CS/HB 7185

1	A bill to be entitled
2	An act relating to the corporate income tax; amending s.
3	220.03, F.S.; providing for the adoption of the 2011
4	version of the Internal Revenue Code; amending s. 220.13,
5	F.S.; specifying the treatment by this state of certain
6	depreciation and expensing of assets that are allowed for
7	federal income tax purposes; authorizing the executive
8	director of the Department of Revenue to adopt emergency
9	rules; providing an appropriation; providing for reversion
10	and reappropriation; providing for retroactive
11	application; amending s. 220.14, F.S.; increasing the
12	amount of income that is exempt from taxation; amending s.
13	220.63, F.S.; amending the amount of income that is exempt
14	from the franchise tax imposed on banks and savings
15	associations; providing effective dates.
16
17	Be It Enacted by the Legislature of the State of Florida:
18
19	Section 1.  Paragraph (n) of subsection (1) and subsection
20	(2) of section 220.03, Florida Statutes, are amended to read:
21	220.03  Definitions.-
22	(1)  SPECIFIC TERMS.-When used in this code, and when not
23	otherwise distinctly expressed or manifestly incompatible with
24	the intent thereof, the following terms shall have the following
25	meanings:
26	(n)  "Internal Revenue Code" means the United States
27	Internal Revenue Code of 1986, as amended and in effect on
28	January 1, 2011 2010, except as provided in subsection (3).
29	(2)  DEFINITIONAL RULES.-When used in this code and neither
30	otherwise distinctly expressed nor manifestly incompatible with
31	the intent thereof:
32	(a)  The word "corporation" or "taxpayer" shall be deemed
33	to include the words "and its successors and assigns" as if
34	these words, or words of similar import, were expressed;
35	(b)  Any term used in any section of this code with respect
36	to the application of, or in connection with, the provisions of
37	any other section of this code shall have the same meaning as in
38	such other section; and
39	(c)  Any term used in this code shall have the same meaning
40	as when used in a comparable context in the Internal Revenue
41	Code and other statutes of the United States relating to federal
42	income taxes, as such code and statutes are in effect on January
43	1, 2011 2010. However, if subsection (3) is implemented, the
44	meaning of any term shall be taken at the time the term is
45	applied under this code.
46	Section 2.  Paragraph (e) of subsection (1) of section
47	220.13, Florida Statutes, is amended to read:
48	220.13  "Adjusted federal income" defined.-
49	(1)  The term "adjusted federal income" means an amount
50	equal to the taxpayer's taxable income as defined in subsection
51	(2), or such taxable income of more than one taxpayer as
52	provided in s. 220.131, for the taxable year, adjusted as
53	follows:
54	(e)  Adjustments related to the Federal Economic Stimulus
55	Act of 2008, and the American Recovery and Reinvestment Act of
56	2009, the Small Business Jobs Act of 2010, and the Tax Relief,
57	Unemployment Insurance Reauthorization, and Job Creation Act of
58	2010.-Taxpayers shall be required to make the adjustments
59	prescribed in this paragraph for Florida tax purposes in
60	relation to certain tax benefits received pursuant to the
61	Economic Stimulus Act of 2008, and the American Recovery and
62	Reinvestment Act of 2009, the Small Business Jobs Act of 2010,
63	and the Tax Relief, Unemployment Insurance Reauthorization, and
64	Job Creation Act of 2010.
65	1.  There shall be added to such taxable income an amount
66	equal to 100 percent of any amount deducted for federal income
67	tax purposes as bonus depreciation for the taxable year pursuant
68	to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
69	amended by s. 103 of Pub. L. No. 110-185, and s. 1201 of Pub. L.
70	No. 111-5, s. 2022 of Pub. L. No. 111-240, and s. 401 of Pub. L.
71	No. 111-312, for property placed in service after December 31,
72	2007, and before January 1, 2013 2010. For the taxable year and
73	for each of the 6 subsequent taxable years, there shall be
74	subtracted from such taxable income an amount equal to one-
75	seventh of the amount by which taxable income was increased
76	pursuant to this subparagraph, notwithstanding any sale or other
77	disposition of the property that is the subject of the
78	adjustments and regardless of whether such property remains in
79	service in the hands of the taxpayer.
