Florida Senate - 2011 SB 790 By Senator Altman 24-00515-11 2011790__ 1 A bill to be entitled 2 An act relating to tax credits; amending s. 220.02, 3 F.S.; revising the priority of tax credits that may be 4 taken against the corporate income tax or the 5 franchise tax; amending s. 220.13, F.S.; redefining 6 the term “adjusted federal income” to include the 7 amount of certain tax credits; creating s. 220.1811, 8 F.S.; authorizing aerospace-sector jobs tax credits 9 and tuition reimbursement tax credits; defining terms; 10 authorizing a tax credit to aerospace businesses based 11 on the salary or tuition reimbursed to certain 12 employees; specifying the maximum annual amount of tax 13 credits for an aerospace business; limiting the annual 14 amount of tax credits available; prohibiting a 15 business from claiming an aerospace-sector jobs tax 16 credit and a tuition reimbursement tax credit for the 17 same employee; providing for the Department of Revenue 18 to approve applications for tax credits; prohibiting 19 increases in the amount of unused tax credits carried 20 over in amended tax returns; providing fines and 21 criminal penalties for certain unlawful claims of tax 22 credits; authorizing the Department of Revenue to 23 adopt rules; providing for the expiration of the tax 24 credit program; providing for applicability; providing 25 an effective date. 26 27 Be It Enacted by the Legislature of the State of Florida: 28 29 Section 1. Subsection (8) of section 220.02, Florida 30 Statutes, is amended to read: 31 220.02 Legislative intent.— 32 (8)
It is the intent of the Legislature thatCredits 33 against eitherthe corporate income tax or the franchise tax 34 shall be applied in the following order: those enumerated in s. 35 631.828, those enumerated in s. 220.191, those enumerated in s. 36 220.181, those enumerated in s. 220.183, those enumerated in s. 37 220.182, those enumerated in s. 220.1895, those enumerated in s. 38 221.02, those enumerated in s. 220.184, those enumerated in s. 39 220.186, those enumerated in s. 220.1845, those enumerated in s. 40 220.19, those enumerated in s. 220.185, those enumerated in s. 41 220.1875, those enumerated in s. 220.192, those enumerated in s. 42 220.193, those enumerated in s. 288.9916, those enumerated in s. 43 220.1899, andthose enumerated in s. 220.1896, and those 44 enumerated in s. 220.1811. 45 Section 2. Paragraph (a) of subsection (1) of section 46 220.13, Florida Statutes, is amended to read: 47 220.13 “Adjusted federal income” defined.— 48 (1) The term “adjusted federal income” means an amount 49 equal to the taxpayer’s taxable income as defined in subsection 50 (2), or such taxable income of more than one taxpayer as 51 provided in s. 220.131, for the taxable year, adjusted as 52 follows: 53 (a) Additions.—There shall be added to such taxable income: 54 1. The amount of any tax upon or measured by income, 55 excluding taxes based on gross receipts or revenues, paid or 56 accrued as a liability to the District of Columbia or any state 57 of the United States which is deductible from gross income in 58 the computation of taxable income for the taxable year. 59 2. The amount of interest which is excluded from taxable 60 income under s. 103(a) of the Internal Revenue Code or any other 61 federal law, less the associated expenses disallowed in the 62 computation of taxable income under s. 265 of the Internal 63 Revenue Code or any other law, excluding 60 percent of any 64 amounts included in alternative minimum taxable income, as 65 defined in s. 55(b)(2) of the Internal Revenue Code, if the 66 taxpayer pays tax under s. 220.11(3). 67 3. In the case of a regulated investment company or real 68 estate investment trust, an amount equal to the excess of the 69 net long-term capital gain for the taxable year over the amount 70 of the capital gain dividends attributable to the taxable year. 71 4. That portion of the wages or salaries paid or incurred 72 for the taxable year which is equal to the amount of the credit 73 allowable for the taxable year under s. 220.181. This 74 subparagraph shall expire on the date specified in s. 290.016 75 for the expiration of the Florida Enterprise Zone Act. 76 5. That portion of the ad valorem school taxes paid or 77 incurred for the taxable year which is equal to the amount of 78 the credit allowable for the taxable year under s. 220.182. This 79 subparagraph shall expire