HB 143

1
A bill to be entitled
2An act relating to tax credits; amending s. 220.02, F.S.;
3revising the priority of tax credits that may be taken
4against the corporate income tax or the franchise tax;
5amending s. 220.13, F.S.; redefining the term "adjusted
6federal income" to include the amount of certain tax
7credits; creating s. 220.1811, F.S.; authorizing
8aerospace-sector jobs tax credits and tuition
9reimbursement tax credits; defining terms; authorizing a
10tax credit to aerospace businesses based on the salary or
11tuition reimbursed to certain employees; specifying the
12maximum annual amount of tax credits for an aerospace
13business; limiting the annual amount of tax credits
14available; prohibiting a business from claiming an
15aerospace-sector jobs tax credit and a tuition
16reimbursement tax credit for the same employee; providing
17for the Department of Revenue to approve applications for
18tax credits; prohibiting increases in the amount of unused
19tax credits carried over in amended tax returns; providing
20fines and criminal penalties for certain unlawful claims
21of tax credits; authorizing the Department of Revenue to
22adopt rules; providing for the expiration of the tax
23credit program; providing for applicability; providing an
24effective date.
25
26Be It Enacted by the Legislature of the State of Florida:
27
28     Section 1.  Subsection (8) of section 220.02, Florida
29Statutes, is amended to read:
30     220.02  Legislative intent.-
31     (8)  It is the intent of the Legislature that Credits
32against either the corporate income tax or the franchise tax
33shall be applied in the following order: those enumerated in s.
34631.828, those enumerated in s. 220.191, those enumerated in s.
35220.181, those enumerated in s. 220.183, those enumerated in s.
36220.182, those enumerated in s. 220.1895, those enumerated in s.
37221.02, those enumerated in s. 220.184, those enumerated in s.
38220.186, those enumerated in s. 220.1845, those enumerated in s.
39220.19, those enumerated in s. 220.185, those enumerated in s.
40220.1875, those enumerated in s. 220.192, those enumerated in s.
41220.193, those enumerated in s. 288.9916, those enumerated in s.
42220.1899, and those enumerated in s. 220.1896, and those
43enumerated in s. 220.1811.
44     Section 2.  Paragraph (a) of subsection (1) of section
45220.13, Florida Statutes, is amended to read:
46     220.13  "Adjusted federal income" defined.-
47     (1)  The term "adjusted federal income" means an amount
48equal to the taxpayer's taxable income as defined in subsection
49(2), or such taxable income of more than one taxpayer as
50provided in s. 220.131, for the taxable year, adjusted as
51follows:
52     (a)  Additions.-There shall be added to such taxable
53income:
54     1.  The amount of any tax upon or measured by income,
55excluding taxes based on gross receipts or revenues, paid or
56accrued as a liability to the District of Columbia or any state
57of the United States which is deductible from gross income in
58the computation of taxable income for the taxable year.
59     2.  The amount of interest which is excluded from taxable
60income under s. 103(a) of the Internal Revenue Code or any other
61federal law, less the associated expenses disallowed in the
62computation of taxable income under s. 265 of the Internal
63Revenue Code or any other law, excluding 60 percent of any
64amounts included in alternative minimum taxable income, as
65defined in s. 55(b)(2) of the Internal Revenue Code, if the
66taxpayer pays tax under s. 220.11(3).
67     3.  In the case of a regulated investment company or real
68estate investment trust, an amount equal to the excess of the
69net long-term capital gain for the taxable year over the amount
70of the capital gain dividends attributable to the taxable year.
71     4.  That portion of the wages or salaries paid or incurred
72for the taxable year which is equal to the amount of the credit
73allowable for the taxable year under s. 220.181. This
74subparagraph shall expire on the date specified in s. 290.016
75for the expiration of the Florida Enterprise Zone Act.
76     5.  That portion of the ad valorem school taxes paid or
77incurred for the taxable year which is equal to the amount of
78the credit allowable for the taxable year under s. 220.182. This
79subparagraph shall expire on the date specified in s. 290.016
80for the expiration of the Florida Enterprise Zone Act.
