Florida Senate - 2020                          SENATOR AMENDMENT
       Bill No. CS/HB 7097, 1st Eng.
       
       
       
       
       
       
                                Ì591488WÎ591488                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: WD/2R          .                                
             03/12/2020 05:00 PM       .                                
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       Senator Gruters moved the following:
       
    1         Senate Amendment to Substitute Amendment (271678) (with
    2  title amendment)
    3  
    4         Between lines 1782 and 1783
    5  insert:
    6         Section 37. Effective upon becoming a law, paragraph (e) of
    7  subsection (1) of section 220.13, Florida Statutes, is amended
    8  to read:
    9         220.13 “Adjusted federal income” defined.—
   10         (1) The term “adjusted federal income” means an amount
   11  equal to the taxpayer’s taxable income as defined in subsection
   12  (2), or such taxable income of more than one taxpayer as
   13  provided in s. 220.131, for the taxable year, adjusted as
   14  follows:
   15         (e) Adjustments related to federal acts.—Taxpayers shall be
   16  required to make the adjustments prescribed in this paragraph
   17  for Florida tax purposes with respect to certain tax benefits
   18  received pursuant to the Economic Stimulus Act of 2008, the
   19  American Recovery and Reinvestment Act of 2009, the Small
   20  Business Jobs Act of 2010, the Tax Relief, Unemployment
   21  Insurance Reauthorization, and Job Creation Act of 2010, the
   22  American Taxpayer Relief Act of 2012, the Tax Increase
   23  Prevention Act of 2014, the Consolidated Appropriations Act,
   24  2016, and the Tax Cuts and Jobs Act of 2017.
   25         1.a. There shall be added to such taxable income an amount
   26  equal to 100 percent of any amount deducted for federal income
   27  tax purposes as bonus depreciation for the taxable year pursuant
   28  to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
   29  amended by s. 103 of Pub. L. No. 110-185, s. 1201 of Pub. L. No.
   30  111-5, s. 2022 of Pub. L. No. 111-240, s. 401 of Pub. L. No.
   31  111-312, s. 331 of Pub. L. No. 112-240, s. 125 of Pub. L. No.
   32  113-295, s. 143 of Division Q of Pub. L. No. 114-113, and s.
   33  13201 of Pub. L. No. 115-97, for property placed in service
   34  after December 31, 2007, and before January 1, 2027. For the
   35  taxable year and for each of the 6 subsequent taxable years,
   36  there shall be subtracted from such taxable income an amount
   37  equal to one-seventh of the amount by which taxable income was
   38  increased pursuant to this sub-subparagraph subparagraph,
   39  notwithstanding any sale or other disposition of the property
   40  that is the subject of the adjustments and regardless of whether
   41  such property remains in service in the hands of the taxpayer.
   42         b.An eligible taxpayer may subtract any remaining amount
   43  of bonus depreciation on eligible property by which taxable
   44  income was increased pursuant to this subparagraph in the
   45  taxable year in which the eligible property is removed from
   46  service and may not make any further subtractions under sub
   47  subparagraph a. for that property. As used in this sub
   48  subparagraph, the term “eligible taxpayer” means a taxpayer that
   49  deferred gains on the exchange of tangible personal property
   50  under s. 1031 of the Internal Revenue Code before January 1,
   51  2018, and is classified under NAICS industry group 5321 or code
   52  522220. An eligible taxpayer is not disqualified from this
   53  treatment solely because it is part of an affiliated group that
   54  files a consolidated return and the parent company or other
   55  members of the group are not eligible taxpayers. As used in this
   56  sub-subparagraph, the term “eligible property” means the same
   57  type of tangible personal property on which an eligible taxpayer
   58  would have been able to defer gains under s. 1031 of the
   59  Internal Revenue Code before January 1, 2018, and which was
   60  placed into service on or after January 1, 2019. Eligible
   61  property does not include tangible personal property transferred
   62  between members of an affiliated group that files a consolidated
   63  return.
   64         2. There shall be added to such taxable income an amount
   65  equal to 100 percent of any amount in excess of $128,000
   66  deducted for federal income tax purposes for the taxable year
   67  pursuant to s. 179 of the Internal Revenue Code of 1986, as
   68  amended by s. 102 of Pub. L. No. 110-185, s. 1202 of Pub. L. No.
   69  111-5, s. 2021 of Pub. L. No. 111-240, s. 402 of Pub. L. No.
   70  111-312, s. 315 of Pub. L. No. 112-240, and s. 127 of Pub. L.
   71  No. 113-295, for taxable years beginning after December 31,
   72  2007, and before January 1, 2015. For the taxable year and for
   73  each of the 6 subsequent taxable years, there shall be
   74  subtracted from such taxable income one-seventh of the amount by
   75  which taxable income was increased pursuant to this
   76  subparagraph, notwithstanding any sale or other disposition of
   77  the property that is the subject of the adjustments and
   78  regardless of whether such property remains in service in the
   79  hands of the taxpayer.
   80         3. There shall be added to such taxable income an amount
   81  equal to the amount of deferred income not included in such
   82  taxable income pursuant to s. 108(i)(1) of the Internal Revenue
   83  Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
   84  shall be subtracted from such taxable income an amount equal to
   85  the amount of deferred income included in such taxable income
   86  pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
   87  as amended by s. 1231 of Pub. L. No. 111-5.
   88         4. Subtractions available under this paragraph may be
   89  transferred to the surviving or acquiring entity following a
   90  merger or acquisition and used in the same manner and with the
   91  same limitations as specified by this paragraph.
   92         5. The additions and subtractions specified in this
   93  paragraph are intended to adjust taxable income for Florida tax
   94  purposes, and, notwithstanding any other provision of this code,
   95  such additions and subtractions shall be permitted to change a
   96  taxpayer’s net operating loss for Florida tax purposes.
   97         Section 38. The amendment to s. 220.13(1)(e), Florida
   98  Statutes, made by this act applies to taxable years beginning on
   99  or after January 1, 2019, and to tangible personal property put
  100  into service on or after January 1, 2019.
  101  
  102  ================= T I T L E  A M E N D M E N T ================
  103  And the title is amended as follows:
  104         Delete line 1981
  105  and insert:
  106         providing an appropriation; amending s. 220.13, F.S.;
  107         specifying the authority of certain corporate income
  108         tax payers in the automotive equipment rental and
  109         leasing and sales financing industries to subtract
  110         bonus depreciation on certain tangible personal
  111         property; defining the terms “eligible taxpayer” and
  112         “eligible property”; providing construction and
  113         retroactive applicability; authorizing the department