HB 675

1	A bill to be entitled
2	An act relating to taxation; creating ss. 199.0125,
3	199.0235, 199.0325, 199.0335, 199.0425, 199.0525,
4	199.0575, 199.0625, 199.1035, 199.10555, 199.1065,
5	199.1755, and 199.1855, F.S.; recreating the annual
6	intangible personal property tax; providing a short title;
7	providing definitions; providing for imposition of the
8	annual tax; specifying a separate tax rate for securities
9	in a Florida's Future Investment Fund; specifying
10	nonapplication; specifying due date of annual tax;
11	providing for a discount for early payments; providing
12	requirements and procedures for annual tax returns and
13	payment of the annual tax; providing for corporate
14	election to pay stockholders' annual tax; providing
15	requirements for annual tax information reports; providing
16	requirements for the basis of assessments and valuation of
17	intangible personal property; providing for a contaminated
18	site rehabilitation tax credit; providing requirements,
19	procedures, and limitations; providing for a credit for
20	taxes imposed by other states; specifying requirements for
21	taxable situs of intangible personal property; exempting
22	certain property from the annual and nonrecurring
23	intangible taxes; amending ss. 28.35, 192.0105, 192.032,
24	192.042, 192.091, 193.114, 196.015, 196.199, 199.133,
25	199.183, 199.218, 199.232, 199.282, 199.292, 199.303,
26	212.02, 213.053, 213.054, 213.27, 650.05, and 733.702,
27	F.S., to conform provisions to the creation of the annual
28	intangible personal property tax; providing for
29	application of certain collection, administration, and
30	enforcement provisions to taxation of certain leaseholds;
31	authorizing the Department of Revenue to adopt emergency
32	implementing rules for a certain time; providing
33	legislative findings and intent; amending s. 220.03, F.S.;
34	revising a definition; defining the terms "tax haven" and
35	"water's edge group"; amending s. 220.13, F.S.; conforming
36	a cross-reference; redefining the term "adjusted federal
37	income" to limit the subtraction of certain deductions and
38	certain carryovers; requiring the subtraction of certain
39	dividends from taxable income; creating s. 220.136, F.S.;
40	providing rules and criteria to determine if a corporation
41	is a member of a water's edge group; creating s. 220.1363,
42	F.S.; providing a reporting method for a water's edge
43	group; providing for the apportionment of income to the
44	state; requiring a member of a water's edge group having
45	nexus with this state to file a single return for the
46	water's edge group; providing for the determination of
47	income for a member of a water's edge group having a
48	different tax year than the water's edge group; requiring
49	a water's edge group return to include a computational
50	schedule; requiring a water's edge group to file a
51	domestic disclosure spreadsheet along with its return;
52	authorizing the Department of Revenue to adopt rules;
53	amending s. 220.14, F.S.; providing for the proration of
54	an exemption during a leap year; limiting a water's edge
55	group to a single claim of a specified exemption; amending
56	s. 220.15, F.S.; deleting provisions relating to
57	affiliated groups with respect to certain sales of a
58	financial institution; amending s. 220.183, F.S.; deleting
59	provisions relating to affiliated groups with respect to
60	community contribution tax credits; amending s. 220.1845,
61	F.S.; deleting provisions relating to affiliated groups
62	with respect to the contaminated site rehabilitation tax
63	credit; amending s. 220.187, F.S.; deleting provisions
64	relating to affiliated groups with respect to the tax
65	credit for contributions to nonprofit scholarship funding
66	organizations; amending s. 220.191, F.S.; deleting
67	provisions relating to affiliated groups with respect to
68	the capital investment tax credit; amending s. 220.192,
69	F.S.; deleting provisions relating to affiliated groups
70	with respect to the renewable energy technologies
71	investment tax credit; amending s. 220.193, F.S.; deleting
72	provisions relating to affiliated groups with respect to
73	the Florida renewable energy production tax credit;
74	amending s. 220.51, F.S.; deleting provisions relating to
75	the rulemaking authority of the Department of Revenue with
76	respect to consolidated reporting for affiliated groups;
77	amending ss. 220.1845, 220.64, and 376.30781, F.S.;
78	conforming cross-references and conforming provisions to
79	the creation of the annual intangible personal property
80	tax; providing transitional rules for corporate income tax
81	returns filed by water's edge groups and affiliated groups
82	of corporations; specifying the allocation of funds that
83	are recaptured under the act; repealing s. 220.131, F.S.,
84	relating to adjusted federal income for affiliated groups;
85	requiring deposit of certain funds into the Educational
86	Enhancement Trust Fund; specifying certain allocations of
87	appropriations from the fund; providing legislative intent
88	relating to uses of funds; providing authority for certain
89	entities as to how best to use certain funds; providing
90	effective dates.
91
92	Be It Enacted by the Legislature of the State of Florida:
93
94	Section 1.  Effective January 1, 2011, sections 199.0125,
95	199.0235, 199.0325, 199.0335, 199.0425, 199.0525, 199.0575,
96	199.0625, 199.1035, 199.10555, 199.1065, 199.1755, and 199.1855,
97	Florida Statutes, are created to read:
98	199.0125  Short title.-Sections 199.0125-199.1855 may be
99	cited as the "Millionaire's Tax Act."
100	199.0235  Definitions.-As used in this chapter:
101	(1)  "Abroad" means in one or more foreign nations; in the
102	colonies, dependencies, possessions, or territories of a foreign
103	nation or of the United States; or in the Commonwealth of Puerto
104	Rico.
105	(2)(a)  "Affiliated group" means one or more chains of
106	corporations or limited liability companies connected through
107	stock ownership or membership interest in a limited liability
108	company with a common parent corporation or limited liability
109	company, for which:
110	1.  Stock or membership interest in a limited liability
111	company possessing at least 80 percent of the voting power of
112	all classes of stock or membership interest in a limited
113	liability company and at least 80 percent of each class of the
114	nonvoting stock or membership interest in a limited liability
115	company of each corporation or limited liability company, except
116	for the common parent corporation or limited liability company,
117	is owned directly by one or more of the other corporations or
118	limited liability companies.
119	2.  The common parent corporation or limited liability
120	company directly owns stock or membership interest in a limited
121	liability company possessing at least 80 percent of the voting
122	power of all classes of stock or membership interest in a
123	limited liability company and at least 80 percent of each class
124	of the nonvoting stock or membership interest in a limited
125	liability company of at least one of the other corporations or
126	limited liability companies.
127	(b)  As used in this subsection, the terms "nonvoting
128	stock" and "membership interest in a limited liability company"
129	do not include nonvoting stock or membership interest in a
130	limited liability company which is limited and preferred as to
131	dividends. For purposes of this chapter, a common parent may be
132	a corporation or a limited liability company.
133	(3)  "Banking organization" means:
134	(a)  A bank organized and existing under the laws of this
135	state;
136	(b)  A national bank organized and existing pursuant to the
137	provisions of the National Bank Act, 12 U.S.C. ss. 21 et seq.,
138	and maintaining its principal office in this state;
139	(c)  An Edge Act corporation organized pursuant to the
140	provisions of s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss.
141	611 et seq., and maintaining an office in this state;
142	(d)  An international bank agency licensed pursuant to the
143	laws of this state;
144	(e)  A federal agency licensed pursuant to ss. 4 and 5 of
145	the International Banking Act of 1978 to maintain an office in
146	this state;
147	(f)  A savings association organized and existing under the
148	laws of this state;
149	(g)  A federal association organized and existing pursuant
150	to the provisions of the Home Owners' Loan Act of 1933, 12
151	U.S.C. ss. 1461 et seq., and maintaining its principal office in
152	this state; or
153	(h)  An export finance corporation organized in this state
154	and existing pursuant to the provisions of part V of chapter
155	288.
156	(4)  A resident has a "beneficial interest" in a trust if
157	the resident has a vested interest, even if subject to
158	divestment, which includes at least a current right to income
159	and either a power to revoke the trust or a general power of
160	appointment, as defined in 26 U.S.C. s. 2041(b)(1).
161	(5)  "Department" means the Department of Revenue.
162	(6)  "Intangible personal property" means all personal
163	property that is not in itself intrinsically valuable, but that
164	derives its chief value from that which it represents,
165	including, but not limited to:
166	(a)  All stocks or shares of incorporated or unincorporated
167	companies, business trusts, and mutual funds.
168	(b)  All notes, bonds, and other obligations for the
169	payment of money.
170	(c)  All condominium and cooperative apartment leases of
171	recreation facilities, land leases, and leases of other commonly
172	used facilities.
173	(d)  Except for any leasehold or other possessory interest
174	described in s. 4(a), Art. VII of the State Constitution or s.
175	196.199(7), all leasehold or other possessory interests in real
176	property owned by the United States, the state, any political
177	subdivision of the state, any municipality of the state, or any
178	agency, authority, or other public body corporate of the state,
179	which are undeveloped or predominantly used for residential or
180	commercial purposes and upon which rental payments are due.
181	(7)  "International banking facility" means a set of asset
182	and liability accounts segregated on the books and records of a
183	banking organization that includes only international banking
184	facility deposits, borrowings, and extensions of credit as those
185	terms are defined pursuant to s. 655.071(2).
186	(8)  "International banking transaction" means:
187	(a)  The financing of the exportation from, or the
188	importation into, the United States or between jurisdictions
189	abroad of tangible personal property or services;
190	(b)  The financing of the production, preparation, storage,
191	or transportation of tangible personal property or services
192	which are identifiable as being directly and solely for export
193	from, or import into, the United States or between jurisdictions
194	abroad;
195	(c)  The financing of contracts, projects, or activities to
196	be performed substantially abroad, except those transactions
197	secured by a mortgage, deed of trust, or other lien upon real
198	property located in this state;
199	(d)  The receipt of deposits or borrowings or the
200	extensions of credit by an international banking facility,
201	except the loan or deposit of funds secured by mortgage, deed of
202	trust, or other lien upon real property located in this state;
203	or
204	(e)  Entering into foreign exchange trading or hedging
205	transactions in connection with the activities described in
206	paragraph (d).
207	(9)  "Ministerial function" means an act the performance of
208	which does not involve the use of discretion or judgment.
209	(10)  "Money" includes, without limitation, United States
210	legal tender, certificates of deposit, cashier's and certified
211	checks, bills of exchange, drafts, the cash equivalent of
212	annuities and life insurance policies, and similar instruments,
213	which are held by a taxpayer, or deposited with or held by a
214	banking organization or any other person.
215	(11)  "Person" means any individual, firm, partnership,
216	joint adventure, syndicate, or other group or combination acting
217	as a unit, association, corporation, estate, trust, business
218	trust, trustee, personal representative, receiver, or other
219	fiduciary and includes the plural as well as the singular.
220	(12)  "Processing activity" means an activity undertaken to
221	administer or service intangible personal property in accordance
222	with such terms, guidelines, criteria, or directions as are
223	provided solely by the owner of the property. Methods, systems,
224	or techniques chosen by the processor to implement such terms,
225	guidelines, criteria, or directions are not considered the
226	exercise of management or control.
227	(13)  "Taxpayer" means any person liable for taxes imposed
228	under this chapter and any heir, successor, assignee, and
229	transferee of any such person.
230	199.0325  Levy of annual tax.-An annual tax of 2 mills is
231	imposed on each dollar of the just valuation of all intangible
232	personal property that has a taxable situs in this state, except
233	for notes and other obligations for the payment of money, other
234	than bonds, that are secured by a mortgage, deed of trust, or
235	other lien upon real property situated in this state. This tax
236	shall be assessed and collected as provided in this chapter.
237	199.0335  Securities in a Florida's Future Investment Fund;
238	tax rate.-
239	(1)  Notwithstanding the provisions of this chapter, the
240	tax imposed under s. 199.0325 on securities in a Florida's
241	Future Investment Fund applies at a rate of 0.85 mill when the
242	average daily balance in such funds exceeds $2 billion and at a
243	rate of 0.70 mill when the average daily balance in such funds
244	exceeds $5 billion.
245	(2)  This section shall not apply in any year in which the
246	revenues of the foundation in the previous calendar year are
247	less than the tax savings allowed by this section. The term "tax
248	savings" means the difference between the tax that would be
249	imposed pursuant to s. 199.0325 and the tax rate specified in
250	subsection (1).
251	199.0425  Due date of annual tax.-
252	(1)  The annual tax on intangible personal property shall
253	be due and payable on June 30 of each year. Payment of the tax
254	shall be made to the department upon filing of the return
255	required by s. 199.0525. A return mailed to the department shall
256	be considered timely filed if the return bears a postmark no
257	later than the due date.
258	(2)  A discount for early payment of the annual tax shall
259	be allowed as follows: for payment on or before the last day of
260	February, 4 percent; for payment on or before March 31, 3
261	percent; for payment on or before April 30, 2 percent; and for
262	payment after April 30 but on or before May 31, 1 percent.
263	199.0525  Annual tax returns; payment of annual tax.-
264	(1)  An annual intangible tax return must be filed with the
265	department by each corporation authorized to do business in this
266	state or doing business in this state and by each person,
267	regardless of domicile, who on January 1 owns, controls, or
268	manages intangible personal property which has a taxable situs
269	in this state. For purposes of this chapter, the terms "control"
270	or "manage" do not include any ministerial function or any
271	processing activity. The return shall be due on June 30 of each
272	year. It shall list separately the character, description, and
273	just valuation of all such property.
274	(2)  A person, corporation, agent, or fiduciary is not
275	required to pay the annual tax in any year when the aggregate
276	annual tax upon the intangible personal property, after
277	exemptions but before application of any discount for early
278	filing, would be less than $60. In such case, an annual return
279	is not required. Agents and fiduciaries shall report for each
280	person for whom they hold intangible personal property if the
281	aggregate annual tax on such person is $60 or more.
282	(3)  A corporation having no intangible tax liability, and
283	required to file an annual report pursuant to s. 607.1622, is
284	not required to file the annual intangible tax return required
285	by this section.
286	(4)  A husband and wife may file a joint return with regard
287	to all intangible personal property held jointly or individually
288	by them. They shall then be jointly liable for the payment of
289	the annual tax.
290	(5)  A trustee of a trust is not responsible for filing
291	returns for the trust's intangible personal property and is not
292	required to pay any annual tax on such property, although the
293	department may require the trustee to file an informational
294	return.
295	(6)  Each resident of this state with a beneficial interest
296	as defined in s. 199.0235(4) in a trust is responsible for
297	filing an annual return for the resident's equitable share of
298	the trust's intangible personal property and paying the annual
299	tax on such property. The trustee of a trust may file an annual
300	return and pay the tax on the equitable shares of all residents
301	of this state having beneficial interests, in which case the
302	residents need not file an annual return for such property or
303	pay such tax.
304	(7)  The personal representative or curator of an estate in
305	this state is primarily responsible for filing an annual return
306	for the estate's intangible personal property and paying the
307	annual tax on it. The heirs or devisees, however, may
308	individually file an annual return for their equitable shares of
309	the estate's intangible personal property and pay the tax on
310	such shares, in which case the personal representative or
311	curator need not file an annual return such property or pay such
312	tax, although the department may require the personal
313	representative or curator to file an informational return.
314	(8)  The guardian of the property of an incompetent
315	resident of this state shall file an annual return for the
316	incompetent's intangible personal property and pay the annual
317	tax on such property. The custodian of a minor resident of this
318	state under a gifts-to-minors or similar act shall file an
319	annual return for the minor's intangible personal property which
320	is subject to the custodianship and pay the annual tax on such
321	property.
322	(9)  If an agent other than a trustee has control or
323	management of intangible personal property, the principal is
324	primarily responsible for filing an annual return for such
325	property and paying the annual tax on such property, but the
326	agent shall file an annual return for property on behalf of the
327	principal and pay the annual tax on such property if the
328	principal fails to do so. The department may in any case require
329	the agent to file an informational return.
330	(10)  An affiliated group may elect to file a consolidated
331	return for any year. The election shall be made by timely filing
332	a consolidated return. Once made, an election may not be revoked
333	and is binding for the tax year. The mere filing of a
334	consolidated return does not in itself provide a business situs
335	in this state for intangible personal property held by a
336	corporation. The fact that members of an affiliated group own
337	stock in corporations or membership interest in limited
338	liability companies that do not qualify under the stock
339	ownership or membership interest in a limited liability company
340	requirements as members of an affiliated group shall not
341	preclude the filing of a consolidated return on behalf of the
342	qualified members. If a consolidated return is filed,
343	intercompany accounts, including the capital stock or membership
344	interest in a limited liability company of an includable
345	corporation or limited liability company, other than the parent,
346	owned by another includable corporation or limited liability
347	company, are not subject to the annual tax. However, capital
348	stock, or membership interest in a limited liability company,
349	and other intercompany accounts of a nonqualified member of the
350	affiliated group are subject to the annual tax. Each
351	consolidated return must be accompanied by documentation
352	identifying all intercompany accounts and containing such other
353	information as the department may require. Failure to timely
354	file a consolidated return shall not prejudice the taxpayer's
355	right to file a consolidated return, provided the failure to
356	file a consolidated return is limited to 1 year and the
357	taxpayer's intent to file a consolidated return is evidenced by
358	the taxpayer having filed a consolidated return for the 3 years
359	prior to the year the return was not timely filed.
360	(11)  An annual return for securities held in margin
361	accounts by a security broker not acting as a fiduciary shall be
362	filed, and the annual tax on such securities shall be paid, by
363	the customer owning them. The security broker is not required to
364	file an annual return or pay the tax on such securities.
365	(12)  Except as otherwise provided in this section, the
366	owner of intangible personal property is liable for the payment
367	of annual tax on such property, and any other person required to
368	file an annual return for such property is liable for the tax if
369	the owner fails to pay the tax.
