CODING: Words stricken are deletions; words underlined are additions.House Bill 0809
Florida House of Representatives - 1997 HB 809
By Representative Eggelletion
1 A bill to be entitled
2 An act relating to tax credits for charitable
3 contributions to state contract providers;
4 amending s. 199.023, F.S.; defining the term
5 "state contract provider contribution";
6 creating s. 199.105, F.S.; providing a credit
7 against the intangibles tax for charitable
8 contributions to not-for-profit state contract
9 provider organizations; providing for a
10 reduction in state funding of recipient
11 organizations; creating s. 220.185, F.S.;
12 providing legislative policy and purpose;
13 providing a credit against the corporate income
14 tax for charitable contributions to
15 not-for-profit state contract provider
16 organizations; providing for a reduction in
17 state funding of recipient organizations;
18 amending s. 220.02, F.S.; providing for the
19 order in which credits against the corporate
20 income tax are to be taken; creating s.
21 624.5104, F.S.; providing a credit against the
22 insurance premium tax for charitable
23 contributions to not-for-profit state contract
24 provider organizations; providing for a
25 reduction in state funding of recipient
26 organizations; providing an effective date.
27
28 Be It Enacted by the Legislature of the State of Florida:
29
30 Section 1. Subsection (13) is added to section
31 199.023, Florida Statutes, to read:
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1 199.023 Definitions.--As used in this chapter:
2 (13) "State contract provider contribution" means a
3 contribution of cash or liquid assets to a corporation that
4 qualifies for tax exempt status under s. 501(c)(3) of the
5 Internal Revenue Code of 1986 as amended and that provides
6 services to the residents of this state under contract to a
7 state agency.
8 Section 2. Section 199.105, Florida Statutes, is
9 created to read:
10 199.105 Contract service provider contribution
11 credit.--
12 (1) AUTHORIZATION TO GRANT STATE CONTRACT PROVIDER
13 CONTRIBUTION TAX CREDITS.--
14 (a) For each taxable year that begins on or after July
15 1, 1997, there is allowed a credit against any tax due under
16 this chapter for the taxable year in the amount of 25 percent
17 of the difference between the taxpayer's state contract
18 provider contributions for the current tax year and the
19 taxpayer's state contract provider contributions for the
20 previous tax year.
21 (b) Tax credits must be approved in advance by the
22 Executive Director of the Department of Revenue and by the
23 head of the agency that directly supervises the state-funded
24 activities of the recipient not-for-profit organization.
25 (c) A taxpayer who is eligible to receive the credit
26 provided for in s. 220.185 or in s. 624.5104 is ineligible to
27 receive the credit provided for in this section.
28 (2) ELIGIBILITY REQUIREMENTS.--
29 (a) Each state contract provider contribution must be
30 in the form of cash or liquid assets.
31
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1 (b) All state contract provider contributions must be
2 used by the recipient organization exclusively for providing
3 those types of services which are funded in the General
4 Appropriations Act for the current year.
5 (c) All state contract provider contributions must be
6 made to qualifying recipient organizations. As used in this
7 section, the term "qualifying recipient organization" means an
8 organization that:
9 1. Is a not-for-profit corporation that is exempt from
10 taxation under s. 501(c)(3) of the Internal Revenue Code of
11 1986 as amended and that is under contract to a state agency
12 and receives funding through the General Appropriations Act in
13 the current fiscal year;
14 2. Is fulfilling its state contract satisfactorily, as
15 certified by the head of the agency that directly supervises
16 its state-funded activities;
17 3. Has sufficient unspent appropriated funds in its
18 contract to allow the state to withhold funds in an amount
19 equal to 25 percent of the creditable contribution; and
20 4. Has demonstrated to the head of the supervising
21 agency a need for funds in an amount greater than that
22 appropriated by the state.
23 (3) APPLICATION REQUIREMENTS.--
24 (a) A taxpayer that wishes to participate in this
25 program must submit to the Department of Revenue an
26 application for tax credit which sets forth the name of the
27 qualifying recipient organization, the amount of the proposed
28 contribution and the amount of the contribution the taxpayer
29 made to the organization in the previous tax year.
30 (b) The taxpayer must submit a separate application
31 for tax credit for each individual contribution that the
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1 taxpayer proposes to contribute to each qualifying recipient
2 organization.
