HB 143

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
26	Be It Enacted by the Legislature of the State of Florida:
27
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	220.1875, those enumerated in s. 220.192, those enumerated in s.
41	220.193, those enumerated in s. 288.9916, those enumerated in s.
42	220.1899, and those enumerated in s. 220.1896, and those
43	enumerated in s. 220.1811.
44	Section 2.  Paragraph (a) of subsection (1) of section
45	220.13, Florida Statutes, is amended to read:
46	220.13  "Adjusted federal income" defined.-
47	(1)  The term "adjusted federal income" means an amount
48	equal to the taxpayer's taxable income as defined in subsection
49	(2), or such taxable income of more than one taxpayer as
50	provided in s. 220.131, for the taxable year, adjusted as
51	follows:
52	(a)  Additions.-There shall be added to such taxable
53	income:
54	1.  The amount of any tax upon or measured by income,
55	excluding taxes based on gross receipts or revenues, paid or
56	accrued as a liability to the District of Columbia or any state
57	of the United States which is deductible from gross income in
58	the computation of taxable income for the taxable year.
59	2.  The amount of interest which is excluded from taxable
60	income under s. 103(a) of the Internal Revenue Code or any other
61	federal law, less the associated expenses disallowed in the
62	computation of taxable income under s. 265 of the Internal
63	Revenue Code or any other law, excluding 60 percent of any
64	amounts included in alternative minimum taxable income, as
65	defined in s. 55(b)(2) of the Internal Revenue Code, if the
66	taxpayer pays tax under s. 220.11(3).
67	3.  In the case of a regulated investment company or real
68	estate investment trust, an amount equal to the excess of the
69	net long-term capital gain for the taxable year over the amount
70	of the capital gain dividends attributable to the taxable year.
71	4.  That portion of the wages or salaries paid or incurred
72	for the taxable year which is equal to the amount of the credit
73	allowable for the taxable year under s. 220.181. This
74	subparagraph shall expire on the date specified in s. 290.016
75	for the expiration of the Florida Enterprise Zone Act.
76	5.  That portion of the ad valorem school taxes paid or
77	incurred for the taxable year which is equal to the amount of
78	the credit allowable for the taxable year under s. 220.182. This
79	subparagraph shall expire on the date specified in s. 290.016
80	for the expiration of the Florida Enterprise Zone Act.
81	6.  The amount of emergency excise tax paid or accrued as a
82	liability to this state under chapter 221 which tax is
83	deductible from gross income in the computation of taxable
84	income for the taxable year.
85	7.  That portion of assessments to fund a guaranty
86	association incurred for the taxable year which is equal to the
87	amount of the credit allowable for the taxable year.
88	8.  In the case of a nonprofit corporation which holds a
89	pari-mutuel permit and which is exempt from federal income tax
90	as a farmers' cooperative, an amount equal to the excess of the
91	gross income attributable to the pari-mutuel operations over the
92	attributable expenses for the taxable year.
93	9.  The amount taken as a credit for the taxable year under
94	s. 220.1895.
95	10.  Up to nine percent of the eligible basis of any
96	designated project which is equal to the credit allowable for
97	the taxable year under s. 220.185.
98	11.  The amount taken as a credit for the taxable year
99	under s. 220.1875. The addition in this subparagraph is intended
100	to ensure that the same amount is not allowed for the tax
101	purposes of this state as both a deduction from income and a
102	credit against the tax. This addition is not intended to result
103	in adding the same expense back to income more than once.
104	12.  The amount taken as a credit for the taxable year
105	under s. 220.192.
106	13.  The amount taken as a credit for the taxable year
107	under s. 220.193.
108	14.  Any portion of a qualified investment, as defined in
109	s. 288.9913, which is claimed as a deduction by the taxpayer and
110	taken as a credit against income tax pursuant to s. 288.9916.
111	15.  The costs to acquire a tax credit pursuant to s.
112	288.1254(5) that are deducted from or otherwise reduce federal
113	taxable income for the taxable year.
114	16.  The amount taken as a credit for the taxable year
115	under s. 220.1811.
116	Section 3.  Section 220.1811, Florida Statutes, is created
117	to read:
118	220.1811  Aerospace-sector jobs tax credit and tuition
119	reimbursement tax credit.-
120	(1)  DEFINITIONS.-As used in this section, the term:
121	(a)  "Aerospace business" means a business located in this
122	state which is engaged in aerospace, as defined in s. 331.303.
123	(b)  "Qualified employee" means a resident of this state
124	who:
125	1.  Is first employed or reemployed by an aerospace
126	business on or after January 1, 2012;
127	2.  Received an undergraduate or graduate degree from a
128	college or university that is accredited by a national
129	accrediting body; received a technical degree or certification
130	related to aerospace from a technical training institution; or
131	completed an aerospace development workforce training program
132	coordinated by Workforce Florida, Inc.;
133	3.  Is not an owner, partner, or majority stockholder of an
134	aerospace business; and
135	4.  Is employed for at least 6 months.
136	(c)  "Tuition reimbursed to a qualified employee" means a
137	lump-sum payment by an aerospace business to a qualified
138	employee, which may not exceed the average annual tuition, as
139	reported by the Board of Governors of the State University
140	System, for a Florida resident who is a full-time undergraduate
141	student enrolled in a public college or university. The term
142	does not include the cost of books, fees, or room and board.
