Senate Bill 0074c2

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    Florida Senate - 2000                      CS for CS for SB 74

    By the Committees on Fiscal Resource, Education and Senator
    Sebesta




    314-2065-00

  1                      A bill to be entitled

  2         An act relating to the State University System;

  3         creating s. 240.6065, F.S.; establishing the

  4         industrial partnership professorship program

  5         within the State University System; providing

  6         that certain professorships shall be

  7         established by contract; providing for

  8         contribution by sponsoring corporations;

  9         specifying percentage of such contribution;

10         providing for credit against the corporate

11         income tax for contributions made by a

12         sponsoring corporation; creating s. 220.192,

13         F.S.; providing a credit against the corporate

14         income tax for contributions made by a

15         corporation sponsoring an industrial

16         partnership professorship; providing for

17         carryover of the credit; providing for

18         reduction of credit under certain

19         circumstances; authorizing rules; amending s.

20         220.02, F.S.; providing order of credits

21         against the tax; providing for future repeal of

22         ss. 240.6065, 220.192, F.S.; amending s.

23         220.13, F.S.; providing an addition to adjusted

24         federal income; providing an effective date.

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26  Be It Enacted by the Legislature of the State of Florida:

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28         Section 1.  Section 240.6065, Florida Statutes, is

29  created to read:

30         240.6065  Industrial partnership professorships.--

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    Florida Senate - 2000                      CS for CS for SB 74
    314-2065-00




  1         (1)  LEGISLATIVE INTENT.--The Legislature recognizes

  2  that while mastery of a formal knowledge base within academic

  3  disciplines is critical to the success of today's university

  4  graduates, there are practical components of many disciplines

  5  which can best and most effectively be transmitted by persons

  6  possessing significant expertise in a particular field gained

  7  through years of practical experience.  The Legislature also

  8  recognizes that this is particularly true in the case of

  9  disciplines in which the rapid pace of technological

10  development quickly renders even the most recent texts and

11  research outdated, and that the availability to students of

12  instructors whose primary vocation is as a practitioner,

13  rather than an academic, can be invaluable.

14         (2)  INDUSTRIAL PARTNERSHIP PROFESSORSHIP

15  PROGRAM.--There is established within the State University

16  System an Industrial Partnership Professorship Program. A

17  maximum of 15 professorships may be established by the Board

18  of Regents for the purpose of bringing into a university

19  setting instructional or research personnel whose formal

20  training and experiential backgrounds are not primarily those

21  required of traditional university faculty or instructional

22  personnel.

23         (a)  Industrial partnership professorships shall be

24  established at any university within the State University

25  System by means of a contract between the university and a

26  corporation or corporations agreeing to sponsor the

27  professorship. A contract for an industrial partnership

28  professorship shall be for a sponsorship minimum of 1 year and

29  may be renewed for additional periods. The contract must

30  include the terms and conditions of employment of an

31  industrial partnership professor and the amount the sponsoring

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    Florida Senate - 2000                      CS for CS for SB 74
    314-2065-00




  1  corporation or corporations are to contribute on a yearly

  2  basis to the establishment and maintenance of the

  3  professorship. The sponsoring corporation shall provide

  4  two-thirds of the costs of each professorship and the State

  5  University System shall provide one-third.

  6         (b)  Total expenditures by the State University System

  7  for the Industrial Partnership Professorship Program may not

  8  exceed $500,000 in any fiscal year.

  9         (c)  The university may use existing personnel

10  classifications as appropriate for the duties of the

11  industrial partnership professor.

12         (d)  In consideration for sponsoring an industrial

13  partnership professorship, the corporation or corporations

14  sponsoring the professorship shall be allowed an annual credit

15  against the corporate income tax, as provided in s. 220.192,

16  for one-half of the amount contributed to the establishment

17  and maintenance of an industrial partnership professorship

18  during the corporate tax year.

19         (3)  The Department of Revenue may adopt rules to

20  administer this section.

21         Section 2.  Section 220.192, Florida Statutes, is

22  created to read:

23         220.192  Industrial partnership professorship tax

24  credit.--

25         (1)  A credit against the tax imposed by this chapter

26  shall be allowed to any corporation that enters into a

27  contract with a university within the State University System

28  for the establishment of an industrial partnership

29  professorship as provided in s. 240.6065, which credit shall

30  be equal to one-half of the amount of such corporation's

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    Florida Senate - 2000                      CS for CS for SB 74
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  1  contribution during its tax year to the establishment and

  2  maintenance of an industrial partnership professorship.

  3         (2)  If any credit granted pursuant to this section is

  4  not fully used in the first year for which it becomes

  5  available, the unused amount may be carried forward for a

  6  period not to exceed 5 years.  The carryover may be used in a

  7  subsequent year when the tax imposed by this chapter for such

  8  year exceeds the credit for such year under this section after

  9  applying the other credits and unused credit carryovers in the

10  order provided in s. 220.02(10).