3 (4) ADMINISTRATION.--
4 (a) The Department of Revenue may adopt all rules
5 necessary for the administration of this section, including
6 rules for approving or disapproving proposals that are
7 submitted by taxpayers.
8 (b) Each state agency that supervises one or more
9 not-for-profit state contract provider organizations that meet
10 the criteria for qualifying to be recipient organizations must
11 provide to the department a list of all such organizations
12 supervised by the agency.
13 (c) The department shall maintain a list of eligible
14 recipients, shall mail copies of the list to all recipients of
15 the tax form, and shall also post the list on the Internet.
16 (d) The department may approve a state contract
17 provider contribution only if there are sufficient unspent
18 appropriations in the recipient's state contract to allow the
19 state to withhold funds in an amount equal to 25 percent of
20 the creditable contribution. As used in this subsection, the
21 term "creditable contribution" means the difference between
22 the amounts that the recipient received from a taxpayer in the
23 current taxable year and in the previous taxable year,
24 respectively.
25 (e) Upon approval of a state contract provider
26 contribution, the department shall direct the agency directly
27 supervising the recipient organization to prepare a budget
28 amendment that reduces the amount of the appropriation that
29 the recipient organization is to receive by 25 percent of the
30 amount of the creditable contribution. In addition, the agency
31 shall prepare a budget amendment that transfers to the General
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1 Revenue Fund unspent funds in an amount that offsets the cost
2 of the state contract provider contribution tax credit.
3 Section 3. Section 220.185, Florida Statutes, is
4 created to read:
5 220.185 Contract service provider contribution
6 credit.--
7 (1) POLICY AND PURPOSE.--It is the policy of this
8 state to encourage the participation of private corporations
9 in supporting not-for-profit organizations that provide, under
10 contract to various state agencies, services to residents of
11 this state. The purpose of this section is to provide an
12 incentive for such participation by granting partial state
13 income tax credits to corporations that contribute to
14 not-for-profit organizations that provide services to
15 residents of this state and are funded through appropriations
16 of state moneys. As these contributions increase the funds
17 available to these not-for-profit organizations, state funding
18 to these organizations will be reduced, offsetting any loss in
19 state revenue which results from the income tax credit.
20 (2) AUTHORIZATION TO GRANT STATE CONTRACT PROVIDER
21 CONTRIBUTION TAX CREDITS.--
22 (a) For each taxable year that begins on or after July
23 1, 1997, there is allowed a credit against any tax due under
24 this chapter for the taxable year in the amount of 25 percent
25 of the difference between the taxpayer's state contract
26 provider contributions for the current tax year and the
27 taxpayer's state contract provider contributions for the
28 pervious tax year.
29 (b) Tax credits must be approved in advance by the
30 Executive Director of the Department of Revenue and by the
31
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1 head of the agency that directly supervises the state-funded
2 activities of the recipient not-for-profit organization.
3 (c) If a credit that is granted under this section is
4 not fully used in any one year because a taxpayer owes an
5 insufficient amount of tax under this chapter, the unused
6 portion of the credit may be carried forward for a period not
7 to exceed 5 years. The carryover credit may be used in a
8 subsequent year in which the tax imposed under this chapter
9 exceeds the amount of the tax credit that is allowed under
10 this section for that year after any other credits and unused
11 credit carryovers have been applied in the order provided in
12 s. 220.02(10).
13 (d) A taxpayer who files a Florida consolidated return
14 as a member of an affiliated group pursuant to s. 220.13(1)
15 may be allowed the credit on a consolidated return basis.
16 (e) A taxpayer who is eligible to receive the credit
17 provided for in s. 624.5104 is ineligible to receive the
18 credit provided for in this section.
19 (3) ELIGIBILITY REQUIREMENTS.--
20 (a) Each state contract provider contribution made by
21 a business firm must be in the form of cash or liquid assets.
22 (b) All state contract provider contributions must be
23 used by the recipient organization exclusively for providing
24 those types of services which are funded in the General
25 Appropriations Act for the current year.
26 (c) All state provider contributions must be made to
27 qualifying recipient organizations. As used in this section,
28 the term "qualifying recipient organization" means an
29 organization that:
30 1. Is a not-for-profit corporation that is exempt from
31 taxation under s. 501(c)(3) of the Internal Revenue Code of
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1 1986 as amended and that is under contract to a state agency
2 and receives funding through the General Appropriations Act in
3 the current fiscal year;
4 2. Is fulfilling its state contract satisfactorily, as
5 certified by the head of the agency that directly supervises
6 its state-funded activities;
7 3. Has sufficient unspent appropriated funds in its
8 contract to allow the state to withhold funds in an amount
9 equal to 25 percent of the creditable contribution; and
10 4. Has demonstrated to the head of the supervising
11 agency a need for funds in an amount greater than that
12 appropriated by the state.
