Florida Senate - 2009                                    SB 2156
       
       
       
       By Senator Altman
       
       
       
       
       24-01482C-09                                          20092156__
    1                        A bill to be entitled                      
    2         An act relating to tax credits; amending s. 220.02,
    3         F.S.; revising the priority of tax credits that may be
    4         taken against the corporate income tax or the
    5         franchise tax; amending s. 220.13, F.S.; redefining
    6         the term “adjusted federal income” to include the
    7         amount of certain tax credits; providing for
    8         application; creating s. 220.1811, F.S.; authorizing
    9         aerospace sector jobs tax credits and tuition
   10         reimbursement tax credits; defining terms; authorizing
   11         a tax credit to aerospace businesses based on the
   12         salary or tuition reimbursed to certain employees;
   13         specifying the maximum annual amount of tax credits
   14         for an aerospace business; limiting the annual amount
   15         of tax credits available; providing for the Department
   16         of Revenue to approve applications for tax credits;
   17         prohibiting increases in the amount of unused tax
   18         credits carried over in amended tax returns; providing
   19         fines and criminal penalties for certain unlawful
   20         claims of tax credits; authorizing the Department of
   21         Revenue to adopt rules; providing for the expiration
   22         of the tax credit program; providing an effective
   23         date.
   24  
   25  Be It Enacted by the Legislature of the State of Florida:
   26  
   27         Section 1. Subsection (8) of section 220.02, Florida
   28  Statutes, is amended to read:
   29         220.02 Legislative intent.—
   30         (8) It is the intent of the Legislature that Credits
   31  against either the corporate income tax or the franchise tax
   32  shall be applied in the following order: those enumerated in s.
   33  631.828, those enumerated in s. 220.191, those enumerated in s.
   34  220.181, those enumerated in s. 220.183, those enumerated in s.
   35  220.182, those enumerated in s. 220.1895, those enumerated in s.
   36  221.02, those enumerated in s. 220.184, those enumerated in s.
   37  220.186, those enumerated in s. 220.1845, those enumerated in s.
   38  220.19, those enumerated in s. 220.185, those enumerated in s.
   39  220.187, those enumerated in s. 220.192, and those enumerated in
   40  s. 220.193, and those enumerated in s. 220.1811.
   41         Section 2. Paragraph (a) of subsection (1) of section
   42  220.13, Florida Statutes, is amended to read:
   43         220.13 “Adjusted federal income” defined.—
   44         (1) The term “adjusted federal income” means an amount
   45  equal to the taxpayer's taxable income as defined in subsection
   46  (2), or such taxable income of more than one taxpayer as
   47  provided in s. 220.131, for the taxable year, adjusted as
   48  follows:
   49         (a) Additions.—There shall be added to such taxable income:
   50         1. The amount of any tax upon or measured by income,
   51  excluding taxes based on gross receipts or revenues, paid or
   52  accrued as a liability to the District of Columbia or any state
   53  of the United States which is deductible from gross income in
   54  the computation of taxable income for the taxable year.
   55         2. The amount of interest which is excluded from taxable
   56  income under s. 103(a) of the Internal Revenue Code or any other
   57  federal law, less the associated expenses disallowed in the
   58  computation of taxable income under s. 265 of the Internal
   59  Revenue Code or any other law, excluding 60 percent of any
   60  amounts included in alternative minimum taxable income, as
   61  defined in s. 55(b)(2) of the Internal Revenue Code, if the
   62  taxpayer pays tax under s. 220.11(3).
   63         3. In the case of a regulated investment company or real
   64  estate investment trust, an amount equal to the excess of the
   65  net long-term capital gain for the taxable year over the amount
   66  of the capital gain dividends attributable to the taxable year.
   67         4. That portion of the wages or salaries paid or incurred
   68  for the taxable year which is equal to the amount of the credit
   69  allowable for the taxable year under s. 220.181. This
   70  subparagraph shall expire on the date specified in s. 290.016
   71  for the expiration of the Florida Enterprise Zone Act.
   72         5. That portion of the ad valorem school taxes paid or
   73  incurred for the taxable year which is equal to the amount of
   74  the credit allowable for the taxable year under s. 220.182. This
   75  subparagraph shall expire on the date specified in s. 290.016
   76  for the expiration of the Florida Enterprise Zone Act.
   77         6. The amount of emergency excise tax paid or accrued as a
   78  liability to this state under chapter 221 which tax is
   79  deductible from gross income in the computation of taxable
   80  income for the taxable year.
   81         7. That portion of assessments to fund a guaranty
   82  association incurred for the taxable year which is equal to the
   83  amount of the credit allowable for the taxable year.
   84         8. In the case of a nonprofit corporation which holds a
   85  pari-mutuel permit and which is exempt from federal income tax
   86  as a farmers' cooperative, an amount equal to the excess of the
   87  gross income attributable to the pari-mutuel operations over the
   88  attributable expenses for the taxable year.
   89         9. The amount taken as a credit for the taxable year under
   90  s. 220.1895.
   91         10. Up to nine percent of the eligible basis of any
   92  designated project which is equal to the credit allowable for
   93  the taxable year under s. 220.185.
   94         11. The amount taken as a credit for the taxable year under
   95  s. 220.187.
   96         12. The amount taken as a credit for the taxable year under
   97  s. 220.192.
   98         13. The amount taken as a credit for the taxable year under
   99  s. 220.193.
  100         14. Any amount in excess of $25,000 allowable as a
  101  deduction for federal income tax purposes under s. 179 of the
