Florida Senate - 2018                          SENATOR AMENDMENT
       Bill No. HB 7093, 1st Eng.
       
       
       
       
       
       
                                Ì903866IÎ903866                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 1/AD/3R         .           Floor: CA            
             03/08/2018 01:34 PM       .      03/09/2018 06:16 PM       
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       Senator Stargel moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Paragraph (n) of subsection (1) and paragraph
    6  (c) of subsection (2) of section 220.03, Florida Statutes, are
    7  amended to read:
    8         220.03 Definitions.—
    9         (1) SPECIFIC TERMS.—When used in this code, and when not
   10  otherwise distinctly expressed or manifestly incompatible with
   11  the intent thereof, the following terms shall have the following
   12  meanings:
   13         (n) “Internal Revenue Code” means the United States
   14  Internal Revenue Code of 1986, as amended and in effect on
   15  January 1, 2018 2017, except as provided in subsection (3).
   16         (2) DEFINITIONAL RULES.—When used in this code and neither
   17  otherwise distinctly expressed nor manifestly incompatible with
   18  the intent thereof:
   19         (c) Any term used in this code has the same meaning as when
   20  used in a comparable context in the Internal Revenue Code and
   21  other statutes of the United States relating to federal income
   22  taxes, as such code and statutes are in effect on January 1,
   23  2018 2017. However, if subsection (3) is implemented, the
   24  meaning of a term shall be taken at the time the term is applied
   25  under this code.
   26         Section 2. Paragraph (e) of subsection (1) of section
   27  220.13, Florida Statutes, is amended to read:
   28         220.13 “Adjusted federal income” defined.—
   29         (1) The term “adjusted federal income” means an amount
   30  equal to the taxpayer’s taxable income as defined in subsection
   31  (2), or such taxable income of more than one taxpayer as
   32  provided in s. 220.131, for the taxable year, adjusted as
   33  follows:
   34         (e) Adjustments related to federal acts.—Taxpayers shall be
   35  required to make the adjustments prescribed in this paragraph
   36  for Florida tax purposes with respect to certain tax benefits
   37  received pursuant to the Economic Stimulus Act of 2008, the
   38  American Recovery and Reinvestment Act of 2009, the Small
   39  Business Jobs Act of 2010, the Tax Relief, Unemployment
   40  Insurance Reauthorization, and Job Creation Act of 2010, the
   41  American Taxpayer Relief Act of 2012, the Tax Increase
   42  Prevention Act of 2014, and the Consolidated Appropriations Act,
   43  2016, and the Tax Cuts and Jobs Act of 2017.
   44         1. There shall be added to such taxable income an amount
   45  equal to 100 percent of any amount deducted for federal income
   46  tax purposes as bonus depreciation for the taxable year pursuant
   47  to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
   48  amended by s. 103 of Pub. L. No. 110-185, s. 1201 of Pub. L. No.
   49  111-5, s. 2022 of Pub. L. No. 111-240, s. 401 of Pub. L. No.
   50  111-312, s. 331 of Pub. L. No. 112-240, s. 125 of Pub. L. No.
   51  113-295, and s. 143 of Division Q of Pub. L. No. 114-113, and s.
   52  13201 of Pub. L. No. 115-97, for property placed in service
   53  after December 31, 2007, and before January 1, 2027 2021. For
   54  the taxable year and for each of the 6 subsequent taxable years,
   55  there shall be subtracted from such taxable income an amount
   56  equal to one-seventh of the amount by which taxable income was
   57  increased pursuant to this subparagraph, notwithstanding any
   58  sale or other disposition of the property that is the subject of
   59  the adjustments and regardless of whether such property remains
   60  in service in the hands of the taxpayer.
   61         2. There shall be added to such taxable income an amount
   62  equal to 100 percent of any amount in excess of $128,000
   63  deducted for federal income tax purposes for the taxable year
   64  pursuant to s. 179 of the Internal Revenue Code of 1986, as
   65  amended by s. 102 of Pub. L. No. 110-185, s. 1202 of Pub. L. No.
   66  111-5, s. 2021 of Pub. L. No. 111-240, s. 402 of Pub. L. No.
   67  111-312, s. 315 of Pub. L. No. 112-240, and s. 127 of Pub. L.
   68  No. 113-295, for taxable years beginning after December 31,
   69  2007, and before January 1, 2015. For the taxable year and for
   70  each of the 6 subsequent taxable years, there shall be
   71  subtracted from such taxable income one-seventh of the amount by
   72  which taxable income was increased pursuant to this
   73  subparagraph, notwithstanding any sale or other disposition of
   74  the property that is the subject of the adjustments and
   75  regardless of whether such property remains in service in the
   76  hands of the taxpayer.
   77         3. There shall be added to such taxable income an amount
   78  equal to the amount of deferred income not included in such
