HB 1115

1	A bill to be entitled
2	An act relating to tax credits; amending s. 220.02, F.S.;
3	revising the priority of tax credits that may be taken
4	against the corporate income tax or the franchise tax;
5	amending s. 220.13, F.S.; redefining the term "adjusted
6	federal income" to include the amount of certain tax
7	credits; creating s. 220.1811, F.S.; authorizing aerospace
8	sector jobs tax credits and tuition reimbursement tax
9	credits; defining terms; authorizing a tax credit to
10	aerospace businesses based on the salary or tuition
11	reimbursed to certain employees; specifying the maximum
12	annual amount of tax credits for an aerospace business;
13	limiting the annual amount of tax credits available;
14	providing for the Department of Revenue to approve
15	applications for tax credits; prohibiting increases in the
16	amount of unused tax credits carried over in amended tax
17	returns; providing fines and criminal penalties for
18	certain unlawful claims of tax credits; authorizing the
19	Department of Revenue to adopt rules; providing for the
20	expiration of the tax credit program; providing an
21	effective date.
22
23	Be It Enacted by the Legislature of the State of Florida:
24
25	Section 1.  Subsection (8) of section 220.02, Florida
26	Statutes, is amended to read:
27	220.02  Legislative intent.--
28	(8)  It is the intent of the Legislature that Credits
29	against either the corporate income tax or the franchise tax
30	shall be applied in the following order: those enumerated in s.
31	631.828, those enumerated in s. 220.191, those enumerated in s.
32	220.181, those enumerated in s. 220.183, those enumerated in s.
33	220.182, those enumerated in s. 220.1895, those enumerated in s.
34	221.02, those enumerated in s. 220.184, those enumerated in s.
35	220.186, those enumerated in s. 220.1845, those enumerated in s.
36	220.19, those enumerated in s. 220.185, those enumerated in s.
37	220.187, those enumerated in s. 220.192, and those enumerated in
38	s. 220.193, and those enumerated in s. 220.1811.
39	Section 2.  Paragraph (a) of subsection (1) of section
40	220.13, Florida Statutes, is amended to read:
41	220.13  "Adjusted federal income" defined.--
42	(1)  The term "adjusted federal income" means an amount
43	equal to the taxpayer's taxable income as defined in subsection
44	(2), or such taxable income of more than one taxpayer as
45	provided in s. 220.131, for the taxable year, adjusted as
46	follows:
47	(a)  Additions.--There shall be added to such taxable
48	income:
49	1.  The amount of any tax upon or measured by income,
50	excluding taxes based on gross receipts or revenues, paid or
51	accrued as a liability to the District of Columbia or any state
52	of the United States which is deductible from gross income in
53	the computation of taxable income for the taxable year.
54	2.  The amount of interest which is excluded from taxable
55	income under s. 103(a) of the Internal Revenue Code or any other
56	federal law, less the associated expenses disallowed in the
57	computation of taxable income under s. 265 of the Internal
58	Revenue Code or any other law, excluding 60 percent of any
59	amounts included in alternative minimum taxable income, as
60	defined in s. 55(b)(2) of the Internal Revenue Code, if the
61	taxpayer pays tax under s. 220.11(3).
62	3.  In the case of a regulated investment company or real
63	estate investment trust, an amount equal to the excess of the
64	net long-term capital gain for the taxable year over the amount
65	of the capital gain dividends attributable to the taxable year.
66	4.  That portion of the wages or salaries paid or incurred
67	for the taxable year which is equal to the amount of the credit
68	allowable for the taxable year under s. 220.181. This
69	subparagraph shall expire on the date specified in s. 290.016
70	for the expiration of the Florida Enterprise Zone Act.
71	5.  That portion of the ad valorem school taxes paid or
72	incurred for the taxable year which is equal to the amount of
73	the credit allowable for the taxable year under s. 220.182. This
74	subparagraph shall expire on the date specified in s. 290.016
75	for the expiration of the Florida Enterprise Zone Act.
76	6.  The amount of emergency excise tax paid or accrued as a
77	liability to this state under chapter 221 which tax is
78	deductible from gross income in the computation of taxable
79	income for the taxable year.
