HB 0383 2004
1	A bill to be entitled
2	An act relating to corporate income tax credit for public
3	education partners; creating s. 220.1875, F.S.; providing
4	purpose to encourage contributions by corporations to
5	public schools or public school programs for which tax
6	credit shall be given; providing definitions; providing
7	authorization to grant tax credits and limitations on
8	credits; providing public school requirements for
9	expenditure and accounting of funds; requiring eligible
10	contributions to be supplemental funds; providing for
11	administration and rulemaking; requiring a cooperative
12	agreement; amending ss. 220.02 and 220.13, F.S., to
13	conform; providing an effective date.
14
15	Be It Enacted by the Legislature of the State of Florida:
16
17	Section 1. Section 220.1875, Florida Statutes, is created
18	to read:
19	220.1875 Credits for contributions by public education
20	partners.--
21	(1) PURPOSE.--The purpose of this section is to:
22	(a) Encourage private, voluntary contributions to public
23	schools to enhance educational opportunities for students.
24	(b) Encourage the formation of partnerships between
25	corporations and public schools.
26	(c) Enable public school students to achieve a greater
27	level of excellence in their education through contributions by
28	public education partners.
29	(2) DEFINITIONS.--As used in this section, the term:
30	(a) "Department" means the Department of Revenue.
31	(b) "Eligible contribution" means a monetary contribution
32	from a taxpayer to a public school, subject to the restrictions
33	provided in this section. The taxpayer making the contribution
34	may designate a specific public school or a specific program in
35	a public school as the beneficiary of the contribution. The
36	taxpayer may not contribute more than $5 million to any single
37	public school.
38	(3) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS ON
39	INDIVIDUAL AND TOTAL CREDITS.--
40	(a) There is allowed a credit of 100 percent of an
41	eligible contribution against any tax due for a taxable year
42	under this chapter. However, such a credit may not exceed 75
43	percent of the tax due under this chapter for the taxable year,
44	after the application of any other allowable credits by the
45	taxpayer. The credit granted by this section shall be reduced by
46	the difference between the amount of federal corporate income
47	tax taking into account the credit granted by this section and
48	the amount of federal corporate income tax without application
49	of the credit granted by this section.
50	(b) The total amount of tax credits and carryforward of
51	tax credits which may be granted each state fiscal year under
52	this section is $88 million. However, at least 5 percent of the
53	total statewide amount authorized for the tax credit shall be
54	reserved for taxpayers who meet the definition of a small
55	business provided in s. 288.703(1) at the time of application.
56	(c) A taxpayer who files a Florida consolidated return as
57	a member of an affiliated group pursuant to s. 220.131(1) may be
58	allowed the credit on a consolidated return basis; however, the
59	total credit taken by the affiliated group is subject to the
60	limitation established under paragraph (a).
61	(4) REQUIREMENTS.--
62	(a) A public school that receives an eligible contribution
63	must spend 100 percent of the eligible contribution for the
64	purpose specified by the contributor. All interest accrued from
65	an eligible contribution must be used for the purpose specified
66	by the contributor.
67	(b) A public school that receives an eligible contribution
68	must maintain a separate account for the eligible contribution
69	and must annually provide to the district school board and the
70	Department of Education a financial accounting of the use of the
71	contribution. A public school shall budget wisely and use sound
72	financial practices in the use of an eligible contribution.
73	(c) Payment of an eligible contribution shall be made to a
74	public school through the district school board.
75	(d) An eligible contribution shall not replace, but shall
76	be supplemental to, funds provided by the state to public school
77	districts pursuant to chapter 1011.
78	(5) ADMINISTRATION; RULES.--
79	(a) If the credit granted pursuant to this section is not
80	fully used in any one year because of insufficient tax liability
81	on the part of the corporation, the unused amount may be carried
82	forward for a period not to exceed 3 years; however, any
83	taxpayer that seeks to carry forward an unused amount of tax
84	credit must submit an application for allocation of tax credits
85	or carryforward credits as required in paragraph (b) in the year
86	that the taxpayer intends to use the carryforward. A taxpayer
87	may not convey, assign, or transfer the credit authorized by
88	this section to another entity unless all of the assets of the
89	taxpayer are conveyed, assigned, or transferred in the same
90	transaction.
