Florida Senate - 2021                        COMMITTEE AMENDMENT
       Bill No. SB 258
       
       
       
       
       
       
                                Ì779720+Î779720                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/11/2021           .                                
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       The Committee on Finance and Tax (Jones) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (8) of section 220.02, Florida
    6  Statutes, is amended to read:
    7         220.02 Legislative intent.—
    8         (8) It is the intent of the Legislature that credits
    9  against either the corporate income tax or the franchise tax be
   10  applied in the following order: those enumerated in s. 631.828,
   11  those enumerated in s. 220.191, those enumerated in s. 220.181,
   12  those enumerated in s. 220.183, those enumerated in s. 220.182,
   13  those enumerated in s. 220.1895, those enumerated in s. 220.195,
   14  those enumerated in s. 220.184, those enumerated in s. 220.186,
   15  those enumerated in s. 220.1845, those enumerated in s. 220.19,
   16  those enumerated in s. 220.185, those enumerated in s. 220.1875,
   17  those enumerated in s. 220.193, those enumerated in s. 288.9916,
   18  those enumerated in s. 220.1899, those enumerated in s. 220.194,
   19  and those enumerated in s. 220.196, and those enumerated in s.
   20  220.198.
   21         Section 2. Paragraph (a) of subsection (1) of section
   22  220.13, Florida Statutes, is amended to read:
   23         220.13 “Adjusted federal income” defined.—
   24         (1) The term “adjusted federal income” means an amount
   25  equal to the taxpayer’s taxable income as defined in subsection
   26  (2), or such taxable income of more than one taxpayer as
   27  provided in s. 220.131, for the taxable year, adjusted as
   28  follows:
   29         (a) Additions.—There shall be added to such taxable income:
   30         1.a. The amount of any tax upon or measured by income,
   31  excluding taxes based on gross receipts or revenues, paid or
   32  accrued as a liability to the District of Columbia or any state
   33  of the United States which is deductible from gross income in
   34  the computation of taxable income for the taxable year.
   35         b. Notwithstanding sub-subparagraph a., if a credit taken
   36  under s. 220.1875 is added to taxable income in a previous
   37  taxable year under subparagraph 11. and is taken as a deduction
   38  for federal tax purposes in the current taxable year, the amount
   39  of the deduction allowed shall not be added to taxable income in
   40  the current year. The exception in this sub-subparagraph is
   41  intended to ensure that the credit under s. 220.1875 is added in
   42  the applicable taxable year and does not result in a duplicate
   43  addition in a subsequent year.
   44         2. The amount of interest which is excluded from taxable
   45  income under s. 103(a) of the Internal Revenue Code or any other
   46  federal law, less the associated expenses disallowed in the
   47  computation of taxable income under s. 265 of the Internal
   48  Revenue Code or any other law, excluding 60 percent of any
   49  amounts included in alternative minimum taxable income, as
   50  defined in s. 55(b)(2) of the Internal Revenue Code, if the
   51  taxpayer pays tax under s. 220.11(3).
   52         3. In the case of a regulated investment company or real
   53  estate investment trust, an amount equal to the excess of the
   54  net long-term capital gain for the taxable year over the amount
   55  of the capital gain dividends attributable to the taxable year.
   56         4. That portion of the wages or salaries paid or incurred
   57  for the taxable year which is equal to the amount of the credit
   58  allowable for the taxable year under s. 220.181. This
   59  subparagraph shall expire on the date specified in s. 290.016
   60  for the expiration of the Florida Enterprise Zone Act.
   61         5. That portion of the ad valorem school taxes paid or
   62  incurred for the taxable year which is equal to the amount of
   63  the credit allowable for the taxable year under s. 220.182. This
   64  subparagraph shall expire on the date specified in s. 290.016
   65  for the expiration of the Florida Enterprise Zone Act.
   66         6. The amount taken as a credit under s. 220.195 which is
   67  deductible from gross income in the computation of taxable
   68  income for the taxable year.
   69         7. That portion of assessments to fund a guaranty
   70  association incurred for the taxable year which is equal to the
   71  amount of the credit allowable for the taxable year.
   72         8. In the case of a nonprofit corporation which holds a
   73  pari-mutuel permit and which is exempt from federal income tax
   74  as a farmers’ cooperative, an amount equal to the excess of the
   75  gross income attributable to the pari-mutuel operations over the
   76  attributable expenses for the taxable year.
   77         9. The amount taken as a credit for the taxable year under
   78  s. 220.1895.
   79         10. Up to nine percent of the eligible basis of any
   80  designated project which is equal to the credit allowable for
   81  the taxable year under s. 220.185.
   82         11. The amount taken as a credit for the taxable year under
   83  s. 220.1875. The addition in this subparagraph is intended to
   84  ensure that the same amount is not allowed for the tax purposes
   85  of this state as both a deduction from income and a credit
   86  against the tax. This addition is not intended to result in
   87  adding the same expense back to income more than once.
   88         12. The amount taken as a credit for the taxable year under
   89  s. 220.193.
   90         13. Any portion of a qualified investment, as defined in s.
   91  288.9913, which is claimed as a deduction by the taxpayer and
   92  taken as a credit against income tax pursuant to s. 288.9916.
   93         14. The costs to acquire a tax credit pursuant to s.
