Florida Senate - 2015                                    SB 7014
       
       
        
       By the Committee on Finance and Tax
       
       
       
       
       
       593-02342-15                                          20157014__
    1                        A bill to be entitled                      
    2         An act relating to the corporate income tax; amending
    3         s. 220.03, F.S.; adopting the 2015 version of the
    4         Internal Revenue Code; amending s. 220.13, F.S.;
    5         incorporating a reference to a recent federal act into
    6         state law for the purpose of defining the term
    7         “adjusted federal income”; revising the treatment by
    8         this state of certain depreciation and expensing of
    9         assets that are allowed for federal income tax
   10         purposes; authorizing the Department of Revenue to
   11         adopt emergency rules; reenacting s. 1009.97(3)(l),
   12         F.S., relating to prepaid college board programs, to
   13         incorporate the amendment made to s. 220.03, F.S., in
   14         a reference thereto; providing for retroactive
   15         application; providing an effective date.
   16          
   17  Be It Enacted by the Legislature of the State of Florida:
   18  
   19         Section 1. Paragraph (n) of subsection (1) and paragraph
   20  (c) of subsection (2) of section 220.03, Florida Statutes, are
   21  amended to read:
   22         220.03 Definitions.—
   23         (1) SPECIFIC TERMS.—When used in this code, and when not
   24  otherwise distinctly expressed or manifestly incompatible with
   25  the intent thereof, the following terms shall have the following
   26  meanings:
   27         (n) “Internal Revenue Code” means the United States
   28  Internal Revenue Code of 1986, as amended and in effect on
   29  January 1, 2015 2014, except as provided in subsection (3).
   30         (2) DEFINITIONAL RULES.—When used in this code and neither
   31  otherwise distinctly expressed nor manifestly incompatible with
   32  the intent thereof:
   33         (c) Any term used in this code has the same meaning as when
   34  used in a comparable context in the Internal Revenue Code and
   35  other statutes of the United States relating to federal income
   36  taxes, as such code and statutes are in effect on January 1,
   37  2015 2014. However, if subsection (3) is implemented, the
   38  meaning of a term shall be taken at the time the term is applied
   39  under this code.
   40         Section 2. Paragraph (e) of subsection (1) of section
   41  220.13, Florida Statutes, is amended to read:
   42         220.13 “Adjusted federal income” defined.—
   43         (1) The term “adjusted federal income” means an amount
   44  equal to the taxpayer’s taxable income as defined in subsection
   45  (2), or such taxable income of more than one taxpayer as
   46  provided in s. 220.131, for the taxable year, adjusted as
   47  follows:
   48         (e) Adjustments related to federal acts.—Taxpayers shall be
   49  required to make the adjustments prescribed in this paragraph
   50  for Florida tax purposes with respect to certain tax benefits
   51  received pursuant to the Economic Stimulus Act of 2008, the
   52  American Recovery and Reinvestment Act of 2009, the Small
   53  Business Jobs Act of 2010, the Tax Relief, Unemployment
   54  Insurance Reauthorization, and Job Creation Act of 2010, and the
   55  American Taxpayer Relief Act of 2012, and the Tax Increase
   56  Prevention Act of 2014.
   57         1. There shall be added to such taxable income an amount
   58  equal to 100 percent of any amount deducted for federal income
   59  tax purposes as bonus depreciation for the taxable year pursuant
   60  to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
   61  amended by s. 103 of Pub. L. No. 110-185, s. 1201 of Pub. L. No.
   62  111-5, s. 2022 of Pub. L. No. 111-240, s. 401 of Pub. L. No.
   63  111-312, and s. 331 of Pub. L. No. 112-240, and s. 125 of Pub.
   64  L. No. 113-295, for property placed in service after December
   65  31, 2007, and before January 1, 2015 2014. For the taxable year
   66  and for each of the 6 subsequent taxable years, there shall be
   67  subtracted from such taxable income an amount equal to one
   68  seventh of the amount by which taxable income was increased
   69  pursuant to this subparagraph, notwithstanding any sale or other
   70  disposition of the property that is the subject of the
   71  adjustments and regardless of whether such property remains in
   72  service in the hands of the taxpayer.
   73         2. There shall be added to such taxable income an amount
   74  equal to 100 percent of any amount in excess of $128,000
   75  deducted for federal income tax purposes for the taxable year
   76  pursuant to s. 179 of the Internal Revenue Code of 1986, as
   77  amended by s. 102 of Pub. L. No. 110-185, s. 1202 of Pub. L. No.
   78  111-5, s. 2021 of Pub. L. No. 111-240, s. 402 of Pub. L. No.
   79  111-312, and s. 315 of Pub. L. No. 112-240, and s. 127 of Pub.
   80  L. No. 113-295, for taxable years beginning after December 31,
   81  2007, and before January 1, 2015 2014. For the taxable year and
   82  for each of the 6 subsequent taxable years, there shall be
   83  subtracted from such taxable income one-seventh of the amount by
   84  which taxable income was increased pursuant to this
   85  subparagraph, notwithstanding any sale or other disposition of
   86  the property that is the subject of the adjustments and
   87  regardless of whether such property remains in service in the
   88  hands of the taxpayer.
   89         3. There shall be added to such taxable income an amount
   90  equal to the amount of deferred income not included in such
   91  taxable income pursuant to s. 108(i)(1) of the Internal Revenue
   92  Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
   93  shall be subtracted from such taxable income an amount equal to
   94  the amount of deferred income included in such taxable income
   95  pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
   96  as amended by s. 1231 of Pub. L. No. 111-5.
   97         4. Subtractions available under this paragraph may be
   98  transferred to the surviving or acquiring entity following a
   99  merger or acquisition and used in the same manner and with the
  100  same limitations as specified by this paragraph.
  101         5. The additions and subtractions specified in this
  102  paragraph are intended to adjust taxable income for Florida tax
  103  purposes, and, notwithstanding any other provision of this code,
  104  such additions and subtractions shall be permitted to change a
  105  taxpayer’s net operating loss for Florida tax purposes.
  106         Section 3. (1) The Department of Revenue is authorized, and
  107  all conditions are deemed to be met, to adopt emergency rules
  108  pursuant to s. 120.54(4), Florida Statutes, for the purpose of
  109  implementing this act.
  110         (2) Notwithstanding any other law, emergency rules adopted
  111  pursuant to subsection (1) are effective for 6 months after
  112  adoption and may be renewed during the pendency of procedures to
  113  adopt permanent rules addressing the subject of the emergency
  114  rules.
  115         (3) This section expires January 1, 2018.
  116         Section 4. For the purpose of incorporating the amendment
  117  made by this act to section 220.03, Florida Statutes, in a
  118  reference thereto, paragraph (l) of subsection (3) of section
  119  1009.97, Florida Statutes, is reenacted to read:
  120         1009.97 General provisions.—
  121         (3) DEFINITIONS.—As used in ss. 1009.97-1009.984, the term:
  122         (l) “Internal Revenue Code” means the Internal Revenue Code
  123  of 1986, as defined in s. 220.03(1), and regulations adopted
  124  pursuant thereto.
  125         Section 5. This act shall take effect upon becoming a law
  126  and shall operate retroactively to January 1, 2015.