370	(13)  If a bank or savings association, as defined in s.
371	220.62, acts as a fiduciary or agent of a trust other than as a
372	trustee, the bank or savings association is not responsible for
373	filing an annual return for the trust's intangible personal
374	property and is not required to pay any annual tax on such
375	property, and the management or control of the bank or savings
376	association shall not be used as the basis for imposing any
377	annual tax on any person or any assets of the trust. If a person
378	acts as a fiduciary or agent for purposes of managing intangible
379	assets owned by another person, such intangible assets shall not
380	have a taxable situs in this state pursuant to s. 199.1755
381	solely by virtue of the management or control of such assets by
382	the person who is not the owner of the assets.
383	(14)(a)  Except as provided in paragraph (b), each bank and
384	financial organization filing annual intangible tax returns for
385	its customers shall file return information for taxes due
386	January 1, 2011, and thereafter using machine-sensible media.
387	The information required by this subsection must be reported by
388	banks or financial organizations on machine-sensible media,
389	using specifications and instructions of the department. A bank
390	or financial organization that demonstrates to the satisfaction
391	of the department that a hardship exists is not required to file
392	intangible tax returns for its customers using machine-sensible
393	media. The department shall adopt rules necessary to administer
394	this paragraph.
395	(b)  A taxpayer may choose to file an annual intangible
396	personal property tax return in a form initiated through an
397	electronic data interchange using an advanced encrypted
398	transmission by means of the Internet or other suitable
399	transmission. The department shall prescribe by rule the format
400	and instructions necessary for such filing to ensure a full
401	collection of taxes due. The acceptable method of transfer, the
402	method, form, and content of the electronic data interchange,
403	and the means, if any, by which the taxpayer will be provided
404	with an acknowledgment shall be prescribed by the department.
405	199.0575  Corporate election to pay stockholders' annual
406	tax.-
407	(1)  Each corporation incorporated or qualified to do
408	business in this state may elect each tax year to pay the annual
409	tax on any class of its stock, as agent for its stockholders in
410	this state holding such stock.
411	(2)  To make the election, the corporation shall:
412	(a)  File written notice with the department on or before
413	June 30 of the year for which the election is made.
414	(b)  File an annual return with respect to such stock and
415	its own intangible personal property.
416	(c)  Furnish its stockholders in this state with written
417	notice, on or before April 1 of the year for which the election
418	is made, that the election is being made, including a
419	description of the class or classes of stock which are affected.
420	A corporation making the election under this subsection shall
421	certify on its notice to the department that its stockholders
422	were timely notified of the election.
423	(3)  An election is not valid unless timely notice of the
424	election is given to the department under paragraph (2)(a). Once
425	made, an election may not be amended or revoked and is binding
426	for the tax year.
427	199.0625  Annual tax information reports.-
428	(1)(a)  On or before June 30 of each year, each security
429	dealer and investment adviser registered under the laws of this
430	state shall file with the department a position statement as of
431	December 31 of the preceding year for each customer whose
432	mailing address is in this state or a statement that the
433	security dealer or investment adviser does not hold securities
434	on account for any customer whose mailing address is in this
435	state. The position statement shall include the customer's name,
436	address, social security number, or federal identification
437	number; the number of units, value, and description, including
438	the Committee on Uniform Security Identification Procedures
439	(CUSIP) number, if any, of all securities held by the dealer or
440	adviser for the customer; and such other information as the
441	department may reasonably require. The dealer or adviser shall
442	report the information required by this paragraph on magnetic
443	media, using specifications and instructions of the department,
444	unless the dealer or adviser demonstrates that an undue hardship
445	exists.
446	(b)1.  The department may require security dealers and
447	investment advisers registered in this state to transmit once
448	every 2 years a copy of the department's intangible tax brochure
449	to each customer of the dealer or advisor whose mailing address
450	is in this state.
451	2.  The department may require property appraisers to send,
452	at such times and in such manner as the department and the
453	property appraisers jointly determine, a copy of the
454	department's intangible tax brochure to each owner of property
455	in this state.
456	(2)  Each fiduciary shall serve the department with a copy
457	of each inventory required to be prepared or filed in the
458	circuit court under general law or rules adopted by the Supreme
459	Court relating to decedent's estates, trusts, or guardianships.
460	Any such inventory required to be filed in the circuit court may
461	not be approved by the court until such copy as required by this
462	subsection has been filed with the department. When an inventory
463	is not required to be filed in the circuit court, the personal
464	representative of a decedent's estate shall serve the department
465	with a copy of one inventory as provided in s. 733.604, and each
466	other fiduciary shall file a return relating to such information
467	as shall be prescribed by rule of the department.
468	199.1035  Basis of assessment; valuation.-All intangible
469	personal property shall be subject to the annual tax at its just
470	valuation as of January 1 of each year. Such property shall be
471	valued in the following manner:
472	(1)  Shares of stock of corporations, or any interest of a
473	limited partner in any limited partnership, regularly listed on
474	any public stock exchange or regularly traded over-the-counter
475	shall be valued at their closing prices on the last business day
476	of the previous calendar year.
477	(2)  Shares or units of companies or trusts registered
478	under the Investment Company Act of 1940, as amended, including
479	mutual funds, money market funds, and unit investment trusts
480	where such shares or units are not exempt under s. 199.1855,
481	shall be valued at the net asset value of such shares or units
482	on the last business day of the previous calendar year.
483	(3)  Bonds regularly listed on any public stock exchange or
484	regularly traded over-the-counter shall be valued at their
485	closing bid prices on the last business day of the previous
486	calendar year.
487	(4)  Shares of stocks, bonds, or similar instruments of
488	corporations not listed on any public stock exchange or not
489	regularly traded over-the-counter shall be valued as of January
490	1 of each year on the basis of those factors customarily
491	considered in determining fair market value.
492	(5)  Accounts receivable shall be valued at their face
493	value as of January 1 of each year, less a reasonable allowance
494	for uncollectible accounts.
495	(6)  All notes and other obligations shall have a value
496	equal to their unpaid balance as of January 1 of each year,
497	unless the taxpayer can establish a lesser value upon proof
498	satisfactory to the department.
499	(7)  All other forms of intangible personal property shall
500	be valued on the basis of factors customarily considered in
501	determining fair market value.
502	(8)  Stocks or shares of a savings association or middle
503	tier stock holding company, held by a parent mutual holding
504	company, the depositors of which are members of the mutual
505	holding company, which converted from a mutual savings
506	association to a mutual holding company pursuant to 12 U.S.C. s.
507	1467a.(o), shall be valued as of January 1 each year on the same
508	basis as ownership in the mutual savings association was valued
509	for intangible tax purposes prior to the conversion. Stocks or
510	shares of such a converted association which are held by
511	individuals or entities other than the parent mutual holding
512	company shall be valued pursuant to subsection (1) or subsection
513	(4).
514	199.10555  Contaminated site rehabilitation tax credit.-
515	(1)  AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.-
516	(a)  A credit equal to 35 percent of the costs of voluntary
517	cleanup activity that is integral to site rehabilitation at the
518	following sites is available against any tax due for a taxable
519	year under s. 199.0325, less any credit allowed by former s.
520	220.68 for that year:
521	1.  A drycleaning-solvent-contaminated site eligible for
522	state-funded site rehabilitation under s. 376.3078;
523	2.  A drycleaning-solvent-contaminated site at which
524	voluntary cleanup is undertaken by the real property owner
525	pursuant to s. 376.3078, if the real property owner is not also,
526	and has never been, the owner or operator of the drycleaning
527	facility where the contamination exists; or
528	3.  A brownfield site in a designated brownfield area under
529	s. 376.80.
530	(b)  A tax credit applicant, or multiple tax credit
531	applicants working jointly to clean up a single site, may not be
532	granted more than $250,000 per year in tax credits for each site
533	voluntarily rehabilitated. Multiple tax credit applicants shall
534	be granted tax credits in the same proportion as their
535	contribution to payment of cleanup costs. Subject to the same
536	conditions and limitations as provided in this section, a
537	municipality, county, or other tax credit applicant which
538	voluntarily rehabilitates a site may receive not more than
539	$250,000 per year in tax credits which it can subsequently
540	transfer subject to the provisions in paragraph (g).
541	(c)  If the credit granted under this section is not fully
542	used in any one year because of insufficient tax liability on
543	the part of the tax credit applicant, the unused amount may be
544	carried forward for a period not to exceed 5 years. Five years
545	after the date a credit is granted under this section, such
546	credit expires and may not be used. However, if during the 5-
547	year period the credit is transferred, in whole or in part,
548	pursuant to paragraph (g), each transferee has 5 years after the
549	date of transfer to use the transferred credit.
550	(d)  A taxpayer that receives a credit under s. 220.1845 is
551	ineligible to receive credit under this section in a given tax
552	year.
553	(e)  A tax credit applicant that receives state-funded site
554	rehabilitation pursuant to s. 376.3078 for rehabilitation of a
555	drycleaning-solvent-contaminated site is ineligible to receive
556	credit under this section for costs incurred by the tax credit
557	applicant in conjunction with the rehabilitation of that site
558	during the same time period that state-administered site
559	rehabilitation was underway.
560	(f)  The total amount of the tax credits which may be
561	granted under this section and s. 220.1845 is $2 million
562	annually.
563	(g)1.  Tax credits that may be available under this section
564	to an entity eligible under s. 376.30781 may be transferred
565	after a merger or acquisition to the surviving or acquiring
566	entity and used in the same manner with the same limitations.
567	2.  The entity, or its surviving or acquiring entity as
568	described in subparagraph 1., may transfer any unused credit in
569	whole or in units of no less than 25 percent of the remaining
570	credit. The entity acquiring such credit may use it in the same
571	manner and with the same limitation as described in this
572	section. Such transferred credits may not be transferred again,
573	although such credits may succeed to a surviving or acquiring
574	entity subject to the same conditions and limitations as
575	described in this section.
576	3.  If the credit provided for under this section is
577	reduced as a result of a determination by the Department of
578	Environmental Protection or an examination or audit by the
579	Department of Revenue, such tax deficiency shall be recovered
580	from the first entity, or the surviving or acquiring entity, to
581	have claimed such credit up to the amount of credit taken. Any
582	subsequent deficiencies shall be assessed against any entity
583	acquiring and claiming such credit or, in the case of multiple
584	succeeding entities, in the order of credit succession.
585	(h)  In order to encourage completion of site
586	rehabilitation at contaminated sites being voluntarily cleaned
587	up and eligible for a tax credit under this section, the tax
588	credit applicant may claim an additional 10 percent of the total
589	cleanup costs, not to exceed $50,000, in the final year of
590	cleanup as evidenced by the Department of Environmental
591	Protection issuing a "No Further Action" order for that site.
592	(2)  FILING REQUIREMENTS.-Any taxpayer that wishes to
593	obtain credit under this section must submit with the taxpayer's
594	return a tax credit certificate approving partial tax credits
595	issued by the Department of Environmental Protection under s.
596	376.30781.
597	(3)  ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT
598	FORFEITURE.-
599	(a)  The Department of Revenue may adopt rules to prescribe
600	any necessary forms required to claim a tax credit under this
601	section and to provide the administrative guidelines and
602	procedures required to administer this section.
603	(b)  In addition to its existing audit and investigation
604	authority relating to chapters 199 and 220, the Department of
605	Revenue may perform any additional financial and technical
606	audits and investigations, including examining the accounts,
607	books, or records of the tax credit applicant, which are
608	necessary to verify the site rehabilitation costs included in a
609	tax credit return and to ensure compliance with this section.
610	The Department of Environmental Protection shall provide
611	technical assistance, when requested by the Department of
612	Revenue, on any technical audits performed under this section.
613	(c)  It is grounds for forfeiture of previously claimed and
614	received tax credits if the Department of Revenue determines, as
615	a result of either an audit or information received from the
616	Department of Environmental Protection, that a taxpayer received
617	tax credits under this section to which the taxpayer was not
618	entitled. In the case of fraud, the taxpayer shall be prohibited
619	from claiming any future tax credits under this section or s.
620	220.1845.
621	1.  The taxpayer is responsible for returning forfeited tax
622	credits to the Department of Revenue, and such funds shall be
623	paid into the General Revenue Fund of the state.
624	2.  The taxpayer shall file with the Department of Revenue
625	an amended tax return or such other report as the Department of
626	Revenue prescribes by rule and shall pay any required tax within
627	60 days after the taxpayer receives notification from the
628	Department of Environmental Protection pursuant to s. 376.30781
629	that previously approved tax credits have been revoked or
630	modified, if uncontested, or within 60 days after a final order
631	is issued following proceedings involving a contested revocation
632	or modification order.
633	3.  A notice of deficiency may be issued by the Department
634	of Revenue at any time within 5 years after the date the
635	taxpayer receives notification from the Department of
636	Environmental Protection pursuant to s. 376.30781 that
637	previously approved tax credits have been revoked or modified.
638	If a taxpayer fails to notify the Department of Revenue of any
639	change in its tax credit claimed, a notice of deficiency may be
640	issued at any time. In either case, the amount of any proposed
641	assessment set forth in such notice of deficiency shall be
642	limited to the amount of any deficiency resulting under this
643	section from the recomputation of the taxpayer's tax for the
644	taxable year.
645	4.  Any taxpayer that fails to report and timely pay any
646	tax due as a result of the forfeiture of its tax credit is in
647	violation of this section and is subject to applicable penalty
648	and interest.
649	199.1065  Credit for taxes imposed by other states.-
650	(1)  For intangible personal property that has been deemed
651	to have a taxable situs in this state solely pursuant to s.
652	199.1755(2) or any similar predecessor statute, a credit against
653	the tax imposed by s. 199.0325 is allowed to a taxpayer in an
654	amount equal to a like tax lawfully imposed and paid by that
655	taxpayer on the same property in another state, territory of the
656	United States, or the District of Columbia. For purposes of this
657	subsection, the term "like tax" means an ad valorem tax on
658	intangible personal property that is also subject to tax under
659	s. 199.0325. The credit may not exceed the tax imposed on the
660	property under s. 199.0325. Proof of entitlement to such a
661	credit must be made pursuant to rules and forms adopted by the
662	department.
663	(2)  For intangible personal property that has a taxable
664	situs in this state under s. 199.1755(1) or any similar
665	predecessor statute, a credit against the tax imposed by s.
666	199.0325 is allowed to a taxpayer in an amount equal to a like
667	tax lawfully imposed and paid by that taxpayer on the same
668	property in another state, territory of the United States, or
669	the District of Columbia when the other taxing authority is also
670	claiming situs under provisions similar or identical to those in
671	s. 199.1755(1) or any similar predecessor statute. For purposes
672	of this subsection, the term "like tax" means an ad valorem tax
673	on intangible personal property which is also subject to tax
674	under s. 199.0325. The credit may not exceed the tax imposed on
675	the property under s. 199.0325. Proof of entitlement to such a
676	credit must be made pursuant to rules and forms adopted by the
677	department.
678	(3)  The credits provided by this section apply
679	retroactively. However, notwithstanding the retroactivity of
680	these credit provisions, this section does not reopen a closed
681	period of nonclaim under s. 215.26 or any other statute or
682	extend the period of nonclaim under s. 215.26 or any other
683	statute.
684	199.1755  Taxable situs.-For purposes of the annual tax
685	imposed under this chapter:
686	(1)  Intangible personal property has a taxable situs in
687	this state when it is owned, managed, or controlled by any
688	person domiciled in this state on January 1 of the tax year.
689	Such intangibles shall be subject to annual taxation under this
690	chapter, unless the person who owns, manages, or controls them
691	is specifically exempt or unless the property is specifically
692	exempt. This provision applies regardless of where the evidence
693	of the intangible property is kept; where the intangible is
694	created, approved, or paid; or where business may be conducted
695	from which the intangible arises. The fact that a corporation in
696	this state owns the stock of an out-of-state corporation and
697	manages and controls such corporation from a location in this
698	state shall not operate to give a taxable situs in this state to
699	the intangibles owned by the out-of-state corporation, which
700	intangibles arise out of business transacted outside this state.
701	(a)  For the purposes of this chapter, the term "any person
702	domiciled in this state" means:
703	1.  Any natural person who is a legal resident of this
704	state;
705	2.  Any business, business trust as described in chapter
706	609, company, corporation, partnership, or other artificial
707	entity organized or created under the law of this state, except
708	a trust; or
709	3.  Any person, including a business trust, that has
710	established a commercial domicile in this state.
711	(b)  A business or other artificial entity acquires its
712	commercial domicile in this state when it maintains its chief or
713	principal office in this state where executive or management
714	functions are performed or where the course of business
715	operations is determined.
716	(c)  Notwithstanding the provisions of this subsection,
717	intangibles that are credit card receivables or charge card
718	receivables or related lines of credit or loans that would
719	otherwise be deemed to have taxable situs in this state solely
720	because they are owned, managed, or controlled by a bank or
721	savings association as defined in s. 220.62, or an affiliate or
722	subsidiary thereof, which is domiciled in this state shall be
723	treated as having a taxable situs in this state only when the
724	debt represented by the intangible is owed by a customer who is
725	domiciled in this state. As used in this paragraph, the terms
726	"credit card receivables" and "charge card receivables" do not
727	include trade or service receivables as defined in s. 864 of the
728	Internal Revenue Code of 1986, as amended.
729	(2)  Intangible personal property has a taxable situs in
730	this state when it is deemed to have a business situs in this
731	state and it is owned, managed, or controlled by a person
732	transacting business in this state, even though the owner may
733	claim a domicile elsewhere. This provision applies regardless of
734	where the evidence of the intangible is kept or where the
735	intangible is created, approved, or paid.
736	(a)  Intangibles shall be deemed to have a business situs
737	in this state when the intangibles receive the benefit and
738	protection of the laws and courts of this state and are derived
739	from, arise out of, or are issued in connection with the
740	business transacted in this state with a customer in this state.
