Florida Senate - 2014 CS for CS for SB 110 By the Committees on Commerce and Tourism; and Military and Veterans Affairs, Space, and Domestic Security; and Senators Soto, Sachs, and Abruzzo 577-01604-14 2014110c2 1 A bill to be entitled 2 An act relating to taxes on businesses; creating s. 3 220.197, F.S.; providing a short title; establishing a 4 tax credit for the hiring of veterans; providing 5 eligibility requirements; establishing an additional 6 credit for the hiring of disabled veterans; providing 7 an application process; providing a cap on the total 8 amount of tax credits allowed per year; authorizing 9 the Department of Revenue to adopt rules; authorizing 10 the department to establish guidelines for qualifying 11 credits; providing for expiration of the tax credits; 12 providing applicability; amending s. 220.02, F.S.; 13 revising the order in which credits against the 14 corporate income tax or franchise tax may be taken to 15 include the hiring of veterans; amending s. 220.13, 16 F.S.; revising the term “adjusted federal income” to 17 include certain tax credits taken relating to the 18 hiring of veterans; authorizing the executive director 19 of the department to adopt emergency rules; providing 20 for time of effect of emergency rules and for the 21 expiration of such rule authority; providing an 22 effective date. 23 24 Be It Enacted by the Legislature of the State of Florida: 25 26 Section 1. Section 220.197, Florida Statutes, is created to 27 read: 28 220.197 Tax credit for employment of veterans.— 29 (1) This section may be cited as the “Florida Veterans 30 Employment Act.” 31 (2) A business qualifies for a one-time credit against the 32 tax imposed by this chapter in the amount of $5,000 per 33 individual for hiring a veteran, as defined in s. 1.01, after 34 the business has paid $5,000 in gross salary to the veteran. 35 Veterans for whom the credit is claimed must first begin 36 employment in this state in the operations of the qualifying 37 business on or after January 1, 2015, and perform duties in 38 connection with the operations of the business for an average of 39 at least 36 hours per week. Veterans who have been previously 40 employed by the qualifying business or any other member of the 41 same controlled group of corporations of which the qualifying 42 business is a member may not be claimed for the tax credit. As 43 used in this section, the term “controlled group of 44 corporations” has the same meaning as provided in 26 U.S.C. s. 45 1563(a). 46 (3) A qualifying business is eligible for an additional 47 one-time credit against the tax imposed by this chapter in the 48 amount of $5,000 per individual for hiring a veteran, as defined 49 in s. 1.01, after the business has paid an additional $5,000 in 50 gross salary to the veteran if such veteran has an official 51 letter from the United States Department of Veterans Affairs 52 stating that he or she has a service-connected disability. 53 (4) In order to claim a tax credit under this section, a 54 qualifying business must submit an application and receive 55 approval from the department to claim the credit. Applications 56 for credit under subsection (3) must include a copy of the 57 veteran’s official letter from the United States Department of 58 Veterans Affairs stating that the veteran has a service 59 connected disability. Qualified applicants shall be approved on 60 a first-come, first-served basis, based on the date the 61 completed application is received by the department. The 62 department may not accept an incomplete application as a 63 placeholder for the completed application, and the submission of 64 such incomplete application does not secure a place in the 65 first-come, first-served approval process. 66 (5) The department may not approve more than $10 million in 67 tax credits per calendar year pursuant to this section. 68 (6) The department may adopt rules governing the manner and 69 form of application for the tax credits. The department may 70 establish guidelines for making an affirmative showing of 71 qualification for the tax credits under this section. 72 (7) This section expires December 31, 2019. However, a 73 qualifying business may carry forward any unused credit for up 74 to 2 taxable years after the year the credit is earned. 75 (8) This section applies to taxable years beginning on or 76 after January 1, 2015. 77 Section 2. Subsection (8) of section 220.02, Florida 78 Statutes, is amended to read: 79 220.02 Legislative intent.— 80 (8) It is the intent of the Legislature that credits 81 against
