| 1 | A bill to be entitled |
| 2 | An act relating to tax credits for hiring a person who has |
| 3 | a disability; creating ss. 212.099 and 220.193, F.S.; |
| 4 | authorizing credits against the sales and use tax and the |
| 5 | corporate income tax, respectively, for hiring a person |
| 6 | who has a disability; providing conditions and procedures |
| 7 | for receiving the tax credit; authorizing rulemaking by |
| 8 | the Department of Revenue and the Department of Education; |
| 9 | providing criminal penalties; providing for future |
| 10 | expiration of the provisions; amending s. 220.02, F.S.; |
| 11 | providing legislative intent on the order in which to |
| 12 | claim the credit against corporate income tax; amending s. |
| 13 | 220.13, F.S.; providing for adjustments to taxable income |
| 14 | to account for the credit against corporate income tax; |
| 15 | providing for future expiration; providing an effective |
| 16 | date. |
| 17 |
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| 18 | Be It Enacted by the Legislature of the State of Florida: |
| 19 |
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| 20 | Section 1. Section 212.099, Florida Statutes, is created |
| 21 | to read: |
| 22 | 212.099 Credit for hiring a person who has a disability.-- |
| 23 | (1) As used in this section, the term "person who has a |
| 24 | disability" has the same meaning ascribed in s. 413.20 and in |
| 25 | rules of the Division of Vocational Rehabilitation of the |
| 26 | Department of Education which implement that section and part II |
| 27 | of chapter 413. |
| 28 | (2)(a) Beginning January 1, 2005, there shall be allowed a |
| 29 | credit against the tax remitted under this chapter for a |
| 30 | business that demonstrates to the department that it has hired, |
| 31 | on or after July 1, 2004, a person who has a disability. |
| 32 | (b) The credit shall be computed as 20 percent of the |
| 33 | actual monthly wages paid in this state during the taxable |
| 34 | period to each employee who is a person who has a disability. |
| 35 | The credit may be claimed for a maximum of five eligible |
| 36 | employees per taxable period and may not exceed $670 per |
| 37 | eligible employee per month. |
| 38 | (3)(a) The credit under this section applies only with |
| 39 | respect to wages subject to unemployment tax. |
| 40 | (b) The credit does not apply for an employee who: |
| 41 | 1. Works fewer than 80 hours per month; or |
| 42 | 2. Is employed for a period of less than 3 calendar |
| 43 | months. |
| 44 | (4) A business that uses a credit under this section |
| 45 | against the tax imposed by this chapter may not take the credit |
| 46 | under s. 220.193 against the tax imposed by chapter 220. |
| 47 | (5) Credit under this section is not allowed for a month |
| 48 | in which the tax due for such period or the tax return required |
| 49 | under s. 212.11 for such period is delinquent. |
| 50 | (6) If a business has a credit larger than the amount owed |
| 51 | the state on the tax return for the period in which the credit |
| 52 | is claimed, the amount of the credit for that time period is the |
| 53 | amount owed the state on that tax return. |
| 54 | (7) Before claiming a credit under this section, a |
| 55 | business must obtain from the Division of Vocational |
| 56 | Rehabilitation of the Department of Education a written |
| 57 | verification that the employee who is the basis for the credit |
| 58 | is a person who has a disability. The division may adopt rules |
| 59 | under ss. 120.536(1) and 120.54 to administer this subsection, |
| 60 | including, but not limited to, rules governing the process for |
| 61 | applying for the verification and the criteria for evaluating an |
| 62 | application for verification. |
| 63 | (8) To receive the credit under this section, a business |
| 64 | must demonstrate to the department that it has satisfied the |
| 65 | conditions and requirements of this section. The department may |
| 66 | adopt rules under ss. 120.536(1) and 120.54 to administer this |
| 67 | section, including, but not limited to, rules governing the |
| 68 | procedures and forms to claim a credit and the guidelines for |
| 69 | approval or disapproval of the claim. |
| 70 | (9)(a) A person who fraudulently claims a credit under |
| 71 | this section is liable for repayment of the credit, plus a |
| 72 | mandatory penalty in the amount of 100 percent of the credit, |
| 73 | plus interest at the rate provided in this chapter, and commits |
| 74 | a misdemeanor of the first degree, punishable as provided in s. |
| 75 | 775.082 or s. 775.083. |
| 76 | (b) A person who makes an underpayment of tax as a result |