741	For purposes of this paragraph:
742	1.  Business is transacted in this state when any
743	occupation, profession, or commercial activity, including
744	financing, leasing, selling, or servicing activities, is
745	regularly conducted with customers in this state from an office,
746	plant, home, or any other business location in this state.
747	2.  Business is transacted in this state when any
748	occupation, profession, or commercial activity, including, but
749	not limited to, financing, leasing, selling, or servicing
750	activities, is regularly conducted with customers in this state
751	by or through agents, employees, or representatives of any kind
752	in this state, whether or not such persons are vested with
753	discretionary authority.
754	(b)  Notwithstanding the provisions of this subsection:
755	1.a.  Intangible personal property that is credit card or
756	charge card receivables or related lines of credit or loans
757	shall be deemed to have business situs in this state only when
758	the debt represented by such intangible property is owed by a
759	customer who is domiciled in this state.
760	b.  The performance of ministerial functions relating to,
761	or the processing of, credit card or charge card receivables in
762	this state for the owner of such receivables is not sufficient
763	to support a finding that the owner is transacting business in
764	this state.
765	c.  The term "credit card or charge card receivables" does
766	not include trade or service receivables as defined in s. 864 of
767	the Internal Revenue Code of 1986, as amended.
768	2.  Intangible personal property owned by a real estate
769	mortgage investment conduit, a real estate investment trust, or
770	a regulated investment company, as those terms are defined in
771	the United States Internal Revenue Code of 1986, as amended,
772	shall not be deemed to have a taxable situs in this state unless
773	such entity has its legal or commercial domicile in this state.
774	3.  The ownership of any interest in a participation or
775	syndication loan or pool of loans, notes, or receivables is not
776	sufficient to support a finding that the owner of such interest
777	is transacting business in this state. For purposes of this
778	subparagraph, a participation or syndication loan is a loan in
779	which more than one lender is a creditor to a common borrower,
780	and a participation or syndication interest in a pool of loans,
781	notes, or receivables is an interest acquired from the
782	originator or initial creditor with respect to the loans, notes,
783	or receivables constituting the pool.
784	(c)  It is the intent of this subsection that a nonresident
785	may not transact business in this state without paying the same
786	tax which the state imposes on residents transacting the same
787	business.
788	199.1855  Property exempted from annual and nonrecurring
789	taxes.-
790	(1)  The following intangible personal property is exempt
791	from the annual and nonrecurring taxes imposed by this chapter:
792	(a)  Money.
793	(b)  Franchises.
794	(c)  Any interest as a partner in a partnership, general or
795	limited, other than any interest as a limited partner in a
796	limited partnership registered with the Securities and Exchange
797	Commission pursuant to the Securities Act of 1933, as amended.
798	(d)  Notes, bonds, and other obligations issued by the
799	State of Florida or its municipalities, counties, and other
800	taxing districts, or by the United States Government and its
801	agencies.
802	(e)  Intangible personal property held in trust pursuant to
803	any stock bonus, pension, or profit-sharing plan or any
804	individual retirement account which is qualified under s. 530,
805	s. 401, s. 408, or s. 408A of the United States Internal Revenue
806	Code, 26 U.S.C. ss. 530, 401, 408, and 408A, as amended.
807	(f)  Intangible personal property held under a retirement
808	plan of a Florida-based corporation exempt from federal income
809	tax under s. 501(c)(6) of the United States Internal Revenue
810	Code, 26 U.S.C., if the primary purpose of the corporation is to
811	support the promotion of professional sports and the retirement
812	plan is either a qualified plan under s. 457 of the United
813	States Internal Revenue Code or the contributions to the plan,
814	pursuant to a ruling by the United States Internal Revenue
815	Service, are not taxable to plan participants until actual
816	receipt or withdrawal by the participant.
817	(g)  Notes and other obligations, except bonds, to the
818	extent that such notes and obligations are secured by mortgage,
819	deed of trust, or other lien upon real property situated outside
820	the state.
821	(h)  The assets of a corporation registered under the
822	Investment Company Act of 1940, 15 U.S.C. s. 80a-1-52, as
823	amended.
824	(i)  All intangible personal property issued in or arising
825	out of any international banking transaction and owned by a
826	banking organization.
827	(j)  Units of a unit investment trust and shares or units
828	of, or other undivided interest in, a business trust organized
829	under an agreement, indenture, or declaration of trust and
830	registered under the Investment Company Act of 1940, as amended,
831	shall be exempt if at least 90 percent of the net asset value of
832	the portfolio of assets corresponding to such shares, units, or
833	undivided interests is invested in assets that are exempt from
834	the tax imposed by s. 199.0325.
835	(k)  Interests in real estate securitizations, including,
836	but not limited to, real estate mortgage investment conduits
837	(REMIC) and financial asset securitization trusts (FASITS),
838	which are directly or indirectly secured by or payable from
839	notes and obligations that are in turn secured solely by a
840	mortgage, deed of trust, or other lien upon real property
841	situated in or outside the state, including, but not limited to,
842	mortgage pools, participations, and derivatives.
843	(l)  All accounts receivable arising or acquired in the
844	ordinary course of a trade or business which are owned,
845	controlled, or managed by a taxpayer. This exemption does not
846	apply to accounts receivable that arise outside the taxpayer's
847	ordinary course of trade or business. For the purposes of this
848	chapter, the term "accounts receivable" means a business debt
849	that is owed by another to the taxpayer or the taxpayer's
850	assignee in the ordinary course of trade or business and is not
851	supported by negotiable instruments. Accounts receivable
852	include, but are not limited to, credit card receivables, charge
853	card receivables, credit receivables, margin receivables,
854	inventory or other floor plan financing, lease payments past
855	due, conditional sales contracts, retail installment sales
856	agreements, financing lease contracts, and a claim against a
857	debtor usually arising from sales or services rendered and which
858	is not necessarily due or past due. The examples specified in
859	this paragraph shall be deemed not to be supported by negotiable
860	instruments. The term "negotiable instrument" means a written
861	document that is legally capable of being transferred by
862	endorsement or delivery. The term "endorsement" means the act of
863	a payee or holder in writing his or her name on the back of an
864	instrument without further qualifying words other than "pay to
865	the order of" or "pay to" whereby the property is assigned and
866	transferred to another.
867	(m)  Stock options granted to employees by their employer
868	pursuant to an incentive plan, if the employees cannot transfer,
869	sell, or mortgage the options. Stock purchased by an employee
870	from an employer pursuant to an incentive plan shall be treated
871	as a nontaxable stock option if part of the purchase price of
872	the stock is nonrecourse debt secured by the stock and the stock
873	cannot be sold, transferred, or assigned by the employee until
874	the nonrecourse debt is discharged. Such stock becomes taxable
875	stock when it can be sold, transferred, or assigned by the
876	employee.
877	(n)1.  A leasehold estate in governmental property in which
878	the lessee is required to furnish space on the leasehold estate
879	for public use by governmental agencies at no charge to the
880	governmental agencies.
881	2.  The provisions of this exemption apply retroactively.
882	However, notwithstanding the retroactivity of the exemption, it
883	does not reopen a closed period of nonclaim under s. 215.26 or
884	any other law or extend the period of nonclaim under s. 215.26
885	or any other statute.
886	(2)(a)  Each natural person is entitled each year to an
887	exemption of the first $1 million of the value of property
888	otherwise subject to the annual tax. A husband and wife filing
889	jointly shall have an exemption of $2 million. Every taxpayer
890	that is not a natural person is entitled each year to an
891	exemption of the first $250,000 of the value of property
892	otherwise subject to the tax. Agents and fiduciaries, other than
893	guardians and custodians under a gifts-to-minors act, filing as
894	such may not claim this exemption on behalf of their principals
895	or beneficiaries; however, if the principal or beneficiary
896	returns the property held by the agent or fiduciary and is a
897	natural person, the principal or beneficiary may claim the
898	exemption. A taxpayer is not entitled to more than one exemption
899	under this subsection. This exemption shall not apply to
900	intangible personal property described in s. 199.0235(6)(d).
901	(b)  For purposes of this chapter, a resident shall be
902	deemed to have a beneficial interest in a trust if the resident
903	is the grantor of an irrevocable trust formed under any
904	arrangement, verbal or written, that provides for more than 25
905	per cent of the assets of the trust to be transferred within 10
906	years after the agreement is executed back to the grantor or to
907	the beneficiary other than as a result of the death of the
908	grantor. Assets in any trust designated as a Florida Intangible
909	Tax Exempt Trust or a similar arrangement are considered
910	beneficial interests.
911	(3)  Each natural person who is a widow or widower, or who
912	is blind or totally and permanently disabled, is entitled each
913	year to an additional exemption of $500 of property otherwise
914	subject to the annual or nonrecurring tax. This exemption is
915	afforded by s. 3, Art. VII of the State Constitution and is
916	available only to the extent not used against real property or
917	tangible personal property taxes.
918	(4)  Charitable trusts, 95 percent of the income of which
919	is paid to organizations exempt from federal income tax pursuant
920	to s. 501(c)3 of the Internal Revenue Code, are exempt from the
921	tax imposed in s. 199.0325.
922	(5)  Any organization defined in s. 220.62(1), (2), (3), or
923	(4) is exempt from the tax imposed by s. 199.0325.
924	(6)  Each liquor distributor that is domiciled in this
925	state, that is authorized to do business under the Beverage Law,
926	and that has paid the license taxes required by s. 565.03(2) is
927	exempt from paying tax on accounts receivable owned by the
928	taxpayer which are derived from, arise out of, or are issued in
929	connection with a sale of alcoholic beverages transacted in
930	another state with a customer in another state.
931	(7)  A national bank that has its principal place of
932	business in another state, processes credit card credit
933	applications in this state or performs customer service or
934	collection operations in this state, and is not a bank under 12
935	U.S.C. s. 1941(c)(2)(F), is exempt from paying tax on credit
936	card receivables owed to the bank by a credit card holder
937	domiciled outside this state.
938	(8)  Each insurer, as defined in s. 624.03, whether the
939	insurer is authorized or unauthorized as defined in s. 624.09,
940	is exempt from the tax imposed by s. 199.0325.
941	Section 2.  Effective January 1, 2011, paragraph (c) of
942	subsection (1) of section 28.35, Florida Statutes, is amended to
943	read:
944	28.35  Florida Clerks of Court Operations Corporation.-
945	(1)
946	(c)  For purposes of s. 199.183(1), the corporation shall
947	be considered a political subdivision of the state and shall be
948	exempt from the corporate income tax. The corporation is not
949	subject to the procurement provisions of chapter 287, and
950	policies and decisions of the corporation relating to incurring
951	debt, levying assessments, and the sale, issuance, continuation,
952	terms, and claims under corporation policies, and all services
953	relating thereto, are not subject to the provisions of chapter
954	120.
955	Section 3.  Effective January 1, 2011, paragraph (a) of
956	subsection (4) of section 192.0105, Florida Statutes, is amended
957	to read:
958	192.0105  Taxpayer rights.-There is created a Florida
959	Taxpayer's Bill of Rights for property taxes and assessments to
960	guarantee that the rights, privacy, and property of the
961	taxpayers of this state are adequately safeguarded and protected
962	during tax levy, assessment, collection, and enforcement
963	processes administered under the revenue laws of this state. The
964	Taxpayer's Bill of Rights compiles, in one document, brief but
965	comprehensive statements that summarize the rights and
966	obligations of the property appraisers, tax collectors, clerks
967	of the court, local governing boards, the Department of Revenue,
968	and taxpayers. Additional rights afforded to payors of taxes and
969	assessments imposed under the revenue laws of this state are
970	provided in s. 213.015. The rights afforded taxpayers to assure
971	that their privacy and property are safeguarded and protected
972	during tax levy, assessment, and collection are available only
973	insofar as they are implemented in other parts of the Florida
974	Statutes or rules of the Department of Revenue. The rights so
975	guaranteed to state taxpayers in the Florida Statutes and the
976	departmental rules include:
977	(4)  THE RIGHT TO CONFIDENTIALITY.-
978	(a)  The right to have information kept confidential,
979	including federal tax information, ad valorem tax returns,
980	social security numbers, all financial records produced by the
981	taxpayer, Form DR-219 returns for documentary stamp tax
982	information, and sworn statements of gross income, copies of
983	federal income tax returns for the prior year, wage and earnings
984	statements (W-2 forms), and other documents (see ss. 192.105,
985	193.074, 193.114(6)(5), 195.027(3) and (6), and 196.101(4)(c)).
986	Section 4.  Effective January 1, 2011, subsections (5) and
987	(6) of section 192.032, Florida Statutes, are renumbered as
988	subsections (6) and (7), respectively, and a new subsection (5)
989	is added to that section, to read:
990	192.032  Situs of property for assessment purposes.-All
991	property shall be assessed according to its situs as follows:
992	(5)  Intangible personal property, according to the rules
993	laid down in chapter 199.
994	Section 5.  Effective January 1, 2011, subsection (3) is
995	added to section 192.042, Florida Statutes, to read:
996	192.042  Date of assessment.-All property shall be assessed
997	according to its just value as follows:
998	(3)  Intangible personal property, according to the rules
999	laid down in chapter 199.
1000	Section 6.  Effective January 1, 2011, subsection (5) of
1001	section 192.091, Florida Statutes, is amended to read:
1002	192.091  Commissions of property appraisers and tax
1003	collectors.-
1004	(5)  The provisions of this section shall not apply to
1005	commissions on intangible property taxes or drainage district or
1006	drainage subdistrict taxes.
1007	Section 7.  Effective January 1, 2011, subsections (4),
1008	(5), and (6) of section 193.114, Florida Statutes, are
1009	renumbered as subsections (5), (6), and (7), respectively, and a
1010	new subsection (4) is added to that section to read:
1011	193.114  Preparation of assessment rolls.-
1012	(4)  The department shall adopt regulations and forms for
1013	the preparation of the intangible personal property tax roll to
1014	comply with chapter 199.
1015	Section 8.  Effective January 1, 2011, subsection (11) is
1016	added to section 196.015, Florida Statutes, to read:
1017	196.015  Permanent residency; factual determination by
1018	property appraiser.-Intention to establish a permanent residence
1019	in this state is a factual determination to be made, in the
1020	first instance, by the property appraiser. Although any one
1021	factor is not conclusive of the establishment or
1022	nonestablishment of permanent residence, the following are
1023	relevant factors that may be considered by the property
1024	appraiser in making his or her determination as to the intent of
1025	a person claiming a homestead exemption to establish a permanent
1026	residence in this state:
1027	(11)  The previous filing of Florida intangible tax returns
1028	by the applicant.
1029	Section 9.  Effective January 1, 2011, paragraph (b) of
1030	subsection (2) of section 196.199, Florida Statutes, is amended
1031	to read:
1032	196.199  Government property exemption.-
1033	(2)  Property owned by the following governmental units but
1034	used by nongovernmental lessees shall only be exempt from
1035	taxation under the following conditions:
1036	(b)  Except as provided in paragraph (c), the exemption
1037	provided by this subsection shall not apply to those portions of
1038	a leasehold or other interest defined by s. 199.0235(6)(d)
1039	199.023(1)(d), Florida Statutes 2005, subject to the provisions
1040	of subsection (7). Such leasehold or other interest shall be
1041	taxed only as intangible personal property pursuant to chapter
1042	199, Florida Statutes 2005, if rental payments are due in
1043	consideration of such leasehold or other interest. All
1044	applicable collection, administration, and enforcement
1045	provisions of chapter 199, Florida Statutes 2005, shall apply to
1046	taxation of such leaseholds. If no rental payments are due
1047	pursuant to the agreement creating such leasehold or other
1048	interest, the leasehold or other interest shall be taxed as real
1049	property. Nothing in this paragraph shall be deemed to exempt
1050	personal property, buildings, or other real property
1051	improvements owned by the lessee from ad valorem taxation.
1052	Section 10.  Effective January 1, 2011, subsection (2) of
1053	section 199.133, Florida Statutes, is amended to read:
1054	199.133  Levy of nonrecurring tax; relationship to annual
1055	tax.-
1056	(2)  The nonrecurring tax shall apply to a note, bond, or
1057	other obligation for payment of money only to the extent it is
1058	secured by mortgage, deed of trust, or other lien upon real
1059	property situated in this state. Where a note, bond, or other
1060	obligation is secured by personal property or by real property
1061	situated outside this state, as well as by mortgage, deed of
1062	trust, or other lien upon real property situated in this state,
1063	then the nonrecurring tax shall apply to that portion of the
1064	note, bond, or other obligation which bears the same ratio to
1065	the entire principal balance of the note, bond, or other
1066	obligation as the value of the real property situated in this
1067	state bears to the value of all of the security; however, if the
1068	security is solely made up of personal property and real
1069	property situated in this state, the taxpayer may elect to
1070	apportion the taxes based upon the value of the collateral, if
1071	any, to which the taxpayer by law or contract must look first
1072	for collection. In no event shall the portion of the note, bond,
1073	or other obligation which is subject to the nonrecurring tax
1074	exceed in value the value of the real property situated in this
1075	state which is the security. The portion of a note, bond, or
1076	other obligation that is not subject to the nonrecurring tax
1077	shall be subject to the annual tax unless otherwise exempt.
