Florida Senate - 2021                        COMMITTEE AMENDMENT
       Bill No. SB 7082
       
       
       
       
       
       
                                Ì763370ÂÎ763370                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/20/2021           .                                
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       The Committee on Appropriations (Rodriguez) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Paragraph (n) of subsection (1) and paragraph
    6  (c) of subsection (2) of section 220.03, Florida Statutes, are
    7  amended to read:
    8         220.03 Definitions.—
    9         (1) SPECIFIC TERMS.—When used in this code, and when not
   10  otherwise distinctly expressed or manifestly incompatible with
   11  the intent thereof, the following terms shall have the following
   12  meanings:
   13         (n) “Internal Revenue Code” means the United States
   14  Internal Revenue Code of 1986, as amended and in effect on
   15  January 1, 2021 2020, except as provided in subsection (3).
   16         (2) DEFINITIONAL RULES.—When used in this code and neither
   17  otherwise distinctly expressed nor manifestly incompatible with
   18  the intent thereof:
   19         (c) Any term used in this code has the same meaning as when
   20  used in a comparable context in the Internal Revenue Code and
   21  other statutes of the United States relating to federal income
   22  taxes, as such code and statutes are in effect on January 1,
   23  2021 2020. However, if subsection (3) is implemented, the
   24  meaning of a term shall be taken at the time the term is applied
   25  under this code.
   26         Section 2. The amendment to s. 220.03, Florida Statutes,
   27  made by this act operates retroactively to January 1, 2021.
   28         Section 3. Paragraphs (a), (b), and (e) of subsection (1)
   29  of section 220.13, Florida Statutes, are amended to read:
   30         220.13 “Adjusted federal income” defined.—
   31         (1) The term “adjusted federal income” means an amount
   32  equal to the taxpayer’s taxable income as defined in subsection
   33  (2), or such taxable income of more than one taxpayer as
   34  provided in s. 220.131, for the taxable year, adjusted as
   35  follows:
   36         (a) Additions.—There shall be added to such taxable income:
   37         1.a. The amount of any tax upon or measured by income,
   38  excluding taxes based on gross receipts or revenues, paid or
   39  accrued as a liability to the District of Columbia or any state
   40  of the United States which is deductible from gross income in
   41  the computation of taxable income for the taxable year.
   42         b. Notwithstanding sub-subparagraph a., if a credit taken
   43  under s. 220.1875 is added to taxable income in a previous
   44  taxable year under subparagraph 11. and is taken as a deduction
   45  for federal tax purposes in the current taxable year, the amount
   46  of the deduction allowed shall not be added to taxable income in
   47  the current year. The exception in this sub-subparagraph is
   48  intended to ensure that the credit under s. 220.1875 is added in
   49  the applicable taxable year and does not result in a duplicate
   50  addition in a subsequent year.
   51         2. The amount of interest which is excluded from taxable
   52  income under s. 103(a) of the Internal Revenue Code or any other
   53  federal law, less the associated expenses disallowed in the
   54  computation of taxable income under s. 265 of the Internal
   55  Revenue Code or any other law, excluding 60 percent of any
   56  amounts included in alternative minimum taxable income, as
   57  defined in s. 55(b)(2) of the Internal Revenue Code, if the
   58  taxpayer pays tax under s. 220.11(3).
   59         3. In the case of a regulated investment company or real
   60  estate investment trust, an amount equal to the excess of the
   61  net long-term capital gain for the taxable year over the amount
   62  of the capital gain dividends attributable to the taxable year.
   63         4. That portion of the wages or salaries paid or incurred
   64  for the taxable year which is equal to the amount of the credit
   65  allowable for the taxable year under s. 220.181. This
   66  subparagraph shall expire on the date specified in s. 290.016
   67  for the expiration of the Florida Enterprise Zone Act.
   68         5. That portion of the ad valorem school taxes paid or
   69  incurred for the taxable year which is equal to the amount of
   70  the credit allowable for the taxable year under s. 220.182. This
   71  subparagraph shall expire on the date specified in s. 290.016
   72  for the expiration of the Florida Enterprise Zone Act.
   73         6. The amount taken as a credit under s. 220.195 which is
   74  deductible from gross income in the computation of taxable
   75  income for the taxable year.
   76         7. That portion of assessments to fund a guaranty
   77  association incurred for the taxable year which is equal to the
   78  amount of the credit allowable for the taxable year.
   79         8. In the case of a nonprofit corporation which holds a
   80  pari-mutuel permit and which is exempt from federal income tax
   81  as a farmers’ cooperative, an amount equal to the excess of the
   82  gross income attributable to the pari-mutuel operations over the
   83  attributable expenses for the taxable year.
   84         9. The amount taken as a credit for the taxable year under
   85  s. 220.1895.