| 77 | of a grossly overstated claim for this credit commits a felony |
| 78 | of the third degree, punishable as provided in s. 775.082 or s. |
| 79 | 775.083. For the purposes of this paragraph, the term "grossly |
| 80 | overstated claim" means a claim in an amount in excess of 100 |
| 81 | percent of the amount of credit allowable under this section. |
| 82 | (10) This section expires on June 30, 2009; however, the |
| 83 | expiration of this section does not affect the operation of any |
| 84 | credit for which a taxpayer has qualified under this section |
| 85 | before June 30, 2009. |
| 86 | Section 2. Section 220.193, Florida Statutes, is created |
| 87 | to read: |
| 88 | 220.193 Credit for hiring a person who has a disability.-- |
| 89 | (1) As used in this section, the term "person who has a |
| 90 | disability" has the same meaning ascribed in s. 413.20 and in |
| 91 | rules of the Division of Vocational Rehabilitation of the |
| 92 | Department of Education which implement that section and part II |
| 93 | of chapter 413. |
| 94 | (2)(a) Beginning January 1, 2005, there shall be allowed a |
| 95 | credit against the tax imposed by this chapter to a taxpayer |
| 96 | that demonstrates to the department that it has hired, on or |
| 97 | after July 1, 2004, a person who has a disability. |
| 98 | (b) The credit shall be computed as 20 percent of the |
| 99 | actual monthly wages paid in this state during the taxable |
| 100 | period to each employee who is a person who has a disability. |
| 101 | The credit may be claimed for a maximum of five eligible |
| 102 | employees per taxable period and may not exceed $8,000 per |
| 103 | eligible employee each taxable year. |
| 104 | (3)(a) The credit under this section applies only with |
| 105 | respect to wages subject to unemployment tax. |
| 106 | (b) The credit does not apply for an employee who: |
| 107 | 1. Works fewer than 80 hours per month; or |
| 108 | 2. Is employed for a period of less than 3 calendar |
| 109 | months. |
| 110 | (4) A taxpayer that uses a credit granted under this |
| 111 | section against the tax imposed by this chapter may not take the |
| 112 | credit granted under s. 212.099 against the tax imposed by |
| 113 | chapter 212. |
| 114 | (5) If the credit is not fully used in any one year, the |
| 115 | unused amount may be carried forward for a period not to exceed |
| 116 | 5 years. The carryover credit may be used in a subsequent year |
| 117 | if the tax imposed by this chapter for such year exceeds the |
| 118 | credit for such year after applying the other credits and unused |
| 119 | credit carryovers in the order provided in s. 220.02. |
| 120 | (6) Before claiming a credit under this section, a |
| 121 | taxpayer must obtain from the Division of Vocational |
| 122 | Rehabilitation of the Department of Education a written |
| 123 | verification that the employee who is the basis for the credit |
| 124 | is a person who has a disability. The division may adopt rules |
| 125 | under ss. 120.536(1) and 120.54 to administer this subsection, |
| 126 | including, but not limited to, rules governing the process for |
| 127 | applying for the verification and the criteria for evaluating an |
| 128 | application for verification. |
| 129 | (7) To receive the credit under this section, a taxpayer |
| 130 | must demonstrate to the department that it has satisfied the |
| 131 | conditions and requirements of this section. The department may |
| 132 | adopt rules under ss. 120.536(1) and 120.54 to administer this |
| 133 | section, including, but not limited to, rules governing the |
| 134 | procedures and forms to claim a credit and the guidelines for |
| 135 | approval or disapproval of the claim. |
| 136 | (8)(a) A person who fraudulently claims a credit under |
| 137 | this section is liable for repayment of the credit, plus a |
| 138 | mandatory penalty in the amount of 100 percent of the credit, |
| 139 | plus interest at the rate provided in s. 220.807, and commits a |
| 140 | misdemeanor of the first degree, punishable as provided in s. |
| 141 | 775.082 or s. 775.083. |
| 142 | (b) A person who makes an underpayment of tax as a result |
| 143 | of a grossly overstated claim for this credit commits a felony |
| 144 | of the third degree, punishable as provided in s. 775.082 or s. |
| 145 | 775.083. For the purposes of this paragraph, the term "grossly |
| 146 | overstated claim" means a claim in an amount in excess of 100 |
| 147 | percent of the amount of credit allowable under this section. |
| 148 | (9) This section expires on June 30, 2009; however, the |
| 149 | expiration of this section does not affect the operation of any |