  102  Internal Revenue Code of 1986, as amended, for the taxable year.
  103         15. Any amount allowable as a deduction for federal income
  104  tax purposes under s. 167 or s. 168 of the Internal Revenue Code
  105  of 1986, as amended, for the taxable year to the extent that
  106  such amount includes bonus depreciation allowable as deduction
  107  under s. 168(k).
  108         16.The amount taken as a credit for the taxable year under
  109  s. 220.1811.
  110         Section 3. Section 220.1811, Florida Statutes, is created
  111  to read:
  112         220.1811Aerospace sector jobs tax credit and tuition
  113  reimbursement tax credit.—
  114         (1)DEFINITIONS.—As used in this section, the term:
  115         (a)“Aerospace business” means a business located in this
  116  state which is engaged in the aerospace industry, as defined in
  117  s. 331.303.
  118         (b)Qualified employee” means a resident of this state
  119  who:
  120         1.Is employed by an aerospace business on or after January
  121  1, 2010;
  122         2.Received an undergraduate or graduate degree in a
  123  program accredited by the Engineering Accreditation Commission
  124  of the Accreditation Board for Engineering and Technology from a
  125  college or university that is accredited by a national
  126  accrediting body;
  127         3.Was not employed by an aerospace business within 6
  128  months preceding his or her employment or contract with the
  129  aerospace business requesting a credit under this section;
  130         4.Is not an owner, partner, or majority stockholder of an
  131  aerospace business; and
  132         5.Is employed for at least 3 months.
  133         (c)“Tuition reimbursed to a qualified employee” means a
  134  lump-sum payment by an aerospace business to a qualified
  135  employee, which may not exceed the average annual tuition, as
  136  reported by the Board of Governors of the State University
  137  System, for a Florida resident who is a full-time undergraduate
  138  student enrolled in a public college or university. The term
  139  does not include the cost of books, fees, or room and board.
  140         (2)AEROSPACE SECTOR JOBS TAX CREDIT.—
  141         (a)A credit against the tax imposed under this chapter may
  142  be claimed by an aerospace business for compensation paid to a
  143  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 exceed
  155  $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 may
  166  be claimed by an aerospace business for 50 percent of tuition
  167  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
  172  of 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 maximum
  180  amount of credits under this section which may be claimed by any
  181  single aerospace business in a calendar year is $200,000.
  182         (5)ANNUAL LIMIT ON TAX CREDITS.—The total amount of
  183  credits that may be granted under this section is $2 million in
  184  any calendar year. A credit that is claimed after the $2 million
  185  limit is reached shall be disallowed.
  186         (6)DUPLICATION OF TAX CREDITS.—A business may not claim an
  187  aerospace sector jobs tax credit and a tuition reimbursement tax
  188  credit for the same qualified employee.
  189         (7)APPLICATION FOR TAX CREDITS.—
  190         (a)An aerospace business must apply to the department for
  191  authorization to claim an aerospace sector jobs tax credit or a
  192  tuition reimbursement tax credit. The application must be filed
  193  under oath and include:
  194         1.The name and address of the business and documentation
  195  that the business is an aerospace business.
  196         2.For each employee for which a tax credit is sought:
  197         a.The employee's name and documentation that the employee
  198  is a qualified employee.
  199         b.The salary or hourly wages, including the hourly wages
  200  subject to unemployment tax paid to the qualified employee.
  201         c.The location of the university from which the qualified
  202  employee received his or her degree.
  203         d.A statement of whether the applicant is seeking an
  204  aerospace sector jobs tax credit or a tuition reimbursement tax
  205  credit.
  206         (b)The applicant for a tax credit has the burden of
  207  demonstrating to the satisfaction of the department that it
  208  meets the requirements of this section.
  209         (8)LIMITS ON THE CARRY OVER OF TAX CREDITS.—An aerospace
  210  business may not carry over more tax credits in an amended
  211  return than were claimed on the original return for the taxable
  212  year. This subsection does not limit increases in the amount of
  213  credit claimed on an amended return due to the use of any credit
  214  amount previously carried over pursuant to paragraph (2)(e) or
  215  paragraph (3)(c).
  216         (9)PENALTIES.—
  217         (a)Any person who fraudulently claims this credit is
  218  liable for repayment of the credit, plus a mandatory penalty in
  219  the amount of 200 percent of the credit, plus interest at the
  220  rate provided in s. 220.807, and commits a felony of the third
  221  degree, punishable as provided in s. 775.082, s. 775.083, or s.
  222  775.084.
  223         (b)Any person who makes an underpayment of tax as a result
  224  of a grossly overstated claim for this credit commits a felony
  225  of the third degree, punishable as provided in s. 775.082, s.
  226  775.083, or s. 775.084. As used in this paragraph, the term
  227  grossly overstated claim means a claim in an amount in excess
  228  of 100 percent of the amount of credit allowable under this
  229  section.
  230         (10)RULEMAKING.The department may adopt rules to
  231  prescribe any necessary forms required to claim a tax credit
  232  under this section and to provide guidelines and procedures
  233  required to administer this section.
  234         (11)EXPIRATION.—This section, except paragraphs (2)(e) and
  235  (3)(c) and subsection (9), expires December 31, 2020. An
  236  aerospace business may not claim a new tax credit under this
  237  section after that date. However, an aerospace business may
  238  claim tax credits carried over pursuant to paragraph (2)(e) or
  239  paragraph (3)(c).
  240         Section 4. This act shall take effect January 1, 2010, and
  241  applies to tax years beginning on or after that date.