HB 133

1	A bill to be entitled
2	An act relating to commercial launch zone tax incentives;
3	creating s. 220.194, F.S.; providing intent; providing
4	definitions; authorizing certain commercial spaceflight
5	businesses to take a credit against the corporate income
6	tax for certain commercial spaceflight projects;
7	specifying eligible tax credits; specifying criteria,
8	requirements, and limitations for individual tax credits;
9	establishing eligibility requirements for the tax credits;
10	allowing for the carryforward of tax credits under certain
11	circumstances; providing application and certification
12	requirements; requiring the Office of Tourism, Trade, and
13	Economic Development to determine the eligibility of
14	taxpayers; providing for the expiration and renewal of a
15	taxpayer's eligibility for tax credits; providing for
16	administration and auditing of tax credits by the
17	Department of Revenue; requiring the return and deposit of
18	tax credits under certain circumstances; requiring the
19	office to consult with Space Florida and adopt rules for
20	tax credit applications and certifications; authorizing
21	the department to adopt rules for tax administration,
22	claims and transfers of tax credits, auditing, and
23	reporting; requiring an annual report to the Governor and
24	Legislature; amending s. 14.2015, F.S.; revising the
25	duties of the office to include administration of the tax
26	credits created by the act; amending s. 213.053, F.S.;
27	providing for sharing of confidential information;
28	amending s. 220.02, F.S.; revising legislative intent
29	relating to the order for applying tax credits; amending
30	s. 220.13, F.S.; specifying that net operating losses
31	taken or transferred as corporate income tax credits may
32	not also be deducted from income; amending s. 220.16,
33	F.S.; adding the financial assistance obtained by the sale
34	of tax credits pursuant to s. 220.194, F.S., to the
35	category of nonbusiness income that must be reported;
36	providing an effective date.
37
38	Be It Enacted by the Legislature of the State of Florida:
39
40	Section 1.  Section 220.194, Florida Statutes, is created
41	to read:
42	220.194  Corporate income tax credits for commercial
43	spaceflight projects in Florida's commercial launch zone.--
44	(1)  INTENT.--The intent of this section is to create
45	incentives to attract commercial launch, payload, and other
46	commercial space business to this state.
47	(2)  DEFINITIONS.--As used in this section, the term:
48	(a)  "Commercial launch zone" means an area within
49	spaceport territory, as defined in s. 331.303(18).
50	(b)  "Certified commercial spaceflight business" means a
51	business that has been certified by the office; is registered
52	with the Secretary of State to do business in this state; and is
53	currently undertaking in this state, for nongovernmental
54	purposes only, the following activities that will eventually
55	result in a launch from a commercial launch zone: designing or
56	manufacturing a launch vehicle, reentry vehicle, or components
57	thereof; providing a launch service or reentry service; or
58	providing the payload for a launch vehicle or reentry vehicle.
59	The business may participate in more than one commercial
60	spaceflight project at a time. For the purposes of applying for
61	the tax incentives created in this section, a certified
62	commercial spaceflight business also must have:
63	1.  Created, filled, and retained at least 35 net new jobs
64	associated with an individual spaceflight project within the 3
65	calendar years prior to claiming the credit;
66	2.  Invested a total of at least $15 million in an
67	individual spaceflight project during the 3 calendar years prior
68	to claiming the credit; and
69	3.  Participated in a commercial spaceflight project that
70	resulted in a successful launch from a commercial launch zone
71	within the previous 3 years.
72	(c)  "Commercial spaceflight project" means an activity
73	performed by a certified commercial spaceflight business related
74	to the launch or reentry of a launch vehicle or reentry vehicle
75	for launches from a commercial launch zone. The term includes a
76	launch service or reentry service, and any process that
77	validates hardware or components to meet design and workmanship
78	criteria for space launch vehicles per United States Department
79	of Defense and National Aeronautics and Space Administration
80	guidelines.
81	(d)  "Launch" means to place or attempt to place a launch
82	vehicle or reentry vehicle and any payload from Earth into a
83	suborbital trajectory, into Earth orbit in outer space, or
84	otherwise into outer space.
