CODING: Words stricken are deletions; words underlined are additions.

House Bill 0965c1

Florida House of Representatives - 1997 CS/HB 965 By the Committee on Business Development & International Trade and Representatives Meek, Bradley and Roberts-Burke 1 A bill to be entitled 2 An act relating to economic development; 3 creating s. 212.097, F.S.; providing for 4 credits against the tax on sales, use, and 5 other transactions for certain new or existing 6 businesses located in a qualified high-crime 7 area that employ qualified employees; providing 8 definitions; authorizing counties and 9 municipalities to nominate areas as high-crime 10 areas based on specified criteria; providing 11 for approval and ranking of such areas by the 12 Office of Tourism, Trade, and Economic 13 Development; providing for an additional credit 14 for employees who are WAGES Program 15 participants; providing application 16 requirements; providing limitations; providing 17 for carryover of credits; providing penalties; 18 creating s. 212.098, F.S.; providing for 19 credits against the tax on sales, use, and 20 other transactions for certain new or existing 21 businesses located in a qualified rural county 22 that employ qualified employees; providing 23 definitions; providing for ranking of counties 24 by the Office of Tourism, Trade, and Economic 25 Development; providing for an additional credit 26 for employees who are WAGES Program 27 participants; providing application 28 requirements; providing limitations; providing 29 for carryover of credits; providing penalties; 30 amending s. 220.02, F.S.; providing order of 31 credits against the corporate income tax; 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 amending s. 220.13, F.S.; providing that any 2 credit taken under s. 220.191, F.S., shall be 3 added to a taxpayer's taxable income for 4 purposes of determining adjusted federal 5 income; creating s. 220.191, F.S.; providing 6 that amounts approved for the high-crime area 7 jobs credit under s. 212.097, F.S., or for the 8 rural jobs credit under s. 212.098, F.S., may 9 be taken against the corporate income tax in 10 lieu of the tax under ch. 212, F.S.; providing 11 for carryover of the credit; providing an 12 effective date. 13 14 Be It Enacted by the Legislature of the State of Florida: 15 16 Section 1. Section 212.097, Florida Statutes, is 17 created to read: 18 212.097 Urban High-Crime Area Job Tax Credit 19 Program.-- 20 (1) It is the intent of the Legislature to encourage 21 the provision of meaningful employment opportunities that will 22 improve the quality of life of those employed, and to 23 encourage economic expansion of new and existing businesses in 24 urban high-crime areas of this state. Upon an affirmative 25 showing by a business to the satisfaction of the Department of 26 Revenue that the requirements of this section have been met, 27 the business shall be allowed a credit against the tax 28 remitted under this chapter. 29 (2) As used in this section, the term: 30 (a) "Eligible business" means any sole proprietorship, 31 firm, partnership, or corporation that is located in a 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 qualified county and is predominantly engaged in, or is 2 headquarters for a business predominantly engaged in, 3 activities usually provided for consideration by firms 4 classified within the following standard industrial 5 classifications: SIC 01 through SIC 09 (agriculture, 6 forestry, and fishing); SIC 20 through SIC 39 (manufacturing); 7 SIC 422 (public warehousing and storage); SIC 70 (hotels and 8 other lodging places); SIC 7391 (research and development); 9 SIC 7992 (public golf courses); and SIC 7996 (amusement 10 parks). Excluded from eligible receipts are receipts from 11 retail sales, except such receipts for hotels and other 12 lodging places classified in SIC 70, public golf courses in 13 SIC 7992, and amusement parks in SIC 7996. For purposes of 14 this paragraph, the term "predominantly" means that more than 15 50 percent of the business's gross receipts from all sources 16 is generated by those activities usually provided for 17 consideration by firms in the specified standard industrial 18 classification. The determination of whether the business is 19 located in a qualified high-crime area and the tier ranking of 20 that area must be based on the date of application for the 21 credit under this section. Commonly owned and controlled 22 entities are to be considered a single business entity. 23 (b) "Qualified employee" means any employee of an 24 eligible business who performs duties in connection with the 25 operations of the business on a regular, full-time basis for 26 an average of at least 36 hours per week for at least 3 months 27 within the qualified high-crime area in which the eligible 28 business is located. An owner or partner of the eligible 29 business is not a qualified employee. 30 (c) "New business" means any eligible business first 31 beginning operation on a site in a qualified high-crime area 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 and clearly separate from any other commercial or business 2 operation of the business entity within a qualified high-crime 3 area. A business entity that operated an eligible business 4 within a qualified high-crime area within the 48 months before 5 the application date shall not be considered a new business. 