Senate Bill sb2062e1

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  1                      A bill to be entitled

  2         An act relating to scholarship funding tax

  3         credits; amending s. 220.187, F.S.; increasing

  4         the total amount of tax credit which may be

  5         granted each state fiscal year; allowing tax

  6         credits to be carried forward; providing for

  7         the scholarship amounts awarded to be annually

  8         adjusted based on the percentage change in the

  9         Consumer Price Index; creating s. 220.1875,

10         F.S.; establishing a program for contributions

11         to nonprofit scholarship-funding organizations

12         to be used for dependent children of military

13         personnel; providing for tax credits that may

14         be granted each fiscal year for such

15         contributions; providing requirements and

16         limitations; amending s. 220.02, F.S.;

17         providing for the order of tax credits;

18         amending s. 220.13, F.S.; providing an add-back

19         to adjusted federal income; providing an

20         effective date.

21  

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

23  

24         Section 1.  Paragraph (b) of subsection (3), paragraph

25  (c) of subsection (4), and paragraph (a) of subsection (6) of

26  section 220.187, Florida Statutes, are amended to read:

27         220.187  Credits for contributions to nonprofit

28  scholarship-funding organizations.--

29         (3)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX

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

31  


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 1         (b)  The total amount of tax credit which may be

 2  granted each state fiscal year under this section is $70 $50

 3  million.

 4         (4)  OBLIGATIONS OF ELIGIBLE NONPROFIT

 5  SCHOLARSHIP-FUNDING ORGANIZATIONS.--

 6         (c)  The amount of a scholarship provided to any child

 7  for any single school year by all eligible nonprofit

 8  scholarship-funding organizations from eligible contributions

 9  shall not exceed the following annual limits:

10         1.  Beginning in the 2003-2004 school year, $3,500

11  Three thousand five hundred dollars for a scholarship awarded

12  to a student enrolled in an eligible nonpublic school. The

13  amount of the scholarship shall be adjusted annually based on

14  the percentage change in the Consumer Price Index for the

15  prior year.

16         2.  Beginning in the 2003-2004 school year, $500 Five

17  hundred dollars for a scholarship awarded to a student

18  enrolled in a Florida public school that is located outside

19  the district in which the student resides. The amount of the

20  scholarship shall be adjusted annually based on the percentage

21  change in the Consumer Price Index for the prior year.

22         (6)  ADMINISTRATION; RULES.--

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

24  not fully used in any one year because of insufficient tax

25  liability on the part of the corporation, the unused amount

26  may not be carried forward for a period not to exceed 3 years.

27  A taxpayer may not convey, assign, or transfer the credit

28  authorized by this section to another entity unless all of the

29  assets of the taxpayer are conveyed, assigned, or transferred

30  in the same transaction. This carryforward applies to all

31  approved contributions made after January 1, 2002.


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 1         Section 2.  Section 220.1875, Florida Statutes, is

 2  created to read:

 3         220.1875  Credits for contributions to nonprofit

 4  scholarship-funding organizations; scholarships for dependent

 5  children of active duty personnel in the United States

 6  military and all reserve components, including National Guard

 7  personnel who have been deployed in support of active duty

 8  operations.--

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

10         (a)  Encourage private, voluntary contributions to

11  nonprofit scholarship-funding organizations.

12         (b)  Expand educational opportunities for dependent

13  children of active duty personnel in the United States

14  military and all reserve components, including National Guard

15  personnel who have been deployed in support of active duty

16  operations, and whose families have limited financial

17  resources.

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

19  level of excellence in their education.

20         (2)  DEFINITIONS.--As used in this section, the term:

21         (a)  "Department" means the Department of Revenue.

22         (b)  "Eligible contribution" means a monetary

23  contribution from a taxpayer, subject to the restrictions

24  provided in this section, to an eligible nonprofit

25  scholarship-funding organization. The taxpayer making the

26  contribution may not designate a specific child as the

27  beneficiary of the contribution. The taxpayer may not

28  contribute more than $1 million to any single eligible

29  nonprofit scholarship-funding organization.

