Senate Bill sb1048

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    Florida Senate - 2001                                  SB 1048

    By Senator Pruitt





    27-593B-01

  1                      A bill to be entitled

  2         An act relating to corporate income tax;

  3         creating s. 220.187, F.S.; providing purpose;

  4         providing definitions; providing a credit

  5         against said tax for contributions to a

  6         nonprofit scholarship funding organization;

  7         providing limitations; providing for use of

  8         such contributions by such organizations for

  9         scholarships for certain children and providing

10         requirements and limitations with respect

11         thereto; providing for allocation; providing

12         duties of the Department of Revenue and

13         Department of Education; providing for rules;

14         amending s. 220.02, F.S.; providing order of

15         credits against the tax; amending s. 220.13,

16         F.S.; providing for the inclusion of amounts

17         taken as credit under s. 220.187, F.S., in

18         determining a taxpayer's adjusted federal

19         income; amending s. 213.053, F.S.; authorizing

20         information-sharing with the Department of

21         Education; providing an effective date.

22

23  Be It Enacted by the Legislature of the State of Florida:

24

25         Section 1.  Section 220.187, Florida Statutes, is

26  created to read:

27         220.187  Credits for contributions to nonprofit

28  scholarship funding organizations.--

29         (1)  PURPOSE.--The purpose of this section is to:

30         (a)  Provide a tax credit for certain contributions to

31  a nonprofit scholarship funding organization.

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  1         (b)  Expand educational opportunities for children of

  2  families that have limited financial resources.

  3         (c)  Enable children in this state to achieve a greater

  4  level of excellence in their education.

  5         (2)  DEFINITIONS.--As used in this section:

  6         (a)  "Eligible contribution" means a monetary

  7  contribution from a taxpayer, subject to the restrictions

  8  provided in this section, to an eligible nonprofit scholarship

  9  funding organization. The taxpayer making the contribution may

10  not designate a specific child or group of children as the

11  beneficiaries of the contribution.

12         (b)  "Eligible nonpublic school" means a nonpublic

13  primary or secondary school located in Florida that offers a

14  general education to primary or secondary students and does

15  not discriminate on the basis of race, color, religion, or

16  national origin.

17         (c)  "Eligible nonprofit scholarship funding

18  organization" means a charitable organization that is exempt

19  from federal income tax pursuant to s. 501(c)(3) of the

20  Internal Revenue Code and that complies with the provisions of

21  subsection (4).

22         (d)  "Qualified student" means a student who qualifies

23  for free or reduced-price school lunches under the National

24  School Lunch Act and who:

25         1.  Was enrolled in a public school in this state

26  during the previous school year;

27         2.  Received a scholarship from an eligible nonprofit

28  scholarship funding organization during the previous school

29  year; or

30         3.  Is eligible to enter kindergarten or first grade.

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    Florida Senate - 2001                                  SB 1048
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  1         (3)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX

  2  CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--

  3         (a)  There shall be allowed a credit of 100 percent of

  4  an eligible contribution against any tax due for a taxable

  5  year under this chapter.

  6         (b)  A taxpayer may not receive more than $200,000 in

  7  annual tax credits for all approved eligible contributions

  8  made in any one year.

  9         (c)  The total amount of tax credit which may be

10  granted under this section is $50 million annually.

11         (d)  A taxpayer who files a Florida consolidated return

12  as a member of an affiliated group pursuant to s. 220.131(1)

13  may be allowed the credit on a consolidated return basis;

14  however, the total credit taken by the affiliated group is

15  subject to the $200,000 limitation established under paragraph

16  (b).

17         (4)  ELIGIBLE NONPROFIT SCHOLARSHIP FUNDING

18  ORGANIZATION OBLIGATIONS.--

19         (a)  An eligible nonprofit scholarship funding

20  organization shall provide scholarships from eligible

21  contributions to qualified students for:

22         1.  Tuition or textbook expenses for, or transportation

23  to, an eligible nonpublic school; or

24         2.  Transportation expenses to a Florida public school

25  that is located outside of the district in which the student

26  resides.

27         (b)  The amount of a scholarship provided by the

28  eligible nonprofit scholarship funding organization from

29  eligible contributions shall not exceed the following annual

30  limits:

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  1         1.  Three thousand five hundred dollars for a

  2  scholarship awarded to a student enrolled in an eligible

  3  nonpublic school.

  4         2.  Five hundred dollars for a scholarship awarded to a

  5  student enrolled in a Florida public school that is located

  6  outside of the district in which the student resides.

  7         (c)  An eligible nonprofit scholarship funding

  8  organization shall allocate over a 5-year period 100 percent

  9  of the annual eligible contributions received for scholarships

10  awarded pursuant to this subsection. At least 20 percent of

11  the eligible contributions received by the organization must

12  be disbursed each year. No portion of eligible contributions

13  may be used for administrative expenses.

14         (5)  ADMINISTRATION; RULES.--

15         (a)  If the credit granted pursuant to this section is

16  not fully used in any one year, the unused amount may not be

17  carried forward. A taxpayer may not convey, assign, or

18  transfer the credit authorized by this section to another

19  entity unless all of the assets of the taxpayer are conveyed,

20  assigned, or transferred in the same transaction.

21         (b)  An application for a tax credit pursuant to this

22  section shall be submitted to the Department of Revenue on

23  forms established by rule of the Department of Revenue.