6 (d) "Existing business" means any eligible business 7 that does not meet the criteria for a new business. 8 (e) "Qualified high-crime area" means an area selected 9 by the Office of Tourism, Trade, and Economic Development in 10 the following manner: every third year, the office shall rank 11 and tier those areas nominated under subsection (6), according 12 to the following criteria: 13 1. Highest overall index crime rate for the geographic 14 area; 15 2. Highest overall index crime volume for the area; 16 3. Highest percentage of reported index crimes that 17 are violent in nature; 18 4. Highest reported crime volume and rate of specific 19 property crimes such as business and residential burglary, 20 motor vehicle theft, and vandalism; and 21 5. Highest arrest rates within the geographic area for 22 violent crime and for such other crimes as drug sale, drug 23 possession, prostitution, disorderly conduct, vandalism, and 24 other public-order offenses. 25 26 Tier-one areas are ranked 1 through 5 and represent the 27 highest crime areas according to this ranking. Tier-two areas 28 are ranked 6 through 10 according to this ranking. Tier-three 29 areas are ranked 11 through 15. 30 (3) A new eligible business may apply for a tax credit 31 under this subsection once at any time during its first year 4 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 of operation. A new eligible business in a tier-one qualified 2 high-crime area which has at least 10 qualified employees on 3 the date of application shall receive a $1,500 tax credit for 4 each such employee. A new eligible business in a tier-two 5 qualified high-crime area which has at least 20 qualified 6 employees on the date of application shall receive a $1,000 7 tax credit for each such employee. A new eligible business in 8 a tier-three qualified high-crime area which has at least 30 9 qualified employees on the date of application shall receive a 10 $500 tax credit for each such employee. 11 (4) An existing eligible business may apply for a tax 12 credit under this subsection at any time it is entitled to 13 such credit, except as restricted by this subsection. An 14 existing eligible business in a tier-one qualified high-crime 15 area which on the date of application has at least 5 more 16 qualified employees than it had 1 year prior to its date of 17 application shall receive a $1,500 tax credit for each such 18 additional employee. An existing eligible business in a 19 tier-two qualified high-crime area which on the date of 20 application has at least 10 more qualified employees than it 21 had 1 year prior to its date of application shall receive a 22 $1,000 credit for each such additional employee. An existing 23 business in a tier-three qualified high-crime area which on 24 the date of application has at least 15 more qualified 25 employees than it had 1 year prior to its date of application 26 shall receive a $500 tax credit for each such additional 27 employee. An existing eligible business may apply for the 28 credit under this subsection no more than once in any 12-month 29 period. Any existing eligible business that received a credit 30 under subsection (3) may not apply for the credit under this 31 5 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 subsection sooner than 12 months after the application date 2 for the credit under subsection (3). 3 (5) For any new eligible business receiving a credit 4 pursuant to subsection (3), an additional $500 credit shall be 5 provided for any qualified employee who is a WAGES Program 6 participant pursuant to chapter 414. For any existing eligible 7 business receiving a credit pursuant to subsection (4), an 8 additional $500 credit shall be provided for any qualified 9 employee who is a WAGES Program participant pursuant to 10 chapter 414. Such employee must be employed on the application 11 date and have been employed less than 1 year. This credit 12 shall be in addition to other credits pursuant to this section 13 regardless of the tier-level of the high-crime area. 14 Appropriate documentation concerning the eligibility of an 15 employee for this credit must be submitted as determined by 16 the department. 17 (6) To be eligible for a tax credit under subsection 18 (4), the number of qualified employees employed 1 year prior 19 to the application date must be no lower than the number of 20 qualified employees on the application date on which a credit 21 under this section was based for any previous application, 22 including an application under subsection (3). 