Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1230
Barcode 132332
CHAMBER ACTION
Senate House
.
.
1 .
.
2 .
.
3 .
.
4 ______________________________________________________________
5
6
7
8
9
10 ______________________________________________________________
11 The Committee on Commerce and Consumer Services (Margolis)
12 recommended the following amendment:
13
14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
16
17 and insert:
18 Section 1. Section 220.192, Florida Statutes, is
19 created to read:
20 220.192 Employee fitness tax credits.--
21 (1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
22 (a) A taxpayer shall be allowed a credit against any
23 tax due for a taxable year under this chapter equal to 10
24 percent of the taxpayer's expenditures during the taxable year
25 for:
26 1. The costs of equipping, operating, and maintaining
27 a facility owned by the taxpayer, located on the taxpayer's
28 premises, and used exclusively for the purpose of promoting
29 the physical fitness of the taxpayer's employees in this
30 state, including, but not limited to, a gymnasium, weight
31 training room, aerobics workout space, swimming pool, running
1
8:20 AM 03/08/06 s1230d-cm35-t2b
Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1230
Barcode 132332
1 track, or any indoor or outdoor court, field, or other site
2 used for competitive sports events or games;
3 2. The costs, to the extent not covered in
4 subparagraph 1., of equipping and providing any related
5 financial support for an amateur athletic team that engages in
6 vigorous athletic activity and is under the sponsorship of the
7 taxpayer, either alone or jointly with one or more other
8 employers, if the membership of the team consists entirely of
9 employees of the taxpayer in this state or the taxpayer and
10 another employer or employers with whom the taxpayer has
11 joined to provide employee fitness equipment and financial
12 support;
13 3. The cost of subsidizing an employee's membership to
14 a health studio as defined by s. 501.0125; and
15 4. Fifty percent of the cost of employing a qualified
16 person or organization to provide, on the taxpayer's business
17 premises in this state:
18 a. Information and guidance on subjects relating to
19 personal and family health, such as nutrition, hygiene, and
20 methods of preventing, recognizing, and combating substance
21 abuse; or
22 b. Instruction in and opportunity for fitness
23 enhancement activity, including, but not limited to, dance or
24 other aerobic exercise, yoga, muscle stretching, and martial
25 arts routines.
26 (b) Credits authorized under this section for any
27 taxpayer may not exceed 50 percent of the tax due under this
28 chapter for any taxable year.
29 (c) Credits authorized under this section for any
30 taxpayer may not exceed $50 multiplied by the average of the
31 number of full-time equivalent employees of the taxpayer in
2
8:20 AM 03/08/06 s1230d-cm35-t2b
Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1230
Barcode 132332
1 this state as of the last day of the 3rd, 6th, 9th, and 12th
2 months of the taxable year.
3 (d) Two or more taxpayers may join together to
4 establish and operate an employee fitness facility, provide
5 employee fitness equipment and financial support, or provide
6 employee fitness instruction in accordance with this section.
7 The participating taxpayers may apportion the annual employee
8 fitness credits in any manner they consider appropriate, but a
9 jointly operated employee fitness facility established under
10 this section may not receive more than $50 multiplied by the
11 average of the number of full-time equivalent employees of the
12 participating taxpayers in this state as of the last day of
13 the 3rd, 6th, 9th, and 12th months of the taxable year.
14 (e) A taxpayer, or two or more taxpayers acting
15 jointly, may employ a not-for-profit corporation to:
16 1. Operate an employee fitness facility;
17 2. Provide employee fitness equipment and financial
18 support; or
19 3. Provide employee fitness instruction,
20
21 on the taxpayers premises in this state.
22 (f) If the credit granted under this section is not
23 fully used in any one year because of insufficient tax
24 liability on the part of the corporation, the unused amount
25 may be carried forward for a period not to exceed 5 years. The
26 carryover credit may be used in a subsequent year when the tax
27 imposed by this chapter for that year exceeds the credit for
28 which the corporation is eligible in that year under this
29 section after applying the other credits and unused carryovers
30 in the order provided by s. 220.02(8).
