| 1 | A bill to be entitled |
| 2 | An act relating to the corporate income tax; amending s. |
| 3 | 220.03, F.S.; deleting certain provisions relating to |
| 4 | federal amendments to federal law dealing with bonus |
| 5 | depreciation for purposes of adjusted federal income and |
| 6 | corporate income tax liability; amending s. 220.13, F.S.; |
| 7 | deleting certain adjustments to federal income; specifying |
| 8 | the treatment by this state of certain depreciation and |
| 9 | expensing of assets that are allowed for federal income |
| 10 | tax purposes; requiring the Department of Revenue to |
| 11 | compromise certain penalties and interest under certain |
| 12 | circumstances; specifying application; authorizing the |
| 13 | department to adopt emergency rules for certain |
| 14 | administrative purposes; providing for retroactive |
| 15 | operation; providing an effective date. |
| 16 |
|
| 17 | Be It Enacted by the Legislature of the State of Florida: |
| 18 |
|
| 19 | Section 1. Subsection (3) of section 220.03, Florida |
| 20 | Statutes, is amended to read: |
| 21 | 220.03 Definitions.-- |
| 22 | (3) FUTURE FEDERAL AMENDMENTS.-- |
| 23 | (a) On or after January 1, 1972, when expressly authorized |
| 24 | by law, any amendment to the Internal Revenue Code shall be |
| 25 | given effect under this code in such manner and for such periods |
| 26 | as are prescribed in the Internal Revenue Code, to the same |
| 27 | extent as if such amendment had been adopted by the Legislature |
| 28 | of this state. However, any such amendment shall have effect |
| 29 | under this code only to the extent that the amended provision of |
| 30 | the Internal Revenue Code shall be taken into account in the |
| 31 | computation of net income subject to tax hereunder. |
| 32 | (b)1. Section 102 of Pub. L. No. 110-185 amends s. 179(b) |
| 33 | of the Internal Revenue Code of 1986, as amended, and provides |
| 34 | temporary increases in the limitations of expensing specified |
| 35 | depreciable business assets for tax years beginning after |
| 36 | December 31, 2007. The amount of such temporary increases may |
| 37 | not be used in computing adjusted federal income for the purpose |
| 38 | of determining corporate income tax liability in this state. |
| 39 | 2. Section 103 of Pub. L. No. 110-185 amends s. 168(k) of |
| 40 | the Internal Revenue Code of 1986, as amended, for specified |
| 41 | property acquired after December 31, 2007, and before January 1, |
| 42 | 2009. Section 103 provides an additional allowance equal to 50 |
| 43 | percent of the adjusted basis of the qualified property entitled |
| 44 | to a depreciation deduction by s. 167(a) for the taxable year in |
| 45 | which such property is placed in service. The amount of such |
| 46 | special depreciation allowances may not be used in computing |
| 47 | adjusted federal income for the purpose of determining corporate |
| 48 | income tax liability in this state. |
| 49 | 3. It is the intent of the Legislature that ss. 102 and |
| 50 | 103 of Pub. L. No. 110-185 be construed to disallow a deduction |
| 51 | for bonus depreciation allowed under s. 168 of the Internal |
| 52 | Revenue Code of 1986, as amended, in computing state net income. |
| 53 | The applicable depreciation conventions and recovery periods |
| 54 | shall be computed in the same manner as they are computed by the |
| 55 | taxpayer in determining federal taxable income. As used in this |
| 56 | chapter, the term "bonus depreciation" includes all amounts |
| 57 | allowed as a special allowance under s. 168(k) of the Internal |
| 58 | Revenue Code of 1986, as amended. |
| 59 | Section 2. Paragraph (a) of subsection (1) of section |
| 60 | 220.13, Florida Statutes, is amended, and paragraph (e) is added |
| 61 | to that subsection, to read: |
| 62 | 220.13 "Adjusted federal income" defined.-- |
| 63 | (1) The term "adjusted federal income" means an amount |
| 64 | equal to the taxpayer's taxable income as defined in subsection |
| 65 | (2), or such taxable income of more than one taxpayer as |
| 66 | provided in s. 220.131, for the taxable year, adjusted as |
| 67 | follows: |
| 68 | (a) Additions.--There shall be added to such taxable |
| 69 | income: |
| 70 | 1. The amount of any tax upon or measured by income, |
| 71 | excluding taxes based on gross receipts or revenues, paid or |
| 72 | accrued as a liability to the District of Columbia or any state |
| 73 | of the United States which is deductible from gross income in |
| 74 | the computation of taxable income for the taxable year. |
| 75 | 2. The amount of interest which is excluded from taxable |
| 76 | income under s. 103(a) of the Internal Revenue Code or any other |
| 77 | federal law, less the associated expenses disallowed in the |
| 78 | computation of taxable income under s. 265 of the Internal |
| 79 | Revenue Code or any other law, excluding 60 percent of any |
| 80 | amounts included in alternative minimum taxable income, as |
| 81 | defined in s. 55(b)(2) of the Internal Revenue Code, if the |
| 82 | taxpayer pays tax under s. 220.11(3). |
| 83 | 3. In the case of a regulated investment company or real |
| 84 | estate investment trust, an amount equal to the excess of the |
| 85 | net long-term capital gain for the taxable year over the amount |
| 86 | of the capital gain dividends attributable to the taxable year. |
| 87 | 4. That portion of the wages or salaries paid or incurred |
| 88 | for the taxable year which is equal to the amount of the credit |
| 89 | allowable for the taxable year under s. 220.181. This |
| 90 | subparagraph shall expire on the date specified in s. 290.016 |
| 91 | for the expiration of the Florida Enterprise Zone Act. |
| 92 | 5. That portion of the ad valorem school taxes paid or |
