Senate Bill sb0194
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Florida Senate - 2007 SB 194
By Senator Margolis
35-187A-07
1 A bill to be entitled
2 An act relating to tax credits for certain
3 taxpayer expenditures to promote employee
4 fitness; creating s. 220.1925, F.S.; providing
5 a credit against the tax on corporate income
6 for certain taxpayer expenditures relating to
7 providing employee fitness facilities or
8 supporting fitness-related activities by
9 employees; defining terms; amending s. 220.02,
10 F.S.; providing the order in which credits
11 against the corporate income tax shall be
12 taken; amending s. 220.13, F.S.; adding the
13 amount taken as a credit under s. 220.1925,
14 F.S., to adjusted federal income; creating s.
15 624.5108, F.S.; providing a credit against the
16 tax on insurers for employee fitness costs, as
17 defined in this act, which are incurred by an
18 insurer; amending s. 624.509, F.S.; providing
19 for the order of credits against the tax on
20 insurers; providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Section 220.1925, Florida Statutes, is
25 created to read:
26 220.1925 Employee fitness tax credits.--
27 (1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
28 (a) A taxpayer shall be allowed a credit against any
29 tax due for a taxable year under this chapter equal to 10
30 percent of the taxpayer's expenditures during the taxable year
31 for:
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1 1. The costs of equipping, operating, and maintaining
2 a facility owned by the taxpayer, located on the taxpayer's
3 premises, and used exclusively for the purpose of promoting
4 the physical fitness of the taxpayer's employees in this
5 state, including, but not limited to, a gymnasium, weight
6 training room, aerobics workout space, swimming pool, running
7 track, or any indoor or outdoor court, field, or other site
8 used for competitive sports events or games;
9 2. The costs, to the extent not covered in
10 subparagraph 1., of equipping and providing any related
11 financial support for an amateur athletic team that engages in
12 vigorous athletic activity and is under the sponsorship of the
13 taxpayer, either alone or jointly with one or more other
14 employers, if the membership of the team consists entirely of
15 employees of the taxpayer in this state or the taxpayer and
16 another employer or employers with whom the taxpayer has
17 joined to provide employee fitness equipment and financial
18 support;
19 3. The cost of subsidizing an employee's membership to
20 a health studio as defined in s. 501.0125 and located in
21 Florida; and
22 4. Fifty percent of the cost of employing a qualified
23 person or organization to provide, on the taxpayer's business
24 premises in this state:
25 a. Information and guidance on subjects relating to
26 personal and family health, such as nutrition, hygiene, and
27 methods of preventing, recognizing, and combating substance
28 abuse; or
29 b. Instruction in and opportunity for fitness
30 enhancement activity, including, but not limited to, dance or
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1 other aerobic exercise, yoga, muscle stretching, and martial
2 arts routines.
3 (b) Credits authorized under this section for any
4 taxpayer may not exceed 50 percent of the tax due under this
5 chapter for any taxable year.
6 (c) Credits authorized under this section for any
7 taxpayer may not exceed $50 multiplied by the average of the
8 number of full-time equivalent employees of the taxpayer in
9 this state as of the last day of the 3rd, 6th, 9th, and 12th
10 months of the taxable year.
11 (d) Two or more taxpayers may join together to
12 establish and operate an employee fitness facility, provide
13 employee fitness equipment and financial support, or provide
14 employee fitness instruction in accordance with this section.
15 The participating taxpayers may apportion the annual employee
16 fitness credits in any manner they consider appropriate, but a
17 jointly operated employee fitness facility established under
18 this section may not receive more than $50 multiplied by the
19 average of the number of full-time equivalent employees of the
20 participating taxpayers in this state as of the last day of
21 the 3rd, 6th, 9th, and 12th months of the taxable year.
22 (e) A taxpayer, or two or more taxpayers acting
23 jointly, may employ a not-for-profit or for-profit corporation
24 to:
25 1. Operate an employee fitness facility;
26 2. Provide employee fitness equipment and financial
27 support; or
28 3. Provide employee fitness instruction,
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30 on the taxpayer's premises in this state.
