Florida Senate - 2018 SB 1786 By Senator Campbell 38-01464A-18 20181786__ 1 A bill to be entitled 2 An act relating to a family caregiver tax credit; 3 amending s. 220.02, F.S.; specifying the order in 4 which the tax credit for businesses employing and 5 providing certain support to employees who serve as 6 family caregivers is applied against the corporate 7 income tax or the franchise tax; amending s. 220.13, 8 F.S.; revising the definition of the term “adjusted 9 federal income” to include the amount of the tax 10 credit taken in adjusting certain taxable income; 11 creating s. 220.197, F.S.; defining terms; providing a 12 tax credit for certain qualified businesses employing 13 and providing mental health support to employees who 14 serve as family caregivers; specifying the calculation 15 of the tax credit; providing that the tax credit is 16 for previously paid taxes, may be taken only as a 17 deduction on a corporate income tax return, and may 18 not be received as a refund; specifying a limit on the 19 credit taken in any taxable year; providing procedures 20 and requirements for tax credit applications to, and 21 the processing of applications by, the Department of 22 Revenue; providing that unused credits may be carried 23 forward for a specified timeframe; providing 24 construction relating to the use of carryover credits; 25 authorizing the department to adopt rules; providing 26 an effective date. 27 28 Be It Enacted by the Legislature of the State of Florida: 29 30 Section 1. Subsection (8) of section 220.02, Florida 31 Statutes, is amended to read: 32 220.02 Legislative intent.— 33 (8) It is the intent of the Legislature that credits 34 against either the corporate income tax or the franchise tax be 35 applied in the following order: those enumerated in s. 631.828, 36 those enumerated in s. 220.191, those enumerated in s. 220.181, 37 those enumerated in s. 220.183, those enumerated in s. 220.182, 38 those enumerated in s. 220.1895, those enumerated in s. 220.195, 39 those enumerated in s. 220.184, those enumerated in s. 220.186, 40 those enumerated in s. 220.1845, those enumerated in s. 220.19, 41 those enumerated in s. 220.185, those enumerated in s. 220.1875, 42 those enumerated in s. 220.192, those enumerated in s. 220.193, 43 those enumerated in s. 288.9916, those enumerated in s. 44 220.1899, those enumerated in s. 220.194,
andthose enumerated 45 in s. 220.196, and those enumerated in s. 220.197. 46 Section 2. Paragraph (a) 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 (a) Additions.—There shall be added to such taxable income: 55 1. The amount of any tax upon or measured by income, 56 excluding taxes based on gross receipts or revenues, paid or 57 accrued as a liability to the District of Columbia or any state 58 of the United States which is deductible from gross income in 59 the computation of taxable income for the taxable year. 60 2. The amount of interest which is excluded from taxable 61 income under s. 103(a) of the Internal Revenue Code or any other 62 federal law, less the associated expenses disallowed in the 63 computation of taxable income under s. 265 of the Internal 64 Revenue Code or any other law, excluding 60 percent of any 65 amounts included in alternative minimum taxable income, as 66 defined in s. 55(b)(2) of the Internal Revenue Code, if the 67 taxpayer pays tax under s. 220.11(3). 68 3. In the case of a regulated investment company or real 69 estate investment trust, an amount equal to the excess of the 70 net long-term capital gain for the taxable year over the amount 71 of the capital gain dividends attributable to the taxable year. 72 4. That portion of the wages or salaries paid or incurred 73 for the taxable year which is equal to the amount of the credit 74 allowable for the taxable year under s. 220.181. This 75 subparagraph shall expire on the date specified in s. 290.016 76 for the expiration of the Florida Enterprise Zone Act. 77 5. That portion of the ad valorem school taxes paid or 78 incurred for the taxable year which is equal to the amount of 79 the credit allowable for the taxable year under s. 220.182. This 80 subparagraph shall expire on the date specified in s. 290.016 81 for the expiration of the Florida Enterprise Zone Act. 82 6. The amount taken as a credit under s. 220.195 which 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 that whichholds 89 a pari-mutuel permit and that whichis exempt from federal 90 income tax as a farmers’ cooperative, an amount equal to the 91 excess of the gross income attributable to the pari-mutuel 92 operations over the 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 9 ninepercent 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 under 99 s. 220.1875. The addition in this subparagraph is intended to 100 ensure that the same amount is not allowed for the tax purposes 101 of this state as both a deduction from income and a credit 102 against the tax. This addition is not intended to result in 103 adding the same expense back to income more than once. 104 12. The amount taken as a credit for the taxable year under 105 s. 220.192. 106 13. The amount taken as a credit for the taxable year under 107 s. 220.193. 108 14. Any portion of a qualified investment, as defined in s. 109 288.9913, 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 pursuant to s. 220.194. 