HB 657

1
A bill to be entitled
2An act relating to corporate income tax credits; creating
3s. 220.1875, F.S.; providing legislative findings and
4purposes; providing definitions; establishing the Florida
5Public School Tax Credit Program; providing for credits
6against the corporate income tax for contributions to
7public schools for certain purposes; providing
8limitations; authorizing public schools to determine how
9to use undesignated contributions; requiring public
10schools to report certain information to the Department of
11Revenue; limiting the total annual amount of credits;
12providing requirements for taxpayers filing consolidated
13returns; providing procedures and requirements for
14rescinding credits; providing for use of rescinded credits
15by other taxpayers; specifying certain taxpayers as
16ineligible to receive the corporate tax credit; specifying
17administrative rules for use and application of the
18credit; requiring the Department of Revenue and the State
19Board of Education to adopt rules; providing requirements
20for deposits of eligible contributions; providing criteria
21for preservation of tax credits under certain
22circumstances; providing a limitation; providing an
23effective date.
24
25Be It Enacted by the Legislature of the State of Florida:
26
27     Section 1.  Section 220.1875, Florida Statutes, is created
28to read:
29     220.1875  Credits for contributions to public schools for
30public school expenses.-
31     (1)  FINDINGS AND PURPOSE.-
32     (a)  The Legislature finds that:
33     1.  It has the inherent power to determine subjects of
34taxation for general or particular public purposes.
35     2.  Expanding educational opportunities and improving the
36quality of educational services within the state are valid
37public purposes that the Legislature may promote using its
38sovereign power to determine subjects of taxation and exemptions
39from taxation.
40     3.  Expanding educational opportunities and the healthy
41competition they promote are critical to improving the quality
42of education in the state and to ensuring that all children
43receive the high-quality education to which they are entitled.
44     (b)  The purpose of this section is to:
45     1.  Enable taxpayers to make private, voluntary
46contributions to public schools in order to promote the general
47welfare.
48     2.  Enable children in this state to achieve a greater
49level of excellence in their education.
50     3.  Improve the quality of education in this state, both by
51expanding educational opportunities for children and by creating
52incentives for public schools to achieve excellence.
53     4.  Allow corporations to claim education tax credits for
54direct payments to public schools for educational expenses,
55special assistance, tutoring, Foundation for Florida's Future,
56mentoring, extracurricular activities, or character education
57programs and pay-to-play fees associated with mental and
58physical student development.
59     (2)  DEFINITIONS.-As used in this section, the term:
60     (a)  "Department" means the Department of Revenue.
61     (b)  "Eligible contribution" means a monetary contribution
62from a taxpayer, subject to the restrictions provided in this
63section, to a public school.
64     (c)  "Public school" means a school in this state that
65provides education to students in any grades K-12 in a public
66school district.
67     (3)  PROGRAM.-The Florida Public School Tax Credit Program
68is established.
69     (4)  AUTHORIZATION TO GRANT PUBLIC SCHOOL FUNDING TAX
70CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.-
71     (a)1.  There is allowed a credit of 100 percent of an
72eligible contribution against any tax due for a taxable year
73under this chapter. The credit is allowed against the taxes
74imposed by this chapter for the amount of any fees paid or cash
75contributions made by a taxpayer during the taxable year to a
76public school located in this state for the support of
77educational expenses, special assistance, tutoring, Foundation
78for Florida's Future, mentoring, extracurricular activities,
79character education programs and pay-to-play fees. The taxpayer
80may designate the specific use to which the contribution must be
81applied. However, such a credit may not exceed 75 percent of the
82tax due under this chapter for the taxable year, after the
83application of any other allowable credits by the taxpayer. The
84credit granted by this section shall be reduced by the
85difference between the amount of federal corporate income tax
86taking into account the credit granted by this section and the
87amount of federal corporate income tax without application of
88the credit granted by this section.
