Florida Senate - 2014 SB 110 By Senator Soto 14-00048-14 2014110__ 1 A bill to be entitled 2 An act relating to corporate income tax; creating s. 3 220.197, F.S.; providing a short title; establishing a 4 corporate income tax credit for the hiring of 5 veterans; providing eligibility requirements; 6 establishing an additional corporate income tax credit 7 for the hiring of disabled veterans; providing 8 eligibility requirements; authorizing the Department 9 of Revenue to adopt rules; authorizing the department 10 to determine guidelines for qualification of the tax 11 credits; providing for expiration of the tax credits; 12 amending s. 220.02, F.S.; revising the order in which 13 credits against the corporate income tax or franchise 14 tax may be taken to include the hiring of veterans; 15 amending s. 220.13, F.S.; redefining the term 16 “adjusted federal income” to include certain tax 17 credits taken relating to the hiring of veterans; 18 authorizing the executive director of the department 19 to adopt emergency rules; providing for time of effect 20 of emergency rules and for the expiration of such rule 21 authority; providing an effective date. 22 23 Be It Enacted by the Legislature of the State of Florida: 24 25 Section 1. Section 220.197, Florida Statutes, is created to 26 read: 27 220.197 Corporate income tax credits for employment of 28 veterans.— 29 (1) This section may be cited as the “Florida Veterans 30 Employment Act.” 31 (2) For tax years ending on or after December 31, 2013, a 32 business qualifies for a one-time corporate income tax credit 33 against the tax imposed by this chapter in the amount of $5,000 34 per individual for hiring a veteran, as defined in s. 1.01, 35 after the business has paid $5,000 in gross salary to the 36 veteran. Veterans for whom the credit is claimed must first 37 begin employment in the operations of the qualifying business on 38 or after July 1, 2013, and perform duties in connection with the 39 operations of the business on a full-time basis, which is deemed 40 to be for an average of at least 36 hours per week each month. 41 Veterans who have been previously employed by the qualifying 42 business or any other member of the same controlled group of 43 which the qualifying business is a member may not be claimed for 44 the credit. 45 (3) A qualifying business qualifies for an additional one 46 time corporate income tax credit of $5,000 per individual for 47 hiring a veteran, as defined in s. 1.01, after the business has 48 paid an additional $5,000 in gross salary to a veteran who: 49 (a) Has established the present existence of a service 50 connected disability, as defined in 38 U.S.C. s. 101(16), which 51 is compensable under public laws administered by the United 52 States Department of Veterans Affairs; or 53 (b) Is receiving disability retirement benefits from the 54 United States Department of Defense. 55 (4) The Department of Revenue may adopt rules governing the 56 manner and form of application for the tax credits. The 57 department may establish guidelines for making an affirmative 58 showing of qualification for the tax credits under this section. 59 (5) This section expires June 30, 2019. However, a 60 qualifying business that is awarded a credit under this section 61 may carry forward any unused credit for up to 2 years after such 62 award. 63 Section 2. Subsection (8) of section 220.02, Florida 64 Statutes, is amended to read: 65 220.02 Legislative intent.— 66 (8) It is the intent of the Legislature that credits 67 against
eitherthe corporate income tax or the franchise tax be 68 applied in the following order: those enumerated in s. 631.828, 69 those enumerated in s. 220.191, those enumerated in s. 220.181, 70 those enumerated in s. 220.183, those enumerated in s. 220.182, 71 those enumerated in s. 220.1895, those enumerated in s. 220.195, 72 those enumerated in s. 220.184, those enumerated in s. 220.186, 73 those enumerated in s. 220.1845, those enumerated in s. 220.19, 74 those enumerated in s. 220.185, those enumerated in s. 220.1875, 75 those enumerated in s. 220.192, those enumerated in s. 220.193, 76 those enumerated in s. 288.9916, those enumerated in s. 77 220.1899, those enumerated in s. 220.194, andthose enumerated 78 in s. 220.196, and those enumerated in s. 220.197. 79 Section 3. Paragraph (a) of subsection (1) of section 80 220.13, Florida Statutes, is amended to read: 81 220.13 “Adjusted federal income” defined.— 82 (1) The term “adjusted federal income” means an amount 83 equal to the taxpayer’s taxable income as defined in subsection 84 (2), or such taxable income of more than one taxpayer as 85 provided in s. 220.131, for the taxable year, adjusted as 86 follows: 87 (a) Additions.