   94  288.1254(5) that are deducted from or otherwise reduce federal
   95  taxable income for the taxable year.
   96         15. The amount taken as a credit for the taxable year
   97  pursuant to s. 220.194.
   98         16. The amount taken as a credit for the taxable year under
   99  s. 220.196. The addition in this subparagraph is intended to
  100  ensure that the same amount is not allowed for the tax purposes
  101  of this state as both a deduction from income and a credit
  102  against the tax. The addition is not intended to result in
  103  adding the same expense back to income more than once.
  104         17.The amount taken as a credit for the taxable year
  105  pursuant to s. 220.198.
  106         Section 3. Section 220.198, Florida Statutes, is created to
  107  read:
  108         220.198Internship tax credit program.—
  109         (1)This section may be cited as the “Florida Internship
  110  Tax Credit Program.”
  111         (2)As used in this section, the term:
  112         (a)“Full time” means at least 30 hours per week.
  113         (b)“Qualified business” means a business that is in
  114  existence and has been continuously operating for at least 3
  115  years.
  116         (c)“Student intern” means a person who has completed at
  117  least 60 credit hours at a state university or a Florida College
  118  System institution; a person who is enrolled in a career center
  119  operated by a school district under s. 1001.44 or a charter
  120  technical career center; or any graduate student enrolled at a
  121  state university.
  122         (3)For taxable years beginning on or after January 1,
  123  2022, a qualified business is eligible for a credit against the
  124  tax imposed by this chapter in the amount of $2,000 per student
  125  intern if all of the following apply:
  126         (a)The qualified business employed at least one student
  127  intern in an internship in which the student intern worked full
  128  time in this state for at least 9 consecutive weeks, and the
  129  qualified business provides the department documentation
  130  evidencing each internship claimed.
  131         (b)The qualified business provides the department
  132  documentation for the current taxable year showing that at least
  133  20 percent of the business’ full-time employees were previously
  134  employed by that business as student interns.
  135         (c)At the start of an internship, each student intern
  136  provides the qualified business with verification by the student
  137  intern’s state university, Florida College System institution,
  138  career center operated by a school district under s. 1001.44, or
  139  charter technical career center that the student intern is
  140  enrolled and maintains a minimum grade point average of 2.0 on a
  141  4.0 scale.
  142         (4)Notwithstanding paragraph (3)(b), a qualified business
  143  that, on average for the 3 immediately preceding years, employed
  144  10 or fewer full-time employees may receive the tax credit if it
  145  provides documentation that it previously hired at least one
  146  student intern and, for the current taxable year, that it
  147  employs on a full-time basis at least one employee who was
  148  previously employed by that qualified business as a student
  149  intern.
  150         (5)A qualified business may not claim a tax credit of more
  151  than $10,000 in any one taxable year.
  152         (6)The department may adopt rules governing the manner and
  153  form of applications for the tax credit and establishing
  154  qualification requirements for the tax credit.
  155         (7)A qualified business may carry forward any unused
  156  portion of a tax credit under this section for up to 2 taxable
  157  years.
  158         Section 4. (1) The Department of Revenue is authorized, and
  159  all conditions are deemed met, to adopt emergency rules pursuant
  160  to s. 120.54(4), Florida Statutes, for the purpose of
  161  administering this act.
  162         (2) Notwithstanding any other law, emergency rules adopted
  163  pursuant to subsection (1) are effective for 6 months after
  164  adoption and may be renewed during the pendency of procedures to
  165  adopt permanent rules addressing the subject of the emergency
  166  rules.
  167         (3) This section shall take effect upon this act becoming a
  168  law and expires July 1, 2022.
  169         Section 5. Except as otherwise expressly provided in this
  170  act and except for this section, which shall take effect upon
  171  this act becoming a law, this act shall take effect July 1,
  172  2021.
  173  
  174  ================= T I T L E  A M E N D M E N T ================
  175  And the title is amended as follows:
  176         Delete everything before the enacting clause
  177  and insert:
  178                        A bill to be entitled                      
  179         An act relating to an internship tax credit program;
  180         amending s. 220.02, F.S.; specifying the order in
  181         which the Florida Internship Tax Credit Program
  182         corporate income tax credit created by this act is
  183         applied; amending s. 220.13, F.S.; requiring certain
  184         claimed tax credit amounts to be added to a taxpayer’s
  185         adjusted federal income; creating s. 220.198, F.S.;
  186         providing a short title; defining terms; providing a
  187         corporate income tax credit for qualified businesses
  188         employing student interns if certain criteria are met;
  189         specifying the amount of the credit a qualified
  190         business may claim per student intern; specifying a
  191         limit on the credit claimed per taxable year;
  192         authorizing the Department of Revenue to adopt certain
  193         rules; authorizing a qualified business to carry
  194         forward unused credit for a certain time; authorizing
  195         the department to adopt emergency rules; providing for
  196         expiration of that authority; providing effective
  197         dates.