward for a period not to exceed 5 years. The
27 carryover credit may be used in a subsequent year when the tax
28 imposed by s. 624.509 or s. 624.510 for that year exceeds the
29 credit for which the insurer is eligible in that year under
30 this section.
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1 (f) If an insurer that receives a credit for child
2 care facility startup costs fails to operate that facility for
3 at least 5 years, a pro rata share of the credit must be
4 repaid, in accordance with the formula: A = C x (1 - (N/60)),
5 where:
6 1. "A" is the amount in dollars of the required
7 repayment.
8 2. "C" is the total credits taken by the insurer for
9 child care facility startup costs.
10 3. "N" is the number of months the facility was in
11 operation.
12
13 This repayment requirement is inapplicable if the insurer goes
14 out of business or can demonstrate to the department that its
15 employees no longer want to have a child care facility.
16 (3) ELIGIBILITY REQUIREMENTS.--
17 (a) A child care facility for which an insurer claims
18 a child care tax credit must be a child care facility as
19 defined by s. 402.302 and must be licensed in accordance with
20 s. 402.305.
21 (b) The services of a child care facility for which an
22 insurer claims a child care tax credit must be available to
23 all employees of the insurer whose workplace is within 5 miles
24 of the child care facility, or must be allocated on a
25 first-come, first-served basis, and must be used exclusively
26 by employees of the insurer.
27 (4) APPLICATION REQUIREMENTS.--Any insurer that wishes
28 to participate in this program must submit to the department
29 an application for tax credit which sets forth the proposal
30 for establishing a child care facility for the exclusive use
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1 of its employees. This application must state the anticipated
2 startup costs and the number of children to be enrolled.
3 (5) ADMINISTRATION.--
4 (a) The Department of Revenue may adopt all rules
5 necessary to administer this section, including rules for the
6 approval or disapproval of proposals submitted by insurers.
7 (b) The executive director's decision to approve or
8 disapprove a proposal must be in writing, and, if the proposal
9 is approved, the decision must state the maximum credit
10 allowable to the insurer.
11 (6) EXPIRATION.--This section expires on June 30,
12 2007, except that paragraph (2)(e), which relates to carryover
13 credits, and paragraph (2)(f), which relates to repaying tax
14 credits in specified circumstances, do not expire on that
15 date.
16 Section 6. This act shall take effect June 30, 1997.
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19 HOUSE SUMMARY
20
Provides a credit against the corporate income tax or
21 insurance premium taxes for 50 percent of child care
facility startup costs, and for operation of the facility
22 in the amount of $50 per month per child enrolled in the
facility. Provides limitations and requires refund of a
23 pro rata portion of the startup credit if the facility is
not operated for 5 years. Provides for administration by
24 the Department of Revenue and for expiration of the
credits in 10 years.
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