81     6.  The amount of emergency excise tax paid or accrued as a
82liability to this state under chapter 221 which tax is
83deductible from gross income in the computation of taxable
84income for the taxable year.
85     7.  That portion of assessments to fund a guaranty
86association incurred for the taxable year which is equal to the
87amount of the credit allowable for the taxable year.
88     8.  In the case of a nonprofit corporation which holds a
89pari-mutuel permit and which is exempt from federal income tax
90as a farmers' cooperative, an amount equal to the excess of the
91gross income attributable to the pari-mutuel operations over the
92attributable expenses for the taxable year.
93     9.  The amount taken as a credit for the taxable year under
94s. 220.1895.
95     10.  Up to nine percent of the eligible basis of any
96designated project which is equal to the credit allowable for
97the taxable year under s. 220.185.
98     11.  The amount taken as a credit for the taxable year
99under s. 220.1875. The addition in this subparagraph is intended
100to ensure that the same amount is not allowed for the tax
101purposes of this state as both a deduction from income and a
102credit against the tax. This addition is not intended to result
103in adding the same expense back to income more than once.
104     12.  The amount taken as a credit for the taxable year
105under s. 220.192.
106     13.  The amount taken as a credit for the taxable year
107under s. 220.193.
108     14.  Any portion of a qualified investment, as defined in
109s. 288.9913, which is claimed as a deduction by the taxpayer and
110taken as a credit against income tax pursuant to s. 288.9916.
111     15.  The costs to acquire a tax credit pursuant to s.
112288.1254(5) that are deducted from or otherwise reduce federal
113taxable income for the taxable year.
114     16.  The amount taken as a credit for the taxable year
115under s. 220.1811.
116     Section 3.  Section 220.1811, Florida Statutes, is created
117to read:
118     220.1811  Aerospace-sector jobs tax credit and tuition
119reimbursement tax credit.-
120     (1)  DEFINITIONS.-As used in this section, the term:
121     (a)  "Aerospace business" means a business located in this
122state which is engaged in aerospace, as defined in s. 331.303.
123     (b)  "Qualified employee" means a resident of this state
124who:
125     1.  Is first employed or reemployed by an aerospace
126business on or after January 1, 2012;
127     2.  Received an undergraduate or graduate degree from a
128college or university that is accredited by a national
129accrediting body; received a technical degree or certification
130related to aerospace from a technical training institution; or
131completed an aerospace development workforce training program
132coordinated by Workforce Florida, Inc.;
133     3.  Is not an owner, partner, or majority stockholder of an
134aerospace business; and
135     4.  Is employed for at least 6 months.
136     (c)  "Tuition reimbursed to a qualified employee" means a
137lump-sum payment by an aerospace business to a qualified
138employee, which may not exceed the average annual tuition, as
139reported by the Board of Governors of the State University
140System, for a Florida resident who is a full-time undergraduate
141student enrolled in a public college or university. The term
142does not include the cost of books, fees, or room and board.
143     (2)  AEROSPACE-SECTOR JOBS TAX CREDIT.-
144     (a)  A credit against the tax imposed under this chapter
145may be claimed by an aerospace business for compensation paid to
146a qualified employee.
147     (b)  The credit authorized by this subsection shall equal
14810 percent of the compensation paid for the first through fifth
149years of employment in this state by an aerospace business.
150     (c)  The credit authorized by this subsection may not
151exceed $12,500 annually for each qualified employee.
152     (d)  This credit applies only with respect to wages subject
153to unemployment tax.
154     (e)  If the credit is not fully used in any one year, the
155unused amount may be carried forward for a period not to exceed
1565 years. The carryover credit may be used in a subsequent year
157if the tax imposed by this chapter for such year exceeds the
158credit for such year after applying the other credits and unused
159credit carryovers in the order provided in s. 220.02(8).
160     (3)  TUITION REIMBURSEMENT TAX CREDIT.-
161     (a)  A credit against the tax imposed under this chapter
162may be claimed by an aerospace business for 50 percent of
163tuition reimbursed to a qualified employee in a tax year.