   86         10. Up to nine percent of the eligible basis of any
   87  designated project which is equal to the credit allowable for
   88  the taxable year under s. 220.185.
   89         11. The amount taken as a credit for the taxable year under
   90  s. 220.1875. The addition in this subparagraph is intended to
   91  ensure that the same amount is not allowed for the tax purposes
   92  of this state as both a deduction from income and a credit
   93  against the tax. This addition is not intended to result in
   94  adding the same expense back to income more than once.
   95         12. The amount taken as a credit for the taxable year under
   96  s. 220.193.
   97         13. Any portion of a qualified investment, as defined in s.
   98  288.9913, which is claimed as a deduction by the taxpayer and
   99  taken as a credit against income tax pursuant to s. 288.9916.
  100         14. The costs to acquire a tax credit pursuant to s.
  101  288.1254(5) that are deducted from or otherwise reduce federal
  102  taxable income for the taxable year.
  103         15. The amount taken as a credit for the taxable year
  104  pursuant to s. 220.194.
  105         16. The amount taken as a credit for the taxable year under
  106  s. 220.196. The addition in this subparagraph is intended to
  107  ensure that the same amount is not allowed for the tax purposes
  108  of this state as both a deduction from income and a credit
  109  against the tax. The addition is not intended to result in
  110  adding the same expense back to income more than once.
  111         17.For taxable years beginning after December 31, 2018,
  112  and before January 1, 2021, there shall be added to such taxable
  113  income an amount equal to the excess, if any, of:
  114         a.One hundred percent of any amount deducted for federal
  115  income tax purposes as business interest expense for the taxable
  116  year pursuant to s. 163(j) of the Internal Revenue Code of 1986,
  117  as amended by s. 2306 of Pub. L. No. 116-136; over
  118         b.One hundred percent of the amount that would be
  119  deductible for federal income tax purposes as business interest
  120  expense for the taxable year if calculated pursuant to s. 163(j)
  121  of the Internal Revenue Code of 1986, as amended by s. 13301 of
  122  Pub. L. No. 115-97.
  123  
  124  Any expense added back pursuant to this subparagraph shall be
  125  treated as a disallowed business expense carryforward from prior
  126  years for the year or years following such addition, until such
  127  time as the expense has been used.
  128         18.For taxable years beginning after December 31, 2020,
  129  and before January 1, 2023, there shall be added to such taxable
  130  income an amount equal to the excess, if any, of:
  131         a.One hundred percent of any amount deducted for federal
  132  income tax purposes for business meals in the taxable year
  133  pursuant to s. 274 of the Internal Revenue Code of 1986, as
  134  amended by s. 210 of Division EE of Pub. L. No. 116-260; over
  135         b.One hundred percent of the amount that would be
  136  deductible for federal income tax purposes for business meals in
  137  the taxable year if calculated pursuant to s. 274 of the
  138  Internal Revenue Code of 1986, as amended by ss. 13304 and 13310
  139  of Pub. L. No. 115-97.
  140         19.For taxable years beginning after December 31, 2019,
  141  and before January 1, 2022, there shall be added to such taxable
  142  income an amount equal to the excess, if any, of:
  143         a.One hundred percent of any amount deducted for federal
  144  income tax purposes for charitable contributions made in the
  145  taxable year pursuant to s. 170 of the Internal Revenue Code of
  146  1986, as amended by s. 2205 of Pub. L. No. 116-136, as amended
  147  by s. 213 of Division EE of Pub. L. No. 116-260; over
  148         b.One hundred percent of the amount that would be
  149  deductible for federal income tax purposes for charitable
  150  contributions made in the taxable year if calculated pursuant to
  151  s. 170 of the Internal Revenue Code of 1986, as amended by s.
  152  11023 of Pub. L. No. 115-97.
  153         (b) Subtractions.—
  154         1. There shall be subtracted from such taxable income:
  155         a. The net operating loss deduction allowable for federal
  156  income tax purposes under s. 172 of the Internal Revenue Code
  157  for the taxable year, except that any net operating loss that is
  158  transferred pursuant to s. 220.194(6) may not be deducted by the
  159  seller,
  160         b. The net capital loss allowable for federal income tax
  161  purposes under s. 1212 of the Internal Revenue Code for the
  162  taxable year,
  163         c. The excess charitable contribution deduction allowable
  164  for federal income tax purposes under s. 170(d)(2) of the
  165  Internal Revenue Code for the taxable year, and
  166         d. The excess contributions deductions allowable for
  167  federal income tax purposes under s. 404 of the Internal Revenue
  168  Code for the taxable year.
  169  
  170  However, a net operating loss and a capital loss shall never be
  171  carried back as a deduction to a prior taxable year, but all
  172  deductions attributable to such losses shall be deemed net
  173  operating loss carryovers and capital loss carryovers,
  174  respectively, and treated in the same manner, to the same
  175  extent, and for the same time periods as are prescribed for such
  176  carryovers in ss. 172 and 1212, respectively, of the Internal
  177  Revenue Code. For taxable years beginning after December 31,
  178  2017, and before January 1, 2021, the net operating loss
  179  subtracted pursuant to this subparagraph shall be limited by the
  180  percentage limitation pursuant to s. 172(a)(2) of the Internal
  181  Revenue Code of 1986, as amended by s. 13302 of Pub. L. No. 115
  182  97.
