Florida Senate - 2020                          SENATOR AMENDMENT
       Bill No. CS/HB 7097, 1st Eng.
       
       
       
       
       
       
                                Ì859456OÎ859456                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 2c/F/2R         .                                
             03/12/2020 05:13 PM       .                                
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       Senator Rodriguez moved the following:
       
    1         Senate Amendment to Substitute Amendment (271678) (with
    2  title amendment)
    3  
    4         Between lines 1782 and 1783
    5  insert:
    6         Section 37. Effective January 1, 2021, paragraph (z) of
    7  subsection (1) of section 220.03, Florida Statutes, is amended,
    8  and paragraphs (gg), (hh), and (ii) are added to that
    9  subsection, to read:
   10         220.03 Definitions.—
   11         (1) SPECIFIC TERMS.—When used in this code, and when not
   12  otherwise distinctly expressed or manifestly incompatible with
   13  the intent thereof, the following terms shall have the following
   14  meanings:
   15         (z) “Taxpayer” means any corporation subject to the tax
   16  imposed by this code, and includes all corporations that are
   17  members of a water’s edge group for which a consolidated return
   18  is filed under s. 220.131. However, the term “taxpayer” does not
   19  include a corporation having no individuals, (including
   20  individuals employed by an affiliate,) receiving compensation in
   21  this state as defined in s. 220.15 when the only property owned
   22  or leased by the said corporation, (including an affiliate,) in
   23  this state is located at the premises of a printer with which it
   24  has contracted for printing, if such property consists of the
   25  final printed product, property which becomes a part of the
   26  final printed product, or property from which the printed
   27  product is produced.
   28         (gg)“Tax haven” means a jurisdiction to which any of the
   29  following apply for a particular taxable year:
   30         1. It is identified by the Organization for Economic Co
   31  operation and Development as a tax haven or as having harmful
   32  tax practices or a preferential tax regime.
   33         2.It is a jurisdiction that does not impose any, or
   34  imposes only a nominal, effective tax on relevant income.
   35         3.It has laws or practices that prevent the effective
   36  exchange of information for tax purposes with other governments
   37  regarding taxpayers who are subject to, or who are benefiting
   38  from, the tax regime.
   39         4.It lacks transparency. For purposes of this
   40  subparagraph, a tax regime lacks transparency if the details of
   41  legislative, legal, or administrative requirements are not open
   42  to public scrutiny and apparent or are not consistently applied
   43  among similarly situated taxpayers.
   44         5.It facilitates the establishment of foreign-owned
   45  entities without the need for a local substantive presence or
   46  prohibits the entities from having any commercial impact on the
   47  local economy.
   48         6.It explicitly or implicitly excludes the jurisdiction’s
   49  resident taxpayers from taking advantage of the tax regime’s
   50  benefits or prohibits enterprises that benefit from the regime
   51  from operating in the jurisdiction’s domestic market.
   52         7.It has created a tax regime that is favorable for tax
   53  avoidance based on an overall assessment of relevant factors,
   54  including whether the jurisdiction has a significant untaxed
   55  offshore financial or other services sector relative to its
   56  overall economy.
   57         (hh)Tax regime” means a set or system of rules, laws,
   58  regulations, or practices by which taxes are imposed on any
   59  person, corporation, or entity or on any income, property,
   60  incident, indicia, or activity pursuant to government authority.
   61         (ii)“Water’s edge group” means a group of corporations
   62  related through common ownership whose business activities are
   63  integrated with, are dependent upon, or contribute to a flow of
   64  value among members of the group.
   65         Section 38. Effective January 1, 2021, section 220.13,
   66  Florida Statutes, is amended to read:
   67         220.13 “Adjusted federal income” defined.—
   68         (1) The term “adjusted federal income” means an amount
   69  equal to the taxpayer’s taxable income as defined in subsection
   70  (2), or such taxable income of a water’s edge group more than
   71  one taxpayer as provided in s. 220.1363 s. 220.131, for the
   72  taxable year, adjusted as follows:
   73         (a) Additions.—There shall be added to such taxable income:
   74         1.a. The amount of any tax upon or measured by income,
   75  excluding taxes based on gross receipts or revenues, paid or
   76  accrued as a liability to the District of Columbia or any state
   77  of the United States which is deductible from gross income in
   78  the computation of taxable income for the taxable year.
   79         b. Notwithstanding sub-subparagraph a., if a credit taken
   80  under s. 220.1875 is added to taxable income in a previous
   81  taxable year under subparagraph 11. and is taken as a deduction
   82  for federal tax purposes in the current taxable year, the amount
   83  of the deduction allowed shall not be added to taxable income in
   84  the current year. The exception in this sub-subparagraph is
   85  intended to ensure that the credit under s. 220.1875 is added in
   86  the applicable taxable year and does not result in a duplicate
   87  addition in a subsequent year.
   88         2. The amount of interest which is excluded from taxable
   89  income under s. 103(a) of the Internal Revenue Code or any other
   90  federal law, less the associated expenses disallowed in the
   91  computation of taxable income under s. 265 of the Internal
   92  Revenue Code or any other law, excluding 60 percent of any
   93  amounts included in alternative minimum taxable income, as
   94  defined in s. 55(b)(2) of the Internal Revenue Code, if the
   95  taxpayer pays tax under s. 220.11(3).
   96         3. In the case of a regulated investment company or real
   97  estate investment trust, an amount equal to the excess of the
   98  net long-term capital gain for the taxable year over the amount
   99  of the capital gain dividends attributable to the taxable year.
  100         4. That portion of the wages or salaries paid or incurred
  101  for the taxable year which is equal to the amount of the credit
  102  allowable for the taxable year under s. 220.181. This
  103  subparagraph shall expire on the date specified in s. 290.016
  104  for the expiration of the Florida Enterprise Zone Act.
  105         5. That portion of the ad valorem school taxes paid or
  106  incurred for the taxable year which is equal to the amount of
  107  the credit allowable for the taxable year under s. 220.182. This
  108  subparagraph shall expire on the date specified in s. 290.016
  109  for the expiration of the Florida Enterprise Zone Act.
  110         6. The amount taken as a credit under s. 220.195 which is
  111  deductible from gross income in the computation of taxable
  112  income for the taxable year.
  113         7. That portion of assessments to fund a guaranty
  114  association incurred for the taxable year which is equal to the
  115  amount of the credit allowable for the taxable year.
  116         8. In the case of a nonprofit corporation which holds a
  117  pari-mutuel permit and which is exempt from federal income tax
  118  as a farmers’ cooperative, an amount equal to the excess of the
  119  gross income attributable to the pari-mutuel operations over the
  120  attributable expenses for the taxable year.
  121         9. The amount taken as a credit for the taxable year under
  122  s. 220.1895.
