Florida Senate - 2011                                    SB 1542
       By Senator Siplin
       19-01078-11                                           20111542__
    1                        A bill to be entitled                      
    2         An act relating to corporate income tax credits;
    3         creating s. 220.1877, F.S.; providing legislative
    4         findings and purposes; providing definitions;
    5         establishing the Florida Public School Tax Credit
    6         Program; providing for credits against the corporate
    7         income tax for contributions to public schools for
    8         certain purposes; providing limitations; authorizing
    9         public schools to determine how to use undesignated
   10         contributions; requiring public schools to report
   11         certain information to the Department of Revenue;
   12         limiting the total annual amount of credits; requiring
   13         the department to apportion a dollar amount of tax
   14         credits to each school board receiving eligible
   15         contributions; providing a formula for apportioning
   16         the dollar amount of tax credits to each school board
   17         for allocation by the department to taxpayers applying
   18         for corporate income tax credits; providing
   19         requirements for taxpayers filing consolidated
   20         returns; providing procedures and requirements for
   21         rescinding credits; providing for use of rescinded
   22         credits by other taxpayers; specifying certain
   23         taxpayers as ineligible to receive the corporate tax
   24         credit; specifying administrative rules for use and
   25         application of the credit; requiring the Department of
   26         Revenue and the State Board of Education to adopt
   27         rules; providing requirements for deposits of eligible
   28         contributions; providing criteria for preservation of
   29         tax credits under certain circumstances; providing a
   30         limitation; providing an effective date.
   32  Be It Enacted by the Legislature of the State of Florida:
   34         Section 1. Section 220.1877, Florida Statutes, is created
   35  to read:
   36         220.1877 Credits for contributions to public schools for
   37  public school expenses.—
   38         (1) FINDINGS AND PURPOSE.—
   39         (a) The Legislature finds that:
   40         1. It has the inherent power to determine subjects of
   41  taxation for general or particular public purposes.
   42         2. Expanding educational opportunities and improving the
   43  quality of educational services within the state are valid
   44  public purposes that the Legislature may promote using its
   45  sovereign power to determine subjects of taxation and exemptions
   46  from taxation.
   47         3. Expanding educational opportunities and the healthy
   48  competition they promote are critical to improving the quality
   49  of education in the state and to ensuring that all children
   50  receive the high-quality education to which they are entitled.
   51         (b) The purpose of this section is to:
   52         1. Enable taxpayers to make private, voluntary
   53  contributions to public schools in order to promote the general
   54  welfare.
   55         2. Enable children in this state to achieve a greater level
   56  of excellence in their education.
   57         3. Improve the quality of education in this state, both by
   58  expanding educational opportunities for children and by creating
   59  incentives for public schools to achieve excellence.
   60         4. Allow corporations to claim education tax credits for
   61  direct payments to public schools for educational expenses,
   62  special assistance, tutoring, Foundation for Florida’s Future,
   63  mentoring, extracurricular activities, character education
   64  programs, and pay-to-play fees associated with mental and
   65  physical student development.
   66         (2) DEFINITIONS.—As used in this section, the term:
   67         (a) “Department” means the Department of Revenue.
   68         (b) “Eligible contribution” means a monetary contribution
   69  from a taxpayer, subject to the restrictions provided in this
   70  section, to a public school.
   71         (c) “Public school” means a school in this state that
   72  provides education to students in any grades K-12 in a public
   73  school district.
   74         (3) PROGRAM.—The Florida Public School Tax Credit Program
   75  is established.
   78         (a)1. There is allowed a credit of 100 percent of an
   79  eligible contribution against any tax due for a taxable year
   80  under this chapter. The credit is allowed against the taxes
   81  imposed by this chapter for the amount of any fees paid or cash
   82  contributions made by a taxpayer during the taxable year to a
   83  public school located in this state for the support of
   84  educational expenses, special assistance, tutoring, the
   85  Foundation for Florida’s Future, mentoring, extracurricular
   86  activities, character education programs, and pay-to-play fees.
   87  The taxpayer may designate the specific use to which the
   88  contribution must be applied. However, such a credit may not
   89  exceed 75 percent of the tax due under this chapter for the
   90  taxable year, after the application of any other allowable
   91  credits by the taxpayer. The credit granted by this section
   92  shall be reduced by the difference between the amount of federal
   93  corporate income tax taking into account the credit granted by
   94  this section and the amount of federal corporate income tax
   95  without application of the credit granted by this section.
   96         2. Each public school that receives contributions that are
   97  not designated for a specific purpose shall determine how the
   98  contributions are used. The school advisory council may make
   99  recommendations as to how best to apply undesignated
  100  contributions.