89     2.  Each public school that receives contributions that are
90not designated for a specific purpose shall determine how the
91contributions are used. The school advisory council may make
92recommendations as to how best to apply undesignated
93contributions.
94     3.  A public school that receives fees or a cash
95contribution shall report to the department, in a form
96prescribed by the department:
97     a.  The total number of fee and cash contribution payments
98received during the previous calendar year.
99     b.  The total dollar amount of fees and contributions
100received during the previous calendar year.
101     c.  The total dollar amount from fees and contributions
102received that were spent by the public school during the
103previous calendar year.
104     (b)  For each state fiscal year, the total amount of tax
105credits and carryforward of tax credits which may be granted
106under this section and s. 624.51055 is $118 million.
107     (c)  A taxpayer who files a Florida consolidated return as
108a member of an affiliated group pursuant to s. 220.131(1) may be
109allowed the credit on a consolidated return basis; however, the
110total credit taken by the affiliated group is subject to the
111limitation established under paragraph (a).
112     (d)  Effective for tax years beginning January 1, 2011, a
113taxpayer may rescind all or part of its allocated tax credit
114under this section. The amount rescinded shall become available
115for purposes of the cap for that state fiscal year under this
116section to an eligible taxpayer as approved by the department if
117the taxpayer receives notice from the department that the
118rescission has been accepted by the department and the taxpayer
119has not previously rescinded any or all of its tax credit
120allocation under this section more than once in the previous 3
121tax years. Any amount rescinded under this paragraph shall
122become available to an eligible taxpayer on a first-come, first-
123served basis based on tax credit applications received after the
124date the rescission is accepted by the department.
125     (e)  A taxpayer who is eligible to receive the credit
126provided for in s. 624.51055 is not eligible to receive the
127credit provided by this section.
128     (5)  ADMINISTRATION; RULES.-
129     (a)  If the credit granted pursuant to this section is not
130fully used in any one year because of insufficient tax liability
131on the part of the corporation, the unused amount may be carried
132forward for a period not to exceed 3 years; however, any
133taxpayer that seeks to carry forward an unused amount of tax
134credit must submit an application for allocation of tax credits
135or carryforward credits as required in paragraph (d) in the year
136that the taxpayer intends to use the carryforward. This
137carryforward applies to all approved contributions made after
138January 1, 2011. A taxpayer may not convey, assign, or transfer
139the credit authorized by this section to another entity unless
140all of the assets of the taxpayer are conveyed, assigned, or
141transferred in the same transaction.
142     (b)  An application for a tax credit pursuant to this
143section shall be submitted to the department on forms
144established by rule of the department.
145     (c)  The department and the Department of Education shall
146develop a cooperative agreement to assist in the administration
147of this section.
148     (d)  The department shall adopt rules necessary to
149administer this section, including rules establishing
150application forms and procedures and governing the allocation of
151tax credits and carryforward credits under this section on a
152first-come, first-served basis.
153     (e)  The State Board of Education shall adopt rules
154pursuant to ss. 120.536(1) and 120.54 to administer this section
155as it relates to the roles of the Department of Education and
156the Commissioner of Education.
157     (6)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.-All eligible
158contributions received by a public school shall be deposited in
159a manner consistent with s. 17.57(2).
160     (7)  PRESERVATION OF CREDIT.-If any provision or portion of
161subsection (4) or the application thereof to any person or
162circumstance is held unconstitutional by any court or is
163otherwise declared invalid, the unconstitutionality or
164invalidity shall not affect any credit earned under subsection
165(4) by any taxpayer with respect to any contribution paid to a
166public school before the date of a determination of
167unconstitutionality or invalidity. Such credit shall be allowed
168at such time and in such a manner as if a determination of
169unconstitutionality or invalidity had not been made, provided
170that nothing in this subsection by itself or in combination with
171any other provision of law shall result in the allowance of any
172credit to any taxpayer in excess of one dollar of credit for
173each dollar paid to a public school.
174     Section 2.  This act shall take effect July 1, 2010.


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