Florida Senate - 2023                              CS for SB 358
       
       
        
       By the Committee on Finance and Tax; and Senators Burgess and
       Calatayud
       
       
       
       
       593-02813-23                                           2023358c1
    1                        A bill to be entitled                      
    2         An act relating to residential graywater system tax
    3         credits; amending s. 213.053, F.S.; authorizing the
    4         Department of Revenue to provide certain information
    5         to the Department of Environmental Protection;
    6         creating s. 220.199, F.S.; defining terms; providing a
    7         tax credit to developers and homebuilders for certain
    8         graywater systems purchased during the taxable year;
    9         providing a cap on the amount of the tax credit per
   10         system; specifying information the developer or
   11         homebuilder must provide to the Department of
   12         Environmental Protection; requiring the Department of
   13         Environmental Protection to certify to the applicant
   14         and the Department of Revenue its determination of an
   15         applicant’s eligibility for the tax credit within a
   16         specified timeframe; authorizing tax credits to be
   17         carried forward for up to a specified number of years;
   18         requiring the Department of Revenue and the Department
   19         of Environmental Protection to adopt rules; amending
   20         s. 220.02, F.S.; revising the order in which credits
   21         may be taken to include credits created by the act;
   22         amending s. 220.13, F.S.; revising the definition of
   23         the term “adjusted federal income” to include credits
   24         created by the act; providing an effective date.
   25          
   26  Be It Enacted by the Legislature of the State of Florida:
   27  
   28         Section 1. Paragraph (o) of subsection (8) of section
   29  213.053, Florida Statutes, is amended to read:
   30         213.053 Confidentiality and information sharing.—
   31         (8) Notwithstanding any other provision of this section,
   32  the department may provide:
   33         (o) Information relative to ss. 220.1845, 220.199, and
   34  376.30781 to the Department of Environmental Protection in the
   35  conduct of its official business.
   36  
   37  Disclosure of information under this subsection shall be
   38  pursuant to a written agreement between the executive director
   39  and the agency. Such agencies, governmental or nongovernmental,
   40  shall be bound by the same requirements of confidentiality as
   41  the Department of Revenue. Breach of confidentiality is a
   42  misdemeanor of the first degree, punishable as provided by s.
   43  775.082 or s. 775.083.
   44         Section 2. Section 220.199, Florida Statutes, is created to
   45  read:
   46         220.199Residential graywater system tax credit.—
   47         (1)For purposes of this section, the term:
   48         (a)“Developer” has the same meaning as in s. 380.031(2).
   49         (b)“Graywater” has the same meaning as in s.
   50  381.0065(2)(f).
   51         (2)For taxable years beginning on or after January 1,
   52  2024, a developer or homebuilder is eligible to receive a credit
   53  against the tax imposed by this chapter in an amount up to 50
   54  percent of the cost of each NSF/ANSI 350 Class R certified
   55  noncommercial, residential graywater system purchased during the
   56  taxable year. The tax credit may not exceed $4,200 for each
   57  system purchased.
   58         (3)To claim a credit under this section, a developer or
   59  homebuilder must submit an application to the Department of
   60  Environmental Protection which includes documentation showing
   61  that the developer or homebuilder has purchased for use in this
   62  state a graywater system meeting the requirements of subsection
   63  (2) and that the graywater system meets the functionality
   64  assurances provided in s. 403.892(3)(c). The Department of
   65  Environmental Protection shall make a determination on the
   66  eligibility of the applicant for the credit sought and shall
   67  certify the determination to the applicant and the Department of
   68  Revenue within 60 days after receipt of a completed application.
   69  The taxpayer must attach the certification from the Department
   70  of Environmental Protection to the tax return on which the
   71  credit is claimed.
   72         (4)Any unused tax credit authorized under this section may
   73  be carried forward and claimed by the taxpayer for up to 2
   74  taxable years.
   75         (5)The Department of Revenue shall adopt rules to
   76  administer this section, including, but not limited to, rules
   77  prescribing forms for a credit and any evidence needed to
   78  substantiate a claim for a credit under this section.
   79         (6)The Department of Environmental Protection shall adopt
   80  rules to administer this section, including, but not limited to,
   81  rules relating to application forms for credit approval and
   82  certification and the application and certification procedures,
   83  guidelines, and requirements necessary to administer this
   84  section.
   85         Section 3. Subsection (8) of section 220.02, Florida
   86  Statutes, is amended to read:
   87         220.02 Legislative intent.—
   88         (8) It is the intent of the Legislature that credits
   89  against either the corporate income tax or the franchise tax be
   90  applied in the following order: those enumerated in s. 631.828,
   91  those enumerated in s. 220.191, those enumerated in s. 220.181,
   92  those enumerated in s. 220.183, those enumerated in s. 220.182,
   93  those enumerated in s. 220.1895, those enumerated in s. 220.195,
   94  those enumerated in s. 220.184, those enumerated in s. 220.186,
   95  those enumerated in s. 220.1845, those enumerated in s. 220.19,
   96  those enumerated in s. 220.185, those enumerated in s. 220.1875,
