Florida Senate - 2021 CS for SB 258 By the Committee on Finance and Tax; and Senator Jones 593-02731-21 2021258c1 1 A bill to be entitled 2 An act relating to an internship tax credit program; 3 amending s. 220.02, F.S.; specifying the order in 4 which the Florida Internship Tax Credit Program 5 corporate income tax credit created by this act is 6 applied; amending s. 220.13, F.S.; requiring certain 7 claimed tax credit amounts to be added to a taxpayer’s 8 adjusted federal income; creating s. 220.198, F.S.; 9 providing a short title; defining terms; providing a 10 corporate income tax credit for qualified businesses 11 employing student interns if certain criteria are met; 12 specifying the amount of the credit a qualified 13 business may claim per student intern; specifying a 14 limit on the credit claimed per taxable year; 15 authorizing the Department of Revenue to adopt certain 16 rules; authorizing a qualified business to carry 17 forward unused credit for a certain time; authorizing 18 the department to adopt emergency rules; providing for 19 expiration of that authority; providing effective 20 dates. 21 22 Be It Enacted by the Legislature of the State of Florida: 23 24 Section 1. Subsection (8) of section 220.02, Florida 25 Statutes, is amended to read: 26 220.02 Legislative intent.— 27 (8) It is the intent of the Legislature that credits 28 against either the corporate income tax or the franchise tax be 29 applied in the following order: those enumerated in s. 631.828, 30 those enumerated in s. 220.191, those enumerated in s. 220.181, 31 those enumerated in s. 220.183, those enumerated in s. 220.182, 32 those enumerated in s. 220.1895, those enumerated in s. 220.195, 33 those enumerated in s. 220.184, those enumerated in s. 220.186, 34 those enumerated in s. 220.1845, those enumerated in s. 220.19, 35 those enumerated in s. 220.185, those enumerated in s. 220.1875, 36 those enumerated in s. 220.193, those enumerated in s. 288.9916, 37 those enumerated in s. 220.1899, those enumerated in s. 220.194, 38
andthose enumerated in s. 220.196, and those enumerated in s. 39 220.198. 40 Section 2. Paragraph (a) of subsection (1) of section 41 220.13, Florida Statutes, is amended to read: 42 220.13 “Adjusted federal income” defined.— 43 (1) The term “adjusted federal income” means an amount 44 equal to the taxpayer’s taxable income as defined in subsection 45 (2), or such taxable income of more than one taxpayer as 46 provided in s. 220.131, for the taxable year, adjusted as 47 follows: 48 (a) Additions.—There shall be added to such taxable income: 49 1.a. The amount of any tax upon or measured by income, 50 excluding taxes based on gross receipts or revenues, paid or 51 accrued as a liability to the District of Columbia or any state 52 of the United States which is deductible from gross income in 53 the computation of taxable income for the taxable year. 54 b. Notwithstanding sub-subparagraph a., if a credit taken 55 under s. 220.1875 is added to taxable income in a previous 56 taxable year under subparagraph 11. and is taken as a deduction 57 for federal tax purposes in the current taxable year, the amount 58 of the deduction allowed shall not be added to taxable income in 59 the current year. The exception in this sub-subparagraph is 60 intended to ensure that the credit under s. 220.1875 is added in 61 the applicable taxable year and does not result in a duplicate 62 addition in a subsequent year. 63 2. The amount of interest which is excluded from taxable 64 income under s. 103(a) of the Internal Revenue Code or any other 65 federal law, less the associated expenses disallowed in the 66 computation of taxable income under s. 265 of the Internal 67 Revenue Code or any other law, excluding 60 percent of any 68 amounts included in alternative minimum taxable income, as 69 defined in s. 55(b)(2) of the Internal Revenue Code, if the 70 taxpayer pays tax under s. 220.11(3). 71 3. In the case of a regulated investment company or real 72 estate investment trust, an amount equal to the excess of the 73 net long-term capital gain for the taxable year over the amount 74 of the capital gain dividends attributable to the taxable year. 75 4. That portion of the wages or salaries paid or incurred 76 for the taxable year which is equal to the amount of the credit 77 allowable for the taxable year under s. 220.181. This 78 subparagraph shall expire on the date specified in s. 290.016 79 for the expiration of the Florida Enterprise Zone Act. 80 5. That portion of the ad valorem school taxes paid or 81 incurred for the taxable year which is equal to the amount of 82 the credit allowable for the taxable year under s. 220.182. This 83 subparagraph shall expire on the date specified in s. 290.016 84 for the expiration of the Florida Enterprise Zone Act. 85 6. The amount taken as a credit under s. 220.195 which is 86 deductible from gross income in the computation of taxable 87 income for the taxable year. 88 7. That portion of assessments to fund a guaranty 89 association incurred for the taxable year which is equal to the 90 amount of the credit allowable for the taxable year. 91 8. In the case of a nonprofit corporation which holds a 92 pari-mutuel permit and which is exempt from federal income tax 93 as a farmers’ cooperative, an amount equal to the excess of the 94 gross income attributable to the pari-mutuel operations over the 95 attributable expenses for the taxable year. 96 9. The amount taken as a credit for the taxable year under 97 s. 220.1895. 