Bill Text: FL S0878 | 2019 | Regular Session | Comm Sub

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Bill Title: Corporate Taxable Income Adjustments

Spectrum: Bipartisan Bill

Status: (Failed) 2019-05-03 - Died in Finance and Tax [S0878 Detail]

Download: Florida-2019-S0878-Comm_Sub.html

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       Florida Senate - 2019                              CS for SB 878
       
       
        
       By the Committee on Commerce and Tourism; and Senator Gruters
       
       
       
       
       
       577-02684-19                                           2019878c1
    1                        A bill to be entitled                      
    2         An act relating to corporate taxable income
    3         adjustments; amending s. 220.13, F.S.; providing that,
    4         for the purposes of calculating adjusted federal
    5         income, motor vehicle rental or leasing companies are
    6         not required to add to their taxable income certain
    7         amounts deducted for federal income tax purposes as
    8         bonus depreciation; defining the term “motor vehicle
    9         rental or leasing company”; providing retroactive
   10         applicability; authorizing the Department of Revenue
   11         to adopt emergency rules; providing for the expiration
   12         and renewal of such rules; providing an effective
   13         date.
   14          
   15  Be It Enacted by the Legislature of the State of Florida:
   16  
   17         Section 1. Paragraph (e) of subsection (1) of section
   18  220.13, Florida Statutes, is amended to read:
   19         220.13 “Adjusted federal income” defined.—
   20         (1) The term “adjusted federal income” means an amount
   21  equal to the taxpayer’s taxable income as defined in subsection
   22  (2), or such taxable income of more than one taxpayer as
   23  provided in s. 220.131, for the taxable year, adjusted as
   24  follows:
   25         (e) Adjustments related to federal acts.—Taxpayers shall be
   26  required to make the adjustments prescribed in this paragraph
   27  for Florida tax purposes with respect to certain tax benefits
   28  received pursuant to the Economic Stimulus Act of 2008, the
   29  American Recovery and Reinvestment Act of 2009, the Small
   30  Business Jobs Act of 2010, the Tax Relief, Unemployment
   31  Insurance Reauthorization, and Job Creation Act of 2010, the
   32  American Taxpayer Relief Act of 2012, the Tax Increase
   33  Prevention Act of 2014, the Consolidated Appropriations Act,
   34  2016, and the Tax Cuts and Jobs Act of 2017.
   35         1.a. Except as provided under subparagraph b., there shall
   36  be added to such taxable income an amount equal to 100 percent
   37  of any amount deducted for federal income tax purposes as bonus
   38  depreciation for the taxable year pursuant to ss. 167 and 168(k)
   39  of the Internal Revenue Code of 1986, as amended by s. 103 of
   40  Pub. L. No. 110-185, s. 1201 of Pub. L. No. 111-5, s. 2022 of
   41  Pub. L. No. 111-240, s. 401 of Pub. L. No. 111-312, s. 331 of
   42  Pub. L. No. 112-240, s. 125 of Pub. L. No. 113-295, s. 143 of
   43  Division Q of Pub. L. No. 114-113, and s. 13201 of Pub. L. No.
   44  115-97, for property placed in service after December 31, 2007,
   45  and before January 1, 2027. For the taxable year and for each of
   46  the 6 subsequent taxable years, there shall be subtracted from
   47  such taxable income an amount equal to one-seventh of the amount
   48  by which taxable income was increased pursuant to this
   49  subparagraph, notwithstanding any sale or other disposition of
   50  the property that is the subject of the adjustments and
   51  regardless of whether such property remains in service in the
   52  hands of the taxpayer.
   53         b. If the property that is the subject of the adjustments
   54  under subparagraph a. is a motor vehicle owned by a motor
   55  vehicle rental or leasing company, the motor vehicle rental or
   56  leasing company is not required to add to its taxable income any
   57  amount deducted for federal income tax purposes as bonus
   58  depreciation for the taxable year pursuant to ss. 167 and 168(k)
   59  of the Internal Revenue Code of 1986, as amended by s. 103 of
   60  Pub. L. No. 110-185, s. 1201 of Pub. L. No. 111-5, s. 2022 of
   61  Pub. L. No. 111-240, s. 401 of Pub. L. No. 111-312, s. 331 of
   62  Pub. L. No. 112-240, s. 125 of Pub. L. No. 113-295, s. 143 of
   63  Division Q of Pub. L. No. 114-113, and s. 13201 of Pub. L. No.
   64  115-97. As used in this subparagraph, the term “motor vehicle
   65  rental or leasing company” means:
   66         (I) An assignee from a retail lessor, as defined in s.
   67  521.003, with a majority of its lease transactions for motor
   68  vehicles to persons with no direct or indirect affiliation with
   69  the entity; or
   70         (II) An entity that is engaged in the business of renting
   71  or leasing motor vehicles to the general public and that rents
   72  or leases a majority of its motor vehicles to persons with no
   73  direct or indirect affiliation with the entity.
   74         2. There shall be added to such taxable income an amount
   75  equal to 100 percent of any amount in excess of $128,000
   76  deducted for federal income tax purposes for the taxable year
   77  pursuant to s. 179 of the Internal Revenue Code of 1986, as
   78  amended by s. 102 of Pub. L. No. 110-185, s. 1202 of Pub. L. No.
   79  111-5, s. 2021 of Pub. L. No. 111-240, s. 402 of Pub. L. No.
   80  111-312, s. 315 of Pub. L. No. 112-240, and s. 127 of Pub. L.
   81  No. 113-295, for taxable years beginning after December 31,
   82  2007, and before January 1, 2015. For the taxable year and for
   83  each of the 6 subsequent taxable years, there shall be
   84  subtracted from such taxable income one-seventh of the amount by
   85  which taxable income was increased pursuant to this
   86  subparagraph, notwithstanding any sale or other disposition of
   87  the property that is the subject of the adjustments and
   88  regardless of whether such property remains in service in the
   89  hands of the taxpayer.
   90         3. There shall be added to such taxable income an amount
   91  equal to the amount of deferred income not included in such
   92  taxable income pursuant to s. 108(i)(1) of the Internal Revenue
   93  Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
   94  shall be subtracted from such taxable income an amount equal to
   95  the amount of deferred income included in such taxable income
   96  pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
   97  as amended by s. 1231 of Pub. L. No. 111-5.
   98         4. Subtractions available under this paragraph may be
   99  transferred to the surviving or acquiring entity following a
  100  merger or acquisition and used in the same manner and with the
  101  same limitations as specified by this paragraph.
  102         5. The additions and subtractions specified in this
  103  paragraph are intended to adjust taxable income for Florida tax
  104  purposes, and, notwithstanding any other provision of this code,
  105  such additions and subtractions shall be permitted to change a
  106  taxpayer’s net operating loss for Florida tax purposes.
  107         Section 2. The amendment made by this act to s. 220.13,
  108  Florida Statutes, applies retroactively to taxable years
  109  beginning on or after January 1, 2018.
  110         Section 3. (1) The Department of Revenue is authorized, and
  111  all conditions are deemed to be met, to adopt emergency rules
  112  pursuant to s. 120.54(4), Florida Statutes, for the purpose of
  113  administering the amendment made by this act to s. 220.13,
  114  Florida Statutes.
  115         (2) Notwithstanding any other law, emergency rules adopted
  116  pursuant to subsection (1) are effective for 6 months after
  117  adoption and may be renewed during the pendency of procedures to
  118  adopt permanent rules addressing the subject of the emergency
  119  rules.
  120         Section 4. This act shall take effect upon becoming a law.