80	7.  That portion of assessments to fund a guaranty
81	association incurred for the taxable year which is equal to the
82	amount of the credit allowable for the taxable year.
83	8.  In the case of a nonprofit corporation which holds a
84	pari-mutuel permit and which is exempt from federal income tax
85	as a farmers' cooperative, an amount equal to the excess of the
86	gross income attributable to the pari-mutuel operations over the
87	attributable expenses for the taxable year.
88	9.  The amount taken as a credit for the taxable year under
89	s. 220.1895.
90	10.  Up to nine percent of the eligible basis of any
91	designated project which is equal to the credit allowable for
92	the taxable year under s. 220.185.
93	11.  The amount taken as a credit for the taxable year
94	under s. 220.187.
95	12.  The amount taken as a credit for the taxable year
96	under s. 220.192.
97	13.  The amount taken as a credit for the taxable year
98	under s. 220.193.
99	14.  Any amount in excess of $25,000 allowable as a
100	deduction for federal income tax purposes under s. 179 of the
101	Internal Revenue Code of 1986, as amended, for the taxable year.
102	15.  Any amount allowable as a deduction for federal income
103	tax purposes under s. 167 or s. 168 of the Internal Revenue Code
104	of 1986, as amended, for the taxable year to the extent that
105	such amount includes bonus depreciation allowable as deduction
106	under s. 168(k).
107	16.  The amount taken as a credit for the taxable year
108	under s. 220.1811.
109	Section 3.  Section 220.1811, Florida Statutes, is created
110	to read:
111	220.1811  Aerospace sector jobs tax credit and tuition
112	reimbursement tax credits.--
113	(1)  DEFINITIONS.--As used in this section, the term:
114	(a)  "Aerospace business" means a business located in this
115	state which is engaged in the aerospace industry, as defined in
116	s. 331.303.
117	(b)  "Qualified employee" means a resident of this state
118	who:
119	1.  Is employed by an aerospace business on or after
120	January 1, 2010.
121	2.  Received an undergraduate or graduate degree in a
122	program accredited by the Engineering Accreditation Commission
123	of the Accreditation Board for Engineering and Technology from a
124	college or university that is accredited by a national
125	accrediting body.
126	3.  Was not employed by an aerospace business within 6
127	months preceding his or her employment or contract with the
128	aerospace business requesting a credit under this section.
129	4.  Is not an owner, partner, or majority stockholder of an
130	aerospace business.
131	5.  Is employed for at least 3 months.
132	(c)  "Tuition reimbursed to a qualified employee" means a
133	lump-sum payment by an aerospace business to a qualified
134	employee, which may not exceed the average annual tuition for a
135	Florida resident enrolled in a program accredited by the
136	Engineering Accreditation Commission of the Accreditation Board
137	for Engineering and Technology offered by a state university, as
138	defined in s. 1000.21(6). The term does not include the cost of
139	books, fees, or room and board.
140	(2)  AEROSPACE SECTOR JOBS TAX CREDIT.--
141	(a)  A credit against the tax imposed under this chapter
142	may be claimed by an aerospace business for compensation paid to
143	a qualified employee.
144	(b)  The credit authorized by this subsection shall be in
145	the amount of:
146	1.  Ten percent of the compensation paid for the first
147	through fifth years of employment in this state by an aerospace
148	business, if the qualified employee graduated from a college or
149	university located in this state.
150	2.  Five percent of the compensation paid for the first
151	through fifth years of employment in this state by an aerospace
152	business, if the qualified employee graduated from a college or
153	university located outside this state.
154	(c)  The credit authorized by this subsection may not
155	exceed $12,500 annually for each qualified employee.
156	(d)  This credit applies only with respect to wages subject
157	to unemployment tax.
158	(e)  If the credit is not fully used in any one year, the
159	unused amount may be carried forward for a period not to exceed
160	5 years. The carryover credit may be used in a subsequent year
161	if the tax imposed by this chapter for such year exceeds the
162	credit for such year after applying the other credits and unused
163	credit carryovers in the order provided in s. 220.02(8).
