HB 1223

1	A bill to be entitled
2	An act relating to corporate income taxes; amending s.
3	220.13, F.S.; limiting deductions of certain intangible
4	expenses, licensing fees, and management fees paid by a
5	taxpayer to a related entity; creating exceptions to the
6	limitations on deductions; requiring the adjustment of the
7	income of a related entity under certain circumstances;
8	limiting the number of times certain items may be added or
9	subtracted from taxable income; specifying information
10	relating to transactions with related entities which must
11	be contained in a corporate income tax return; providing
12	that the failure of a taxpayer to add certain amounts to a
13	taxpayer's income or to provide complete information in a
14	tax return is negligence for which a penalty may be
15	imposed; authorizing the Department of Revenue to adopt
16	rules; specifying the applicability of the act; providing
17	an effective date.
18
19	Be It Enacted by the Legislature of the State of Florida:
20
21	Section 1.  Section 220.13, Florida Statutes, is amended to
22	read:
23	220.13  "Adjusted federal income" defined; transactions
24	with related entities.-
25	(1)  ADJUSTMENTS TO TAXABLE INCOME.-The term "adjusted
26	federal income" means an amount equal to the taxpayer's taxable
27	income as defined in subsection (2), or such taxable income of
28	more than one taxpayer as provided in s. 220.131, for the
29	taxable year, adjusted as follows:
30	(a)  Additions.-There shall be added to such taxable
31	income:
32	1.  The amount of any tax upon or measured by income,
33	excluding taxes based on gross receipts or revenues, paid or
34	accrued as a liability to the District of Columbia or any state
35	of the United States which is deductible from gross income in
36	the computation of taxable income for the taxable year.
37	2.  The amount of interest which is excluded from taxable
38	income under s. 103(a) of the Internal Revenue Code or any other
39	federal law, less the associated expenses disallowed in the
40	computation of taxable income under s. 265 of the Internal
41	Revenue Code or any other law, excluding 60 percent of any
42	amounts included in alternative minimum taxable income, as
43	defined in s. 55(b)(2) of the Internal Revenue Code, if the
44	taxpayer pays tax under s. 220.11(3).
45	3.  In the case of a regulated investment company or real
46	estate investment trust, an amount equal to the excess of the
47	net long-term capital gain for the taxable year over the amount
48	of the capital gain dividends attributable to the taxable year.
49	4.  That portion of the wages or salaries paid or incurred
50	for the taxable year which is equal to the amount of the credit
51	allowable for the taxable year under s. 220.181. This
52	subparagraph shall expire on the date specified in s. 290.016
53	for the expiration of the Florida Enterprise Zone Act.
54	5.  That portion of the ad valorem school taxes paid or
55	incurred for the taxable year which is equal to the amount of
56	the credit allowable for the taxable year under s. 220.182. This
57	subparagraph shall expire on the date specified in s. 290.016
58	for the expiration of the Florida Enterprise Zone Act.
59	6.  The amount of emergency excise tax paid or accrued as a
60	liability to this state under chapter 221 which tax is
61	deductible from gross income in the computation of taxable
62	income for the taxable year.
63	7.  That portion of assessments to fund a guaranty
64	association incurred for the taxable year which is equal to the
65	amount of the credit allowable for the taxable year.
66	8.  In the case of a nonprofit corporation that which holds
67	a pari-mutuel permit and which is exempt from federal income tax
68	as a farmers' cooperative, an amount equal to the excess of the
69	gross income attributable to the pari-mutuel operations over the
70	attributable expenses for the taxable year.
71	9.  The amount taken as a credit for the taxable year under
72	s. 220.1895.
73	10.  Up to nine percent of the eligible basis of any
74	designated project which is equal to the credit allowable for
75	the taxable year under s. 220.185.
76	11.  The amount taken as a credit for the taxable year
77	under s. 220.1875. The addition in this subparagraph is intended
78	to ensure that the same amount is not allowed for the tax
79	purposes of this state as both a deduction from income and a
80	credit against the tax. This addition is not intended to result
81	in adding the same expense back to income more than once.
82	12.  The amount taken as a credit for the taxable year
83	under s. 220.192.
84	13.  The amount taken as a credit for the taxable year
85	under s. 220.193.
