| 1 | A bill to be entitled |
| 2 | An act relating to the corporate income tax; amending s. |
| 3 | 220.03, F.S.; providing for the adoption of the 2008 |
| 4 | version of the Internal Revenue Code; prohibiting use of |
| 5 | certain amounts in computing adjusted federal income for |
| 6 | determining state corporate income tax liability; |
| 7 | providing legislative intent; providing construction |
| 8 | requirements against using certain federally allowable |
| 9 | bonus depreciation for computing state net income; |
| 10 | providing a definition; amending s. 220.13,F.S.; |
| 11 | specifying additional amounts as additions to taxable |
| 12 | income for purposes of adjusted federal income; amending |
| 13 | ss. 220.241 and 220.33, F.S.; revising due dates for |
| 14 | filing and paying estimated corporate income taxes; |
| 15 | authorizing the Department of Revenue to adopt rules for |
| 16 | certain administrative purposes; providing for retroactive |
| 17 | operation; providing effective dates. |
| 18 |
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| 19 | Be It Enacted by the Legislature of the State of Florida: |
| 20 |
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| 21 | Section 1. Paragraph (n) of subsection (1), paragraph (c) |
| 22 | of subsection (2), and subsection (3) of section 220.03, Florida |
| 23 | Statutes, are amended to read: |
| 24 | 220.03 Definitions.-- |
| 25 | (1) SPECIFIC TERMS.--When used in this code, and when not |
| 26 | otherwise distinctly expressed or manifestly incompatible with |
| 27 | the intent thereof, the following terms shall have the following |
| 28 | meanings: |
| 29 | (n) "Internal Revenue Code" means the United States |
| 30 | Internal Revenue Code of 1986, as amended and in effect on |
| 31 | January 1, 2008 2007, except as provided in subsection (3). |
| 32 | (2) DEFINITIONAL RULES.--When used in this code and |
| 33 | neither otherwise distinctly expressed nor manifestly |
| 34 | incompatible with the intent thereof: |
| 35 | (c) Any term used in this code shall have the same meaning |
| 36 | as when used in a comparable context in the Internal Revenue |
| 37 | Code and other statutes of the United States relating to federal |
| 38 | income taxes, as such code and statutes are in effect on January |
| 39 | 1, 2008 2007. However, if subsection (3) is implemented, the |
| 40 | meaning of any term shall be taken at the time the term is |
| 41 | applied under this code. |
| 42 | (3) FUTURE FEDERAL AMENDMENTS.-- |
| 43 | (a) On or after January 1, 1972, when expressly authorized |
| 44 | by law, any amendment to the Internal Revenue Code shall be |
| 45 | given effect under this code in such manner and for such periods |
| 46 | as are prescribed in the Internal Revenue Code, to the same |
| 47 | extent as if such amendment had been adopted by the Legislature |
| 48 | of this state. However, any such amendment shall have effect |
| 49 | under this code only to the extent that the amended provision of |
| 50 | the Internal Revenue Code shall be taken into account in the |
| 51 | computation of net income subject to tax hereunder. |
| 52 | (b)1. Section 102 of Pub. L. No. 110-185 amends s. 179(b) |
| 53 | of the Internal Revenue Code of 1986, as amended, and provides |
| 54 | temporary increases in the limitations of expensing specified |
| 55 | depreciable business assets for tax years beginning after |
| 56 | December 31, 2007. The amount of such temporary increases may |
| 57 | not be used in computing adjusted federal income for the purpose |
| 58 | of determining corporate income tax liability in this state. |
| 59 | 2. Section 103 of Pub. L. No. 110-185 amends s. 168(k) of |
| 60 | the Internal Revenue Code of 1986, as amended, for specified |
| 61 | property acquired after December 31, 2007, and before January 1, |
| 62 | 2009. Section 103 provides an additional allowance equal to 50 |
| 63 | percent of the adjusted basis of the qualified property entitled |
| 64 | to a depreciation deduction by s. 167(a) for the taxable year in |