1078	Section 11.  Effective January 1, 2011, paragraph (a) of
1079	subsection (1) of section 199.183, Florida Statutes, is amended,
1080	and subsections (3) and (4) are added to that section, to read:
1081	199.183  Taxpayers exempt from annual and nonrecurring
1082	taxes.-
1083	(1)  Intangible personal property owned by this state or
1084	any of its political subdivisions or municipalities shall be
1085	exempt from taxation under this chapter. This exemption does not
1086	apply to:
1087	(a)  Any leasehold or other interest that is described in
1088	s. 199.0235(6)(d) 199.023(1)(d), Florida Statutes 2005; or
1089	(b)  Property related to the provision of two-way
1090	telecommunications services to the public for hire by the use of
1091	a telecommunications facility, as defined in s. 364.02(15), and
1092	for which a certificate is required under chapter 364, when the
1093	service is provided by any county, municipality, or other
1094	political subdivision of the state. Any immunity of any
1095	political subdivision of the state or other entity of local
1096	government from taxation of the property used to provide
1097	telecommunication services that is taxed as a result of this
1098	paragraph is hereby waived. However, intangible personal
1099	property related to the provision of telecommunications services
1100	provided by the operator of a public-use airport, as defined in
1101	s. 332.004, for the operator's provision of telecommunications
1102	services for the airport or its tenants, concessionaires, or
1103	licensees, and intangible personal property related to the
1104	provision of telecommunications services provided by a public
1105	hospital, are exempt from taxation under this chapter.
1106	(3)  Every national bank having its principal place of
1107	business in another state, but operating a credit card credit
1108	application processing, customer service, or collection
1109	operation in this state, that is not considered a bank under the
1110	provisions of 12 U.S.C. s. 1841(c)(2)(F), is exempt from paying
1111	the tax imposed by this chapter on credit card receivables owed
1112	to the bank by credit card holders domiciled outside this state.
1113	(4)  Intangible personal property that is owned, managed,
1114	or controlled by a trustee of a trust is exempt from annual tax
1115	under this chapter. This exemption does not exempt from annual
1116	tax a resident of this state who has a taxable beneficial
1117	interest, as defined in s. 199.0235(4), in a trust.
1118	Section 12.  Effective January 1, 2011, section 199.218,
1119	Florida Statutes, is amended to read:
1120	199.218  Books and records.-
1121	(1)  Each taxpayer shall retain all books and other records
1122	necessary to identify the taxpayer's intangible personal
1123	property and to determine any tax due under this chapter, as
1124	well as all books and other records otherwise required by rule
1125	of the department with respect to any such tax, until the
1126	department's power to make an assessment with respect to such
1127	tax has terminated under s. 95.091(3).
1128	(2)  Each broker subject to the provisions of s. 199.0625
1129	shall preserve all books and other records relating to the
1130	information reported under s. 199.0625 or otherwise required by
1131	rule of the department for a period of 3 years from the due date
1132	of the report.
1133	Section 13.  Effective January 1, 2011, paragraph (a) of
1134	subsection (1) and subsection (3) of section 199.232, Florida
1135	Statutes, are amended to read:
1136	199.232  Powers of department.-
1137	(1)(a)  The department may audit the books and records of
1138	any person to determine whether an annual tax or a nonrecurring
1139	tax has been properly paid.
1140	(3)  With or without an audit, the department may assess
1141	any tax deficiency resulting from nonpayment or underpayment of
1142	the tax, as well as any applicable interest and penalties. The
1143	department shall assess on the basis of the best information
1144	available to it, including estimates based on the best
1145	information available to it if the taxpayer fails to permit
1146	inspection of the taxpayer's records, fails to file an annual
1147	return, files a grossly incorrect return, or files a false and
1148	fraudulent return.
1149	Section 14.  Effective January 1, 2011, section 199.282,
1150	Florida Statutes, is amended to read:
1151	199.282  Penalties for violation of this chapter.-
1152	(1)  Any person willfully violating or failing to comply
1153	with any of the provisions of this chapter shall be guilty of a
1154	felony of the third degree, punishable as provided in s.
1155	775.082, s. 775.083, or s. 775.084.
1156	(2)  If any annual or nonrecurring tax is not paid by the
1157	statutory due date, then despite any extension granted under s.
1158	199.232(6), interest shall run on the unpaid balance from such
1159	due date until paid at the rate of 12 percent per year.
1160	(3)(a)  If any annual or nonrecurring tax is not paid by
1161	the due date, a delinquency penalty shall be charged. The
1162	delinquency penalty shall be 10 percent of the delinquent tax
1163	for each calendar month or portion thereof from the due date
1164	until paid, up to a limit of 50 percent of the total tax not
1165	timely paid.
1166	(b)  If any annual tax return required by this chapter is
1167	not filed by the due date, a penalty of 10 percent of the tax
1168	due with the return shall be charged for each calendar month or
1169	portion thereof during which the return remains unfiled, up to a
1170	limit of 50 percent of the total tax due.
1171
1172	For any penalty assessed under this subsection, the combined
1173	total for all penalties assessed under paragraphs (a) and (b)
1174	shall not exceed 10 percent per calendar month, up to a limit of
1175	50 percent of the total tax due.
1176	(4)  If an annual tax return is filed and property is
1177	either omitted from it or undervalued, then a specific penalty
1178	shall be charged. The specific penalty shall be 10 percent of
1179	the tax attributable to each omitted item or to each
1180	undervaluation. No delinquency or late filing penalty shall be
1181	charged with respect to any undervaluation.
1182	(5)(4)  No mortgage, deed of trust, or other lien upon real
1183	property situated in this state shall be enforceable in any
1184	Florida court, nor shall any written evidence of such mortgage,
1185	deed of trust, or other lien be recorded in any public record of
1186	the state, until the nonrecurring tax imposed by this chapter,
1187	including any taxes due on future advances, has been paid and
1188	the clerk of circuit court collecting the tax has noted its
1189	payment on the instrument or given other receipt for it.
1190	However, failure to pay the correct amount of tax or failure of
1191	the clerk to note payment of the tax on the instrument shall not
1192	affect the constructive notice given by recording of the
1193	instrument.
1194	(6)  Late reporting penalties shall be imposed as follows:
1195	(a)  A penalty of $100 upon any corporation that does not
1196	timely file a written notice required under s. 199.0575(2)(c).
1197	(b)  An initial penalty of $10 per customer position
1198	statement, plus an additional penalty of the greater of 1
1199	percent of the initial penalty or $50 for each month or portion
1200	of a month, from the date due until filing is made, upon any
1201	security dealer or investment adviser who does not timely file
1202	or fails to file the statements required by s. 199.0625(1). The
1203	submission of a position statement that does not comply with the
1204	department's specifications and instructions or the submission
1205	of an inaccurate position statement is not a timely filing. The
1206	department shall notify any security dealer or investment
1207	adviser who fails to timely file the required statements. The
1208	minimum penalty imposed upon a security dealer or investment
1209	adviser under this paragraph is $100.
1210	(7)(5)  Interest and penalties attributable to any tax
1211	shall be deemed assessed when the tax is assessed. Interest and
1212	penalties shall be assessed and collected by the department as
1213	provided in this chapter. The department may settle or
1214	compromise tax, interest, or penalties under the provisions of
1215	s. 213.21.
1216	(8)(6)  Any person who fails or refuses to file an annual
1217	return, or who fails or refuses to make records available for
1218	inspection, when requested to do so by the department is guilty
1219	of a misdemeanor of the first degree, punishable as provided in
1220	s. 775.082 or s. 775.083.
1221	(9)(7)  Any officer or director of a corporation who has
1222	administrative control over the filing of a return or payment of
1223	any tax due under this chapter and who willfully directs any
1224	employee of the corporation to fail to file the return or pay
1225	the tax due or to evade, defeat, or improperly account for the
1226	tax due, in addition to any other penalties provided by law,
1227	shall be liable for a penalty equal to the amount of tax not
1228	paid as required by this chapter. The filing of a protest based
1229	upon doubt as to liability for the tax shall not be deemed an
1230	attempt to evade or defeat the tax under this subsection. The
1231	penalty imposed hereunder shall be abated to the extent the tax
1232	is paid and may be compromised by the executive director of the
1233	department as provided in s. 213.21. An assessment of penalty
1234	made pursuant to this section shall be deemed prima facie
1235	correct in any judicial or quasi-judicial proceeding brought to
1236	collect this penalty.
1237	Section 15.  Effective January 1, 2011, section 199.292,
1238	Florida Statutes, is amended to read:
1239	199.292  Disposition of intangible personal property
1240	taxes.-All intangible personal property taxes collected pursuant
1241	to this chapter, except for revenues derived from the annual tax
1242	on a leasehold described in s. 199.0235(6)(d) 199.023(1)(d),
1243	Florida Statutes 2005, shall be deposited into the General
1244	Revenue Fund. Revenues derived from the annual tax on a
1245	leasehold described in s. 199.0235(6)(d) 199.023(1)(d), Florida
1246	Statutes 2005, shall be returned to the local school board for
1247	the county in which the property subject to the leasehold is
1248	situated.
1249	Section 16.  Effective January 1, 2011, subsection (3) of
1250	section 199.303, Florida Statutes, is amended to read:
1251	199.303  Declaration of legislative intent.-
1252	(3)  It is hereby declared to be the specific intent of the
1253	Legislature that all annual intangible personal property taxes
1254	imposed as provided by law for calendar years 2006 and prior
1255	shall remain in full force and effect during the period
1256	specified by s. 95.091 for the year in which the tax was due. It
1257	is further the intent of the Legislature that the department
1258	continue to assess and collect all taxes due to the state under
1259	such provisions for all periods available for assessment, as
1260	provided for the year in which tax was due by s. 95.091.
1261	Section 17.  Effective January 1, 2011, subsection (19) of
1262	section 212.02, Florida Statutes, is amended to read:
1263	212.02  Definitions.-The following terms and phrases when
1264	used in this chapter have the meanings ascribed to them in this
1265	section, except where the context clearly indicates a different
1266	meaning:
1267	(19)  "Tangible personal property" means and includes
1268	personal property which may be seen, weighed, measured, or
1269	touched or is in any manner perceptible to the senses, including
1270	electric power or energy, boats, motor vehicles and mobile homes
1271	as defined in s. 320.01(1) and (2), aircraft as defined in s.
1272	330.27, and all other types of vehicles. The term "tangible
1273	personal property" does not include stocks, bonds, notes,
1274	insurance, or other obligations or securities; intangibles as
1275	defined by the intangible tax law of the state; or pari-mutuel
1276	tickets sold or issued under the racing laws of the state.
1277	Section 18.  Effective January 1, 2011, paragraph (p) of
1278	subsection (8) and paragraph (a) of subsection (15) of section
1279	213.053, Florida Statutes, are amended to read:
1280	213.053  Confidentiality and information sharing.-
1281	(8)  Notwithstanding any other provision of this section,
1282	the department may provide:
1283	(p)  Information relative to ss. 199.10555, 220.1845, and
1284	376.30781 to the Department of Environmental Protection in the
1285	conduct of its official business.
1286
1287	Disclosure of information under this subsection shall be
1288	pursuant to a written agreement between the executive director
1289	and the agency. Such agencies, governmental or nongovernmental,
1290	shall be bound by the same requirements of confidentiality as
1291	the Department of Revenue. Breach of confidentiality is a
1292	misdemeanor of the first degree, punishable as provided by s.
1293	775.082 or s. 775.083.
1294	(15)(a)  Notwithstanding any other provision of this
1295	section, the department shall, subject to the safeguards
1296	specified in paragraph (c), disclose to the Division of
1297	Corporations of the Department of State the name, address,
1298	federal employer identification number, and duration of tax
1299	filings with this state of all corporate or partnership entities
1300	which are not on file or have a dissolved status with the
1301	Division of Corporations and which have filed tax returns
1302	pursuant to chapter 199 or chapter 220.
1303	Section 19.  Effective January 1, 2011, section 213.054,
1304	Florida Statutes, is amended to read:
1305	213.054  Persons claiming tax exemptions or deductions;
1306	annual report.-The Department of Revenue shall be responsible
1307	for monitoring the utilization of tax exemptions and tax
1308	deductions authorized pursuant to chapter 81-179, Laws of
1309	Florida. On or before September 1 of each year, the department
1310	shall report to the Chief Financial Officer the names and
1311	addresses of all persons who have claimed an exemption pursuant
1312	to s. 199.1855(1)(i) or a deduction pursuant to s. 220.63(5).
1313	Section 20.  Effective January 1, 2011, section 213.27,
1314	Florida Statutes, is amended to read:
1315	213.27  Contracts with debt collection agencies and certain
1316	vendors.-
1317	(1)  The Department of Revenue may, for the purpose of
1318	collecting any delinquent taxes due from a taxpayer, including
1319	taxes for which a bill or notice has been generated, contract
1320	with any debt collection agency or attorney doing business
1321	within or without this state for the collection of such
1322	delinquent taxes, including penalties and interest thereon. The
1323	department may also share confidential information pursuant to
1324	the contract necessary for the collection of delinquent taxes
1325	and taxes for which a billing or notice has been generated.
1326	Contracts will be made pursuant to chapter 287. The taxpayer
1327	must be notified by mail by the department, its employees, or
1328	its authorized representative at least 30 days prior to
1329	commencing any litigation to recover any delinquent taxes. The
1330	taxpayer must be notified by mail by the department at least 30
1331	days prior to the initial assignment by the department of the
1332	taxpayer's account for the collection of any taxes by the debt
1333	collection agency.
1334	(2)  The department may enter into contracts with any
1335	individual or business for the purpose of identifying intangible
1336	personal property tax liability. Contracts may provide for the
1337	identification of assets subject to the tax on intangible
1338	personal property, the determination of value of such property,
1339	the requirement for filing a tax return and the collection of
1340	taxes due, including applicable penalties and interest thereon.
1341	The department may share confidential information pursuant to
1342	the contract necessary for the identification of taxable
1343	intangible personal property. Contracts shall be made pursuant
1344	to chapter 287. The taxpayer must be notified by mail by the
1345	department at least 30 days prior to the department assigning
1346	identification of intangible personal property to an individual
1347	or business.
1348	(3)(2)  Any contract may provide, in the discretion of the
1349	executive director of the Department of Revenue, the manner in
1350	which the compensation for such services will be paid. Under
1351	standards established by the department, such compensation shall
1352	be added to the amount of the tax and collected as a part
1353	thereof by the agency or deducted from the amount of tax,
1354	penalty, and interest actually collected.
1355	(4)(3)  All funds collected under the terms of the
1356	contract, less the fees provided in the contract, shall be
1357	remitted to the department within 30 days from the date of
1358	collection from a taxpayer. Forms to be used for such purpose
1359	shall be prescribed by the department.
1360	(5)(4)  The department shall require a bond from the debt
1361	collection agency or the individual or business contracted with
1362	under subsection (2) not in excess of $100,000 guaranteeing
1363	compliance with the terms of the contract. However, a bond of
1364	$10,000 is required from a debt collection agency if the agency
1365	does not actually collect and remit delinquent funds to the
1366	department.
1367	(6)(5)  The department may, for the purpose of ascertaining
1368	the amount of or collecting any taxes due from a person doing
1369	mail order business in this state, contract with any auditing
1370	agency doing business within or without this state for the
1371	purpose of conducting an audit of such mail order business;
1372	however, such audit agency may not conduct an audit on behalf of
1373	the department of any person domiciled in this state, person
1374	registered for sales and use tax purposes in this state, or
1375	corporation filing a Florida corporate tax return, if any such
1376	person or corporation objects to such audit in writing to the
1377	department and the auditing agency. The department shall notify
1378	the taxpayer by mail at least 30 days before the department
1379	assigns the collection of such taxes.
1380	(7)(6)  Confidential information shared by the department
1381	with debt collection or auditing agencies or individuals or
1382	businesses with which the department has contracted under
1383	subsection (2) is exempt from the provisions of s. 119.07(1),
1384	and debt collection or auditing agencies and individuals or
1385	businesses with which the department has contracted under
1386	subsection (2) shall be bound by the same requirements of
1387	confidentiality as the Department of Revenue. Breach of
1388	confidentiality is a misdemeanor of the first degree, punishable
1389	as provided by ss. 775.082 and 775.083.
1390	(8)(7)(a)  The executive director of the department may
1391	enter into contracts with private vendors to develop and
1392	implement systems to enhance tax collections where compensation
1393	to the vendors is funded through increased tax collections. The
1394	amount of compensation paid to a vendor shall be based on a
1395	percentage of increased tax collections attributable to the
1396	system after all administrative and judicial appeals are
1397	exhausted, and the total amount of compensation paid to a vendor
1398	shall not exceed the maximum amount stated in the contract.
1399	(b)  A person acting on behalf of the department under a
1400	contract authorized by this subsection does not exercise any of
1401	the powers of the department, except that the person is an agent
1402	of the department for the purposes of developing and
1403	implementing a system to enhance tax collection.
1404	(c)  Disclosure of information under this subsection shall
1405	be pursuant to a written agreement between the executive
1406	director and the private vendors. The vendors shall be bound by
1407	the same requirements of confidentiality as the department.
1408	Breach of confidentiality is a misdemeanor of the first degree,
1409	punishable as provided in s. 775.082 or s. 775.083.
1410	Section 21.  Effective January 1, 2011, paragraph (b) of
1411	subsection (4) of section 650.05, Florida Statutes, is amended
1412	to read:
1413	650.05  Plans for coverage of employees of political
1414	subdivisions.-
1415	(4)
1416	(b)  The grants-in-aid and other revenue referred to in
1417	paragraph (a) specifically include, but are not limited to,
1418	minimum foundation program grants to public school districts and
1419	community colleges; gasoline, motor fuel, intangible, cigarette,
1420	racing, and insurance premium taxes distributed to political
1421	subdivisions; and amounts specifically appropriated as grants-
1422	in-aid for mental health, mental retardation, and mosquito
1423	control programs.