  183         2. There shall be subtracted from such taxable income any
  184  amount to the extent included therein the following:
  185         a. Dividends treated as received from sources without the
  186  United States, as determined under s. 862 of the Internal
  187  Revenue Code.
  188         b. All amounts included in taxable income under s. 78, s.
  189  951, or s. 951A of the Internal Revenue Code.
  190  
  191  However, any amount subtracted under this subparagraph is
  192  allowed only to the extent such amount is not deductible in
  193  determining federal taxable income. As to any amount subtracted
  194  under this subparagraph, there shall be added to such taxable
  195  income all expenses deducted on the taxpayer’s return for the
  196  taxable year which are attributable, directly or indirectly, to
  197  such subtracted amount. Further, no amount shall be subtracted
  198  with respect to dividends paid or deemed paid by a Domestic
  199  International Sales Corporation.
  200         3. In computing “adjusted federal income” for taxable years
  201  beginning after December 31, 1976, there shall be allowed as a
  202  deduction the amount of wages and salaries paid or incurred
  203  within this state for the taxable year for which no deduction is
  204  allowed pursuant to s. 280C(a) of the Internal Revenue Code
  205  (relating to credit for employment of certain new employees).
  206         4. There shall be subtracted from such taxable income any
  207  amount of nonbusiness income included therein.
  208         5. There shall be subtracted any amount of taxes of foreign
  209  countries allowable as credits for taxable years beginning on or
  210  after September 1, 1985, under s. 901 of the Internal Revenue
  211  Code to any corporation which derived less than 20 percent of
  212  its gross income or loss for its taxable year ended in 1984 from
  213  sources within the United States, as described in s.
  214  861(a)(2)(A) of the Internal Revenue Code, not including credits
  215  allowed under ss. 902 and 960 of the Internal Revenue Code,
  216  withholding taxes on dividends within the meaning of sub
  217  subparagraph 2.a., and withholding taxes on royalties, interest,
  218  technical service fees, and capital gains.
  219         6. Notwithstanding any other provision of this code, except
  220  with respect to amounts subtracted pursuant to subparagraphs 1.
  221  and 3., any increment of any apportionment factor which is
  222  directly related to an increment of gross receipts or income
  223  which is deducted, subtracted, or otherwise excluded in
  224  determining adjusted federal income shall be excluded from both
  225  the numerator and denominator of such apportionment factor.
  226  Further, all valuations made for apportionment factor purposes
  227  shall be made on a basis consistent with the taxpayer’s method
  228  of accounting for federal income tax purposes.
  229         (e) Adjustments related to federal acts.—Taxpayers shall be
  230  required to make the adjustments prescribed in this paragraph
  231  for Florida tax purposes with respect to certain tax benefits
  232  received pursuant to the Economic Stimulus Act of 2008, the
  233  American Recovery and Reinvestment Act of 2009, the Small
  234  Business Jobs Act of 2010, the Tax Relief, Unemployment
  235  Insurance Reauthorization, and Job Creation Act of 2010, the
  236  American Taxpayer Relief Act of 2012, the Tax Increase
  237  Prevention Act of 2014, the Consolidated Appropriations Act,
  238  2016, and the Tax Cuts and Jobs Act of 2017, the Coronavirus
  239  Aid, Relief, and Economic Security Act of 2020, and the
  240  Consolidated Appropriations Act, 2021.
  241         1.a. There shall be added to such taxable income an amount
  242  equal to 100 percent of any amount deducted for federal income
  243  tax purposes as bonus depreciation for the taxable year pursuant
  244  to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
  245  amended by s. 103 of Pub. L. No. 110-185, s. 1201 of Pub. L. No.
  246  111-5, s. 2022 of Pub. L. No. 111-240, s. 401 of Pub. L. No.
  247  111-312, s. 331 of Pub. L. No. 112-240, s. 125 of Pub. L. No.
  248  113-295, s. 143 of Division Q of Pub. L. No. 114-113, and s.
  249  13201 of Pub. L. No. 115-97, for property placed in service
  250  after December 31, 2007, and before January 1, 2027. For the
  251  taxable year and for each of the 6 subsequent taxable years,
  252  there shall be subtracted from such taxable income an amount
  253  equal to one-seventh of the amount by which taxable income was
  254  increased pursuant to this subparagraph, notwithstanding any
  255  sale or other disposition of the property that is the subject of
  256  the adjustments and regardless of whether such property remains
  257  in service in the hands of the taxpayer.