   79  taxable income pursuant to s. 108(i)(1) of the Internal Revenue
   80  Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
   81  shall be subtracted from such taxable income an amount equal to
   82  the amount of deferred income included in such taxable income
   83  pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
   84  as amended by s. 1231 of Pub. L. No. 111-5.
   85         4. Subtractions available under this paragraph may be
   86  transferred to the surviving or acquiring entity following a
   87  merger or acquisition and used in the same manner and with the
   88  same limitations as specified by this paragraph.
   89         5. The additions and subtractions specified in this
   90  paragraph are intended to adjust taxable income for Florida tax
   91  purposes, and, notwithstanding any other provision of this code,
   92  such additions and subtractions shall be permitted to change a
   93  taxpayer’s net operating loss for Florida tax purposes.
   94         Section 3. The Legislature recognizes that the Tax Cuts and
   95  Jobs Act of 2017 will have significant effects on the state
   96  corporate income tax and on corporate taxpayers when it is fully
   97  implemented. To better understand these effects, the Legislature
   98  finds the following actions are necessary:
   99         (1)The Department of Revenue shall examine how the Tax
  100  Cuts and Jobs Act of 2017 will affect the state corporate income
  101  tax as a result of the state’s adoption of the Internal Revenue
  102  Code by this act.
  103         (2) The Department of Revenue shall monitor guidance
  104  provided by the Internal Revenue Service and other tax
  105  authorities and advisory groups, and shall conduct at least two
  106  public workshops to gather public input. In addition, the
  107  department shall develop a process outside of the public
  108  workshops for receiving public input regarding the Tax Cuts and
  109  Jobs Act of 2017 and its potential effects on the state
  110  corporate income tax and the businesses that pay the tax.
  111         (3) By February 1, 2019, the Department of Revenue shall
  112  submit a report to the Governor, the President of the Senate,
  113  the Speaker of the House of Representatives, and the chairs of
  114  appropriate legislative committees. At a minimum, the report
  115  must include the following:
  116         (a) A comprehensive discussion of the potential effects of
  117  the Tax Cuts and Jobs Act of 2017 on the state corporate income
  118  tax structure and revenues.
  119         (b) Options for changes the Legislature could make to state
  120  tax law which may be needed to integrate state law with federal
  121  law.
  122         (c) An estimate of the potential fiscal impact of each
  123  option.
  124         (d) A compilation of the input received from the public
  125  through the public workshops and otherwise.
  126         (e) Any other information the Department of Revenue
  127  determines will assist the Legislature in evaluating the impact
  128  of the Tax Cuts and Jobs Act of 2017 on the state corporate
  129  income tax structure and revenues.
  130         (4) The Department of Revenue shall submit status reports
  131  to the chairs of appropriate legislative committees on August 3,
  132  2018, and November 16, 2018. At a minimum, the status reports
  133  must include a brief description of the department’s activities
  134  and any relevant guidance issued by the Internal Revenue
  135  Service.
  136         (5) The Department of Revenue shall consult with the
  137  Revenue Estimating Conference on the development of the required
  138  reports.
  139         Section 4. This act shall take effect upon becoming a law
  140  and operate retroactively to January 1, 2018.
  141  
  142  ================= T I T L E  A M E N D M E N T ================
  143  And the title is amended as follows:
  144         Delete everything before the enacting clause
  145  and insert:
  146                        A bill to be entitled                      
  147         An act relating to the corporate income tax; amending
  148         s. 220.03, F.S.; adopting the 2018 version of the
  149         Internal Revenue Code; amending s. 220.13, F.S.;
  150         revising the definition of the term “adjusted federal
  151         income” relating to adjustments related to federal
  152         acts; providing legislative findings; requiring the
  153         Department of Revenue to make a certain examination,
  154         monitor guidance by the Internal Revenue Service,
  155         conduct workshops, and develop a certain process
  156         regarding the Tax Cuts and Jobs Act of 2017; requiring
  157         the department to submit a specified report to the
  158         Governor and Legislature by a certain date; requiring
  159         the department to provide certain status reports to
  160         the Legislature on specified dates; requiring the
  161         department to consult with the Revenue Estimating
  162         Conference in developing required reports; providing
  163         for retroactive operation; providing an effective
  164         date.