| 1 | A bill to be entitled |
| 2 | An act relating to the corporate income tax; amending s. |
| 3 | 220.03, F.S.; providing for the adoption of the 2011 |
| 4 | version of the Internal Revenue Code; amending s. 220.13, |
| 5 | F.S.; specifying the treatment by this state of certain |
| 6 | depreciation and expensing of assets that are allowed for |
| 7 | federal income tax purposes; authorizing the executive |
| 8 | director of the Department of Revenue to adopt emergency |
| 9 | rules; providing an appropriation; providing for reversion |
| 10 | and reappropriation; providing for retroactive |
| 11 | application; providing an effective date. |
| 12 |
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| 13 | Be It Enacted by the Legislature of the State of Florida: |
| 14 |
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| 15 | Section 1. Paragraph (n) of subsection (1) and subsection |
| 16 | (2) of section 220.03, Florida Statutes, are amended to read: |
| 17 | 220.03 Definitions.- |
| 18 | (1) SPECIFIC TERMS.-When used in this code, and when not |
| 19 | otherwise distinctly expressed or manifestly incompatible with |
| 20 | the intent thereof, the following terms shall have the following |
| 21 | meanings: |
| 22 | (n) "Internal Revenue Code" means the United States |
| 23 | Internal Revenue Code of 1986, as amended and in effect on |
| 24 | January 1, 2011 2010, except as provided in subsection (3). |
| 25 | (2) DEFINITIONAL RULES.-When used in this code and neither |
| 26 | otherwise distinctly expressed nor manifestly incompatible with |
| 27 | the intent thereof: |
| 28 | (a) The word "corporation" or "taxpayer" shall be deemed |
| 29 | to include the words "and its successors and assigns" as if |
| 30 | these words, or words of similar import, were expressed; |
| 31 | (b) Any term used in any section of this code with respect |
| 32 | to the application of, or in connection with, the provisions of |
| 33 | any other section of this code shall have the same meaning as in |
| 34 | such other section; and |
| 35 | (c) Any term used in this code shall have the same meaning |
| 36 | as when used in a comparable context in the Internal Revenue |
| 37 | Code and other statutes of the United States relating to federal |
| 38 | income taxes, as such code and statutes are in effect on January |
| 39 | 1, 2011 2010. However, if subsection (3) is implemented, the |
| 40 | meaning of any term shall be taken at the time the term is |
| 41 | applied under this code. |
| 42 | Section 2. Paragraph (e) of subsection (1) of section |
| 43 | 220.13, Florida Statutes, is amended to read: |
| 44 | 220.13 "Adjusted federal income" defined.- |
| 45 | (1) The term "adjusted federal income" means an amount |
| 46 | equal to the taxpayer's taxable income as defined in subsection |
| 47 | (2), or such taxable income of more than one taxpayer as |
| 48 | provided in s. 220.131, for the taxable year, adjusted as |
| 49 | follows: |
| 50 | (e) Adjustments related to the Federal Economic Stimulus |
| 51 | Act of 2008, and the American Recovery and Reinvestment Act of |
| 52 | 2009, the Small Business Jobs Act of 2010, and the Tax Relief, |
| 53 | Unemployment Insurance Reauthorization, and Job Creation Act of |
| 54 | 2010.-Taxpayers shall be required to make the adjustments |
| 55 | prescribed in this paragraph for Florida tax purposes in |
| 56 | relation to certain tax benefits received pursuant to the |
| 57 | Economic Stimulus Act of 2008, and the American Recovery and |
| 58 | Reinvestment Act of 2009, the Small Business Jobs Act of 2010, |
| 59 | and the Tax Relief, Unemployment Insurance Reauthorization, and |
| 60 | Job Creation Act of 2010. |
| 61 | 1. There shall be added to such taxable income an amount |
| 62 | equal to 100 percent of any amount deducted for federal income |
| 63 | tax purposes as bonus depreciation for the taxable year pursuant |
| 64 | to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as |
| 65 | amended by s. 103 of Pub. L. No. 110-185, and s. 1201 of Pub. L. |