23 (7) Any county or municipality, or a county and one or 24 more municipalities together, may apply to the Office of 25 Tourism, Trade, and Economic Development for the designation 26 of an area as a high-crime area after the adoption by the 27 governing body or bodies of a resolution that: 28 (a) Finds that a high-crime area exists in such county 29 or municipality, or in both the county and one or more 30 municipalities, which chronically exhibits extreme and 31 6 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 unacceptable levels of poverty, unemployment, physical 2 deterioration, and economic disinvestment; 3 (b) Determines that the rehabilitation, conservation, 4 or redevelopment, or a combination thereof, of such a 5 high-crime area is necessary in the interest of the health, 6 safety, and welfare of the residents of such county or 7 municipality, or such county and one or more municipalities; 8 and 9 (c) Determines that the revitalization of such a 10 high-crime area can occur if the public sector or private 11 sector can be induced to invest its own resources in 12 productive enterprises that build or rebuild the economic 13 viability of the area. 14 (8) The governing body of the entity nominating the 15 area shall provide to the Office of Tourism, Trade, and 16 Economic Development the following: 17 (a) The overall index crime rate for the geographic 18 area; 19 (b) The overall index crime volume for the area; 20 (c) The percentage of reported index crimes that are 21 violent in nature; 22 (d) The reported crime volume and rate of specific 23 property crimes such as business and residential burglary, 24 motor vehicle theft, and vandalism; and 25 (e) The arrest rates within the geographic area for 26 violent crime and for such other crimes as drug sale, drug 27 possession, prostitution, disorderly conduct, vandalism, and 28 other public-order offenses. 29 (9) A municipality, or a county and one or more 30 municipalities together, may not nominate more than one 31 7 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 high-crime area. However, any county as defined by s. 2 125.011(1) may nominate more than one high-crime area. 3 (10) An area nominated by a county or municipality, or 4 a county and one or more municipalities together, for 5 designation as a high-crime area shall be eligible only if it 6 meets the following criteria: 7 (a) The selected area does not exceed 20 square miles 8 and either has a continuous boundary or consists of not more 9 than three noncontiguous parcels; 10 (b) The selected area does not exceed the following 11 mileage limitation: 12 1. For communities having a total population of 13 150,000 persons or more, the selected area does not exceed 20 14 square miles. 15 2. For communities having a total population of 50,000 16 persons or more, but fewer than 150,000 persons, the selected 17 area does not exceed 10 square miles. 18 3. For communities having a total population of 20,000 19 persons or more, but fewer than 50,000 persons, the selected 20 area does not exceed 5 square miles. 21 4. For communities having a total population of fewer 22 than 20,000 persons, the selected area does not exceed 3 23 square miles. 24 (11)(a) In order to claim this credit, an eligible 25 business must file under oath with the Office of Tourism, 26 Trade, and Economic Development a statement that includes the 27 name and address of the eligible business and any other 28 information that is required to process the application. 29 (b) Within 30 working days after receipt of an 30 application for credit, the Office of Tourism, Trade, and 31 Economic Development shall review the application to determine 8 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 whether it contains all the information required by this 2 subsection and meets the criteria set out in this section. 3 Subject to the provisions of paragraph (c), the Office of 4 Tourism, Trade, and Economic Development shall approve all 5 applications that contain the information required by this 6 subsection and meet the criteria set out in this section as 7 eligible to receive a credit. 8 (c) The maximum credit amount that may be approved 9 during any calendar year is $5 million. The Department of 10 Revenue, in conjunction with the Office of Tourism, Trade, and 11 Economic Development, shall notify the governing bodies in 12 areas designated as urban high-crime areas when the $5 million 13 maximum amount has been reached. Applications must be 14 considered for approval in the order in which they are 15 received without regard to whether the credit is for a new or 16 existing business. This limitation applies to the value of 17 the credit as contained in approved applications. Approved 18 credits may be taken in the time and manner allowed pursuant 19 to this section. 20 (12) If the application is insufficient to support the 21 credit authorized in this section, the Office of Tourism, 22 Trade, and Economic Development shall deny the credit and 23 notify the business of that fact. The business may reapply 24 for this credit within 3 months after such notification. 25 (13) If the credit under this section is greater than 26 can be taken on a single tax return, excess amounts may be 27 taken as credits on any tax return submitted within 12 months 28 after the approval of the application by the department. 29 (14) It is the responsibility of each business to 30 affirmatively demonstrate to the satisfaction of the 31 9 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 Department of Revenue that it meets the requirements of this 2 section. 3 (15) Any person who fraudulently claims this credit is 4 liable for repayment of the credit plus a mandatory penalty of 5 100 percent of the credit and is guilty of a misdemeanor of 6 the second degree, punishable as provided in s. 775.082 or s. 7 775.083. 