  123         10. Up to nine percent of the eligible basis of any
  124  designated project which is equal to the credit allowable for
  125  the taxable year under s. 220.185.
  126         11. The amount taken as a credit for the taxable year under
  127  s. 220.1875. The addition in this subparagraph is intended to
  128  ensure that the same amount is not allowed for the tax purposes
  129  of this state as both a deduction from income and a credit
  130  against the tax. This addition is not intended to result in
  131  adding the same expense back to income more than once.
  132         12. The amount taken as a credit for the taxable year under
  133  s. 220.192.
  134         13. The amount taken as a credit for the taxable year under
  135  s. 220.193.
  136         14. Any portion of a qualified investment, as defined in s.
  137  288.9913, which is claimed as a deduction by the taxpayer and
  138  taken as a credit against income tax pursuant to s. 288.9916.
  139         15. The costs to acquire a tax credit pursuant to s.
  140  288.1254(5) that are deducted from or otherwise reduce federal
  141  taxable income for the taxable year.
  142         16. The amount taken as a credit for the taxable year
  143  pursuant to s. 220.194.
  144         17. The amount taken as a credit for the taxable year under
  145  s. 220.196. The addition in this subparagraph is intended to
  146  ensure that the same amount is not allowed for the tax purposes
  147  of this state as both a deduction from income and a credit
  148  against the tax. The addition is not intended to result in
  149  adding the same expense back to income more than once.
  150         (b) Subtractions.—
  151         1. There shall be subtracted from such taxable income:
  152         a. The net operating loss deduction allowable for federal
  153  income tax purposes under s. 172 of the Internal Revenue Code
  154  for the taxable year, except that any net operating loss that is
  155  transferred pursuant to s. 220.194(6) may not be deducted by the
  156  seller,
  157         b. The net capital loss allowable for federal income tax
  158  purposes under s. 1212 of the Internal Revenue Code for the
  159  taxable year,
  160         c. The excess charitable contribution deduction allowable
  161  for federal income tax purposes under s. 170(d)(2) of the
  162  Internal Revenue Code for the taxable year, and
  163         d. The excess contributions deductions allowable for
  164  federal income tax purposes under s. 404 of the Internal Revenue
  165  Code for the taxable year.
  166  
  167  However, a net operating loss and a capital loss shall never be
  168  carried back as a deduction to a prior taxable year, but all
  169  deductions attributable to such losses shall be deemed net
  170  operating loss carryovers and capital loss carryovers,
  171  respectively, and treated in the same manner, to the same
  172  extent, and for the same time periods as are prescribed for such
  173  carryovers in ss. 172 and 1212, respectively, of the Internal
  174  Revenue Code. A deduction is not allowed for net operating
  175  losses, net capital losses, or excess contribution deductions
  176  under 26 U.S.C. ss. 170(d)(2), 172, 1212, and 404 for a member
  177  of a water’s edge group which is not a United States member.
  178  Carryovers of net operating losses, net capital losses, or
  179  excess contribution deductions under 26 U.S.C. ss. 170(d)(2),
  180  172, 1212, and 404 may be subtracted only by the member of the
  181  water’s edge group which generates a carryover.
  182         2. There shall be subtracted from such taxable income any
  183  amount to the extent included therein the following:
  184         a. Dividends treated as received from sources without the
  185  United States, as determined under s. 862 of the Internal
  186  Revenue Code.
  187         b. All amounts included in taxable income under s. 78, s.
  188  951, or s. 951A of the Internal Revenue Code.
  189  
  190  However, any amount subtracted under this subparagraph is
  191  allowed only to the extent such amount is not deductible in
  192  determining federal taxable income. As to any amount subtracted
  193  under this subparagraph, there shall be added to such taxable
  194  income all expenses deducted on the taxpayer’s return for the
  195  taxable year which are attributable, directly or indirectly, to
  196  such subtracted amount. Further, no amount shall be subtracted
  197  with respect to dividends paid or deemed paid by a Domestic
  198  International Sales Corporation.
  199         3.Amounts received by a member of a water’s edge group as
  200  dividends paid by another member of the water’s edge group must
  201  be subtracted from the taxable income to the extent that the
  202  dividends are included in the taxable income.
  203         4.3. In computing “adjusted federal income” for taxable
  204  years beginning after December 31, 1976, there shall be allowed
  205  as a deduction the amount of wages and salaries paid or incurred
  206  within this state for the taxable year for which no deduction is
  207  allowed pursuant to s. 280C(a) of the Internal Revenue Code
  208  (relating to credit for employment of certain new employees).
  209         5.4. There shall be subtracted from such taxable income any
  210  amount of nonbusiness income included therein.
  211         6.5. There shall be subtracted any amount of taxes of
  212  foreign countries allowable as credits for taxable years
  213  beginning on or after September 1, 1985, under s. 901 of the
  214  Internal Revenue Code to any corporation which derived less than
  215  20 percent of its gross income or loss for its taxable year
  216  ended in 1984 from sources within the United States, as
  217  described in s. 861(a)(2)(A) of the Internal Revenue Code, not
  218  including credits allowed under ss. 902 and 960 of the Internal
  219  Revenue Code, withholding taxes on dividends within the meaning
  220  of sub-subparagraph 2.a., and withholding taxes on royalties,
  221  interest, technical service fees, and capital gains.
  222         7.6. Notwithstanding any other provision of this code,
  223  except with respect to amounts subtracted pursuant to
  224  subparagraphs 1. and 4. 3., any increment of any apportionment
  225  factor which is directly related to an increment of gross
  226  receipts or income which is deducted, subtracted, or otherwise
  227  excluded in determining adjusted federal income shall be
  228  excluded from both the numerator and denominator of such
  229  apportionment factor. Further, all valuations made for
  230  apportionment factor purposes shall be made on a basis
  231  consistent with the taxpayer’s method of accounting for federal
  232  income tax purposes.
  233         (c) Installment sales occurring after October 19, 1980.—
  234         1. In the case of any disposition made after October 19,
  235  1980, the income from an installment sale shall be taken into
  236  account for the purposes of this code in the same manner that
  237  such income is taken into account for federal income tax
  238  purposes.
  239         2. Any taxpayer who regularly sells or otherwise disposes
  240  of personal property on the installment plan and reports the
  241  income therefrom on the installment method for federal income
  242  tax purposes under s. 453(a) of the Internal Revenue Code shall
  243  report such income in the same manner under this code.
  244         (d) Nonallowable deductions.—A deduction for net operating
  245  losses, net capital losses, or excess contributions deductions
  246  under ss. 170(d)(2), 172, 1212, and 404 of the Internal Revenue
  247  Code which has been allowed in a prior taxable year for Florida
  248  tax purposes shall not be allowed for Florida tax purposes,
  249  notwithstanding the fact that such deduction has not been fully
  250  utilized for federal tax purposes.