30         (c)  "Eligible nonpublic school" means a nonpublic

31  school located in Florida that offers an education to students


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 1  in any grades K-12 and that meets the requirements in

 2  subsection (5).

 3         (d)  "Eligible nonprofit scholarship-funding

 4  organization" means a charitable organization that is exempt

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

 6  Internal Revenue Code and that complies with the provisions of

 7  subsection (4).

 8         (e)  "Qualified student" means a dependent child of any

 9  active duty personnel in the United States military and all

10  reserve components, including National Guard personnel who

11  have been deployed in support of active duty operations, who

12  qualifies for free or reduced-price school lunches under the

13  National School Lunch Act and who:

14         1.  Was counted as a full-time equivalent student

15  during the previous state fiscal year for purposes of state

16  per-student funding;

17         2.  Received a scholarship from an eligible nonprofit

18  scholarship-funding organization during the previous school

19  year; or

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

21         (3)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX

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

23         (a)  There is allowed a credit of 100 percent of an

24  eligible contribution against any tax due for a taxable year

25  under this chapter. However, such a credit may not exceed 75

26  percent of the tax due under this chapter for the taxable

27  year, after the application of any other allowable credits by

28  the taxpayer. However, at least 5 percent of the total

29  statewide amount authorized for the tax credit shall be

30  reserved for taxpayers who meet the definition of a small

31  business provided in s. 288.703(1) at the time of application.


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 1  The credit granted by this section shall be reduced by the

 2  difference between the amount of federal corporate income tax

 3  taking into account the credit granted by this section and the

 4  amount of federal corporate income tax without application of

 5  the credit granted by this section.

 6         (b)  The total amount of tax credit which may be

 7  granted each state fiscal year under this section is $5

 8  million.

 9         (c)  A taxpayer who files a Florida consolidated return

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

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

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

13  subject to the limitation established under paragraph (a).

14         (4)  OBLIGATIONS OF ELIGIBLE NONPROFIT

15  SCHOLARSHIP-FUNDING ORGANIZATIONS.--

16         (a)  An eligible nonprofit scholarship-funding

17  organization shall provide scholarships, from eligible

18  contributions, to qualified students for:

19         1.  Tuition or textbook expenses for, or transportation

20  to, an eligible nonpublic school. At least 75 percent of the

21  scholarship funding must be used to pay tuition expenses; or

22         2.  Transportation expenses to a Florida public school

23  that is located outside the district in which the student

24  resides.

25         (b)  An eligible nonprofit scholarship-funding

26  organization shall give priority to qualified students who

27  received a scholarship from an eligible nonprofit

28  scholarship-funding organization during the previous school

29  year.

30         (c)  The amount of a scholarship provided to any child

31  for any single school year by all eligible nonprofit


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 1  scholarship-funding organizations from eligible contributions

 2  shall not exceed the following annual limits:

 3         1.  Beginning in the 2003-2004 school year, $3,500 for

 4  a scholarship awarded to a student enrolled in an eligible

 5  nonpublic school. The amount of the scholarship shall be

 6  adjusted annually based on the percentage change in the

 7  Consumer Price Index for the prior year.

 8         2.  Beginning in the 2003-2004 school year, $500 for a

 9  scholarship awarded to a student enrolled in a Florida public

10  school that is located outside the district in which the

11  student resides. The amount of the scholarship shall adjusted

12  annually based on the percentage change in the Consumer Price

13  Index for the prior year.

14         (d)  The amount of an eligible contribution which may

15  be accepted by an eligible nonprofit scholarship-funding

16  organization is limited to the amount needed to provide

17  scholarships for qualified students which the organization has

18  identified and for which vacancies in eligible nonpublic

19  schools have been identified.

