Florida Senate - 2010 SB 148 By Senator Ring 32-00048-10 2010148__ 1 A bill to be entitled 2 An act relating to employment for the homeless; 3 amending s. 220.02, F.S.; specifying the order for 4 applying the tax credit for employment of the 5 homeless; amending s. 220.13, F.S.; redefining the 6 term “adjusted federal income” to include an 7 adjustment for such tax credit; creating s. 220.194, 8 F.S.; providing definitions; providing a tax credit 9 for a corporation that hires a homeless person 10 residing in a transitional housing facility; 11 specifying the information that must be provided to 12 the Department of Revenue when applying for the 13 credit; providing for the carryover of unused credits; 14 requiring that the application be filed with the 15 department by a specified date each year; providing 16 penalties for fraudulently claiming the tax credit; 17 limiting the total amount of tax credits that may be 18 granted per taxable year; authorizing the department 19 to adopt rules; providing for the expiration of the 20 tax credit; requiring that the department collect 21 certain data; providing an 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 be 30 applied in the following order: those enumerated in s. 631.828, 31 those enumerated in s. 220.191, those enumerated in s. 220.181, 32 those enumerated in s. 220.183, those enumerated in s. 220.182, 33 those enumerated in s. 220.1895, those enumerated in s. 221.02, 34 those enumerated in s. 220.184, those enumerated in s. 220.186, 35 those enumerated in s. 220.1845, those enumerated in s. 220.19, 36 those enumerated in s. 220.185, those enumerated in s. 220.187, 37 those enumerated in s. 220.192, those enumerated in s. 220.193, 38andthose enumerated in s. 288.9916, and those enumerated under s. 220.194. 39 288.9916, and those enumerated under s. 220.194. 40 Section 2. Paragraph (a) of subsection (1) of section 41 220.13, Florida Statutes, is amended to read: 42 220.13 “Adjusted federal income” defined.— 43 (1) The term “adjusted federal income” means an amount 44 equal to the taxpayer’s taxable income as defined in subsection 45 (2), or such taxable income of more than one taxpayer as 46 provided in s. 220.131, for the taxable year, adjusted as 47 follows: 48 (a) Additions.—There shall be added to such taxable 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 under 94 s. 220.187. 95 12. The amount taken as a credit for the taxable year under 96 s. 220.192. 97 13. The amount taken as a credit for the taxable year under 98 s. 220.193. 99 14. Any portion of a qualified investment, as defined in s. 100 288.9913, which is claimed as a deduction by the taxpayer and 101 taken as a credit against income tax pursuant to s. 288.9916. 102 15. The amount taken as a credit for the taxable year under 103 s. 220.194. 104 Section 3. Section 220.194, Florida Statutes, is created to 105 read: 106 220.194 Tax credit for employment of the homeless.— 107 (1) As used in this section, the term: 108 (a) “Continuously employed” means that an employee has 109 worked for the corporation for at least 80 hours during each 30 110 day period and has been employed at least 6 months following the 111 date that the employee began working for the corporation on or 112 after July 1, 2010. 113 (b) “Homeless person” means an individual whose primary 114 nighttime residence is at a transitional housing facility. 115 (c) “Transitional housing facility” means a facility 116 located in the state which is a supervised, publicly or 117 privately operated shelter designed to provide temporary living 118 accommodations, including welfare hotels, congregate shelters, 119 and transitional housing for the mentally ill, and which 120 receives federal homeless assistance funding distributed by the 121 United States Department of Housing and Urban Development. 122 (2) For taxable years beginning on or after January 1, 123 2011, a tax credit of $1,000 shall be allowed to a corporation 124 against any corporate income tax due under this chapter if the 125 corporation hires a homeless person who resides in a 126 transitional housing facility at the time he or she begins 127 employment and who remains continuously employed by the 128 corporation for at least 6 months. The tax credit may be taken 129 only once per new employee. 130 (3) Upon applying for the credit, the corporation must 131 provide the department with the following information: 132 (a) For each new employee for whom the credit is claimed: 133 1. The employee’s name, social security number, and current 134 address or, if the employee is no longer employed, the last 135 known address of the person while employed by the corporation; 136 2. The address of the transitional housing facility where 137 the employee was residing at the time he or she began employment 138 and documentation from the transitional housing facility which 139 demonstrates that the employee qualified for and was residing at 140 the facility at the time he or she began employment; and 141 3. The salary or hourly wages paid to the new employee 142 during the taxable year. 143 (b) The total salary or hourly wages paid during the 144 taxable year to each employee who is still employed by the 145 corporation and for whom the tax credit was claimed in a prior 146 taxable year. 147 (4) If the credit is not fully used in any one year, the 148 unused amount may be carried forward for up to 5 years. The 149 carryover credit may be used in a subsequent year if the tax 150 imposed by this chapter exceeds the credit for the year after 151 applying any other credits and unused credit carryovers in the 152 order provided in s. 220.02(8). 153 (5) The corporation applying for the credit must 154 affirmatively demonstrate to the satisfaction of the department 155 that it meets the requirements in this section. An application 156 must be filed with the department by February 1 of each year for 157 an allocation of the previous year’s credit. The application 158 must show that all of the requirements in this section were met 159 during the preceding calendar year. 160 (6) Any person who fraudulently claims the credit is liable 161 for payment of the credit, plus a mandatory penalty in the 162 amount of 200 percent of the credit and interest at the rate 163 provided in s. 220.807, and commits a felony of the third 164 degree, punishable as provided in s. 775.082, s. 775.083, or s. 165 775.084. 166 (7) The total amount of tax credit which may be granted 167 under this section is $2 million per calendar year. If the total 168 amount of tax credit for applications submitted in a given 169 calendar year exceeds $2 million, the amount of tax credit per 170 applicant shall be granted on a pro rata basis. If the full 171 amount of the tax credit is not allowed due to the $2 million 172 annual limitation, the balance shall be allowed in the following 173 tax year. The amount not allowed in the previous tax year shall 174 be allowed in full prior to the pro rata allocation of tax 175 credit in the following tax year. 176 (8) The department may adopt rules and forms to administer 177 this section. 178 (9) This section expires December 31, 2015, except for 179 subsections (3) and (8), which expire December 31, 2021. In 180 determining whether to reenact this section, the Legislature 181 shall consider whether the revenue generated from wages paid to 182 qualifying employees outweighs the cost to the state in terms of 183 the amount of taxes waived. The department shall collect and 184 maintain data relating to the total amount of wages paid to 185 employees for whom a tax credit has been claimed in order to 186 assist the Legislature in making its determination. 187 Section 4. This act shall take effect July 1, 2010.