85	(e)  "Launch service" means an activity related to the
86	preparation of a launch vehicle and any payload for launch and
87	the conduct of a launch.
88	(f)  "New job" means a full-time equivalent position that
89	is created by a certified commercial spaceflight business on or
90	after January 1, 2011, to work on a commercial spaceflight
91	project; is not held by an owner, partner, or majority
92	stockholder of the business; is not an administrative, clerical,
93	or janitorial position; and is filled by an employee. The same
94	job may not be counted more than once for the purposes of
95	claiming incentives created by this section.
96	(g)  "Office" means the Governor's Office of Tourism,
97	Trade, and Economic Development.
98	(h)  "Outer space" means an altitude of at least 50 miles
99	above the Earth's surface.
100	(i)  "Payload" means an object that a certified commercial
101	spaceflight business undertakes to place in outer space by means
102	of a launch vehicle or reentry vehicle, including components of
103	the vehicle specifically designed or adapted for the object.
104	(j)  "Reentry" means to return or attempt to return a
105	reentry vehicle and any payload from Earth orbit, or from outer
106	space, to Earth.
107	(k)  "Reentry service" means an activity related to the
108	preparation of a reentry vehicle and any payload for reentry and
109	conduct of the reentry.
110	(l)  "Spaceport territory" has the same meaning as defined
111	in s. 331.303(18).
112	(m)  "Space vehicle" means any spacecraft, satellite,
113	upper-stage, or launch vehicle system.
114	(n)  "Successful launch" means a launch that successfully
115	places a launch vehicle or reentry vehicle and any payload from
116	Earth into a suborbital trajectory, into Earth orbit in outer
117	space, or otherwise into outer space.
118	(o)  "Taxpayer" has the same meaning as defined in s.
119	220.03.
120	(3)  TAX CREDITS.--For any tax year beginning on or after
121	January 1, 2014, a certified commercial spaceflight business
122	providing or conducting commercial spaceflight projects may
123	select one of the following tax credits for which it is
124	certified:
125	(a)  Nontransferable corporate income tax credit.--A credit
126	equal to 50 percent of the net tax imposed by this chapter shall
127	be granted to a certified commercial spaceflight business. Under
128	no circumstances may the business claim this credit in any tax
129	year that exceeds its corporate income tax liability that same
130	tax year.
131	(b)  Transferable net operating loss tax credit.--The
132	certified commercial spaceflight business may convert its net
133	operating loss that has not otherwise been deducted from income
134	for Florida tax purposes to a transferable tax credit as
135	provided below.
136	1.  In addition to meeting the requirements in paragraph
137	(2)(b), the business must:
138	a.  Have incurred net operating losses in any of the
139	previous 3 calendar years; and
140	b.  Not be at least 50 percent owned or controlled,
141	directly or indirectly, by another corporation that has
142	demonstrated positive net income in any of the 3 previous years
143	of ongoing operations, or not be part of a consolidated group of
144	affiliated corporations, as filed for federal income tax
145	purposes, which in the aggregate demonstrated positive net
146	income in any of the 3 previous years of ongoing operations.
147	2.  The amount of the transferable tax credit is equal to:
148	a.  One hundred percent of the net operating losses
149	incurred by a certified commercial spaceflight business during
150	its first full year of operations.
151	b.  One hundred percent of the net operating losses
152	incurred by a certified commercial spaceflight business during
153	its second full year of operations.
154	c.  One hundred percent of the net operating losses
155	incurred by a certified commercial spaceflight business during
156	its third full year of operations.
157	3.  A certified commercial spaceflight business allowed a
158	tax credit under this paragraph may transfer all or part of a
159	transferable tax credit to any taxpayer that is subject to the
160	tax imposed by this chapter. The certified commercial
161	spaceflight business has 5 years after the date of its original
162	certification to transfer a net operating loss tax credit. The
163	transfer must be by written agreement for consideration of no
164	less than 75 percent of the credit's face value. The transferee
165	is entitled to apply the credit to the taxes owed under this
166	chapter, and may carry forward an unused credit up to 5 years.
