CS/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, or any other state tax credit or
17tax incentive refund, for the same employee; providing for
18the Department of Revenue to approve applications for tax
19credits; prohibiting increases in the amount of unused tax
20credits carried over in amended tax returns; providing
21fines and criminal penalties for certain unlawful claims
22of tax credits; authorizing the Department of Revenue to
23adopt rules; providing for the expiration of the tax
24credit program; providing for applicability; providing an
25effective date.
26
27Be It Enacted by the Legislature of the State of Florida:
28
29     Section 1.  Subsection (8) of section 220.02, Florida
30Statutes, is amended to read:
31     220.02  Legislative intent.-
32     (8)  It is the intent of the Legislature that Credits
33against either the corporate income tax or the franchise tax
34shall be applied in the following order: those enumerated in s.
35631.828, those enumerated in s. 220.191, those enumerated in s.
36220.181, those enumerated in s. 220.183, those enumerated in s.
37220.182, those enumerated in s. 220.1895, those enumerated in s.
38221.02, those enumerated in s. 220.184, those enumerated in s.
39220.186, those enumerated in s. 220.1845, those enumerated in s.
40220.19, those enumerated in s. 220.185, those enumerated in s.
41220.1875, those enumerated in s. 220.192, those enumerated in s.
42220.193, those enumerated in s. 288.9916, those enumerated in s.
43220.1899, and those enumerated in s. 220.1896, and those
44enumerated in s. 220.1811.
45     Section 2.  Paragraph (a) of subsection (1) of section
46220.13, Florida Statutes, is amended to read:
47     220.13  "Adjusted federal income" defined.-
48     (1)  The term "adjusted federal income" means an amount
49equal to the taxpayer's taxable income as defined in subsection
50(2), or such taxable income of more than one taxpayer as
51provided in s. 220.131, for the taxable year, adjusted as
52follows:
53     (a)  Additions.-There shall be added to such taxable
54income:
55     1.  The amount of any tax upon or measured by income,
56excluding taxes based on gross receipts or revenues, paid or
57accrued as a liability to the District of Columbia or any state
58of the United States which is deductible from gross income in
59the computation of taxable income for the taxable year.
60     2.  The amount of interest which is excluded from taxable
61income under s. 103(a) of the Internal Revenue Code or any other
62federal law, less the associated expenses disallowed in the
63computation of taxable income under s. 265 of the Internal
64Revenue Code or any other law, excluding 60 percent of any
65amounts included in alternative minimum taxable income, as
66defined in s. 55(b)(2) of the Internal Revenue Code, if the
67taxpayer pays tax under s. 220.11(3).
68     3.  In the case of a regulated investment company or real
69estate investment trust, an amount equal to the excess of the
70net long-term capital gain for the taxable year over the amount
71of the capital gain dividends attributable to the taxable year.
72     4.  That portion of the wages or salaries paid or incurred
73for the taxable year which is equal to the amount of the credit
74allowable for the taxable year under s. 220.181. This
75subparagraph shall expire on the date specified in s. 290.016
76for the expiration of the Florida Enterprise Zone Act.
77     5.  That portion of the ad valorem school taxes paid or
78incurred for the taxable year which is equal to the amount of
79the credit allowable for the taxable year under s. 220.182. This
80subparagraph shall expire on the date specified in s. 290.016
81for the expiration of the Florida Enterprise Zone Act.
82     6.  The amount of emergency excise tax paid or accrued as a
83liability to this state under chapter 221 which tax is
84deductible from gross income in the computation of taxable
85income for the taxable year.
86     7.  That portion of assessments to fund a guaranty
87association incurred for the taxable year which is equal to the
88amount of the credit allowable for the taxable year.
89     8.  In the case of a nonprofit corporation which holds a
90pari-mutuel permit and which is exempt from federal income tax
91as a farmers' cooperative, an amount equal to the excess of the
92gross income attributable to the pari-mutuel operations over the
93attributable expenses for the taxable year.
94     9.  The amount taken as a credit for the taxable year under
95s. 220.1895.
96     10.  Up to nine percent of the eligible basis of any
97designated project which is equal to the credit allowable for
98the taxable year under s. 220.185.
99     11.  The amount taken as a credit for the taxable year
100under s. 220.1875. The addition in this subparagraph is intended
101to ensure that the same amount is not allowed for the tax
102purposes of this state as both a deduction from income and a
103credit against the tax. This addition is not intended to result
104in adding the same expense back to income more than once.
105     12.  The amount taken as a credit for the taxable year
106under s. 220.192.
107     13.  The amount taken as a credit for the taxable year
108under s. 220.193.
109     14.  Any portion of a qualified investment, as defined in
110s. 288.9913, which is claimed as a deduction by the taxpayer and
111taken as a credit against income tax pursuant to s. 288.9916.
112     15.  The costs to acquire a tax credit pursuant to s.
113288.1254(5) that are deducted from or otherwise reduce federal
114taxable income for the taxable year.
115     16.  The amount taken as a credit for the taxable year
116under s. 220.1811.
117     Section 3.  Section 220.1811, Florida Statutes, is created
118to read:
119     220.1811  Aerospace-sector jobs tax credit and tuition
120reimbursement tax credit.-
121     (1)  DEFINITIONS.-As used in this section, the term:
122     (a)  "Aerospace business" means a business located in this
123state which is engaged in aerospace, as defined in s. 331.303.
124     (b)  "Qualified employee" means a resident of this state
125who:
126     1.  Is first employed or reemployed by an aerospace
127business on or after January 1, 2012;
128     2.  Received an undergraduate or graduate degree from a
129college or university that is accredited by a national
130accrediting body; received a technical degree or certification
131related to aerospace from a technical training institution; or
132completed an aerospace development workforce training program
133coordinated by Workforce Florida, Inc.;
134     3.  Is not an owner, partner, or majority stockholder of an
135aerospace business; and
136     4.  Is employed for at least 6 months.
