HB 729

1	A bill to be entitled
2	An act relating to tax credits for taxpayer expenditures
3	to promote employee fitness; creating s. 220.192, F.S.;
4	providing for a credit against the corporate income tax
5	for certain corporate taxpayer expenditures relating to
6	providing employee fitness facilities or supporting
7	fitness-related activities by employees; providing for
8	administration by the Department of Revenue; requiring the
9	department to adopt rules; providing for expiration;
10	providing an exception; defining terms; amending s.
11	220.02, F.S.; providing an addition to the order in which
12	credits against the corporate income tax are taken;
13	amending s. 220.13, F.S.; adding the amount taken as a
14	credit under s. 220.192, F.S., to adjusted federal income;
15	creating s. 624.5108, F.S.; providing definitions;
16	providing for a credit against the insurance premium tax
17	for certain insurer expenditures relating to providing
18	employee fitness facilities or supporting fitness-related
19	activities by employees; providing for administration by
20	the Department of Revenue; requiring the department to
21	adopt rules; providing for expiration; providing an
22	exception; providing applicability; providing an effective
23	date.
24
25	Be It Enacted by the Legislature of the State of Florida:
26
27	Section 1.  Section 220.192, Florida Statutes, is created
28	to read:
29	220.192  Employee fitness tax credits.--
30	(1)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
31	(a)  A taxpayer shall be allowed a credit against any tax
32	due for a taxable year under this chapter equal to 10 percent of
33	the taxpayer's expenditures during the taxable year for:
34	1.  The costs of equipping, operating, and maintaining a
35	facility owned by the taxpayer, located on the taxpayer's
36	premises, and used exclusively for the purpose of promoting the
37	physical fitness of the taxpayer's employees in this state,
38	including, but not limited to, a gymnasium, weight training
39	room, aerobics workout space, swimming pool, running track, or
40	any indoor or outdoor court, field, or other site used for
41	competitive sports events or games.
42	2.  The costs, to the extent not covered in subparagraph
43	1., of equipping and providing any related financial support for
44	an amateur athletic team that engages in vigorous athletic
45	activity and is under the sponsorship of the taxpayer, either
46	alone or jointly with one or more other employers, if the
47	membership of the team consists entirely of employees of the
48	taxpayer in this state or the taxpayer and another employer or
49	employers with whom the taxpayer has joined to provide employee
50	fitness equipment and financial support.
51	3.  Fifty percent of the cost of employing a qualified
52	person to conduct, on the taxpayer's business premises in this
53	state, a class or classes offering:
54	a.  Information and guidance on subjects relating to
55	personal and family health, such as nutrition, hygiene, and
56	methods of preventing, recognizing, and combating substance
57	abuse; or
58	b.  Instruction in and opportunity for fitness enhancement
59	activity, including, but not limited to, dance or other aerobic
60	exercise, yoga, muscle stretching, and martial arts routines.
61	(b)  Credits authorized under this section for any taxpayer
62	may not exceed 50 percent of the tax due under this chapter for
63	any taxable year.
64	(c)  Credits authorized under this section for any taxpayer
65	may not exceed $50 multiplied by the average of the number of
66	full-time employees of the taxpayer as of the last day of the
67	3rd, 6th, 9th, and 12th months of the taxable year.
68	(d)  Two or more taxpayers may join together to establish
69	and operate an employee fitness facility, provide employee
70	fitness equipment and financial support, or provide employee
71	fitness instruction in accordance with this section. The
72	participating taxpayers may apportion the annual employee
73	fitness credits in any manner they consider appropriate, but a
74	jointly operated employee fitness facility established under
75	this section may not receive more than $50 multiplied by the
76	average of the number of full-time employees of the
77	participating taxpayers as of the last day of the 3rd, 6th, 9th,
78	and 12th months of the taxable year.
79	(e)  A taxpayer, or two or more taxpayers acting jointly,
80	may employ a not-for-profit corporation to operate an employee
81	fitness facility, provide employee fitness equipment and
82	financial support, or provide employee fitness instruction.
