| 1 | A bill to be entitled |
| 2 | An act relating to tax credits; amending s. 220.02, F.S.; |
| 3 | revising the priority of tax credits that may be taken |
| 4 | against the corporate income tax or the franchise tax; |
| 5 | amending s. 220.13, F.S.; redefining the term "adjusted |
| 6 | federal income" to include the amount of certain tax |
| 7 | credits; creating s. 220.1811, F.S.; authorizing |
| 8 | aerospace-sector jobs tax credits and tuition |
| 9 | reimbursement tax credits; defining terms; authorizing a |
| 10 | tax credit to aerospace businesses based on the salary or |
| 11 | tuition reimbursed to certain employees; specifying the |
| 12 | maximum annual amount of tax credits for an aerospace |
| 13 | business; limiting the annual amount of tax credits |
| 14 | available; prohibiting a business from claiming an |
| 15 | aerospace-sector jobs tax credit and a tuition |
| 16 | reimbursement tax credit for the same employee; providing |
| 17 | for the Department of Revenue to approve applications for |
| 18 | tax credits; prohibiting increases in the amount of unused |
| 19 | tax credits carried over in amended tax returns; providing |
| 20 | fines and criminal penalties for certain unlawful claims |
| 21 | of tax credits; authorizing the Department of Revenue to |
| 22 | adopt rules; providing for the expiration of the tax |
| 23 | credit program; providing for applicability; providing an |
| 24 | effective date. |
| 25 |
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| 26 | Be It Enacted by the Legislature of the State of Florida: |
| 27 |
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| 28 | Section 1. Subsection (8) of section 220.02, Florida |
| 29 | Statutes, is amended to read: |
| 30 | 220.02 Legislative intent.- |
| 31 | (8) It is the intent of the Legislature that Credits |
| 32 | against either the corporate income tax or the franchise tax |
| 33 | shall be applied in the following order: those enumerated in s. |
| 34 | 631.828, those enumerated in s. 220.191, those enumerated in s. |
| 35 | 220.181, those enumerated in s. 220.183, those enumerated in s. |
| 36 | 220.182, those enumerated in s. 220.1895, those enumerated in s. |
| 37 | 221.02, those enumerated in s. 220.184, those enumerated in s. |
| 38 | 220.186, those enumerated in s. 220.1845, those enumerated in s. |
| 39 | 220.19, those enumerated in s. 220.185, those enumerated in s. |
| 40 | 220.187, those enumerated in s. 220.192, those enumerated in s. |
| 41 | 220.193, and those enumerated in s. 288.9916, and those |
| 42 | enumerated in s. 220.1811. |
| 43 | Section 2. Paragraph (a) of subsection (1) of section |
| 44 | 220.13, Florida Statutes, is amended to read: |
| 45 | 220.13 "Adjusted federal income" defined.- |
| 46 | (1) The term "adjusted federal income" means an amount |
| 47 | equal to the taxpayer's taxable income as defined in subsection |
| 48 | (2), or such taxable income of more than one taxpayer as |
| 49 | provided in s. 220.131, for the taxable year, adjusted as |
| 50 | follows: |
| 51 | (a) Additions.-There shall be added to such taxable |
| 52 | income: |
| 53 | 1. The amount of any tax upon or measured by income, |
| 54 | excluding taxes based on gross receipts or revenues, paid or |
| 55 | accrued as a liability to the District of Columbia or any state |
| 56 | of the United States which is deductible from gross income in |
| 57 | the computation of taxable income for the taxable year. |
| 58 | 2. The amount of interest which is excluded from taxable |
| 59 | income under s. 103(a) of the Internal Revenue Code or any other |
| 60 | federal law, less the associated expenses disallowed in the |
| 61 | computation of taxable income under s. 265 of the Internal |
| 62 | Revenue Code or any other law, excluding 60 percent of any |
| 63 | amounts included in alternative minimum taxable income, as |
| 64 | defined in s. 55(b)(2) of the Internal Revenue Code, if the |
| 65 | taxpayer pays tax under s. 220.11(3). |
| 66 | 3. In the case of a regulated investment company or real |
| 67 | estate investment trust, an amount equal to the excess of the |
| 68 | net long-term capital gain for the taxable year over the amount |
| 69 | of the capital gain dividends attributable to the taxable year. |
| 70 | 4. That portion of the wages or salaries paid or incurred |
| 71 | for the taxable year which is equal to the amount of the credit |
| 72 | allowable for the taxable year under s. 220.181. This |
| 73 | subparagraph shall expire on the date specified in s. 290.016 |
| 74 | for the expiration of the Florida Enterprise Zone Act. |
| 75 | 5. That portion of the ad valorem school taxes paid or |
| 76 | incurred for the taxable year which is equal to the amount of |
| 77 | the credit allowable for the taxable year under s. 220.182. This |