8 (16) A corporation may take the credit under this 9 section against its corporate income tax liability, as 10 provided in s. 220.191. However, a corporation that applies 11 its job tax credit against the tax imposed by chapter 220 may 12 not receive the credit provided for in this section. A credit 13 may be taken against only one tax. 14 (17) The department shall adopt rules governing the 15 manner and form of applications for credit and may establish 16 guidelines concerning the requisites for an affirmative 17 showing of qualification for the credit under this section. 18 (18) Applications for credit under this section may be 19 submitted on or after January 1, 1999. 20 Section 2. Section 212.098, Florida Statutes, is 21 created to read: 22 212.098 Rural Job Tax Credit Program.-- 23 (1) It is the intent of the Legislature to encourage 24 the provision of meaningful employment opportunities that will 25 improve the quality of life of those employed and to encourage 26 economic expansion of new and existing businesses in rural 27 areas of this state. Upon an affirmative showing by a business 28 to the satisfaction of the Department of Revenue that the 29 requirements of this section have been met, the business shall 30 be allowed a credit against the tax remitted under this 31 chapter. 10 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 (2) As used in this section, the term: 2 (a) "Eligible business" means any sole proprietorship, 3 firm, partnership, or corporation that is located in a 4 qualified county and is predominantly engaged in, or is 5 headquarters for a business predominantly engaged in, 6 activities usually provided for consideration by firms 7 classified within the following standard industrial 8 classifications: SIC 01 through SIC 09 (agriculture, 9 forestry, and fishing); SIC 20 through SIC 39 (manufacturing); 10 SIC 422 (public warehousing and storage); SIC 70 (hotels and 11 other lodging places); SIC 7391 (research and development); 12 SIC 7992 (public golf courses); and SIC 7996 (amusement 13 parks). Excluded from eligible receipts are receipts from 14 retail sales, except such receipts for hotels and other 15 lodging places classified in SIC 70, public golf courses in 16 SIC 7992, and amusement parks in SIC 7996. For purposes of 17 this paragraph, the term "predominantly" means that more than 18 50 percent of the business's gross receipts from all sources 19 is generated by those activities usually provided for 20 consideration by firms in the specified standard industrial 21 classification. The determination of whether the business is 22 located in a qualified county and the tier ranking of that 23 county must be based on the date of application for the credit 24 under this section. Commonly owned and controlled entities are 25 to be considered a single business entity. 26 (b) "Qualified employee" means any employee of an 27 eligible business who performs duties in connection with the 28 operations of the business on a regular, full-time basis for 29 an average of at least 36 hours per week for at least 3 months 30 within the qualified county in which the eligible business is 31 11 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 located. An owner or partner of the eligible business is not a 2 qualified employee. 3 (c) "Qualified county" means a county that has a 4 population of fewer than 75,000 persons, or any county that 5 has a population of 100,000 or less and is contiguous to a 6 county that has a population of less than 75,000, selected in 7 the following manner: every third year, the Office of 8 Tourism, Trade, and Economic Development shall rank and tier 9 the state's counties according to the following four factors: 10 1. Highest unemployment rate for the most recent 11 36-month period. 12 2. Lowest per capita income for the most recent 13 36-month period. 14 3. Highest percentage of residents whose incomes are 15 below the poverty level, based upon the most recent data 16 available. 17 4. Average weekly manufacturing wage, based upon the 18 most recent data available. 19 20 Tier-one qualified counties are those ranked 1 through 5 and 21 represent the state's least-developed counties according to 22 this ranking. Tier-two qualified counties are those ranked 6 23 through 10, and tier-three counties are those ranked 11 24 through 15. 25 (d) "New business" means any eligible business first 26 beginning operation on a site in a qualified county and 27 clearly separate from any other commercial or business 28 operation of the business entity within a qualified county. A 29 business entity that operated an eligible business within a 30 qualified county within the 48 months before the application 31 date shall not be considered a new business. 12 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 (e) "Existing business" means any eligible business 2 that does not meet the criteria for a new business. 3 (3) A new eligible business may apply for a tax credit 4 under this subsection once at any time during its first year 5 of operation. A new eligible business in a tier-one qualified 6 county which has at least 10 qualified employees on the date 7 of application shall receive a $1,500 tax credit for each such 8 employee. A new eligible business in a tier-two qualified 9 county which has at least 20 qualified employees on the date 10 of application shall receive a $1,000 tax credit for each such 11 employee. A new eligible business in a tier-three qualified 12 county which has at least 30 qualified employees on the date 13 of application shall receive a $500 tax credit for each such 14 employee. 