Proposed Committee Substitute by the Committee on Finance and Tax

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A bill to be entitled

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An act relating to corporate income tax; amending s.

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220.03, F.S.; providing for the adoption of the 2008

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version of the Internal Revenue Code; providing for

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exceptions to adoption; providing retroactivity; amending

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s. 220.13(1)(a), F.S., to apply the exceptions and

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authorizing rules; amending s. 220.241, F.S.; changing one

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due date for filing of estimated corporate income taxes;

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providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Paragraph (n) of subsection (1), paragraph (c)

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of subsection (2), and subsection (3) of section 220.03, Florida

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Statutes, are amended to read:

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     220.03  Definitions.--

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     (1)  SPECIFIC TERMS.--When used in this code, and when not

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otherwise distinctly expressed or manifestly incompatible with

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the intent thereof, the following terms shall have the following

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meanings:

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     (n)  "Internal Revenue Code" means the United States

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Internal Revenue Code of 1986, as amended and in effect on

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January 1, 2008 2007, except as provided in subsection (3).

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     (2)  DEFINITIONAL RULES.--When used in this code and neither

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otherwise distinctly expressed nor manifestly incompatible with

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the intent thereof:

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     (c)  Any term used in this code shall have the same meaning

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as when used in a comparable context in the Internal Revenue Code

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and other statutes of the United States relating to federal

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income taxes, as such code and statutes are in effect on January

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1, 2008 2007. However, if subsection (3) is implemented, the

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meaning of any term shall be taken at the time the term is

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applied under this code.

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     (3)  FUTURE FEDERAL AMENDMENTS.--

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     (a) On or after January 1, 1972, when expressly authorized

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by law, any amendment to the Internal Revenue Code shall be given

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effect under this code in such manner and for such periods as are

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prescribed in the Internal Revenue Code, to the same extent as if

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such amendment had been adopted by the Legislature of this state.

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However, any such amendment shall have effect under this code

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only to the extent that the amended provision of the Internal

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Revenue Code shall be taken into account in the computation of

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net income subject to tax hereunder.

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     (b)1. Section 102 of Pub. L. No. 110-185 amends s. 179(b)

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of the Internal Revenue Code of 1986, as amended, and provides

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temporary increases in the limitations of expensing specified

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depreciable business assets for tax years beginning after

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December 31, 2007. The amount of such temporary increases may not

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be used in computing adjusted federal income for the purpose of

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determining corporate income tax liability in this state.

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     2. Section 103 of Pub. L. No. 110-185 amends s. 168(k) of

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the Internal Revenue Code of 1986, as amended, for specified

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property acquired after December 31, 2007, and before January 1,

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2009. Section 103 provides an additional allowance equal to 50

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percent of the adjusted basis of the qualified property entitled

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to a depreciation deduction by s. 167(a) for the taxable year in

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which such property is placed in service. The amount of such

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special depreciation allowances may not be used in computing

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adjusted federal income for the purpose of determining corporate

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income tax liability in this state.

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     3. It is the intent of the Legislature that ss. 102 and 103

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of Pub. L. No. 110-185 be construed to disallow a deduction for

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bonus depreciation allowed under s. 168 of the Internal Revenue

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Code of 1986, as amended, in computing state net income. The

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applicable depreciation conventions and recovery periods shall be

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computed in the same manner as they are computed by the taxpayer

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in determining federal taxable income. As used in this chapter,

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the term "bonus depreciation" includes all amounts allowed as a

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special allowance under s. 168(k) of the Internal Revenue Code of

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1986, as amended.

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     Section 2.  Paragraph (a) of subsection (1) of section

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220.13, Florida Statutes, is amended to read:

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     220.13  "Adjusted federal income" defined.--

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     (1)  The term "adjusted federal income" means an amount

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equal to the taxpayer's taxable income as defined in subsection

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(2), or such taxable income of more than one taxpayer as provided

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in s. 220.131, for the taxable year, adjusted as follows:

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     (a)  Additions.--There shall be added to such taxable

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income:

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     1.  The amount of any tax upon or measured by income,

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excluding taxes based on gross receipts or revenues, paid or

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accrued as a liability to the District of Columbia or any state

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of the United States which is deductible from gross income in the

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computation of taxable income for the taxable year.

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     2.  The amount of interest which is excluded from taxable

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income under s. 103(a) of the Internal Revenue Code or any other

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federal law, less the associated expenses disallowed in the

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computation of taxable income under s. 265 of the Internal

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Revenue Code or any other law, excluding 60 percent of any

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amounts included in alternative minimum taxable income, as

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defined in s. 55(b)(2) of the Internal Revenue Code, if the

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taxpayer pays tax under s. 220.11(3).