164	(3)  TUITION REIMBURSEMENT TAX CREDIT.--
165	(a)  A credit against the tax imposed under this chapter
166	may be claimed by an aerospace business for 50 percent of
167	tuition reimbursed to a qualified employee in a tax year.
168	(b)  The credit may be claimed only if the qualified
169	employee was awarded an undergraduate or graduate degree within
170	1 year after commencing employment with the business requesting
171	the credit and may be claimed within 4 years after employment of
172	a qualified employee.
173	(c)  If this credit is not fully used in any one year, the
174	unused amount may be carried forward for a period not to exceed
175	5 years. The carryover credit may be used in a subsequent year
176	if the tax imposed under this chapter for such year exceeds the
177	credit for such year after applying the other credits and unused
178	credit carryovers in the order provided in s. 220.02(8).
179	(4)  MAXIMUM CREDITS FOR AN AEROSPACE BUSINESS.--The
180	maximum amount of credits under this section which may be
181	claimed by any single aerospace business in a calendar year is
182	$200,000.
183	(5)  ANNUAL LIMIT ON TAX CREDITS.--The total amount of
184	credits that may be granted under this section is $2 million in
185	any calendar year. A credit that is claimed after the $2 million
186	limit is reached shall be disallowed.
187	(6)  DUPLICATION OF TAX CREDITS.--A business may not claim
188	an aerospace sector jobs credit and tuition reimbursement tax
189	credit for the same qualified employee.
190	(7)  APPLICATION FOR TAX CREDITS--
191	(a)  An aerospace business must apply to the department for
192	authorization to claim an aerospace sector jobs tax credit or
193	tuition reimbursement tax credit. The application must be filed
194	under oath and include:
195	1.  The name and address of the business and documentation
196	that the business is an aerospace business.
197	2.  For each employee for which a tax credit is sought:
198	a.  The employee's name and documentation that the employee
199	is a qualified employee.
200	b.  The salary or hourly wages, including the hourly wages
201	subject to unemployment tax paid to the qualified employee.
202	c.  The location of the university from which the qualified
203	employee received his or her degree.
204	d.  A statement of whether the applicant is seeking an
205	aerospace sector jobs tax credit or a tuition reimbursement tax
206	credit.
207	(b)  The applicant for a tax credit has the burden of
208	demonstrating to the satisfaction of the department that it
209	meets the requirements of this section.
210	(8)  LIMITS ON THE CARRY OVER OF TAX CREDITS.--An aerospace
211	business may not carry over more tax credits in an amended
212	return than were claimed on the original return for the taxable
213	year. This subsection does not limit increases in the amount of
214	credit claimed on an amended return due to the use of any credit
215	amount previously carried over pursuant to paragraph (2)(e) or
216	paragraph (3)(c).
217	(9)  PENALTIES.--
218	(a)  Any person who fraudulently claims this credit is
219	liable for repayment of the credit, plus a mandatory penalty in
220	the amount of 200 percent of the credit, plus interest at the
221	rate provided in s. 220.807, and commits a felony of the third
222	degree, punishable as provided in s. 775.082, s. 775.083, or s.
223	775.084.
224	(b)  Any person who makes an underpayment of tax as a
225	result of a grossly overstated claim for this credit commits a
226	felony of the third degree, punishable as provided in s.
227	775.082, s. 775.083, or s. 775.084. As used in this paragraph,
228	the term "grossly overstated claim" means a claim in an amount
229	in excess of 100 percent of the amount of credit allowable under
230	this section.
231	(10)  RULEMAKING.--The Department of Revenue may adopt
232	rules to prescribe any necessary forms required to claim a tax
233	credit under this section and to provide guidelines and
234	procedures required to administer this section.
235	(11)  EXPIRATION.--This section, except paragraphs (2)(e)
236	and (3)(c) and subsection (9), expires on December 31, 2020. An
237	aerospace business may not claim a new tax credit under this
238	section after that date. However, an aerospace business may
239	claim tax credits carried over pursuant to paragraphs (2)(e) and
240	(3)(c).
241	Section 4.  This act shall take effect January 1, 2010.

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