24         (c)  The Department of Revenue and the Department of

25  Education shall develop a cooperative agreement to assist in

26  the administration of this section. The Department of

27  Education shall be responsible for annually submitting to the

28  Department of Revenue a list of eligible nonprofit scholarship

29  funding organizations that meet the requirements of paragraph

30  (2)(c) and for monitoring eligibility of nonprofit scholarship

31  funding organizations that meet the requirements of paragraph

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  1  (2)(c), eligibility of nonpublic schools that meet the

  2  requirements of paragraph (2)(b), and eligibility of

  3  expenditures under this section as provided in subsection (4).

  4         (d)  The Department of Revenue shall adopt rules

  5  necessary to administer this section, including rules

  6  establishing application forms and procedures.

  7         (e)  The Department of Education shall adopt rules

  8  necessary to determine eligibility of nonprofit scholarship

  9  funding organizations.

10         Section 2.  Subsection (8) of section 220.02, Florida

11  Statutes, is amended to read:

12         220.02  Legislative intent.--

13         (8)  It is the intent of the Legislature that credits

14  against either the corporate income tax or the franchise tax

15  be applied in the following order: those enumerated in s.

16  631.828, those enumerated in s. 220.191, those enumerated in

17  s. 220.181, those enumerated in s. 220.183, those enumerated

18  in s. 220.182, those enumerated in s. 220.1895, those

19  enumerated in s. 221.02, those enumerated in s. 220.184, those

20  enumerated in s. 220.186, those enumerated in s. 220.1845,

21  those enumerated in s. 220.19, and those enumerated in s.

22  220.185, and those enumerated in s. 220.187.

23         Section 3.  Paragraph (a) of subsection (1) of section

24  220.13, Florida Statutes, is amended to read:

25         220.13  "Adjusted federal income" defined.--

26         (1)  The term "adjusted federal income" means an amount

27  equal to the taxpayer's taxable income as defined in

28  subsection (2), or such taxable income of more than one

29  taxpayer as provided in s. 220.131, for the taxable year,

30  adjusted as follows:

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    Florida Senate - 2001                                  SB 1048
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  1         (a)  Additions.--There shall be added to such taxable

  2  income:

  3         1.  The amount of any tax upon or measured by income,

  4  excluding taxes based on gross receipts or revenues, paid or

  5  accrued as a liability to the District of Columbia or any

  6  state of the United States which is deductible from gross

  7  income in the computation of taxable income for the taxable

  8  year.

  9         2.  The amount of interest which is excluded from

10  taxable income under s. 103(a) of the Internal Revenue Code or

11  any other federal law, less the associated expenses disallowed

12  in the computation of taxable income under s. 265 of the

13  Internal Revenue Code or any other law, excluding 60 percent

14  of any amounts included in alternative minimum taxable income,

15  as defined in s. 55(b)(2) of the Internal Revenue Code, if the

16  taxpayer pays tax under s. 220.11(3).

17         3.  In the case of a regulated investment company or

18  real estate investment trust, an amount equal to the excess of

19  the net long-term capital gain for the taxable year over the

20  amount of the capital gain dividends attributable to the

21  taxable year.

22         4.  That portion of the wages or salaries paid or

23  incurred for the taxable year which is equal to the amount of

24  the credit allowable for the taxable year under s. 220.181.

25  The provisions of this subparagraph shall expire and be void

26  on June 30, 2005.

27         5.  That portion of the ad valorem school taxes paid or

28  incurred for the taxable year which is equal to the amount of

29  the credit allowable for the taxable year under s. 220.182.

30  The provisions of this subparagraph shall expire and be void

31  on June 30, 2005.

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  1         6.  The amount of emergency excise tax paid or accrued

  2  as a liability to this state under chapter 221 which tax is

  3  deductible from gross income in the computation of taxable

  4  income for the taxable year.

  5         7.  That portion of assessments to fund a guaranty

  6  association incurred for the taxable year which is equal to

  7  the amount of the credit allowable for the taxable year.

  8         8.  In the case of a nonprofit corporation which holds

  9  a pari-mutuel permit and which is exempt from federal income

10  tax as a farmers' cooperative, an amount equal to the excess

11  of the gross income attributable to the pari-mutuel operations

12  over the attributable expenses for the taxable year.

13         9.  The amount taken as a credit for the taxable year

14  under s. 220.1895.

15         10.  Up to nine percent of the eligible basis of any

16  designated project which is equal to the credit allowable for

17  the taxable year under s. 220.185.

18         11.  The amount taken as a credit for the taxable year

19  under s. 220.187.

20         Section 4.  Paragraph (u) is added to subsection (7) of

21  section 213.053, Florida Statutes, to read:

22         213.053  Confidentiality and information sharing.--

23         (7)  Notwithstanding any other provision of this

24  section, the department may provide:

25         (u)  Information relative to s. 220.187 to the

26  Department of Education in the conduct of its official

27  business.

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29  Disclosure of information under this subsection shall be

30  pursuant to a written agreement between the executive director

31  and the agency.  Such agencies, governmental or

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    Florida Senate - 2001                                  SB 1048
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  1  nongovernmental, shall be bound by the same requirements of

  2  confidentiality as the Department of Revenue.  Breach of

  3  confidentiality is a misdemeanor of the first degree,

  4  punishable as provided by s. 775.082 or s. 775.083.

  5         Section 5.  This act shall take effect January 1, 2002.

  6

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  8                          SENATE SUMMARY

  9
      Provides a credit against the corporate income tax in an
10    amount equal to a taxpayer's contributions to an eligible
      nonprofit scholarship funding organization.  Provides
11    limitations.  Requires the nonprofit scholarship funding
      organization to use such contributions for scholarships
12    for children who qualify for the federal free or reduced
      lunch program and provides requirements and limitations
13    for such scholarships. Provides for allocation. Provides
      for administration by the Department of Revenue and
14    Department of Education. Authorizes the sharing of
      certain information with the Department of Education.
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