11         (3)  The credit granted under this section shall be

12  reduced to the extent that the duties of the Industrial

13  Partnership Professorship include sponsored research

14  contracts, as defined in s. 220.15(2)(c).

15         (4)  The Department of Revenue may adopt rules to

16  administer this section.

17         Section 3.  Subsection (10) of section 220.02, Florida

18  Statutes, is amended to read:

19         220.02  Legislative intent.--

20         (10)  It is the intent of the Legislature that credits

21  against either the corporate income tax or the franchise tax

22  be applied in the following order: those enumerated in s.

23  220.18, those enumerated in s. 631.828, those enumerated in s.

24  220.191, those enumerated in s. 220.181, those enumerated in

25  s. 220.183, those enumerated in s. 220.182, those enumerated

26  in s. 220.1895, those enumerated in s. 221.02, those

27  enumerated in s. 220.184, those enumerated in s. 220.186,

28  those enumerated in s. 220.188, those enumerated in s.

29  220.1845, those enumerated in s. 220.19, and those enumerated

30  in s. 220.185, and those enumerated in s. 220.192.

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    Florida Senate - 2000                      CS for CS for SB 74
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  1         Section 4.  Paragraph (a) of subsection (1) of s.

  2  220.13, Florida Statutes, is amended to read:

  3         220.13  "Adjusted federal income" defined.--

  4         (1)  The term "adjusted federal income" means an amount

  5  equal to the taxpayer's taxable income as defined in

  6  subsection (2), or such taxable income of more than one

  7  taxpayer as provided in s. 220.131, for the taxable year,

  8  adjusted as follows:

  9         (a)  Additions.--There shall be added to such taxable

10  income:

11         1.  The amount of any tax upon or measured by income,

12  excluding taxes based on gross receipts or revenues, paid or

13  accrued as a liability to the District of Columbia or any

14  state of the United States which is deductible from gross

15  income in the computation of taxable income for the taxable

16  year.

17         2.  The amount of interest which is excluded from

18  taxable income under s. 103(a) of the Internal Revenue Code or

19  any other federal law, less the associated expenses disallowed

20  in the computation of taxable income under s. 265 of the

21  Internal Revenue Code or any other law, excluding 60 percent

22  of any amounts included in alternative minimum taxable income,

23  as defined in s. 55(b)(2) of the Internal Revenue Code, if the

24  taxpayer pays tax under s. 220.11(3).

25         3.  In the case of a regulated investment company or

26  real estate investment trust, an amount equal to the excess of

27  the net long-term capital gain for the taxable year over the

28  amount of the capital gain dividends attributable to the

29  taxable year.

30         4.  That portion of the wages or salaries paid or

31  incurred for the taxable year which is equal to the amount of

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    Florida Senate - 2000                      CS for CS for SB 74
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  1  the credit allowable for the taxable year under s. 220.181.

  2  The provisions of this subparagraph shall expire and be void

  3  on June 30, 2005.

  4         5.  That portion of the ad valorem school taxes paid or

  5  incurred for the taxable year which is equal to the amount of

  6  the credit allowable for the taxable year under s. 220.182.

  7  The provisions of this subparagraph shall expire and be void

  8  on June 30, 2005.

  9         6.  The amount of emergency excise tax paid or accrued

10  as a liability to this state under chapter 221 which tax is

11  deductible from gross income in the computation of taxable

12  income for the taxable year.

13         7.  That portion of assessments to fund a guaranty

14  association incurred for the taxable year which is equal to

15  the amount of the credit allowable for the taxable year.

16         8.  In the case of a nonprofit corporation which holds

17  a pari-mutuel permit and which is exempt from federal income

18  tax as a farmers' cooperative, an amount equal to the excess

19  of the gross income attributable to the pari-mutuel operations

20  over the attributable expenses for the taxable year.

21         9.  The amount taken as a credit for the taxable year

22  under s. 220.1895 and s. 220.192.

23         10.  Up to nine percent of the eligible basis of any

24  designated project which is equal to the credit allowable for

25  the taxable year under s. 220.185.

26         Section 5.  Sections 240.6065 and 220.192, Florida

27  Statutes, as created by this act, are repealed July 1, 2010.

28         Section 6.  This act shall take effect July 1, 2000.

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    Florida Senate - 2000                      CS for CS for SB 74
    314-2065-00




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                             CS/SB 74

  3

  4  This committee substitute clarifies that the time period
    applicable to claiming credits is the taxpayer's tax year.
  5
    It clarifies that the same activity cannot receive credits
  6  under the Industrial Partnership Professor program for work
    done under sponsored research contracts.
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    It provides for credits under the Industrial Partnership
  8  Professor program to be added back to adjusted federal income.

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