Florida Senate - 2014 COMMITTEE AMENDMENT
Bill No. CS for SB 596
Ì731766CÎ731766
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/02/2014 .
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recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Section 288.1046, Florida Statutes, is created
6 to read:
7 288.1046 Defense Works in Florida Incentive.—
8 (1) As used in this section, the term:
9 (a) “Florida prime contractor” means a business entity
10 operating in this state that is awarded a prime contract.
11 (b) “Florida small business subcontractor” means a business
12 entity that:
13 1. Maintains its primary place of business in the state;
14 2. Has 250 or fewer employees at the time a qualified
15 subcontract award is made;
16 3. Is awarded a subcontract from a Florida prime
17 contractor; and
18 4. Has no subsidiary or affiliate business relationship to
19 the prime contractor making the award.
20 (c) “Prime contract” means a contract that is awarded
21 directly from the Federal Government.
22 (d) “Qualified defense work” means a prime contract awarded
23 for manufacturing, engineering, construction, distribution,
24 research, development, or other activities related to equipment,
25 supplies, technology, or other goods or services that directly
26 or indirectly support the United States Armed Forces or that can
27 be reasonably determined to support national security, including
28 space related activities.
29 (e) “Qualified subcontract award” means qualified defense
30 work, in part or in whole, subcontracted from a Florida prime
31 contractor to a Florida small business subcontractor, which is
32 executed in the state and valued at more than $250,000. The term
33 does not include subcontracts executed before July 1, 2014.
34 (2) A Florida prime contractor may apply to the department
35 to certify that it may reduce its computation of adjusted
36 federal income under s. 220.13 by an amount equal to 4 percent
37 of the subcontract award if such prime contractor:
38 (a) Is subject to chapter 220;
39 (b) Is awarded qualified defense work; and
40 (c) Awards a qualified subcontract award.
41 (3) A Florida prime contractor may reduce its adjusted
42 federal income under subsection (2) only for taxable years
43 beginning on or after January 1, 2014, and must apply separately
44 to the department for each qualified subcontract award and
45 provide the department required documentation, including, but
46 not limited to, the application for the award and copies of
47 contracts, tax records, or employment records.
48 (4) The department may establish application, approval,
49 appeal, and accountability processes as necessary. The
50 department may consult with Enterprise Florida, Inc., and the
51 Florida Defense Support Task Force as necessary to administer
52 this section.
53 (a) Within 10 days after certifying a qualified subcontract
54 award, the department shall provide:
55 1. A letter certifying the award to the applicant; and
56 2. A copy of the letter certifying the award to the
57 Department of Revenue.
58 (b) The department may certify, for each Florida prime
59 contractor applicant per calendar year, up to $250 million in
60 aggregate qualified subcontract awards.
61 (c) The department may certify in total, per calendar year,
62 up to $2.5 billion in aggregate qualified subcontract awards.
63 (d) For a multiyear qualified subcontract award, the
64 department shall certify the full amount of the award under
65 paragraphs (b) and (c) in the calendar year it was awarded.
66 (e) The Florida prime contractor may reduce its adjusted
67 federal income under subsection (2) in the taxable years in
68 which payments are made to the Florida small business
69 subcontractor.
70 (5) The department and the Department of Revenue may adopt
71 rules to administer this section.
72 Section 2. Paragraph (b) of subsection (1) of 220.13,
73 Florida Statutes, is amended to read:
74 220.13 “Adjusted federal income” defined.—
75 (1) The term “adjusted federal income” means an amount
76 equal to the taxpayer’s taxable income as defined in subsection
77 (2), or such taxable income of more than one taxpayer as
78 provided in s. 220.131, for the taxable year, adjusted as
79 follows:
80 (b) Subtractions.—
81 1. There shall be subtracted from such taxable income:
82 a. The net operating loss deduction allowable for federal
83 income tax purposes under s. 172 of the Internal Revenue Code
84 for the taxable year, except that any net operating loss that is
85 transferred pursuant to s. 220.194(6) may not be deducted by the
86 seller;,
87 b. The net capital loss allowable for federal income tax
88 purposes under s. 1212 of the Internal Revenue Code for the
89 taxable year;,
90 c. The excess charitable contribution deduction allowable
91 for federal income tax purposes under s. 170(d)(2) of the
92 Internal Revenue Code for the taxable year;, and
93 d. The excess contributions deductions allowable for
94 federal income tax purposes under s. 404 of the Internal Revenue
95 Code for the taxable year.
96
97 However, a net operating loss and a capital loss shall never be
98 carried back as a deduction to a prior taxable year, but all
99 deductions attributable to such losses shall be deemed net
100 operating loss carryovers and capital loss carryovers,
101 respectively, and treated in the same manner, to the same
102 extent, and for the same time periods as are prescribed for such
103 carryovers in ss. 172 and 1212, respectively, of the Internal
104 Revenue Code.
105 2. There shall be subtracted from such taxable income any
106 amount to the extent included therein the following:
107 a. Dividends treated as received from sources without the
108 United States, as determined under s. 862 of the Internal
109 Revenue Code.
110 b. All amounts included in taxable income under s. 78 or s.
111 951 of the Internal Revenue Code.
112
113 However, as to any amount subtracted under this subparagraph,
114 there shall be added to such taxable income all expenses
115 deducted on the taxpayer’s return for the taxable year which are
116 attributable, directly or indirectly, to such subtracted amount.
117 Further, no amount shall be subtracted with respect to dividends
118 paid or deemed paid by a Domestic International Sales
119 Corporation.
120 3. In computing “adjusted federal income” for taxable years
121 beginning after December 31, 1976, there shall be allowed as a
122 deduction the amount of wages and salaries paid or incurred
123 within this state for the taxable year for which no deduction is
124 allowed pursuant to s. 280C(a) of the Internal Revenue Code
125 (relating to credit for employment of certain new employees).
126 4. There shall be subtracted from such taxable income any
127 amount of nonbusiness income included therein.
128 5. There shall be subtracted any amount of taxes of foreign
129 countries allowable as credits for taxable years beginning on or
130 after September 1, 1985, under s. 901 of the Internal Revenue
131 Code to any corporation which derived less than 20 percent of
132 its gross income or loss for its taxable year ended in 1984 from
133 sources within the United States, as described in s.
134 861(a)(2)(A) of the Internal Revenue Code, not including credits
135 allowed under ss. 902 and 960 of the Internal Revenue Code,
136 withholding taxes on dividends within the meaning of sub
137 subparagraph 2.a., and withholding taxes on royalties, interest,
138 technical service fees, and capital gains.
139 6. There shall be subtracted from such taxable income 4
140 percent of the amount of the subcontract award certified by the
141 Department of Economic Opportunity and paid to the subcontractor
142 pursuant to s. 288.1046.
143 7. Notwithstanding any other provision of this code, except
144 with respect to amounts subtracted pursuant to subparagraphs 1.
145 and 3., any increment of any apportionment factor which is
146 directly related to an increment of gross receipts or income
147 which is deducted, subtracted, or otherwise excluded in
148 determining adjusted federal income shall be excluded from both
149 the numerator and denominator of such apportionment factor.
150 Further, all valuations made for apportionment factor purposes
151 shall be made on a basis consistent with the taxpayer’s method
152 of accounting for federal income tax purposes.
153 Section 3. This act shall take effect July 1, 2014.
154
155 ================= T I T L E A M E N D M E N T ================
156 And the title is amended as follows:
157 Delete everything before the enacting clause
158 and insert:
159 A bill to be entitled
160 An act relating to defense contracting; creating s.
161 288.1046, F.S.; defining terms; authorizing certain
162 prime contractors to apply to the Department of
163 Economic Opportunity to certify that such contractors
164 may reduce their computation of adjusted federal
165 income by a certain amount when awarded a prime
166 contract; providing requirements to apply for a
167 reduction in computation of income; requiring a prime
168 contractor to apply separately for each qualified
169 subcontract award and to provide documentation;
170 providing guidelines for the department to certify an
171 award; authorizing the department and the Department
172 of Revenue to adopt rules; amending s. 220.13, F.S.;
173 revising the definition of the term “adjusted federal
174 income” for corporate income tax purposes; providing
175 for certain reduction in computation of income, to
176 conform; providing an effective date.