80	2.  There shall be added to such taxable income an amount
81	equal to 100 percent of any amount in excess of $128,000
82	deducted for federal income tax purposes for the taxable year
83	pursuant to s. 179 of the Internal Revenue Code of 1986, as
84	amended by s. 102 of Pub. L. No. 110-185, and s. 1202 of Pub. L.
85	No. 111-5, s. 2021 of Pub. L. No. 111-240, and s. 402 of Pub. L.
86	No. 111-312, for taxable years beginning after December 31,
87	2007, and before January 1, 2013 2010. For the taxable year and
88	for each of the 6 subsequent taxable years, there shall be
89	subtracted from such taxable income one-seventh of the amount by
90	which taxable income was increased pursuant to this
91	subparagraph, notwithstanding any sale or other disposition of
92	the property that is the subject of the adjustments and
93	regardless of whether such property remains in service in the
94	hands of the taxpayer.
95	3.  There shall be added to such taxable income an amount
96	equal to the amount of deferred income not included in such
97	taxable income pursuant to s. 108(i)(1) of the Internal Revenue
98	Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
99	shall be subtracted from such taxable income an amount equal to
100	the amount of deferred income included in such taxable income
101	pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
102	as amended by s. 1231 of Pub. L. No. 111-5.
103	4.  Subtractions available under this paragraph may be
104	transferred to the surviving or acquiring entity following a
105	merger or acquisition and used in the same manner and with the
106	same limitations as specified by this paragraph.
107	5.  The additions and subtractions specified in this
108	paragraph are intended to adjust taxable income for Florida tax
109	purposes, and, notwithstanding any other provision of this code,
110	such additions and subtractions shall be permitted to change a
111	taxpayer's net operating loss for Florida tax purposes.
112	Section 3.  (1)  The executive director of the Department
113	of Revenue is authorized, and all conditions are deemed met, to
114	adopt emergency rules under ss. 120.536(1) and 120.54(4),
115	Florida Statutes, for the purpose of implementing this act.
116	(2)  Notwithstanding any other provision of law, the
117	emergency rules shall remain in effect for 6 months after
118	adoption and may be renewed during the pendency of procedures to
119	adopt permanent rules addressing the subject of the emergency
120	rules.
121	Section 4.  For the 2010-2011 fiscal year, the sum of
122	$99,740 in nonrecurring funds is appropriated from the General
123	Revenue Fund to the Department of Revenue for purposes of
124	implementing this act. Funds remaining unexpended or
125	unencumbered from this appropriation as of June 30, 2011, shall
126	revert and be reappropriated for the same purpose in the 2011-
127	2012 fiscal year.
128	Section 5.  Effective January 1, 2012, and applying to tax
129	years beginning on or after January 1, 2012, subsection (1) of
130	section 220.14, Florida Statutes, is amended to read
131	220.14  Exemption.-
132	(1)  In computing a taxpayer's liability for tax under this
133	code, there shall be exempt from the tax $25,000 $5,000 of net
134	income as defined in s. 220.12 or such lesser amount as will,
135	without increasing the taxpayer's federal income tax liability,
136	provide the state with an amount under this code which is equal
137	to the maximum federal income tax credit which may be available
138	from time to time under federal law.
139	Section 6.  Effective January 1, 2012, and applying to tax
140	years beginning on or after January 1, 2012, subsection (3) of
141	section 220.63, Florida Statutes, is amended to read:
142	220.63  Franchise tax imposed on banks and savings
143	associations.-
144	(3)  For purposes of this part, the franchise tax base
145	shall be adjusted federal income, as defined in s. 220.13,
146	apportioned to this state, plus nonbusiness income allocated to
147	this state pursuant to s. 220.16, less the deduction allowed in
148	subsection (5) and less $25,000 $5,000.
149	Section 7.  Except as otherwise expressly provided in this
150	act, this act shall take effect upon becoming a law and shall
151	operate retroactively to January 1, 2011.

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