86	14.  Any portion of a qualified investment, as defined in
87	s. 288.9913, which is claimed as a deduction by the taxpayer and
88	taken as a credit against income tax pursuant to s. 288.9916.
89	15.  The costs to acquire a tax credit pursuant to s.
90	288.1254(5) which that are deducted from or otherwise reduce
91	federal taxable income for the taxable year.
92	(b)  Subtractions.-
93	1.  There shall be subtracted from such taxable income:
94	a.  The net operating loss deduction allowable for federal
95	income tax purposes under s. 172 of the Internal Revenue Code
96	for the taxable year,
97	b.  The net capital loss allowable for federal income tax
98	purposes under s. 1212 of the Internal Revenue Code for the
99	taxable year,
100	c.  The excess charitable contribution deduction allowable
101	for federal income tax purposes under s. 170(d)(2) of the
102	Internal Revenue Code for the taxable year, and
103	d.  The excess contributions deductions allowable for
104	federal income tax purposes under s. 404 of the Internal Revenue
105	Code for the taxable year.
106
107	However, a net operating loss and a capital loss shall never be
108	carried back as a deduction to a prior taxable year, but all
109	deductions attributable to such losses shall be deemed net
110	operating loss carryovers and capital loss carryovers,
111	respectively, and treated in the same manner, to the same
112	extent, and for the same time periods as are prescribed for such
113	carryovers in ss. 172 and 1212, respectively, of the Internal
114	Revenue Code.
115	2.  There shall be subtracted from such taxable income any
116	amount to the extent included therein the following:
117	a.  Dividends treated as received from sources without the
118	United States, as determined under s. 862 of the Internal
119	Revenue Code.
120	b.  All amounts included in taxable income under s. 78 or
121	s. 951 of the Internal Revenue Code.
122
123	However, as to any amount subtracted under this subparagraph,
124	there shall be added to such taxable income all expenses
125	deducted on the taxpayer's return for the taxable year which are
126	attributable, directly or indirectly, to such subtracted amount.
127	Further, no amount shall be subtracted with respect to dividends
128	paid or deemed paid by a Domestic International Sales
129	Corporation.
130	3.  In computing "adjusted federal income" for taxable
131	years beginning after December 31, 1976, there shall be allowed
132	as a deduction the amount of wages and salaries paid or incurred
133	within this state for the taxable year for which no deduction is
134	allowed pursuant to s. 280C(a) of the Internal Revenue Code
135	(relating to credit for employment of certain new employees).
136	4.  There shall be subtracted from such taxable income any
137	amount of nonbusiness income included therein.
138	5.  There shall be subtracted any amount of taxes of
139	foreign countries allowable as credits for taxable years
140	beginning on or after September 1, 1985, under s. 901 of the
141	Internal Revenue Code to any corporation that which derived less
142	than 20 percent of its gross income or loss for its taxable year
143	ended in 1984 from sources within the United States, as
144	described in s. 861(a)(2)(A) of the Internal Revenue Code, not
145	including credits allowed under ss. 902 and 960 of the Internal
146	Revenue Code, withholding taxes on dividends within the meaning
147	of sub-subparagraph 2.a., and withholding taxes on royalties,
148	interest, technical service fees, and capital gains.
149	6.  Notwithstanding any other provision of this code,
150	except with respect to amounts subtracted pursuant to
151	subparagraphs 1. and 3., any increment of any apportionment
152	factor which is directly related to an increment of gross
153	receipts or income which is deducted, subtracted, or otherwise
154	excluded in determining adjusted federal income shall be
155	excluded from both the numerator and denominator of such
156	apportionment factor. Further, all valuations made for
157	apportionment factor purposes shall be made on a basis
158	consistent with the taxpayer's method of accounting for federal
159	income tax purposes.
160	(c)  Installment sales occurring after October 19, 1980.-
161	1.  In the case of any disposition made after October 19,
162	1980, the income from an installment sale shall be taken into
163	account for the purposes of this code in the same manner that
164	such income is taken into account for federal income tax
165	purposes.
166	2.  Any taxpayer who regularly sells or otherwise disposes
167	of personal property on the installment plan and reports the
168	income therefrom on the installment method for federal income
169	tax purposes under s. 453(a) of the Internal Revenue Code shall
170	report such income in the same manner under this code.
