Florida Senate - 2008 (Reformatted) SB 346
By Senator Ring
32-00225-08 2008346__
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A bill to be entitled
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An act relating to student financial assistance; creating
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s. 1009.893, F.S.; creating the Sure Futures Postgraduate
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Scholarship Program to match private-sector businesses
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needing employees having advanced degrees with students
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who are seeking advanced degrees and employment;
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establishing the Sure Futures Foundation and a foundation
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board to administer the program; providing membership and
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duties of the foundation board; providing criteria for
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student and corporate partner participation in the
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program; requiring corporate partners to donate funds for
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scholarships; providing for corporate income tax credits
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for amounts donated; providing restrictions on tax
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credits; providing for scholarship conversion to a low-
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interest loan if certain student or employee obligations
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are not met; providing duties of the Department of
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Education and state universities; amending s. 220.02,
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F.S.; adding the new tax credit to the list of allowable
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credits; amending s. 220.13, F.S.; incorporating the new
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tax credit to the list of state corporate income tax
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credits that must be added to a taxpayer's adjusted
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federal income; providing rulemaking authority; providing
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an appropriation; 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. Section 1009.893, Florida Statutes, is created
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to read:
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1009.893 Sure Futures Postgraduate Scholarship Program.--
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(1) The Sure Futures Postgraduate Scholarship Program is
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created to establish a scholarship program to match private-
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sector businesses needing employees having advanced degrees with
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students who are seeking both advanced degrees and employment.
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The goals of the program are to provide for a better-educated
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workforce by offering students greater access to advanced degrees
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and to recruit and retain Florida's best and brightest graduate
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students by offering them comprehensive financial assistance and
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employment.
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(2) The Sure Futures Foundation is established and shall
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seek tax-exempt status under s. 501(c)(3) of the Internal Revenue
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Code. The foundation shall be governed by the Sure Futures
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Foundation Board, which shall administer the Sure Futures
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Postgraduate Scholarship Program with guidance from the Board of
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Governors and the State Board of Education. Duties of the
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foundation board include, but are not limited to:
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(a) Adoption of policies and procedures for implementation
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of the program, including approval of corporate partners and
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their scholarship criteria.
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(b) Issuance of certificate letters to corporate partners
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acknowledging their eligibility for tax credits against their
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chapter 220 tax liabilities. The letters of certificate must be
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in a form developed by rule of the Department of Education.
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(c) Establishment of a process for approving printed
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materials, marketing, and advertising.
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(3) The foundation board shall be comprised of the
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following members:
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(a) The Commissioner of Education as an ex officio member.
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(b) The chair of the Board of Governors as an ex officio
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member.
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(c) Four state university presidents selected by the State
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University Presidents' Association to serve 2-year terms.
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(d) Four corporate partners participating in the program,
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recommended by the Commissioner of Education and selected by the
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Governor, to serve 2-year terms.
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(e) One graduate student recommended by the Commissioner of
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Education and selected by the Governor to serve a 1-year term.
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The Commissioner of Education, the chair of the Board of
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Governors, the university presidents, and the corporate partners
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may designate a specific individual to represent them at board
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meetings. The foundation board members shall serve without
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compensation, but are entitled to receive reimbursement for
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travel and per diem expenses incurred in the performance of their
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duties in accordance with s. 112.061. The Department of Education
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shall provide administrative support and staff to the foundation.
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(4)(a) The following students are eligible to obtain a list
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of Florida corporate partners and the graduate degree programs
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for which the partners are seeking candidates:
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1. A student in his or her senior year who is an
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undergraduate student at a state university.
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2. A student in his or her senior year who is an
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undergraduate student at an out-of-state university but who would
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otherwise qualify as a resident for purposes of in-state tuition.
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3. A graduate of a state university who intends to pursue a
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graduate degree program at a state university.
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(b) A student shall apply through the program to each
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individual corporate partner using a standard application form. A
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predetermined limit shall be established by the foundation board
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for the maximum number of applications a student may submit in a
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given scholarship cycle.
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(c) After the initial candidate screening and interview
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phase, a student selected by a corporate partner shall sign a
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contract agreeing to borrow scholarship funds through the
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program, with a waiver-of-payment provision if a 4-year
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employment obligation is completed. The scholarship shall cover
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tuition, fees, and books for the degree program and room and
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board based on the university dormitory and meal plan rate for
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each year the student is enrolled full time as a graduate
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student.
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(d) A student must maintain a minimum grade point average
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as determined by the corporate partner.
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(e) If a student is unable to take a full course load
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during a summer semester, the student may be required by the
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corporate partner to participate in an internship program.