83	(f)  If the credit granted under this section is not fully
84	used in any one year because of insufficient tax liability on
85	the part of the corporation, the unused amount may be carried
86	forward for a period not to exceed 5 years. The carryover credit
87	may be used in a subsequent year when the tax imposed by this
88	chapter for that year exceeds the credit for which the
89	corporation is eligible in that year under this section after
90	applying the other credits and unused carryovers in the order
91	provided by s. 220.02(8).
92	(g)  A taxpayer that files a consolidated return in this
93	state as a member of an affiliated group under s. 220.131 may be
94	allowed the credit on a consolidated return basis.
95	(h)  A taxpayer that is eligible to receive credit under s.
96	624.5108 is ineligible to receive credit under this section.
97	(i)  An expenditure by a taxpayer to provide any of the
98	employee fitness benefits described in paragraph (a) does not
99	qualify for a credit under this section unless the benefit is
100	extended equally to all full-time employees.
101	(j)  Credits authorized under this section are not
102	available to any professional sports franchise or facility or to
103	any taxpayer whose primary business activity is operating a
104	fitness facility or providing any services eligible for credits
105	under this section.
106	(2)  ADMINISTRATION.--
107	(a)  The Department of Revenue shall adopt rules and forms
108	necessary to administer this section, including rules to provide
109	for cooperative arrangements between taxpayers and not-for-
110	profit corporations.
111	(b)  Verification of payments to a not-for-profit
112	corporation, to a health studio or other fitness facility, or to
113	a person who provides health or fitness instruction to a
114	taxpayer's employees must be in writing and must be retained by
115	the taxpayer in support of the credit claimed on the tax return.
116	(c)  Application for credit for payments made to construct
117	or rehabilitate a facility used for the purpose of promoting the
118	physical fitness of the taxpayer's employees in this state must
119	be submitted to the department within 6 months after the local
120	building inspector deems that the construction or rehabilitation
121	of the facility is substantially completed. Application for
122	credit for eligible expenditures pursuant to paragraph (1)(a)
123	must be submitted to the department with the tax return on which
124	the credit is claimed.
125	(d)  A business that files an amended return for a taxable
126	year may not receive any amount of credit or credit carryforward
127	pursuant to this section in excess of the amount claimed by the
128	business on its original return for the taxable year. This
129	subsection does not apply to increases in the amount of credit
130	claimed under this section on an amended return due to the use
131	of any credit amount previously carried forward for the taxable
132	year on the original return or any eligible prior year under
133	paragraph (1)(f).
134	(3)  EXPIRATION.--This section expires on December 31,
135	2016, except that paragraph (1)(f), which relates to carryover
136	credits, does not expire on that date.
137	(4)  DEFINITIONS.--As used in this section, the term:
138	(a)  "Amateur athletic team" means a team of persons who
139	engage in competitive athletic events for which no monetary
140	remuneration is provided, all of whom are employed by the
141	taxpayer or an employer with whom the taxpayer has joined to
142	provide employee fitness equipment and financial support.
143	(b)  "Other fitness facility" means a facility that is
144	engaged in the sale of services for instruction, training, or
145	assistance in a program of physical exercise or in the sale of
146	services for the right or privilege to use equipment or
147	facilities in furtherance of a program of physical exercise but
148	is not subject to chapter 501.
149	(c)  "Qualified person" means a person certified by a
150	recognized national organization to provide the instruction for
151	which a tax credit is being sought.
152	(d)  "Vigorous athletic activity" means exertion that makes
153	a person sweat and breathe hard, such as basketball, soccer,
154	running, swimming laps, fast bicycling, fast dancing, and
155	similar aerobic activities.