1424	Section 22.  Effective January 1, 2011, subsection (5) of
1425	section 733.702, Florida Statutes, is renumbered as subsection
1426	(6), and a new subsection (5) is added to that section to read:
1427	733.702  Limitations on presentation of claims.-
1428	(5)  The Department of Revenue may file a claim against the
1429	estate of a decedent for taxes due under chapter 199 after the
1430	expiration of the time for filing claims provided in subsection
1431	(1), if the department files its claim within 30 days after the
1432	service of the inventory. Upon filing of the estate tax return
1433	with the department as provided in s. 198.13, or to the extent
1434	the inventory or estate tax return is amended or supplemented,
1435	the department has the right to file a claim or to amend its
1436	previously filed claim within 30 days after service of the
1437	estate tax return, or an amended or supplemented inventory or
1438	filing of an amended or supplemental estate tax return, as to
1439	the additional information disclosed.
1440	Section 23.  Effective upon this act becoming a law, the
1441	executive director of the Department of Revenue may adopt
1442	emergency rules under ss. 120.536(1) and 120.54, Florida
1443	Statutes, to implement chapter 199, Florida Statutes, and all
1444	conditions are deemed met for the adoption of such rules.
1445	Notwithstanding any other provision of law, such emergency rules
1446	shall remain effective for 6 months after the date of adoption
1447	and may be renewed during the pendency of procedures to adopt
1448	rules addressing the subject of the emergency rules.
1449	Section 24.  Legislative findings and intent.-The
1450	Legislature finds that the separate accounting system used to
1451	measure the income of multistate and multinational corporations
1452	for tax purposes often places corporations in this state at a
1453	competitive disadvantage. Moreover, corporate business is
1454	increasingly conducted through groups of commonly owned
1455	corporations. Therefore, the Legislature intends to more
1456	accurately measure the business activities of corporations by
1457	adopting a combined system of income tax reporting.
1458	Section 25.  Paragraph (z) of subsection (1) of section
1459	220.03, Florida Statutes, is amended, and paragraphs (gg) and
1460	(hh) are added to that subsection, to read:
1461	220.03  Definitions.-
1462	(1)  SPECIFIC TERMS.-When used in this code, and when not
1463	otherwise distinctly expressed or manifestly incompatible with
1464	the intent thereof, the following terms shall have the following
1465	meanings:
1466	(z)  "Taxpayer" means any corporation subject to the tax
1467	imposed by this code, and includes all corporations that are
1468	members of a water's edge group for which a consolidated return
1469	is filed under s. 220.131. However, "taxpayer" does not include
1470	a corporation having no individuals (including individuals
1471	employed by an affiliate) receiving compensation in this state
1472	as defined in s. 220.15 when the only property owned or leased
1473	by said corporation (including an affiliate) in this state is
1474	located at the premises of a printer with which it has
1475	contracted for printing, if such property consists of the final
1476	printed product, property which becomes a part of the final
1477	printed product, or property from which the printed product is
1478	produced.
1479	(gg)  "Tax haven" means a jurisdiction that, for a
1480	particular tax year:
1481	1.  Is identified by the Organization for Economic Co-
1482	operation and Development as a tax haven or as having a harmful
1483	preferential tax regime; or
1484	2.a.  Is a jurisdiction that does not impose or imposes
1485	only a nominal, effective tax on relevant income;
1486	b.  Has laws or practices that prevent the effective
1487	exchange of information for tax purposes with other governments
1488	regarding taxpayers who are subject to, or benefiting from, the
1489	tax regime;
1490	c.  Lacks transparency;
1491	d.  Facilitates the establishment of foreign-owned entities
1492	without the need for a local substantive presence or prohibits
1493	these entities from having any commercial impact on the local
1494	economy;
1495	e.  Explicitly or implicitly excludes the jurisdiction's
1496	resident taxpayers from taking advantage of the tax regime's
1497	benefits or prohibits enterprises that benefit from the regime
1498	from operating in the jurisdiction's domestic market; or
1499	f.  Has created a tax regime that is favorable for tax
1500	avoidance, based upon an overall assessment of relevant factors,
1501	including whether the jurisdiction has a significant untaxed
1502	offshore financial or other services sector relative to its
1503	overall economy.
1504
1505	For purposes of this paragraph, a tax regime lacks
1506	transparency if the details of legislative, legal, or
1507	administrative requirements are not open to public scrutiny and
1508	apparent, or are not consistently applied among similarly
1509	situated taxpayers. As used in this paragraph, the term "tax
1510	regime" means a set or system of rules, laws, regulations, or
1511	practices by which taxes are imposed on any person, corporation,
1512	or entity, or on any income, property, incident, indicia, or
1513	activity pursuant to government authority.
1514	(hh)  "Water's edge group" means a group of corporations
1515	related through common ownership whose business activities are
1516	integrated with, dependent upon, or contribute to a flow of
1517	value among members of the group.
1518	Section 26.  Subsection (1) of section 220.13, Florida
1519	Statutes, is amended to read:
1520	220.13  "Adjusted federal income" defined.-
1521	(1)  The term "adjusted federal income" means an amount
1522	equal to the taxpayer's taxable income as defined in subsection
1523	(2), or such taxable income of more than one taxpayer as
1524	provided in s. 220.1363 s. 220.131, for the taxable year,
1525	adjusted as follows:
1526	(a)  Additions.-There shall be added to such taxable
1527	income:
1528	1.  The amount of any tax upon or measured by income,
1529	excluding taxes based on gross receipts or revenues, paid or
1530	accrued as a liability to the District of Columbia or any state
1531	of the United States which is deductible from gross income in
1532	the computation of taxable income for the taxable year.
1533	2.  The amount of interest which is excluded from taxable
1534	income under s. 103(a) of the Internal Revenue Code or any other
1535	federal law, less the associated expenses disallowed in the
1536	computation of taxable income under s. 265 of the Internal
1537	Revenue Code or any other law, excluding 60 percent of any
1538	amounts included in alternative minimum taxable income, as
1539	defined in s. 55(b)(2) of the Internal Revenue Code, if the
1540	taxpayer pays tax under s. 220.11(3).
1541	3.  In the case of a regulated investment company or real
1542	estate investment trust, an amount equal to the excess of the
1543	net long-term capital gain for the taxable year over the amount
1544	of the capital gain dividends attributable to the taxable year.
1545	4.  That portion of the wages or salaries paid or incurred
1546	for the taxable year which is equal to the amount of the credit
1547	allowable for the taxable year under s. 220.181. This
1548	subparagraph shall expire on the date specified in s. 290.016
1549	for the expiration of the Florida Enterprise Zone Act.
1550	5.  That portion of the ad valorem school taxes paid or
1551	incurred for the taxable year which is equal to the amount of
1552	the credit allowable for the taxable year under s. 220.182. This
1553	subparagraph shall expire on the date specified in s. 290.016
1554	for the expiration of the Florida Enterprise Zone Act.
1555	6.  The amount of emergency excise tax paid or accrued as a
1556	liability to this state under chapter 221 which tax is
1557	deductible from gross income in the computation of taxable
1558	income for the taxable year.
1559	7.  That portion of assessments to fund a guaranty
1560	association incurred for the taxable year which is equal to the
1561	amount of the credit allowable for the taxable year.
1562	8.  In the case of a nonprofit corporation which holds a
1563	pari-mutuel permit and which is exempt from federal income tax
1564	as a farmers' cooperative, an amount equal to the excess of the
1565	gross income attributable to the pari-mutuel operations over the
1566	attributable expenses for the taxable year.
1567	9.  The amount taken as a credit for the taxable year under
1568	s. 220.1895.
1569	10.  Up to nine percent of the eligible basis of any
1570	designated project which is equal to the credit allowable for
1571	the taxable year under s. 220.185.
1572	11.  The amount taken as a credit for the taxable year
1573	under s. 220.187.
1574	12.  The amount taken as a credit for the taxable year
1575	under s. 220.192.
1576	13.  The amount taken as a credit for the taxable year
1577	under s. 220.193.
1578	14.  Any portion of a qualified investment, as defined in
1579	s. 288.9913, which is claimed as a deduction by the taxpayer and
1580	taken as a credit against income tax pursuant to s. 288.9916.
1581	(b)  Subtractions.-
1582	1.  There shall be subtracted from such taxable income:
1583	a.  The net operating loss deduction allowable for federal
1584	income tax purposes under s. 172 of the Internal Revenue Code
1585	for the taxable year,
1586	b.  The net capital loss allowable for federal income tax
1587	purposes under s. 1212 of the Internal Revenue Code for the
1588	taxable year,
1589	c.  The excess charitable contribution deduction allowable
1590	for federal income tax purposes under s. 170(d)(2) of the
1591	Internal Revenue Code for the taxable year, and
1592	d.  The excess contributions deductions allowable for
1593	federal income tax purposes under s. 404 of the Internal Revenue
1594	Code for the taxable year.
1595
1596	However, a net operating loss and a capital loss shall never be
1597	carried back as a deduction to a prior taxable year, but all
1598	deductions attributable to such losses shall be deemed net
1599	operating loss carryovers and capital loss carryovers,
1600	respectively, and treated in the same manner, to the same
1601	extent, and for the same time periods as are prescribed for such
1602	carryovers in ss. 172 and 1212, respectively, of the Internal
1603	Revenue Code. A deduction is not allowed for net operating
1604	losses, net capital losses, or excess contribution deductions
1605	under 26 U.S.C. ss. 170(d)(2), 172, 1212, and 404 for a member
1606	of a water's edge group that is not a United States member.
1607	Carryovers of net operating losses, net capital losses, or
1608	excess contribution deductions under 26 U.S.C. ss. 170(d)(2),
1609	172, 1212, and 404 may be subtracted only by the member of the
1610	water's edge group that generates a carryover.
1611	2.  There shall be subtracted from such taxable income any
1612	amount to the extent included therein the following:
1613	a.  Dividends treated as received from sources without the
1614	United States, as determined under s. 862 of the Internal
1615	Revenue Code.
1616	b.  All amounts included in taxable income under s. 78 or
1617	s. 951 of the Internal Revenue Code.
1618
1619	However, as to any amount subtracted under this subparagraph,
1620	there shall be added to such taxable income all expenses
1621	deducted on the taxpayer's return for the taxable year which are
1622	attributable, directly or indirectly, to such subtracted amount.
1623	Further, no amount shall be subtracted with respect to dividends
1624	paid or deemed paid by a Domestic International Sales
1625	Corporation.
1626	3.  Amounts received by a member of a water's edge group as
1627	dividends paid by another member of the water's edge group shall
1628	be subtracted from the taxable income to the extent that the
1629	dividends are included in the taxable income.
1630	4.3.  In computing "adjusted federal income" for taxable
1631	years beginning after December 31, 1976, there shall be allowed
1632	as a deduction the amount of wages and salaries paid or incurred
1633	within this state for the taxable year for which no deduction is
1634	allowed pursuant to s. 280C(a) of the Internal Revenue Code
1635	(relating to credit for employment of certain new employees).
1636	5.4.  There shall be subtracted from such taxable income
1637	any amount of nonbusiness income included therein.
1638	6.5.  There shall be subtracted any amount of taxes of
1639	foreign countries allowable as credits for taxable years
1640	beginning on or after September 1, 1985, under s. 901 of the
1641	Internal Revenue Code to any corporation which derived less than
1642	20 percent of its gross income or loss for its taxable year
1643	ended in 1984 from sources within the United States, as
1644	described in s. 861(a)(2)(A) of the Internal Revenue Code, not
1645	including credits allowed under ss. 902 and 960 of the Internal
1646	Revenue Code, withholding taxes on dividends within the meaning
1647	of sub-subparagraph 2.a., and withholding taxes on royalties,
1648	interest, technical service fees, and capital gains.
1649	7.6.  Notwithstanding any other provision of this code,
1650	except with respect to amounts subtracted pursuant to
1651	subparagraphs 1. and 4. 3., any increment of any apportionment
1652	factor which is directly related to an increment of gross
1653	receipts or income which is deducted, subtracted, or otherwise
1654	excluded in determining adjusted federal income shall be
1655	excluded from both the numerator and denominator of such
1656	apportionment factor. Further, all valuations made for
1657	apportionment factor purposes shall be made on a basis
1658	consistent with the taxpayer's method of accounting for federal
1659	income tax purposes.
1660	(c)  Installment sales occurring after October 19, 1980.-
1661	1.  In the case of any disposition made after October 19,
1662	1980, the income from an installment sale shall be taken into
1663	account for the purposes of this code in the same manner that
1664	such income is taken into account for federal income tax
1665	purposes.
1666	2.  Any taxpayer who regularly sells or otherwise disposes
1667	of personal property on the installment plan and reports the
1668	income therefrom on the installment method for federal income
1669	tax purposes under s. 453(a) of the Internal Revenue Code shall
1670	report such income in the same manner under this code.
1671	(d)  Nonallowable deductions.-A deduction for net operating
1672	losses, net capital losses, or excess contributions deductions
1673	under ss. 170(d)(2), 172, 1212, and 404 of the Internal Revenue
1674	Code which has been allowed in a prior taxable year for Florida
1675	tax purposes shall not be allowed for Florida tax purposes,
1676	notwithstanding the fact that such deduction has not been fully
1677	utilized for federal tax purposes.
1678	(e)  Adjustments related to the Federal Economic Stimulus
1679	Act of 2008 and the American Recovery and Reinvestment Act of
1680	2009.-Taxpayers shall be required to make the adjustments
1681	prescribed in this paragraph for Florida tax purposes in
1682	relation to certain tax benefits received pursuant to the
1683	Economic Stimulus Act of 2008 and the American Recovery and
1684	Reinvestment Act of 2009.
1685	1.  There shall be added to such taxable income an amount
1686	equal to 100 percent of any amount deducted for federal income
1687	tax purposes as bonus depreciation for the taxable year pursuant
1688	to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
1689	amended by s. 103 of Pub. L. No. 110-185 and s. 1201 of Pub. L.
1690	No. 111-5, for property placed in service after December 31,
1691	2007, and before January 1, 2010. For the taxable year and for
1692	each of the 6 subsequent taxable years, there shall be
1693	subtracted from such taxable income an amount equal to one-
1694	seventh of the amount by which taxable income was increased
1695	pursuant to this subparagraph, notwithstanding any sale or other
1696	disposition of the property that is the subject of the
1697	adjustments and regardless of whether such property remains in
1698	service in the hands of the taxpayer.
1699	2.  There shall be added to such taxable income an amount
1700	equal to 100 percent of any amount in excess of $128,000
1701	deducted for federal income tax purposes for the taxable year
1702	pursuant to s. 179 of the Internal Revenue Code of 1986, as
1703	amended by s. 102 of Pub. L. No. 110-185 and s. 1202 of Pub. L.
1704	No. 111-5, for taxable years beginning after December 31, 2007,
1705	and before January 1, 2010. For the taxable year and for each of
1706	the 6 subsequent taxable years, there shall be subtracted from
1707	such taxable income one-seventh of the amount by which taxable
1708	income was increased pursuant to this subparagraph,
1709	notwithstanding any sale or other disposition of the property
1710	that is the subject of the adjustments and regardless of whether
1711	such property remains in service in the hands of the taxpayer.
1712	3.  There shall be added to such taxable income an amount
1713	equal to the amount of deferred income not included in such
1714	taxable income pursuant to s. 108(i)(1) of the Internal Revenue
1715	Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
1716	shall be subtracted from such taxable income an amount equal to
1717	the amount of deferred income included in such taxable income
1718	pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
1719	as amended by s. 1231 of Pub. L. No. 111-5.
1720	4.  Subtractions available under this paragraph may be
1721	transferred to the surviving or acquiring entity following a
1722	merger or acquisition and used in the same manner and with the
1723	same limitations as specified by this paragraph.
1724	5.  The additions and subtractions specified in this
1725	paragraph are intended to adjust taxable income for Florida tax
1726	purposes, and, notwithstanding any other provision of this code,
1727	such additions and subtractions shall be permitted to change a
1728	taxpayer's net operating loss for Florida tax purposes.
1729	Section 27.  Section 220.136, Florida Statutes, is created
1730	to read:
1731	220.136  Determination of the members of a water's edge
1732	group.-
1733	(1)  MEMBERSHIP RULES.-
1734	(a)  A corporation having 50 percent or more of its
1735	outstanding voting stock directly or indirectly owned or
1736	controlled by a water's edge group is presumed to be a member of
1737	the group. A corporation having less than 50 percent of its
1738	outstanding voting stock directly or indirectly controlled by a
1739	water's edge group is a member of the group if the businesses
1740	activities of the corporation show that the corporation is a
1741	member of the group. All of the income of a corporation that is
1742	a member of a water's edge group is presumed to be unitary.
1743	(b)  A corporation that conducts business outside the
1744	United States is not a member of a water's edge group if 80
1745	percent or more of the corporation's property and payroll, as
1746	determined by the apportionment factors described in ss. 220.15
1747	and 220.1363, may be assigned to locations outside the United
1748	States. However, such corporations that are incorporated in a
1749	tax haven may be a member of a water's edge group pursuant to
1750	paragraph (a). This paragraph does not exempt a corporation that
1751	is not a member of a water's edge group from the provisions of
1752	this chapter.
1753	(2)  MEMBERSHIP EVALUATION CRITERIA.-
1754	(a)  The attribution rules of 26 U.S.C. 318 shall be used
1755	to determine whether voting stock is owned indirectly.
1756	(b)  As used in this paragraph, the term "United States"
1757	means the 50 states, the District of Columbia, and Puerto Rico.
1758	(c)  The apportionment factors described in ss. 220.15 and
1759	220.1363 shall be used to determine whether a special industry
1760	corporation has engaged in a sufficient amount of activities
1761	outside the United States to exclude it from treatment as a
1762	member of a water's edge group.