  251         (e) Adjustments related to federal acts.—Taxpayers shall be
  252  required to make the adjustments prescribed in this paragraph
  253  for Florida tax purposes with respect to certain tax benefits
  254  received pursuant to the Economic Stimulus Act of 2008, the
  255  American Recovery and Reinvestment Act of 2009, the Small
  256  Business Jobs Act of 2010, the Tax Relief, Unemployment
  257  Insurance Reauthorization, and Job Creation Act of 2010, the
  258  American Taxpayer Relief Act of 2012, the Tax Increase
  259  Prevention Act of 2014, the Consolidated Appropriations Act,
  260  2016, and the Tax Cuts and Jobs Act of 2017.
  261         1. There shall be added to such taxable income an amount
  262  equal to 100 percent of any amount deducted for federal income
  263  tax purposes as bonus depreciation for the taxable year pursuant
  264  to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
  265  amended by s. 103 of Pub. L. No. 110-185, s. 1201 of Pub. L. No.
  266  111-5, s. 2022 of Pub. L. No. 111-240, s. 401 of Pub. L. No.
  267  111-312, s. 331 of Pub. L. No. 112-240, s. 125 of Pub. L. No.
  268  113-295, s. 143 of Division Q of Pub. L. No. 114-113, and s.
  269  13201 of Pub. L. No. 115-97, for property placed in service
  270  after December 31, 2007, and before January 1, 2027. For the
  271  taxable year and for each of the 6 subsequent taxable years,
  272  there shall be subtracted from such taxable income an amount
  273  equal to one-seventh of the amount by which taxable income was
  274  increased pursuant to this subparagraph, notwithstanding any
  275  sale or other disposition of the property that is the subject of
  276  the adjustments and regardless of whether such property remains
  277  in service in the hands of the taxpayer.
  278         2. There shall be added to such taxable income an amount
  279  equal to 100 percent of any amount in excess of $128,000
  280  deducted for federal income tax purposes for the taxable year
  281  pursuant to s. 179 of the Internal Revenue Code of 1986, as
  282  amended by s. 102 of Pub. L. No. 110-185, s. 1202 of Pub. L. No.
  283  111-5, s. 2021 of Pub. L. No. 111-240, s. 402 of Pub. L. No.
  284  111-312, s. 315 of Pub. L. No. 112-240, and s. 127 of Pub. L.
  285  No. 113-295, for taxable years beginning after December 31,
  286  2007, and before January 1, 2015. For the taxable year and for
  287  each of the 6 subsequent taxable years, there shall be
  288  subtracted from such taxable income one-seventh of the amount by
  289  which taxable income was increased pursuant to this
  290  subparagraph, notwithstanding any sale or other disposition of
  291  the property that is the subject of the adjustments and
  292  regardless of whether such property remains in service in the
  293  hands of the taxpayer.
  294         3. There shall be added to such taxable income an amount
  295  equal to the amount of deferred income not included in such
  296  taxable income pursuant to s. 108(i)(1) of the Internal Revenue
  297  Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
  298  shall be subtracted from such taxable income an amount equal to
  299  the amount of deferred income included in such taxable income
  300  pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
  301  as amended by s. 1231 of Pub. L. No. 111-5.
  302         4. Subtractions available under this paragraph may be
  303  transferred to the surviving or acquiring entity following a
  304  merger or acquisition and used in the same manner and with the
  305  same limitations as specified by this paragraph.
  306         5. The additions and subtractions specified in this
  307  paragraph are intended to adjust taxable income for Florida tax
  308  purposes, and, notwithstanding any other provision of this code,
  309  such additions and subtractions shall be permitted to change a
  310  taxpayer’s net operating loss for Florida tax purposes.
  311         (2) For purposes of this section, a taxpayer’s taxable
  312  income for the taxable year means taxable income as defined in
  313  s. 63 of the Internal Revenue Code and properly reportable for
  314  federal income tax purposes for the taxable year, but subject to
  315  the limitations set forth in paragraph (1)(b) with respect to
  316  the deductions provided by ss. 172 (relating to net operating
  317  losses), 170(d)(2) (relating to excess charitable
  318  contributions), 404(a)(1)(D) (relating to excess pension trust
  319  contributions), 404(a)(3)(A) and (B) (to the extent relating to
  320  excess stock bonus and profit-sharing trust contributions), and
  321  1212 (relating to capital losses) of the Internal Revenue Code,
  322  except that, subject to the same limitations, the term:
  323         (a) “Taxable income,” in the case of a life insurance
  324  company subject to the tax imposed by s. 801 of the Internal
  325  Revenue Code, means life insurance company taxable income;
  326  however, for purposes of this code, the total of any amounts
  327  subject to tax under s. 815(a)(2) of the Internal Revenue Code
  328  pursuant to s. 801(c) of the Internal Revenue Code shall not
  329  exceed, cumulatively, the total of any amounts determined under
  330  s. 815(c)(2) of the Internal Revenue Code of 1954, as amended,
  331  from January 1, 1972, to December 31, 1983;
  332         (b) “Taxable income,” in the case of an insurance company
  333  subject to the tax imposed by s. 831(b) of the Internal Revenue
  334  Code, means taxable investment income;
  335         (c) “Taxable income,” in the case of an insurance company
  336  subject to the tax imposed by s. 831(a) of the Internal Revenue
  337  Code, means insurance company taxable income;
  338         (d) “Taxable income,” in the case of a regulated investment
  339  company subject to the tax imposed by s. 852 of the Internal
  340  Revenue Code, means investment company taxable income;
  341         (e) “Taxable income,” in the case of a real estate
  342  investment trust subject to the tax imposed by s. 857 of the
  343  Internal Revenue Code, means the income subject to tax, computed
  344  as provided in s. 857 of the Internal Revenue Code;
  345         (f) “Taxable income,” in the case of a corporation which is
  346  a member of an affiliated group of corporations filing a
  347  consolidated income tax return for the taxable year for federal
  348  income tax purposes, means taxable income of such corporation
  349  for federal income tax purposes as if such corporation had filed
  350  a separate federal income tax return for the taxable year and
  351  each preceding taxable year for which it was a member of an
  352  affiliated group, unless a consolidated return for the taxpayer
  353  and others is required or elected under s. 220.131;
  354         (g) “Taxable income,” in the case of a cooperative
  355  corporation or association, means the taxable income of such
  356  organization determined in accordance with the provisions of ss.