167	Under no circumstances may the transferee claim a credit in any
168	tax year that exceeds the corporate income taxes it owes that
169	same tax year.
170	4.  The office may not approve a cumulative amount of
171	transferrable net operating loss tax credits that may result in
172	the claim of more than $50 million in tax credits during a
173	single state fiscal year. However, the potential for a taxpayer
174	to carry forward an unused tax credit may not be considered in
175	calculating the annual limit.
176	(c)  Jobs tax credit.--A credit against the tax imposed by
177	this chapter shall be granted to a certified commercial
178	spaceflight business, in an amount equal to 10 percent of the
179	annual wages subject to unemployment tax paid by the commercial
180	spaceflight business to each employee in a new job, not to
181	exceed $7,500 per employee. The credits may be applied up to the
182	amount of taxes owed under this chapter for the tax year in
183	which they are claimed. Unused credits may be carried forward
184	for up to 5 years. The office may not approve a cumulative
185	amount of jobs tax credits that may result in the claim of more
186	than $15 million in tax credits in a single state fiscal year.
187	However, the potential for a taxpayer to carry forward an unused
188	tax credit may not be considered in calculating the annual
189	limit.
190	(d)  Machinery and equipment credit.--A credit against the
191	tax imposed by this chapter shall be granted to a certified
192	commercial spaceflight business that invests a cumulative total
193	of at least $500,000 in machinery and equipment that is used for
194	a commercial spaceflight project. An investment in machinery and
195	equipment may be claimed once. The amount of the credit is equal
196	to 7.5 percent of the investment of machinery and equipment. The
197	taxpayer may only claim a credit not exceeding 50 percent of the
198	taxpayer's tax liability in the year in which it is claimed. If
199	credit granted under this paragraph is not fully used in any one
200	tax year because of insufficient tax liability, the unused
201	amount may be carried forward for up to 5 years.
202	(4)  ADMINISTRATION.--
203	(a)  Unless transferred as provided in paragraph (3)(b),
204	credits awarded under this section may be granted only against
205	the corporate income tax liability generated by or arising out
206	of a commercial spaceflight project, as documented in the
207	business's annual audit prepared by a certified public
208	accountant licensed to do business in this state and verified by
209	the office.
210	(b)  Certified spaceflight businesses may not file
211	consolidated returns for the purposes of claiming the tax
212	incentives described paragraphs (3)(a)-(d).
213	(c)  It is the responsibility of the certified commercial
214	spaceflight business or transferee to demonstrate to the
215	office's and the department's satisfaction that it is eligible
216	for credit under this section.
217	(5)  APPLICATION AND CERTIFICATION.--To claim tax credits
218	under this section, a commercial spaceflight business must
219	submit a certification application to Space Florida for review.
220	The application must include the following information, along
221	with a $250 nonrefundable fee:
222	(a)  The name and physical Florida address of the taxpayer.
223	(b)  Documentation that the taxpayer is a commercial
224	spaceflight business.
225	(c)  Documentation of the business's current commercial
226	spaceflight project and any other information it will need to
227	qualify for the tax credits, where applicable.
228	(d)  The total amount and types of credits sought.
229	(e)  The amount of transferable tax credits to be
230	transferred, if any; when the business expects to transfer them;
231	and the name and address of the recipient taxpayer or taxpayers.
232	(f)  A copy of an audit or audits of the pertinent tax
233	years prepared by a certified public accountant licensed to
234	practice in this state, that specifies, if applicable, that
235	portion of the business's activities related to commercial
236	spaceflight projects.
237	(g)  An acknowledgement that it must file an annual report
238	on the project's progress with Space Florida and the office.
239	(h)  Any other information necessary to demonstrate that
240	the applicant meets the job creation, investment, and other
241	requirements of this section.
242
243	Within 60 days after receipt of the application, the executive
244	staff of Space Florida shall evaluate the application and
245	recommend it for certification or denial of certification by the
246	office. The executive director of the office has 30 days
247	following receipt of Space Florida's recommendation to approve
248	or deny the application. The office shall provide a letter of
249	certification to the applicant, if approved. If the office
250	denies any part of the application, it shall inform the
251	applicant of the grounds for the denial. A copy of the
252	certification shall be submitted to the department within 10
253	days after the executive director's decision.
