HB 325

1	A bill to be entitled
2	An act relating to employee fitness expenditures tax
3	credits; creating s. 220.1925, F.S.; providing a credit
4	against the tax on corporate income for certain taxpayer
5	expenditures relating to providing employee fitness
6	facilities or supporting fitness-related activities by
7	employees; defining terms; amending s. 220.02, F.S.;
8	providing the order in which credits against the corporate
9	income tax shall be taken; amending s. 220.13, F.S.;
10	adding the amount taken as a credit under s. 220.192,
11	F.S., to adjusted federal income; creating s. 624.5108,
12	F.S.; providing a credit against the tax on insurers for
13	employee fitness costs, as defined in this act, which are
14	incurred by an insurer; amending s. 624.509, F.S.;
15	providing for the order of credits against the tax on
16	insurers; providing applicability; providing an effective
17	date.
18
19	Be It Enacted by the Legislature of the State of Florida:
20
21	Section 1.  Section 220.1925, Florida Statutes, is created
22	to read:
23	220.1925  Employee fitness tax credits.--
24	(1)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
25	(a)  A taxpayer shall be allowed a credit against any tax
26	due for a taxable year under this chapter equal to 10 percent of
27	the taxpayer's expenditures during the taxable year for:
28	1.  The costs of equipping, operating, and maintaining a
29	facility owned by the taxpayer, located on the taxpayer's
30	premises, and used exclusively for the purpose of promoting the
31	physical fitness of the taxpayer's employees in this state,
32	including, but not limited to, a gymnasium, weight training
33	room, aerobics workout space, swimming pool, running track, or
34	any indoor or outdoor court, field, or other site used for
35	competitive sports events or games;
36	2.  The costs, to the extent not covered in subparagraph
37	1., of equipping and providing any related financial support for
38	an amateur athletic team that engages in vigorous athletic
39	activity and is under the sponsorship of the taxpayer, sponsored
40	alone or jointly with one or more other employers, if the
41	membership of the team consists entirely of employees of the
42	taxpayer in this state or the taxpayer and another employer or
43	employers with whom the taxpayer has joined to provide employee
44	fitness equipment and financial support;
45	3.  The cost of subsidizing an employee's membership to a
46	health studio as defined by s. 501.0125; and
47	4.  Fifty percent of the cost of employing a qualified
48	person or organization to provide, on the taxpayer's business
49	premises in this state:
50	a.  Information and guidance on subjects relating to
51	personal and family health, such as nutrition, hygiene, and
52	methods of preventing, recognizing, and combating substance
53	abuse; or
54	b.  Instruction in and opportunity for fitness enhancement
55	activities, including, but not limited to, dance, yoga, muscle
56	stretching, martial arts, or other aerobic activities.
57	(b)  Credits authorized under this section for any taxpayer
58	may not exceed 50 percent of the tax due under this chapter for
59	any taxable year.
60	(c)  Credits authorized under this section for any taxpayer
61	may not exceed $50 multiplied by the average of the number of
62	full-time equivalent employees of the taxpayer in this state as
63	of the last day of the 3rd, 6th, 9th, and 12th months of the
64	taxable year.
65	(d)  Two or more taxpayers may join together to establish
66	and operate an employee fitness facility, provide employee
67	fitness equipment and financial support, or provide employee
68	fitness instruction in accordance with this section. The
69	participating taxpayers may apportion the annual employee
70	fitness credits in any manner they consider appropriate, but a
71	jointly operated employee fitness facility established under
72	this section may not receive more than $50 multiplied by the
73	average of the number of full-time equivalent employees of the
74	participating taxpayers in this state as of the last day of the
75	3rd, 6th, 9th, and 12th months of the taxable year.
76	(e)  A taxpayer, or two or more taxpayers acting jointly,
77	may employ a not-for-profit or for-profit corporation to:
78	1.  Operate an employee fitness facility;
79	2.  Provide employee fitness equipment and financial
80	support; or
81	3.  Provide employee fitness instruction
82
83	on the taxpayer's premises in this state.
84	(f)  If the credit granted under this section is not fully
85	used in any one year because of insufficient tax liability on
86	the part of the corporation, the unused amount may be carried
87	forward for a period not to exceed 5 years. The carryover credit
88	may be used in a subsequent year when the tax imposed by this
89	chapter for that year exceeds the credit for which the
90	corporation is eligible in that year under this section after
91	applying the other credits and unused carryovers in the order
92	provided by s. 220.02(8).
