Florida Senate - 2021 COMMITTEE AMENDMENT Bill No. SB 258 Ì779720+Î779720 LEGISLATIVE ACTION Senate . House Comm: RCS . 03/11/2021 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 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, 19andthose 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: 108 220.198 Internship 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.