Senate Bill 0742c2
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Florida Senate - 1998 CS for CS for SB 742
By the Committees on Education, Commerce and Economic
Opportunities and Senators Clary and Diaz-Balart
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1 A bill to be entitled
2 An act relating to sponsored research and
3 development; amending s. 220.15, F.S.;
4 providing that certain property and payroll
5 associated with sponsored research and
6 development at certain universities will be
7 disregarded in calculating apportionment of
8 adjusted federal income and that such research
9 will not, alone, cause a corporation to incur
10 state income tax liability; defining the term
11 "sponsored research contract"; authorizing the
12 Department of Revenue to adopt rules; requiring
13 a report; providing an effective date.
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15 Be It Enacted by the Legislature of the State of Florida:
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17 Section 1. Paragraph (c) is added to subsection (2) of
18 section 220.15, Florida Statutes, paragraph (c) is added to
19 subsection (4) of that section, and subsection (8) is added to
20 that section, to read:
21 220.15 Apportionment of adjusted federal income.--
22 (2) The property factor is a fraction the numerator of
23 which is the average value of the taxpayer's real and tangible
24 personal property owned or rented and used in this state
25 during the taxable year or period and the denominator of which
26 is the average value of such property owned or rented and used
27 everywhere.
28 (c) The property factor fraction shall not include any
29 real or tangible personal property located in this state that
30 is certified to the Department of Revenue to be dedicated
31 exclusively to research and development activities performed
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Florida Senate - 1998 CS for CS for SB 742
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1 pursuant to sponsored research contracts conducted in
2 conjunction with and through a university that is a member of
3 the State University System or a nonpublic university that is
4 chartered in Florida and conducts graduate programs at the
5 professional or doctoral level. The Board of Regents must
6 certify the contracts for members of the State University
7 System and the president of the university must certify the
8 contracts for a nonpublic university. As used in this
9 paragraph, the term "sponsored research contract" means an
10 agreement executed by parties that include at least the
11 university and the taxpayer. Funding for sponsored research
12 contracts may be provided from public or private sources.
13 (4) The payroll factor is a fraction the numerator of
14 which is the total amount paid in this state during the
15 taxable year or period by the taxpayer for compensation and
16 the denominator of which is the total compensation paid
17 everywhere during the taxable year or period.
18 (c) The payroll factor fraction shall not include any
19 compensation paid to any employee located in this state that
20 is certified to the Department of Revenue as paid to employees
21 dedicated exclusively to research and development activities
22 performed pursuant to sponsored research contracts conducted
23 in conjunction with and through a university that is a member
24 of the State University System or a nonpublic university that
25 is chartered in Florida and conducts graduate programs at the
26 professional or doctoral level. The Board of Regents must
27 certify the contracts for members of the State University
28 System and the president of the university must certify the
29 contracts for a nonpublic university. As used in this
30 paragraph, the term "sponsored research contract" means an
31 agreement executed by parties that include at least the
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Florida Senate - 1998 CS for CS for SB 742
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1 university and the taxpayer. Funding for sponsored research
2 contracts may be provided from public or private sources.
3 (8) No research and development activities certified
4 as being conducted in conjunction with and through an eligible
5 university within this state shall cause any corporation to
6 become subject to the taxes imposed by this chapter if the
7 corporation would otherwise not be subject to the tax levied
8 herein. The property and payroll eliminated from the
9 apportionment formula pursuant to the provisions of paragraphs
10 (2)(c) and (4)(c) shall be eliminated only for the duration of
11 the contractual period specified in the contracts for the
12 conduct of the sponsored research. The reduction in tax due as
13 a result of the property and payroll eliminated from the
14 apportionment formula pursuant to the provisions of paragraphs
15 (2)(c) and (4)(c) may not exceed the amount paid to the
16 participating university for the conduct of the sponsored
17 research. No sponsored research contracts in existence prior
18 to July 1, 1997, shall be eligible to participate in the
19 provisions of paragraphs (2)(c) and (4)(c).
20 Section 2. The Department of Revenue may adopt rules
21 pursuant to the Administrative Procedure Act to implement
22 paragraphs (2)(c) and (4)(c) and subsection (8) of section
23 220.15, Florida Statutes, as created by this act. The Board of
24 Regents and the president of each participating nonpublic
25 university shall monitor the various sponsored research
26 contracts and make a report to the Legislature by February 1,
27 2000, which shall provide any necessary information which
28 indicates if the provisions of this act have been successful
29 in attracting additional sponsored research contracts.
30 Section 3. This act shall take effect July 1, 1998.
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Florida Senate - 1998 CS for CS for SB 742
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 CS/SB 742
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4 The committee substitute for the committee substitute differs
from Committee Substitute for Senate Bill 742 in that it
5 would:
6 Create conditions under which corporations could receive a tax
exemption for their sponsored research contracts with
7 nonpublic universities.
8 Define "sponsored research contract."
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