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     3.  In the case of a regulated investment company or real

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estate investment trust, an amount equal to the excess of the net

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long-term capital gain for the taxable year over the amount of

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the capital gain dividends attributable to the taxable year.

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     4.  That portion of the wages or salaries paid or incurred

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for the taxable year which is equal to the amount of the credit

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allowable for the taxable year under s. 220.181. This

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subparagraph shall expire on the date specified in s. 290.016 for

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the expiration of the Florida Enterprise Zone Act.

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     5.  That portion of the ad valorem school taxes paid or

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incurred for the taxable year which is equal to the amount of the

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credit allowable for the taxable year under s. 220.182. This

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subparagraph shall expire on the date specified in s. 290.016 for

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the expiration of the Florida Enterprise Zone Act.

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     6.  The amount of emergency excise tax paid or accrued as a

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liability to this state under chapter 221 which tax is deductible

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from gross income in the computation of taxable income for the

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taxable year.

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     7.  That portion of assessments to fund a guaranty

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association incurred for the taxable year which is equal to the

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amount of the credit allowable for the taxable year.

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     8.  In the case of a nonprofit corporation which holds a

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pari-mutuel permit and which is exempt from federal income tax as

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a farmers' cooperative, an amount equal to the excess of the

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gross income attributable to the pari-mutuel operations over the

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attributable expenses for the taxable year.

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     9.  The amount taken as a credit for the taxable year under

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s. 220.1895.

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     10.  Up to nine percent of the eligible basis of any

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designated project which is equal to the credit allowable for the

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taxable year under s. 220.185.

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     11.  The amount taken as a credit for the taxable year under

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s. 220.187.

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     12.  The amount taken as a credit for the taxable year under

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s. 220.192.

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     13.  The amount taken as a credit for the taxable year under

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s. 220.193.

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     14. Any amount in excess of $25,000 allowable as a

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deduction for federal income tax purposes under s. 179 of the

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Internal Revenue Code of 1986, as amended, for the taxable year.

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     15. Any amount allowable as a deduction for federal income

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tax purposes under s. 167 or s. 168 of the Internal Revenue Code

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of 1986, as amended, for the taxable year to the extent that such

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amount includes bonus depreciation allowable as deduction under

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s. 168(k).

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     Section 3.  Effective January 1, 2009, section 220.241,

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Florida Statutes, is amended to read:

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     220.241  Declaration; time for filing.--A declaration of

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estimated tax under this code shall be filed on or before the 1st

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day of the 5th month of each taxable year, except that if the

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minimum tax requirement of s. 220.24(1) is first met:

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     (1)  After the 3rd month and before the 6th month of the

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taxable year, the declaration shall be filed on or before the 1st

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day of the 7th month;

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     (2)  After the 5th month and before the 9th month of the

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taxable year, the declaration shall be filed on or before the 1st

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day of the 10th month; or

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     (3)  After the 8th month and before the 12th month of the

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taxable year, the declaration shall be filed for the taxable year

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on or before the 1st day of the succeeding taxable year.

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     Section 4.  Effective January 1, 2009, subsections (1) and

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(2) of section 220.33, Florida Statutes, are amended to read:

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     220.33  Payments of estimated tax.--A taxpayer required to

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file a declaration of estimated tax pursuant to s. 220.24 shall

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pay such estimated tax as follows:

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(1)  If the declaration is required to be filed on or before the

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1st first day of the 5th fifth month of the taxable year, the

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estimated tax shall be paid in four equal installments. The first

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installment shall be paid at the time of the required filing of

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the declaration; the second and third installments shall be paid

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on or before the 1st day of the 7th month and before the 1st day

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of the 10th month months of the taxable year, respectively; and

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the fourth installment shall be paid on or before the 1st day of

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the next taxable year.

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     (2) If the declaration is required to be filed on or before

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the 1st first day of the 7th seventh month of the taxable year,

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the estimated tax shall be paid in three equal installments. The

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first installment shall be paid at the time of required filing of

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the declaration; the second installment shall be paid on or

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before the 1st day of the 10th month of the taxable year; and the

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third installment shall be paid on or before the 1st day of the

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next taxable year.

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     Section 5. The Department of Revenue may adopt rules

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necessary to administer the provisions of this act, including

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rules, forms, and guidelines for computing, claiming, and adding

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back bonus depreciation under s. 168(k) and deductions under s.

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179 of the Internal Revenue Code of 1986, as amended.

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     Section 6.  Except as otherwise expressly provided in this

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act, this act shall take effect upon becoming a law and shall

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apply retroactively to January 1, 2008.

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