Florida Senate - 2022 SB 1090
By Senator Gruters
23-01061A-22 20221090__
1 A bill to be entitled
2 An act relating to the corporate income tax; amending
3 s. 220.03, F.S.; adopting the 2022 version of the
4 Internal Revenue Code for purposes of the state
5 corporate income tax code; providing for retroactive
6 operation; amending s. 220.1105, F.S.; revising the
7 timeframe during which the adjustment of the corporate
8 tax rate based on net collections exceeding adjusted
9 forecasted collections applies; revising the
10 definition of the term “eligible taxpayer” for certain
11 purposes; providing for retroactive operation;
12 amending s. 220.13, F.S.; providing applicability for
13 adjustments taxpayers must make to adjusted federal
14 income with respect to bonus depreciation; providing
15 for retroactive operation; revising the adjustments
16 taxpayers must make to adjusted federal income with
17 respect to business interest; providing effective
18 dates.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Effective upon becoming a law and operating
23 retroactively to January 1, 2022, paragraph (n) of subsection
24 (1) and paragraph (c) of subsection (2) of section 220.03,
25 Florida Statutes, are amended to read:
26 220.03 Definitions.—
27 (1) SPECIFIC TERMS.—When used in this code, and when not
28 otherwise distinctly expressed or manifestly incompatible with
29 the intent thereof, the following terms shall have the following
30 meanings:
31 (n) “Internal Revenue Code” means the United States
32 Internal Revenue Code of 1986, as amended and in effect on
33 January 1, 2022 2021, except as provided in subsection (3).
34 (2) DEFINITIONAL RULES.—When used in this code and neither
35 otherwise distinctly expressed nor manifestly incompatible with
36 the intent thereof:
37 (c) Any term used in this code has the same meaning as when
38 used in a comparable context in the Internal Revenue Code and
39 other statutes of the United States relating to federal income
40 taxes, as such code and statutes are in effect on January 1,
41 2022 2021. However, if subsection (3) is implemented, the
42 meaning of a term shall be taken at the time the term is applied
43 under this code.
44 Section 2. Effective upon becoming a law and operating
45 retroactively to June 30, 2021, subsection (4) of section
46 220.1105, Florida Statutes, is amended to read:
47 220.1105 Tax imposed; automatic refunds and downward
48 adjustments to tax rates.—
49 (4) For fiscal years 2018-2019 and 2019-2020 through 2020
50 2021, any amount by which net collections for a fiscal year
51 exceed adjusted forecasted collections for that fiscal year
52 shall only be used to provide refunds to corporate income tax
53 payers as follows:
54 (a) For purposes of this subsection, the term:
55 1. “Eligible taxpayer” means:
56 a. For fiscal year 2018-2019, a taxpayer whose taxable year
57 begins between April 1, 2017, and March 31, 2018, and whose
58 final tax liability for such taxable year is greater than zero;
59 or
60 b. For fiscal year 2019-2020, a taxpayer whose taxable year
61 begins between April 1, 2018, and March 31, 2019, and whose
62 final tax liability for such taxable year is greater than zero;
63 or
64 c. For fiscal year 2020-2021, a taxpayer whose taxable year
65 begins between April 1, 2019, and March 31, 2020, and whose
66 final tax liability for such taxable year is greater than zero.
67 2. “Excess collections” for a fiscal year means the amount
68 by which net collections for a fiscal year exceeds adjusted
69 forecasted collections for that fiscal year.
70 3. “Final tax liability” means the taxpayer’s amount of tax
71 due under this chapter for a taxable year, reported on a return
72 filed with the department, plus the amount of any credit taken
73 on such return under s. 220.1875.
74 4. “Total eligible tax liability” for a fiscal year means
75 the sum of final tax liabilities of all eligible taxpayers for a
76 fiscal year as such liabilities are shown on the latest return
77 filed with the department as of February 1 immediately following
78 that fiscal year.