171	(d)  Nonallowable deductions.-A deduction for net operating
172	losses, net capital losses, or excess contributions deductions
173	under ss. 170(d)(2), 172, 1212, and 404 of the Internal Revenue
174	Code which has been allowed in a prior taxable year for Florida
175	tax purposes shall not be allowed for Florida tax purposes,
176	notwithstanding the fact that such deduction has not been fully
177	utilized for federal tax purposes.
178	(e)  Adjustments related to the Federal Economic Stimulus
179	Act of 2008 and the American Recovery and Reinvestment Act of
180	2009.-Taxpayers shall be required to make the adjustments
181	prescribed in this paragraph for Florida tax purposes in
182	relation to certain tax benefits received pursuant to the
183	Economic Stimulus Act of 2008 and the American Recovery and
184	Reinvestment Act of 2009.
185	1.  There shall be added to such taxable income an amount
186	equal to 100 percent of any amount deducted for federal income
187	tax purposes as bonus depreciation for the taxable year pursuant
188	to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
189	amended by s. 103 of Pub. L. No. 110-185 and s. 1201 of Pub. L.
190	No. 111-5, for property placed in service after December 31,
191	2007, and before January 1, 2010. For the taxable year and for
192	each of the 6 subsequent taxable years, there shall be
193	subtracted from such taxable income an amount equal to one-
194	seventh of the amount by which taxable income was increased
195	pursuant to this subparagraph, notwithstanding any sale or other
196	disposition of the property that is the subject of the
197	adjustments and regardless of whether such property remains in
198	service in the hands of the taxpayer.
199	2.  There shall be added to such taxable income an amount
200	equal to 100 percent of any amount in excess of $128,000
201	deducted for federal income tax purposes for the taxable year
202	pursuant to s. 179 of the Internal Revenue Code of 1986, as
203	amended by s. 102 of Pub. L. No. 110-185 and s. 1202 of Pub. L.
204	No. 111-5, for taxable years beginning after December 31, 2007,
205	and before January 1, 2010. For the taxable year and for each of
206	the 6 subsequent taxable years, there shall be subtracted from
207	such taxable income one-seventh of the amount by which taxable
208	income was increased pursuant to this subparagraph,
209	notwithstanding any sale or other disposition of the property
210	that is the subject of the adjustments and regardless of whether
211	such property remains in service in the hands of the taxpayer.
212	3.  There shall be added to such taxable income an amount
213	equal to the amount of deferred income not included in such
214	taxable income pursuant to s. 108(i)(1) of the Internal Revenue
215	Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
216	shall be subtracted from such taxable income an amount equal to
217	the amount of deferred income included in such taxable income
218	pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
219	as amended by s. 1231 of Pub. L. No. 111-5.
220	4.  Subtractions available under this paragraph may be
221	transferred to the surviving or acquiring entity following a
222	merger or acquisition and used in the same manner and with the
223	same limitations as specified by this paragraph.
224	5.  The additions and subtractions specified in this
225	paragraph are intended to adjust taxable income for Florida tax
226	purposes, and, notwithstanding any other provision of this code,
227	such additions and subtractions shall be permitted to change a
228	taxpayer's net operating loss for Florida tax purposes.
229	(2)  DEFINITIONS.-For purposes of this section, a
230	taxpayer's taxable income for the taxable year means taxable
231	income as defined in s. 63 of the Internal Revenue Code and
232	properly reportable for federal income tax purposes for the
233	taxable year, but subject to the limitations set forth in
234	paragraph (1)(b) with respect to the deductions provided by ss.
