Senate Bill 2102
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Florida Senate - 1999 SB 2102
By Senator Jones
40-832-99
1 A bill to be entitled
2 An act relating to the corporate income tax;
3 creating s. 220.1896, F.S.; providing a tax
4 credit for certain contributions to nonprofit
5 scholarship funding organizations and eligible
6 schools; providing definitions; providing for
7 the amount of the credit; providing
8 limitations; providing for application
9 procedures; providing prohibitions; providing
10 limitations upon the applicability of the act
11 to private schools; providing applicability;
12 providing an effective date.
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14 Be It Enacted by the Legislature of the State of Florida:
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16 Section 1. Section 220.1896, Florida Statutes, is
17 created to read:
18 220.1896 Tax credit for certain contributions to
19 nonprofit scholarship funding organizations and to eligible
20 schools.--
21 (1) As used in this section, the term:
22 (a) "Eligible school" means a public or private
23 primary or secondary school that is located in this state,
24 that offers a general education to primary or secondary
25 students, and that does not discriminate on the basis of race,
26 color, handicap, familial status, or national origin.
27 (b) "Nonprofit scholarship funding organization" means
28 a charitable organization that:
29 1. Is exempt from federal taxation under s. 501(c)(3)
30 of the Internal Revenue Code of 1986, as amended; and
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Florida Senate - 1999 SB 2102
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1 2. Allocates at least 90 percent of its annual revenue
2 to providing scholarships for tuition, transportation, and
3 textbook expenses to children who are enrolled in an eligible
4 school.
5 (2) There is allowed to a corporation that meets the
6 eligibility requirements of this section a credit against the
7 tax imposed by this chapter in the amount of a contribution
8 that the corporation makes to a nonprofit scholarship funding
9 organization or to a public school, if:
10 (a) The contribution is used to provide scholarships
11 for tuition, transportation, or textbook expenses to children
12 who are enrolled in eligible schools; and
13 (b) The corporation does not designate a specific
14 child as the beneficiary of the contribution.
15 (3) The total amount of tax credits claimed under this
16 section during a taxable year may not exceed:
17 (a) Seventy-five percent of the amount of the tax due
18 under this chapter for the taxable year after all other
19 applicable tax credits are applied for credits claimed for
20 contributions to nonprofit scholarship funding organizations;
21 and
22 (b) Five percent of the amount of the tax due under
23 this chapter for the taxable year after all other applicable
24 tax credits are applied for credits claimed for contributions
25 to eligible schools.
26 (4)(a) In applying for a tax credit under this
27 section, a corporation must use a form that the department
28 devises.
29 (b) The department shall prescribe the form and manner
30 of proof that must be submitted to the department with the
31 application for tax credit under this section.
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Florida Senate - 1999 SB 2102
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1 (5) A corporation may claim a tax credit under this
2 section for a contribution made during the taxable year only
3 against the tax owed for that taxable year. A contribution in
4 an amount that exceeds the limitation set forth in subsection
5 (3) may not be carried forward or backward and may not be used
6 to create a business loss carryover.
7 (6) A corporation may not convey, assign, or transfer
8 the credit authorized by this section to another entity unless
9 all of the assets of the corporation are conveyed, assigned,
10 or transferred in the same transaction.
11 (7)(a) This section must not be construed to cause
12 excessive governmental entanglement with the religious
13 instruction of a private school.
14 (b) With respect to a private school, this section
15 does not authorize a governmental agency to regulate, control,
16 supervise, or in any way be involved in the:
17 1. Form, manner, or content of religious instruction,
18 ministry, teaching, or curriculum offered by the private
19 school;
20 2. Ability of the private school to select and
21 supervise qualified personnel and otherwise control the terms
22 of employment, including the right to employ individuals who
23 share the religious views of the school;
24 3. Internal self-governance and autonomy of the
25 private school; or
26 4. Religious environment of the private school,
27 including, but not limited to, its use of symbols, art, icons,
28 and scripture.
29 Section 2. This act shall take effect January 1, 2000,
30 and applies only to qualifying contributions made by a
31 corporation after December 30, 1999, and claimed on a tax
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Florida Senate - 1999 SB 2102
40-832-99
1 report due under chapter 220, Florida Statutes, after December
2 30, 1999.
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5 SENATE SUMMARY
6 Provides a tax credit against the corporate income tax
for certain contributions to nonprofit scholarship
7 funding organizations and to eligible schools. Provides
definitions. Provides the amount of the credit. Provides
8 limitations upon the total amount of such tax credits
which may be granted in a taxable year. Provides
9 application procedures and prohibits carrying the credit
forward or backward. Prohibits transferring the credit to
10 another entity unless all corporate assets are
transferred in the same transaction. Provides that this
11 act is not intended to cause governmental involvement in
religious aspects of private schools. Provides that the
12 act applies to contributions made and reported after
December 30, 1999.
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