1763	Section 28.  Section 220.1363, Florida Statutes, is created
1764	to read:
1765	220.1363  Water's edge groups; special requirements.-
1766	(1)  All members of a water's edge group must use the
1767	water's edge reporting method. Under the water's edge reporting
1768	method:
1769	(a)  Adjusted federal income for purposes of s. 220.12
1770	means the sum of adjusted federal income for all members of the
1771	group as determined for a concurrent tax year.
1772	(b)  The numerators and denominators of the apportionment
1773	factors shall be calculated for all members of the group
1774	combined.
1775	(c)  Intercompany sales transactions between members of the
1776	group are not included in the numerator or denominator of the
1777	sales factor pursuant to ss. 220.15 and 220.151, regardless of
1778	whether indicia of a sale exist. As used in this subsection, the
1779	term "sale" includes, but is not limited to, loans, payments for
1780	the use of intangibles, dividends, and management fees.
1781	(d)  For sales of intangibles, including, but not limited
1782	to, accounts receivable, notes, bonds, and stock, which are made
1783	to entities outside of the group, only the net proceeds are
1784	included in the numerator and denominator of the sales factor.
1785	(e)  Sales that are not allocated or apportioned to any
1786	taxing jurisdiction, otherwise known as "nowhere sales," may not
1787	be included in the numerator or denominator of the sales factor.
1788	(f)  The income attributable to the activities in this
1789	state of a corporation that is exempt from taxation under Pub.
1790	L. No. 86-272 is excluded from the apportionment factor
1791	numerators in the calculation of corporate income tax even if
1792	another member of the water's edge group has nexus with this
1793	state and is subject to tax.
1794	(g)  For purposes of this section, the term "water's edge
1795	reporting method" is a method to determine the taxable business
1796	profits of a group of entities conducting a unitary business.
1797	Under this method, the net income of the entities must be added
1798	together along with the additions and subtractions under s.
1799	220.13 and apportioned to this state as a single taxpayer under
1800	s. 220.15 and 220.151. However, each special industry member
1801	included in a water's edge group return, which would otherwise
1802	be permitted to use a special method of apportionment under s.
1803	220.151, shall convert its single-factor apportionment to a
1804	three-factor apportionment of property, payroll, and sales. The
1805	special industry member shall calculate the denominator of its
1806	property, payroll, and sales factors in the same manner as those
1807	denominators are calculated by members that are not a special
1808	industry member. The numerator of its sales, property, and
1809	payroll factors is the product of the denominator of each factor
1810	multiplied by the premiums or revenue-miles-factor ratio
1811	otherwise applicable under s. 220.151.
1812	(2)(a)  A single water's edge group return must be filed in
1813	the name and federal employer identification number of the
1814	parent corporation if the parent is a member of the group and
1815	has nexus with this state. If the group does not have a parent
1816	corporation, if the parent corporation is not a member of the
1817	group, or if the parent corporation does not have nexus with
1818	this state, the members of the group must choose a member
1819	subject to the Florida corporate income tax to file the return.
1820	The members of the group may not choose another member to file a
1821	corporate income tax return in subsequent years unless the
1822	filing member does not maintain nexus with this state or remain
1823	a member of that group. The return must be signed by an
1824	authorized officer of the filing member as the agent for the
1825	group.
1826	(b)  If members of a water's edge group have different tax
1827	years, the tax year of a majority of the members of the group is
1828	the tax year of the group. If the tax years of a majority of the
1829	members of a group do not correspond, the tax year of the member
1830	that must file the return for the group is the tax year of the
1831	group.
1832	(c)1.  A member of a water's edge group having a tax year
1833	that does not correspond to the tax year of the group shall
1834	determine its income for inclusion on the tax return for the
1835	group. The member shall use:
1836	a.  The precise amount of taxable income received during
1837	the months corresponding to the tax year of the group, if the
1838	precise amount can be readily determined from the member's books
1839	and records.
1840	b.  The taxable income of the member converted to conform
1841	to the tax year of the group on the basis of the number of
1842	months falling within the tax year of the group. For example, if
1843	the tax year of the water's edge group is a calendar year and a
1844	member operates on a fiscal year ending on April 30, the income
1845	of the member shall include 8/12 of the income from the current
1846	tax year and 4/12 of the income from the preceding tax year.
1847	This method to determine the income of a member may be used only
1848	if the return can be timely filed after the end of the tax year
1849	of the group.
1850	c.  The taxable income of the member during its tax year
1851	that ends within the tax year of the group.
1852	2.  The method of determining the income of a member of a
1853	group whose tax year does not correspond to the tax year of the
1854	group may not change as long as the member remains a member of
1855	the group. The apportionment factors for the member must be
1856	applied to the income of the member for the tax year of the
1857	group.
1858	(3)(a)  A water's edge group return shall include a
1859	computational schedule that:
1860	1.  Combines the federal income of all members of the
1861	water's edge group;
1862	2.  Shows all intercompany eliminations;
1863	3.  Shows Florida additions and subtractions under s.
1864	220.13; and
1865	4.  Shows the calculation of the combined apportionment
1866	factors.
1867	(b)  A water's edge group shall also file a domestic
1868	disclosure spreadsheet in addition to its return. The
1869	spreadsheet shall fully disclose:
1870	1.  The income reported to each state.
1871	2.  The state tax liability.
1872	3.  The method used for apportioning or allocating income
1873	to the various states.
1874	4.  Other information required by the department by rule in
1875	order to determine the proper amount of tax due to each state
1876	and to identify the water's edge group.
1877	(4)  The department may adopt rules and forms to administer
1878	this section. The Legislature intends to grant the department
1879	extensive authority to adopt rules and forms describing and
1880	defining principles for determining the existence of a water's
1881	edge business, definitions of common control, methods of
1882	reporting, and related forms, principles, and other definitions.
1883	Section 29.  Section 220.14, Florida Statutes, is amended
1884	to read:
1885	220.14  Exemption.-
1886	(1)  In computing a taxpayer's liability for tax under this
1887	code, there shall be exempt from the tax $5,000 of net income as
1888	defined in s. 220.12 or such lesser amount as will, without
1889	increasing the taxpayer's federal income tax liability, provide
1890	the state with an amount under this code which is equal to the
1891	maximum federal income tax credit which may be available from
1892	time to time under federal law.
1893	(2)  In the case of a taxable year for a period of less
1894	than 12 months, the exemption allowed by this section shall be
1895	prorated on the basis of the number of days in such year to 365,
1896	or in the case of a leap year, to 366.
1897	(3)  Only one exemption shall be allowed to taxpayers
1898	filing a water's edge group a consolidated return under this
1899	code.
1900	(4)  Notwithstanding any other provision of this code, not
1901	more than one exemption under this section may be allowed to the
1902	Florida members of a controlled group of corporations, as
1903	defined in s. 1563 of the Internal Revenue Code with respect to
1904	taxable years ending on or after December 31, 1970, filing
1905	separate returns under this code. The exemption described in
1906	this section shall be divided equally among such Florida members
1907	of the group, unless all of such members consent, at such time
1908	and in such manner as the department shall by regulation
1909	prescribe, to an apportionment plan providing for an unequal
1910	allocation of such exemption.
1911	Section 30.  Subsection (5) of section 220.15, Florida
1912	Statutes, is amended to read:
1913	220.15  Apportionment of adjusted federal income.-
1914	(5)  The sales factor is a fraction the numerator of which
1915	is the total sales of the taxpayer in this state during the
1916	taxable year or period and the denominator of which is the total
1917	sales of the taxpayer everywhere during the taxable year or
1918	period.
1919	(a)  As used in this subsection, the term "sales" means all
1920	gross receipts of the taxpayer except interest, dividends,
1921	rents, royalties, and gross receipts from the sale, exchange,
1922	maturity, redemption, or other disposition of securities.
1923	However:
1924	1.  Rental income is included in the term if a significant
1925	portion of the taxpayer's business consists of leasing or
1926	renting real or tangible personal property; and
1927	2.  Royalty income is included in the term if a significant
1928	portion of the taxpayer's business consists of dealing in or
1929	with the production, exploration, or development of minerals.
1930	(b)1.  Sales of tangible personal property occur in this
1931	state if the property is delivered or shipped to a purchaser
1932	within this state, regardless of the f.o.b. point, other
1933	conditions of the sale, or ultimate destination of the property,
1934	unless shipment is made via a common or contract carrier.
1935	However, for industries in NAICS National Number 311411, if the
1936	ultimate destination of the product is to a location outside
1937	this state, regardless of the method of shipment or f.o.b.
1938	point, the sale shall not be deemed to occur in this state. As
1939	used in this paragraph, "NAICS" means those classifications
1940	contained in the North American Industry Classification System,
1941	as published in 2007 by the Office of Management and Budget,
1942	Executive Office of the President.
1943	2.  When citrus fruit is delivered by a cooperative for a
1944	grower-member, by a grower-member to a cooperative, or by a
1945	grower-participant to a Florida processor, the sales factor for
1946	the growers for such citrus fruit delivered to such processor
1947	shall be the same as the sales factor for the most recent
1948	taxable year of that processor. That sales factor, expressed
1949	only as a percentage and not in terms of the dollar volume of
1950	sales, so as to protect the confidentiality of the sales of the
1951	processor, shall be furnished on the request of such a grower
1952	promptly after it has been determined for that taxable year.
1953	3.  Reimbursement of expenses under an agency contract
1954	between a cooperative, a grower-member of a cooperative, or a
1955	grower and a processor is not a sale within this state.
1956	(c)  Sales of a financial organization, including, but not
1957	limited to, banking and savings institutions, investment
1958	companies, real estate investment trusts, and brokerage
1959	companies, occur in this state if derived from:
1960	1.  Fees, commissions, or other compensation for financial
1961	services rendered within this state;
1962	2.  Gross profits from trading in stocks, bonds, or other
1963	securities managed within this state;
1964	3.  Interest received within this state, other than
1965	interest from loans secured by mortgages, deeds of trust, or
1966	other liens upon real or tangible personal property located
1967	without this state, and dividends received within this state;
1968	4.  Interest charged to customers at places of business
1969	maintained within this state for carrying debit balances of
1970	margin accounts, without deduction of any costs incurred in
1971	carrying such accounts;
1972	5.  Interest, fees, commissions, or other charges or gains
1973	from loans secured by mortgages, deeds of trust, or other liens
1974	upon real or tangible personal property located in this state or
1975	from installment sale agreements originally executed by a
1976	taxpayer or the taxpayer's agent to sell real or tangible
1977	personal property located in this state;
1978	6.  Rents from real or tangible personal property located
1979	in this state; or
1980	7.  Any other gross income, including other interest,
1981	resulting from the operation as a financial organization within
1982	this state.
1983
1984	In computing the amounts under this paragraph, any amount
1985	received by a member of an affiliated group (determined under s.
1986	1504(a) of the Internal Revenue Code, but without reference to
1987	whether any such corporation is an "includable corporation"
1988	under s. 1504(b) of the Internal Revenue Code) from another
1989	member of such group shall be included only to the extent such
1990	amount exceeds expenses of the recipient directly related
1991	thereto.
1992	Section 31.  Subsection (1) of section 220.183, Florida
1993	Statutes, is amended to read:
1994	220.183  Community contribution tax credit.-
1995	(1)  AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
1996	CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
1997	SPENDING.-
1998	(a)  There shall be allowed a credit of 50 percent of a
1999	community contribution against any tax due for a taxable year
2000	under this chapter.
2001	(b)  No business firm shall receive more than $200,000 in
2002	annual tax credits for all approved community contributions made
2003	in any one year.
2004	(c)  The total amount of tax credit which may be granted
2005	for all programs approved under this section, s. 212.08(5)(p),
2006	and s. 624.5105 is $10.5 million annually for projects that
2007	provide homeownership opportunities for low-income or very-low-
2008	income households as defined in s. 420.9071(19) and (28) and
2009	$3.5 million annually for all other projects.
2010	(d)  All proposals for the granting of the tax credit shall
2011	require the prior approval of the Office of Tourism, Trade, and
2012	Economic Development.
2013	(e)  If the credit granted pursuant to this section is not
2014	fully used in any one year because of insufficient tax liability
2015	on the part of the business firm, the unused amount may be
2016	carried forward for a period not to exceed 5 years. The
2017	carryover credit may be used in a subsequent year when the tax
2018	imposed by this chapter for such year exceeds the credit for
2019	such year under this section after applying the other credits
2020	and unused credit carryovers in the order provided in s.
2021	220.02(8).
2022	(f)  A taxpayer who files a Florida consolidated return as
2023	a member of an affiliated group pursuant to s. 220.131(1) may be
2024	allowed the credit on a consolidated return basis.
2025	(f)(g)  A taxpayer who is eligible to receive the credit
2026	provided for in s. 624.5105 is not eligible to receive the
2027	credit provided by this section.
2028	(g)(h)  Notwithstanding paragraph (c), and for the 2008-
2029	2009 fiscal year only, the total amount of tax credit which may
2030	be granted for all programs approved under this section, s.
2031	212.08(5)(p), and s. 624.5105 is $13 million annually for
2032	projects that provide homeownership opportunities for low-income
2033	or very-low-income households as defined in s. 420.9071(19) and
2034	(28) and $3.5 million annually for all other projects. This
2035	paragraph expires June 30, 2009.
2036	Section 32.  Subsection (1) of section 220.1845, Florida
2037	Statutes, is amended to read:
2038	220.1845  Contaminated site rehabilitation tax credit.-
2039	(1)  AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.-
2040	(a)  A credit in the amount of 50 percent of the costs of
2041	voluntary cleanup activity that is integral to site
2042	rehabilitation at the following sites is available against any
2043	tax due for a taxable year under this chapter:
2044	1.  A drycleaning-solvent-contaminated site eligible for
2045	state-funded site rehabilitation under s. 376.3078(3);
2046	2.  A drycleaning-solvent-contaminated site at which site
2047	rehabilitation is undertaken by the real property owner pursuant
2048	to s. 376.3078(11), if the real property owner is not also, and
2049	has never been, the owner or operator of the drycleaning
2050	facility where the contamination exists; or
2051	3.  A brownfield site in a designated brownfield area under
2052	s. 376.80.
2053	(b)  A tax credit applicant, or multiple tax credit
2054	applicants working jointly to clean up a single site, may not be
2055	granted more than $500,000 per year in tax credits for each site
2056	voluntarily rehabilitated. Multiple tax credit applicants shall
2057	be granted tax credits in the same proportion as their
2058	contribution to payment of cleanup costs. Subject to the same
2059	conditions and limitations as provided in this section, a
2060	municipality, county, or other tax credit applicant which
2061	voluntarily rehabilitates a site may receive not more than
2062	$500,000 per year in tax credits which it can subsequently
2063	transfer subject to the provisions in paragraph (f) (g).
2064	(c)  If the credit granted under this section is not fully
2065	used in any one year because of insufficient tax liability on
2066	the part of the corporation, the unused amount may be carried
2067	forward for up to 5 years. The carryover credit may be used in a
2068	subsequent year if the tax imposed by this chapter for that year
2069	exceeds the credit for which the corporation is eligible in that
2070	year after applying the other credits and unused carryovers in
2071	the order provided by s. 220.02(8). If during the 5-year period
2072	the credit is transferred, in whole or in part, pursuant to
2073	paragraph (f) (g), each transferee has 5 years after the date of
2074	transfer to use its credit.
2075	(d)  A taxpayer that files a consolidated return in this
2076	state as a member of an affiliated group under s. 220.131(1) may
2077	be allowed the credit on a consolidated return basis up to the
2078	amount of tax imposed upon the consolidated group.
2079	(d)(e)  A tax credit applicant that receives state-funded
2080	site rehabilitation under s. 376.3078(3) for rehabilitation of a
2081	drycleaning-solvent-contaminated site is ineligible to receive
2082	credit under this section for costs incurred by the tax credit
2083	applicant in conjunction with the rehabilitation of that site
2084	during the same time period that state-administered site
2085	rehabilitation was underway.
2086	(e)(f)  The total amount of the tax credits which may be
2087	granted under this section is $2 million annually.
2088	(f)(g)1.  Tax credits that may be available under this
2089	section to an entity eligible under s. 376.30781 may be
2090	transferred after a merger or acquisition to the surviving or
2091	acquiring entity and used in the same manner and with the same
2092	limitations.
2093	2.  The entity or its surviving or acquiring entity as
2094	described in subparagraph 1., may transfer any unused credit in
2095	whole or in units of at least 25 percent of the remaining
2096	credit. The entity acquiring such credit may use it in the same
2097	manner and with the same limitation as described in this
2098	section. Such transferred credits may not be transferred again
2099	although they may succeed to a surviving or acquiring entity
2100	subject to the same conditions and limitations as described in
2101	this section.
2102	3.  If the credit is reduced due to a determination by the
2103	Department of Environmental Protection or an examination or
2104	audit by the Department of Revenue, the tax deficiency shall be
2105	recovered from the first entity, or the surviving or acquiring
2106	entity that claimed the credit up to the amount of credit taken.
2107	Any subsequent deficiencies shall be assessed against the entity
2108	acquiring and claiming the credit, or in the case of multiple
2109	succeeding entities in the order of credit succession.
2110	(g)(h)  In order to encourage completion of site
2111	rehabilitation at contaminated sites being voluntarily cleaned
2112	up and eligible for a tax credit under this section, the tax
2113	credit applicant may claim an additional 25 percent of the total
2114	cleanup costs, not to exceed $500,000, in the final year of
2115	cleanup as evidenced by the Department of Environmental
2116	Protection issuing a "No Further Action" order for that site.
2117	(h)(i)  In order to encourage the construction of housing
2118	that meets the definition of affordable provided in s. 420.0004,
2119	an applicant for the tax credit may claim an additional 25
2120	percent of the total site rehabilitation costs that are eligible
2121	for tax credits under this section, not to exceed $500,000. In
2122	order to receive this additional tax credit, the applicant must
2123	provide a certification letter from the Florida Housing Finance
2124	Corporation, the local housing authority, or other governmental
2125	agency that is a party to the use agreement indicating that the
2126	construction on the brownfield site has received a certificate
2127	of occupancy and the brownfield site has a properly recorded
2128	instrument that limits the use of the property to housing that
2129	meets the definition of affordable provided in s. 420.0004.