137     (c)  "Tuition reimbursed to a qualified employee" means a
138lump-sum payment by an aerospace business to a qualified
139employee, which may not exceed the average annual tuition, as
140reported by the Board of Governors of the State University
141System, for a Florida resident who is a full-time undergraduate
142student enrolled in a public college or university. The term
143does not include the cost of books, fees, or room and board.
144     (2)  AEROSPACE-SECTOR JOBS TAX CREDIT.-
145     (a)  A credit against the tax imposed under this chapter
146may be claimed by an aerospace business for compensation paid to
147a qualified employee.
148     (b)  The credit authorized by this subsection shall equal
14910 percent of the compensation paid for the first through fifth
150years of employment in this state by an aerospace business.
151     (c)  The credit authorized by this subsection may not
152exceed $12,500 annually for each qualified employee.
153     (d)  This credit applies only with respect to wages subject
154to unemployment tax.
155     (e)  If the credit is not fully used in any one year, the
156unused amount may be carried forward for a period not to exceed
1575 years. The carryover credit may be used in a subsequent year
158if the tax imposed by this chapter for such year exceeds the
159credit for such year after applying the other credits and unused
160credit carryovers in the order provided in s. 220.02(8).
161     (3)  TUITION REIMBURSEMENT TAX CREDIT.-
162     (a)  A credit against the tax imposed under this chapter
163may be claimed by an aerospace business for 50 percent of
164tuition reimbursed to a qualified employee in a tax year.
165     (b)  The credit may be claimed only if the qualified
166employee was awarded an undergraduate or graduate degree, a
167technical certification, or a certification from a training
168program coordinated by Workforce Florida, Inc., within 1 year
169after commencing employment with the business requesting the
170credit, and may be claimed within 4 years after employment of
171the qualified employee.
172     (c)  If this credit is not fully used in any one year, the
173unused amount may be carried forward for a period not to exceed
1745 years. The carryover credit may be used in a subsequent year
175if the tax imposed under this chapter for such year exceeds the
176credit for such year after applying the other credits and unused
177credit carryovers in the order provided in s. 220.02(8).
178     (4)  MAXIMUM CREDITS FOR AN AEROSPACE BUSINESS.-The maximum
179amount of credits under this section which may be claimed by any
180single aerospace business in a calendar year is $200,000.
181     (5)  ANNUAL LIMIT ON TAX CREDITS.-The total amount of
182credits that may be granted under this section is $2 million in
183any calendar year. A credit that is claimed after the $2 million
184limit is reached shall be disallowed.
185     (6)  DUPLICATION OF TAX CREDITS.-A business may not claim
186an aerospace-sector jobs tax credit and a tuition reimbursement
187tax credit, or any other state tax credit or tax incentive
188refund, for the same qualified employee.
189     (7)  APPLICATION FOR TAX CREDITS.-
190     (a)  An aerospace business must apply to the department for
191authorization to claim an aerospace-sector jobs tax credit or a
192tuition reimbursement tax credit. The application must be filed
193under oath and include:
194     1.  The name and address of the business and documentation
195that the business is an aerospace business.
196     2.  For each employee for which a tax credit is sought:
197     a.  The employee's name and documentation that the employee
198is a qualified employee.
199     b.  The salary or hourly wages, including the hourly wages
200subject to unemployment tax paid to the qualified employee.
201     c.  The location of the community college, college,
202university, technical institution, or training program
203coordinated by Workforce Florida, Inc., from which the qualified
204employee received his or her degree or certification.
205     d.  A statement as to whether the applicant is seeking an
206aerospace-sector jobs tax credit or a tuition reimbursement tax
207credit.
208     (b)  The applicant for a tax credit has the burden of
209demonstrating to the satisfaction of the department that it
210meets the requirements of this section.
211     (8)  LIMITS ON THE CARRY OVER OF TAX CREDITS.-An aerospace
212business may not carry over more tax credits in an amended
213return than were claimed on the original return for the taxable
214year. This subsection does not limit increases in the amount of
215credit claimed on an amended return due to the use of any credit
216amount previously carried over pursuant to paragraph (2)(e) or
217paragraph (3)(c).
218     (9)  PENALTIES.-
219     (a)  Any person who fraudulently claims a credit under this
220section is liable for repayment of the credit, plus a mandatory
221penalty in the amount of 200 percent of the credit, plus
222interest at the rate provided in s. 220.807, and commits a
223felony of the third degree, punishable as provided in s.
224775.082, s. 775.083, or s. 775.084.
225     (b)  Any person who makes an underpayment of tax as a
226result of a grossly overstated claim for this credit commits a
227felony of the third degree, punishable as provided in s.
228775.082, s. 775.083, or s. 775.084. As used in this paragraph,
229the term "grossly overstated claim" means a claim in an amount
230in excess of 100 percent of the amount of credit allowable under
231this section.
232     (10)  RULEMAKING.-The department may adopt rules to
233prescribe any necessary forms required to claim a tax credit
234under this section and to provide guidelines and procedures
235required to administer this section.
236     (11)  EXPIRATION.-This section, except paragraphs (2)(e)
237and (3)(c) and subsection (8), expires December 31, 2021. An
238aerospace business may not claim a new tax credit under this
239section after that date. However, an aerospace business may
240claim tax credits carried over pursuant to paragraph (2)(e) or
241paragraph (3)(c).
242     Section 4.  This act shall take effect January 1, 2012, and
243applies to tax years beginning on or after that date.


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