Florida Senate - 2023 SB 1244 By Senator Polsky 30-01411-23 20231244__ 1 A bill to be entitled 2 An act relating to the corporate income tax; amending 3 s. 220.13, F.S.; requiring the subtraction from 4 adjusted federal income certain expenditures of a 5 taxpayer that is a medical marijuana treatment center; 6 providing an effective date. 7 8 Be It Enacted by the Legislature of the State of Florida: 9 10 Section 1. Paragraph (b) of subsection (1) of section 11 220.13, Florida Statutes, is amended to read: 12 220.13 “Adjusted federal income” defined.— 13 (1) The term “adjusted federal income” means an amount 14 equal to the taxpayer’s taxable income as defined in subsection 15 (2), or such taxable income of more than one taxpayer as 16 provided in s. 220.131, for the taxable year, adjusted as 17 follows: 18 (b) Subtractions.— 19 1. There shall be subtracted from such taxable income: 20 a. The net operating loss deduction allowable for federal 21 income tax purposes under s. 172 of the Internal Revenue Code 22 for the taxable year, except that any net operating loss that is 23 transferred pursuant to s. 220.194(6) may not be deducted by the 24 seller, 25 b. The net capital loss allowable for federal income tax 26 purposes under s. 1212 of the Internal Revenue Code for the 27 taxable year, 28 c. The excess charitable contribution deduction allowable 29 for federal income tax purposes under s. 170(d)(2) of the 30 Internal Revenue Code for the taxable year,and31 d. The excess contributions deductions allowable for 32 federal income tax purposes under s. 404 of the Internal Revenue 33 Code for the taxable year, and 34 e. For a taxpayer that is a medical marijuana treatment 35 center under s. 381.986, an amount equal to any expenditure that 36 is eligible to be claimed as a federal income tax deduction but 37 is disallowed because marijuana is a controlled substance under 38 federal law. 39 40 However, a net operating loss and a capital loss shall never be 41 carried back as a deduction to a prior taxable year, but all 42 deductions attributable to such losses shall be deemed net 43 operating loss carryovers and capital loss carryovers, 44 respectively, and treated in the same manner, to the same 45 extent, and for the same time periods as are prescribed for such 46 carryovers in ss. 172 and 1212, respectively, of the Internal 47 Revenue Code. 48 2. There shall be subtracted from such taxable income any 49 amount to the extent included therein the following: 50 a. Dividends treated as received from sources without the 51 United States, as determined under s. 862 of the Internal 52 Revenue Code. 53 b. All amounts included in taxable income under s. 78, s. 54 951, or s. 951A of the Internal Revenue Code. 55 56 However, any amount subtracted under this subparagraph is 57 allowed only to the extent such amount is not deductible in 58 determining federal taxable income. As to any amount subtracted 59 under this subparagraph, there shall be added to such taxable 60 income all expenses deducted on the taxpayer’s return for the 61 taxable year which are attributable, directly or indirectly, to 62 such subtracted amount. Further, no amount shall be subtracted 63 with respect to dividends paid or deemed paid by a Domestic 64 International Sales Corporation. 65 3. In computing “adjusted federal income” for taxable years 66 beginning after December 31, 1976, there shall be allowed as a 67 deduction the amount of wages and salaries paid or incurred 68 within this state for the taxable year for which no deduction is 69 allowed pursuant to s. 280C(a) of the Internal Revenue Code 70 (relating to credit for employment of certain new employees). 71 4. There shall be subtracted from such taxable income any 72 amount of nonbusiness income included therein. 73 5. There shall be subtracted any amount of taxes of foreign 74 countries allowable as credits for taxable years beginning on or 75 after September 1, 1985, under s. 901 of the Internal Revenue 76 Code to any corporation which derived less than 20 percent of 77 its gross income or loss for its taxable year ended in 1984 from 78 sources within the United States, as described in s. 79 861(a)(2)(A) of the Internal Revenue Code, not including credits 80 allowed under ss. 902 and 960 of the Internal Revenue Code, 81 withholding taxes on dividends within the meaning of sub 82 subparagraph 2.a., and withholding taxes on royalties, interest, 83 technical service fees, and capital gains. 84 6. Notwithstanding any other provision of this code, except 85 with respect to amounts subtracted pursuant to subparagraphs 1. 86 and 3., any increment of any apportionment factor which is 87 directly related to an increment of gross receipts or income 88 which is deducted, subtracted, or otherwise excluded in 89 determining adjusted federal income shall be excluded from both 90 the numerator and denominator of such apportionment factor. 91 Further, all valuations made for apportionment factor purposes 92 shall be made on a basis consistent with the taxpayer’s method 93 of accounting for federal income tax purposes. 94 Section 2. This act shall take effect July 1, 2023.