Florida Senate - 2017                                    SB 1142
       
       
        
       By Senator Artiles
       
       
       
       
       
       40-01006A-17                                          20171142__
    1                        A bill to be entitled                      
    2         An act relating to a tax credit for hiring veterans;
    3         creating s. 220.197, F.S.; providing a short title;
    4         establishing a tax credit for hiring veterans;
    5         providing eligibility requirements; establishing an
    6         additional credit for hiring disabled veterans;
    7         providing an application process; providing a cap on
    8         the total amount of tax credits allowed per year;
    9         authorizing the Department of Revenue to adopt rules;
   10         authorizing the department to establish guidelines for
   11         qualifying credits; providing for expiration of the
   12         tax credits; providing applicability; amending s.
   13         220.02, F.S.; revising the order in which credits
   14         against the corporate income tax or franchise tax may
   15         be taken to include credits for hiring veterans;
   16         amending s. 220.13, F.S.; revising the term “adjusted
   17         federal income” to include certain tax credits taken
   18         relating to hiring veterans; authorizing the executive
   19         director of the department to adopt emergency rules;
   20         providing an effective date.
   21          
   22  Be It Enacted by the Legislature of the State of Florida:
   23  
   24         Section 1. Section 220.197, Florida Statutes, is created to
   25  read:
   26         220.197Veterans employment tax credit.—
   27         (1)This section may be cited as the “Florida Veterans
   28  Employment Act.”
   29         (2)There shall be allowed a one-time credit of $5,000
   30  against the tax imposed by this chapter to a business for each
   31  veteran, as defined in s. 1.01, hired by the business. The
   32  business qualifies for the tax credit after the business has
   33  paid $5,000 in gross salary to the veteran. Veterans for whom
   34  the credit is claimed must first begin employment in this state
   35  in the operations of the qualifying business on or after January
   36  1, 2018, and perform duties in connection with the operations of
   37  the business for an average of at least 36 hours per week. A
   38  veteran who was previously employed by the qualifying business
   39  or any other member of the same controlled group of
   40  corporations, as defined in 26 U.S.C. s. 1563(a), of which the
   41  qualifying business is a member may not be claimed for the tax
   42  credit.
   43         (3)A qualifying business is eligible for an additional
   44  one-time credit against the tax imposed by this chapter in the
   45  amount of $5,000 for each veteran it hires who has an official
   46  letter from the United States Department of Veterans Affairs
   47  stating that he or she has a service-connected disability. The
   48  business qualifies for such credit after the business has paid
   49  an additional $5,000 in gross salary to such veteran.
   50         (4)To claim a tax credit under this section, a qualifying
   51  business must submit an application and receive approval from
   52  the department. An application for credit under subsection (3)
   53  must include a copy of the veteran’s official letter from the
   54  United States Department of Veterans Affairs certifying that the
   55  veteran has a service-connected disability. Qualified applicants
   56  shall be approved on a first-come, first-served basis, based on
   57  the date the completed application is received by the
   58  department. The department may not accept an incomplete
   59  application as a placeholder for the completed application and
   60  the submission of such incomplete application does not secure a
   61  place in the first-come, first-served approval process.
   62         (5)The department may not approve more than $10 million in
   63  tax credits per calendar year pursuant to this section.
   64         (6)The department may adopt rules governing the manner and
   65  form of application for the tax credits. The department may
   66  establish guidelines for making an affirmative showing of
   67  qualification for the tax credits under this section.
   68         (7)This section expires December 31, 2023. However, a
   69  qualifying business may carry forward any unused credit for up
   70  to 2 taxable years after the year the credit is earned.
   71         (8)This section applies to taxable years beginning on or
   72  after January 1, 2018.
   73         Section 2. Subsection (8) of section 220.02, Florida
   74  Statutes, is amended to read:
   75         220.02 Legislative intent.—
   76         (8) It is the intent of the Legislature that credits
   77  against either the corporate income tax or the franchise tax be
   78  applied in the following order: those enumerated in s. 631.828,
   79  those enumerated in s. 220.191, those enumerated in s. 220.181,
   80  those enumerated in s. 220.183, those enumerated in s. 220.182,
   81  those enumerated in s. 220.1895, those enumerated in s. 220.195,
   82  those enumerated in s. 220.184, those enumerated in s. 220.186,
   83  those enumerated in s. 220.1845, those enumerated in s. 220.19,
   84  those enumerated in s. 220.185, those enumerated in s. 220.1875,
   85  those enumerated in s. 220.192, those enumerated in s. 220.193,