156	Section 2.  Subsection (8) of section 220.02, Florida
157	Statutes, is amended to read:
158	220.02  Legislative intent.--
159	(8)  It is the intent of the Legislature that credits
160	against either the corporate income tax or the franchise tax be
161	applied in the following order: those enumerated in s. 631.828,
162	those enumerated in s. 220.191, those enumerated in s. 220.181,
163	those enumerated in s. 220.183, those enumerated in s. 220.182,
164	those enumerated in s. 220.1895, those enumerated in s. 221.02,
165	those enumerated in s. 220.184, those enumerated in s. 220.186,
166	those enumerated in s. 220.1845, those enumerated in s. 220.19,
167	those enumerated in s. 220.185, and those enumerated in s.
168	220.187, and those enumerated in s. 220.192.
169	Section 3.  Paragraph (a) of subsection (1) of section
170	220.13, Florida Statutes, is amended to read:
171	220.13  "Adjusted federal income" defined.--
172	(1)  The term "adjusted federal income" means an amount
173	equal to the taxpayer's taxable income as defined in subsection
174	(2), or such taxable income of more than one taxpayer as
175	provided in s. 220.131, for the taxable year, adjusted as
176	follows:
177	(a)  Additions.--There shall be added to such taxable
178	income:
179	1.  The amount of any tax upon or measured by income,
180	excluding taxes based on gross receipts or revenues, paid or
181	accrued as a liability to the District of Columbia or any state
182	of the United States which is deductible from gross income in
183	the computation of taxable income for the taxable year.
184	2.  The amount of interest which is excluded from taxable
185	income under s. 103(a) of the Internal Revenue Code or any other
186	federal law, less the associated expenses disallowed in the
187	computation of taxable income under s. 265 of the Internal
188	Revenue Code or any other law, excluding 60 percent of any
189	amounts included in alternative minimum taxable income, as
190	defined in s. 55(b)(2) of the Internal Revenue Code, if the
191	taxpayer pays tax under s. 220.11(3).
192	3.  In the case of a regulated investment company or real
193	estate investment trust, an amount equal to the excess of the
194	net long-term capital gain for the taxable year over the amount
195	of the capital gain dividends attributable to the taxable year.
196	4.  That portion of the wages or salaries paid or incurred
197	for the taxable year which is equal to the amount of the credit
198	allowable for the taxable year under s. 220.181. The provisions
199	of this subparagraph shall expire and be void on June 30, 2005.
200	5.  That portion of the ad valorem school taxes paid or
201	incurred for the taxable year which is equal to the amount of
202	the credit allowable for the taxable year under s. 220.182. The
203	provisions of this subparagraph shall expire and be void on June
204	30, 2005.
205	6.  The amount of emergency excise tax paid or accrued as a
206	liability to this state under chapter 221 which tax is
207	deductible from gross income in the computation of taxable
208	income for the taxable year.
209	7.  That portion of assessments to fund a guaranty
210	association incurred for the taxable year which is equal to the
211	amount of the credit allowable for the taxable year.
212	8.  In the case of a nonprofit corporation which holds a
213	pari-mutuel permit and which is exempt from federal income tax
214	as a farmers' cooperative, an amount equal to the excess of the
215	gross income attributable to the pari-mutuel operations over the
216	attributable expenses for the taxable year.
217	9.  The amount taken as a credit for the taxable year under
218	s. 220.1895.
219	10.  Up to nine percent of the eligible basis of any
220	designated project which is equal to the credit allowable for
221	the taxable year under s. 220.185.
222	11.  The amount taken as a credit for the taxable year
223	under s. 220.187.
224	12.  The amount taken as a credit under s. 220.192.
225	Section 4.  Section 624.5108, Florida Statutes, is created
226	to read:
227	624.5108  Employee fitness tax credits; definitions;
228	authorization; limitations; eligibility and application
229	requirements; administration; expiration.--
230	(1)  DEFINITIONS.--As used in this section, the term:
231	(a)  "Amateur athletic team" means a team of persons who
232	engage in competitive athletic events for which no monetary
233	remuneration is provided, all of whom are employed by the
234	taxpayer or an employer with whom the taxpayer has joined to
235	provide employee fitness equipment and financial support.
236	(b)  "Department" means the Department of Revenue.