79 5. “Taxpayer refund share” for a fiscal year means an
80 eligible taxpayer’s final tax liability as a percentage of the
81 total eligible tax liability for that fiscal year.
82 6. “Taxpayer refund” for a fiscal year means the taxpayer
83 refund share for a fiscal year multiplied by the excess
84 collections for a fiscal year.
85 (b) No later than April 15 following a fiscal year, the
86 department shall determine total eligible tax liability for that
87 fiscal year, the taxpayer refund share for that fiscal year for
88 each eligible taxpayer, and the taxpayer refund for that fiscal
89 year for each eligible taxpayer.
90 (c) No later than May 1 following a fiscal year, the
91 department shall refund a taxpayer refund for that fiscal year
92 to each eligible taxpayer.
93 Section 3. Effective upon becoming a law and operating
94 retroactively to January 1, 2020, paragraph (e) of subsection
95 (1) of section 220.13, Florida Statutes, is amended to read:
96 220.13 “Adjusted federal income” defined.—
97 (1) The term “adjusted federal income” means an amount
98 equal to the taxpayer’s taxable income as defined in subsection
99 (2), or such taxable income of more than one taxpayer as
100 provided in s. 220.131, for the taxable year, adjusted as
101 follows:
102 (e) Adjustments related to federal acts.—Taxpayers shall be
103 required to make the adjustments prescribed in this paragraph
104 for Florida tax purposes with respect to certain tax benefits
105 received pursuant to the Economic Stimulus Act of 2008; the
106 American Recovery and Reinvestment Act of 2009; the Small
107 Business Jobs Act of 2010; the Tax Relief, Unemployment
108 Insurance Reauthorization, and Job Creation Act of 2010; the
109 American Taxpayer Relief Act of 2012; the Tax Increase
110 Prevention Act of 2014; the Consolidated Appropriations Act,
111 2016; the Tax Cuts and Jobs Act of 2017; and the Coronavirus
112 Aid, Relief, and Economic Security Act of 2020.
113 1.a. There shall be added to such taxable income an amount
114 equal to 100 percent of any amount deducted for federal income
115 tax purposes as bonus depreciation for the taxable year pursuant
116 to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
117 amended by s. 103 of Pub. L. No. 110-185; s. 1201 of Pub. L. No.
118 111-5; s. 2022 of Pub. L. No. 111-240; s. 401 of Pub. L. No.
119 111-312; s. 331 of Pub. L. No. 112-240; s. 125 of Pub. L. No.
120 113-295; s. 143 of Division Q of Pub. L. No. 114-113; and s.
121 13201 of Pub. L. No. 115-97, for property placed in service
122 after December 31, 2007, and before January 1, 2027.
123 b. For the taxable year and for each of the 6 subsequent
124 taxable years, there shall be subtracted from such taxable
125 income an amount equal to one-seventh of the amount by which
126 taxable income was increased pursuant to this subparagraph,
127 notwithstanding any sale or other disposition of the property
128 that is the subject of the adjustments and regardless of whether
129 such property remains in service in the hands of the taxpayer.
130 c. The provisions of Sub-subparagraph b. does do not apply
131 to amounts by which taxable income was increased pursuant to
132 this subparagraph for amounts deducted for federal income tax
133 purposes as bonus depreciation for qualified improvement
134 property as defined in s. 168(e)(6) of the Internal Revenue Code
135 of 1986, as amended by s. 13204 of Pub. L. No. 115-97.
136
137 This subparagraph does not apply to property placed in service
138 in taxable years beginning on or after January 1, 2020.
139 2. There shall be added to such taxable income an amount
140 equal to 100 percent of any amount in excess of $128,000
141 deducted for federal income tax purposes for the taxable year
142 pursuant to s. 179 of the Internal Revenue Code of 1986, as
143 amended by s. 102 of Pub. L. No. 110-185; s. 1202 of Pub. L. No.
144 111-5; s. 2021 of Pub. L. No. 111-240; s. 402 of Pub. L. No.