254	(6)  COMMERCIAL SPACEFLIGHT BUSINESS; EXPIRATION OF
255	ELIGIBILITY FOR TAX CREDITS; RENEWAL.--Eligibility of a
256	certified commercial spaceflight business for credits under this
257	section shall expire 10 years after the executive director of
258	the office certifies that the commercial spaceflight business is
259	eligible for the credit program, or 10 years after the business'
260	last successful launch of its commercial spaceflight project,
261	whichever occurs later. A certified commercial spaceflight
262	business whose eligibility expires under this subsection may
263	renew its eligibility for another 10 years, upon a successful
264	launch that results from its commercial spaceflight project.
265	(7)  ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF
266	CREDITS.--
267	(a)  In addition to its existing audit and investigative
268	authority, the department may perform any additional financial
269	and technical audits and investigations, including examining the
270	accounts, books, and financial records of the tax credit
271	applicant, which are necessary to verify the eligible costs
272	included in the tax credit return and to ensure compliance with
273	this section. The office shall provide technical assistance when
274	requested by the department on any technical audits or
275	examinations performed under this subsection.
276	(b)  It is grounds for forfeiture of previously claimed and
277	received tax credits if the department determines, as a result
278	of an audit or examination, or from information received from
279	the office, that a certified commercial spaceflight business, or
280	in the case of transferred tax credits a taxpayer, received tax
281	credits under this section to which the certified commercial
282	spaceflight business or taxpayer was not entitled. The certified
283	commercial spaceflight business or taxpayer is responsible for
284	returning forfeited tax credits to the department, and any
285	returned funds shall be deposited in the state's General Revenue
286	Fund.
287	(c)  The certified commercial spaceflight business must
288	repay the credit amount claimed or transferred if its net
289	operating loss is adjusted by amendment or as a result of any
290	other recomputation or redetermination of federal or Florida
291	taxable income or loss. The certified commercial spaceflight
292	business also is liable for a penalty equal to the amount of the
293	credit claimed or transferred, reduced in proportion to the
294	amount of the net operating loss certified for transfer over the
295	amount of the certified net operating loss disallowed. The
296	applicant and its successors shall maintain all records
297	necessary to support the reported net operating loss.
298	(d)  The office may revoke or modify any written decision
299	granting eligibility for tax credits under this section if it is
300	discovered that the certified commercial spaceflight business
301	submitted any false statement, representation, or certification
302	in any application, record, report, plan, or other document
303	filed in an attempt to receive tax credits under this section.
304	The office shall immediately notify the department of any
305	revoked or modified orders affecting previously granted tax
306	credits. Additionally, the certified commercial spaceflight
307	business must notify the department of any change in its tax
308	credit claimed.
309	(e)  The certified commercial spaceflight business shall
310	file with the department an amended return or other report as
311	the department prescribes by rule and shall pay any required tax
312	and interest within 60 days after the certified commercial
313	spaceflight business receives notification from the office that
314	previously approved tax credits have been revoked or modified.
315	If the revocation or modification order is contested, the
316	certified commercial spaceflight business shall file an amended
317	return or other report as provided in this paragraph within 60
318	days after a final order is issued following proceedings.
319	(f)  The department may assess additional tax, penalty, and
320	interest as permitted by s. 95.091.
321	(8)  RULES.--
322	(a)  The office, in consultation with Space Florida, shall
323	adopt rules under ss. 120.536(1) and 120.54 to administer this
324	section, including rules relating to the certification forms for
325	commercial spaceflight businesses to complete, and the
326	application and certification procedures, guidelines, and
327	requirements necessary to administer this section.
328	(b)  The department may adopt rules under ss. 120.536(1)
329	and 120.54 to administer this section, including rules relating
330	to:
331	1.  The forms required to claim a tax credit under this
332	section, the requirements and basis for establishing an
333	entitlement to a credit, and the examination and audit
334	procedures required to administer this section.