237	(c)  "Employee fitness costs" means:
238	1.  The costs of equipping, operating, and maintaining a
239	facility owned by the taxpayer, located on the taxpayer's
240	premises, and used exclusively for the purpose of promoting the
241	physical fitness of the taxpayer's employees in this state,
242	including, but not limited to, a gymnasium, weight training
243	room, aerobics workout space, swimming pool, running track, or
244	any indoor or outdoor court, field, or other site used for
245	competitive sports events or games.
246	2.  The costs, to the extent not covered in subparagraph
247	1., of equipping and providing any related financial support for
248	an amateur athletic team that engages in vigorous athletic
249	activity under the sponsorship of the taxpayer, either alone or
250	jointly with one or more other employers, if the membership of
251	the team consists entirely of employees of the taxpayer in this
252	state or the taxpayer and another employer or employers, as
253	appropriate.
254	3.  Fifty percent of the cost of employing a qualified
255	person to conduct, on the taxpayer's business premises in this
256	state, a class or classes offering:
257	a.  Information and guidance on subjects relating to
258	personal and family health, such as nutrition, hygiene, and
259	methods of preventing, recognizing, and combating substance
260	abuse; or
261	b.  Instruction in and opportunity for fitness enhancement
262	activity, including, but not limited to, dance or other aerobic
263	exercise, yoga, muscle stretching, and martial arts routines.
264	(d)  "Other fitness facility" means a facility that is
265	engaged in the sale of services for instruction, training, or
266	assistance in a program of physical exercise or in the sale of
267	services for the right or privilege to use equipment or
268	facilities in furtherance of a program of physical exercise but
269	is not subject to chapter 501.
270	(e)  "Qualified person" means a person certified by a
271	recognized national organization to provide the instruction for
272	which a tax credit is being sought.
273	(f)  "Vigorous athletic activity" means exertion that makes
274	a person sweat and breathe hard, such as basketball, soccer,
275	running, swimming laps, fast bicycling, fast dancing, and
276	similar aerobic activities.
277	(2)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
278	(a)  A credit of 10 percent of employee fitness costs
279	incurred by an insurer is allowed against any tax due for a
280	taxable year under ss. 624.509 and 624.510.
281	(b)  Credits authorized under this section for any taxpayer
282	may not exceed 50 percent of the tax due under this chapter for
283	any taxable year.
284	(c)  Credits authorized under this section for any taxpayer
285	may not exceed $50 multiplied by the average of the number of
286	full-time employees of the insurer as of the last day of the
287	3rd, 6th, 9th, and 12th months of the taxable year.
288	(d)  If the credit granted under this section is not fully
289	used in any one year because of insufficient tax liability on
290	the part of the insurer, the unused amount may be carried
291	forward for a period not to exceed 5 years. The carryover credit
292	may be used in a subsequent year when the tax imposed by ss.
293	624.509 and 624.510 for that year exceeds the credit for which
294	the insurer is eligible in that year under this section.
295	(e)  An insurer that is eligible to receive credit under s.
296	220.192 is ineligible to receive credit under this section.
297	(f)  An expenditure by an insurer to provide any of the
298	employee fitness benefits described in paragraph (1)(a) does not
299	qualify for a credit under this section unless the benefit is
300	extended equally to all full-time employees.
301	(3)  ADMINISTRATION.--
302	(a)  The Department of Revenue shall adopt rules and forms
303	necessary to administer this section, including rules to provide
304	for cooperative arrangements between taxpayers and not-for-
305	profit corporations.
306	(b)  Verification of payments to a not-for-profit
307	corporation, to a health studio or other fitness facility, or to
308	a person who provides health or fitness instruction to a
309	taxpayer's employees must be in writing and must be retained by
310	the taxpayer in support of the credit claimed on the tax return.
311	(4)  EXPIRATION.--This section expires on December 31,
312	2016, except that paragraph (2)(d), which relates to carryover
313	credits, does not expire on that date.
314	Section 5.  This act shall take effect January 1, 2007, and
315	shall apply to tax years beginning on or after that date.

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