  357  1381-1388 of the Internal Revenue Code;
  358         (h) “Taxable income,” in the case of an organization which
  359  is exempt from the federal income tax by reason of s. 501(a) of
  360  the Internal Revenue Code, means its unrelated business taxable
  361  income as determined under s. 512 of the Internal Revenue Code;
  362         (i) “Taxable income,” in the case of a corporation for
  363  which there is in effect for the taxable year an election under
  364  s. 1362(a) of the Internal Revenue Code, means the amounts
  365  subject to tax under s. 1374 or s. 1375 of the Internal Revenue
  366  Code for each taxable year;
  367         (j) “Taxable income,” in the case of a limited liability
  368  company, other than a limited liability company classified as a
  369  partnership for federal income tax purposes, as defined in and
  370  organized pursuant to chapter 605 or qualified to do business in
  371  this state as a foreign limited liability company or other than
  372  a similar limited liability company classified as a partnership
  373  for federal income tax purposes and created as an artificial
  374  entity pursuant to the statutes of the United States or any
  375  other state, territory, possession, or jurisdiction, if such
  376  limited liability company or similar entity is taxable as a
  377  corporation for federal income tax purposes, means taxable
  378  income determined as if such limited liability company were
  379  required to file or had filed a federal corporate income tax
  380  return under the Internal Revenue Code;
  381         (k) “Taxable income,” in the case of a taxpayer liable for
  382  the alternative minimum tax as defined in s. 55 of the Internal
  383  Revenue Code, means the alternative minimum taxable income as
  384  defined in s. 55(b)(2) of the Internal Revenue Code, less the
  385  exemption amount computed under s. 55(d) of the Internal Revenue
  386  Code. A taxpayer is not liable for the alternative minimum tax
  387  unless the taxpayer’s federal tax return, or related federal
  388  consolidated tax return, if included in a consolidated return
  389  for federal tax purposes, reflect a liability on the return
  390  filed for the alternative minimum tax as defined in s. 55(b)(2)
  391  of the Internal Revenue Code;
  392         (l) “Taxable income,” in the case of a taxpayer whose
  393  taxable income is not otherwise defined in this subsection,
  394  means the sum of amounts to which a tax rate specified in s. 11
  395  of the Internal Revenue Code plus the amount to which a tax rate
  396  specified in s. 1201(a)(2) of the Internal Revenue Code are
  397  applied for federal income tax purposes.
  398         Section 39. Effective January 1, 2021, section 220.131,
  399  Florida Statutes, is repealed.
  400         Section 40. Effective January 1, 2021, section 220.136,
  401  Florida Statutes, is created to read:
  402         220.136 Determination of the members of a water’s edge
  403  group.—
  404         (1)A corporation having 50 percent or more of its
  405  outstanding voting stock directly or indirectly owned or
  406  controlled by a water’s edge group is presumed to be a member of
  407  the water’s edge group. A corporation having less than 50
  408  percent of its outstanding voting stock directly or indirectly
  409  owned or controlled by a water’s edge group is a member of the
  410  water’s edge group if the business activities of the corporation
  411  show that the corporation is a member of the water’s edge group.
  412  All of the income of a corporation that is a member of a water’s
  413  edge group is presumed to be unitary. For purposes of this
  414  subsection, the attribution rules of 26 U.S.C. s. 318 must be
  415  used to determine whether voting stock is indirectly owned.
  416         (2)(a)A corporation that conducts business outside the
  417  United States is not a member of a water’s edge group if 80
  418  percent or more of the corporation’s property and payroll, as
  419  determined by the apportionment factors described in ss. 220.15
  420  and 220.1363, may be assigned to locations outside of the United
  421  States. However, such a corporation that is incorporated in a
  422  tax haven may be a member of a water’s edge group pursuant to
  423  subsection (1). This subsection does not exempt a corporation
  424  that is not a member of a water’s edge group from this chapter.
  425         (b) As used in this subsection, the term “United States”
  426  means the 50 states, the District of Columbia, and Puerto Rico.
  427         (c)The apportionment factors described in ss. 220.1363 and
  428  220.15 must be used to determine whether a special industry
  429  corporation has engaged in a sufficient amount of activities
  430  outside of the United States to exclude it from treatment as a
  431  member of a water’s edge group.
  432         Section 41. Effective January 1, 2021, section 220.1363,
  433  Florida Statutes, is created to read:
  434         220.1363 Water’s edge groups; special requirements.—
  435         (1) For purposes of this section, the term “water’s edge
  436  reporting method” is a method to determine the taxable business
  437  profits of a group of entities conducting a unitary business.
  438  Under this method, the net income of the entities must be added
  439  together, along with the additions and subtractions under s.
  440  220.13, and apportioned to this state as a single taxpayer under
  441  ss. 220.15 and 220.151. However, each special industry member
  442  included in a water’s edge group return which would otherwise be
  443  permitted to use a special method of apportionment under s.
  444  220.151 shall convert its single-factor apportionment to a
  445  three-factor apportionment of property, payroll, and sales. The
  446  special industry member shall calculate the denominator of its
  447  property, payroll, and sales factors in the same manner as those
  448  denominators are calculated by members that are not special
  449  industry members. The numerator of its sales, property, and
  450  payroll factors is the product of the denominator of each factor
  451  multiplied by the premiums or revenue-miles-factor ratio
  452  otherwise applicable under s. 220.151.
  453         (2)All members of a water’s edge group must use the
  454  water’s edge reporting method, under which:
  455         (a)Adjusted federal income, for purposes of s. 220.12,
  456  means the sum of adjusted federal income of all members of the
  457  water’s edge group as determined for a concurrent taxable year.
  458         (b)The numerators and denominators of the apportionment
  459  factors must be calculated for all members of the water’s edge
  460  group combined.
  461         (c)Intercompany sales transactions between members of the
  462  water’s edge group are not included in the numerator or
  463  denominator of the sales factor under ss. 220.15 and 220.151,
  464  regardless of whether indicia of a sale exist.
  465         (d)For sales of intangibles, including, but not limited
  466  to, accounts receivable, notes, bonds, and stock, which are made
  467  to entities outside the group, only the net proceeds are
  468  included in the numerator and denominator of the sales factor.
  469         (e)Sales that are not allocated or apportioned to any
  470  taxing jurisdiction, otherwise known as “nowhere sales,” may not
  471  be included in the numerator or denominator of the sales factor.
  472         (f)The income attributable to the Florida activities of a
  473  corporation that is exempt from taxation under the Interstate
  474  Income Act of 1959, Pub. L. No. 86-272, is excluded from the
  475  apportionment factor numerators in the calculation of corporate
  476  income tax, even if another member of the water’s edge group has
  477  nexus with this state and is subject to tax.
  478  
  479  As used in this subsection, the term “sale” includes, but is not
  480  limited to, loans, payments for the use of intangibles,
  481  dividends, and management fees.