15 (4) An existing eligible business may apply for a tax 16 credit under this subsection at any time it is entitled to 17 such credit, except as restricted by this subsection. An 18 existing eligible business in a tier-one qualified county 19 which on the date of application has at least 5 more qualified 20 employees than it had 1 year prior to its date of application 21 shall receive a $1,500 tax credit for each such additional 22 employee. An existing eligible business in a tier-two 23 qualified county which on the date of application has at least 24 10 more qualified employees than it had 1 year prior to its 25 date of application shall receive a $1,000 credit for each 26 such additional employee. An existing business in a tier-three 27 qualified county which on the date of application has at least 28 15 more qualified employees than it had 1 year prior to its 29 date of application shall receive a $500 tax credit for each 30 such additional employee. An existing eligible business may 31 apply for the credit under this subsection no more than once 13 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 in any 12-month period. Any existing eligible business that 2 received a credit under subsection (3) may not apply for the 3 credit under this subsection sooner than 12 months after the 4 application date for the credit under subsection (3). 5 (5) For any new eligible business receiving a credit 6 pursuant to subsection (3), an additional $500 credit shall be 7 provided for any qualified employee who is a WAGES Program 8 participant pursuant to chapter 414. For any existing eligible 9 business receiving a credit pursuant to subsection (4), an 10 additional $500 credit shall be provided for any qualified 11 employee who is a WAGES Program participant pursuant to 12 chapter 414. Such employee must be employed on the application 13 date and have been employed less than 1 year. This credit 14 shall be in addition to other credits pursuant to this section 15 regardless of the tier-level of the county. Appropriate 16 documentation concerning the eligibility of an employee for 17 this credit must be submitted as determined by the department. 18 (6) To be eligible for a tax credit under subsection 19 (4), the number of qualified employees employed 1 year prior 20 to the application date must be no lower than the number of 21 qualified employees on the application date on which a credit 22 under this section was based for any previous application, 23 including an application under subsection (3). 24 (7)(a) In order to claim this credit, an eligible 25 business must file under oath with the Office of Tourism, 26 Trade, and Economic Development a statement that includes the 27 name and address of the eligible business, the starting salary 28 or hourly wages paid to the new employee, and any other 29 information that the Department of Revenue requires. 30 (b) Within 30 working days after receipt of an 31 application for credit, the Office of Tourism, Trade, and 14 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 Economic Development shall review the application to determine 2 whether it contains all the information required by this 3 subsection and meets the criteria set out in this section. 4 Subject to the provisions of paragraph (c), the Office of 5 Tourism, Trade, and Economic Development shall approve all 6 applications that contain the information required by this 7 subsection and meet the criteria set out in this section as 8 eligible to receive a credit. 9 (c) The maximum credit amount that may be approved 10 during any calendar year is $5 million. The Department of 11 Revenue, in conjunction with the Office of Tourism, Trade, and 12 Economic Development, shall notify the governing bodies in 13 areas designated as qualified counties when the $5 million 14 maximum amount has been reached. Applications must be 15 considered for approval in the order in which they are 16 received without regard to whether the credit is for a new or 17 existing business. This limitation applies to the value of 18 the credit as contained in approved applications. Approved 19 credits may be taken in the time and manner allowed pursuant 20 to this section. 21 (8) If the application is insufficient to support the 22 credit authorized in this section, the Office of Tourism, 23 Trade, and Economic Development shall deny the credit and 24 notify the business of that fact. The business may reapply 25 for this credit within 3 months after such notification. 26 (9) If the credit under this section is greater than 27 can be taken on a single tax return, excess amounts may be 28 taken as credits on any tax return submitted within 12 months 29 after the approval of the application by the department. 30 (10) It is the responsibility of each business to 31 affirmatively demonstrate to the satisfaction of the 15 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 Department of Revenue that it meets the requirements of this 2 section. 3 (11) Any person who fraudulently claims this credit is 4 liable for repayment of the credit plus a mandatory penalty of 5 100 percent of the credit and is guilty of a misdemeanor of 6 the second degree, punishable as provided in s. 775.082 or s. 7 775.083. 