Florida Senate - 2014 COMMITTEE AMENDMENT Bill No. SB 110 Ì344052xÎ344052 LEGISLATIVE ACTION Senate . House Comm: RCS . 12/10/2013 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Domestic Security (Bullard) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Section 220.197, Florida Statutes, is created to 6 read: 7 220.197 Tax credit for employment of veterans.— 8 (1) This section may be cited as the “Florida Veterans 9 Employment Act.” 10 (2) A business qualifies for a one-time credit against the 11 tax imposed by this chapter in the amount of $5,000 per 12 individual for hiring a veteran, as defined in s. 1.01, after 13 the business has paid $5,000 in gross salary to the veteran. 14 Veterans for whom the credit is claimed must first begin 15 employment in the operations of the qualifying business on or 16 after January 1, 2015, and perform duties in connection with the 17 operations of the business for an average of at least 36 hours 18 per week. Veterans who have been previously employed by the 19 qualifying business or any other member of the same controlled 20 group of corporations of which the qualifying business is a 21 member may not be claimed for the tax credit. As used in this 22 section, the term “controlled group of corporations” has the 23 same meaning as provided in 26 U.S.C. s. 1563(a). 24 (3) A qualifying business is eligible for an additional 25 one-time credit against the tax imposed by this chapter in the 26 amount of $5,000 per individual for hiring a veteran, as defined 27 in s. 1.01, after the business has paid an additional $5,000 in 28 gross salary to the veteran if such veteran has an official 29 letter from the United States Department of Veterans Affairs 30 stating that he or she has a service-connected disability. 31 (4) In order to claim a tax credit under this section, a 32 qualifying business must submit an application and receive 33 approval from the department to claim the credit. Applications 34 for credit under subsection (3) must include a copy of the 35 veteran’s official letter from the United States Department of 36 Veterans Affairs stating that the veteran has a service 37 connected disability. Qualified applicants shall be approved on 38 a first-come, first-served basis, based on the date the 39 completed application is received by the department. The 40 department may not accept an incomplete application as a 41 placeholder for the completed application, and the submission of 42 such incomplete application does not secure a place in the 43 first-come, first-served approval process. 44 (5) The department may not approve more than $10 million in 45 tax credits per calendar year pursuant to this section. 46 (6) The department may adopt rules governing the manner and 47 form of application for the tax credits. The department may 48 establish guidelines for making an affirmative showing of 49 qualification for the tax credits under this section. 50 (5) This section expires December 31, 2019. However, a 51 qualifying business may carry forward any unused credit for up 52 to 2 taxable years after the year the credit is earned. 53 (6) This section applies to taxable years beginning on or 54 after January 1, 2015. 55 Section 2. Subsection (8) of section 220.02, Florida 56 Statutes, is amended to read: 57 220.02 Legislative intent.— 58 (8) It is the intent of the Legislature that credits 59 againsteitherthe corporate income tax or the franchise tax be 60 applied in the following order: those enumerated in s. 631.828, 61 those enumerated in s. 220.191, those enumerated in s. 220.181, 62 those enumerated in s. 220.183, those enumerated in s. 220.182, 63 those enumerated in s. 220.1895, those enumerated in s. 220.195, 64 those enumerated in s. 220.184, those enumerated in s. 220.186, 65 those enumerated in s. 220.1845, those enumerated in s. 220.19, 66 those enumerated in s. 220.185, those enumerated in s. 220.1875, 67 those enumerated in s. 220.192, those enumerated in s. 220.193, 68 those enumerated in s. 288.9916, those enumerated in s. 69 220.1899, those enumerated in s. 220.194,andthose enumerated 70 in s. 220.196, and those enumerated in s. 220.197. 71 Section 3. Paragraph (a) of subsection (1) of section 72 220.13, Florida Statutes, is amended to read: 73 220.13 “Adjusted federal income” defined.— 74 (1) The term “adjusted federal income” means an amount 75 equal to the taxpayer’s taxable income as defined in subsection 76 (2), or such taxable income of more than one taxpayer as 77 provided in s. 220.131, for the taxable year, adjusted as 78 follows: 79 (a) Additions.—There shall be added to such taxable income: 80 1. The amount of any tax upon or measured by income, 81 excluding taxes based on gross receipts or revenues, paid or 82 accrued as a liability to the District of Columbia or any state 83 of the United States which is deductible from gross income in 84 the computation of taxable income for the taxable year. 85 2. The amount of interest which is excluded from taxable 86 income under s. 103(a) of the Internal Revenue Code or any other 87 federal law, less the associated expenses disallowed in the 88 computation of taxable income under s. 265 of the Internal 89 Revenue Code or any other law, excluding 60 percent of any 90 amounts included in alternative minimum taxable income, as 91 defined in s. 55(b)(2) of the Internal Revenue Code, if the 92 taxpayer pays tax under s. 220.11(3). 