20         (e)  An eligible nonprofit scholarship-funding

21  organization that receives an eligible contribution must spend

22  100 percent of the eligible contribution to provide

23  scholarships in the same state fiscal year in which the

24  contribution was received. An eligible nonprofit

25  scholarshp-funding organization may use eligible contributions

26  to provide scholarships to qualified students, pursuant to s.

27  220.187, after it has served qualified dependent children of

28  active duty personnel in the United States military and all

29  reserve components, including National Guard personnel who

30  have been deployed in support of active duty operations. No

31  portion of eligible contributions may be used for


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 1  administrative expenses. All interest accrued from

 2  contributions must be used for scholarships.

 3         (f)  An eligible nonprofit scholarship-funding

 4  organization that receives eligible contributions must provide

 5  to the Auditor General an annual financial and compliance

 6  audit of its accounts and records conducted by an independent

 7  certified public accountant and in accordance with rules

 8  adopted by the Auditor General.

 9         (g)  Payment of the scholarship by the eligible

10  nonprofit scholarship-funding organization shall be by

11  individual warrant or check made payable to the student's

12  parent. If the parent chooses for his or her child to attend

13  an eligible nonpublic school, the warrant or check must be

14  mailed by the eligible nonprofit scholarship-funding

15  organization to the nonpublic school of the parent's choice,

16  and the parent shall restrictively endorse the warrant or

17  check to the nonpublic school. An eligible nonprofit

18  scholarship-funding organization shall ensure that, upon

19  receipt of a scholarship warrant or check, the parent to whom

20  the warrant or check is made restrictively endorses the

21  warrant or check to the nonpublic school of the parent's

22  choice for deposit into the account of the nonpublic school.

23         (5)  ELIGIBLE NONPUBLIC SCHOOL OBLIGATIONS.--An

24  eligible nonpublic school must:

25         (a)  Demonstrate fiscal soundness by being in operation

26  for one school year or provide the Department of Education

27  with a statement by a certified public accountant confirming

28  that the nonpublic school desiring to participate is insured

29  and the owner or owners have sufficient capital or credit to

30  operate the school for the upcoming year serving the number of

31  students anticipated with expected revenues from tuition and


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 1  other sources that may be reasonably expected. In lieu of such

 2  a statement, a surety bond or letter of credit for the amount

 3  equal to the scholarship funds for any quarter may be filed

 4  with the department.

 5         (b)  Comply with the antidiscrimination provisions of

 6  42 U.S.C. s. 2000d.

 7         (c)  Meet state and local health and safety laws and

 8  codes.

 9         (d)  Comply with all state laws relating to general

10  regulation of nonpublic schools.

11         (6)  ADMINISTRATION; RULES.--

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

13  not fully used in any one year because of insufficient tax

14  liability on the part of the corporation, the unused amount

15  may be carried forward for a period not to exceed 3 years. A

16  taxpayer may not convey, assign, or transfer the credit

17  authorized by this section to another entity unless all of the

18  assets of the taxpayer are conveyed, assigned, or transferred

19  in the same transaction.

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

21  section shall be submitted to the department on forms

22  established by rule of the department.

23         (c)  The department and the Department of Education

24  shall develop a cooperative agreement to assist in the

25  administration of this section. The Department of Education

26  shall be responsible for annually submitting, by March 15, to

27  the department a list of eligible nonprofit

28  scholarship-funding organizations that meet the requirements

29  of paragraph (2)(d) and for monitoring eligibility of

30  nonprofit scholarship-funding organizations that meet the

31  requirements of paragraph (2)(d), eligibility of nonpublic


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 1  schools that meet the requirements of paragraph (2)(c), and

 2  eligibility of expenditures under this section as provided in

 3  subsection (4).

 4         (d)  The department shall adopt rules necessary to

 5  administer this section, including rules establishing

 6  application forms and procedures and governing the allocation

 7  of tax credits under this section on a first-come,

 8  first-served basis.