| 65 | which such property is placed in service. The amount of such |
| 66 | special depreciation allowances may not be used in computing |
| 67 | adjusted federal income for the purpose of determining corporate |
| 68 | income tax liability in this state. |
| 69 | 3. It is the intent of the Legislature that ss. 102 and |
| 70 | 103 of Pub. L. No. 110-185 be construed to disallow a deduction |
| 71 | for bonus depreciation allowed under s. 168 of the Internal |
| 72 | Revenue Code of 1986, as amended, in computing state net income. |
| 73 | The applicable depreciation conventions and recovery periods |
| 74 | shall be computed in the same manner as they are computed by the |
| 75 | taxpayer in determining federal taxable income. As used in this |
| 76 | chapter, the term "bonus depreciation" includes all amounts |
| 77 | allowed as a special allowance under s. 168(k) of the Internal |
| 78 | Revenue Code of 1986, as amended. |
| 79 | Section 2. Paragraph (a) of subsection (1) of section |
| 80 | 220.13, Florida Statutes, is amended to read: |
| 81 | 220.13 "Adjusted federal income" defined.-- |
| 82 | (1) The term "adjusted federal income" means an amount |
| 83 | equal to the taxpayer's taxable income as defined in subsection |
| 84 | (2), or such taxable income of more than one taxpayer as |
| 85 | provided in s. 220.131, for the taxable year, adjusted as |
| 86 | follows: |
| 87 | (a) Additions.--There shall be added to such taxable |
| 88 | income: |
| 89 | 1. The amount of any tax upon or measured by income, |
| 90 | excluding taxes based on gross receipts or revenues, paid or |
| 91 | accrued as a liability to the District of Columbia or any state |
| 92 | of the United States which is deductible from gross income in |
| 93 | the computation of taxable income for the taxable year. |
| 94 | 2. The amount of interest which is excluded from taxable |
| 95 | income under s. 103(a) of the Internal Revenue Code or any other |
| 96 | federal law, less the associated expenses disallowed in the |
| 97 | computation of taxable income under s. 265 of the Internal |
| 98 | Revenue Code or any other law, excluding 60 percent of any |
| 99 | amounts included in alternative minimum taxable income, as |
| 100 | defined in s. 55(b)(2) of the Internal Revenue Code, if the |
| 101 | taxpayer pays tax under s. 220.11(3). |
| 102 | 3. In the case of a regulated investment company or real |
| 103 | estate investment trust, an amount equal to the excess of the |
| 104 | net long-term capital gain for the taxable year over the amount |
| 105 | of the capital gain dividends attributable to the taxable year. |
| 106 | 4. That portion of the wages or salaries paid or incurred |
| 107 | for the taxable year which is equal to the amount of the credit |
| 108 | allowable for the taxable year under s. 220.181. This |
| 109 | subparagraph shall expire on the date specified in s. 290.016 |
| 110 | for the expiration of the Florida Enterprise Zone Act. |
| 111 | 5. That portion of the ad valorem school taxes paid or |
| 112 | incurred for the taxable year which is equal to the amount of |
| 113 | the credit allowable for the taxable year under s. 220.182. This |
| 114 | subparagraph shall expire on the date specified in s. 290.016 |
| 115 | for the expiration of the Florida Enterprise Zone Act. |
| 116 | 6. The amount of emergency excise tax paid or accrued as a |
| 117 | liability to this state under chapter 221 which tax is |
| 118 | deductible from gross income in the computation of taxable |
| 119 | income for the taxable year. |
| 120 | 7. That portion of assessments to fund a guaranty |
| 121 | association incurred for the taxable year which is equal to the |
| 122 | amount of the credit allowable for the taxable year. |
| 123 | 8. In the case of a nonprofit corporation which holds a |
| 124 | pari-mutuel permit and which is exempt from federal income tax |
| 125 | as a farmers' cooperative, an amount equal to the excess of the |
| 126 | gross income attributable to the pari-mutuel operations over the |
| 127 | attributable expenses for the taxable year. |