93 3. In the case of a regulated investment company or real 94 estate investment trust, an amount equal to the excess of the 95 net long-term capital gain for the taxable year over the amount 96 of the capital gain dividends attributable to the taxable year. 97 4. That portion of the wages or salaries paid or incurred 98 for the taxable year which is equal to the amount of the credit 99 allowable for the taxable year under s. 220.181. This 100 subparagraph expiresshall expireon the date specified in s. 101 290.016 for the expiration of the Florida Enterprise Zone Act. 102 5. That portion of the ad valorem school taxes paid or 103 incurred for the taxable year which is equal to the amount of 104 the credit allowable for the taxable year under s. 220.182. This 105 subparagraph expiresshall expireon the date specified in s. 106 290.016 for the expiration of the Florida Enterprise Zone Act. 107 6. The amount taken as a credit under s. 220.195 which is 108 deductible from gross income in the computation of taxable 109 income for the taxable year. 110 7. That portion of assessments to fund a guaranty 111 association incurred for the taxable year which is equal to the 112 amount of the credit allowable for the taxable year. 113 8. In the case of a nonprofit corporation thatwhichholds 114 a pari-mutuel permit and which is exempt from federal income tax 115 as a farmers’ cooperative, an amount equal to the excess of the 116 gross income attributable to the pari-mutuel operations over the 117 attributable expenses for the taxable year. 118 9. The amount taken as a credit for the taxable year under 119 s. 220.1895. 120 10. Up to nine percent of the eligible basis of any 121 designated project which is equal to the credit allowable for 122 the taxable year under s. 220.185. 123 11. The amount taken as a credit for the taxable year under 124 s. 220.1875. The addition in this subparagraph is intended to 125 ensure that the same amount is not allowed for the tax purposes 126 of this state as both a deduction from income and a credit 127 against the tax. This addition is not intended to result in 128 adding the same expense back to income more than once. 129 12. The amount taken as a credit for the taxable year under 130 s. 220.192. 131 13. The amount taken as a credit for the taxable year under 132 s. 220.193. 133 14. Any portion of a qualified investment, as defined in s. 134 288.9913, which is claimed as a deduction by the taxpayer and 135 taken as a credit against income tax pursuant to s. 288.9916. 136 15. The costs to acquire a tax credit pursuant to s. 137 288.1254(5) whichthatare deducted from or otherwise reduce 138 federal taxable income for the taxable year. 139 16. The amount taken as a credit for the taxable year under 140pursuanttos. 220.194. 141 17. The amount taken as a credit for the taxable year under 142 s. 220.196. The addition in this subparagraph is intended to 143 ensure that the same amount is not allowed for the tax purposes 144 of this state as both a deduction from income and a credit 145 against the tax. The addition is not intended to result in 146 adding the same expense back to income more than once. 147 18. The amount taken as a credit for the taxable year under 148 s. 220.197. 149 Section 4. Emergency rules.— 150 (1) The executive director of the Department of Revenue is 151 authorized, and all conditions are deemed to be met, to adopt 152 emergency rules pursuant to ss. 120.536(1) and 120.54(4), 153 Florida Statutes, for the purpose of implementing this act. 154 (2) Notwithstanding any other provision of law, the 155 emergency rules adopted pursuant to subsection (1) remain in 156 effect for 6 months after adoption and may be renewed during the 157 pendency of procedures to adopt permanent rules addressing the 158 subject of the emergency rules. 159 (3) This section expires July 1, 2015. 160 Section 5. This act shall take effect July 1, 2014. 161 162 163 ================= T I T L E A M E N D M E N T ================ 164 And the title is amended as follows: 165 Delete everything before the enacting clause 166 and insert: 167 A bill to be entitled 168 An act relating to taxes on businesses; creating s. 169 220.197, F.S.; providing a short title; establishing a 170 tax credit for the hiring of veterans; providing 171 eligibility requirements; establishing an additional 172 credit for the hiring of disabled veterans; providing 173 an application process; providing a cap on the total 174 amount of tax credits allowed per year; authorizing 175 the Department of Revenue to adopt rules; authorizing 176 the department to establish guidelines for qualifying 177 credits; providing for expiration of the tax credits; 178 providing applicability; amending s. 220.02, F.S.; 179 revising the order in which credits against the 180 corporate income tax or franchise tax may be taken to 181 include the hiring of veterans; amending s. 220.13, 182 F.S.; revising the term “adjusted federal income” to 183 include certain tax credits taken relating to the 184 hiring of veterans; authorizing the executive director 185 of the department to adopt emergency rules; providing 186 for time of effect of emergency rules and for the 187 expiration of such rule authority; providing an 188 effective date.