 9         (e)  The Department of Education shall adopt rules

10  necessary to determine eligibility of nonprofit

11  scholarship-funding organizations as defined in paragraph

12  (2)(d) and according to the provisions of subsection (4) and

13  identify qualified students as defined in paragraph (2)(e).

14         (7)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--All eligible

15  contributions received by an eligible nonprofit

16  scholarship-funding organization shall be deposited in a

17  manner consistent with s. 18.10(2).

18         (8)  This section shall apply to tax years beginning on

19  or after January 1, 2003.

20         Section 3.  Subsection (8) of section 220.02, Florida

21  Statutes, is amended to read:

22         220.02  Legislative intent.--

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

24  against either the corporate income tax or the franchise tax

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

26  631.828, those enumerated in s. 220.191, those enumerated in

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

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

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

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

31  those enumerated in s. 220.19, those enumerated in s. 220.185,


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 1  and those enumerated in s. 220.187 and those enumerated in s.

 2  220.1875.

 3         Section 4.  Subparagraph (12) is added to paragraph

 4  (1)(a) of section 220.13, Florida Statutes, to read:

 5         220.13  "Adjusted federal income" defined.--

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

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

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

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

10  adjusted as follows:

11         (a)  Additions.--There shall be added to such taxable

12  income:

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

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

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

16  state of the United States which is deductible from gross

17  income in the computation of taxable income for the taxable

18  year.

19         2.  The amount of interest which is excluded from

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

21  any other federal law, less the associated expenses disallowed

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

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

24  of any amounts included in alternative minimum taxable income,

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

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

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

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

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

30  amount of the capital gain dividends attributable to the

31  taxable year.


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

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

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

 4  The provisions of this subparagraph shall expire and be void

 5  on June 30, 2005.

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

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

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

 9  The provisions of this subparagraph shall expire and be void

10  on June 30, 2005.

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

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

13  deductible from gross income in the computation of taxable

14  income for the taxable year.

15         7.  That portion of assessments to fund a guaranty

16  association incurred for the taxable year which is equal to

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

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

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

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

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

22  over the attributable expenses for the taxable year.

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

24  under s. 220.1895.

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

26  designated project which is equal to the credit allowable for

27  the taxable year under s. 220.185.

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

29  under s. 220.187.

30         12.  The amount taken as a credit for the taxable year

31  under s. 220.1875.


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 1         (b)  Subtractions.--

 2         1.  There shall be subtracted from such taxable income:

 3         a.  The net operating loss deduction allowable for

 4  federal income tax purposes under s. 172 of the Internal

 5  Revenue Code for the taxable year,

 6         b.  The net capital loss allowable for federal income

 7  tax purposes under s. 1212 of the Internal Revenue Code for

 8  the taxable year,

 9         c.  The excess charitable contribution deduction

10  allowable for federal income tax purposes under s. 170(d)(2)

11  of the Internal Revenue Code for the taxable year, and

12         d.  The excess contributions deductions allowable for

13  federal income tax purposes under s. 404 of the Internal

14  Revenue Code for the taxable year.

15  

16  However, a net operating loss and a capital loss shall never

17  be carried back as a deduction to a prior taxable year, but

18  all deductions attributable to such losses shall be deemed net

19  operating loss carryovers and capital loss carryovers,

20  respectively, and treated in the same manner, to the same

21  extent, and for the same time periods as are prescribed for

22  such carryovers in ss. 172 and 1212, respectively, of the

23  Internal Revenue Code.

24         2.  There shall be subtracted from such taxable income

25  any amount to the extent included therein the following:

26         a.  Dividends treated as received from sources without

27  the United States, as determined under s. 862 of the Internal

28  Revenue Code.

29         b.  All amounts included in taxable income under s. 78

30  or s. 951 of the Internal Revenue Code.

