| 1 | The Committee on Commerce recommends the following: |
| 2 |
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| 3 | Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to corporate income tax credits; amending |
| 7 | s. 220.02, F.S.; revising legislative intent; revising the |
| 8 | order of taking certain credits against the corporate |
| 9 | income tax or the franchise tax to include the corporate |
| 10 | income tax credit for certain small businesses providing |
| 11 | employee health care insurance; amending s. 220.13, F.S.; |
| 12 | revising additions to adjusted federal income to include |
| 13 | the corporate income tax credit for certain small |
| 14 | businesses providing employee health care insurance; |
| 15 | creating s. 220.192, F.S.; providing a credit against the |
| 16 | corporate income tax for certain small businesses for |
| 17 | providing employee health care insurance; providing |
| 18 | requirements, limitations, and eligibility criteria for |
| 19 | the credit; authorizing the Department of Revenue to adopt |
| 20 | rules; providing an effective date. |
| 21 |
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| 22 | Be It Enacted by the Legislature of the State of Florida: |
| 23 |
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| 24 | Section 1. Subsection (8) of section 220.02, Florida |
| 25 | Statutes, is amended to read: |
| 26 | 220.02 Legislative intent.-- |
| 27 | (8) It is the intent of the Legislature that credits |
| 28 | against either the corporate income tax or the franchise tax be |
| 29 | applied in the following order: those enumerated in s. 631.828, |
| 30 | those enumerated in s. 220.191, those enumerated in s. 220.181, |
| 31 | those enumerated in s. 220.183, those enumerated in s. 220.182, |
| 32 | those enumerated in s. 220.1895, those enumerated in s. 221.02, |
| 33 | those enumerated in s. 220.184, those enumerated in s. 220.186, |
| 34 | those enumerated in s. 220.1845, those enumerated in s. 220.19, |
| 35 | those enumerated in s. 220.185, and those enumerated in s. |
| 36 | 220.187, and those enumerated in s. 220.192. |
| 37 | Section 2. Paragraph (a) of subsection (1) of section |
| 38 | 220.13, Florida Statutes, is amended to read: |
| 39 | 220.13 "Adjusted federal income" defined.-- |
| 40 | (1) The term "adjusted federal income" means an amount |
| 41 | equal to the taxpayer's taxable income as defined in subsection |
| 42 | (2), or such taxable income of more than one taxpayer as |
| 43 | provided in s. 220.131, for the taxable year, adjusted as |
| 44 | follows: |
| 45 | (a) Additions.--There shall be added to such taxable |
| 46 | income: |
| 47 | 1. The amount of any tax upon or measured by income, |
| 48 | excluding taxes based on gross receipts or revenues, paid or |
| 49 | accrued as a liability to the District of Columbia or any state |
| 50 | of the United States which is deductible from gross income in |
| 51 | the computation of taxable income for the taxable year. |
| 52 | 2. The amount of interest which is excluded from taxable |
| 53 | income under s. 103(a) of the Internal Revenue Code or any other |
| 54 | federal law, less the associated expenses disallowed in the |
| 55 | computation of taxable income under s. 265 of the Internal |
| 56 | Revenue Code or any other law, excluding 60 percent of any |
| 57 | amounts included in alternative minimum taxable income, as |
| 58 | defined in s. 55(b)(2) of the Internal Revenue Code, if the |
| 59 | taxpayer pays tax under s. 220.11(3). |
| 60 | 3. In the case of a regulated investment company or real |
| 61 | estate investment trust, an amount equal to the excess of the |
| 62 | net long-term capital gain for the taxable year over the amount |
| 63 | of the capital gain dividends attributable to the taxable year. |
| 64 | 4. That portion of the wages or salaries paid or incurred |
| 65 | for the taxable year which is equal to the amount of the credit |
| 66 | allowable for the taxable year under s. 220.181. The provisions |
| 67 | of this subparagraph shall expire and be void on June 30, 2005. |
| 68 | 5. That portion of the ad valorem school taxes paid or |
| 69 | incurred for the taxable year which is equal to the amount of |
| 70 | the credit allowable for the taxable year under s. 220.182. The |
| 71 | provisions of this subparagraph shall expire and be void on June |
| 72 | 30, 2005. |
| 73 | 6. The amount of emergency excise tax paid or accrued as a |
| 74 | liability to this state under chapter 221 which tax is |
| 75 | deductible from gross income in the computation of taxable |
| 76 | income for the taxable year. |
| 77 | 7. That portion of assessments to fund a guaranty |
| 78 | association incurred for the taxable year which is equal to the |
| 79 | amount of the credit allowable for the taxable year. |
| 80 | 8. In the case of a nonprofit corporation which holds a |
| 81 | pari-mutuel permit and which is exempt from federal income tax |
| 82 | as a farmers' cooperative, an amount equal to the excess of the |
| 83 | gross income attributable to the pari-mutuel operations over the |
| 84 | attributable expenses for the taxable year. |
| 85 | 9. The amount taken as a credit for the taxable year under |
| 86 | s. 220.1895. |
| 87 | 10. Up to nine percent of the eligible basis of any |
| 88 | designated project which is equal to the credit allowable for |
| 89 | the taxable year under s. 220.185. |
| 90 | 11. The amount taken as a credit for the taxable year |
| 91 | under s. 220.187. |
| 92 | 12. The amount taken as a credit for the taxable year |
| 93 | under s. 220.192. |
| 94 | Section 3. Section 220.192, Florida Statutes, is created |
| 95 | to read: |
| 96 | 220.192 Credits for small businesses providing health care |
| 97 | insurance for their employees.-- |
| 98 | (1)(a) Retroactive to January 1, 2004, and applying on a |
| 99 | prorated basis to tax years ending on or after January 1, 2004, |
| 100 | there shall be allowed a credit against the tax imposed by this |
| 101 | chapter to any small business as defined by s. 288.703(1) that |
| 102 | provides health care insurance for its employees consisting of |
| 103 | the coverages provided in chapter 627. |
| 104 | (b) The credit shall be computed as the amount paid in |
| 105 | premiums by the business claiming the credit to provide health |
| 106 | care insurance for employees of the business, not to exceed |
| 107 | $1,000 per tax year. |
| 108 | (2)(a) If the credit is not fully used in any one year, |
| 109 | the unused amount may be carried forward for a period not to |
| 110 | exceed 5 years. The carryover credit may be used in a subsequent |
| 111 | year when the tax imposed by this chapter for such year exceeds |
| 112 | the credit for such year after applying the other credits and |
| 113 | unused credit carryovers in the order provided in s. 220.02(8). |
| 114 | (b) Small businesses shall provide documentation of |
| 115 | eligibility to claim the tax credit pursuant to this section to |
| 116 | the department in a form and manner prescribed by rules of the |
| 117 | department. |
| 118 | (c) The department shall adopt rules necessary to |
| 119 | administer this section, including rules establishing |
| 120 | application forms and procedures. |
| 121 | Section 4. This act shall take effect upon becoming a law. |