   86  those enumerated in s. 288.9916, those enumerated in s.
   87  220.1899, those enumerated in s. 220.194, and those enumerated
   88  in s. 220.196, and those enumerated in s. 220.197.
   89         Section 3. Paragraph (a) of subsection (1) of section
   90  220.13, Florida Statutes, is amended to read:
   91         220.13 “Adjusted federal income” defined.—
   92         (1) The term “adjusted federal income” means an amount
   93  equal to the taxpayer’s taxable income as defined in subsection
   94  (2), or such taxable income of more than one taxpayer as
   95  provided in s. 220.131, for the taxable year, adjusted as
   96  follows:
   97         (a) Additions.—There shall be added to such taxable income:
   98         1. The amount of any tax upon or measured by income,
   99  excluding taxes based on gross receipts or revenues, paid or
  100  accrued as a liability to the District of Columbia or any state
  101  of the United States which is deductible from gross income in
  102  the computation of taxable income for the taxable year.
  103         2. The amount of interest which is excluded from taxable
  104  income under s. 103(a) of the Internal Revenue Code or any other
  105  federal law, less the associated expenses disallowed in the
  106  computation of taxable income under s. 265 of the Internal
  107  Revenue Code or any other law, excluding 60 percent of any
  108  amounts included in alternative minimum taxable income, as
  109  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  110  taxpayer pays tax under s. 220.11(3).
  111         3. In the case of a regulated investment company or real
  112  estate investment trust, an amount equal to the excess of the
  113  net long-term capital gain for the taxable year over the amount
  114  of the capital gain dividends attributable to the taxable year.
  115         4. That portion of the wages or salaries paid or incurred
  116  for the taxable year which is equal to the amount of the credit
  117  allowable for the taxable year under s. 220.181. This
  118  subparagraph expires shall expire on the date specified in s.
  119  290.016 for the expiration of the Florida Enterprise Zone Act.
  120         5. That portion of the ad valorem school taxes paid or
  121  incurred for the taxable year which is equal to the amount of
  122  the credit allowable for the taxable year under s. 220.182. This
  123  subparagraph expires shall expire on the date specified in s.
  124  290.016 for the expiration of the Florida Enterprise Zone Act.
  125         6. The amount taken as a credit under s. 220.195 which is
  126  deductible from gross income in the computation of taxable
  127  income for the taxable year.
  128         7. That portion of assessments to fund a guaranty
  129  association incurred for the taxable year which is equal to the
  130  amount of the credit allowable for the taxable year.
  131         8. In the case of a nonprofit corporation that which holds
  132  a pari-mutuel permit and that which is exempt from federal
  133  income tax as a farmers’ cooperative, an amount equal to the
  134  excess of the gross income attributable to the pari-mutuel
  135  operations over the attributable expenses for the taxable year.
  136         9. The amount taken as a credit for the taxable year under
  137  s. 220.1895.
  138         10. Up to nine percent of the eligible basis of any
  139  designated project which is equal to the credit allowable for
  140  the taxable year under s. 220.185.
  141         11. The amount taken as a credit for the taxable year under
  142  s. 220.1875. 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. This addition is not intended to result in
  146  adding the same expense back to income more than once.
  147         12. The amount taken as a credit for the taxable year under
  148  s. 220.192.
  149         13. The amount taken as a credit for the taxable year under
  150  s. 220.193.
  151         14. Any portion of a qualified investment, as defined in s.
  152  288.9913, which is claimed as a deduction by the taxpayer and
  153  taken as a credit against income tax pursuant to s. 288.9916.
  154         15. The costs to acquire a tax credit pursuant to s.
  155  288.1254(5) which that are deducted from or otherwise reduce
  156  federal taxable income for the taxable year.
  157         16. The amount taken as a credit for the taxable year under
  158  pursuant to s. 220.194.
  159         17. The amount taken as a credit for the taxable year under
  160  s. 220.196. The addition in this subparagraph is intended to
  161  ensure that the same amount is not allowed for the tax purposes
  162  of this state as both a deduction from income and a credit
  163  against the tax. The addition is not intended to result in
  164  adding the same expense back to income more than once.
  165         18.The amount taken as a credit for the taxable year under
  166  s. 220.197.
  167         Section 4. (1)The executive director of the Department of
  168  Revenue is authorized, and all conditions are deemed met, to
  169  adopt emergency rules under ss. 120.536(1) and 120.54(4),
  170  Florida Statutes, for the purpose of implementing this act.
  171         (2)Notwithstanding any other provision of law, such
  172  emergency rules shall remain in effect for 6 months after
  173  adoption and may be renewed during the pendency of procedures to
  174  adopt permanent rules addressing the subject of the emergency
  175  rules.
  176         (3)This section expires July 1, 2020.
  177         Section 5. This act shall take effect July 1, 2017.