31 (g) A taxpayer that files a consolidated return in
3
8:20 AM 03/08/06 s1230d-cm35-t2b
Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1230
Barcode 132332
1 this state as a member of an affiliated group under s. 220.131
2 may be allowed the credit on a consolidated return basis.
3 (h) A taxpayer that is eligible to receive credit
4 under s. 624.5108 is ineligible to receive credit under this
5 section.
6 (i) An expenditure by a taxpayer to provide any of the
7 employee fitness benefits described in paragraph (a) does not
8 qualify for a credit under this section unless the benefit is
9 extended equally to all full-time employees in this state.
10 (j) Credits authorized under this section are not
11 available to any professional sports franchise or facility or
12 to any taxpayer whose primary business activity is operating a
13 fitness facility or providing any services eligible for
14 credits under this section.
15 (2) ADMINISTRATION.--
16 (a) The Department of Revenue shall adopt rules and
17 forms necessary to administer this section, including rules to
18 provide for cooperative arrangements between taxpayers and
19 not-for-profit corporations.
20 (b) Verification of payments to a not-for-profit
21 corporation or to a person who provides health or fitness
22 instruction to a taxpayer's employees must be in writing and
23 must be retained by the taxpayer in support of the credit
24 claimed on the tax return.
25 (c) Application for credit for payments made to
26 construct or rehabilitate a facility used for the purpose of
27 promoting the physical fitness of the taxpayer's employees in
28 this state must be submitted to the department within 6 months
29 after the local building inspector deems that the construction
30 or rehabilitation of the facility is substantially completed.
31 Application for credit for eligible expenditures pursuant to
4
8:20 AM 03/08/06 s1230d-cm35-t2b
Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1230
Barcode 132332
1 paragraph (1)(a) must be submitted to the department with the
2 tax return on which the credit is claimed.
3 (d) A business that files an amended return for a
4 taxable year may not receive any amount of credit or credit
5 carryforward pursuant to this section in excess of the amount
6 claimed by the business on its original return for the taxable
7 year. This subsection does not apply to increases in the
8 amount of credit claimed under this section on an amended
9 return due to the use of any credit amount previously carried
10 forward for the taxable year on the original return or any
11 eligible prior year under paragraph (1)(f).
12 (3) EXPIRATION.--This section expires on December 31,
13 2016, except that paragraph (1)(f), which relates to carryover
14 credits, does not expire on that date.
15 (4) DEFINITIONS.--As used in this section, the term:
16 (a) "Amateur athletic team" means a team of persons
17 who engage in competitive athletic events for which no
18 monetary remuneration is provided, all of whom are employed by
19 the taxpayer or an employer with whom the taxpayer has joined
20 to provide employee fitness equipment and financial support.
21 (b) "Qualified person" means a person certified by a
22 recognized national organization to provide the instruction
23 for which a tax credit is being sought.
24 (c) "Vigorous athletic activity" means exertion that
25 makes a person sweat and breathe hard, such as basketball,
26 soccer, running, swimming laps, fast bicycling, fast dancing,
27 and similar aerobic activities.
28 Section 2. Subsection (8) of section 220.02, Florida
29 Statutes, is amended to read:
30 220.02 Legislative intent.--
31 (8) It is the intent of the Legislature that credits
5
8:20 AM 03/08/06 s1230d-cm35-t2b
Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1230
Barcode 132332
1 against either the corporate income tax or the franchise tax
2 be applied in the following order: those enumerated in s.
3 631.828, those enumerated in s. 220.191, those enumerated in
4 s. 220.181, those enumerated in s. 220.183, those enumerated
5 in s. 220.182, those enumerated in s. 220.1895, those
6 enumerated in s. 221.02, those enumerated in s. 220.184, those
7 enumerated in s. 220.186, those enumerated in s. 220.1845,
8 those enumerated in s. 220.19, those enumerated in s. 220.185,
9 and those enumerated in s. 220.187, and those enumerated in s.