| 93 | incurred for the taxable year which is equal to the amount of |
| 94 | the credit allowable for the taxable year under s. 220.182. This |
| 95 | subparagraph shall expire on the date specified in s. 290.016 |
| 96 | for the expiration of the Florida Enterprise Zone Act. |
| 97 | 6. The amount of emergency excise tax paid or accrued as a |
| 98 | liability to this state under chapter 221 which tax is |
| 99 | deductible from gross income in the computation of taxable |
| 100 | income for the taxable year. |
| 101 | 7. That portion of assessments to fund a guaranty |
| 102 | association incurred for the taxable year which is equal to the |
| 103 | amount of the credit allowable for the taxable year. |
| 104 | 8. In the case of a nonprofit corporation which holds a |
| 105 | pari-mutuel permit and which is exempt from federal income tax |
| 106 | as a farmers' cooperative, an amount equal to the excess of the |
| 107 | gross income attributable to the pari-mutuel operations over the |
| 108 | attributable expenses for the taxable year. |
| 109 | 9. The amount taken as a credit for the taxable year under |
| 110 | s. 220.1895. |
| 111 | 10. Up to nine percent of the eligible basis of any |
| 112 | designated project which is equal to the credit allowable for |
| 113 | the taxable year under s. 220.185. |
| 114 | 11. The amount taken as a credit for the taxable year |
| 115 | under s. 220.187. |
| 116 | 12. The amount taken as a credit for the taxable year |
| 117 | under s. 220.192. |
| 118 | 13. The amount taken as a credit for the taxable year |
| 119 | under s. 220.193. |
| 120 | 14. Any amount in excess of $25,000 allowable as a |
| 121 | deduction for federal income tax purposes under s. 179 of the |
| 122 | Internal Revenue Code of 1986, as amended, for the taxable year. |
| 123 | 15. Any amount allowable as a deduction for federal income |
| 124 | tax purposes under s. 167 or s. 168 of the Internal Revenue Code |
| 125 | of 1986, as amended, for the taxable year to the extent that |
| 126 | such amount includes bonus depreciation allowable as deduction |
| 127 | under s. 168(k). |
| 128 | (e) Adjustments related to the Federal Economic Stimulus |
| 129 | Act of 2008.--Taxpayers shall be required to make the |
| 130 | adjustments prescribed in this paragraph for Florida tax |
| 131 | purposes in relation to certain tax benefits received pursuant |
| 132 | to the Economic Stimulus Act of 2008. |
| 133 | 1. There shall be added to such taxable income an amount |
| 134 | equal to 80 percent of any amount deducted for federal income |
| 135 | tax purposes as bonus depreciation for the taxable year pursuant |
| 136 | to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as |
| 137 | amended by s. 103 of Pub. L. No. 110-185, for property placed in |
| 138 | service after December 31, 2007, and before January 1, 2009. In |
| 139 | each of the 4 subsequent taxable years, there shall be |
| 140 | subtracted from such taxable income 25 percent of the amount by |
| 141 | which taxable income was increased pursuant to this |
| 142 | subparagraph, notwithstanding any sale or other disposition of |
| 143 | the property that is the subject of the adjustments and |
| 144 | regardless of whether such property remains in service in the |
| 145 | hands of the taxpayer. |
| 146 | 2. There shall be added to such taxable income an amount |
| 147 | equal to 80 percent of any amount in excess of $128,000 deducted |
| 148 | for federal income tax purposes for the taxable year under s. |
| 149 | 179 of the Internal Revenue Code of 1986, as amended by s. 102 |
| 150 | of Pub. L. No. 110-185, for taxable years beginning after |
| 151 | December 31, 2007, and before January 1, 2009. In each of the 4 |
| 152 | subsequent taxable years, there shall be subtracted from such |
| 153 | taxable income 25 percent of the amount by which taxable income |
| 154 | was increased pursuant to this subparagraph, notwithstanding any |
| 155 | sale or other disposition of the property that is the subject of |
| 156 | the adjustments and regardless of whether such property remains |
| 157 | in service in the hands of the taxpayer. |
| 158 | 3. Subtractions available under this paragraph may be |
| 159 | transferred to the surviving or acquiring entity following a |
| 160 | merger or acquisition and used in the same manner and with the |
| 161 | same limitations as specified by this paragraph. |
| 162 | 4. The additions and subtractions specified in this |
| 163 | paragraph are intended to adjust taxable income for Florida tax |
| 164 | purposes, and, notwithstanding any other provision of this code, |
| 165 | such additions and subtractions shall be permitted to change a |
| 166 | taxpayer's net operating loss for Florida tax purposes. |
| 167 | Section 3. The Department of Revenue shall compromise all |
| 168 | penalties and interest imposed on taxpayers who file returns |
| 169 | prior to the effective date of this act and subsequently file |
| 170 | amended returns based upon this act. This section only applies |
| 171 | to changes in tax liability directly resulting from the |
| 172 | provisions of this act. |
| 173 | Section 4. The executive director of the Department of |
| 174 | Revenue may, and all conditions are deemed met to, adopt |
| 175 | emergency rules under ss. 120.536(1) and 120.54(4), Florida |
| 176 | Statutes, for the purpose of implementing this act. |
| 177 | Notwithstanding any other provision of law, such emergency rules |
| 178 | shall remain in effect for 18 months after the date adopted and |
| 179 | may be renewed during the pendency of any procedures to adopt |
| 180 | rules addressing the subject of the emergency rules. |
| 181 | Section 5. This act shall take effect upon becoming a law, |
| 182 | and shall operate retroactively to January 1, 2008. |