| 78 | subparagraph shall expire on the date specified in s. 290.016 |
| 79 | for the expiration of the Florida Enterprise Zone Act. |
| 80 | 6. The amount of emergency excise tax paid or accrued as a |
| 81 | liability to this state under chapter 221 which tax is |
| 82 | deductible from gross income in the computation of taxable |
| 83 | income for the taxable year. |
| 84 | 7. That portion of assessments to fund a guaranty |
| 85 | association incurred for the taxable year which is equal to the |
| 86 | amount of the credit allowable for the taxable year. |
| 87 | 8. In the case of a nonprofit corporation that which holds |
| 88 | a pari-mutuel permit and which is exempt from federal income tax |
| 89 | as a farmers' cooperative, an amount equal to the excess of the |
| 90 | gross income attributable to the pari-mutuel operations over the |
| 91 | attributable expenses for the taxable year. |
| 92 | 9. The amount taken as a credit for the taxable year under |
| 93 | s. 220.1895. |
| 94 | 10. Up to nine percent of the eligible basis of any |
| 95 | designated project which is equal to the credit allowable for |
| 96 | the taxable year under s. 220.185. |
| 97 | 11. The amount taken as a credit for the taxable year |
| 98 | under s. 220.187. |
| 99 | 12. The amount taken as a credit for the taxable year |
| 100 | under s. 220.192. |
| 101 | 13. The amount taken as a credit for the taxable year |
| 102 | under s. 220.193. |
| 103 | 14. Any portion of a qualified investment, as defined in |
| 104 | s. 288.9913, which is claimed as a deduction by the taxpayer and |
| 105 | taken as a credit against income tax pursuant to s. 288.9916. |
| 106 | 15. The amount taken as a credit for the taxable year |
| 107 | under s. 220.1811. |
| 108 | Section 3. Section 220.1811, Florida Statutes, is created |
| 109 | to read: |
| 110 | 220.1811 Aerospace-sector jobs tax credit and tuition |
| 111 | reimbursement tax credit.- |
| 112 | (1) DEFINITIONS.-As used in this section, the term: |
| 113 | (a) "Aerospace business" means a business located in this |
| 114 | state which is engaged in the aerospace industry, as defined in |
| 115 | s. 331.303. |
| 116 | (b) "Qualified employee" means a resident of this state |
| 117 | who: |
| 118 | 1. Is first employed or reemployed by an aerospace |
| 119 | business on or after January 1, 2011; |
| 120 | 2. Received an undergraduate or graduate degree from a |
| 121 | college or university that is accredited by a national |
| 122 | accrediting body; a technical degree or certification related to |
| 123 | aerospace from a technical training institution; or completed an |
| 124 | aerospace development workforce training program coordinated by |
| 125 | Workforce Florida, Inc.; |
| 126 | 3. Is not an owner, partner, or majority stockholder of an |
| 127 | aerospace business; and |
| 128 | 4. Is employed for at least 6 months. |
| 129 | (c) "Tuition reimbursed to a qualified employee" means a |
| 130 | lump-sum payment by an aerospace business to a qualified |
| 131 | employee, which may not exceed the average annual tuition, as |
| 132 | reported by the Board of Governors of the State University |
| 133 | System, for a Florida resident who is a full-time undergraduate |
| 134 | student enrolled in a public college or university. The term |
| 135 | does not include the cost of books, fees, or room and board. |
| 136 | (2) AEROSPACE-SECTOR JOBS TAX CREDIT.- |
| 137 | (a) A credit against the tax imposed under this chapter |
| 138 | may be claimed by an aerospace business for compensation paid to |
| 139 | a qualified employee. |
| 140 | (b) The credit authorized by this subsection shall equal |
| 141 | 10 percent of the compensation paid for the first through fifth |
| 142 | years of employment in this state by an aerospace business. |
| 143 | (c) The credit authorized by this subsection may not |
| 144 | exceed $12,500 annually for each qualified employee. |
| 145 | (d) This credit applies only with respect to wages subject |
| 146 | to unemployment tax. |
| 147 | (e) If the credit is not fully used in any one year, the |
| 148 | unused amount may be carried forward for a period not to exceed |
| 149 | 5 years. The carryover credit may be used in a subsequent year |
| 150 | if the tax imposed by this chapter for such year exceeds the |
| 151 | credit for such year after applying the other credits and unused |
| 152 | credit carryovers in the order provided in s. 220.02(8). |
| 153 | (3) TUITION REIMBURSEMENT TAX CREDIT.- |
| 154 | (a) A credit against the tax imposed under this chapter |
| 155 | may be claimed by an aerospace business for 50 percent of |
| 156 | tuition reimbursed to a qualified employee in a tax year. |
| 157 | (b) The credit may be claimed only if the qualified |
| 158 | employee was awarded an undergraduate or graduate degree, a |