  482         (3)(a)If a parent corporation is a member of the water’s
  483  edge group and has nexus with this state, a single water’s edge
  484  group return must be filed in the name and under the federal
  485  employer identification number of the parent corporation. If the
  486  water’s edge group does not have a parent corporation, if the
  487  parent corporation is not a member of the water’s edge group, or
  488  if the parent corporation does not have nexus with this state,
  489  then the members of the water’s edge group must choose a member
  490  subject to the tax imposed by this chapter to file the return.
  491  The members of the water’s edge group may not choose another
  492  member to file a corporate income tax return in subsequent years
  493  unless the filing member does not maintain nexus with this state
  494  or does not remain a member of the water’s edge group. The
  495  return must be signed by an authorized officer of the filing
  496  member as the agent for the water’s edge group.
  497         (b)If members of a water’s edge group have different
  498  taxable years, the taxable year of a majority of the members of
  499  the water’s edge group is the taxable year of the water’s edge
  500  group. If the taxable years of a majority of the members of a
  501  water’s edge group do not correspond, the taxable year of the
  502  member that must file the return for the water’s edge group is
  503  the taxable year of the water’s edge group.
  504         (c)1.A member of a water’s edge group having a taxable
  505  year that does not correspond to the taxable year of the water’s
  506  edge group shall determine its income for inclusion on the tax
  507  return for the water’s edge group. The member shall use:
  508         a.The precise amount of taxable income received during the
  509  months corresponding to the taxable year of the water’s edge
  510  group if the precise amount can be readily determined from the
  511  member’s books and records.
  512         b.The taxable income of the member converted to conform to
  513  the taxable year of the water’s edge group on the basis of the
  514  number of months falling within the taxable year of the water’s
  515  edge group. For example, if the taxable year of the water’s edge
  516  group is a calendar year and a member operates on a fiscal year
  517  ending on April 30, the income of the member must include 8/12
  518  of the income from the current taxable year and 4/12 of the
  519  income from the preceding taxable year. This method to determine
  520  the income of a member may be used only if the return can be
  521  timely filed after the end of the taxable year of the water’s
  522  edge group.
  523         c.The taxable income of the member during its taxable year
  524  that ends within the taxable year of the water’s edge group.
  525         2.The method of determining the income of a member of a
  526  water’s edge group whose taxable year does not correspond to the
  527  taxable year of the water’s edge group may not change as long as
  528  the member remains a member of the water’s edge group. The
  529  apportionment factors for the member must be applied to the
  530  income of the member for the taxable year of the water’s edge
  531  group.
  532         (4)(a)A water’s edge group return must include a
  533  computational schedule that:
  534         1.Combines the federal income of all members of the
  535  water’s edge group;
  536         2.Shows all intercompany eliminations;
  537         3.Shows Florida additions and subtractions under s.
  538  220.13; and
  539         4.Shows the calculation of the combined apportionment
  540  factors.
  541         (b)In addition to its return, a water’s edge group shall
  542  also file a domestic disclosure spreadsheet. The spreadsheet
  543  must fully disclose:
  544         1.The income reported to each state;
  545         2.The state tax liability;
  546         3.The method used for apportioning or allocating income to
  547  the various states; and
  548         4.Other information required by department rule in order
  549  to determine the proper amount of tax due to each state and to
  550  identify the water’s edge group.
  551         (5)The department may adopt rules and forms to administer
  552  this section. The Legislature intends to grant the department
  553  extensive authority to adopt rules and forms describing and
  554  defining principles for determining the existence of a water’s
  555  edge business, definitions of common control, methods of
  556  reporting, and related forms, principles, and other definitions.
  557         Section 42. Effective January 1, 2021, section 220.14,
  558  Florida Statutes, is amended to read:
  559         220.14 Exemption.—
  560         (1) In computing a taxpayer’s liability for tax under this
  561  code, there shall be exempt from the tax $50,000 of net income
  562  as defined in s. 220.12 or such lesser amount as will, without
  563  increasing the taxpayer’s federal income tax liability, provide
  564  the state with an amount under this code which is equal to the
  565  maximum federal income tax credit which may be available from
  566  time to time under federal law.
  567         (2) In the case of a taxable year for a period of less than
  568  12 months, the exemption allowed by this section must shall be
  569  prorated on the basis of the number of days in such year to 365
  570  days or, in a leap year, 366 days.
  571         (3) Only one exemption shall be allowed to taxpayers filing
  572  a water’s edge group consolidated return under this code.
  573         (4) Notwithstanding any other provision of this code, not
  574  more than one exemption under this section may be allowed to the
  575  Florida members of a controlled group of corporations, as
  576  defined in s. 1563 of the Internal Revenue Code with respect to
  577  taxable years ending on or after December 31, 1970, filing
  578  separate returns under this code. The exemption described in
  579  this section shall be divided equally among such Florida members
  580  of the group, unless all of such members consent, at such time
  581  and in such manner as the department shall by regulation
  582  prescribe, to an apportionment plan providing for an unequal
  583  allocation of such exemption.
  584         Section 43. Effective January 1, 2021, paragraph (c) of
  585  subsection (5) of section 220.15, Florida Statutes, is amended
  586  to read:
  587         220.15 Apportionment of adjusted federal income.—
  588         (5) The sales factor is a fraction the numerator of which
  589  is the total sales of the taxpayer in this state during the
  590  taxable year or period and the denominator of which is the total
  591  sales of the taxpayer everywhere during the taxable year or
  592  period.
  593         (c) Sales of a financial organization, including, but not
  594  limited to, banking and savings institutions, investment
  595  companies, real estate investment trusts, and brokerage
  596  companies, occur in this state if derived from:
  597         1. Fees, commissions, or other compensation for financial
  598  services rendered within this state;
  599         2. Gross profits from trading in stocks, bonds, or other
  600  securities managed within this state;
  601         3. Interest received within this state, other than interest
  602  from loans secured by mortgages, deeds of trust, or other liens
  603  upon real or tangible personal property located without this
  604  state, and dividends received within this state;
  605         4. Interest charged to customers at places of business
  606  maintained within this state for carrying debit balances of
  607  margin accounts, without deduction of any costs incurred in
  608  carrying such accounts;
  609         5. Interest, fees, commissions, or other charges or gains
  610  from loans secured by mortgages, deeds of trust, or other liens
  611  upon real or tangible personal property located in this state or
  612  from installment sale agreements originally executed by a
  613  taxpayer or the taxpayer’s agent to sell real or tangible
  614  personal property located in this state;
  615         6. Rents from real or tangible personal property located in
  616  this state; or
  617         7. Any other gross income, including other interest,
  618  resulting from the operation as a financial organization within
  619  this state.
  620  
  621  In computing the amounts under this paragraph, any amount
  622  received by a member of an affiliated group (determined under s.