335	2.  The implementation and administration of the provisions
336	allowing a transfer of a net operating loss as a tax credit,
337	including rules prescribing forms, reporting requirements, and
338	specific procedures, guidelines, and requirements necessary to
339	perform the transfer.
340	3.  The minimum portion of the credit that is available for
341	transfer.
342	(9)  ANNUAL REPORT.--The office, in cooperation with Space
343	Florida and the department, shall submit an annual report of the
344	commercial launch zone incentive program's activities to the
345	Governor, the President of the Senate, and the Speaker of the
346	House of Representatives by November 30 of each year, beginning
347	in 2014.
348	Section 2.  Paragraph (f) of subsection (2) of section
349	14.2015, Florida Statutes, is amended to read:
350	14.2015  Office of Tourism, Trade, and Economic
351	Development; creation; powers and duties.--
352	(2)  The purpose of the Office of Tourism, Trade, and
353	Economic Development is to assist the Governor in working with
354	the Legislature, state agencies, business leaders, and economic
355	development professionals to formulate and implement coherent
356	and consistent policies and strategies designed to provide
357	economic opportunities for all Floridians. To accomplish such
358	purposes, the Office of Tourism, Trade, and Economic Development
359	shall:
360	(f)1.  Administer the Florida Enterprise Zone Act under ss.
361	290.001-290.016, the community contribution tax credit program
362	under ss. 220.183 and 624.5105, the tax refund program for
363	qualified target industry businesses under s. 288.106, the tax-
364	refund program for qualified defense contractors and space
365	flight business contractors under s. 288.1045, contracts for
366	transportation projects under s. 288.063, the sports franchise
367	facility program under s. 288.1162, the professional golf hall
368	of fame facility program under s. 288.1168, the expedited
369	permitting process under s. 403.973, the Rural Community
370	Development Revolving Loan Fund under s. 288.065, the Regional
371	Rural Development Grants Program under s. 288.018, the Certified
372	Capital Company Act under s. 288.99, the Florida State Rural
373	Development Council, the Rural Economic Development Initiative,
374	the corporate income tax credits for commercial spaceflight
375	projects under s. 220.194, and other programs that are
376	specifically assigned to the office by law, by the
377	appropriations process, or by the Governor. Notwithstanding any
378	other provisions of law, the office may expend interest earned
379	from the investment of program funds deposited in the Grants and
380	Donations Trust Fund to contract for the administration of the
381	programs, or portions of the programs, enumerated in this
382	paragraph or assigned to the office by law, by the
383	appropriations process, or by the Governor. Such expenditures
384	shall be subject to review under chapter 216.
385	2.  The office may enter into contracts in connection with
386	the fulfillment of its duties concerning the Florida First
387	Business Bond Pool under chapter 159, tax incentives under
388	chapters 212 and 220, tax incentives under the Certified Capital
389	Company Act in chapter 288, foreign offices under chapter 288,
390	the Enterprise Zone program under chapter 290, the Seaport
391	Employment Training program under chapter 311, the Florida
392	Professional Sports Team License Plates under chapter 320,
393	Spaceport Florida under chapter 331, Expedited Permitting under
394	chapter 403, and in carrying out other functions that are
395	specifically assigned to the office by law, by the
396	appropriations process, or by the Governor.
397	Section 3.  Paragraph (z) is added to subsection (8) of
398	section 213.053, Florida Statutes, to read:
399	213.053  Confidentiality and information sharing.--
400	(8)  Notwithstanding any other provision of this section,
401	the department may provide:
402	(z)  Information relative to tax credits taken under s.
403	220.194 to the Office of Tourism, Trade, and Economic
404	Development or to Space Florida.
405
406	Disclosure of information under this subsection shall be
407	pursuant to a written agreement between the executive director
408	and the agency. Such agencies, governmental or nongovernmental,
409	shall be bound by the same requirements of confidentiality as
410	the Department of Revenue. Breach of confidentiality is a
411	misdemeanor of the first degree, punishable as provided by s.
412	775.082 or s. 775.083.