2130	(i)(j)  In order to encourage the redevelopment of a
2131	brownfield site, as defined in the brownfield site
2132	rehabilitation agreement, that is hindered by the presence of
2133	solid waste, as defined in s. 403.703, a tax credit applicant,
2134	or multiple tax credit applicants working jointly to clean up a
2135	single brownfield site, may also claim costs required to address
2136	solid waste removal as defined in this paragraph in accordance
2137	with rules of the Department of Environmental Protection.
2138	Multiple tax credit applicants shall be granted tax credits in
2139	the same proportion as each applicant's contribution to payment
2140	of solid waste removal costs. These costs are eligible for a tax
2141	credit provided the applicant submits an affidavit stating that,
2142	after consultation with appropriate local government officials
2143	and the Department of Environmental Protection, to the best of
2144	the applicant's knowledge according to such consultation and
2145	available historical records, the brownfield site was never
2146	operated as a permitted solid waste disposal area or was never
2147	operated for monetary compensation and the applicant submits all
2148	other documentation and certifications required by this section.
2149	Under this section, wherever reference is made to "site
2150	rehabilitation," the Department of Environmental Protection
2151	shall instead consider whether or not the costs claimed are for
2152	solid waste removal. Tax credit applications claiming costs
2153	pursuant to this paragraph shall not be subject to the calendar-
2154	year limitation and January 31 annual application deadline, and
2155	the Department of Environmental Protection shall accept a one-
2156	time application filed subsequent to the completion by the tax
2157	credit applicant of the applicable requirements listed in this
2158	section. A tax credit applicant may claim 50 percent of the cost
2159	for solid waste removal, not to exceed $500,000, after the
2160	applicant has determined solid waste removal is completed for
2161	the brownfield site. A solid waste removal tax credit
2162	application may be filed only once per brownfield site. For the
2163	purposes of this section, the term:
2164	1.  "Solid waste disposal area" means a landfill, dump, or
2165	other area where solid waste has been disposed of.
2166	2.  "Monetary compensation" means the fees that were
2167	charged or the assessments that were levied for the disposal of
2168	solid waste at a solid waste disposal area.
2169	3.  "Solid waste removal" means removal of solid waste from
2170	the land surface or excavation of solid waste from below the
2171	land surface and removal of the solid waste from the brownfield
2172	site. The term also includes:
2173	a.  Transportation of solid waste to a licensed or exempt
2174	solid waste management facility or to a temporary storage area.
2175	b.  Sorting or screening of solid waste prior to removal
2176	from the site.
2177	c.  Deposition of solid waste at a permitted or exempt
2178	solid waste management facility, whether the solid waste is
2179	disposed of or recycled.
2180	(j)(k)  In order to encourage the construction and
2181	operation of a new health care facility as defined in s. 408.032
2182	or s. 408.07, or a health care provider as defined in s. 408.07
2183	or s. 408.7056, on a brownfield site, an applicant for a tax
2184	credit may claim an additional 25 percent of the total site
2185	rehabilitation costs, not to exceed $500,000, if the applicant
2186	meets the requirements of this paragraph. In order to receive
2187	this additional tax credit, the applicant must provide
2188	documentation indicating that the construction of the health
2189	care facility or health care provider by the applicant on the
2190	brownfield site has received a certificate of occupancy or a
2191	license or certificate has been issued for the operation of the
2192	health care facility or health care provider.
2193	Section 33.  Effective January 1, 2011, subsection (1) of
2194	section 220.1845, Florida Statutes, as amended by this act, and
2195	subsection (3) of that section, are amended to read:
2196	220.1845  Contaminated site rehabilitation tax credit.-
2197	(1)  AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.-
2198	(a)  A credit in the amount of 50 percent of the costs of
2199	voluntary cleanup activity that is integral to site
2200	rehabilitation at the following sites is available against any
2201	tax due for a taxable year under this chapter:
2202	1.  A drycleaning-solvent-contaminated site eligible for
2203	state-funded site rehabilitation under s. 376.3078(3);
2204	2.  A drycleaning-solvent-contaminated site at which site
2205	rehabilitation is undertaken by the real property owner pursuant
2206	to s. 376.3078(11), if the real property owner is not also, and
2207	has never been, the owner or operator of the drycleaning
2208	facility where the contamination exists; or
2209	3.  A brownfield site in a designated brownfield area under
2210	s. 376.80.
2211	(b)  A tax credit applicant, or multiple tax credit
2212	applicants working jointly to clean up a single site, may not be
2213	granted more than $500,000 per year in tax credits for each site
2214	voluntarily rehabilitated. Multiple tax credit applicants shall
2215	be granted tax credits in the same proportion as their
2216	contribution to payment of cleanup costs. Subject to the same
2217	conditions and limitations as provided in this section, a
2218	municipality, county, or other tax credit applicant which
2219	voluntarily rehabilitates a site may receive not more than
2220	$500,000 per year in tax credits which it can subsequently
2221	transfer subject to the provisions in paragraph (g) (f).
2222	(c)  If the credit granted under this section is not fully
2223	used in any one year because of insufficient tax liability on
2224	the part of the corporation, the unused amount may be carried
2225	forward for up to 5 years. The carryover credit may be used in a
2226	subsequent year if the tax imposed by this chapter for that year
2227	exceeds the credit for which the corporation is eligible in that
2228	year after applying the other credits and unused carryovers in
2229	the order provided by s. 220.02(8). If during the 5-year period
2230	the credit is transferred, in whole or in part, pursuant to
2231	paragraph (g) (f), each transferee has 5 years after the date of
2232	transfer to use its credit.
2233	(d)  A taxpayer that receives credit under s. 199.10555 is
2234	ineligible to receive credit under this section in a given tax
2235	year.
2236	(e)(d)  A tax credit applicant that receives state-funded
2237	site rehabilitation under s. 376.3078(3) for rehabilitation of a
2238	drycleaning-solvent-contaminated site is ineligible to receive
2239	credit under this section for costs incurred by the tax credit
2240	applicant in conjunction with the rehabilitation of that site
2241	during the same time period that state-administered site
2242	rehabilitation was underway.
2243	(f)(e)  The total amount of the tax credits which may be
2244	granted under this section and s. 199.10555 is $2 million
2245	annually.
2246	(g)(f)1.  Tax credits that may be available under this
2247	section to an entity eligible under s. 376.30781 may be
2248	transferred after a merger or acquisition to the surviving or
2249	acquiring entity and used in the same manner and with the same
2250	limitations.
2251	2.  The entity or its surviving or acquiring entity as
2252	described in subparagraph 1., may transfer any unused credit in
2253	whole or in units of at least 25 percent of the remaining
2254	credit. The entity acquiring such credit may use it in the same
2255	manner and with the same limitation as described in this
2256	section. Such transferred credits may not be transferred again
2257	although they may succeed to a surviving or acquiring entity
2258	subject to the same conditions and limitations as described in
2259	this section.
2260	3.  If the credit is reduced due to a determination by the
2261	Department of Environmental Protection or an examination or
2262	audit by the Department of Revenue, the tax deficiency shall be
2263	recovered from the first entity, or the surviving or acquiring
2264	entity that claimed the credit up to the amount of credit taken.
2265	Any subsequent deficiencies shall be assessed against the entity
2266	acquiring and claiming the credit, or in the case of multiple
2267	succeeding entities in the order of credit succession.
2268	(h)(g)  In order to encourage completion of site
2269	rehabilitation at contaminated sites being voluntarily cleaned
2270	up and eligible for a tax credit under this section, the tax
2271	credit applicant may claim an additional 25 percent of the total
2272	cleanup costs, not to exceed $500,000, in the final year of
2273	cleanup as evidenced by the Department of Environmental
2274	Protection issuing a "No Further Action" order for that site.
2275	(i)(h)  In order to encourage the construction of housing
2276	that meets the definition of affordable provided in s. 420.0004,
2277	an applicant for the tax credit may claim an additional 25
2278	percent of the total site rehabilitation costs that are eligible
2279	for tax credits under this section, not to exceed $500,000. In
2280	order to receive this additional tax credit, the applicant must
2281	provide a certification letter from the Florida Housing Finance
2282	Corporation, the local housing authority, or other governmental
2283	agency that is a party to the use agreement indicating that the
2284	construction on the brownfield site has received a certificate
2285	of occupancy and the brownfield site has a properly recorded
2286	instrument that limits the use of the property to housing that
2287	meets the definition of affordable provided in s. 420.0004.
2288	(j)(i)  In order to encourage the redevelopment of a
2289	brownfield site, as defined in the brownfield site
2290	rehabilitation agreement, that is hindered by the presence of
2291	solid waste, as defined in s. 403.703, a tax credit applicant,
2292	or multiple tax credit applicants working jointly to clean up a
2293	single brownfield site, may also claim costs required to address
2294	solid waste removal as defined in this paragraph in accordance
2295	with rules of the Department of Environmental Protection.
2296	Multiple tax credit applicants shall be granted tax credits in
2297	the same proportion as each applicant's contribution to payment
2298	of solid waste removal costs. These costs are eligible for a tax
2299	credit provided the applicant submits an affidavit stating that,
2300	after consultation with appropriate local government officials
2301	and the Department of Environmental Protection, to the best of
2302	the applicant's knowledge according to such consultation and
2303	available historical records, the brownfield site was never
2304	operated as a permitted solid waste disposal area or was never
2305	operated for monetary compensation and the applicant submits all
2306	other documentation and certifications required by this section.
2307	Under this section, wherever reference is made to "site
2308	rehabilitation," the Department of Environmental Protection
2309	shall instead consider whether or not the costs claimed are for
2310	solid waste removal. Tax credit applications claiming costs
2311	pursuant to this paragraph shall not be subject to the calendar-
2312	year limitation and January 31 annual application deadline, and
2313	the Department of Environmental Protection shall accept a one-
2314	time application filed subsequent to the completion by the tax
2315	credit applicant of the applicable requirements listed in this
2316	section. A tax credit applicant may claim 50 percent of the cost
2317	for solid waste removal, not to exceed $500,000, after the
2318	applicant has determined solid waste removal is completed for
2319	the brownfield site. A solid waste removal tax credit
2320	application may be filed only once per brownfield site. For the
2321	purposes of this section, the term:
2322	1.  "Solid waste disposal area" means a landfill, dump, or
2323	other area where solid waste has been disposed of.
2324	2.  "Monetary compensation" means the fees that were
2325	charged or the assessments that were levied for the disposal of
2326	solid waste at a solid waste disposal area.
2327	3.  "Solid waste removal" means removal of solid waste from
2328	the land surface or excavation of solid waste from below the
2329	land surface and removal of the solid waste from the brownfield
2330	site. The term also includes:
2331	a.  Transportation of solid waste to a licensed or exempt
2332	solid waste management facility or to a temporary storage area.
2333	b.  Sorting or screening of solid waste prior to removal
2334	from the site.
2335	c.  Deposition of solid waste at a permitted or exempt
2336	solid waste management facility, whether the solid waste is
2337	disposed of or recycled.
2338	(k)(j)  In order to encourage the construction and
2339	operation of a new health care facility as defined in s. 408.032
2340	or s. 408.07, or a health care provider as defined in s. 408.07
2341	or s. 408.7056, on a brownfield site, an applicant for a tax
2342	credit may claim an additional 25 percent of the total site
2343	rehabilitation costs, not to exceed $500,000, if the applicant
2344	meets the requirements of this paragraph. In order to receive
2345	this additional tax credit, the applicant must provide
2346	documentation indicating that the construction of the health
2347	care facility or health care provider by the applicant on the
2348	brownfield site has received a certificate of occupancy or a
2349	license or certificate has been issued for the operation of the
2350	health care facility or health care provider.
2351	(3)  ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT
2352	FORFEITURE.-
2353	(a)  The Department of Revenue may adopt rules to prescribe
2354	any necessary forms required to claim a tax credit under this
2355	section and to provide the administrative guidelines and
2356	procedures required to administer this section.
2357	(b)  In addition to its existing audit and investigation
2358	authority relating to chapter 199 and this chapter, the
2359	Department of Revenue may perform any additional financial and
2360	technical audits and investigations, including examining the
2361	accounts, books, or records of the tax credit applicant, which
2362	are necessary to verify the site rehabilitation costs included
2363	in a tax credit return and to ensure compliance with this
2364	section. The Department of Environmental Protection shall
2365	provide technical assistance, when requested by the Department
2366	of Revenue, on any technical audits performed pursuant to this
2367	section.
2368	(c)  It is grounds for forfeiture of previously claimed and
2369	received tax credits if the Department of Revenue determines, as
2370	a result of either an audit or information received from the
2371	Department of Environmental Protection, that a taxpayer received
2372	tax credits pursuant to this section to which the taxpayer was
2373	not entitled. In the case of fraud, the taxpayer shall be
2374	prohibited from claiming any future tax credits under this
2375	section or s. 199.10555.
2376	1.  The taxpayer is responsible for returning forfeited tax
2377	credits to the Department of Revenue, and such funds shall be
2378	paid into the General Revenue Fund of the state.
2379	2.  The taxpayer shall file with the Department of Revenue
2380	an amended tax return or such other report as the Department of
2381	Revenue prescribes by rule and shall pay any required tax within
2382	60 days after the taxpayer receives notification from the
2383	Department of Environmental Protection pursuant to s. 376.30781
2384	that previously approved tax credits have been revoked or
2385	modified, if uncontested, or within 60 days after a final order
2386	is issued following proceedings involving a contested revocation
2387	or modification order.
2388	3.  A notice of deficiency may be issued by the Department
2389	of Revenue at any time within 5 years after the date the
2390	taxpayer receives notification from the Department of
2391	Environmental Protection pursuant to s. 376.30781 that
2392	previously approved tax credits have been revoked or modified.
2393	If a taxpayer fails to notify the Department of Revenue of any
2394	change in its tax credit claimed, a notice of deficiency may be
2395	issued at any time. In either case, the amount of any proposed
2396	assessment set forth in such notice of deficiency shall be
2397	limited to the amount of any deficiency resulting under this
2398	section from the recomputation of the taxpayer's tax for the
2399	taxable year.
2400	4.  Any taxpayer that fails to report and timely pay any
2401	tax due as a result of the forfeiture of its tax credit is in
2402	violation of this section and is subject to applicable penalty
2403	and interest.
2404	Section 34.  Subsection (5) of section 220.187, Florida
2405	Statutes, is amended to read:
2406	220.187  Credits for contributions to nonprofit
2407	scholarship-funding organizations.-
2408	(5)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
2409	CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.-
2410	(a)  There is allowed a credit of 100 percent of an
2411	eligible contribution against any tax due for a taxable year
2412	under this chapter. However, such a credit may not exceed 75
2413	percent of the tax due under this chapter for the taxable year,
2414	after the application of any other allowable credits by the
2415	taxpayer. The credit granted by this section shall be reduced by
2416	the difference between the amount of federal corporate income
2417	tax taking into account the credit granted by this section and
2418	the amount of federal corporate income tax without application
2419	of the credit granted by this section.
2420	(b)  For each state fiscal year, the total amount of tax
2421	credits and carryforward of tax credits which may be granted
2422	under this section and s. 624.51055 is $118 million.
2423	(c)  A taxpayer who files a Florida consolidated return as
2424	a member of an affiliated group pursuant to s. 220.131(1) may be
2425	allowed the credit on a consolidated return basis; however, the
2426	total credit taken by the affiliated group is subject to the
2427	limitation established under paragraph (a).
2428	(c)(d)  Effective for tax years beginning January 1, 2006,
2429	a taxpayer may rescind all or part of its allocated tax credit
2430	under this section. The amount rescinded shall become available
2431	for purposes of the cap for that state fiscal year under this
2432	section to an eligible taxpayer as approved by the department if
2433	the taxpayer receives notice from the department that the
2434	rescindment has been accepted by the department and the taxpayer
2435	has not previously rescinded any or all of its tax credit
2436	allocation under this section more than once in the previous 3
2437	tax years. Any amount rescinded under this paragraph shall
2438	become available to an eligible taxpayer on a first-come, first-
2439	served basis based on tax credit applications received after the
2440	date the rescindment is accepted by the department.
2441	(d)(e)  A taxpayer who is eligible to receive the credit
2442	provided for in s. 624.51055 is not eligible to receive the
2443	credit provided by this section.
2444	Section 35.  Subsection (3) of section 220.191, Florida
2445	Statutes, is amended to read:
2446	220.191  Capital investment tax credit.-
2447	(3)(a)  Notwithstanding subsection (2), an annual credit
2448	against the tax imposed by this chapter shall be granted to a
2449	qualifying business which establishes a qualifying project
2450	pursuant to subparagraph (1)(h)3., in an amount equal to the
2451	lesser of $15 million or 5 percent of the eligible capital costs
2452	made in connection with a qualifying project, for a period not
2453	to exceed 20 years beginning with the commencement of operations
2454	of the project. The tax credit shall be granted against the
2455	corporate income tax liability of the qualifying business and as
2456	further provided in paragraph (c). The total tax credit provided
2457	pursuant to this subsection shall be equal to no more than 100
2458	percent of the eligible capital costs of the qualifying project.