  258         b.Sub-subparagraph a. does not apply to qualified
  259  improvement property that was placed in service on or after
  260  January 1, 2018. As used in this paragraph, the term “qualified
  261  improvement property” has the same meaning as in s. 168(e)(6) of
  262  the Internal Revenue Code of 1986.
  263         2. There shall be added to such taxable income an amount
  264  equal to 100 percent of any amount in excess of $128,000
  265  deducted for federal income tax purposes for the taxable year
  266  pursuant to s. 179 of the Internal Revenue Code of 1986, as
  267  amended by s. 102 of Pub. L. No. 110-185, s. 1202 of Pub. L. No.
  268  111-5, s. 2021 of Pub. L. No. 111-240, s. 402 of Pub. L. No.
  269  111-312, s. 315 of Pub. L. No. 112-240, and s. 127 of Pub. L.
  270  No. 113-295, for taxable years beginning after December 31,
  271  2007, and before January 1, 2015. For the taxable year and for
  272  each of the 6 subsequent taxable years, there shall be
  273  subtracted from such taxable income one-seventh of the amount by
  274  which taxable income was increased pursuant to this
  275  subparagraph, notwithstanding any sale or other disposition of
  276  the property that is the subject of the adjustments and
  277  regardless of whether such property remains in service in the
  278  hands of the taxpayer.
  279         3. There shall be added to such taxable income an amount
  280  equal to the amount of deferred income not included in such
  281  taxable income pursuant to s. 108(i)(1) of the Internal Revenue
  282  Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
  283  shall be subtracted from such taxable income an amount equal to
  284  the amount of deferred income included in such taxable income
  285  pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
  286  as amended by s. 1231 of Pub. L. No. 111-5.
  287         4. There shall be added to such taxable income an amount
  288  equal to 100 percent of any federal income tax depreciation
  289  deducted for qualified improvement property. There shall be
  290  subtracted an amount equal to the amount of depreciation that
  291  would have been deductible for federal income tax purposes if
  292  calculated pursuant to s. 168(b)(3) of the Internal Revenue Code
  293  using the applicable recovery period in s. 168(c) of the
  294  Internal Revenue Code for nonresidential real property,
  295  notwithstanding any sale or other disposition of the property
  296  that is the subject of the adjustments, and regardless of
  297  whether such property remains in service in the hands of the
  298  taxpayer.
  299         5.For taxable years beginning after December 31, 2020, and
  300  before January 1, 2026, the changes made to the Internal Revenue
  301  Code by s. 116 of Division EE of Pub. L. No. 116-260, relating
  302  to the extension of expensing rules for qualified film,
  303  television, and live theatrical productions under s. 181 of the
  304  Internal Revenue Code of 1986, do not apply to this chapter.
  305  Taxable income under this section shall be calculated as though
  306  changes made by that section were not made to the Internal
  307  Revenue Code.
  308         6. Subtractions available under this paragraph may be
  309  transferred to the surviving or acquiring entity following a
  310  merger or acquisition and used in the same manner and with the
  311  same limitations as specified by this paragraph.
  312         7.5. The additions and subtractions specified in this
  313  paragraph are intended to adjust taxable income for Florida tax
  314  purposes, and, notwithstanding any other provision of this code,
  315  such additions and subtractions shall be permitted to change a
  316  taxpayer’s net operating loss for Florida tax purposes.
  317         Section 4. This act shall take effect upon becoming a law.
  318  
  319  ================= T I T L E  A M E N D M E N T ================
  320  And the title is amended as follows:
  321         Delete everything before the enacting clause
  322  and insert:
  323                        A bill to be entitled                      
  324         An act relating to the corporate income tax; amending
  325         s. 220.03, F.S.; adopting the 2021 version of the
  326         Internal Revenue Code and other federal statutes
  327         relating to federal income taxes for purposes of the
  328         state corporate income tax code; providing for
  329         retroactive operation; amending s. 220.13, F.S.;
  330         requiring additions to taxable income of certain
  331         amounts relating to federal deductions for business
  332         interest expense, business meals, and charitable
  333         contributions; specifying a limitation on net
  334         operating loss subtractions applied during certain
  335         taxable years; specifying that Florida bonus
  336         depreciation treatment does not apply to certain
  337         qualified improvement property; defining the term
  338         “qualified improvement property”; specifying required
  339         additions and subtractions relating to qualified
  340         improvement property; providing that certain federal
  341         changes relating to expensing rules for qualified
  342         film, television, and live theatrical productions do
  343         not apply to the state corporate income tax; providing
  344         an effective date.