Bill Amendment: FL S0502 | 2018 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Corporate Income Tax
Status: 2018-03-08 - Laid on Table, refer to HB 7093 [S0502 Detail]
Download: Florida-2018-S0502-Senate_Committee_Amendment_848256.html
Bill Title: Corporate Income Tax
Status: 2018-03-08 - Laid on Table, refer to HB 7093 [S0502 Detail]
Download: Florida-2018-S0502-Senate_Committee_Amendment_848256.html
Florida Senate - 2018 COMMITTEE AMENDMENT Bill No. SB 502 Ì848256BÎ848256 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Appropriations Subcommittee on Finance and Tax (Stargel) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Between lines 29 and 30 4 insert: 5 Section 2. Paragraph (e) of subsection (1) of section 6 220.13, Florida Statutes, is amended to read: 7 220.13 “Adjusted federal income” defined.— 8 (1) The term “adjusted federal income” means an amount 9 equal to the taxpayer’s taxable income as defined in subsection 10 (2), or such taxable income of more than one taxpayer as 11 provided in s. 220.131, for the taxable year, adjusted as 12 follows: 13 (e) Adjustments related to federal acts.—Taxpayers shall be 14 required to make the adjustments prescribed in this paragraph 15 for Florida tax purposes with respect to certain tax benefits 16 received pursuant to the Economic Stimulus Act of 2008, the 17 American Recovery and Reinvestment Act of 2009, the Small 18 Business Jobs Act of 2010, the Tax Relief, Unemployment 19 Insurance Reauthorization, and Job Creation Act of 2010, the 20 American Taxpayer Relief Act of 2012, the Tax Increase 21 Prevention Act of 2014,andthe Consolidated Appropriations Act, 22 2016, and the Tax Cuts and Jobs Act of 2017. 23 1. There shall be added to such taxable income an amount 24 equal to 100 percent of any amount deducted for federal income 25 tax purposes as bonus depreciation for the taxable year pursuant 26 to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as 27 amended by s. 103 of Pub. L. No. 110-185, s. 1201 of Pub. L. No. 28 111-5, s. 2022 of Pub. L. No. 111-240, s. 401 of Pub. L. No. 29 111-312, s. 331 of Pub. L. No. 112-240, s. 125 of Pub. L. No. 30 113-295,ands. 143 of Division Q of Pub. L. No. 114-113, and s. 31 13201 of Pub. L. No. 115-97, for property placed in service 32 after December 31, 2007, and before January 1, 20272021. For 33 the taxable year and for each of the 6 subsequent taxable years, 34 there shall be subtracted from such taxable income an amount 35 equal to one-seventh of the amount by which taxable income was 36 increased pursuant to this subparagraph, notwithstanding any 37 sale or other disposition of the property that is the subject of 38 the adjustments and regardless of whether such property remains 39 in service in the hands of the taxpayer. 40 2. There shall be added to such taxable income an amount 41 equal to 100 percent of any amount in excess of $128,000 42 deducted for federal income tax purposes for the taxable year 43 pursuant to s. 179 of the Internal Revenue Code of 1986, as 44 amended by s. 102 of Pub. L. No. 110-185, s. 1202 of Pub. L. No. 45 111-5, s. 2021 of Pub. L. No. 111-240, s. 402 of Pub. L. No. 46 111-312, s. 315 of Pub. L. No. 112-240, and s. 127 of Pub. L. 47 No. 113-295, for taxable years beginning after December 31, 48 2007, and before January 1, 2015. For the taxable year and for 49 each of the 6 subsequent taxable years, there shall be 50 subtracted from such taxable income one-seventh of the amount by 51 which taxable income was increased pursuant to this 52 subparagraph, notwithstanding any sale or other disposition of 53 the property that is the subject of the adjustments and 54 regardless of whether such property remains in service in the 55 hands of the taxpayer. 56 3. There shall be added to such taxable income an amount 57 equal to the amount of deferred income not included in such 58 taxable income pursuant to s. 108(i)(1) of the Internal Revenue 59 Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There 60 shall be subtracted from such taxable income an amount equal to 61 the amount of deferred income included in such taxable income 62 pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986, 63 as amended by s. 1231 of Pub. L. No. 111-5. 64 4. Subtractions available under this paragraph may be 65 transferred to the surviving or acquiring entity following a 66 merger or acquisition and used in the same manner and with the 67 same limitations as specified by this paragraph. 68 5. The additions and subtractions specified in this 69 paragraph are intended to adjust taxable income for Florida tax 70 purposes, and, notwithstanding any other provision of this code, 71 such additions and subtractions shall be permitted to change a 72 taxpayer’s net operating loss for Florida tax purposes. 73 Section 3. The Legislature recognizes that the Tax Cuts and 74 Jobs Act of 2017 will have significant effects on the state 75 corporate income tax and on corporate taxpayers when it is fully 76 implemented. To better understand these effects, the Legislature 77 finds the following actions are necessary: 78 (1) The Department of Revenue shall establish a workgroup 79 to examine how the implementation of the Tax Cuts and Jobs Act 80 of 2017 will affect the state corporate income tax. 81 (2) The workgroup must consist of employees of the 82 department who have expertise in state and federal corporate 83 income tax and other employees who may assist the workgroup. In 84 performing its duties, the workgroup shall consult with the 85 Revenue Estimating Conference. The workgroup must seek and 86 consider comments from the private sector. 87 (3) By February 1, 2019, the workgroup shall submit a 88 report to the Governor, the President of the Senate, the Speaker 89 of the House, and the chairs of appropriate legislative 90 committees. At a minimum, the report must address the following: 91 (a) A comprehensive discussion of any issues the workgroup 92 determines will have an effect on the state corporate tax 93 structure and on corporate tax revenues. 94 (b) Options for changes to state tax law which may be 95 needed to integrate state law with federal law. 96 (c) The potential fiscal impact of each option on the state 97 and on taxpayers. 98 (d) Whether the workgroup should be extended. 99 (e) Any other information the workgroup determines will 100 assist the Legislature. 101 (4) The workgroup shall submit status reports to the chairs 102 of appropriate legislative committees on May 15, 2018, July 15, 103 2018, September 15, 2018, and November 15, 2018. At a minimum, 104 the status reports must include a brief description of the 105 workgroup’s activities and any guidance issued by the Internal 106 Revenue Service relevant to the workgroup’s duties. 107 108 ================= T I T L E A M E N D M E N T ================ 109 And the title is amended as follows: 110 Delete line 4 111 and insert: 112 Internal Revenue Code; amending s. 220.13, F.S.; 113 revising the definition of the term “adjusted federal 114 income” relating to adjustments related to federal 115 acts; providing legislative findings; requiring the 116 Department of Revenue to establish a workgroup for 117 certain purposes; specifying the composition of the 118 workgroup; requiring the workgroup to consult with the 119 Revenue Estimating Conference and seek and consider 120 comments from the private sector; requiring the 121 workgroup to submit a specified report to the Governor 122 and Legislature by a specified date; requiring the 123 workgroup to submit status reports to appropriate 124 legislative committees on specified dates; providing 125 retroactive