13 (4) APPLICATION REQUIREMENTS.--
14 (a) A business that wishes to participate in this
15 program must submit to the Department of Revenue an
16 application for tax credit which sets forth the name of the
17 qualifying recipient organization, the amount of the proposed
18 contribution, and the amount of the contribution the taxpayer
19 made to the organization in the previous tax year.
20 (b) The business firm must submit a separate
21 application for tax credit for each individual contribution
22 that it proposes to contribute to each qualifying recipient
23 organization.
24 (5) ADMINISTRATION.--
25 (a) The Department of Revenue may adopt all rules
26 necessary for the administration of this section, including
27 rules for approving or disapproving proposals that are
28 submitted by business firms.
29 (b) Each state agency that supervises one or more
30 not-for-profit state contract provider organizations that meet
31 the criteria for qualifying to be recipient organizations must
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1 provide to the department a list of all such organizations
2 supervised by the agency.
3 (c) The department shall maintain a list of eligible
4 recipients, shall mail copies of the list to all corporations
5 that are subject to tax under this code, and shall also post
6 the list on the Internet.
7 (d) The department may approve a state contract
8 provider contribution only if there are sufficient unspent
9 appropriations in the recipient's state contract to allow the
10 state to withhold funds in an amount equal to 25 percent of
11 the creditable contribution. As used in this subsection, the
12 term "creditable contribution" means the difference between
13 the amounts that the recipient received from a taxpayer in the
14 current taxable year and in the previous taxable year,
15 respectively.
16 (e) Upon approval of a state contract provider
17 contribution, the department shall direct the agency directly
18 supervising the recipient organization to prepare a budget
19 amendment that reduces the amount of the appropriation that
20 the recipient organization is to receive by 25 percent of the
21 amount of the creditable contribution. In addition, the agency
22 shall prepare a budget amendment that transfers to the General
23 Revenue Fund unspent funds in an amount that offsets the cost
24 of the state contract provider contribution tax credit.
25 Section 4. Subsection (10) of section 220.02, Florida
26 Statutes, is amended to read:
27 220.02 Legislative intent.--
28 (10) It is the intent of the Legislature that credits
29 against either the corporate income tax or the franchise tax
30 be applied in the following order: those enumerated in s.
31 220.68, those enumerated in s. 631.719(1), those enumerated in
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1 s. 631.705, those enumerated in s. 220.18, those enumerated in
2 s. 631.828, those enumerated in s. 220.181, those enumerated
3 in s. 220.183, those enumerated in s. 220.185, those
4 enumerated in s. 220.182, those enumerated in s. 221.02, those
5 enumerated in s. 220.184, those enumerated in s. 220.186, and
6 those enumerated in s. 220.188.
7 Section 5. Section 624.5104, Florida Statutes, is
8 created to read:
9 624.5104 Contract service provider contribution tax
10 credit.--
11 (1) POLICY AND PURPOSE.--It is the policy of this
12 state to encourage the participation of insurers in supporting
13 not-for-profit organizations that provide, under contract to
14 various state agencies, services to residents of this state.
15 The purpose of this section is to provide an incentive for
16 such participation by granting partial state insurance premium
17 tax credits to insurers that contribute to not-for-profit
18 organizations that provide services to residents of this state
19 and are funded through appropriations of state moneys. As
20 these contributions increase the funds available to these
21 not-for-profit organizations, state funding to these
22 organizations will be reduced, offsetting any loss in state
23 revenue which results from the insurance premium tax credit.
24 (2) AUTHORIZATION TO GRANT STATE CONTRACT PROVIDER
25 CONTRIBUTION TAX CREDITS.--
26 (a) For each taxable year that begins on or after July
27 1, 1997, there is allowed a credit against any tax due under
28 s. 624.509 or s. 624.510 for the taxable year in the amount of
29 25 percent of the difference between the taxpayer's state
30 contract provider contributions for the current tax year and
31
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1 the taxpayer's state contract provider contributions for the
2 previous tax year.