  623  1504(a) of the Internal Revenue Code, but without reference to
  624  whether any such corporation is an “includable corporation”
  625  under s. 1504(b) of the Internal Revenue Code) from another
  626  member of such group shall be included only to the extent such
  627  amount exceeds expenses of the recipient directly related
  628  thereto.
  629         Section 44. Effective January 1, 2021, paragraph (f) of
  630  subsection (1) of section 220.183, Florida Statutes, is amended
  631  to read:
  632         220.183 Community contribution tax credit.—
  633         (1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
  634  CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
  635  SPENDING.—
  636         (f) A taxpayer who files a Florida consolidated return as a
  637  member of an affiliated group pursuant to s. 220.131(1) may be
  638  allowed the credit on a consolidated return basis.
  639         Section 45. Effective January 1, 2021, paragraphs (b), (c),
  640  and (d) of subsection (2) of section 220.1845, Florida Statutes,
  641  are amended to read:
  642         220.1845 Contaminated site rehabilitation tax credit.—
  643         (2) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.—
  644         (b) A tax credit applicant, or multiple tax credit
  645  applicants working jointly to clean up a single site, may not be
  646  granted more than $500,000 per year in tax credits for each site
  647  voluntarily rehabilitated. Multiple tax credit applicants shall
  648  be granted tax credits in the same proportion as their
  649  contribution to payment of cleanup costs. Subject to the same
  650  conditions and limitations as provided in this section, a
  651  municipality, county, or other tax credit applicant which
  652  voluntarily rehabilitates a site may receive not more than
  653  $500,000 per year in tax credits which it can subsequently
  654  transfer subject to the provisions in paragraph (f) (g).
  655         (c) If the credit granted under this section is not fully
  656  used in any one year because of insufficient tax liability on
  657  the part of the corporation, the unused amount may be carried
  658  forward for up to 5 years. The carryover credit may be used in a
  659  subsequent year if the tax imposed by this chapter for that year
  660  exceeds the credit for which the corporation is eligible in that
  661  year after applying the other credits and unused carryovers in
  662  the order provided by s. 220.02(8). If during the 5-year period
  663  the credit is transferred, in whole or in part, pursuant to
  664  paragraph (f) (g), each transferee has 5 years after the date of
  665  transfer to use its credit.
  666         (d) A taxpayer that files a consolidated return in this
  667  state as a member of an affiliated group under s. 220.131(1) may
  668  be allowed the credit on a consolidated return basis up to the
  669  amount of tax imposed upon the consolidated group.
  670         Section 46. Effective January 1, 2021, subsection (2) of
  671  section 220.1875, Florida Statutes, is amended to read:
  672         220.1875 Credit for contributions to eligible nonprofit
  673  scholarship-funding organizations.—
  674         (2) A taxpayer who files a Florida consolidated return as a
  675  member of an affiliated group pursuant to s. 220.131(1) may be
  676  allowed the credit on a consolidated return basis; however, the
  677  total credit taken by the affiliated group is subject to the
  678  limitation established under subsection (1).
  679         Section 47. Effective January 1, 2021, paragraphs (a) and
  680  (c) of subsection (3) of section 220.191, Florida Statutes, are
  681  amended to read:
  682         220.191 Capital investment tax credit.—
  683         (3)(a) Notwithstanding subsection (2), an annual credit
  684  against the tax imposed by this chapter shall be granted to a
  685  qualifying business which establishes a qualifying project
  686  pursuant to subparagraph (1)(g)3., in an amount equal to the
  687  lesser of $15 million or 5 percent of the eligible capital costs
  688  made in connection with a qualifying project, for a period not
  689  to exceed 20 years beginning with the commencement of operations
  690  of the project. The tax credit shall be granted against the
  691  corporate income tax liability of the qualifying business and as
  692  further provided in paragraph (c). The total tax credit provided
  693  pursuant to this subsection shall be equal to no more than 100
  694  percent of the eligible capital costs of the qualifying project.
  695         (c) The credit granted under this subsection may be used in
  696  whole or in part by the qualifying business or any corporation
  697  that is either a member of that qualifying business’s affiliated
  698  group of corporations, is a related entity taxable as a
  699  cooperative under subchapter T of the Internal Revenue Code, or,
  700  if the qualifying business is an entity taxable as a cooperative
  701  under subchapter T of the Internal Revenue Code, is related to
  702  the qualifying business. Any entity related to the qualifying
  703  business may continue to file as a member of a Florida-nexus
  704  consolidated group pursuant to a prior election made under s.
  705  220.131(1), Florida Statutes (1985), even if the parent of the
  706  group changes due to a direct or indirect acquisition of the
  707  former common parent of the group. Any credit can be used by any
  708  of the affiliated companies or related entities referenced in
  709  this paragraph to the same extent as it could have been used by
  710  the qualifying business. However, any such use shall not operate
  711  to increase the amount of the credit or extend the period within
  712  which the credit must be used.
  713         Section 48. Effective January 1, 2021, paragraphs (c) and
  714  (e) of subsection (3) of section 220.193, Florida Statutes, are
  715  amended to read:
  716         220.193 Florida renewable energy production credit.—
  717         (3) An annual credit against the tax imposed by this
  718  section shall be allowed to a taxpayer, based on the taxpayer’s
  719  production and sale of electricity from a new or expanded
  720  Florida renewable energy facility. For a new facility, the
  721  credit shall be based on the taxpayer’s sale of the facility’s
  722  entire electrical production. For an expanded facility, the
  723  credit shall be based on the increases in the facility’s
  724  electrical production that are achieved after May 1, 2012.
  725         (c) If the amount of credits applied for each year exceeds
  726  the amount authorized in paragraph (f) (g), the Department of
  727  Agriculture and Consumer Services shall allocate credits to
  728  qualified applicants based on the following priority:
  729         1. An applicant who places a new facility in operation
  730  after May 1, 2012, shall be allocated credits first, up to a
  731  maximum of $250,000 each, with any remaining credits to be
  732  granted pursuant to subparagraph 3., but if the claims for
  733  credits under this subparagraph exceed the state fiscal year cap
  734  in paragraph (f) (g), credits shall be allocated pursuant to
  735  this subparagraph on a prorated basis based upon each
  736  applicant’s qualified production and sales as a percentage of
  737  total production and sales for all applicants in this category
  738  for the fiscal year.
  739         2. An applicant who does not qualify under subparagraph 1.
  740  but who claims a credit of $50,000 or less shall be allocated
  741  credits next, but if the claims for credits under this
  742  subparagraph, combined with credits allocated in subparagraph
  743  1., exceed the state fiscal year cap in paragraph (f) (g),
  744  credits shall be allocated pursuant to this subparagraph on a
  745  prorated basis based upon each applicant’s qualified production
  746  and sales as a percentage of total qualified production and
  747  sales for all applicants in this category for the fiscal year.
  748         3. An applicant who does not qualify under subparagraph 1.