8 (12) A corporation may take the credit under this 9 section against its corporate income tax liability, as 10 provided in s. 220.191. However, a corporation that uses its 11 job tax credit against the tax imposed by chapter 220 may not 12 receive the credit provided for in this section. A credit may 13 be taken against only one tax. 14 (13) The department shall adopt rules governing the 15 manner and form of applications for credit and may establish 16 guidelines as to the requisites for an affirmative showing of 17 qualification for the credit under this section. 18 (14) Applications for a credit under this section may 19 be submitted on or after January 1, 1999. 20 Section 3. Subsection (10) of section 220.02, Florida 21 Statutes, is amended to read: 22 220.02 Legislative intent.-- 23 (10) It is the intent of the Legislature that credits 24 against either the corporate income tax or the franchise tax 25 be applied in the following order: those enumerated in s. 26 220.68, those enumerated in s. 631.719(1), those enumerated in 27 s. 631.705, those enumerated in s. 220.18, those enumerated in 28 s. 631.828, those enumerated in s. 220.181, those enumerated 29 in s. 220.183, those enumerated in s. 220.182, those 30 enumerated in s. 220.191, those enumerated in s. 221.02, those 31 16 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 enumerated in s. 220.184, those enumerated in s. 220.186, and 2 those enumerated in s. 220.188. 3 Section 4. Paragraph (a) of subsection (1) of section 4 220.13, Florida Statutes, is amended to read: 5 220.13 "Adjusted federal income" defined.-- 6 (1) The term "adjusted federal income" means an amount 7 equal to the taxpayer's taxable income as defined in 8 subsection (2), or such taxable income of more than one 9 taxpayer as provided in s. 220.131, for the taxable year, 10 adjusted as follows: 11 (a) Additions.--There shall be added to such taxable 12 income: 13 1. The amount of any tax upon or measured by income, 14 excluding taxes based on gross receipts or revenues, paid or 15 accrued as a liability to the District of Columbia or any 16 state of the United States which is deductible from gross 17 income in the computation of taxable income for the taxable 18 year. 19 2. The amount of interest which is excluded from 20 taxable income under s. 103(a) of the Internal Revenue Code or 21 any other federal law, less the associated expenses disallowed 22 in the computation of taxable income under s. 265 of the 23 Internal Revenue Code or any other law, excluding 60 percent 24 of any amounts included in alternative minimum taxable income, 25 as defined in s. 55(b)(2) of the Internal Revenue Code, if the 26 taxpayer pays tax under s. 220.11(3). 27 3. In the case of a regulated investment company or 28 real estate investment trust, an amount equal to the excess of 29 the net long-term capital gain for the taxable year over the 30 amount of the capital gain dividends attributable to the 31 taxable year. 17 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 4. That portion of the wages or salaries paid or 2 incurred for the taxable year which is equal to the amount of 3 the credit allowable for the taxable year under s. 220.181. 4 The provisions of this subparagraph shall expire and be void 5 on June 30, 2005. 6 5. That portion of the ad valorem school taxes paid or 7 incurred for the taxable year which is equal to the amount of 8 the credit allowable for the taxable year under s. 220.182. 9 The provisions of this subparagraph shall expire and be void 10 on June 30, 2005. 11 6. The amount of emergency excise tax paid or accrued 12 as a liability to this state under chapter 221 which tax is 13 deductible from gross income in the computation of taxable 14 income for the taxable year. 15 7. That portion of assessments to fund a guaranty 16 association incurred for the taxable year which is equal to 17 the amount of the credit allowable for the taxable year. 18 8. In the case of a nonprofit corporation which holds 19 a pari-mutuel permit and which is exempt from federal income 20 tax as a farmers' cooperative, an amount equal to the excess 21 of the gross income attributable to the pari-mutuel operations 22 over the attributable expenses for the taxable year. 23 9. The amount taken as a credit for the taxable year 24 under s. 220.191. 25 Section 5. Section 220.191, Florida Statutes, is 26 created to read: 27 220.191 Rural Jobs Credit and Urban High-Crime Area 28 Credit.--There shall be allowed a credit against the tax 29 imposed by this chapter amounts approved by the Office of 30 Tourism, Trade, and Economic Development pursuant to the Rural 31 Jobs Tax Credit Program in s. 212.098 and the Urban High-Crime 18 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 965 170-841-97 1 Area Job Tax Credit Program in s. 212.097. A corporation that 2 uses its credit against the tax imposed by this chapter may 3 not take the credit against the tax imposed by chapter 212. If 4 any credit granted under this section is not fully used in the 5 first year for which it becomes available, the unused amount 6 may be carried forward for a period not to exceed 5 years. The 7 carryover may be used in a subsequent year when the tax 8 imposed by this chapter for such year exceeds the credit for 9 such year under this section after applying the other credits 10 and unused credit carryovers in the order provided in s. 11 220.02(10). 12 Section 6. This act shall take effect July 1, 1997. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 19