413	Section 4.  Subsection (8) of section 220.02, Florida
414	Statutes, is amended to read:
415	220.02  Legislative intent.--
416	(8)  It is the intent of the Legislature that credits
417	against either the corporate income tax or the franchise tax be
418	applied in the following order: those enumerated in s. 631.828,
419	those enumerated in s. 220.191, those enumerated in s. 220.181,
420	those enumerated in s. 220.183, those enumerated in s. 220.182,
421	those enumerated in s. 220.1895, those enumerated in s. 221.02,
422	those enumerated in s. 220.184, those enumerated in s. 220.186,
423	those enumerated in s. 220.1845, those enumerated in s. 220.19,
424	those enumerated in s. 220.185, those enumerated in s. 220.187,
425	those enumerated in s. 220.192, those enumerated in s. 220.193,
426	and those enumerated in s. 288.9916, and those enumerated in s.
427	220.194.
428	Section 5.  Paragraphs (a) and (b) of subsection (1) of
429	section 220.13, Florida Statutes, are amended to read:
430	220.13  "Adjusted federal income" defined.--
431	(1)  The term "adjusted federal income" means an amount
432	equal to the taxpayer's taxable income as defined in subsection
433	(2), or such taxable income of more than one taxpayer as
434	provided in s. 220.131, for the taxable year, adjusted as
435	follows:
436	(a)  Additions.--There shall be added to such taxable
437	income:
438	1.  The amount of any tax upon or measured by income,
439	excluding taxes based on gross receipts or revenues, paid or
440	accrued as a liability to the District of Columbia or any state
441	of the United States which is deductible from gross income in
442	the computation of taxable income for the taxable year.
443	2.  The amount of interest which is excluded from taxable
444	income under s. 103(a) of the Internal Revenue Code or any other
445	federal law, less the associated expenses disallowed in the
446	computation of taxable income under s. 265 of the Internal
447	Revenue Code or any other law, excluding 60 percent of any
448	amounts included in alternative minimum taxable income, as
449	defined in s. 55(b)(2) of the Internal Revenue Code, if the
450	taxpayer pays tax under s. 220.11(3).
451	3.  In the case of a regulated investment company or real
452	estate investment trust, an amount equal to the excess of the
453	net long-term capital gain for the taxable year over the amount
454	of the capital gain dividends attributable to the taxable year.
455	4.  That portion of the wages or salaries paid or incurred
456	for the taxable year which is equal to the amount of the credit
457	allowable for the taxable year under s. 220.181. This
458	subparagraph shall expire on the date specified in s. 290.016
459	for the expiration of the Florida Enterprise Zone Act.
460	5.  That portion of the ad valorem school taxes paid or
461	incurred for the taxable year which is equal to the amount of
462	the credit allowable for the taxable year under s. 220.182. This
463	subparagraph shall expire on the date specified in s. 290.016
464	for the expiration of the Florida Enterprise Zone Act.
465	6.  The amount of emergency excise tax paid or accrued as a
466	liability to this state under chapter 221 which tax is
467	deductible from gross income in the computation of taxable
468	income for the taxable year.
469	7.  That portion of assessments to fund a guaranty
470	association incurred for the taxable year which is equal to the
471	amount of the credit allowable for the taxable year.
472	8.  In the case of a nonprofit corporation which holds a
473	pari-mutuel permit and which is exempt from federal income tax
474	as a farmers' cooperative, an amount equal to the excess of the
475	gross income attributable to the pari-mutuel operations over the
476	attributable expenses for the taxable year.
477	9.  The amount taken as a credit for the taxable year under
478	s. 220.1895.
479	10.  Up to nine percent of the eligible basis of any
480	designated project which is equal to the credit allowable for
481	the taxable year under s. 220.185.
482	11.  The amount taken as a credit for the taxable year
483	under s. 220.187.
484	12.  The amount taken as a credit for the taxable year
485	under s. 220.192.
486	13.  The amount taken as a credit for the taxable year
487	under s. 220.193.
488	14.  Any portion of a qualified investment, as defined in
489	s. 288.9913, which is claimed as a deduction by the taxpayer and
490	taken as a credit against income tax pursuant to s. 288.9916.
491	15.  The amount taken as a credit for the taxable year
492	under s. 220.194.