| 66 | No. 111-5, s. 2022 of Pub. L. No. 111-240, and s. 401 of Pub. L. |
| 67 | No. 111-312, for property placed in service after December 31, |
| 68 | 2007, and before January 1, 2013 2010. For the taxable year and |
| 69 | for each of the 6 subsequent taxable years, there shall be |
| 70 | subtracted from such taxable income an amount equal to one- |
| 71 | seventh of the amount by which taxable income was increased |
| 72 | pursuant to this subparagraph, notwithstanding any sale or other |
| 73 | disposition of the property that is the subject of the |
| 74 | adjustments and regardless of whether such property remains in |
| 75 | service in the hands of the taxpayer. |
| 76 | 2. There shall be added to such taxable income an amount |
| 77 | equal to 100 percent of any amount in excess of $128,000 |
| 78 | deducted for federal income tax purposes for the taxable year |
| 79 | pursuant to s. 179 of the Internal Revenue Code of 1986, as |
| 80 | amended by s. 102 of Pub. L. No. 110-185, and s. 1202 of Pub. L. |
| 81 | No. 111-5, s. 2021 of Pub. L. No. 111-240, and s. 402 of Pub. L. |
| 82 | No. 111-312, for taxable years beginning after December 31, |
| 83 | 2007, and before January 1, 2013 2010. For the taxable year and |
| 84 | for each of the 6 subsequent taxable years, there shall be |
| 85 | subtracted from such taxable income one-seventh of the amount by |
| 86 | which taxable income was increased pursuant to this |
| 87 | subparagraph, notwithstanding any sale or other disposition of |
| 88 | the property that is the subject of the adjustments and |
| 89 | regardless of whether such property remains in service in the |
| 90 | hands of the taxpayer. |
| 91 | 3. There shall be added to such taxable income an amount |
| 92 | equal to the amount of deferred income not included in such |
| 93 | taxable income pursuant to s. 108(i)(1) of the Internal Revenue |
| 94 | Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There |
| 95 | shall be subtracted from such taxable income an amount equal to |
| 96 | the amount of deferred income included in such taxable income |
| 97 | pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986, |
| 98 | as amended by s. 1231 of Pub. L. No. 111-5. |
| 99 | 4. Subtractions available under this paragraph may be |
| 100 | transferred to the surviving or acquiring entity following a |
| 101 | merger or acquisition and used in the same manner and with the |
| 102 | same limitations as specified by this paragraph. |
| 103 | 5. The additions and subtractions specified in this |
| 104 | paragraph are intended to adjust taxable income for Florida tax |
| 105 | purposes, and, notwithstanding any other provision of this code, |
| 106 | such additions and subtractions shall be permitted to change a |
| 107 | taxpayer's net operating loss for Florida tax purposes. |
| 108 | Section 3. (1) The executive director of the Department |
| 109 | of Revenue is authorized, and all conditions are deemed met, to |
| 110 | adopt emergency rules under ss. 120.536(1) and 120.54(4), |
| 111 | Florida Statutes, for the purpose of implementing this act. |
| 112 | (2) Notwithstanding any other provision of law, the |
| 113 | emergency rules shall remain in effect for 6 months after |
| 114 | adoption and may be renewed during the pendency of procedures to |
| 115 | adopt permanent rules addressing the subject of the emergency |
| 116 | rules. |
| 117 | Section 4. For the 2010-2011 fiscal year, the sum of |
| 118 | $99,740 in nonrecurring funds is appropriated from the General |
| 119 | Revenue Fund to the Department of Revenue for purposes of |
| 120 | implementing this act. Funds remaining unexpended or |
| 121 | unencumbered from this appropriation as of June 30, 2011, shall |
| 122 | revert and be reappropriated for the same purpose in the 2011- |
| 123 | 2012 fiscal year. |
| 124 | Section 5. This act shall take effect upon becoming a law |
| 125 | and shall operate retroactively to January 1, 2011. |