on the date specified in s. 290.016 80 for the expiration of the Florida Enterprise Zone Act. 81 6. The amount of emergency excise tax paid or accrued as a 82 liability to this state under chapter 221 which tax is 83 deductible from gross income in the computation of taxable 84 income for the taxable year. 85 7. That portion of assessments to fund a guaranty 86 association incurred for the taxable year which is equal to the 87 amount of the credit allowable for the taxable year. 88 8. In the case of a nonprofit corporation which holds a 89 pari-mutuel permit and which is exempt from federal income tax 90 as a farmers’ cooperative, an amount equal to the excess of the 91 gross income attributable to the pari-mutuel operations over the 92 attributable expenses for the taxable year. 93 9. The amount taken as a credit for the taxable year under 94 s. 220.1895. 95 10. Up to nine percent of the eligible basis of any 96 designated project which is equal to the credit allowable for 97 the taxable year under s. 220.185. 98 11. The amount taken as a credit for the taxable year under 99 s. 220.1875. The addition in this subparagraph is intended to 100 ensure that the same amount is not allowed for the tax purposes 101 of this state as both a deduction from income and a credit 102 against the tax. This addition is not intended to result in 103 adding the same expense back to income more than once. 104 12. The amount taken as a credit for the taxable year under 105 s. 220.192. 106 13. The amount taken as a credit for the taxable year under 107 s. 220.193. 108 14. Any portion of a qualified investment, as defined in s. 109 288.9913, which is claimed as a deduction by the taxpayer and 110 taken as a credit against income tax pursuant to s. 288.9916. 111 15. The costs to acquire a tax credit pursuant to s. 112 288.1254(5) that are deducted from or otherwise reduce federal 113 taxable income for the taxable year. 114 16. The amount taken as a credit for the taxable year under 115 s. 220.1811. 116 Section 3. Section 220.1811, Florida Statutes, is created 117 to read: 118 220.1811 Aerospace-sector jobs tax credit and tuition 119 reimbursement tax credit.— 120 (1) DEFINITIONS.—As used in this section, the term: 121 (a) “Aerospace business” means a business located in this 122 state which is engaged in aerospace, as defined in s. 331.303. 123 (b) “Qualified employee” means a resident of this state 124 who: 125 1. Is first employed or reemployed by an aerospace business 126 on or after January 1, 2012; 127 2. Received an undergraduate or graduate degree from a 128 college or university that is accredited by a national 129 accrediting body; a technical degree or certification related to 130 aerospace from a technical training institution; or completed an 131 aerospace development workforce training program coordinated by 132 Workforce Florida, Inc.; 133 3. Is not an owner, partner, or majority stockholder of an 134 aerospace business; and 135 4. Is employed for at least 6 months. 136 (c) “Tuition reimbursed to a qualified employee” means a 137 lump-sum payment by an aerospace business to a qualified 138 employee, which may not exceed the average annual tuition, as 139 reported by the Board of Governors of the State University 140 System, for a Florida resident who is a full-time undergraduate 141 student enrolled in a public college or university. The term 142 does 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 may 145 be claimed by an aerospace business for compensation paid to a 146 qualified employee. 147 (b) The credit authorized by this subsection shall equal 10 148 percent of the compensation paid for the first through fifth 149 years of employment in this state by an aerospace business. 150 (c) The credit authorized by this subsection may not exceed 151 $12,500 annually for each qualified employee. 152 (d) This credit applies only with respect to wages subject 153 to unemployment tax. 154 (e) If the credit is not fully used in any one year, the 155 unused amount may be carried forward for a period not to exceed 156 5 years. The carryover credit may be used in a subsequent year 157 if the tax imposed by this chapter for such year exceeds the 158 credit for such year after applying the other credits and unused 159 credit 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 may 162 be claimed by an aerospace business for 50 percent of tuition 163 reimbursed to a qualified employee in a tax year. 164 (b) The credit may be claimed only if the qualified 165 employee was awarded an undergraduate or graduate degree, a 166 technical certification, or a certification from a training 167 program coordinated by Workforce Florida, Inc., within 1 year 168 after commencing employment with the business requesting the 169 credit, and may be claimed within 4 years after employment of 170 the qualified employee. 