493	(b)  Subtractions.--
494	1.  There shall be subtracted from such taxable income:
495	a.  The net operating loss deduction allowable for federal
496	income tax purposes under s. 172 of the Internal Revenue Code
497	for the taxable year,
498	b.  The net capital loss allowable for federal income tax
499	purposes under s. 1212 of the Internal Revenue Code for the
500	taxable year, except that any net operating loss taken as a
501	credit to corporate income taxes owed or that is transferred,
502	pursuant to s. 220.194(3)(b), may not be deducted by the seller,
503	c.  The excess charitable contribution deduction allowable
504	for federal income tax purposes under s. 170(d)(2) of the
505	Internal Revenue Code for the taxable year, and
506	d.  The excess contributions deductions allowable for
507	federal income tax purposes under s. 404 of the Internal Revenue
508	Code for the taxable year.
509
510	However, a net operating loss and a capital loss shall never be
511	carried back as a deduction to a prior taxable year, but all
512	deductions attributable to such losses shall be deemed net
513	operating loss carryovers and capital loss carryovers,
514	respectively, and treated in the same manner, to the same
515	extent, and for the same time periods as are prescribed for such
516	carryovers in ss. 172 and 1212, respectively, of the Internal
517	Revenue Code.
518	2.  There shall be subtracted from such taxable income any
519	amount to the extent included therein the following:
520	a.  Dividends treated as received from sources without the
521	United States, as determined under s. 862 of the Internal
522	Revenue Code.
523	b.  All amounts included in taxable income under s. 78 or
524	s. 951 of the Internal Revenue Code.
525
526	However, as to any amount subtracted under this subparagraph,
527	there shall be added to such taxable income all expenses
528	deducted on the taxpayer's return for the taxable year which are
529	attributable, directly or indirectly, to such subtracted amount.
530	Further, no amount shall be subtracted with respect to dividends
531	paid or deemed paid by a Domestic International Sales
532	Corporation.
533	3.  In computing "adjusted federal income" for taxable
534	years beginning after December 31, 1976, there shall be allowed
535	as a deduction the amount of wages and salaries paid or incurred
536	within this state for the taxable year for which no deduction is
537	allowed pursuant to s. 280C(a) of the Internal Revenue Code
538	(relating to credit for employment of certain new employees).
539	4.  There shall be subtracted from such taxable income any
540	amount of nonbusiness income included therein, including
541	payments received for a tax credit pursuant to s. 220.194(3)(b).
542	5.  There shall be subtracted any amount of taxes of
543	foreign countries allowable as credits for taxable years
544	beginning on or after September 1, 1985, under s. 901 of the
545	Internal Revenue Code to any corporation which derived less than
546	20 percent of its gross income or loss for its taxable year
547	ended in 1984 from sources within the United States, as
548	described in s. 861(a)(2)(A) of the Internal Revenue Code, not
549	including credits allowed under ss. 902 and 960 of the Internal
550	Revenue Code, withholding taxes on dividends within the meaning
551	of sub-subparagraph 2.a., and withholding taxes on royalties,
552	interest, technical service fees, and capital gains.
553	6.  Notwithstanding any other provision of this code,
554	except with respect to amounts subtracted pursuant to
555	subparagraphs 1. and 3., any increment of any apportionment
556	factor which is directly related to an increment of gross
557	receipts or income which is deducted, subtracted, or otherwise
558	excluded in determining adjusted federal income shall be
559	excluded from both the numerator and denominator of such
560	apportionment factor. Further, all valuations made for
561	apportionment factor purposes shall be made on a basis
562	consistent with the taxpayer's method of accounting for federal
563	income tax purposes.
564	Section 6.  Subsection (5) is added to section 220.16,
565	Florida Statutes, to read:
566	220.16  Allocation of nonbusiness income.--Nonbusiness
567	income shall be allocated as follows:
568	(5)  The amount of payments received in exchange for
569	transferring a net operating loss as authorized by s. 220.194 is
570	allocable to this state.
571	Section 7.  This act shall take effect January 1, 2011, and
572	credits created herein may be claimed in the tax year beginning
573	on or after January 1, 2014.

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