| 150 | credit for which a taxpayer has qualified under this section |
| 151 | before June 30, 2009, or any carryforward of unused credit |
| 152 | amounts as provided in subsection (5). |
| 153 | Section 3. Subsection (8) of section 220.02, Florida |
| 154 | Statutes, is amended to read: |
| 155 | 220.02 Legislative intent.-- |
| 156 | (8) It is the intent of the Legislature that credits |
| 157 | against either the corporate income tax or the franchise tax be |
| 158 | applied in the following order: those enumerated in s. 631.828, |
| 159 | those enumerated in s. 220.191, those enumerated in s. 220.181, |
| 160 | those enumerated in s. 220.183, those enumerated in s. 220.182, |
| 161 | those enumerated in s. 220.1895, those enumerated in s. 221.02, |
| 162 | those enumerated in s. 220.184, those enumerated in s. 220.186, |
| 163 | those enumerated in s. 220.1845, those enumerated in s. 220.19, |
| 164 | those enumerated in s. 220.185, and those enumerated in s. |
| 165 | 220.187, and those enumerated in s. 220.193. |
| 166 | Section 4. Paragraph (a) of subsection (1) of section |
| 167 | 220.13, Florida Statutes, is amended to read: |
| 168 | 220.13 "Adjusted federal income" defined.-- |
| 169 | (1) The term "adjusted federal income" means an amount |
| 170 | equal to the taxpayer's taxable income as defined in subsection |
| 171 | (2), or such taxable income of more than one taxpayer as |
| 172 | provided in s. 220.131, for the taxable year, adjusted as |
| 173 | follows: |
| 174 | (a) Additions.--There shall be added to such taxable |
| 175 | income: |
| 176 | 1. The amount of any tax upon or measured by income, |
| 177 | excluding taxes based on gross receipts or revenues, paid or |
| 178 | accrued as a liability to the District of Columbia or any state |
| 179 | of the United States which is deductible from gross income in |
| 180 | the computation of taxable income for the taxable year. |
| 181 | 2. The amount of interest which is excluded from taxable |
| 182 | income under s. 103(a) of the Internal Revenue Code or any other |
| 183 | federal law, less the associated expenses disallowed in the |
| 184 | computation of taxable income under s. 265 of the Internal |
| 185 | Revenue Code or any other law, excluding 60 percent of any |
| 186 | amounts included in alternative minimum taxable income, as |
| 187 | defined in s. 55(b)(2) of the Internal Revenue Code, if the |
| 188 | taxpayer pays tax under s. 220.11(3). |
| 189 | 3. In the case of a regulated investment company or real |
| 190 | estate investment trust, an amount equal to the excess of the |
| 191 | net long-term capital gain for the taxable year over the amount |
| 192 | of the capital gain dividends attributable to the taxable year. |
| 193 | 4. That portion of the wages or salaries paid or incurred |
| 194 | for the taxable year which is equal to the amount of the credit |
| 195 | allowable for the taxable year under s. 220.181. The provisions |
| 196 | of this subparagraph shall expire and be void on June 30, 2005. |
| 197 | 5. That portion of the ad valorem school taxes paid or |
| 198 | incurred for the taxable year which is equal to the amount of |
| 199 | the credit allowable for the taxable year under s. 220.182. The |
| 200 | provisions of this subparagraph shall expire and be void on June |
| 201 | 30, 2005. |
| 202 | 6. The amount of emergency excise tax paid or accrued as a |
| 203 | liability to this state under chapter 221 which tax is |
| 204 | deductible from gross income in the computation of taxable |
| 205 | income for the taxable year. |
| 206 | 7. That portion of assessments to fund a guaranty |
| 207 | association incurred for the taxable year which is equal to the |
| 208 | amount of the credit allowable for the taxable year. |
| 209 | 8. In the case of a nonprofit corporation which holds a |
| 210 | pari-mutuel permit and which is exempt from federal income tax |
| 211 | as a farmers' cooperative, an amount equal to the excess of the |
| 212 | gross income attributable to the pari-mutuel operations over the |
| 213 | attributable expenses for the taxable year. |
| 214 | 9. The amount taken as a credit for the taxable year under |
| 215 | s. 220.1895. |
| 216 | 10. Up to nine percent of the eligible basis of any |
| 217 | designated project which is equal to the credit allowable for |
| 218 | the taxable year under s. 220.185. |
| 219 | 11. The amount taken as a credit for the taxable year |
| 220 | under s. 220.187. |
| 221 | 12. The amount taken as a credit for the taxable year |
| 222 | under s. 220.193. This subparagraph expires on June 30, 2009. |
| 223 | Section 5. This act shall take effect July 1, 2004. |