31  


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 1  However, as to any amount subtracted under this subparagraph,

 2  there shall be added to such taxable income all expenses

 3  deducted on the taxpayer's return for the taxable year which

 4  are attributable, directly or indirectly, to such subtracted

 5  amount. Further, no amount shall be subtracted with respect to

 6  dividends paid or deemed paid by a Domestic International

 7  Sales Corporation.

 8         3.  In computing "adjusted federal income" for taxable

 9  years beginning after December 31, 1976, there shall be

10  allowed as a deduction the amount of wages and salaries paid

11  or incurred within this state for the taxable year for which

12  no deduction is allowed pursuant to s. 280C(a) of the Internal

13  Revenue Code (relating to credit for employment of certain new

14  employees).

15         4.  There shall be subtracted from such taxable income

16  any amount of nonbusiness income included therein.

17         5.  There shall be subtracted any amount of taxes of

18  foreign countries allowable as credits for taxable years

19  beginning on or after September 1, 1985, under s. 901 of the

20  Internal Revenue Code to any corporation which derived less

21  than 20 percent of its gross income or loss for its taxable

22  year ended in 1984 from sources within the United States, as

23  described in s. 861(a)(2)(A) of the Internal Revenue Code, not

24  including credits allowed under ss. 902 and 960 of the

25  Internal Revenue Code, withholding taxes on dividends within

26  the meaning of sub-subparagraph 2.a., and withholding taxes on

27  royalties, interest, technical service fees, and capital

28  gains.

29         6.  Notwithstanding any other provision of this code,

30  except with respect to amounts subtracted pursuant to

31  subparagraphs 1. and 3., any increment of any apportionment


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 1  factor which is directly related to an increment of gross

 2  receipts or income which is deducted, subtracted, or otherwise

 3  excluded in determining adjusted federal income shall be

 4  excluded from both the numerator and denominator of such

 5  apportionment factor. Further, all valuations made for

 6  apportionment factor purposes shall be made on a basis

 7  consistent with the taxpayer's method of accounting for

 8  federal income tax purposes.

 9         (c)  Installment sales occurring after October 19,

10  1980.--

11         1.  In the case of any disposition made after October

12  19, 1980, the income from an installment sale shall be taken

13  into account for the purposes of this code in the same manner

14  that such income is taken into account for federal income tax

15  purposes.

16         2.  Any taxpayer who regularly sells or otherwise

17  disposes of personal property on the installment plan and

18  reports the income therefrom on the installment method for

19  federal income tax purposes under s. 453(a) of the Internal

20  Revenue Code shall report such income in the same manner under

21  this code.

22         (d)  Nonallowable deductions.--A deduction for net

23  operating losses, net capital losses, or excess contributions

24  deductions under ss. 170(d)(2), 172, 1212, and 404 of the

25  Internal Revenue Code which has been allowed in a prior

26  taxable year for Florida tax purposes shall not be allowed for

27  Florida tax purposes, notwithstanding the fact that such

28  deduction has not been fully utilized for federal tax

29  purposes.

30         (2)  For purposes of this section, a taxpayer's taxable

31  income for the taxable year means taxable income as defined in


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 1  s. 63 of the Internal Revenue Code and properly reportable for

 2  federal income tax purposes for the taxable year, but subject

 3  to the limitations set forth in paragraph (1)(b) with respect

 4  to the deductions provided by ss. 172 (relating to net

 5  operating losses), 170(d)(2) (relating to excess charitable

 6  contributions), 404(a)(1)(D) (relating to excess pension trust

 7  contributions), 404(a)(3)(A) and (B) (to the extent relating

 8  to excess stock bonus and profit-sharing trust contributions),

 9  and 1212 (relating to capital losses) of the Internal Revenue

10  Code, except that, subject to the same limitations, the term:

11         (a)  "Taxable income," in the case of a life insurance

12  company subject to the tax imposed by s. 801 of the Internal

13  Revenue Code, means life insurance company taxable income;

14  however, for purposes of this code, the total of any amounts

15  subject to tax under s. 815(a)(2) of the Internal Revenue Code

16  pursuant to s. 801(c) of the Internal Revenue Code shall not

17  exceed, cumulatively, the total of any amounts determined

18  under s. 815(c)(2) of the Internal Revenue Code of 1954, as

19  amended, from January 1, 1972, to December 31, 1983;