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1 (f) If the credit granted under this section is not
2 fully used in any one year because of insufficient tax
3 liability on the part of the corporation, the unused amount
4 may be carried forward for a period not to exceed 5 years. The
5 carryover credit may be used in a subsequent year when the tax
6 imposed by this chapter for that year exceeds the credit for
7 which the corporation is eligible in that year under this
8 section after applying the other credits and unused carryovers
9 in the order provided by s. 220.02(8).
10 (g) A taxpayer that files a consolidated return in
11 this state as a member of an affiliated group under s. 220.131
12 may be allowed the credit on a consolidated return basis.
13 (h) A taxpayer that is eligible to receive credit
14 under s. 624.5108 is ineligible to receive credit under this
15 section.
16 (i) An expenditure by a taxpayer to provide any of the
17 employee fitness benefits described in paragraph (a) does not
18 qualify for a credit under this section unless the benefit is
19 extended equally to all full-time employees in this state.
20 (j) Credits authorized under this section are not
21 available to any professional sports franchise or facility or
22 to any taxpayer whose primary business activity is operating a
23 fitness facility or providing any services eligible for
24 credits under this section.
25 (2) ADMINISTRATION.--
26 (a) The Department of Revenue shall adopt rules and
27 forms necessary to administer this section, including rules to
28 provide for cooperative arrangements between taxpayers and
29 not-for-profit or for-profit corporations.
30 (b) Verification of payments to a not-for-profit or
31 for-profit corporation or to a person who provides health or
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1 fitness instruction to a taxpayer's employees must be in
2 writing and must be retained by the taxpayer in support of the
3 credit claimed on the tax return.
4 (c) Application for credit for payments made to
5 construct or rehabilitate a facility used for the purpose of
6 promoting the physical fitness of the taxpayer's employees in
7 this state must be submitted to the department within 6 months
8 after the local building inspector deems that the construction
9 or rehabilitation of the facility is substantially completed.
10 Application for credit for eligible expenditures pursuant to
11 paragraph (1)(a) must be submitted to the department with the
12 tax return on which the credit is claimed.
13 (d) A business that files an amended return for a
14 taxable year may not receive any amount of credit or credit
15 carryforward pursuant to this section in excess of the amount
16 claimed by the business on its original return for the taxable
17 year. This subsection does not apply to increases in the
18 amount of credit claimed under this section on an amended
19 return due to the use of any credit amount previously carried
20 forward for the taxable year on the original return or any
21 eligible prior year under paragraph (1)(f).
22 (3) EXPIRATION.--This section expires on December 31,
23 2017, except that paragraph (1)(f), which relates to carryover
24 credits, does not expire on that date.
25 (4) DEFINITIONS.--As used in this section, the term:
26 (a) "Amateur athletic team" means a team of persons
27 who engage in competitive athletic events for which no
28 monetary remuneration is provided, all of whom are employed by
29 the taxpayer or an employer with whom the taxpayer has joined
30 to provide employee fitness equipment and financial support.
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1 (b) "Qualified person" means a person certified by a
2 recognized national organization to provide the instruction
3 for which a tax credit is being sought.
4 (c) "Vigorous athletic activity" means exertion that
5 makes a person sweat and breathe hard, such as basketball,
6 soccer, running, swimming laps, fast bicycling, fast dancing,
7 and similar aerobic activities.
8 Section 2. Subsection (8) of section 220.02, Florida
9 Statutes, is amended to read:
10 220.02 Legislative intent.--
11 (8) It is the intent of the Legislature that credits
12 against either the corporate income tax or the franchise tax
13 be applied in the following order: those enumerated in s.
14 631.828, those enumerated in s. 220.191, those enumerated in
15 s. 220.181, those enumerated in s. 220.183, those enumerated
16 in s. 220.182, those enumerated in s. 220.1895, those
17 enumerated in s. 221.02, those enumerated in s. 220.184, those
18 enumerated in s. 220.186, those enumerated in s. 220.1845,
19 those enumerated in s. 220.19, those enumerated in s. 220.185,
20 those enumerated in s. 220.187, those enumerated in s.