—There shall be added to such taxable income: 88 1. The amount of any tax upon or measured by income, 89 excluding taxes based on gross receipts or revenues, paid or 90 accrued as a liability to the District of Columbia or any state 91 of the United States which is deductible from gross income in 92 the computation of taxable income for the taxable year. 93 2. The amount of interest which is excluded from taxable 94 income under s. 103(a) of the Internal Revenue Code or any other 95 federal law, less the associated expenses disallowed in the 96 computation of taxable income under s. 265 of the Internal 97 Revenue Code or any other law, excluding 60 percent of any 98 amounts included in alternative minimum taxable income, as 99 defined in s. 55(b)(2) of the Internal Revenue Code, if the 100 taxpayer pays tax under s. 220.11(3). 101 3. In the case of a regulated investment company or real 102 estate investment trust, an amount equal to the excess of the 103 net long-term capital gain for the taxable year over the amount 104 of the capital gain dividends attributable to the taxable year. 105 4. That portion of the wages or salaries paid or incurred 106 for the taxable year which is equal to the amount of the credit 107 allowable for the taxable year under s. 220.181. This 108 subparagraph expires shall expireon the date specified in s. 109 290.016 for the expiration of the Florida Enterprise Zone Act. 110 5. That portion of the ad valorem school taxes paid or 111 incurred for the taxable year which is equal to the amount of 112 the credit allowable for the taxable year under s. 220.182. This 113 subparagraph expires shall expireon the date specified in s. 114 290.016 for the expiration of the Florida Enterprise Zone Act. 115 6. The amount taken as a credit under s. 220.195 which is 116 deductible from gross income in the computation of taxable 117 income for the taxable year. 118 7. That portion of assessments to fund a guaranty 119 association incurred for the taxable year which is equal to the 120 amount of the credit allowable for the taxable year. 121 8. In the case of a nonprofit corporation that whichholds 122 a pari-mutuel permit and which is exempt from federal income tax 123 as a farmers’ cooperative, an amount equal to the excess of the 124 gross income attributable to the pari-mutuel operations over the 125 attributable expenses for the taxable year. 126 9. The amount taken as a credit for the taxable year under 127 s. 220.1895. 128 10. Up to nine percent of the eligible basis of any 129 designated project which is equal to the credit allowable for 130 the taxable year under s. 220.185. 131 11. The amount taken as a credit for the taxable year under 132 s. 220.1875. The addition in this subparagraph is intended to 133 ensure that the same amount is not allowed for the tax purposes 134 of this state as both a deduction from income and a credit 135 against the tax. This addition is not intended to result in 136 adding the same expense back to income more than once. 137 12. The amount taken as a credit for the taxable year under 138 s. 220.192. 139 13. The amount taken as a credit for the taxable year under 140 s. 220.193. 141 14. Any portion of a qualified investment, as defined in s. 142 288.9913, which is claimed as a deduction by the taxpayer and 143 taken as a credit against income tax pursuant to s. 288.9916. 144 15. The costs to acquire a tax credit pursuant to s. 145 288.1254(5) which thatare deducted from or otherwise reduce 146 federal taxable income for the taxable year. 147 16. The amount taken as a credit for the taxable year under 148 pursuant tos. 220.194. 149 17. The amount taken as a credit for the taxable year under 150 s. 220.196. The addition in this subparagraph is intended to 151 ensure that the same amount is not allowed for the tax purposes 152 of this state as both a deduction from income and a credit 153 against the tax. The addition is not intended to result in 154 adding the same expense back to income more than once. 155 18. The amount taken as a credit for the taxable year under 156 s. 220.197. 157 Section 4. Emergency rules.— 158 (1) The executive director of the Department of Revenue is 159 authorized, and all conditions are deemed to be met, to adopt 160 emergency rules pursuant to ss. 120.536(1) and 120.54(4), 161 Florida Statutes, for the purpose of implementing this act. 162 (2) Notwithstanding any other provision of law, the 163 emergency rules adopted pursuant to subsection (1) remain in 164 effect for 6 months after adoption and may be renewed during the 165 pendency of procedures to adopt permanent rules addressing the 166 subject of the emergency rules. 167 (3) This section expires 1 year after the effective date of 168 this act. 169 Section 5. This act shall take effect July 1, 2014.