  749  or subparagraph 2. and an applicant whose credits have not been
  750  fully allocated under subparagraph 1. shall be allocated credits
  751  next. If there is insufficient capacity within the amount
  752  authorized for the state fiscal year in paragraph (f) (g), and
  753  after allocations pursuant to subparagraphs 1. and 2., the
  754  credits allocated under this subparagraph shall be prorated
  755  based upon each applicant’s unallocated claims for qualified
  756  production and sales as a percentage of total unallocated claims
  757  for qualified production and sales of all applicants in this
  758  category, up to a maximum of $1 million per taxpayer per state
  759  fiscal year. If, after application of this $1 million cap, there
  760  is excess capacity under the state fiscal year cap in paragraph
  761  (f) (g) in any state fiscal year, that remaining capacity shall
  762  be used to allocate additional credits with priority given in
  763  the order set forth in this subparagraph and without regard to
  764  the $1 million per taxpayer cap.
  765         (e) A taxpayer that files a consolidated return in this
  766  state as a member of an affiliated group under s. 220.131(1) may
  767  be allowed the credit on a consolidated return basis up to the
  768  amount of tax imposed upon the consolidated group.
  769         Section 49. Effective January 1, 2021, paragraph (a) of
  770  subsection (1) of section 220.27, Florida Statutes, is amended
  771  to read:
  772         220.27 Additional required information.—
  773         (1)(a) Every taxpayer that is required to file a return
  774  under s. 220.22(1) for a taxable year beginning during the 2018
  775  or 2019 calendar years, must submit to the department the
  776  following information for those taxable years using the
  777  application form on the department’s website:
  778         1. The taxpayer’s name, federal taxpayer identification
  779  number, taxable year beginning date, taxable year ending date,
  780  and, for taxable years beginning before January 1, 2021, only,
  781  whether a consolidated return for the taxpayer is required or
  782  elected under s. 220.131.
  783         2. The taxpayer’s NAICS code for business activity that
  784  generates the greatest proportion of gross receipts of the
  785  taxpayer. As used in this paragraph, the term “NAICS” means
  786  those classifications contained in the North American Industry
  787  Classification System, as published in 2007 by the Office of
  788  Management and Budget, Executive Office of the President.
  789         3. The taxpayer’s taxable income as that term is defined in
  790  s. 220.13(2) and the taxpayer’s state apportionment fraction
  791  pursuant to s. 220.15 for the taxable year.
  792         4. The amount of global intangible low-taxed income
  793  included in federal taxable income under s. 951A of the Internal
  794  Revenue Code, and the amount of the related deduction under s.
  795  250 of the Internal Revenue Code, as it pertains to s. 951A of
  796  the Internal Revenue Code.
  797         5. The amount of foreign-derived intangible income computed
  798  for the federal return for the taxable year and the amount of
  799  the related deduction under s. 250 of the Internal Revenue Code,
  800  as it pertains to foreign-derived intangible income.
  801         6. The amount of business interest expense deducted on the
  802  federal return under s. 163 of the Internal Revenue Code,
  803  including any carryover; the amount of current year business
  804  interest expense, including any carryover, which that was not
  805  deducted due to the limitation in s. 163(j) of the Internal
  806  Revenue Code; and the amount of business interest expense
  807  carried over from previous taxable years.
  808         7. The amount of federal net operating loss deduction under
  809  s. 172 of the Internal Revenue Code, applied in determining
  810  federal taxable income and the amount of federal net operating
  811  loss carryover that was not applied due to the limitation in s.
  812  172(a)(2) of the Internal Revenue Code.
  813         8. The total amount of state net operating loss carryover
  814  available after the filing of the return for the taxable year.
  815         9. The total amount of the state alternative minimum tax
  816  credit carryover available after the filing of the return for
  817  the taxable year.
  818         Section 50. Effective January 1, 2021, section 220.28,
  819  Florida Statutes, is created to read:
  820         220.28 Water’s edge group transitional rules.—
  821         (1)For the first taxable year beginning on or after
  822  January 1, 2021, a taxpayer that filed a Florida corporate
  823  income tax return in the preceding taxable year and that is a
  824  member of a water’s edge group shall compute its income together
  825  with all members of its water’s edge group and file a combined
  826  Florida corporate income tax return with all members of its
  827  water’s edge group.
  828         (2)An affiliated group of corporations which filed a
  829  Florida consolidated corporate income tax return pursuant to an
  830  election provided in former s. 220.131 shall cease filing a
  831  Florida consolidated return for taxable years beginning on or
  832  after January 1, 2021, and shall file a combined Florida
  833  corporate income tax return with all members of its water’s edge
  834  group.
  835         (3)An affiliated group of corporations which filed a
  836  Florida consolidated corporate income tax return pursuant to the
  837  election in former s. 220.131(1) (1985), which allowed the
  838  affiliated group to make an election within 90 days after
  839  December 20, 1984, or upon filing the taxpayer’s first return
  840  after December 20, 1984, whichever was later, shall cease filing
  841  a Florida consolidated corporate income tax return using that
  842  method for taxable years beginning on or after January 1, 2021,
  843  and shall file a combined Florida corporate income tax return
  844  with all members of its water’s edge group.
  845         (4)A taxpayer that is not a member of a water’s edge group
  846  remains subject to this chapter and shall file a separate
  847  Florida corporate income tax return as previously required.
  848         (5)For taxable years beginning on or after January 1,
  849  2021, a tax return for a member of a water’s edge group must be
  850  a combined Florida corporate income tax return that includes tax
  851  information for all members of the water’s edge group. The tax
  852  return must be filed by a member that has a nexus with this
  853  state.
  854         Section 51. Effective January 1, 2021, section 220.51,
  855  Florida Statutes, is amended to read:
  856         220.51 Adoption Promulgation of rules and regulations.—In
  857  accordance with the Administrative Procedure Act, chapter 120,
  858  the department is authorized to make, adopt promulgate, and
  859  enforce such reasonable rules and regulations, and to prescribe
  860  such forms relating to the administration and enforcement of the
  861  provisions of this code, as it may deem appropriate, including:
  862         (1) Rules for initial implementation of this code and for
  863  taxpayers’ transitional taxable years commencing before and
  864  ending after January 1, 1972; and
  865         (2) Rules or regulations to clarify whether certain groups,
  866  organizations, or associations formed under the laws of this
  867  state or any other state, country, or jurisdiction shall be
  868  deemed “taxpayers” for the purposes of this code, in accordance
  869  with the legislative declarations of intent in s. 220.02; and
  870         (3) Regulations relating to consolidated reporting for
  871  affiliated groups of corporations, in order to provide for an
  872  equitable and just administration of this code with respect to
  873  multicorporate taxpayers.