93	(g)  A taxpayer that files a consolidated return in this
94	state as a member of an affiliated group under s. 220.131 may be
95	allowed the credit on a consolidated return basis.
96	(h)  A taxpayer that is eligible to receive credit under s.
97	624.5108 is ineligible to receive credit under this section.
98	(i)  An expenditure by a taxpayer to provide any of the
99	employee fitness benefits described in paragraph (a) does not
100	qualify for a credit under this section unless the benefit is
101	extended equally to all full-time employees in this state.
102	(j)  Credits authorized under this section are not
103	available to any professional sports franchise or facility or to
104	any taxpayer whose primary business activity is operating a
105	fitness facility or providing any services eligible for credits
106	under this section.
107	(2)  ADMINISTRATION.--
108	(a)  The Department of Revenue shall adopt rules and forms
109	necessary to administer this section, including rules to provide
110	for cooperative arrangements between taxpayers and not-for-
111	profit or for-profit corporations.
112	(b)  Verification of payments to a not-for-profit or for-
113	profit corporation or to a person who provides health or fitness
114	instruction to a taxpayer's employees must be in writing and
115	must be retained by the taxpayer in support of the credit
116	claimed on the tax return.
117	(c)  Application for credit for payments made to construct
118	or rehabilitate a facility used for the purpose of promoting the
119	physical fitness of the taxpayer's employees in this state must
120	be submitted to the department within 6 months after the local
121	building inspector deems that the construction or rehabilitation
122	of the facility is substantially completed. Application for
123	credit for eligible expenditures pursuant to paragraph (1)(a)
124	must be submitted to the department with the tax return on which
125	the credit is claimed.
126	(d)  A business that files an amended return for a taxable
127	year may not receive any amount of credit or credit carryforward
128	pursuant to this section in excess of the amount claimed by the
129	business on its original return for the taxable year. This
130	subsection does not apply to increases in the amount of credit
131	claimed under this section on an amended return due to the use
132	of any credit amount previously carried forward for the taxable
133	year on the original return or any eligible prior year under
134	paragraph (1)(f).
135	(3)  EXPIRATION.--This section expires on December 31,
136	2017, except that paragraph (1)(f), which relates to carryover
137	credits, does not expire on that date.
138	(4)  DEFINITIONS.--As used in this section, the term:
139	(a)  "Amateur athletic team" means a team of persons who
140	engage in competitive athletic events for which no monetary
141	remuneration is provided, all of whom are employed by the
142	taxpayer or an employer with whom the taxpayer has joined to
143	provide employee fitness equipment and financial support.
144	(b)  "Qualified person" means a person certified by a
145	recognized national organization to provide the instruction for
146	which a tax credit is being sought.
147	(c)  "Vigorous athletic activity" means exertion that makes
148	a person sweat and breathe hard, such as basketball, soccer,
149	running, swimming laps, bicycling, dancing, and similar aerobic
150	activities.
151	Section 2.  Subsection (8) of section 220.02, Florida
152	Statutes, is amended to read:
153	220.02  Legislative intent.--
154	(8)  It is the intent of the Legislature that credits
155	against either the corporate income tax or the franchise tax be
156	applied in the following order: those enumerated in s. 631.828,
157	those enumerated in s. 220.191, those enumerated in s. 220.181,
158	those enumerated in s. 220.183, those enumerated in s. 220.182,
159	those enumerated in s. 220.1895, those enumerated in s. 221.02,
160	those enumerated in s. 220.184, those enumerated in s. 220.186,
161	those enumerated in s. 220.1845, those enumerated in s. 220.19,
162	those enumerated in s. 220.185, those enumerated in s. 220.187,
163	those enumerated in s. 220.192, and those enumerated in s.
164	220.193, and those enumerated in s. 220.1925.
165	Section 3.  Paragraph (a) of subsection (1) of section
166	220.13, Florida Statutes, is amended to read:
167	220.13  "Adjusted federal income" defined.--
168	(1)  The term "adjusted federal income" means an amount
169	equal to the taxpayer's taxable income as defined in subsection
170	(2), or such taxable income of more than one taxpayer as
171	provided in s. 220.131, for the taxable year, adjusted as
172	follows:
173	(a)  Additions.--There shall be added to such taxable
174	income:
175	1.  The amount of any tax upon or measured by income,
176	excluding taxes based on gross receipts or revenues, paid or
177	accrued as a liability to the District of Columbia or any state
178	of the United States which is deductible from gross income in
179	the computation of taxable income for the taxable year.
