Senate Bill sb0406

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    Florida Senate - 2004                                   SB 406

    By Senator Margolis





    35-114-04

  1                      A bill to be entitled

  2         An act relating to the corporate income tax;

  3         creating s. 220.192, F.S.; providing a credit

  4         against the tax for contributions to nonprofit

  5         cultural organizations; providing legislative

  6         purpose; defining terms; providing limitations

  7         on individual credits; providing for

  8         administration by the Department of Revenue and

  9         the Division of Cultural Affairs of the

10         Department of State; requiring the department

11         and the division to adopt rules; providing an

12         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 220.192, Florida Statutes, is

17  created to read:

18         220.192  Credits for contributions to nonprofit

19  cultural organizations.--

20         (1)  PURPOSE.--The purpose of this section is to

21  encourage private, voluntary contributions to organizations

22  that promote cultural activities, either by encouraging the

23  talents of creative individuals or by helping to provide an

24  audience for cultural activities.

25         (2)  DEFINITIONS.--As used in this section, the term:

26         (a)  "Cultural" means the disciplines of dance, music,

27  theater, visual arts, literature, media arts,

28  interdisciplinary and multidisciplinary, and programs of

29  museums.

30         (b)  "Department" means the Department of Revenue.

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    Florida Senate - 2004                                   SB 406
    35-114-04




 1         (c)  "Eligible contribution" means a monetary

 2  contribution from a taxpayer, subject to the restrictions

 3  provided in this section, to an eligible cultural

 4  organization.

 5         (d)  "Eligible cultural organization" means a nonprofit

 6  cultural organization that is exempt from federal income tax

 7  under s. 501(c)(3) of the Internal Revenue Code and that is

 8  engaged in cultural activities.

 9         (3)  AUTHORIZATION TO GRANT CULTURAL ORGANIZATIONS TAX

10  CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS.--

11         (a)  There is allowed a credit of 50 percent of the

12  amount of an eligible contribution, which contribution is in

13  the amount of $60,000 or more, against any tax due for a

14  taxable year under this chapter. However, such a credit is

15  inapplicable to a particular corporation after the aggregate

16  amount of the contributions to such organizations given by the

17  corporation in any one taxable year exceeds $600,000.

18         (b)  A taxpayer who files a Florida consolidated return

19  as a member of an affiliated group pursuant to s. 220.131(1)

20  may be allowed the credit on a consolidated return basis;

21  however, the total credit taken by the affiliated group is

22  subject to the limitation established under paragraph (a).

23         (4)  ADMINISTRATION; RULES.--

24         (a)  If the credit granted under this section is not

25  fully used in any one year, the unused amount may not be

26  carried forward. A taxpayer may not convey, assign, or

27  transfer the credit authorized by this section to another

28  entity unless all of the assets of the taxpayer are conveyed,

29  assigned, or transferred in the same transaction.

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    Florida Senate - 2004                                   SB 406
    35-114-04




 1         (b)  An application for a tax credit pursuant to this

 2  section shall be submitted to the department on forms

 3  established by rule of the department.

 4         (c)  The department and the Division of Cultural

 5  Affairs of the Department of State shall develop a cooperative

 6  agreement to assist in the administration of this section.

 7         (d)  The department shall adopt rules necessary to

 8  administer this section, including rules establishing

 9  application forms and procedures.

10         (e)  The division shall adopt rules necessary to

11  determine the eligibility of nonprofit cultural organizations.

12         Section 2.  This act shall take effect July 1, 2004.

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15                          SENATE SUMMARY

16    Provides a credit against the corporate income tax in the
      amount of 50 percent of contributions in the amount of
17    $60,000 or more, but not exceeding $600,000 per
      corporation, per year, to nonprofit cultural
18    organizations. Provides legislative purpose. Defines
      terms. Provides for administration and rulemaking.
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