10 220.192.
11 Section 3. Paragraph (a) of subsection (1) of section
12 220.13, Florida Statutes, is amended to read:
13 220.13 "Adjusted federal income" defined.--
14 (1) The term "adjusted federal income" means an amount
15 equal to the taxpayer's taxable income as defined in
16 subsection (2), or such taxable income of more than one
17 taxpayer as provided in s. 220.131, for the taxable year,
18 adjusted as follows:
19 (a) Additions.--There shall be added to such taxable
20 income:
21 1. The amount of any tax upon or measured by income,
22 excluding taxes based on gross receipts or revenues, paid or
23 accrued as a liability to the District of Columbia or any
24 state of the United States which is deductible from gross
25 income in the computation of taxable income for the taxable
26 year.
27 2. The amount of interest which is excluded from
28 taxable income under s. 103(a) of the Internal Revenue Code or
29 any other federal law, less the associated expenses disallowed
30 in the computation of taxable income under s. 265 of the
31 Internal Revenue Code or any other law, excluding 60 percent
6
8:20 AM 03/08/06 s1230d-cm35-t2b
Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1230
Barcode 132332
1 of any amounts included in alternative minimum taxable income,
2 as defined in s. 55(b)(2) of the Internal Revenue Code, if the
3 taxpayer pays tax under s. 220.11(3).
4 3. In the case of a regulated investment company or
5 real estate investment trust, an amount equal to the excess of
6 the net long-term capital gain for the taxable year over the
7 amount of the capital gain dividends attributable to the
8 taxable year.
9 4. That portion of the wages or salaries paid or
10 incurred for the taxable year which is equal to the amount of
11 the credit allowable for the taxable year under s. 220.181.
12 The provisions of this subparagraph shall expire and be void
13 on June 30, 2005.
14 5. That portion of the ad valorem school taxes paid or
15 incurred for the taxable year which is equal to the amount of
16 the credit allowable for the taxable year under s. 220.182.
17 The provisions of this subparagraph shall expire and be void
18 on June 30, 2005.
19 6. The amount of emergency excise tax paid or accrued
20 as a liability to this state under chapter 221 which tax is
21 deductible from gross income in the computation of taxable
22 income for the taxable year.
23 7. That portion of assessments to fund a guaranty
24 association incurred for the taxable year which is equal to
25 the amount of the credit allowable for the taxable year.
26 8. In the case of a nonprofit corporation which holds
27 a pari-mutuel permit and which is exempt from federal income
28 tax as a farmers' cooperative, an amount equal to the excess
29 of the gross income attributable to the pari-mutuel operations
30 over the attributable expenses for the taxable year.
31 9. The amount taken as a credit for the taxable year
7
8:20 AM 03/08/06 s1230d-cm35-t2b
Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1230
Barcode 132332
1 under s. 220.1895.
2 10. Up to nine percent of the eligible basis of any
3 designated project which is equal to the credit allowable for
4 the taxable year under s. 220.185.
5 11. The amount taken as a credit for the taxable year
6 under s. 220.187.
7 12. The amount taken as a credit under s. 220.192.
8 Section 4. Section 624.5108, Florida Statutes, is
9 created to read:
10 624.5108 Employee fitness tax credits; definitions;
11 authorization; limitations; eligibility and application
12 requirements; administration; expiration.--
13 (1) DEFINITIONS.--As used in this section, the term:
14 (a) "Amateur athletic team" means a team of persons
15 who engage in competitive athletic events for which no
16 monetary remuneration is provided, all of whom are employed by
17 the taxpayer or an employer with whom the taxpayer has joined
18 to provide employee fitness equipment and financial support.
