Bill Text: FL H0475 | 2011 | Regular Session | Introduced


Bill Title: Corporate Income Tax Credits

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H0475 Detail]

Download: Florida-2011-H0475-Introduced.html
HB 475

1
A bill to be entitled
2An act relating to corporate income tax credits; creating
3s. 220.1877, F.S.; providing legislative findings and
4purposes; providing definitions; establishing the Florida
5Public School Tax Credit Program; providing for credits
6against the corporate income tax for contributions to
7public schools for certain purposes; providing
8limitations; authorizing public schools to determine how
9to use undesignated contributions; requiring public
10schools to report certain information to the Department of
11Revenue; limiting the total annual amount of credits;
12requiring the department to apportion a dollar amount of
13tax credits to each school board receiving eligible
14contributions; providing a formula for apportioning the
15dollar amount of tax credits to each school board for
16allocation by the department to taxpayers applying for
17corporate income tax credits; providing requirements for
18taxpayers filing consolidated returns; providing
19procedures and requirements for rescinding credits;
20providing for use of rescinded credits by other taxpayers;
21specifying certain taxpayers as ineligible to receive the
22corporate tax credit; specifying administrative rules for
23use and application of the credit; requiring the
24Department of Revenue and the State Board of Education to
25adopt rules; providing requirements for deposits of
26eligible contributions; providing criteria for
27preservation of tax credits under certain circumstances;
28providing a limitation; providing an effective date.
29
30Be It Enacted by the Legislature of the State of Florida:
31
32     Section 1.  Section 220.1877, Florida Statutes, is created
33to read:
34     220.1877  Credits for contributions to public schools for
35public school expenses.-
36     (1)  FINDINGS AND PURPOSE.-
37     (a)  The Legislature finds that:
38     1.  It has the inherent power to determine subjects of
39taxation for general or particular public purposes.
40     2.  Expanding educational opportunities and improving the
41quality of educational services within the state are valid
42public purposes that the Legislature may promote using its
43sovereign power to determine subjects of taxation and exemptions
44from taxation.
45     3.  Expanding educational opportunities and the healthy
46competition they promote are critical to improving the quality
47of education in the state and to ensuring that all children
48receive the high-quality education to which they are entitled.
49     (b)  The purpose of this section is to:
50     1.  Enable taxpayers to make private, voluntary
51contributions to public schools in order to promote the general
52welfare.
53     2.  Enable children in this state to achieve a greater
54level of excellence in their education.
55     3.  Improve the quality of education in this state, both by
56expanding educational opportunities for children and by creating
57incentives for public schools to achieve excellence.
58     4.  Allow corporations to claim education tax credits for
59direct payments to public schools for educational expenses,
60special assistance, tutoring, Foundation for Florida's Future,
61mentoring, extracurricular activities, character education
62programs, and pay-to-play fees associated with mental and
63physical student development.
64     (2)  DEFINITIONS.-As used in this section, the term:
65     (a)  "Department" means the Department of Revenue.
66     (b)  "Eligible contribution" means a monetary contribution
67from a taxpayer, subject to the restrictions provided in this
68section, to a public school.
69     (c)  "Public school" means a school in this state that
70provides education to students in any grades K-12 in a public
71school district.
72     (3)  PROGRAM.-The Florida Public School Tax Credit Program
73is established.
74     (4)  AUTHORIZATION TO GRANT PUBLIC SCHOOL FUNDING TAX
75CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.-
76     (a)1.  There is allowed a credit of 100 percent of an
77eligible contribution against any tax due for a taxable year
78under this chapter. The credit is allowed against the taxes
79imposed by this chapter for the amount of any fees paid or cash
80contributions made by a taxpayer during the taxable year to a
81public school located in this state for the support of
82educational expenses, special assistance, tutoring, the
83Foundation for Florida's Future, mentoring, extracurricular
84activities, character education programs, and pay-to-play fees.
85The taxpayer may designate the specific use to which the
86contribution must be applied. However, such a credit may not
87exceed 75 percent of the tax due under this chapter for the
88taxable year, after the application of any other allowable
89credits by the taxpayer. The credit granted by this section
90shall be reduced by the difference between the amount of federal
91corporate income tax taking into account the credit granted by
92this section and the amount of federal corporate income tax
93without application of the credit granted by this section.
94     2.  Each public school that receives contributions that are
95not designated for a specific purpose shall determine how the
96contributions are used. The school advisory council may make
97recommendations as to how best to apply undesignated
98contributions.
99     3.  A public school that receives fees or a cash