  101         3. A public school that receives fees or a cash
  102  contribution shall report to the department, in a form
  103  prescribed by the department:
  104         a. The total number of fee and cash contribution payments
  105  received during the previous calendar year.
  106         b. The total dollar amount of fees and contributions
  107  received during the previous calendar year.
  108         c. The total dollar amount from fees and contributions
  109  received that were spent by the public school during the
  110  previous calendar year.
  111         (b) For each state fiscal year, the total amount of tax
  112  credits and carryforward of tax credits which may be granted
  113  under this section and s. 624.51055 is $118 million. The
  114  department shall apportion to each district school board the
  115  total dollar amount of tax credits available to taxpayers who
  116  make eligible contributions to a public school in the school
  117  board’s district pursuant to subparagraph (a)1. The dollar
  118  amount apportioned to each school board shall be calculated by
  119  multiplying each school district’s percentage of the previous
  120  fiscal year’s statewide total number of unweighted full-time
  121  equivalent students times $118 million. The applicable dollar
  122  amount resulting from the calculation for each school district
  123  shall be apportioned to the school board for allocation by the
  124  department to taxpayers in accordance with rules adopted under
  125  subsection (5).
  126         (c) A taxpayer who files a Florida consolidated return as a
  127  member of an affiliated group pursuant to s. 220.131(1) may be
  128  allowed the credit on a consolidated return basis; however, the
  129  total credit taken by the affiliated group is subject to the
  130  limitation established under paragraph (a).
  131         (d) Effective for tax years beginning January 1, 2012, a
  132  taxpayer may rescind all or part of its allocated tax credit
  133  under this section. The amount rescinded shall become available
  134  for purposes of the cap for that state fiscal year under this
  135  section to an eligible taxpayer as approved by the department if
  136  the taxpayer receives notice from the department that the
  137  rescission has been accepted by the department and the taxpayer
  138  has not previously rescinded any or all of its tax credit
  139  allocation under this section more than once in the previous 3
  140  tax years. Any amount rescinded under this paragraph shall
  141  become available to an eligible taxpayer on a first-come, first
  142  served basis based on tax credit applications received after the
  143  date the rescission is accepted by the department.
  144         (e) A taxpayer who is eligible to receive the credit
  145  provided for in s. 624.51055 is not eligible to receive the
  146  credit provided by this section.
  147         (5) ADMINISTRATION; RULES.—
  148         (a) If the credit granted pursuant to this section is not
  149  fully used in any one year because of insufficient tax liability
  150  on the part of the corporation, the unused amount may be carried
  151  forward for a period not to exceed 3 years; however, any
  152  taxpayer that seeks to carry forward an unused amount of tax
  153  credit must submit an application for allocation of tax credits
  154  or carryforward credits as required in paragraph (d) in the year
  155  that the taxpayer intends to use the carryforward. This
  156  carryforward applies to all approved contributions made after
  157  January 1, 2012. A taxpayer may not convey, assign, or transfer
  158  the credit authorized by this section to another entity unless
  159  all of the assets of the taxpayer are conveyed, assigned, or
  160  transferred in the same transaction.
  161         (b) An application for a tax credit pursuant to this
  162  section shall be submitted to the department on forms
  163  established by rule of the department.
  164         (c) The department and the Department of Education shall
  165  develop a cooperative agreement to assist in the administration
  166  of this section.
  167         (d) The department shall adopt rules necessary to
  168  administer this section, including rules establishing
  169  application forms and procedures and governing the allocation of
  170  tax credits and carryforward credits under this section on a
  171  first-come, first-served basis.
  172         (e) The State Board of Education shall adopt rules to
  173  administer this section as it relates to the roles of the
  174  Department of Education and the Commissioner of Education.
  175         (6) DEPOSITS OF ELIGIBLE CONTRIBUTIONS.—All eligible
  176  contributions received by a public school shall be deposited in
  177  a manner consistent with s. 17.57(2).
  178         (7) PRESERVATION OF CREDIT.—If any provision or portion of
  179  subsection (4) or the application thereof to any person or
  180  circumstance is held unconstitutional by any court or is
  181  otherwise declared invalid, the unconstitutionality or
  182  invalidity shall not affect any credit earned under subsection
  183  (4) by any taxpayer with respect to any contribution paid to a
  184  public school before the date of a determination of
  185  unconstitutionality or invalidity. Such credit shall be allowed
  186  at such time and in such a manner as if a determination of
  187  unconstitutionality or invalidity had not been made, provided
  188  that nothing in this subsection by itself or in combination with
  189  any other provision of law shall result in the allowance of any
  190  credit to any taxpayer in excess of one dollar of credit for
  191  each dollar paid to a public school.
  192         Section 2. This act shall take effect July 1, 2011.