19 (b) "Department" means the Department of Revenue.
20 (c) "Employee fitness costs" means:
21 1. The costs of equipping, operating, and maintaining
22 a facility owned by the taxpayer, located on the taxpayer's
23 premises, and used exclusively for the purpose of promoting
24 the physical fitness of the taxpayer's employees in this
25 state, including, but not limited to, a gymnasium, weight
26 training room, aerobics workout space, swimming pool, running
27 track, or any indoor or outdoor court, field, or other site
28 used for competitive sports events or games;
29 2. The costs, to the extent not covered in
30 subparagraph 1., of equipping and providing any related
31 financial support for an amateur athletic team that engages in
8
8:20 AM 03/08/06 s1230d-cm35-t2b
Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1230
Barcode 132332
1 vigorous athletic activity under the sponsorship of the
2 taxpayer, either alone or jointly with one or more other
3 employers, if the membership of the team consists entirely of
4 employees of the taxpayer in this state or the taxpayer and
5 another employer or employers, as appropriate; and
6 3. Fifty percent of the cost of employing a qualified
7 person or organization to provide, on the taxpayer's business
8 premises in this state:
9 a. Information and guidance on subjects relating to
10 personal and family health, such as nutrition, hygiene, and
11 methods of preventing, recognizing, and combating substance
12 abuse; or
13 b. Instruction in and opportunity for fitness
14 enhancement activity, including, but not limited to, dance or
15 other aerobic exercise, yoga, muscle stretching, and martial
16 arts routines.
17 (d) "Qualified person" means a person certified by a
18 recognized national organization to provide the instruction
19 for which a tax credit is being sought.
20 (e) "Vigorous athletic activity" means exertion that
21 makes a person sweat and breathe hard, such as basketball,
22 soccer, running, swimming laps, fast bicycling, fast dancing,
23 and similar aerobic activities.
24 (2) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
25 (a) A credit of 10 percent of employee fitness costs
26 incurred by an insurer during the taxable year is allowed
27 against any tax due for a taxable year under ss. 624.509 and
28 624.510.
29 (b) Credits authorized under this section for any
30 taxpayer may not exceed 50 percent of the tax due under this
31 chapter for any taxable year.
9
8:20 AM 03/08/06 s1230d-cm35-t2b
Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1230
Barcode 132332
1 (c) Credits authorized under this section for any
2 taxpayer may not exceed $50 multiplied by the average of the
3 number of full-time equivalent employees of the insurer in
4 this state as of the last day of the 3rd, 6th, 9th, and 12th
5 months of the taxable year.
6 (d) Two or more taxpayers may join together to
7 establish and operate an employee fitness facility, provide
8 employee fitness equipment and financial support, or provide
9 employee fitness instruction in accordance with this section.
10 The participating taxpayers may apportion the annual employee
11 fitness credits in any manner they consider appropriate, but a
12 jointly operated employee fitness facility established under
13 this section may not receive more than $50 multiplied by the
14 average of the number of full-time equivalent employees of the
15 participating taxpayers in this state as of the last day of
16 the 3rd, 6th, 9th, and 12th months of the taxable year.
17 (e) A taxpayer, or two or more taxpayers acting
18 jointly, may employ a not-for-profit corporation to:
19 1. Operate an employee fitness facility;
20 2. Provide employee fitness equipment and financial
21 support; or
22 3. Provide employee fitness instruction,
23
24 on the taxpayers premises in this state.
25 (f) If the credit granted under this section is not
26 fully used in any one year because of insufficient tax
27 liability on the part of the insurer, the unused amount may be
28 carried forward for a period not to exceed 5 years. The
29 carryover credit may be used in a subsequent year when the tax
30 imposed by ss. 624.509 and 624.510 for that year exceeds the
31 credit for which the insurer is eligible in that year under
10
8:20 AM 03/08/06 s1230d-cm35-t2b
Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1230
Barcode 132332
1 this section.