100contribution shall report to the department, in a form
101prescribed by the department:
102     a.  The total number of fee and cash contribution payments
103received during the previous calendar year.
104     b.  The total dollar amount of fees and contributions
105received during the previous calendar year.
106     c.  The total dollar amount from fees and contributions
107received that were spent by the public school during the
108previous calendar year.
109     (b)  For each state fiscal year, the total amount of tax
110credits and carryforward of tax credits which may be granted
111under this section and s. 624.51055 is $118 million. The
112department shall apportion to each district school board the
113total dollar amount of tax credits available to taxpayers who
114make eligible contributions to a public school in the school
115board's district pursuant to subparagraph (a)1. The dollar
116amount apportioned to each school board shall be calculated by
117multiplying each school district's percentage of the previous
118fiscal year's statewide total number of unweighted full-time
119equivalent students times $118 million. The applicable dollar
120amount resulting from the calculation for each school district
121shall be apportioned to the school board for allocation by the
122department to taxpayers in accordance with rules adopted under
123subsection (5).
124     (c)  A taxpayer who files a Florida consolidated return as
125a member of an affiliated group pursuant to s. 220.131(1) may be
126allowed the credit on a consolidated return basis; however, the
127total credit taken by the affiliated group is subject to the
128limitation established under paragraph (a).
129     (d)  Effective for tax years beginning January 1, 2012, a
130taxpayer may rescind all or part of its allocated tax credit
131under this section. The amount rescinded shall become available
132for purposes of the cap for that state fiscal year under this
133section to an eligible taxpayer as approved by the department if
134the taxpayer receives notice from the department that the
135rescission has been accepted by the department and the taxpayer
136has not previously rescinded any or all of its tax credit
137allocation under this section more than once in the previous 3
138tax years. Any amount rescinded under this paragraph shall
139become available to an eligible taxpayer on a first-come, first-
140served basis based on tax credit applications received after the
141date the rescission is accepted by the department.
142     (e)  A taxpayer who is eligible to receive the credit
143provided for in s. 624.51055 is not eligible to receive the
144credit provided by this section.
145     (5)  ADMINISTRATION; RULES.-
146     (a)  If the credit granted pursuant to this section is not
147fully used in any one year because of insufficient tax liability
148on the part of the corporation, the unused amount may be carried
149forward for a period not to exceed 3 years; however, any
150taxpayer that seeks to carry forward an unused amount of tax
151credit must submit an application for allocation of tax credits
152or carryforward credits as required in paragraph (d) in the year
153that the taxpayer intends to use the carryforward. This
154carryforward applies to all approved contributions made after
155January 1, 2012. A taxpayer may not convey, assign, or transfer
156the credit authorized by this section to another entity unless
157all of the assets of the taxpayer are conveyed, assigned, or
158transferred in the same transaction.
159     (b)  An application for a tax credit pursuant to this
160section shall be submitted to the department on forms
161established by rule of the department.
162     (c)  The department and the Department of Education shall
163develop a cooperative agreement to assist in the administration
164of this section.
165     (d)  The department shall adopt rules necessary to
166administer this section, including rules establishing
167application forms and procedures and governing the allocation of
168tax credits and carryforward credits under this section on a
169first-come, first-served basis.
170     (e)  The State Board of Education shall adopt rules to
171administer this section as it relates to the roles of the
172Department of Education and the Commissioner of Education.
173     (6)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.-All eligible
174contributions received by a public school shall be deposited in
175a manner consistent with s. 17.57(2).
176     (7)  PRESERVATION OF CREDIT.-If any provision or portion of
177subsection (4) or the application thereof to any person or
178circumstance is held unconstitutional by any court or is
179otherwise declared invalid, the unconstitutionality or
180invalidity shall not affect any credit earned under subsection
181(4) by any taxpayer with respect to any contribution paid to a
182public school before the date of a determination of
183unconstitutionality or invalidity. Such credit shall be allowed
184at such time and in such a manner as if a determination of
185unconstitutionality or invalidity had not been made, provided
186that nothing in this subsection by itself or in combination with
187any other provision of law shall result in the allowance of any
188credit to any taxpayer in excess of one dollar of credit for
189each dollar paid to a public school.
190     Section 2.  This act shall take effect July 1, 2011.


CODING: Words stricken are deletions; words underlined are additions.
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