20         (b)  "Taxable income," in the case of an insurance

21  company subject to the tax imposed by s. 831(b) of the

22  Internal Revenue Code, means taxable investment income;

23         (c)  "Taxable income," in the case of an insurance

24  company subject to the tax imposed by s. 831(a) of the

25  Internal Revenue Code, means insurance company taxable income;

26         (d)  "Taxable income," in the case of a regulated

27  investment company subject to the tax imposed by s. 852 of the

28  Internal Revenue Code, means investment company taxable

29  income;

30         (e)  "Taxable income," in the case of a real estate

31  investment trust subject to the tax imposed by s. 857 of the


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 1  Internal Revenue Code, means the income subject to tax,

 2  computed as provided in s. 857 of the Internal Revenue Code;

 3         (f)  "Taxable income," in the case of a corporation

 4  which is a member of an affiliated group of corporations

 5  filing a consolidated income tax return for the taxable year

 6  for federal income tax purposes, means taxable income of such

 7  corporation for federal income tax purposes as if such

 8  corporation had filed a separate federal income tax return for

 9  the taxable year and each preceding taxable year for which it

10  was a member of an affiliated group, unless a consolidated

11  return for the taxpayer and others is required or elected

12  under s. 220.131;

13         (g)  "Taxable income," in the case of a cooperative

14  corporation or association, means the taxable income of such

15  organization determined in accordance with the provisions of

16  ss. 1381-1388 of the Internal Revenue Code;

17         (h)  "Taxable income," in the case of an organization

18  which is exempt from the federal income tax by reason of s.

19  501(a) of the Internal Revenue Code, means its unrelated

20  business taxable income as determined under s. 512 of the

21  Internal Revenue Code;

22         (i)  "Taxable income," in the case of a corporation for

23  which there is in effect for the taxable year an election

24  under s. 1362(a) of the Internal Revenue Code, means the

25  amounts subject to tax under s. 1374 or s. 1375 of the

26  Internal Revenue Code for each taxable year;

27         (j)  "Taxable income," in the case of a limited

28  liability company, other than a limited liability company

29  classified as a partnership for federal income tax purposes,

30  as defined in and organized pursuant to chapter 608 or

31  qualified to do business in this state as a foreign limited


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 1  liability company or other than a similar limited liability

 2  company classified as a partnership for federal income tax

 3  purposes and created as an artificial entity pursuant to the

 4  statutes of the United States or any other state, territory,

 5  possession, or jurisdiction, if such limited liability company

 6  or similar entity is taxable as a corporation for federal

 7  income tax purposes, means taxable income determined as if

 8  such limited liability company were required to file or had

 9  filed a federal corporate income tax return under the Internal

10  Revenue Code;

11         (k)  "Taxable income," in the case of a taxpayer liable

12  for the alternative minimum tax as defined in s. 55 of the

13  Internal Revenue Code, means the alternative minimum taxable

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

15  less the exemption amount computed under s. 55(d) of the

16  Internal Revenue Code.  A taxpayer is not liable for the

17  alternative minimum tax unless the taxpayer's federal tax

18  return, or related federal consolidated tax return, if

19  included in a consolidated return for federal tax purposes,

20  reflect a liability on the return filed for the alternative

21  minimum tax as defined in s. 55(b)(2) of the Internal Revenue

22  Code;

23         (l)  "Taxable income," in the case of a taxpayer whose

24  taxable income is not otherwise defined in this subsection,

25  means the sum of amounts to which a tax rate specified in s.

26  11 of the Internal Revenue Code plus the amount to which a tax

27  rate specified in s. 1201(a)(2) of the Internal Revenue Code

28  are applied for federal income tax purposes.

29         Section 5.  This act shall take effect July 1, 2003.

30  

31  


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