Florida Senate - 2011                             CS for SB 1998
       
       
       
       By the Committees on Budget Subcommittee on Finance and Tax; and
       Budget Subcommittee on Finance and Tax
       
       
       
       593-02613-11                                          20111998c1
    1                        A bill to be entitled                      
    2         An act relating to the corporate income tax; amending
    3         s. 220.03, F.S.; providing for the adoption of the
    4         2011 version of the Internal Revenue Code; amending s.
    5         220.13, F.S.; specifying the treatment by this state
    6         of certain depreciation and expensing of assets that
    7         are allowed for federal income tax purposes;
    8         authorizing the executive director of the Department
    9         of Revenue to adopt emergency rules; providing for
   10         retroactive application; providing an effective date.
   11  
   12  Be It Enacted by the Legislature of the State of Florida:
   13  
   14         Section 1. Paragraph (n) of subsection (1) and subsection
   15  (2) of section 220.03, Florida Statutes, are amended to read:
   16         220.03 Definitions.—
   17         (1) SPECIFIC TERMS.—When used in this code, and when not
   18  otherwise distinctly expressed or manifestly incompatible with
   19  the intent thereof, the following terms shall have the following
   20  meanings:
   21         (n) “Internal Revenue Code” means the United States
   22  Internal Revenue Code of 1986, as amended and in effect on
   23  January 1, 2011 2010, except as provided in subsection (3).
   24         (2) DEFINITIONAL RULES.—When used in this code and neither
   25  otherwise distinctly expressed nor manifestly incompatible with
   26  the intent thereof:
   27         (a) The word “corporation” or “taxpayer” shall be deemed to
   28  include the words “and its successors and assigns” as if these
   29  words, or words of similar import, were expressed;
   30         (b) Any term used in any section of this code with respect
   31  to the application of, or in connection with, the provisions of
   32  any other section of this code shall have the same meaning as in
   33  such other section; and
   34         (c) Any term used in this code shall have the same meaning
   35  as when used in a comparable context in the Internal Revenue
   36  Code and other statutes of the United States relating to federal
   37  income taxes, as such code and statutes are in effect on January
   38  1, 2011 2010. However, if subsection (3) is implemented, the
   39  meaning of any term shall be taken at the time the term is
   40  applied under this code.
   41         Section 2. Paragraph (e) of subsection (1) of section
   42  220.13, Florida Statutes, is amended to read:
   43         220.13 “Adjusted federal income” defined.—
   44         (1) The term “adjusted federal income” means an amount
   45  equal to the taxpayer’s taxable income as defined in subsection
   46  (2), or such taxable income of more than one taxpayer as
   47  provided in s. 220.131, for the taxable year, adjusted as
   48  follows:
   49         (e) Adjustments related to the Federal Economic Stimulus
   50  Act of 2008, and the American Recovery and Reinvestment Act of
   51  2009, the Small Business Jobs Act of 2010, and the Tax Relief,
   52  Unemployment Insurance Reauthorization, and Job Creation Act of
   53  2010.—Taxpayers shall be required to make the adjustments
   54  prescribed in this paragraph for Florida tax purposes in
   55  relation to certain tax benefits received pursuant to the
   56  Economic Stimulus Act of 2008, and the American Recovery and
   57  Reinvestment Act of 2009, the Small Business Jobs Act of 2010,
   58  and the Tax Relief, Unemployment Insurance Reauthorization, and
   59  Job Creation Act of 2010.
   60         1. There shall be added to such taxable income an amount
   61  equal to 100 percent of any amount deducted for federal income
   62  tax purposes as bonus depreciation for the taxable year pursuant
   63  to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
   64  amended by s. 103 of Pub. L. No. 110-185, and s. 1201 of Pub. L.
   65  No. 111-5, s. 2022 of Pub. L. No. 111-240, and s. 401 of Pub. L.
   66  No. 111-312, for property placed in service after December 31,
   67  2007, and before January 1, 2013 2010. For the taxable year and
   68  for each of the 6 subsequent taxable years, there shall be
   69  subtracted from such taxable income an amount equal to one
   70  seventh of the amount by which taxable income was increased
   71  pursuant to this subparagraph, notwithstanding any sale or other
   72  disposition of the property that is the subject of the
   73  adjustments and regardless of whether such property remains in
   74  service in the hands of the taxpayer.
   75         2. There shall be added to such taxable income an amount
   76  equal to 100 percent of any amount in excess of $128,000
   77  deducted for federal income tax purposes for the taxable year
   78  pursuant to s. 179 of the Internal Revenue Code of 1986, as
   79  amended by s. 102 of Pub. L. No. 110-185, and s. 1202 of Pub. L.
   80  No. 111-5, s. 2021 of Pub. L. No. 111-240, and s. 402 of Pub. L.
   81  No. 111-312, for taxable years beginning after December 31,
   82  2007, and before January 1, 2013 2010. For the taxable year and
   83  for each of the 6 subsequent taxable years, there shall be
   84  subtracted from such taxable income one-seventh of the amount by
   85  which taxable income was increased pursuant to this
   86  subparagraph, notwithstanding any sale or other disposition of
   87  the property that is the subject of the adjustments and
   88  regardless of whether such property remains in service in the
   89  hands of the taxpayer.
   90         3. There shall be added to such taxable income an amount
   91  equal to the amount of deferred income not included in such
   92  taxable income pursuant to s. 108(i)(1) of the Internal Revenue
   93  Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
   94  shall be subtracted from such taxable income an amount equal to
   95  the amount of deferred income included in such taxable income
   96  pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
   97  as amended by s. 1231 of Pub. L. No. 111-5.
   98         4. Subtractions available under this paragraph may be
   99  transferred to the surviving or acquiring entity following a
  100  merger or acquisition and used in the same manner and with the
  101  same limitations as specified by this paragraph.
  102         5. The additions and subtractions specified in this
  103  paragraph are intended to adjust taxable income for Florida tax
  104  purposes, and, notwithstanding any other provision of this code,
  105  such additions and subtractions shall be permitted to change a
  106  taxpayer’s net operating loss for Florida tax purposes.
  107         Section 3. (1) The executive director of the Department of
  108  Revenue is authorized, and all conditions are deemed met, to
  109  adopt emergency rules under ss. 120.536(1) and 120.54(4),
  110  Florida Statutes, for the purpose of implementing this act.
  111         (2) Notwithstanding any other provision of law, the
  112  emergency rules shall remain in effect for 6 months after they
  113  are adopted and may be renewed during the pendency of procedures
  114  to adopt permanent rules addressing the subject of the emergency
  115  rules.
  116         Section 4. This act shall take effect upon becoming a law,
  117  and shall operate retroactively to January 1, 2011.