Florida Senate - 2011                                    SB 1998
       
       
       
       By the Committee on Budget Subcommittee on Finance and Tax
       
       
       
       
       593-02333-11                                          20111998__
    1                        A bill to be entitled                      
    2         An act relating to the corporate income tax; amending
    3         s. 220.03, F.S.; providing for the adoption of the
    4         2011 version of the Internal Revenue Code; amending s.
    5         220.13, F.S.; specifying the treatment by this state
    6         of certain depreciation and expensing of assets that
    7         are allowed for federal income tax purposes; providing
    8         for retroactive application; providing an effective
    9         date.
   10  
   11  Be It Enacted by the Legislature of the State of Florida:
   12  
   13         Section 1. Paragraph (n) of subsection (1) and subsection
   14  (2) of section 220.03, Florida Statutes, are amended to read:
   15         220.03 Definitions.—
   16         (1) SPECIFIC TERMS.—When used in this code, and when not
   17  otherwise distinctly expressed or manifestly incompatible with
   18  the intent thereof, the following terms shall have the following
   19  meanings:
   20         (n) “Internal Revenue Code” means the United States
   21  Internal Revenue Code of 1986, as amended and in effect on
   22  January 1, 2011 2010, except as provided in subsection (3).
   23         (2) DEFINITIONAL RULES.—When used in this code and neither
   24  otherwise distinctly expressed nor manifestly incompatible with
   25  the intent thereof:
   26         (a) The word “corporation” or “taxpayer” shall be deemed to
   27  include the words “and its successors and assigns” as if these
   28  words, or words of similar import, were expressed;
   29         (b) Any term used in any section of this code with respect
   30  to the application of, or in connection with, the provisions of
   31  any other section of this code shall have the same meaning as in
   32  such other section; and
   33         (c) Any term used in this code shall have the same meaning
   34  as when used in a comparable context in the Internal Revenue
   35  Code and other statutes of the United States relating to federal
   36  income taxes, as such code and statutes are in effect on January
   37  1, 2011 2010. However, if subsection (3) is implemented, the
   38  meaning of any term shall be taken at the time the term is
   39  applied under this code.
   40         Section 2. Paragraph (e) of subsection (1) of section
   41  220.13, Florida Statutes, is amended to read:
   42         220.13 “Adjusted federal income” defined.—
   43         (1) The term “adjusted federal income” means an amount
   44  equal to the taxpayer’s taxable income as defined in subsection
   45  (2), or such taxable income of more than one taxpayer as
   46  provided in s. 220.131, for the taxable year, adjusted as
   47  follows:
   48         (e) Adjustments related to the Federal Economic Stimulus
   49  Act of 2008, and the American Recovery and Reinvestment Act of
   50  2009, the Small Business Jobs Act of 2010, and the Tax Relief,
   51  Unemployment Insurance Reauthorization, and Job Creation Act of
   52  2010.—Taxpayers shall be required to make the adjustments
   53  prescribed in this paragraph for Florida tax purposes in
   54  relation to certain tax benefits received pursuant to the
   55  Economic Stimulus Act of 2008, and the American Recovery and
   56  Reinvestment Act of 2009, the Small Business Jobs Act of 2010,
   57  and the Tax Relief, Unemployment Insurance Reauthorization, and
   58  Job Creation Act of 2010.
   59         1. There shall be added to such taxable income an amount
   60  equal to 100 percent of any amount deducted for federal income
   61  tax purposes as bonus depreciation for the taxable year pursuant
   62  to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
   63  amended by s. 103 of Pub. L. No. 110-185, and s. 1201 of Pub. L.
   64  No. 111-5, s. 2022 of Pub. L. No. 111-240, and s. 401 of Pub. L.
   65  No. 111-312, for property placed in service after December 31,
   66  2007, and before January 1, 2013 2010. For the taxable year and
   67  for each of the 6 subsequent taxable years, there shall be
   68  subtracted from such taxable income an amount equal to one
   69  seventh of the amount by which taxable income was increased
   70  pursuant to this subparagraph, notwithstanding any sale or other
   71  disposition of the property that is the subject of the
   72  adjustments and regardless of whether such property remains in
   73  service in the hands of the taxpayer.
   74         2. There shall be added to such taxable income an amount
   75  equal to 100 percent of any amount in excess of $128,000
   76  deducted for federal income tax purposes for the taxable year
   77  pursuant to s. 179 of the Internal Revenue Code of 1986, as
   78  amended by s. 102 of Pub. L. No. 110-185, and s. 1202 of Pub. L.
   79  No. 111-5, s. 2021 of Pub. L. No. 111-240, and s. 402 of Pub. L.
   80  No. 111-312, for taxable years beginning after December 31,
   81  2007, and before January 1, 2013 2010. For the taxable year and
   82  for each of the 6 subsequent taxable years, there shall be
   83  subtracted from such taxable income one-seventh of the amount by
   84  which taxable income was increased pursuant to this
   85  subparagraph, notwithstanding any sale or other disposition of
   86  the property that is the subject of the adjustments and
   87  regardless of whether such property remains in service in the
   88  hands of the taxpayer.
   89         3. There shall be added to such taxable income an amount
   90  equal to the amount of deferred income not included in such
   91  taxable income pursuant to s. 108(i)(1) of the Internal Revenue
   92  Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
   93  shall be subtracted from such taxable income an amount equal to
   94  the amount of deferred income included in such taxable income
   95  pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
   96  as amended by s. 1231 of Pub. L. No. 111-5.
   97         4. Subtractions available under this paragraph may be
   98  transferred to the surviving or acquiring entity following a
   99  merger or acquisition and used in the same manner and with the
  100  same limitations as specified by this paragraph.
  101         5. The additions and subtractions specified in this
  102  paragraph are intended to adjust taxable income for Florida tax
  103  purposes, and, notwithstanding any other provision of this code,
  104  such additions and subtractions shall be permitted to change a
  105  taxpayer’s net operating loss for Florida tax purposes.
  106         Section 3. This act shall take effect upon becoming a law,
  107  and shall operate retroactively to January 1, 2011.