  874         Section 52. Effective January 1, 2021, section 220.64,
  875  Florida Statutes, is amended to read:
  876         220.64 Other provisions applicable to franchise tax.—To the
  877  extent that they are not manifestly incompatible with the
  878  provisions of this part, parts I, III, IV, V, VI, VIII, IX, and
  879  X of this code and ss. 220.12, 220.13, 220.136, 220.1363,
  880  220.15, and 220.16 apply to the franchise tax imposed by this
  881  part. Under rules prescribed by the department in s. 220.131, a
  882  consolidated return may be filed by any affiliated group of
  883  corporations consisting composed of one or more banks or savings
  884  associations, its or their Florida parent corporations
  885  corporation, and any nonbank or nonsavings subsidiaries of such
  886  parent corporations corporation.
  887         Section 53. Effective January 1, 2021, paragraph (f) of
  888  subsection (4) and paragraph (a) of subsection (5) of section
  889  288.1254, Florida Statutes, are amended to read:
  890         288.1254 Entertainment industry financial incentive
  891  program.—
  892         (4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;
  893  ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;
  894  PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND
  895  ACQUISITIONS.—
  896         (f) Consolidated returns.—A certified production company
  897  that files a Florida consolidated return as a member of an
  898  affiliated group under s. 220.131(1) may be allowed the credit
  899  on a consolidated return basis up to the amount of the tax
  900  imposed upon the consolidated group under chapter 220.
  901         (5) TRANSFER OF TAX CREDITS.—
  902         (a) Authorization.—Upon application to the Office of Film
  903  and Entertainment and approval by the department, a certified
  904  production company, or a partner or member that has received a
  905  distribution under paragraph (4)(f) (4)(g), may elect to
  906  transfer, in whole or in part, any unused credit amount granted
  907  under this section. An election to transfer any unused tax
  908  credit amount under chapter 212 or chapter 220 must be made no
  909  later than 5 years after the date the credit is awarded, after
  910  which period the credit expires and may not be used. The
  911  department shall notify the Department of Revenue of the
  912  election and transfer.
  913         Section 54. Effective January 1, 2021, subsections (9) and
  914  (10) of section 376.30781, Florida Statutes, are amended to
  915  read:
  916         376.30781 Tax credits for rehabilitation of drycleaning
  917  solvent-contaminated sites and brownfield sites in designated
  918  brownfield areas; application process; rulemaking authority;
  919  revocation authority.—
  920         (9) On or before May 1, the Department of Environmental
  921  Protection shall inform each tax credit applicant that is
  922  subject to the January 31 annual application deadline of the
  923  applicant’s eligibility status and the amount of any tax credit
  924  due. The department shall provide each eligible tax credit
  925  applicant with a tax credit certificate that must be submitted
  926  with its tax return to the Department of Revenue to claim the
  927  tax credit or be transferred pursuant to s. 220.1845(2)(f) s.
  928  220.1845(2)(g). The May 1 deadline for annual site
  929  rehabilitation tax credit certificate awards shall not apply to
  930  any tax credit application for which the department has issued a
  931  notice of deficiency pursuant to subsection (8). The department
  932  shall respond within 90 days after receiving a response from the
  933  tax credit applicant to such a notice of deficiency. Credits may
  934  not result in the payment of refunds if total credits exceed the
  935  amount of tax owed.
  936         (10) For solid waste removal, new health care facility or
  937  health care provider, and affordable housing tax credit
  938  applications, the Department of Environmental Protection shall
  939  inform the applicant of the department’s determination within 90
  940  days after the application is deemed complete. Each eligible tax
  941  credit applicant shall be informed of the amount of its tax
  942  credit and provided with a tax credit certificate that must be
  943  submitted with its tax return to the Department of Revenue to
  944  claim the tax credit or be transferred pursuant to s.
  945  220.1845(2)(f) s. 220.1845(2)(g). Credits may not result in the
  946  payment of refunds if total credits exceed the amount of tax
  947  owed.
  948         Section 55. Funds recaptured pursuant to sections 35
  949  through 54 of this act must be appropriated in the General
  950  Appropriations Act to the various school districts to reduce the
  951  required local effort millage.
  952  
  953  ================= T I T L E  A M E N D M E N T ================
  954  And the title is amended as follows:
  955         Delete line 1981
  956  and insert:
  957         providing an appropriation; amending s. 220.03, F.S.;
  958         revising the definition of the term “taxpayer”;
  959         defining terms; amending s. 220.13, F.S.; revising the
  960         definition of the term “adjusted federal income” to
  961         prohibit specified deductions, to limit certain
  962         carryovers, and to require subtractions of certain
  963         amounts paid and received within a water’s edge group
  964         for the purpose of determining subtractions from
  965         taxable income; conforming provisions to changes made
  966         by the act; repealing s. 220.131, F.S., relating to
  967         the adjusted federal income of affiliated groups;
  968         creating s. 220.136, F.S.; specifying circumstances
  969         under which a corporation is presumed to be, deemed to
  970         be, or deemed not to be a member of a water’s edge
  971         group; defining the term “United States”; providing
  972         construction; creating s. 220.1363, F.S.; defining the
  973         term “water’s edge reporting method”; specifying
  974         requirements for, limitations on, and prohibitions in
  975         calculating and reporting income in a water’s edge
  976         group return; requiring all members of a water’s edge
  977         group to use the water’s edge reporting method;
  978         defining the term “sale”; specifying requirements for
  979         designating the filing member and the taxable year of
  980         the water’s edge group; specifying income reporting
  981         requirements for certain members of the water’s edge
  982         group; requiring that a water’s edge group return
  983         include a specified computational schedule and
  984         domestic disclosure spreadsheet; authorizing the
  985         Department of Revenue to adopt rules; providing
  986         legislative intent regarding the adoption of rules;
  987         amending s. 220.14, F.S.; revising the calculation for
  988         prorating a certain corporate income tax exemption to
  989         reflect leap years; conforming a provision to changes
  990         made by the act; amending ss. 220.15, 220.183,
  991         220.1845, 220.1875, 220.191, 220.193, and 220.27,
  992         F.S.; conforming provisions to changes made by the
  993         act; creating s. 220.28, F.S.; specifying, for certain
  994         taxpayers and for taxable years beginning on a
  995         specified date, requirements in filing corporate tax
  996         returns; amending s. 220.51, F.S.; conforming
  997         provisions to changes made by the act; amending s.
  998         220.64, F.S.; providing applicability of water’s edge
  999         group provisions to the franchise tax; conforming
 1000         provisions to changes made by the act; amending ss.
 1001         288.1254 and 376.30781, F.S.; conforming provisions to
 1002         changes made by the act; requiring that funds
 1003         recaptured pursuant to this act be appropriated for a
 1004         certain purpose; authorizing the department