145 111-312; s. 315 of Pub. L. No. 112-240; and s. 127 of Pub. L.
146 No. 113-295, for taxable years beginning after December 31,
147 2007, and before January 1, 2015. For the taxable year and for
148 each of the 6 subsequent taxable years, there shall be
149 subtracted from such taxable income one-seventh of the amount by
150 which taxable income was increased pursuant to this
151 subparagraph, notwithstanding any sale or other disposition of
152 the property that is the subject of the adjustments and
153 regardless of whether such property remains in service in the
154 hands of the taxpayer.
155 3. There shall be added to such taxable income an amount
156 equal to the amount of deferred income not included in such
157 taxable income pursuant to s. 108(i)(1) of the Internal Revenue
158 Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
159 shall be subtracted from such taxable income an amount equal to
160 the amount of deferred income included in such taxable income
161 pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
162 as amended by s. 1231 of Pub. L. No. 111-5.
163 4. For taxable years beginning after December 31, 2018, and
164 before January 1, 2021, there shall be added to such taxable
165 income an amount equal to the excess, if any, of:
166 a. One hundred percent of any amount deducted for federal
167 income tax purposes as business interest expense for the taxable
168 year pursuant to s. 163(j) of the Internal Revenue Code of 1986,
169 as amended by s. 2306 of Pub. L. No. 116-136; over
170 b. One hundred percent of the amount that would be
171 deductible for federal income tax purposes as business interest
172 expense for the taxable year if calculated pursuant to s. 163(j)
173 of the Internal Revenue Code of 1986, as amended by s. 13301 of
174 Pub. L. No. 115-97.
175
176 Any expense added back pursuant to this subparagraph shall be
177 treated as a disallowed business expense carryforward from prior
178 years for the year or years following the addition, until such
179 time as the expense has been used.
180 5. With respect to qualified improvement property as
181 defined in s. 168(e)(6) of the Internal Revenue Code of 1986, as
182 amended by s. 13204 of Pub. L. No. 115-97, that was placed in
183 service on or after January 1, 2018:
184 a. There shall be added to such taxable income an amount
185 equal to 100 percent of any amount deducted for federal income
186 tax purposes under s. 167(a) of the Internal Revenue Code of
187 1986. There shall be subtracted an amount equal to the amount of
188 depreciation that would have been deductible pursuant to s.
189 167(a) of the Internal Revenue Code of 1986 in effect on January
190 1, 2020 and without regard to s. 2307 of Pub. L. No. 116-136,
191 notwithstanding any sale or other disposition of the property
192 that is the subject of the adjustments and regardless of whether
193 such property remains in service in the hands of the taxpayer.
194 b. The department may adopt rules necessary to administer
195 the provisions of this subparagraph, including rules, forms, and
196 guidelines for computing depreciation on qualified improvement
197 property, as defined in s. 168(e)(6) of the Internal Revenue
198 Code of 1986.
199 6. For taxable years beginning after December 31, 2020, and
200 before January 1, 2026, the changes made to the Internal Revenue
201 Code by Pub. L. No. 116-260, Division EE, Title I, s. 116 and
202 Title II, s. 210 shall not apply to this chapter. Taxable income
203 under this section shall be calculated as though changes made by
204 those sections were not made to the Internal Revenue Code. The
205 Department of Revenue may adopt rules necessary to administer
206 the provisions of this subparagraph, including rules, forms, and
207 guidelines for treatment of expenses and depreciation related to
208 these changes.
209 7. Subtractions available under this paragraph may be
210 transferred to the surviving or acquiring entity following a
211 merger or acquisition and used in the same manner and with the
212 same limitations as specified by this paragraph.
213 8. The additions and subtractions specified in this
214 paragraph are intended to adjust taxable income for Florida tax
215 purposes, and, notwithstanding any other provision of this code,
216 such additions and subtractions shall be permitted to change a
217 taxpayer’s net operating loss for Florida tax purposes.