2 (3) An expenditure by an insurer to provide any of the
3 employee fitness benefits described in paragraph (1)(a) does
4 not qualify for a credit under this section unless the benefit
5 is extended equally to all full-time employees in this state.
6 (4) ADMINISTRATION.--
7 (a) The Department of Revenue shall adopt rules and
8 forms necessary to administer this section, including rules to
9 provide for cooperative arrangements between taxpayers and
10 not-for-profit corporations.
11 (b) Verification of payments to a not-for-profit
12 corporation or to a person who provides health or fitness
13 instruction to a taxpayer's employees must be in writing and
14 must be retained by the taxpayer in support of the credit
15 claimed on the tax return.
16 (c) Application for credit for payments made to
17 construct or rehabilitate a facility used for the purpose of
18 promoting the physical fitness of a taxpayer's employees in
19 this state must be submitted to the department within 6 months
20 after the construction or rehabilitation of the facility is
21 deemed to be substantially completed by the local building
22 code inspector. Application for credit for eligible
23 expenditures pursuant to paragraph (2)(a) must be submitted to
24 the department with the tax return on which the credit is
25 claimed.
26 (d) An insurer that files an amended return for a
27 taxable year is not allowed any amount of credit or credit
28 carryforward pursuant to this section in excess of the amount
29 claimed by such insurer on its original return for the taxable
30 year. The provisions of this subsection do not apply to
31 increases in the amount of credit claimed under this section
11
8:20 AM 03/08/06 s1230d-cm35-t2b
Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1230
Barcode 132332
1 on an amended return due to the use of any credit amount
2 previously carried forward for the taxable year on the
3 original return or any eligible prior year under paragraph
4 (2)(f).
5 (5) EXPIRATION.--This section expires on December 31,
6 2016, except that paragraph (2)(d), which relates to carryover
7 credits, does not expire on that date.
8 Section 5. Subsection (7) of section 624.509, Florida
9 Statutes, is amended to read:
10 624.509 Premium tax; rate and computation.--
11 (7) Credits and deductions against the tax imposed by
12 this section shall be taken in the following order: deductions
13 for assessments made pursuant to s. 440.51; credits for taxes
14 paid under ss. 175.101 and 185.08; credits for income taxes
15 paid under chapter 220, the emergency excise tax paid under
16 chapter 221, and the credit allowed under subsection (5), as
17 these credits are limited by subsection (6); employee fitness
18 tax credits authorized under s. 624.5108; and all other
19 available credits and deductions.
20 Section 6. This act shall take effect January 1, 2007,
21 and shall apply to tax years beginning on or after that date.
22
23
24 ================ T I T L E A M E N D M E N T ===============
25 And the title is amended as follows:
26 Delete everything before the enacting clause
27
28 and insert:
29 A bill to be entitled
30 An act relating to tax credits for certain
31 taxpayer expenditures to promote employee
12
8:20 AM 03/08/06 s1230d-cm35-t2b
Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1230
Barcode 132332
1 fitness; creating s. 220.192, F.S.; providing a
2 credit against the tax on corporate income for
3 certain taxpayer expenditures relating to
4 providing employee fitness facilities or
5 supporting fitness-related activities by
6 employees; defining terms; amending s. 220.02,
7 F.S.; providing the order in which credits
8 against the corporate income tax shall be
9 taken; amending s. 220.13, F.S.; adding the
10 amount taken as a credit under s. 220.192,
11 F.S., to adjusted federal income; creating s.
12 624.5108, F.S.; providing a credit against the
13 tax on insurers for employee fitness costs, as
14 defined in this act, which are incurred by an
15 insurer; amending s. 624.509, F.S.; providing
16 for the order of credits against the tax on
17 insurers; providing an effective date.
18
19
20
21
22
23
24
25
26
27
28
29
30
31
13
8:20 AM 03/08/06 s1230d-cm35-t2b