eitherthe corporate income tax or the franchise tax be 82 applied in the following order: those enumerated in s. 631.828, 83 those enumerated in s. 220.191, those enumerated in s. 220.181, 84 those enumerated in s. 220.183, those enumerated in s. 220.182, 85 those enumerated in s. 220.1895, those enumerated in s. 220.195, 86 those enumerated in s. 220.184, those enumerated in s. 220.186, 87 those enumerated in s. 220.1845, those enumerated in s. 220.19, 88 those enumerated in s. 220.185, those enumerated in s. 220.1875, 89 those enumerated in s. 220.192, those enumerated in s. 220.193, 90 those enumerated in s. 288.9916, those enumerated in s. 91 220.1899, those enumerated in s. 220.194, andthose enumerated 92 in s. 220.196, and those enumerated in s. 220.197. 93 Section 3. Paragraph (a) of subsection (1) of section 94 220.13, Florida Statutes, is amended to read: 95 220.13 “Adjusted federal income” defined.— 96 (1) The term “adjusted federal income” means an amount 97 equal to the taxpayer’s taxable income as defined in subsection 98 (2), or such taxable income of more than one taxpayer as 99 provided in s. 220.131, for the taxable year, adjusted as 100 follows: 101 (a) Additions.—There shall be added to such taxable income: 102 1. The amount of any tax upon or measured by income, 103 excluding taxes based on gross receipts or revenues, paid or 104 accrued as a liability to the District of Columbia or any state 105 of the United States which is deductible from gross income in 106 the computation of taxable income for the taxable year. 107 2. The amount of interest which is excluded from taxable 108 income under s. 103(a) of the Internal Revenue Code or any other 109 federal law, less the associated expenses disallowed in the 110 computation of taxable income under s. 265 of the Internal 111 Revenue Code or any other law, excluding 60 percent of any 112 amounts included in alternative minimum taxable income, as 113 defined in s. 55(b)(2) of the Internal Revenue Code, if the 114 taxpayer pays tax under s. 220.11(3). 115 3. In the case of a regulated investment company or real 116 estate investment trust, an amount equal to the excess of the 117 net long-term capital gain for the taxable year over the amount 118 of the capital gain dividends attributable to the taxable year. 119 4. That portion of the wages or salaries paid or incurred 120 for the taxable year which is equal to the amount of the credit 121 allowable for the taxable year under s. 220.181. This 122 subparagraph expires shall expireon the date specified in s. 123 290.016 for the expiration of the Florida Enterprise Zone Act. 124 5. That portion of the ad valorem school taxes paid or 125 incurred for the taxable year which is equal to the amount of 126 the credit allowable for the taxable year under s. 220.182. This 127 subparagraph expires shall expireon the date specified in s. 128 290.016 for the expiration of the Florida Enterprise Zone Act. 129 6. The amount taken as a credit under s. 220.195 which is 130 deductible from gross income in the computation of taxable 131 income for the taxable year. 132 7. That portion of assessments to fund a guaranty 133 association incurred for the taxable year which is equal to the 134 amount of the credit allowable for the taxable year. 135 8. In the case of a nonprofit corporation that whichholds 136 a pari-mutuel permit and which is exempt from federal income tax 137 as a farmers’ cooperative, an amount equal to the excess of the 138 gross income attributable to the pari-mutuel operations over the 139 attributable expenses for the taxable year. 140 9. The amount taken as a credit for the taxable year under 141 s. 220.1895. 142 10. Up to nine percent of the eligible basis of any 143 designated project which is equal to the credit allowable for 144 the taxable year under s. 220.185. 145 11. The amount taken as a credit for the taxable year under 146 s. 220.1875. The addition in this subparagraph is intended to 147 ensure that the same amount is not allowed for the tax purposes 148 of this state as both a deduction from income and a credit 149 against the tax. This addition is not intended to result in 150 adding the same expense back to income more than once. 151 12. The amount taken as a credit for the taxable year under 152 s. 220.192. 153 13. The amount taken as a credit for the taxable year under 154 s. 220.193. 155 14. Any portion of a qualified investment, as defined in s. 156 288.9913, which is claimed as a deduction by the taxpayer and 157 taken as a credit against income tax pursuant to s. 288.9916. 158 15. The costs to acquire a tax credit pursuant to s. 159 288.1254(5) which thatare deducted from or otherwise reduce 160 federal taxable income for the taxable year. 161 16. The amount taken as a credit for the taxable year under 162 pursuant tos. 220.194. 163 17. The amount taken as a credit for the taxable year under 164 s. 220.196. The addition in this subparagraph is intended to 165 ensure that the same amount is not allowed for the tax purposes 166 of this state as both a deduction from income and a credit 167 against the tax. The addition is not intended to result in 168 adding the same expense back to income more than once. 169 18. The amount taken as a credit for the taxable year under 170 s. 220.197. 171 Section 4. Emergency rules.— 172 (1) The executive director of the Department of Revenue is 173 authorized, and all conditions are deemed to be met, to adopt 174 emergency rules pursuant to ss. 120.536(1) and 120.54(4), 175 Florida Statutes, for the purpose of implementing this act. 176 (2) Notwithstanding any other provision of law, the 177 emergency rules adopted pursuant to subsection (1) remain in 178 effect for 6 months after adoption and may be renewed during the 179 pendency of procedures to adopt permanent rules addressing the 180 subject of the emergency rules. 181 (3) This section expires July 1, 2017. 182 Section 5. This act shall take effect July 1, 2014.