21 220.192, and those enumerated in s. 220.193, and those
22 enumerated in s. 220.1925.
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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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 This subparagraph shall expire on the date specified in s.
26 290.016 for the expiration of the Florida Enterprise Zone Act.
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 This subparagraph shall expire on the date specified in s.
31 290.016 for the expiration of the Florida Enterprise Zone Act.
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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 12. The amount taken as a credit for the taxable year
21 under s. 220.192.
22 13. The amount taken as a credit for the taxable year
23 under s. 220.193.
24 14. The amount taken as a credit under s. 220.1925.
25 Section 4. Section 624.5108, Florida Statutes, is
26 created to read:
27 624.5108 Employee fitness tax credits; definitions;
28 authorization; limitations; eligibility and application
29 requirements; administration; expiration.--
30 (1) DEFINITIONS.--As used in this section, the term:
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1 (a) "Amateur athletic team" means a team of persons
2 who engage in competitive athletic events for which no
3 monetary remuneration is provided, all of whom are employed by
4 the taxpayer or an employer with whom the taxpayer has joined
5 to provide employee fitness equipment and financial support.
6 (b) "Department" means the Department of Revenue.
7 (c) "Employee fitness costs" means:
8 1. The costs of equipping, operating, and maintaining
9 a facility owned by the taxpayer, located on the taxpayer's
10 premises, and used exclusively for the purpose of promoting
11 the physical fitness of the taxpayer's employees in this
12 state, including, but not limited to, a gymnasium, weight
13 training room, aerobics workout space, swimming pool, running
14 track, or any indoor or outdoor court, field, or other site
15 used for competitive sports events or games;
16 2. The costs, to the extent not covered in
17 subparagraph 1., of equipping and providing any related
18 financial support for an amateur athletic team that engages in
19 vigorous athletic activity under the sponsorship of the
20 taxpayer, either alone or jointly with one or more other
21 employers, if the membership of the team consists entirely of
22 employees of the taxpayer in this state or the taxpayer and
23 another employer or employers, as appropriate; and
24 3. The cost of subsidizing an employee's membership to
25 a health studio as defined in s. 501.0125 and located in
26 Florida; and
27 4. Fifty percent of the cost of employing a qualified
28 person or organization to provide, on the taxpayer's business
29 premises in this state:
30 a. Information and guidance on subjects relating to
31 personal and family health, such as nutrition, hygiene, and
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1 methods of preventing, recognizing, and combating substance
2 abuse; or
3 b. Instruction in and opportunity for fitness
4 enhancement activity, including, but not limited to, dance or
5 other aerobic exercise, yoga, muscle stretching, and martial
6 arts routines.
7 (d) "Qualified person" means a person certified by a
8 recognized national organization to provide the instruction
9 for which a tax credit is being sought.
10 (e) "Vigorous athletic activity" means exertion that
11 makes a person sweat and breathe hard, such as basketball,
12 soccer, running, swimming laps, fast bicycling, fast dancing,
13 and similar aerobic activities.
14 (2) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
15 (a) A credit of 10 percent of employee fitness costs
16 incurred by an insurer during the taxable year is allowed
17 against any tax due for a taxable year under ss. 624.509 and
18 624.510.
19 (b) Credits authorized under this section for any
20 taxpayer may not exceed 50 percent of the tax due under this
21 chapter for any taxable year.
22 (c) Credits authorized under this section for any
23 taxpayer may not exceed $50 multiplied by the average of the
24 number of full-time equivalent employees of the insurer in
25 this state as of the last day of the 3rd, 6th, 9th, and 12th
26 months of the taxable year.
27 (d) Two or more taxpayers may join together to
28 establish and operate an employee fitness facility, provide
29 employee fitness equipment and financial support, or provide
30 employee fitness instruction in accordance with this section.