235	172 (relating to net operating losses), 170(d)(2) (relating to
236	excess charitable contributions), 404(a)(1)(D) (relating to
237	excess pension trust contributions), 404(a)(3)(A) and (B) (to
238	the extent relating to excess stock bonus and profit-sharing
239	trust contributions), and 1212 (relating to capital losses) of
240	the Internal Revenue Code, except that, subject to the same
241	limitations, the term:
242	(a)  "Taxable income," in the case of a life insurance
243	company subject to the tax imposed by s. 801 of the Internal
244	Revenue Code, means life insurance company taxable income;
245	however, for purposes of this code, the total of any amounts
246	subject to tax under s. 815(a)(2) of the Internal Revenue Code
247	pursuant to s. 801(c) of the Internal Revenue Code shall not
248	exceed, cumulatively, the total of any amounts determined under
249	s. 815(c)(2) of the Internal Revenue Code of 1954, as amended,
250	from January 1, 1972, to December 31, 1983;
251	(b)  "Taxable income," in the case of an insurance company
252	subject to the tax imposed by s. 831(b) of the Internal Revenue
253	Code, means taxable investment income;
254	(c)  "Taxable income," in the case of an insurance company
255	subject to the tax imposed by s. 831(a) of the Internal Revenue
256	Code, means insurance company taxable income;
257	(d)  "Taxable income," in the case of a regulated
258	investment company subject to the tax imposed by s. 852 of the
259	Internal Revenue Code, means investment company taxable income;
260	(e)  "Taxable income," in the case of a real estate
261	investment trust subject to the tax imposed by s. 857 of the
262	Internal Revenue Code, means the income subject to tax, computed
263	as provided in s. 857 of the Internal Revenue Code;
264	(f)  "Taxable income," in the case of a corporation that
265	which is a member of an affiliated group of corporations filing
266	a consolidated income tax return for the taxable year for
267	federal income tax purposes, means taxable income of such
268	corporation for federal income tax purposes as if such
269	corporation had filed a separate federal income tax return for
270	the taxable year and each preceding taxable year for which it
271	was a member of an affiliated group, unless a consolidated
272	return for the taxpayer and others is required or elected under
273	s. 220.131;
274	(g)  "Taxable income," in the case of a cooperative
275	corporation or association, means the taxable income of such
276	organization determined in accordance with the provisions of ss.
277	1381-1388 of the Internal Revenue Code;
278	(h)  "Taxable income," in the case of an organization that
279	which is exempt from the federal income tax by reason of s.
280	501(a) of the Internal Revenue Code, means its unrelated
281	business taxable income as determined under s. 512 of the
282	Internal Revenue Code;
283	(i)  "Taxable income," in the case of a corporation for
284	which there is in effect for the taxable year an election under
285	s. 1362(a) of the Internal Revenue Code, means the amounts
286	subject to tax under s. 1374 or s. 1375 of the Internal Revenue
287	Code for each taxable year;
288	(j)  "Taxable income," in the case of a limited liability
289	company, other than a limited liability company classified as a
290	partnership for federal income tax purposes, as defined in and
291	organized pursuant to chapter 608 or qualified to do business in
292	this state as a foreign limited liability company or other than
293	a similar limited liability company classified as a partnership
294	for federal income tax purposes and created as an artificial
295	entity pursuant to the statutes of the United States or any
296	other state, territory, possession, or jurisdiction, if such
297	limited liability company or similar entity is taxable as a
298	corporation for federal income tax purposes, means taxable
299	income determined as if such limited liability company were
300	required to file or had filed a federal corporate income tax
301	return under the Internal Revenue Code;
302	(k)  "Taxable income," in the case of a taxpayer liable for
303	the alternative minimum tax as defined in s. 55 of the Internal
304	Revenue Code, means the alternative minimum taxable income as
305	defined in s. 55(b)(2) of the Internal Revenue Code, less the
306	exemption amount computed under s. 55(d) of the Internal Revenue
307	Code. A taxpayer is not liable for the alternative minimum tax
308	unless the taxpayer's federal tax return, or related federal
309	consolidated tax return, if included in a consolidated return
310	for federal tax purposes, reflect a liability on the return
311	filed for the alternative minimum tax as defined in s. 55(b)(2)
312	of the Internal Revenue Code;
313	(l)  "Taxable income," in the case of a taxpayer whose
314	taxable income is not otherwise defined in this subsection,
315	means the sum of amounts to which a tax rate specified in s. 11
316	of the Internal Revenue Code plus the amount to which a tax rate
317	specified in s. 1201(a)(2) of the Internal Revenue Code are
318	applied for federal income tax purposes.
