Florida Senate - 2011                      CS for CS for SB 1998
       
       
       
       By the Committees on Budget; Budget Subcommittee on Finance and
       Tax; and Budget Subcommittee on Finance and Tax; and Senators
       Alexander and Bogdanoff
       
       
       576-04620-11                                          20111998c2
    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 an
   10         appropriation; providing for the reversion of funds
   11         and reappropriation; providing for retroactive
   12         application; providing an effective date.
   13  
   14  Be It Enacted by the Legislature of the State of Florida:
   15  
   16         Section 1. Paragraph (n) of subsection (1) and subsection
   17  (2) of section 220.03, Florida Statutes, are amended to read:
   18         220.03 Definitions.—
   19         (1) SPECIFIC TERMS.—When used in this code, and when not
   20  otherwise distinctly expressed or manifestly incompatible with
   21  the intent thereof, the following terms shall have the following
   22  meanings:
   23         (n) “Internal Revenue Code” means the United States
   24  Internal Revenue Code of 1986, as amended and in effect on
   25  January 1, 2011 2010, except as provided in subsection (3).
   26         (2) DEFINITIONAL RULES.—When used in this code and neither
   27  otherwise distinctly expressed nor manifestly incompatible with
   28  the intent thereof:
   29         (a) The word “corporation” or “taxpayer” shall be deemed to
   30  include the words “and its successors and assigns” as if these
   31  words, or words of similar import, were expressed;
   32         (b) Any term used in any section of this code with respect
   33  to the application of, or in connection with, the provisions of
   34  any other section of this code shall have the same meaning as in
   35  such other section; and
   36         (c) Any term used in this code shall have the same meaning
   37  as when used in a comparable context in the Internal Revenue
   38  Code and other statutes of the United States relating to federal
   39  income taxes, as such code and statutes are in effect on January
   40  1, 2011 2010. However, if subsection (3) is implemented, the
   41  meaning of any term shall be taken at the time the term is
   42  applied under this code.
   43         Section 2. Paragraph (e) of subsection (1) of section
   44  220.13, Florida Statutes, is amended to read:
   45         220.13 “Adjusted federal income” defined.—
   46         (1) The term “adjusted federal income” means an amount
   47  equal to the taxpayer’s taxable income as defined in subsection
   48  (2), or such taxable income of more than one taxpayer as
   49  provided in s. 220.131, for the taxable year, adjusted as
   50  follows:
   51         (e) Adjustments related to the Federal Economic Stimulus
   52  Act of 2008, and the American Recovery and Reinvestment Act of
   53  2009, the Small Business Jobs Act of 2010, and the Tax Relief,
   54  Unemployment Insurance Reauthorization, and Job Creation Act of
   55  2010.—Taxpayers shall be required to make the adjustments
   56  prescribed in this paragraph for Florida tax purposes in
   57  relation to certain tax benefits received pursuant to the
   58  Economic Stimulus Act of 2008, and the American Recovery and
   59  Reinvestment Act of 2009, the Small Business Jobs Act of 2010,
   60  and the Tax Relief, Unemployment Insurance Reauthorization, and
   61  Job Creation Act of 2010.
   62         1. There shall be added to such taxable income an amount
   63  equal to 100 percent of any amount deducted for federal income
   64  tax purposes as bonus depreciation for the taxable year pursuant
   65  to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
   66  amended by s. 103 of Pub. L. No. 110-185, and s. 1201 of Pub. L.
   67  No. 111-5, s. 2022 of Pub. L. No. 111-240, and s. 401 of Pub. L.
   68  No. 111-312, for property placed in service after December 31,
   69  2007, and before January 1, 2013 2010. For the taxable year and
   70  for each of the 6 subsequent taxable years, there shall be
   71  subtracted from such taxable income an amount equal to one
   72  seventh of the amount by which taxable income was increased
   73  pursuant to this subparagraph, notwithstanding any sale or other
   74  disposition of the property that is the subject of the
   75  adjustments and regardless of whether such property remains in
   76  service in the hands of the taxpayer.
   77         2. There shall be added to such taxable income an amount
   78  equal to 100 percent of any amount in excess of $128,000
   79  deducted for federal income tax purposes for the taxable year
   80  pursuant to s. 179 of the Internal Revenue Code of 1986, as
   81  amended by s. 102 of Pub. L. No. 110-185, and s. 1202 of Pub. L.
   82  No. 111-5, s. 2021 of Pub. L. No. 111-240, and s. 402 of Pub. L.
   83  No. 111-312, for taxable years beginning after December 31,
   84  2007, and before January 1, 2013 2010. For the taxable year and
   85  for each of the 6 subsequent taxable years, there shall be
   86  subtracted from such taxable income one-seventh of the amount by
   87  which taxable income was increased pursuant to this
   88  subparagraph, notwithstanding any sale or other disposition of
   89  the property that is the subject of the adjustments and
   90  regardless of whether such property remains in service in the
   91  hands of the taxpayer.
   92         3. There shall be added to such taxable income an amount
   93  equal to the amount of deferred income not included in such
   94  taxable income pursuant to s. 108(i)(1) of the Internal Revenue
   95  Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
   96  shall be subtracted from such taxable income an amount equal to
   97  the amount of deferred income included in such taxable income
   98  pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
   99  as amended by s. 1231 of Pub. L. No. 111-5.
  100         4. Subtractions available under this paragraph may be
  101  transferred to the surviving or acquiring entity following a
  102  merger or acquisition and used in the same manner and with the
  103  same limitations as specified by this paragraph.
  104         5. The additions and subtractions specified in this
  105  paragraph are intended to adjust taxable income for Florida tax
  106  purposes, and, notwithstanding any other provision of this code,
  107  such additions and subtractions shall be permitted to change a
  108  taxpayer’s net operating loss for Florida tax purposes.
  109         Section 3. (1) The executive director of the Department of
  110  Revenue is authorized, and all conditions are deemed met, to
  111  adopt emergency rules under ss. 120.536(1) and 120.54(4),
  112  Florida Statutes, for the purpose of implementing this act.
  113         (2) Notwithstanding any other provision of law, the
  114  emergency rules shall remain in effect for 6 months after they
  115  are adopted and may be renewed during the pendency of procedures
  116  to adopt permanent rules addressing the subject of the emergency
  117  rules.
  118         Section 4. For the 2010-2011 fiscal year, the sum of
  119  $99,740 in nonrecurring funds is appropriated from the General
  120  Revenue Fund to the Department of Revenue for purposes of
  121  implementing this act. Funds remaining unexpended or
  122  unencumbered from this appropriation as of June 30, 2011, shall
  123  revert and be reappropriated for the same purpose in the 2011
  124  2012 fiscal year.
  125         Section 5. This act shall take effect upon becoming a law,
  126  and shall operate retroactively to January 1, 2011.