31 The participating taxpayers may apportion the annual employee
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1 fitness credits in any manner they consider appropriate, but a
2 jointly operated employee fitness facility established under
3 this section may not receive more than $50 multiplied by the
4 average of the number of full-time equivalent employees of the
5 participating taxpayers in this state as of the last day of
6 the 3rd, 6th, 9th, and 12th months of the taxable year.
7 (e) A taxpayer, or two or more taxpayers acting
8 jointly, may employ a not-for-profit or for-profit corporation
9 to:
10 1. Operate an employee fitness facility;
11 2. Provide employee fitness equipment and financial
12 support; or
13 3. Provide employee fitness instruction,
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15 on the taxpayer's premises in this state.
16 (f) If the credit granted under this section is not
17 fully used in any one year because of insufficient tax
18 liability on the part of the insurer, the unused amount may be
19 carried forward for a period not to exceed 5 years. The
20 carryover credit may be used in a subsequent year when the tax
21 imposed by ss. 624.509 and 624.510 for that year exceeds the
22 credit for which the insurer is eligible in that year under
23 this section.
24 (3) An expenditure by an insurer to provide any of the
25 employee fitness benefits described in paragraph (1)(a) does
26 not qualify for a credit under this section unless the benefit
27 is extended equally to all full-time employees in this state.
28 (4) ADMINISTRATION.--
29 (a) The Department of Revenue shall adopt rules and
30 forms necessary to administer this section, including rules to
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1 provide for cooperative arrangements between taxpayers and
2 not-for-profit or for-profit corporations.
3 (b) Verification of payments to a not-for-profit or
4 for-profit corporation or to a person who provides health or
5 fitness instruction to a taxpayer's employees must be in
6 writing and must be retained by the taxpayer in support of the
7 credit claimed on the tax return.
8 (c) Application for credit for payments made to
9 construct or rehabilitate a facility used for the purpose of
10 promoting the physical fitness of a taxpayer's employees in
11 this state must be submitted to the department within 6 months
12 after the construction or rehabilitation of the facility is
13 deemed to be substantially completed by the local building
14 code inspector. Application for credit for eligible
15 expenditures pursuant to paragraph (2)(a) must be submitted to
16 the department with the tax return on which the credit is
17 claimed.
18 (d) An insurer that files an amended return for a
19 taxable year is not allowed any amount of credit or credit
20 carryforward pursuant to this section in excess of the amount
21 claimed by such insurer on its original return for the taxable
22 year. The provisions of this subsection do not apply to
23 increases in the amount of credit claimed under this section
24 on an amended return due to the use of any credit amount
25 previously carried forward for the taxable year on the
26 original return or any eligible prior year under paragraph
27 (2)(f).
28 (5) EXPIRATION.--This section expires on December 31,
29 2017, except that paragraph (2)(f), which relates to carryover
30 credits, does not expire on that date.
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1 Section 5. Subsection (7) of section 624.509, Florida
2 Statutes, is amended to read:
3 624.509 Premium tax; rate and computation.--
4 (7) Credits and deductions against the tax imposed by
5 this section shall be taken in the following order: deductions
6 for assessments made pursuant to s. 440.51; credits for taxes
7 paid under ss. 175.101 and 185.08; credits for income taxes
8 paid under chapter 220, the emergency excise tax paid under
9 chapter 221, and the credit allowed under subsection (5), as
10 these credits are limited by subsection (6); employee fitness
11 tax credits authorized under s. 624.5108; and all other
12 available credits and deductions.
13 Section 6. This act shall take effect January 1, 2008,
14 and shall apply to tax years beginning on or after that date.
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17 SENATE SUMMARY
18 Provides a credit against the tax on corporate income for
certain taxpayer expenditures relating to providing
19 employee fitness facilities or supporting fitness-related
activities by employees. Defines terms. Provides the
20 order in which credits against the corporate income tax
shall be taken. Adds the amount taken as such a credit to
21 adjusted federal income. Provides a credit against the
tax on insurers for employee fitness costs, as defined in
22 the act, which are incurred by an insurer. Provides for
the order of credits against the tax on insurers.
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