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
    40-832-99




  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
    40-832-99




  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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