218 Section 4. The amendment made to s. 220.13(1)(e), Florida
219 Statutes, in section 3 of this act applies to taxable years
220 beginning on or after January 1, 2020.
221 Section 5. Effective January 1, 2023, paragraph (e) of
222 subsection (1) of section 220.13, Florida Statutes, as amended
223 by this act, is amended to read:
224 220.13 “Adjusted federal income” defined.—
225 (1) The term “adjusted federal income” means an amount
226 equal to the taxpayer’s taxable income as defined in subsection
227 (2), or such taxable income of more than one taxpayer as
228 provided in s. 220.131, for the taxable year, adjusted as
229 follows:
230 (e) Adjustments related to federal acts.—Taxpayers shall be
231 required to make the adjustments prescribed in this paragraph
232 for Florida tax purposes with respect to certain tax benefits
233 received pursuant to the Economic Stimulus Act of 2008; the
234 American Recovery and Reinvestment Act of 2009; the Small
235 Business Jobs Act of 2010; the Tax Relief, Unemployment
236 Insurance Reauthorization, and Job Creation Act of 2010; the
237 American Taxpayer Relief Act of 2012; the Tax Increase
238 Prevention Act of 2014; the Consolidated Appropriations Act,
239 2016; the Tax Cuts and Jobs Act of 2017; and the Coronavirus
240 Aid, Relief, and Economic Security Act of 2020.
241 1.a. There shall be added to such taxable income an amount
242 equal to 100 percent of any amount deducted for federal income
243 tax purposes as bonus depreciation for the taxable year pursuant
244 to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
245 amended by s. 103 of Pub. L. No. 110-185; s. 1201 of Pub. L. No.
246 111-5; s. 2022 of Pub. L. No. 111-240; s. 401 of Pub. L. No.
247 111-312; s. 331 of Pub. L. No. 112-240; s. 125 of Pub. L. No.
248 113-295; s. 143 of Division Q of Pub. L. No. 114-113; and s.
249 13201 of Pub. L. No. 115-97, for property placed in service
250 after December 31, 2007, and before January 1, 2027.
251 b. For the taxable year and for each of the 6 subsequent
252 taxable years, there shall be subtracted from such taxable
253 income an amount equal to one-seventh of the amount by which
254 taxable income was increased pursuant to this subparagraph,
255 notwithstanding any sale or other disposition of the property
256 that is the subject of the adjustments and regardless of whether
257 such property remains in service in the hands of the taxpayer.
258 c. Sub-subparagraph b. does not apply to amounts by which
259 taxable income was increased pursuant to this subparagraph for
260 amounts deducted for federal income tax purposes as bonus
261 depreciation for qualified improvement property as defined in s.
262 168(e)(6) of the Internal Revenue Code of 1986, as amended by s.
263 13204 of Pub. L. No. 115-97.
264
265 This subparagraph does not apply to property placed in service
266 in taxable years beginning on or after January 1, 2020.
267 2. There shall be added to such taxable income an amount
268 equal to 100 percent of any amount in excess of $128,000
269 deducted for federal income tax purposes for the taxable year
270 pursuant to s. 179 of the Internal Revenue Code of 1986, as
271 amended by s. 102 of Pub. L. No. 110-185; s. 1202 of Pub. L. No.
272 111-5; s. 2021 of Pub. L. No. 111-240; s. 402 of Pub. L. No.
273 111-312; s. 315 of Pub. L. No. 112-240; and s. 127 of Pub. L.
274 No. 113-295, for taxable years beginning after December 31,
275 2007, and before January 1, 2015. For the taxable year and for
276 each of the 6 subsequent taxable years, there shall be
277 subtracted from such taxable income one-seventh of the amount by
278 which taxable income was increased pursuant to this
279 subparagraph, notwithstanding any sale or other disposition of
280 the property that is the subject of the adjustments and
281 regardless of whether such property remains in service in the
282 hands of the taxpayer.