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(f) Upon graduation with an advanced degree, a graduate
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shall begin working for the corporate partner and must remain
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employed in Florida by the partner for a minimum of 4 years as
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stipulated in the contract.
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(g) If a student fails to maintain the required grade point
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average or the graduate terminates his or her employment before
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completing the 4-year obligation, a prorated portion of the
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scholarship shall convert to a low-interest loan.
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(h) The contract signed by the corporate partner and the
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student must clearly state the terms of the loan, the company's
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expectations for the student's performance, employment
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requirements, and potential legal remedies if the terms and
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conditions of the contract are not met.
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(5)(a) A corporate partner that desires new employees
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having advanced degrees shall make a monetary contribution to the
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program in amounts equal to the scholarship funds necessary for
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completion of a degree program from which it wishes to draw
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students. Contributions may be made in one lump sum or on an
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annual basis.
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(b) A corporate partner may establish criteria, including,
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but not limited to, the degree sought and minimum grade point
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average and extracurricular activity requirements.
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(c) A corporate partner may select the state universities
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at which students may enroll or it may allow its scholarships to
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be available for study at any state university.
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(d)1. A corporate partner shall receive a credit against
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its corporate income tax liability equal to the amount of the
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contribution. For the first 2 years of the program, the total tax
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credits available to corporate partners shall be limited to $10
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million per year. Beginning with the third year of the program,
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as more corporate partners participate, the total tax credits
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available to corporate partners shall be increased, as specified
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by the Legislature. Beginning with the sixth year of the program,
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a tax credit shall be 75 percent of a contribution and, beginning
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with the eleventh year of the program, a tax credit shall be 50
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percent of a contribution.
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2. A corporate partner shall submit copies of its
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certificate letter to the Department of Revenue at the time it
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claims a tax credit against its corporate income tax liabilities.
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3. If the corporate partner cannot use the entire tax
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credit in the taxable year or reporting period in which the
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credit is awarded because of insufficient tax liability, any
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excess amount may be carried forward to a succeeding taxable year
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or reporting period, for up to 10 years, at which time the
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credits expire.
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4. A corporation who files a Florida consolidated return as
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a member of an affiliated group pursuant to s. 220.131(1) may be
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allowed the credit on a consolidated return basis.
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5. A corporation may not convey, assign, or transfer the
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credit authorized by this section to another entity unless all of
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the assets of the corporation are conveyed, assigned, or
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transferred in the same transaction.
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(e) If a corporate partner terminates a scholarship
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employee for reasons other than malfeasance, misfeasance, or
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nonfeasance before the employee completes the 4-year obligation,
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the employee is not required to repay the scholarship. A
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corporate partner is encouraged to establish protocols to retain
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an employee prior to his or her termination.
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(6)(a) The Office of Student Financial Assistance of the
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Department of Education shall establish a central database of
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corporate partners, the graduate degree programs for which the
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partners are seeking candidates, and student applicants and their
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profiles. The office shall establish a standard application for
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use by all state universities.
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(b) On an annual basis, the Department of Education shall
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establish the amount necessary to cover the costs for degree
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programs for which corporate partners may make contributions and
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receive tax credits.
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(7) Prepared documentation regarding the program shall be
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made available through the appropriate office at each state
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university. As deemed appropriate by its administration, a state
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university may provide additional information or activities, such
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as providing one-on-one discussions with advisors, conducting
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seminars on the program, or working with companies in its service
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area to create scholarships through the program.
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(8) State agencies, local workforce boards, chambers of
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commerce, and Enterprise Florida, Inc., shall be encouraged to
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promote corporate partner and student participation in the
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program.
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(9) The Department of Education shall adopt rules necessary
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to administer this section, including rules establishing
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application forms and procedures governing the certification of
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eligibility of corporate partners for tax credits under this
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section.
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(10) The Department of Education and the Department of
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Revenue shall develop a cooperative agreement to assist each
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other in implementing the tax credits created under this section.
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Section 2. Subsection (8) of section 220.02, Florida
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Statutes, is amended to read:
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220.02 Legislative intent.--
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(8) It is the intent of the Legislature that credits
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against either the corporate income tax or the franchise tax be
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applied in the following order: those enumerated in s. 631.828,
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those enumerated in s. 220.192, and those enumerated in s.
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220.193, and those enumerated in s. 1009.893.
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Section 3. 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. The amount taken as a credit for the taxable year under
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s. 1009.893.
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Section 4. There is appropriated from nonrecurring general
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revenue a sum not to exceed $200,000 to the Department of
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Education to pay for costs associated with administering the Sure
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Futures Foundation and the Sure Futures Postgraduate Scholarship
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Program.
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Section 5. This act shall take effect July 1, 2008.
CODING: Words stricken are deletions; words underlined are additions.