319	(3)  LIMITATIONS ON DEDUCTIONS OF INTANGIBLE EXPENSES AND
320	FEES WITH A RELATED ENTITY.-
321	(a)  Definitions.-As used in this subsection, the term:
322	1.  "Intangible expenses" means the following amounts to
323	the extent that these amounts are allowed as deductions in
324	determining federal taxable income under the Internal Revenue
325	Code before the application of any net operating loss deduction
326	and special deductions for the taxable year:
327	a.  Expenses, losses, and costs directly or indirectly for,
328	related to, or in association with the acquisition, use,
329	maintenance, management, ownership, sale, exchange, or other
330	disposition of intangible property;
331	b.  Royalty, patent, technical, trademark, and copyright
332	fees;
333	c.  Licensing fees; or
334	d.  Other substantially similar expenses and costs,
335	including, but not limited to, interest and losses from
336	factoring transactions.
337	2.  "Intangible property" means patents, patent
338	applications, trade names, trademarks, service marks,
339	copyrights, trade secrets, and substantially similar types of
340	intangible assets.
341	3.  "Interest expenses" means amounts that are allowed as
342	deductions under s. 163 of the Internal Revenue Code in
343	determining federal taxable income before the application of any
344	net operating loss deductions and special deductions for the
345	taxable year.
346	4.  "Management fees" means expenses and costs paid for
347	services, including, but not limited to, management overhead,
348	management supervision, accounts receivable and payable,
349	employee benefit plans, insurance, legal, payroll, data
350	processing, purchasing, tax, financial and securities, billing,
351	accounting, reporting and compliance, or similar services, only
352	to the extent that the amounts are allowed as a deduction, cost,
353	or expense in determining taxable net income under the Internal
354	Revenue Code before the application of any net operating loss
355	deduction and special deductions for the taxable year.
356	5.  "Recipient" means a related entity that is paid an item
357	of income that corresponds to an intangible expense, interest
358	expense, or management fee.
359	6.  "Related entity" means an artificial entity that would
360	be a member of the taxpayer's affiliated group under s. 1504 of
361	the Internal Revenue Code during all or any portion of the
362	taxable year using an ownership percentage of 50 percent instead
363	of 80 percent. The term includes any entity, other than a
364	natural person, which would be included in the affiliated group
365	based upon a 50 percent ownership percentage if the entity was
366	organized as a corporation.
367	(b)  Additions.-Except as provided in paragraph (c), in
368	determining its adjusted federal income under this section and
369	s. 220.131, a corporation subject to tax shall add to its
370	taxable income:
371	1.  Intangible expenses;
372	2.  Interest expenses; and
373	3.  Management fees,
374
375	paid, accrued, or incurred directly or indirectly with a related
376	entity. For income received from a pass-through entity or a
377	disregarded entity, the corporation is deemed to have received
378	its share of the income and the expenses of the pass-through
379	entity or disregarded entity for purposes of this subsection.
380	(c)  Special exceptions.-Except as provided in paragraph
381	(d), the addition of intangible expenses, interest expenses, or
382	management fees otherwise required in a taxable year under this
383	subsection for a specific transaction with a related entity is
384	not required if one of the following apply:
385	1.  The taxpayer and the recipient are included in the same
386	Florida consolidated tax return filed under s. 220.131 for the
387	taxable year.
388	2.  The taxpayer and the executive director or his or her
389	designee agree in writing to alternative computations or
390	adjustments. The executive director or his or her designee may
391	enter into such an agreement only if the taxpayer has clearly
392	established to the satisfaction of the executive director or his
393	or her designee that the addition is unreasonable and that the
394	proposed alternative method of determining the measure of the
395	tax accurately reflects the activity, business, income, and
396	capital of the taxpayers within this state. The agreement must
397	be signed by the executive director or his or her designee. The
398	term of the agreement may not exceed 4 years.
399	3.  The taxpayer makes a disclosure on its return and
400	establishes all of the following by clear and convincing
401	evidence:
402	a.  The recipient was subject to an income tax or franchise
403	tax measured in whole or part by net income in its state or
404	country of commercial domicile, or in the state of commercial
405	domicile in which an intangible is required by contract to be
406	held, and
407	(I)  The tax base for the income or franchise tax included
408	the intangible expense, management fee, or interest expense
409	paid, accrued, or incurred by the taxpayer;
410	(II)  The aggregate effective tax rate applied was at least
411	5.5 percent;
412	(III)  If the recipient is a foreign corporation, the
413	foreign nation has a comprehensive income tax treaty with the
414	United States; and
415	(IV)  The recipient did not receive a credit, exemption, or
416	exclusion for the net income from its intangible income,
417	management fee income, or interest income, or the credit,
418	exemption, or exclusion received was 75 percent or less of the
419	net income.