116 17. The amount taken as a credit for the taxable year under 117 s. 220.196. The addition in this subparagraph is intended to 118 ensure that the same amount is not allowed for the tax purposes 119 of this state as both a deduction from income and a credit 120 against the tax. The addition is not intended to result in 121 adding the same expense back to income more than once. 122 18. The amount taken as a credit for the taxable year under 123 s. 220.197. 124 Section 3. Section 220.197, Florida Statutes, is created to 125 read: 126 220.197 Tax credit for employment and support of employees 127 serving as family caregivers.— 128 (1) As used in this section, the term: 129 (a) “Caregiver-friendly employment policy” means a 130 business’s written policy that accommodates the employment and 131 personal needs of employees who must serve as family caregivers 132 and that provides both of the following: 133 1. Work flexibility for employees who are family caregivers 134 so they may balance work responsibilities with caring for their 135 disabled family members or elderly family members. Such policy 136 includes, but is not limited to, flexible work schedules and 137 telework. As used in this subparagraph, the term “telework” 138 means a work arrangement allowing an employee to conduct all or 139 some of his or her work away from the worksite during all or a 140 portion of the employee’s established work hours on a regular 141 basis. 142 2. Mental health support for family caregivers, which may 143 include, but is not limited to, counseling and psychotherapy 144 services provided at the workplace by a person licensed under 145 chapter 491. 146 (b) “Disabled family member” means a person who is a 147 relative of a family caregiver and who is diagnosed by a 148 physician licensed under chapter 458 or chapter 459 with a 149 condition of physical or mental incapacitation due to a 150 developmental disability, organic brain damage, or mental 151 illness, or who is diagnosed by the physician as having one or 152 more physical or mental limitations that restrict the person’s 153 ability to perform the normal activities of daily living. 154 (c) “Elderly family member” means a person who is a 155 relative of a family caregiver, is 65 years of age or older, and 156 is diagnosed by a physician licensed under chapter 458 or 157 chapter 459 as suffering from the infirmities of aging as 158 manifested by advanced age or organic brain damage or other 159 physical, mental, or emotional dysfunction, to the extent that 160 the ability of the person to provide adequately for his or her 161 own care or protection is impaired. 162 (d) “Family caregiver” means a person who has been 163 entrusted with or who has assumed responsibility for the care of 164 a disabled family member or an elderly family member. 165 (2) Pursuant to this section, a business is qualified for a 166 credit against the tax imposed by this chapter if the business: 167 (a) Is certified by the department as having a caregiver 168 friendly employment policy; and 169 (b) Has employed, for a minimum of 1 year as of the end of 170 the previous taxable year, at least one employee who is a family 171 caregiver. 172 (3) For taxable years beginning on or after January 1, 173 2019, a qualified business shall receive a tax credit for 174 previously paid corporate income taxes under this chapter equal 175 to 12.5 percent of the amount of wages paid by the business in 176 the previous taxable year to all employees who were family 177 caregivers and who were employed by the business for at least 1 178 year as of the end of the previous taxable year. The credit may 179 be taken only as a deduction on a corporate income tax return 180 and may not be received as a refund of taxes previously paid. 181 The credit taken in any taxable year may not exceed 50 percent 182 of the qualified business’ remaining net income tax liability 183 under this chapter after all other credits have been applied 184 under s. 220.02(8). 185 (4) To qualify for the credit under this section, a 186 business must apply to the department on a form approved by the 187 department. The application must include all information 188 required by the department to verify the business’ qualification 189 under subsection (2). 190 (5) Within 30 business days after receipt of the 191 application, the department shall notify the applicant in 192 writing as to whether the application has been approved or 193 deemed insufficient to support the credit. The department shall 194 identify any insufficiency in the written notice. If the 195 application is deemed insufficient, the applicant may reapply 196 for the credit within 90 calendar days after its receipt of the 197 written notice. 198 (6) If the credit approved under this section is not fully 199 used in a taxable year, the unused amount may be carried forward 200 for no more than 5 taxable years. The carryover credit may be 201 used if the tax imposed by this chapter for such taxable year 202 exceeds the credit under this section after the business applies 203 other credits and unused credit carryovers in the order provided 204 in s. 220.02(8). 205 (7) The department may adopt rules to administer this 206 section. 207 Section 4. This act shall take effect July 1, 2018.