98 10. Up to nine percent of the eligible basis of any 99 designated project which is equal to the credit allowable for 100 the taxable year under s. 220.185. 101 11. The amount taken as a credit for the taxable year under 102 s. 220.1875. The addition in this subparagraph is intended to 103 ensure that the same amount is not allowed for the tax purposes 104 of this state as both a deduction from income and a credit 105 against the tax. This addition is not intended to result in 106 adding the same expense back to income more than once. 107 12. The amount taken as a credit for the taxable year under 108 s. 220.193. 109 13. Any portion of a qualified investment, as defined in s. 110 288.9913, which is claimed as a deduction by the taxpayer and 111 taken as a credit against income tax pursuant to s. 288.9916. 112 14. The costs to acquire a tax credit pursuant to s. 113 288.1254(5) that are deducted from or otherwise reduce federal 114 taxable income for the taxable year. 115 15. The amount taken as a credit for the taxable year 116 pursuant to s. 220.194. 117 16. The amount taken as a credit for the taxable year under 118 s. 220.196. The addition in this subparagraph is intended to 119 ensure that the same amount is not allowed for the tax purposes 120 of this state as both a deduction from income and a credit 121 against the tax. The addition is not intended to result in 122 adding the same expense back to income more than once. 123 17. The amount taken as a credit for the taxable year 124 pursuant to s. 220.198. 125 Section 3. Section 220.198, Florida Statutes, is created to 126 read: 127 220.198 Internship tax credit program.— 128 (1) This section may be cited as the “Florida Internship 129 Tax Credit Program.” 130 (2) As used in this section, the term: 131 (a) “Full time” means at least 30 hours per week. 132 (b) “Qualified business” means a business that is in 133 existence and has been continuously operating for at least 3 134 years. 135 (c) “Student intern” means a person who has completed at 136 least 60 credit hours at a state university or a Florida College 137 System institution; a person who is enrolled in a career center 138 operated by a school district under s. 1001.44 or a charter 139 technical career center; or any graduate student enrolled at a 140 state university. 141 (3) For taxable years beginning on or after January 1, 142 2022, a qualified business is eligible for a credit against the 143 tax imposed by this chapter in the amount of $2,000 per student 144 intern if all of the following apply: 145 (a) The qualified business employed at least one student 146 intern in an internship in which the student intern worked full 147 time in this state for at least 9 consecutive weeks, and the 148 qualified business provides the department documentation 149 evidencing each internship claimed. 150 (b) The qualified business provides the department 151 documentation for the current taxable year showing that at least 152 20 percent of the business’ full-time employees were previously 153 employed by that business as student interns. 154 (c) At the start of an internship, each student intern 155 provides the qualified business with verification by the student 156 intern’s state university, Florida College System institution, 157 career center operated by a school district under s. 1001.44, or 158 charter technical career center that the student intern is 159 enrolled and maintains a minimum grade point average of 2.0 on a 160 4.0 scale. 161 (4) Notwithstanding paragraph (3)(b), a qualified business 162 that, on average for the 3 immediately preceding years, employed 163 10 or fewer full-time employees may receive the tax credit if it 164 provides documentation that it previously hired at least one 165 student intern and, for the current taxable year, that it 166 employs on a full-time basis at least one employee who was 167 previously employed by that qualified business as a student 168 intern. 169 (5) A qualified business may not claim a tax credit of more 170 than $10,000 in any one taxable year. 171 (6) The department may adopt rules governing the manner and 172 form of applications for the tax credit and establishing 173 qualification requirements for the tax credit. 174 (7) A qualified business may carry forward any unused 175 portion of a tax credit under this section for up to 2 taxable 176 years. 177 Section 4. (1) The Department of Revenue is authorized, and 178 all conditions are deemed met, to adopt emergency rules pursuant 179 to s. 120.54(4), Florida Statutes, for the purpose of 180 administering this act. 181 (2) Notwithstanding any other law, emergency rules adopted 182 pursuant to subsection (1) are effective for 6 months after 183 adoption and may be renewed during the pendency of procedures to 184 adopt permanent rules addressing the subject of the emergency 185 rules. 186 (3) This section shall take effect upon this act becoming a 187 law and expires July 1, 2022. 188 Section 5. Except as otherwise expressly provided in this 189 act and except for this section, which shall take effect upon 190 this act becoming a law, this act shall take effect July 1, 191 2021.