420	b.  The transaction did not have Florida tax avoidance as a
421	principle purpose.
422	c.  The recipient regularly engages in the same types of
423	transactions with third parties.
424	d.  The transaction was made at a commercially reasonable
425	rate and at arms-length terms similar to those with third
426	parties.
427	4.  The taxpayer makes a disclosure on its return and
428	establishes all of the following by clear and convincing
429	evidence:
430	a.  The related entity, during the same taxable year,
431	directly or indirectly incurred and paid the amount of the
432	intangible expense, interest expense, and management fee to a
433	person or entity that is not a related entity.
434	b.  The transaction was done for a valid business purpose.
435	c.  The payments were limited to reimbursement of the
436	amounts paid to a person or entity that is not a related entity.
437	d.  The unrelated person or entity regularly engages in the
438	same types of transactions with third parties on a substantial
439	basis.
440	(d)  Limitation on special exceptions.-The exceptions
441	described in subparagraphs (c)3. and (c)4. do not apply to:
442	1.  Interest paid by a taxpayer in connection with a debt
443	incurred to acquire the taxpayer's or a related entity's assets
444	or stock in a transaction referenced in s. 368 of the Internal
445	Revenue Code. For purposes of this subparagraph, acquisition
446	interest paid by a taxpayer to a person or entity that is not a
447	related entity is deemed to be made to a related entity.
448	2.  Intangible property acquired directly or indirectly
449	from the taxpayer or from a related entity.
450	3.  Those instances in which the related entity is
451	primarily engaged in managing, acquiring, or maintaining
452	intangible property or related-party financing and a primary
453	purpose of the transaction was the avoidance of Florida tax.
454	4.  Those instances in which the taxpayer files with the
455	related entity or the related entity files with another related
456	entity an income tax return or report and the return or report
457	is due because of the imposition of a tax on or measured by
458	income or the income tax return or report results in the
459	elimination of the tax effects from transactions directly or
460	indirectly between the taxpayer and the related member.
461	(e)  Adjustment to the taxable income of a related entity.-
462	To the extent that a taxpayer is required to make an adjustment
463	under paragraph (b) or paragraph (c) for a specific related
464	entity transaction, the corresponding related entity must make a
465	corresponding subtraction to its taxable income if the income of
466	the related entity is subject to tax in this state.
467	(f)  Adjustment of net operating loss carryover.-The amount
468	of a taxpayer's net operating loss carryover from tax years
469	ending before December 31, 2011, to a tax year ending on or
470	after December 31, 2011, must be adjusted to account for the
471	addition of intangible expenses, interest expenses, and
472	management fees under this subsection. However, this calculation
473	may not increase the amount of a net operating loss carryover.
474	(g)  Limitation on additions to income.-This subsection
475	does not require a taxpayer to add to its Florida taxable income
476	more than once any amount of interest expenses, intangible
477	expenses, or management fees that the taxpayer pays, accrues, or
478	incurs to a related entity.
479	(h)  Limitations on subtractions to income.-This subsection
480	does not allow any item to be subtracted from adjusted federal
481	income more than once a subtraction for any item that is
482	excluded from income, or any item to be included in the adjusted
483	federal income of more than one taxpayer.
484	(i)  Authority to make adjustments.-This subsection does
485	not limit or negate the authority of the executive director to
486	make adjustments under s. 220.131(2), s. 220.44, or s. 220.152.
487	(j)  Required information for a return.-Each taxpayer shall
488	provide the following information to the department along with
489	its tax return regarding each related entity transaction:
490	1.  The name of the recipient;
491	2.  The state or country of domicile of the recipient;
492	3.  The amount paid to the recipient; and
493	4.  A complete description of the payment made to the
494	recipient.
495	(k)  Negligence.-The failure of a taxpayer to add to its
496	income an amount paid directly or indirectly to a related party
497	or to provide complete information along with the tax return is
498	evidence of negligence within the meaning of s. 220.803(1).
499	(l)  Rulemaking.-The department may adopt rules and forms
500	necessary to administer this subsection, including, but not
501	limited to, forms and rules for reporting transactions with
502	related entities.
503	Section 2.  This act shall take effect upon becoming a law,
504	and applies to tax years ending on or after December 31, 2011.

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