171 (c) If this credit is not fully used in any one year, the 172 unused amount may be carried forward for a period not to exceed 173 5 years. The carryover credit may be used in a subsequent year 174 if the tax imposed under this chapter for such year exceeds the 175 credit for such year after applying the other credits and unused 176 credit carryovers in the order provided in s. 220.02(8). 177 (4) MAXIMUM CREDITS FOR AN AEROSPACE BUSINESS.—The maximum 178 amount of credits under this section which may be claimed by any 179 single aerospace business in a calendar year is $200,000. 180 (5) ANNUAL LIMIT ON TAX CREDITS.—The total amount of 181 credits that may be granted under this section is $2 million in 182 any calendar year. A credit that is claimed after the $2 million 183 limit is reached shall be disallowed. 184 (6) DUPLICATION OF TAX CREDITS.—A business may not claim an 185 aerospace-sector jobs tax credit and a tuition reimbursement tax 186 credit for the same qualified employee. 187 (7) APPLICATION FOR TAX CREDITS.— 188 (a) An aerospace business must apply to the department for 189 authorization to claim an aerospace-sector jobs tax credit or a 190 tuition reimbursement tax credit. The application must be filed 191 under oath and include: 192 1. The name and address of the business and documentation 193 that 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 196 is a qualified employee. 197 b. The salary or hourly wages, including the hourly wages 198 subject to unemployment tax paid to the qualified employee. 199 c. The location of the community college, college, 200 university, technical institution, or training program 201 coordinated by Workforce Florida, Inc., from which the qualified 202 employee received his or her degree or certification. 203 d. A statement as to whether the applicant is seeking an 204 aerospace-sector jobs tax credit or a tuition reimbursement tax 205 credit. 206 (b) The applicant for a tax credit has the burden of 207 demonstrating to the satisfaction of the department that it 208 meets the requirements of this section. 209 (8) LIMITS ON THE CARRY OVER OF TAX CREDITS.—An aerospace 210 business may not carry over more tax credits in an amended 211 return than were claimed on the original return for the taxable 212 year. This subsection does not limit increases in the amount of 213 credit claimed on an amended return due to the use of any credit 214 amount previously carried over pursuant to paragraph (2)(e) or 215 paragraph (3)(c). 216 (9) PENALTIES.— 217 (a) Any person who fraudulently claims a credit under this 218 section is liable for repayment of the credit, plus a mandatory 219 penalty in the amount of 200 percent of the credit, plus 220 interest at the rate provided in s. 220.807, and commits a 221 felony of the third degree, punishable as provided in s. 222 775.082, s. 775.083, or s. 775.084. 223 (b) Any person who makes an underpayment of tax as a result 224 of a grossly overstated claim for this credit commits a felony 225 of the third degree, punishable as provided in s. 775.082, s. 226 775.083, or s. 775.084. As used in this paragraph, the term 227 “grossly overstated claim” means a claim in an amount in excess 228 of 100 percent of the amount of credit allowable under this 229 section. 230 (10) RULEMAKING.—The department may adopt rules to 231 prescribe any necessary forms required to claim a tax credit 232 under this section and to provide guidelines and procedures 233 required to administer this section. 234 (11) EXPIRATION.—This section, except paragraphs (2)(e) and 235 (3)(c) and subsection (8), expires December 31, 2021. An 236 aerospace business may not claim a new tax credit under this 237 section after that date. However, an aerospace business may 238 claim tax credits carried over pursuant to paragraph (2)(e) or 239 paragraph (3)(c). 240 Section 4. This act shall take effect January 1, 2012, and 241 applies to tax years beginning on or after that date.