180	2.  The amount of interest which is excluded from taxable
181	income under s. 103(a) of the Internal Revenue Code or any other
182	federal law, less the associated expenses disallowed in the
183	computation of taxable income under s. 265 of the Internal
184	Revenue Code or any other law, excluding 60 percent of any
185	amounts included in alternative minimum taxable income, as
186	defined in s. 55(b)(2) of the Internal Revenue Code, if the
187	taxpayer pays tax under s. 220.11(3).
188	3.  In the case of a regulated investment company or real
189	estate investment trust, an amount equal to the excess of the
190	net long-term capital gain for the taxable year over the amount
191	of the capital gain dividends attributable to the taxable year.
192	4.  That portion of the wages or salaries paid or incurred
193	for the taxable year which is equal to the amount of the credit
194	allowable for the taxable year under s. 220.181. This
195	subparagraph shall expire on the date specified in s. 290.016
196	for the expiration of the Florida Enterprise Zone Act.
197	5.  That portion of the ad valorem school taxes paid or
198	incurred for the taxable year which is equal to the amount of
199	the credit allowable for the taxable year under s. 220.182. This
200	subparagraph shall expire on the date specified in s. 290.016
201	for the expiration of the Florida Enterprise Zone Act.
202	6.  The amount of emergency excise tax paid or accrued as a
203	liability to this state under chapter 221 which tax is
204	deductible from gross income in the computation of taxable
205	income for the taxable year.
206	7.  That portion of assessments to fund a guaranty
207	association incurred for the taxable year which is equal to the
208	amount of the credit allowable for the taxable year.
209	8.  In the case of a nonprofit corporation which holds a
210	pari-mutuel permit and which is exempt from federal income tax
211	as a farmers' cooperative, an amount equal to the excess of the
212	gross income attributable to the pari-mutuel operations over the
213	attributable expenses for the taxable year.
214	9.  The amount taken as a credit for the taxable year under
215	s. 220.1895.
216	10.  Up to nine percent of the eligible basis of any
217	designated project which is equal to the credit allowable for
218	the taxable year under s. 220.185.
219	11.  The amount taken as a credit for the taxable year
220	under s. 220.187.
221	12.  The amount taken as a credit for the taxable year
222	under s. 220.192.
223	13.  The amount taken as a credit for the taxable year
224	under s. 220.193.
225	14.  The amount taken as a credit for the taxable year
226	under s. 220.1925.
227	Section 4.  Section 624.5108, Florida Statutes, is created
228	to read:
229	624.5108  Employee fitness tax credits; definitions;
230	authorization; limitations; eligibility and application
231	requirements; administration; expiration.--
232	(1)  DEFINITIONS.--As used in this section, the term:
233	(a)  "Amateur athletic team" means a team of persons who
234	engage in competitive athletic events for which no monetary
235	remuneration is provided, all of whom are employed by the
236	taxpayer or an employer with whom the taxpayer has joined to
237	provide employee fitness equipment and financial support.
238	(b)  "Department" means the Department of Revenue.
239	(c)  "Employee fitness costs" means:
240	1.  The costs of equipping, operating, and maintaining a
241	facility owned by the taxpayer, located on the taxpayer's
242	premises, and used exclusively for the purpose of promoting the
243	physical fitness of the taxpayer's employees in this state,
244	including, but not limited to, a gymnasium, weight training
245	room, aerobics workout space, swimming pool, running track, or
246	any indoor or outdoor court, field, or other site used for
247	competitive sports events or games;
248	2.  The costs, to the extent not covered in subparagraph
249	1., of equipping and providing any related financial support for
250	an amateur athletic team that engages in vigorous athletic
251	activity under the sponsorship of the taxpayer, sponsored alone
252	or jointly with one or more other employers, if the membership
253	of the team consists entirely of employees of the taxpayer in
254	this state or the taxpayer and another employer or employers, as
255	appropriate; and
256	3.  Fifty percent of the cost of employing a qualified
257	person or organization to provide, on the taxpayer's business
258	premises in this state:
259	a.  Information and guidance on subjects relating to
260	personal and family health, such as nutrition, hygiene, and
261	methods of preventing, recognizing, and combating substance
262	abuse; or
263	b.  Instruction in and opportunity for fitness enhancement
264	activities, including, but not limited to, dance, yoga, muscle
265	stretching, martial arts, or other aerobic activities.
266	(d)  "Qualified person" means a person certified by a
267	recognized national organization to provide the instruction for
268	which a tax credit is being sought.
269	(e)  "Vigorous athletic activity" means exertion that makes
270	a person sweat and breathe hard, such as basketball, soccer,
271	running, swimming laps, bicycling, dancing, and similar aerobic
272	activities.