2459	(b)  If the credit granted under this subsection is not
2460	fully used in any one year because of insufficient tax liability
2461	on the part of the qualifying business, the unused amount may be
2462	carried forward for a period not to exceed 20 years after the
2463	commencement of operations of the project. The carryover credit
2464	may be used in a subsequent year when the tax imposed by this
2465	chapter for that year exceeds the credit for which the
2466	qualifying business is eligible in that year under this
2467	subsection after applying the other credits and unused
2468	carryovers in the order provided by s. 220.02(8).
2469	(c)  The credit granted under this subsection may be used
2470	in whole or in part by the qualifying business or any
2471	corporation that is either a member of that qualifying
2472	business's affiliated group of corporations, is a related entity
2473	taxable as a cooperative under subchapter T of the Internal
2474	Revenue Code, or, if the qualifying business is an entity
2475	taxable as a cooperative under subchapter T of the Internal
2476	Revenue Code, is related to the qualifying business. Any entity
2477	related to the qualifying business may continue to file as a
2478	member of a Florida-nexus consolidated group pursuant to a prior
2479	election made under s. 220.131(1), Florida Statutes (1985), even
2480	if the parent of the group changes due to a direct or indirect
2481	acquisition of the former common parent of the group. Any credit
2482	can be used by any of the affiliated companies or related
2483	entities referenced in this paragraph to the same extent as it
2484	could have been used by the qualifying business. However, any
2485	such use shall not operate to increase the amount of the credit
2486	or extend the period within which the credit must be used.
2487	Section 36.  Subsection (2) of section 220.192, Florida
2488	Statutes, is amended to read:
2489	220.192  Renewable energy technologies investment tax
2490	credit.-
2491	(2)  TAX CREDIT.-For tax years beginning on or after
2492	January 1, 2007, a credit against the tax imposed by this
2493	chapter shall be granted in an amount equal to the eligible
2494	costs. Credits may be used in tax years beginning January 1,
2495	2007, and ending December 31, 2010, after which the credit shall
2496	expire. If the credit is not fully used in any one tax year
2497	because of insufficient tax liability on the part of the
2498	corporation, the unused amount may be carried forward and used
2499	in tax years beginning January 1, 2007, and ending December 31,
2500	2012, after which the credit carryover expires and may not be
2501	used. A taxpayer that files a consolidated return in this state
2502	as a member of an affiliated group under s. 220.131(1) may be
2503	allowed the credit on a consolidated return basis up to the
2504	amount of tax imposed upon the consolidated group. Any eligible
2505	cost for which a credit is claimed and which is deducted or
2506	otherwise reduces federal taxable income shall be added back in
2507	computing adjusted federal income under s. 220.13.
2508	Section 37.  Subsection (3) of section 220.193, Florida
2509	Statutes, is amended to read:
2510	220.193  Florida renewable energy production credit.-
2511	(3)  An annual credit against the tax imposed by this
2512	section shall be allowed to a taxpayer, based on the taxpayer's
2513	production and sale of electricity from a new or expanded
2514	Florida renewable energy facility. For a new facility, the
2515	credit shall be based on the taxpayer's sale of the facility's
2516	entire electrical production. For an expanded facility, the
2517	credit shall be based on the increases in the facility's
2518	electrical production that are achieved after May 1, 2006.
2519	(a)  The credit shall be $0.01 for each kilowatt-hour of
2520	electricity produced and sold by the taxpayer to an unrelated
2521	party during a given tax year.
2522	(b)  The credit may be claimed for electricity produced and
2523	sold on or after January 1, 2007. Beginning in 2008 and
2524	continuing until 2011, each taxpayer claiming a credit under
2525	this section must first apply to the department by February 1 of
2526	each year for an allocation of available credit. The department,
2527	in consultation with the commission, shall develop an
2528	application form. The application form shall, at a minimum,
2529	require a sworn affidavit from each taxpayer certifying the
2530	increase in production and sales that form the basis of the
2531	application and certifying that all information contained in the
2532	application is true and correct.
2533	(c)  If the amount of credits applied for each year exceeds
2534	$5 million, the department shall award to each applicant a
2535	prorated amount based on each applicant's increased production
2536	and sales and the increased production and sales of all
2537	applicants.
2538	(d)  If the credit granted pursuant to this section is not
2539	fully used in one year because of insufficient tax liability on
2540	the part of the taxpayer, the unused amount may be carried
2541	forward for a period not to exceed 5 years. The carryover credit
2542	may be used in a subsequent year when the tax imposed by this
2543	chapter for such year exceeds the credit for such year, after
2544	applying the other credits and unused credit carryovers in the
2545	order provided in s. 220.02(8).
2546	(e)  A taxpayer that files a consolidated return in this
2547	state as a member of an affiliated group under s. 220.131(1) may
2548	be allowed the credit on a consolidated return basis up to the
2549	amount of tax imposed upon the consolidated group.
2550	(e)(f)1.  Tax credits that may be available under this
2551	section to an entity eligible under this section may be
2552	transferred after a merger or acquisition to the surviving or
2553	acquiring entity and used in the same manner with the same
2554	limitations.
2555	2.  The entity or its surviving or acquiring entity as
2556	described in subparagraph 1. may transfer any unused credit in
2557	whole or in units of no less than 25 percent of the remaining
2558	credit. The entity acquiring such credit may use it in the same
2559	manner and with the same limitations under this section. Such
2560	transferred credits may not be transferred again although they
2561	may succeed to a surviving or acquiring entity subject to the
2562	same conditions and limitations as described in this section.
2563	3.  In the event the credit provided for under this section
2564	is reduced as a result of an examination or audit by the
2565	department, such tax deficiency shall be recovered from the
2566	first entity or the surviving or acquiring entity to have
2567	claimed such credit up to the amount of credit taken. Any
2568	subsequent deficiencies shall be assessed against any entity
2569	acquiring and claiming such credit, or in the case of multiple
2570	succeeding entities in the order of credit succession.
2571	(f)(g)  Notwithstanding any other provision of this
2572	section, credits for the production and sale of electricity from
2573	a new or expanded Florida renewable energy facility may be
2574	earned between January 1, 2007, and June 30, 2010. The combined
2575	total amount of tax credits which may be granted for all
2576	taxpayers under this section is limited to $5 million per state
2577	fiscal year.
2578	(g)(h)  A taxpayer claiming a credit under this section
2579	shall be required to add back to net income that portion of its
2580	business deductions claimed on its federal return paid or
2581	incurred for the taxable year which is equal to the amount of
2582	the credit allowable for the taxable year under this section.
2583	(h)(i)  A taxpayer claiming credit under this section may
2584	not claim a credit under s. 220.192. A taxpayer claiming credit
2585	under s. 220.192 may not claim a credit under this section.
2586	(i)(j)  When an entity treated as a partnership or a
2587	disregarded entity under this chapter produces and sells
2588	electricity from a new or expanded renewable energy facility,
2589	the credit earned by such entity shall pass through in the same
2590	manner as items of income and expense pass through for federal
2591	income tax purposes. When an entity applies for the credit and
2592	the entity has received the credit by a pass-through, the
2593	application must identify the taxpayer that passed the credit
2594	through, all taxpayers that received the credit, and the
2595	percentage of the credit that passes through to each recipient
2596	and must provide other information that the department requires.
2597	(j)(k)  A taxpayer's use of the credit granted pursuant to
2598	this section does not reduce the amount of any credit available
2599	to such taxpayer under s. 220.186.
2600	Section 38.  Section 220.51, Florida Statutes, is amended
2601	to read:
2602	220.51  Promulgation of rules and regulations.-In
2603	accordance with the Administrative Procedure Act, chapter 120,
2604	the department is authorized to make, promulgate, and enforce
2605	such reasonable rules and regulations, and to prescribe such
2606	forms relating to the administration and enforcement of the
2607	provisions of this code, as it may deem appropriate, including:
2608	(1)  Rules for initial implementation of this code and for
2609	taxpayers' transitional taxable years commencing before and
2610	ending after January 1, 1972; and
2611	(2)  Rules or regulations to clarify whether certain
2612	groups, organizations, or associations formed under the laws of
2613	this state or any other state, country, or jurisdiction shall be
2614	deemed "taxpayers" for the purposes of this code, in accordance
2615	with the legislative declarations of intent in s. 220.02.; and
2616	(3)  Regulations relating to consolidated reporting for
2617	affiliated groups of corporations, in order to provide for an
2618	equitable and just administration of this code with respect to
2619	multicorporate taxpayers.
2620	Section 39.  Section 220.64, Florida Statutes, is amended
2621	to read:
2622	220.64  Other provisions applicable to franchise tax.-To
2623	the extent that they are not manifestly incompatible with the
2624	provisions of this part, parts I, III, IV, V, VI, VIII, IX, and
2625	X of this code and ss. 220.12, 220.13, 220.136, 220.1363,
2626	220.15, and 220.16 ss. 220.12, 220.13, 220.15, and 220.16 apply
2627	to the franchise tax imposed by this part. Under rules
2628	prescribed in s. 220.131, a consolidated return may be filed by
2629	any affiliated group of corporations composed of one or more
2630	banks or savings associations, its or their Florida parent
2631	corporation, and any nonbank or nonsavings subsidiaries of such
2632	parent corporation.
2633	Section 40.  Subsections (9) and (10) of section 376.30781,
2634	Florida Statutes, are amended to read:
2635	376.30781  Tax credits for rehabilitation of drycleaning-
2636	solvent-contaminated sites and brownfield sites in designated
2637	brownfield areas; application process; rulemaking authority;
2638	revocation authority.-
2639	(9)  On or before May 1, the Department of Environmental
2640	Protection shall inform each tax credit applicant that is
2641	subject to the January 31 annual application deadline of the
2642	applicant's eligibility status and the amount of any tax credit
2643	due. The department shall provide each eligible tax credit
2644	applicant with a tax credit certificate that must be submitted
2645	with its tax return to the Department of Revenue to claim the
2646	tax credit or be transferred pursuant to s. 220.1845(1)(f)(g).
2647	The May 1 deadline for annual site rehabilitation tax credit
2648	certificate awards shall not apply to any tax credit application
2649	for which the department has issued a notice of deficiency
2650	pursuant to subsection (8). The department shall respond within
2651	90 days after receiving a response from the tax credit applicant
2652	to such a notice of deficiency. Credits may not result in the
2653	payment of refunds if total credits exceed the amount of tax
2654	owed.
2655	(10)  For solid waste removal, new health care facility or
2656	health care provider, and affordable housing tax credit
2657	applications, the Department of Environmental Protection shall
2658	inform the applicant of the department's determination within 90
2659	days after the application is deemed complete. Each eligible tax
2660	credit applicant shall be informed of the amount of its tax
2661	credit and provided with a tax credit certificate that must be
2662	submitted with its tax return to the Department of Revenue to
2663	claim the tax credit or be transferred pursuant to s.
2664	220.1845(1)(f)(g). Credits may not result in the payment of
2665	refunds if total credits exceed the amount of tax owed.
2666	Section 41.  Effective January 1, 2011, paragraph (a) of
2667	subsection (3), subsection (4), and paragraph (a) of subsection
2668	(14) of section 376.30781, Florida Statutes, are amended, and
2669	subsections (9) and (10) of that section, as amended by this
2670	act, are amended, to read:
2671	376.30781  Tax credits for rehabilitation of drycleaning-
2672	solvent-contaminated sites and brownfield sites in designated
2673	brownfield areas; application process; rulemaking authority;
2674	revocation authority.-
2675	(3)(a)  A credit in the amount of 50 percent of the costs
2676	of voluntary cleanup activity that is integral to site
2677	rehabilitation at the following sites is allowed pursuant to ss.
2678	199.10555 and s. 220.1845:
2679	1.  A drycleaning-solvent-contaminated site eligible for
2680	state-funded site rehabilitation under s. 376.3078(3);
2681	2.  A drycleaning-solvent-contaminated site at which site
2682	rehabilitation is undertaken by the real property owner pursuant
2683	to s. 376.3078(11), if the real property owner is not also, and
2684	has never been, the owner or operator of the drycleaning
2685	facility where the contamination exists; or
2686	3.  A brownfield site in a designated brownfield area under
2687	s. 376.80.
2688	(4)  The Department of Environmental Protection is
2689	responsible for allocating the tax credits provided for in ss.
2690	199.10555 and s. 220.1845, which may not exceed a total of $2
2691	million in tax credits annually.
2692	(9)  On or before May 1, the Department of Environmental
2693	Protection shall inform each tax credit applicant that is
2694	subject to the January 31 annual application deadline of the
2695	applicant's eligibility status and the amount of any tax credit
2696	due. The department shall provide each eligible tax credit
2697	applicant with a tax credit certificate that must be submitted
2698	with its tax return to the Department of Revenue to claim the
2699	tax credit or be transferred pursuant to s. 199.10555(1)(g) or
2700	s. 220.1845(1)(g)(f). The May 1 deadline for annual site
2701	rehabilitation tax credit certificate awards shall not apply to
2702	any tax credit application for which the department has issued a
2703	notice of deficiency pursuant to subsection (8). The department
2704	shall respond within 90 days after receiving a response from the
2705	tax credit applicant to such a notice of deficiency. Credits may
2706	not result in the payment of refunds if total credits exceed the
2707	amount of tax owed.
2708	(10)  For solid waste removal, new health care facility or
2709	health care provider, and affordable housing tax credit
2710	applications, the Department of Environmental Protection shall
2711	inform the applicant of the department's determination within 90
2712	days after the application is deemed complete. Each eligible tax
2713	credit applicant shall be informed of the amount of its tax
2714	credit and provided with a tax credit certificate that must be
2715	submitted with its tax return to the Department of Revenue to
2716	claim the tax credit or be transferred pursuant to s.
2717	199.10555(1)(g) or s. 220.1845(1)(g)(f). Credits may not result
2718	in the payment of refunds if total credits exceed the amount of
2719	tax owed.
2720	(14)(a)  A tax credit applicant who receives state-funded
2721	site rehabilitation under s. 376.3078(3) for rehabilitation of a
2722	drycleaning-solvent-contaminated site is ineligible to receive a
2723	tax credit under s. 199.10555 or s. 220.1845 for costs incurred
2724	by the tax credit applicant in conjunction with the
2725	rehabilitation of that site during the same time period that
2726	state-administered site rehabilitation was underway.
2727	Section 42.  Transitional rules.-
2728	(1)  For the first tax year beginning on or after January
2729	1, 2011, a taxpayer that filed a Florida corporate income tax
2730	return in the preceding tax year and is a member of a water's
2731	edge group shall compute its income together with all members of
2732	its water's edge group and file a combined Florida corporate
2733	income tax return with all members of its water's edge group.
2734	(2)  An affiliated group of corporations that filed a
2735	Florida consolidated corporate income tax return pursuant to an
2736	election provided in s. 220.131, Florida Statutes, shall cease
2737	filing a Florida consolidated return for tax years beginning on
2738	or after January 1, 2011, and shall file a combined Florida
2739	corporate income tax return with all members of its water's edge
2740	group.
2741	(3)  An affiliated group of corporations that filed a
2742	Florida consolidated corporate income tax return pursuant to the
2743	election in s. 220.131(1), Florida Statutes (1985), which
2744	allowed the affiliated group to make an election within 90 days
2745	after December 20, 1984, or upon filing the taxpayer's first
2746	return after December 20, 1984, whichever is later, shall cease
2747	filing a Florida consolidated corporate income tax return using
2748	that method for tax years beginning on or after January 1, 2011,
2749	and shall file a combined Florida corporate income tax return
2750	with all members of its water's edge group.
2751	(4)  Taxpayers that are not members of a water's edge group
2752	remain subject to chapter 220, Florida Statutes, and shall file
2753	a separate Florida corporate income tax return as previously
2754	required.
2755	(5)  For the tax years beginning on or after January 1,
2756	2011, a tax return for a member of a water's edge group must be
2757	a combined Florida corporate income tax return that includes tax
2758	information for all members of the water's edge group. The tax
2759	return must be filed by a member that has a nexus with this
2760	state.
2761	Section 43.  Of the funds recaptured pursuant to this act,
2762	the sum of $50 million is appropriated from the General Revenue
2763	Fund to the State University System for workforce education, to
2764	be allocated by the Board of Governors; the sum of $50 million
2765	is appropriated from the General Revenue Fund to community
2766	colleges for workforce education, to be allocated by the State
2767	Board of Education; and the remainder of such funds, as
2768	determined by the Revenue Estimating Conference, shall be
2769	appropriated from the General Revenue Fund and allocated as
2770	provided in the General Appropriations Act to the various school
2771	districts to reduce the required local effort millage.
2772	Section 44.  Section 220.131, Florida Statutes, is
2773	repealed.
2774	Section 45.  (1)  The funds provided from the
2775	implementation of this act shall be deposited annually into the
2776	Educational Enhancement Trust Fund and appropriated from the
2777	fund as follows:
2778	(a)  Twenty-five percent to the Board of Governors of the
2779	State University System for allocation to state universities.
2780	(b)  Twenty-five percent to the Department of Education for
2781	allocation to community colleges.
2782	(c)  Twenty-five percent to the Department of Education for
2783	allocation to school districts for K-12 education.
2784	(d)  Twenty-five percent to the Agency for Workforce
2785	Innovation for allocation to early learning coalitions under the
2786	Voluntary Prekindergarten Education Program.
2787	(2)  It is the intent of the Legislature that the revenue
2788	generated from collections derived from the Millionaire's Tax
2789	Act shall be used specifically for enhancements to higher
2790	education, K-12 education, and prekindergarten education in this
2791	state and shall not supplant any general revenue appropriations
2792	for such higher education, K-12 education, and prekindergarten
2793	education.
2794	(3)  Each entity allocated funds pursuant to this section
2795	shall determine how best to expend the additional enhancement
2796	funds appropriated to such entity pursuant to this section.
2797	Section 46.  Except as otherwise expressly provided in this
2798	act, this act shall take effect July 1, 2010.

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