3 (b) Tax credits must be approved in advance by the
4 Executive Director of the Department of Revenue and by the
5 head of the agency that directly supervises the state-funded
6 activities of the recipient not-for-profit organization.
7 (c) If a credit that is granted under this section is
8 not fully used in any one year because a taxpayer owes an
9 insufficient amount of tax under this chapter, the unused
10 portion of the credit may be carried forward for a period not
11 to exceed 5 years. The carryover credit may be used in a
12 subsequent year in which the tax imposed under s. 624.509 or
13 s. 624.510 exceeds the amount of the tax credit that is
14 allowed under this section for that year.
15 (d) A taxpayer who is eligible to receive the credit
16 provided for in s. 220.185 is ineligible to receive the credit
17 provided for in this section.
18 (3) ELIGIBILITY REQUIREMENTS.--
19 (a) Each state contract provider contribution made by
20 an insurer must be in the form of cash or liquid assets.
21 (b) All state contract provider contributions must be
22 used by the recipient organization exclusively for providing
23 those types of services which are funded in the General
24 Appropriations Act for the current year.
25 (c) All state provider contributions must be made to
26 qualifying recipient organizations. As used in this section,
27 the term "qualifying recipient organization" means an
28 organization that:
29 1. Is a not-for-profit corporation that is exempt from
30 taxation under s. 501(c)(3) of the Internal Revenue Code of
31 1986 as amended and that is under contract to a state agency
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1 and receives funding through the General Appropriations Act in
2 the current fiscal year;
3 2. Is fulfilling its state contract satisfactorily, as
4 certified by the head of the agency that directly supervises
5 its state-funded activities;
6 3. Has sufficient unspent appropriated funds in its
7 contract to allow the state to withhold funds in an amount
8 equal to 25 percent of the creditable contribution; and
9 4. Has demonstrated to the head of the supervising
10 agency a need for funds in an amount greater than that
11 appropriated by the state.
12 (4) APPLICATION REQUIREMENTS.--
13 (a) An insurer that wishes to participate in this
14 program must submit to the Department of Revenue an
15 application for tax credit which sets forth the name of the
16 qualifying recipient organization, the amount of the proposed
17 contribution, and the amount of the contribution the taxpayer
18 made to the organization in the previous tax year.
19 (b) The insurer must submit a separate application for
20 tax credit for each individual contribution that it proposes
21 to contribute to each qualifying recipient organization.
22 (5) ADMINISTRATION.--
23 (a) The Department of Revenue may adopt all rules
24 necessary for the administration of this section, including
25 rules for approving or disapproving proposals that are
26 submitted by insurers.
27 (b) Each state agency that supervises one or more
28 not-for-profit state contract provider organizations that meet
29 the criteria for qualifying to be recipient organizations must
30 provide to the Department of Revenue a list of all such
31 organizations supervised by the agency.
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1 (c) The Department of Revenue shall maintain a list of
2 eligible recipients, shall mail copies of the list to all
3 insurers that are subject to tax under this code, and shall
4 also post the list on the Internet.
5 (d) The Department of Revenue may approve a state
6 contract provider contribution only if there are sufficient
7 unspent appropriations in the recipient's state contract to
8 allow the state to withhold funds equal to 25 percent of the
9 creditable contribution. As used in this subsection, the term
10 "creditable contribution" means the difference between the
11 amounts that the recipient received from a taxpayer in the
12 current taxable year and in the previous taxable year,
13 respectively.
14 (e) Upon approval of a state contract provider
15 contribution, the Department of Revenue shall direct the
16 agency directly supervising the recipient organization to
17 prepare a budget amendment that reduces the amount of the
18 appropriation that the recipient organization is to receive by
19 25 percent of the amount of the creditable contribution. In
20 addition, the agency shall prepare a budget amendment that
21 transfers to the General Revenue Fund unspent funds in an
22 amount that offsets the cost of the insurance premium tax
23 credit.
24 Section 6. This act shall take effect July 1, 1997.
25
26 *****************************************
27 SENATE SUMMARY
28 Provides tax credits against either the intangibles tax,
the corporate income tax, or the insurance premium tax,
29 as appropriate, for charitable contributions to state
contract providers. Provides for a reduction in state
30 funding of recipient organizations.
31
12