91	(b) The department shall adopt rules pursuant to ss.
92	120.536(1) and 120.54 for the administration of this section,
93	including rules establishing application forms and procedures
94	and rules governing the allocation of tax credits and
95	carryforward credits under this section.
96	(c) The State Board of Education shall adopt rules
97	pursuant to ss. 120.536(1) and 120.54 for the distribution and
98	use of contributions.
99	(d) The department and the Department of Education shall
100	develop a cooperative agreement to assist in the administration
101	of this section.
102	Section 2. Subsection (8) of section 220.02, Florida
103	Statutes, is amended to read:
104	220.02 Legislative intent.--
105	(8) It is the intent of the Legislature that credits
106	against either the corporate income tax or the franchise tax be
107	applied in the following order: those enumerated in s. 631.828,
108	those enumerated in s. 220.191, those enumerated in s. 220.181,
109	those enumerated in s. 220.183, those enumerated in s. 220.182,
110	those enumerated in s. 220.1895, those enumerated in s. 221.02,
111	those enumerated in s. 220.184, those enumerated in s. 220.186,
112	those enumerated in s. 220.1845, those enumerated in s. 220.19,
113	those enumerated in s. 220.185, andthose enumerated in s.
114	220.187, and those enumerated in s. 220.1875.
115	Section 3. Paragraph (a) of subsection (1) of section
116	220.13, Florida Statutes, is amended to read:
117	220.13 "Adjusted federal income" defined.--
118	(1) The term "adjusted federal income" means an amount
119	equal to the taxpayer's taxable income as defined in subsection
120	(2), or such taxable income of more than one taxpayer as
121	provided in s. 220.131, for the taxable year, adjusted as
122	follows:
123	(a) Additions.--There shall be added to such taxable
124	income:
125	1. The amount of any tax upon or measured by income,
126	excluding taxes based on gross receipts or revenues, paid or
127	accrued as a liability to the District of Columbia or any state
128	of the United States which is deductible from gross income in
129	the computation of taxable income for the taxable year.
130	2. The amount of interest which is excluded from taxable
131	income under s. 103(a) of the Internal Revenue Code or any other
132	federal law, less the associated expenses disallowed in the
133	computation of taxable income under s. 265 of the Internal
134	Revenue Code or any other law, excluding 60 percent of any
135	amounts included in alternative minimum taxable income, as
136	defined in s. 55(b)(2) of the Internal Revenue Code, if the
137	taxpayer pays tax under s. 220.11(3).
138	3. In the case of a regulated investment company or real
139	estate investment trust, an amount equal to the excess of the
140	net long-term capital gain for the taxable year over the amount
141	of the capital gain dividends attributable to the taxable year.
142	4. That portion of the wages or salaries paid or incurred
143	for the taxable year which is equal to the amount of the credit
144	allowable for the taxable year under s. 220.181. The provisions
145	of this subparagraph shall expire and be void on June 30, 2005.
146	5. That portion of the ad valorem school taxes paid or
147	incurred for the taxable year which is equal to the amount of
148	the credit allowable for the taxable year under s. 220.182. The
149	provisions of this subparagraph shall expire and be void on June
150	30, 2005.
151	6. The amount of emergency excise tax paid or accrued as a
152	liability to this state under chapter 221 which tax is
153	deductible from gross income in the computation of taxable
154	income for the taxable year.
155	7. That portion of assessments to fund a guaranty
156	association incurred for the taxable year which is equal to the
157	amount of the credit allowable for the taxable year.
158	8. In the case of a nonprofit corporation which holds a
159	pari-mutuel permit and which is exempt from federal income tax
160	as a farmers' cooperative, an amount equal to the excess of the
161	gross income attributable to the pari-mutuel operations over the
162	attributable expenses for the taxable year.
163	9. The amount taken as a credit for the taxable year under
164	s. 220.1895.
165	10. Up to nine percent of the eligible basis of any
166	designated project which is equal to the credit allowable for
167	the taxable year under s. 220.185.
168	11. The amount taken as a credit for the taxable year
169	under s. 220.187.
170	12. The amount taken as a credit for the taxable year
171	under s. 220.1875.
172	Section 4. This act shall take effect July 1, 2004.