| 159 | technical certification, or a certification from a training |
| 160 | program offered by Workforce Florida, Inc., within 1 year after |
| 161 | commencing employment with the business requesting the credit, |
| 162 | and may be claimed within 4 years after employment of the |
| 163 | qualified employee. |
| 164 | (c) If this credit is not fully used in any one year, the |
| 165 | unused amount may be carried forward for a period not to exceed |
| 166 | 5 years. The carryover credit may be used in a subsequent year |
| 167 | if the tax imposed under this chapter for such year exceeds the |
| 168 | credit for such year after applying the other credits and unused |
| 169 | credit carryovers in the order provided in s. 220.02(8). |
| 170 | (4) MAXIMUM CREDITS FOR AN AEROSPACE BUSINESS.-The maximum |
| 171 | amount of credits under this section which may be claimed by any |
| 172 | single aerospace business in a calendar year is $200,000. |
| 173 | (5) ANNUAL LIMIT ON TAX CREDITS.-The total amount of |
| 174 | credits that may be granted under this section is $2 million in |
| 175 | any calendar year. A credit that is claimed after the $2 million |
| 176 | limit is reached shall be disallowed. |
| 177 | (6) DUPLICATION OF TAX CREDITS.-A business may not claim |
| 178 | an aerospace-sector jobs tax credit and a tuition reimbursement |
| 179 | tax credit for the same qualified employee. |
| 180 | (7) APPLICATION FOR TAX CREDITS.- |
| 181 | (a) An aerospace business must apply to the department for |
| 182 | authorization to claim an aerospace-sector jobs tax credit or a |
| 183 | tuition reimbursement tax credit. The application must be filed |
| 184 | under oath and include: |
| 185 | 1. The name and address of the business and documentation |
| 186 | that the business is an aerospace business. |
| 187 | 2. For each employee for which a tax credit is sought: |
| 188 | a. The employee's name and documentation that the employee |
| 189 | is a qualified employee. |
| 190 | b. The salary or hourly wages, including the hourly wages |
| 191 | subject to unemployment tax paid to the qualified employee. |
| 192 | c. The location of the community college, college, |
| 193 | university, technical institution, or training program offered |
| 194 | by Workforce Florida, Inc., from which the qualified employee |
| 195 | received his or her degree or certification. |
| 196 | d. A statement as to whether the applicant is seeking an |
| 197 | aerospace-sector jobs tax credit or a tuition reimbursement tax |
| 198 | credit. |
| 199 | (b) The applicant for a tax credit has the burden of |
| 200 | demonstrating to the satisfaction of the department that it |
| 201 | meets the requirements of this section. |
| 202 | (8) LIMITS ON THE CARRY OVER OF TAX CREDITS.-An aerospace |
| 203 | business may not carry over more tax credits in an amended |
| 204 | return than were claimed on the original return for the taxable |
| 205 | year. This subsection does not limit increases in the amount of |
| 206 | credit claimed on an amended return due to the use of any credit |
| 207 | amount previously carried over pursuant to paragraph (2)(e) or |
| 208 | paragraph (3)(c). |
| 209 | (9) PENALTIES.- |
| 210 | (a) Any person who fraudulently claims this credit is |
| 211 | liable for repayment of the credit, plus a mandatory penalty in |
| 212 | the amount of 200 percent of the credit, plus interest at the |
| 213 | rate provided in s. 220.807, and commits a felony of the third |
| 214 | degree, punishable as provided in s. 775.082, s. 775.083, or s. |
| 215 | 775.084. |
| 216 | (b) Any person who makes an underpayment of tax as a |
| 217 | result of a grossly overstated claim for this credit commits a |
| 218 | felony of the third degree, punishable as provided in s. |
| 219 | 775.082, s. 775.083, or s. 775.084. As used in this paragraph, |
| 220 | the term "grossly overstated claim" means a claim in an amount |
| 221 | in excess of 100 percent of the amount of credit allowable under |
| 222 | this section. |
| 223 | (10) RULEMAKING.-The department may adopt rules to |
| 224 | prescribe any necessary forms required to claim a tax credit |
| 225 | under this section and to provide guidelines and procedures |
| 226 | required to administer this section. |
| 227 | (11) EXPIRATION.-This section, except paragraphs (2)(e) |
| 228 | and (3)(c) and subsection (8), expires December 31, 2020. An |
| 229 | aerospace business may not claim a new tax credit under this |
| 230 | section after that date. However, an aerospace business may |
| 231 | claim tax credits carried over pursuant to paragraph (2)(e) or |
| 232 | paragraph (3)(c). |
| 233 | Section 4. This act shall take effect January 1, 2011, and |
| 234 | applies to tax years beginning on or after that date. |