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, and
   31         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.