273	(2)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
274	(a)  A credit of 10 percent of employee fitness costs
275	incurred by an insurer during the taxable year is allowed
276	against any tax due for a taxable year under ss. 624.509 and
277	624.510.
278	(b)  Credits authorized under this section for any taxpayer
279	may not exceed 50 percent of the tax due under this chapter for
280	any taxable year.
281	(c)  Credits authorized under this section for any taxpayer
282	may not exceed $50 multiplied by the average of the number of
283	full-time equivalent employees of the insurer in this state as
284	of the last day of the 3rd, 6th, 9th, and 12th months of the
285	taxable year.
286	(d)  Two or more taxpayers may join together to establish
287	and operate an employee fitness facility, provide employee
288	fitness equipment and financial support, or provide employee
289	fitness instruction in accordance with this section. The
290	participating taxpayers may apportion the annual employee
291	fitness credits in any manner they consider appropriate, but a
292	jointly operated employee fitness facility established under
293	this section may not receive more than $50 multiplied by the
294	average of the number of full-time equivalent employees of the
295	participating taxpayers in this state as of the last day of the
296	3rd, 6th, 9th, and 12th months of the taxable year.
297	(e)  A taxpayer, or two or more taxpayers acting jointly,
298	may employ a not-for-profit or for-profit corporation to:
299	1.  Operate an employee fitness facility;
300	2.  Provide employee fitness equipment and financial
301	support; or
302	3.  Provide employee fitness instruction
303
304	on the taxpayer's premises in this state.
305	(f)  If the credit granted under this section is not fully
306	used in any one year because of insufficient tax liability on
307	the part of the insurer, the unused amount may be carried
308	forward for a period not to exceed 5 years. The carryover credit
309	may be used in a subsequent year when the tax imposed by ss.
310	624.509 and 624.510 for that year exceeds the credit for which
311	the insurer is eligible in that year under this section.
312	(g)  An expenditure by an insurer to provide any of the
313	employee fitness benefits described in paragraph (1)(c) does not
314	qualify for a credit under this section unless the benefit is
315	extended equally to all full-time employees in this state.
316	(3)  ADMINISTRATION.--
317	(a)  The Department of Revenue shall adopt rules and forms
318	necessary to administer this section, including rules to provide
319	for cooperative arrangements between taxpayers and not-for-
320	profit or for-profit corporations.
321	(b)  Verification of payments to a not-for-profit or for-
322	profit corporation or to a person who provides health or fitness
323	instruction to a taxpayer's employees must be in writing and
324	must be retained by the taxpayer in support of the credit
325	claimed on the tax return.
326	(c)  Application for credit for payments made to construct
327	or rehabilitate a facility used for the purpose of promoting the
328	physical fitness of a taxpayer's employees in this state must be
329	submitted to the department within 6 months after the
330	construction or rehabilitation of the facility is deemed to be
331	substantially completed by the local building code inspector.
332	Application for credit for eligible expenditures pursuant to
333	paragraph (2)(a) must be submitted to the department with the
334	tax return on which the credit is claimed.
335	(d)  An insurer that files an amended return for a taxable
336	year is not allowed any amount of credit or credit carryforward
337	pursuant to this section in excess of the amount claimed by such
338	insurer on its original return for the taxable year. This
339	paragraph does not apply to increases in the amount of credit
340	claimed under this section on an amended return due to the use
341	of any credit amount previously carried forward for the taxable
342	year on the original return or any eligible prior year under
343	paragraph (2)(f).
344	(4)  EXPIRATION.--This section expires on December 31,
345	2017, except that paragraph (2)(f), which relates to carryover
346	credits, does not expire on that date.
347	Section 5.  Subsection (7) of section 624.509, Florida
348	Statutes, is amended to read:
349	624.509  Premium tax; rate and computation.--
350	(7)  Credits and deductions against the tax imposed by this
351	section shall be taken in the following order: deductions for
352	assessments made pursuant to s. 440.51; credits for taxes paid
353	under ss. 175.101 and 185.08; credits for income taxes paid
354	under chapter 220, the emergency excise tax paid under chapter
355	221 and the credit allowed under subsection (5), as these
356	credits are limited by subsection (6); employee fitness tax
357	credits authorized under s. 624.5108; all other available
358	credits and deductions.
359	Section 6.  This act shall take effect January 1, 2008, and
360	shall apply to tax years beginning on or after that date.

CODING: Words stricken are deletions; words underlined are additions.