283 3. There shall be added to such taxable income an amount
284 equal to the amount of deferred income not included in such
285 taxable income pursuant to s. 108(i)(1) of the Internal Revenue
286 Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
287 shall be subtracted from such taxable income an amount equal to
288 the amount of deferred income included in such taxable income
289 pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
290 as amended by s. 1231 of Pub. L. No. 111-5.
291 4. For taxable years beginning on or after January 1, 2023,
292 there shall be added to such taxable income an amount equal to
293 the amount of business interest taken as a deduction for federal
294 tax purposes subject to the limitation provided in s. 163(j) of
295 the Internal Revenue Code. There shall be subtracted from such
296 taxable income the amount of business interest paid or accrued
297 within the taxable year which would have been deductible at the
298 federal level consistent with s. 163 of the Internal Revenue
299 Code as it existed and applied immediately before the enactment
300 of the Tax Cuts and Jobs Act of 2017, Pub. L. No. 115-97 For
301 taxable years beginning after December 31, 2018, and before
302 January 1, 2021, there shall be added to such taxable income an
303 amount equal to the excess, if any, of:
304 a. One hundred percent of any amount deducted for federal
305 income tax purposes as business interest expense for the taxable
306 year pursuant to s. 163(j) of the Internal Revenue Code of 1986,
307 as amended by s. 2306 of Pub. L. No. 116-136; over
308 b. One hundred percent of the amount that would be
309 deductible for federal income tax purposes as business interest
310 expense for the taxable year if calculated pursuant to s. 163(j)
311 of the Internal Revenue Code of 1986, as amended by s. 13301 of
312 Pub. L. No. 115-97.
313
314 Any expense added back pursuant to this subparagraph shall be
315 treated as a disallowed business expense carryforward from prior
316 years for the year or years following the addition, until such
317 time as the expense has been used.
318 5. With respect to qualified improvement property as
319 defined in s. 168(e)(6) of the Internal Revenue Code of 1986, as
320 amended by s. 13204 of Pub. L. No. 115-97, that was placed in
321 service on or after January 1, 2018:
322 a. There shall be added to such taxable income an amount
323 equal to 100 percent of any amount deducted for federal income
324 tax purposes under s. 167(a) of the Internal Revenue Code of
325 1986. There shall be subtracted an amount equal to the amount of
326 depreciation that would have been deductible pursuant to s.
327 167(a) of the Internal Revenue Code of 1986 in effect on January
328 1, 2020 and without regard to s. 2307 of Pub. L. No. 116-136,
329 notwithstanding any sale or other disposition of the property
330 that is the subject of the adjustments and regardless of whether
331 such property remains in service in the hands of the taxpayer.
332 b. The department may adopt rules necessary to administer
333 the provisions of this subparagraph, including rules, forms, and
334 guidelines for computing depreciation on qualified improvement
335 property, as defined in s. 168(e)(6) of the Internal Revenue
336 Code of 1986.
337 6. For taxable years beginning after December 31, 2020, and
338 before January 1, 2026, the changes made to the Internal Revenue
339 Code by Pub. L. No. 116-260, Division EE, Title I, s. 116 and
340 Title II, s. 210 shall not apply to this chapter. Taxable income
341 under this section shall be calculated as though changes made by
342 those sections were not made to the Internal Revenue Code. The
343 Department of Revenue may adopt rules necessary to administer
344 the provisions of this subparagraph, including rules, forms, and
345 guidelines for treatment of expenses and depreciation related to
346 these changes.
347 7. Subtractions available under this paragraph may be
348 transferred to the surviving or acquiring entity following a
349 merger or acquisition and used in the same manner and with the
350 same limitations as specified by this paragraph.
351 8. The additions and subtractions specified in this
352 paragraph are intended to adjust taxable income for Florida tax
353 purposes, and, notwithstanding any other provision of this code,
354 such additions and subtractions shall be permitted to change a
355 taxpayer’s net operating loss for Florida tax purposes.
356 Section 6. Except as otherwise expressly provided in this
357 act, this act shall take effect upon becoming a law.