Senate Bill sb0742

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    Florida Senate - 2006                                   SB 742

    By Senator Bullard





    39-441-06

  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 donations of used

  5         equipment, such as computers and computer

  6         parts, to educational institutions in this

  7         state; providing for the carryover of tax

  8         credits; providing application requirements;

  9         providing for administration; amending s.

10         220.02, F.S.; providing the order in which this

11         credit may be taken; providing an effective

12         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 donating used equipment to

19  educational institutions.--

20         (1)  AUTHORIZATION TO GRANT TAX CREDITS FOR DONATED

21  EQUIPMENT.--

22         (a)  There shall be allowed a credit against the tax

23  imposed by this chapter in the amount of 25 percent of the

24  retail cost of used equipment that the corporation has donated

25  to, and that has been accepted by, a public school, college,

26  or university in this state. Such equipment may include, but

27  need not be limited to, desktop computers, laptop computers,

28  and computer parts.

29         (b)  If the credit granted under this section is not

30  fully used in any one year because of insufficient tax

31  liability on the part of the corporation, the unused amount

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    Florida Senate - 2006                                   SB 742
    39-441-06




 1  may be carried forward for a period not to exceed 5 years. The

 2  carryover credit may be used in a subsequent year when the tax

 3  imposed by this chapter for that year exceeds the credit for

 4  which the corporation is eligible in that year under this

 5  section after applying the other credits and unused carryovers

 6  in the order provided by s. 220.02(8).

 7         (2)  APPLICATION REQUIREMENTS.--To apply for a tax

 8  credit under this section, a corporation must submit to the

 9  department an application form, a copy of the corporation's

10  receipt for the purchase of the equipment, and a letter from

11  the donee institution which verifies the institution's

12  acceptance of the donation.

13         (3)  ADMINISTRATION.--The Department of Revenue may

14  adopt rules for administering this section.

15         Section 2.  Subsection (8) of section 220.02, Florida

16  Statutes, is amended to read:

17         220.02  Legislative intent.--

18         (8)  It is the intent of the Legislature that credits

19  against either the corporate income tax or the franchise tax

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

21  631.828, those enumerated in s. 220.191, those enumerated in

22  s. 220.181, those enumerated in s. 220.183, those enumerated

23  in s. 220.182, those enumerated in s. 220.1895, those

24  enumerated in s. 221.02, those enumerated in s. 220.184, those

25  enumerated in s. 220.186, those enumerated in s. 220.1845,

26  those enumerated in s. 220.19, those enumerated in s. 220.185,

27  and those enumerated in s. 220.187, and those enumerated in s.

28  220.192.

29         Section 3.  This act shall take effect July 1, 2006.

30  

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    Florida Senate - 2006                                   SB 742
    39-441-06




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 2                          SENATE SUMMARY

 3    Provides a credit against the corporate income tax for
      donations of used equipment, such as computers and
 4    computer parts, to educational institutions in this
      state. Provides for the carryover of tax credits for up
 5    to 5 years. Provides application requirements. Requires
      the Department of Revenue to adopt rules for
 6    administering the tax credits. Provides for the order in
      which this credit may be taken, relative to other credits
 7    against the corporate income tax.

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