   97  those enumerated in s. 220.1876, those enumerated in s.
   98  220.1877, those enumerated in s. 220.193, those enumerated in s.
   99  288.9916, those enumerated in s. 220.1899, those enumerated in
  100  s. 220.194, those enumerated in s. 220.196, those enumerated in
  101  s. 220.198, and those enumerated in s. 220.1915, and those
  102  enumerated in s. 220.199.
  103         Section 4. Paragraph (a) of subsection (1) of section
  104  220.13, Florida Statutes, is amended to read:
  105         220.13 “Adjusted federal income” defined.—
  106         (1) The term “adjusted federal income” means an amount
  107  equal to the taxpayer’s taxable income as defined in subsection
  108  (2), or such taxable income of more than one taxpayer as
  109  provided in s. 220.131, for the taxable year, adjusted as
  110  follows:
  111         (a) Additions.—There shall be added to such taxable income:
  112         1.a. The amount of any tax upon or measured by income,
  113  excluding taxes based on gross receipts or revenues, paid or
  114  accrued as a liability to the District of Columbia or any state
  115  of the United States which is deductible from gross income in
  116  the computation of taxable income for the taxable year.
  117         b. Notwithstanding sub-subparagraph a., if a credit taken
  118  under s. 220.1875, s. 220.1876, or s. 220.1877 is added to
  119  taxable income in a previous taxable year under subparagraph 11.
  120  and is taken as a deduction for federal tax purposes in the
  121  current taxable year, the amount of the deduction allowed shall
  122  not be added to taxable income in the current year. The
  123  exception in this sub-subparagraph is intended to ensure that
  124  the credit under s. 220.1875, s. 220.1876, or s. 220.1877 is
  125  added in the applicable taxable year and does not result in a
  126  duplicate addition in a subsequent year.
  127         2. The amount of interest which is excluded from taxable
  128  income under s. 103(a) of the Internal Revenue Code or any other
  129  federal law, less the associated expenses disallowed in the
  130  computation of taxable income under s. 265 of the Internal
  131  Revenue Code or any other law, excluding 60 percent of any
  132  amounts included in alternative minimum taxable income, as
  133  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  134  taxpayer pays tax under s. 220.11(3).
  135         3. In the case of a regulated investment company or real
  136  estate investment trust, an amount equal to the excess of the
  137  net long-term capital gain for the taxable year over the amount
  138  of the capital gain dividends attributable to the taxable year.
  139         4. That portion of the wages or salaries paid or incurred
  140  for the taxable year which is equal to the amount of the credit
  141  allowable for the taxable year under s. 220.181. This
  142  subparagraph shall expire on the date specified in s. 290.016
  143  for the expiration of the Florida Enterprise Zone Act.
  144         5. That portion of the ad valorem school taxes paid or
  145  incurred for the taxable year which is equal to the amount of
  146  the credit allowable for the taxable year under s. 220.182. This
  147  subparagraph shall expire on the date specified in s. 290.016
  148  for the expiration of the Florida Enterprise Zone Act.
  149         6. The amount taken as a credit under s. 220.195 which is
  150  deductible from gross income in the computation of taxable
  151  income for the taxable year.
  152         7. That portion of assessments to fund a guaranty
  153  association incurred for the taxable year which is equal to the
  154  amount of the credit allowable for the taxable year.
  155         8. In the case of a nonprofit corporation which holds a
  156  pari-mutuel permit and which is exempt from federal income tax
  157  as a farmers’ cooperative, an amount equal to the excess of the
  158  gross income attributable to the pari-mutuel operations over the
  159  attributable expenses for the taxable year.
  160         9. The amount taken as a credit for the taxable year under
  161  s. 220.1895.
  162         10. Up to nine percent of the eligible basis of any
  163  designated project which is equal to the credit allowable for
  164  the taxable year under s. 220.185.
  165         11. Any amount taken as a credit for the taxable year under
  166  s. 220.1875, s. 220.1876, or s. 220.1877. The addition in this
  167  subparagraph is intended to ensure that the same amount is not
  168  allowed for the tax purposes of this state as both a deduction
  169  from income and a credit against the tax. This addition is not
  170  intended to result in adding the same expense back to income
  171  more than once.
  172         12. The amount taken as a credit for the taxable year under
  173  s. 220.193.
  174         13. Any portion of a qualified investment, as defined in s.
  175  288.9913, which is claimed as a deduction by the taxpayer and
  176  taken as a credit against income tax pursuant to s. 288.9916.
  177         14. The costs to acquire a tax credit pursuant to s.
  178  288.1254(5) that are deducted from or otherwise reduce federal
  179  taxable income for the taxable year.
  180         15. The amount taken as a credit for the taxable year
  181  pursuant to s. 220.194.
  182         16. The amount taken as a credit for the taxable year under
  183  s. 220.196. The addition in this subparagraph is intended to
  184  ensure that the same amount is not allowed for the tax purposes
  185  of this state as both a deduction from income and a credit
  186  against the tax. The addition is not intended to result in
  187  adding the same expense back to income more than once.
  188         17. The amount taken as a credit for the taxable year
  189  pursuant to s. 220.198.
  190         18. The amount taken as a credit for the taxable year
  191  pursuant to s. 220.1915.
  192         19. The amount taken as a credit for the taxable year
  193  pursuant to s. 220.199.
  194         Section 5. This act shall take effect July 1, 2023.