143	(2)  AEROSPACE-SECTOR JOBS TAX CREDIT.-
144	(a)  A credit against the tax imposed under this chapter
145	may be claimed by an aerospace business for compensation paid to
146	a qualified employee.
147	(b)  The credit authorized by this subsection shall equal
148	10 percent of the compensation paid for the first through fifth
149	years of employment in this state by an aerospace business.
150	(c)  The credit authorized by this subsection may not
151	exceed $12,500 annually for each qualified employee.
152	(d)  This credit applies only with respect to wages subject
153	to unemployment tax.
154	(e)  If the credit is not fully used in any one year, the
155	unused amount may be carried forward for a period not to exceed
156	5 years. The carryover credit may be used in a subsequent year
157	if the tax imposed by this chapter for such year exceeds the
158	credit for such year after applying the other credits and unused
159	credit carryovers in the order provided in s. 220.02(8).
160	(3)  TUITION REIMBURSEMENT TAX CREDIT.-
161	(a)  A credit against the tax imposed under this chapter
162	may be claimed by an aerospace business for 50 percent of
163	tuition reimbursed to a qualified employee in a tax year.
164	(b)  The credit may be claimed only if the qualified
165	employee was awarded an undergraduate or graduate degree, a
166	technical certification, or a certification from a training
167	program coordinated by Workforce Florida, Inc., within 1 year
168	after commencing employment with the business requesting the
169	credit, and may be claimed within 4 years after employment of
170	the qualified employee.
171	(c)  If this credit is not fully used in any one year, the
172	unused amount may be carried forward for a period not to exceed
173	5 years. The carryover credit may be used in a subsequent year
174	if the tax imposed under this chapter for such year exceeds the
175	credit for such year after applying the other credits and unused
176	credit carryovers in the order provided in s. 220.02(8).
177	(4)  MAXIMUM CREDITS FOR AN AEROSPACE BUSINESS.-The maximum
178	amount of credits under this section which may be claimed by any
179	single aerospace business in a calendar year is $200,000.
180	(5)  ANNUAL LIMIT ON TAX CREDITS.-The total amount of
181	credits that may be granted under this section is $2 million in
182	any calendar year. A credit that is claimed after the $2 million
183	limit is reached shall be disallowed.
184	(6)  DUPLICATION OF TAX CREDITS.-A business may not claim
185	an aerospace-sector jobs tax credit and a tuition reimbursement
186	tax credit for the same qualified employee.
187	(7)  APPLICATION FOR TAX CREDITS.-
188	(a)  An aerospace business must apply to the department for
189	authorization to claim an aerospace-sector jobs tax credit or a
190	tuition reimbursement tax credit. The application must be filed
191	under oath and include:
192	1.  The name and address of the business and documentation
193	that the business is an aerospace business.
194	2.  For each employee for which a tax credit is sought:
195	a.  The employee's name and documentation that the employee
196	is a qualified employee.
197	b.  The salary or hourly wages, including the hourly wages
198	subject to unemployment tax paid to the qualified employee.
199	c.  The location of the community college, college,
200	university, technical institution, or training program
201	coordinated by Workforce Florida, Inc., from which the qualified
202	employee received his or her degree or certification.
203	d.  A statement as to whether the applicant is seeking an
204	aerospace-sector jobs tax credit or a tuition reimbursement tax
205	credit.
206	(b)  The applicant for a tax credit has the burden of
207	demonstrating to the satisfaction of the department that it
208	meets the requirements of this section.
209	(8)  LIMITS ON THE CARRY OVER OF TAX CREDITS.-An aerospace
210	business may not carry over more tax credits in an amended
211	return than were claimed on the original return for the taxable
212	year. This subsection does not limit increases in the amount of
213	credit claimed on an amended return due to the use of any credit
214	amount previously carried over pursuant to paragraph (2)(e) or
215	paragraph (3)(c).
216	(9)  PENALTIES.-
217	(a)  Any person who fraudulently claims a credit under this
218	section is liable for repayment of the credit, plus a mandatory
219	penalty in the amount of 200 percent of the credit, plus
220	interest at the rate provided in s. 220.807, and commits a
221	felony of the third degree, punishable as provided in s.
222	775.082, s. 775.083, or s. 775.084.
223	(b)  Any person who makes an underpayment of tax as a
224	result of a grossly overstated claim for this credit commits a
225	felony of the third degree, punishable as provided in s.
226	775.082, s. 775.083, or s. 775.084. As used in this paragraph,
227	the term "grossly overstated claim" means a claim in an amount
228	in excess of 100 percent of the amount of credit allowable under
229	this section.
230	(10)  RULEMAKING.-The department may adopt rules to
231	prescribe any necessary forms required to claim a tax credit
232	under this section and to provide guidelines and procedures
233	required to administer this section.
234	(11)  EXPIRATION.-This section, except paragraphs (2)(e)
235	and (3)(c) and subsection (8), expires December 31, 2021. An
236	aerospace business may not claim a new tax credit under this
237	section after that date. However, an aerospace business may
238	claim tax credits carried over pursuant to paragraph (2)(e) or
239	paragraph (3)(c).
240	Section 4.  This act shall take effect January 1, 2012, and
241	applies to tax years beginning on or after that date.

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