164     (b)  The credit may be claimed only if the qualified
165employee was awarded an undergraduate or graduate degree, a
166technical certification, or a certification from a training
167program coordinated by Workforce Florida, Inc., within 1 year
168after commencing employment with the business requesting the
169credit, and may be claimed within 4 years after employment of
170the qualified employee.
171     (c)  If this credit is not fully used in any one year, the
172unused amount may be carried forward for a period not to exceed
1735 years. The carryover credit may be used in a subsequent year
174if the tax imposed under this chapter for such year exceeds the
175credit for such year after applying the other credits and unused
176credit carryovers in the order provided in s. 220.02(8).
177     (4)  MAXIMUM CREDITS FOR AN AEROSPACE BUSINESS.-The maximum
178amount of credits under this section which may be claimed by any
179single aerospace business in a calendar year is $200,000.
180     (5)  ANNUAL LIMIT ON TAX CREDITS.-The total amount of
181credits that may be granted under this section is $2 million in
182any calendar year. A credit that is claimed after the $2 million
183limit is reached shall be disallowed.
184     (6)  DUPLICATION OF TAX CREDITS.-A business may not claim
185an aerospace-sector jobs tax credit and a tuition reimbursement
186tax credit for the same qualified employee.
187     (7)  APPLICATION FOR TAX CREDITS.-
188     (a)  An aerospace business must apply to the department for
189authorization to claim an aerospace-sector jobs tax credit or a
190tuition reimbursement tax credit. The application must be filed
191under oath and include:
192     1.  The name and address of the business and documentation
193that the business is an aerospace business.
194     2.  For each employee for which a tax credit is sought:
195     a.  The employee's name and documentation that the employee
196is a qualified employee.
197     b.  The salary or hourly wages, including the hourly wages
198subject to unemployment tax paid to the qualified employee.
199     c.  The location of the community college, college,
200university, technical institution, or training program
201coordinated by Workforce Florida, Inc., from which the qualified
202employee received his or her degree or certification.
203     d.  A statement as to whether the applicant is seeking an
204aerospace-sector jobs tax credit or a tuition reimbursement tax
205credit.
206     (b)  The applicant for a tax credit has the burden of
207demonstrating to the satisfaction of the department that it
208meets the requirements of this section.
209     (8)  LIMITS ON THE CARRY OVER OF TAX CREDITS.-An aerospace
210business may not carry over more tax credits in an amended
211return than were claimed on the original return for the taxable
212year. This subsection does not limit increases in the amount of
213credit claimed on an amended return due to the use of any credit
214amount previously carried over pursuant to paragraph (2)(e) or
215paragraph (3)(c).
216     (9)  PENALTIES.-
217     (a)  Any person who fraudulently claims a credit under this
218section is liable for repayment of the credit, plus a mandatory
219penalty in the amount of 200 percent of the credit, plus
220interest at the rate provided in s. 220.807, and commits a
221felony of the third degree, punishable as provided in s.
222775.082, s. 775.083, or s. 775.084.
223     (b)  Any person who makes an underpayment of tax as a
224result of a grossly overstated claim for this credit commits a
225felony of the third degree, punishable as provided in s.
226775.082, s. 775.083, or s. 775.084. As used in this paragraph,
227the term "grossly overstated claim" means a claim in an amount
228in excess of 100 percent of the amount of credit allowable under
229this section.
230     (10)  RULEMAKING.-The department may adopt rules to
231prescribe any necessary forms required to claim a tax credit
232under this section and to provide guidelines and procedures
233required to administer this section.
234     (11)  EXPIRATION.-This section, except paragraphs (2)(e)
235and (3)(c) and subsection (8), expires December 31, 2021. An
236aerospace business may not claim a new tax credit under this
237section after that date. However, an aerospace business may
238claim tax credits carried over pursuant to paragraph (2)(e) or
239paragraph (3)(c).
240     Section 4.  This act shall take effect January 1, 2012, and
241applies to tax years beginning on or after that date.


CODING: Words stricken are deletions; words underlined are additions.