| 128 | 9. The amount taken as a credit for the taxable year under |
| 129 | s. 220.1895. |
| 130 | 10. Up to nine percent of the eligible basis of any |
| 131 | designated project which is equal to the credit allowable for |
| 132 | the taxable year under s. 220.185. |
| 133 | 11. The amount taken as a credit for the taxable year |
| 134 | under s. 220.187. |
| 135 | 12. The amount taken as a credit for the taxable year |
| 136 | under s. 220.192. |
| 137 | 13. The amount taken as a credit for the taxable year |
| 138 | under s. 220.193. |
| 139 | 14. Any amount in excess of $25,000 allowable as a |
| 140 | deduction for federal income tax purposes under s. 179 of the |
| 141 | Internal Revenue Code of 1986, as amended, for the taxable year. |
| 142 | 15. Any amount allowable as a deduction for federal income |
| 143 | tax purposes under s. 167 or s. 168 of the Internal Revenue Code |
| 144 | of 1986, as amended, for the taxable year to the extent that |
| 145 | such amount includes bonus depreciation allowable as deduction |
| 146 | under s. 168(k). |
| 147 | Section 3. Effective January 1, 2009, section 220.241, |
| 148 | Florida Statutes, is amended to read: |
| 149 | 220.241 Declaration; time for filing.--A declaration of |
| 150 | estimated tax under this code shall be filed on or before the |
| 151 | 1st day of the 5th month of each taxable year, except that if |
| 152 | the minimum tax requirement of s. 220.24(1) is first met: |
| 153 | (1) After the 3rd month and before the 6th month of the |
| 154 | taxable year, the declaration shall be filed on or before the |
| 155 | 1st day of the 7th month; |
| 156 | (2) After the 5th month and before the 9th month of the |
| 157 | taxable year, the declaration shall be filed on or before the |
| 158 | 1st day of the 10th month; or |
| 159 | (3) After the 8th month and before the 12th month of the |
| 160 | taxable year, the declaration shall be filed for the taxable |
| 161 | year on or before the 1st day of the succeeding taxable year. |
| 162 | Section 4. Effective January 1, 2009, subsections (1) and |
| 163 | (2) of section 220.33, Florida Statutes, are amended to read: |
| 164 | 220.33 Payments of estimated tax.--A taxpayer required to |
| 165 | file a declaration of estimated tax pursuant to s. 220.24 shall |
| 166 | pay such estimated tax as follows: |
| 167 | (1) If the declaration is required to be filed on or |
| 168 | before the 1st first day of the 5th fifth month of the taxable |
| 169 | year, the estimated tax shall be paid in four equal |
| 170 | installments. The first installment shall be paid at the time of |
| 171 | the required filing of the declaration; the second and third |
| 172 | installments shall be paid on or before the 1st day of the 7th |
| 173 | month and before the 1st day of the 10th month months of the |
| 174 | taxable year, respectively; and the fourth installment shall be |
| 175 | paid on or before the 1st day of the next taxable year. |
| 176 | (2) If the declaration is required to be filed on or |
| 177 | before the 1st first day of the 7th seventh month of the taxable |
| 178 | year, the estimated tax shall be paid in three equal |
| 179 | installments. The first installment shall be paid at the time of |
| 180 | required filing of the declaration; the second installment shall |
| 181 | be paid on or before the 1st day of the 10th month of the |
| 182 | taxable year; and the third installment shall be paid on or |
| 183 | before the 1st day of the next taxable year. |
| 184 | Section 5. The Department of Revenue may adopt rules |
| 185 | necessary to administer the provisions of this act, including |
| 186 | rules, forms, and guidelines for computing, claiming, and adding |
| 187 | back bonus depreciation under s. 168(k) and deductions under s. |
| 188 | 179 of the Internal Revenue Code of 1986, as amended. |
| 189 | Section 6. Except as otherwise expressly provided in this |
| 190 | act, this act shall take effect upon becoming a law and shall |
| 191 | apply retroactively to January 1, 2008. |