Bill Text: FL S1090 | 2022 | Regular Session | Comm Sub
Bill Title: Corporate Income Tax
Spectrum: Bipartisan Bill
Status: (Failed) 2022-03-14 - Died in Appropriations [S1090 Detail]
Download: Florida-2022-S1090-Comm_Sub.html
Florida Senate - 2022 CS for SB 1090
By the Committee on Finance and Tax; and Senator Gruters
593-02694-22 20221090c1
1 A bill to be entitled
2 An act relating to the corporate income tax; amending
3 s. 220.03, F.S.; adopting the 2022 version of the
4 Internal Revenue Code for purposes of the state
5 corporate income tax code; providing for retroactive
6 operation; amending s. 220.13, F.S.; providing
7 applicability for adjustments taxpayers must make to
8 adjusted federal income with respect to bonus
9 depreciation; revising the adjustments taxpayers must
10 make to adjusted federal income with respect to
11 business interest; providing effective dates.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Effective upon becoming a law and operating
16 retroactively to January 1, 2022, paragraph (n) of subsection
17 (1) and paragraph (c) of subsection (2) of section 220.03,
18 Florida Statutes, are amended to read:
19 220.03 Definitions.—
20 (1) SPECIFIC TERMS.—When used in this code, and when not
21 otherwise distinctly expressed or manifestly incompatible with
22 the intent thereof, the following terms shall have the following
23 meanings:
24 (n) “Internal Revenue Code” means the United States
25 Internal Revenue Code of 1986, as amended and in effect on
26 January 1, 2022 2021, except as provided in subsection (3).
27 (2) DEFINITIONAL RULES.—When used in this code and neither
28 otherwise distinctly expressed nor manifestly incompatible with
29 the intent thereof:
30 (c) Any term used in this code has the same meaning as when
31 used in a comparable context in the Internal Revenue Code and
32 other statutes of the United States relating to federal income
33 taxes, as such code and statutes are in effect on January 1,
34 2022 2021. However, if subsection (3) is implemented, the
35 meaning of a term shall be taken at the time the term is applied
36 under this code.
37 Section 2. Effective January 1, 2023, paragraph (e) of
38 subsection (1) of section 220.13, Florida Statutes, is amended
39 to read:
40 220.13 “Adjusted federal income” defined.—
41 (1) The term “adjusted federal income” means an amount
42 equal to the taxpayer’s taxable income as defined in subsection
43 (2), or such taxable income of more than one taxpayer as
44 provided in s. 220.131, for the taxable year, adjusted as
45 follows:
46 (e) Adjustments related to federal acts.—Taxpayers shall be
47 required to make the adjustments prescribed in this paragraph
48 for Florida tax purposes with respect to certain tax benefits
49 received pursuant to the Economic Stimulus Act of 2008; the
50 American Recovery and Reinvestment Act of 2009; the Small
51 Business Jobs Act of 2010; the Tax Relief, Unemployment
52 Insurance Reauthorization, and Job Creation Act of 2010; the
53 American Taxpayer Relief Act of 2012; the Tax Increase
54 Prevention Act of 2014; the Consolidated Appropriations Act,
55 2016; the Tax Cuts and Jobs Act of 2017; and the Coronavirus
56 Aid, Relief, and Economic Security Act of 2020.
57 1.a. There shall be added to such taxable income an amount
58 equal to 100 percent of any amount deducted for federal income
59 tax purposes as bonus depreciation for the taxable year pursuant
60 to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
61 amended by s. 103 of Pub. L. No. 110-185; s. 1201 of Pub. L. No.
62 111-5; s. 2022 of Pub. L. No. 111-240; s. 401 of Pub. L. No.
63 111-312; s. 331 of Pub. L. No. 112-240; s. 125 of Pub. L. No.
64 113-295; s. 143 of Division Q of Pub. L. No. 114-113; and s.
65 13201 of Pub. L. No. 115-97, for property placed in service
66 after December 31, 2007, and before January 1, 2027.
67 b. For the taxable year and for each of the 6 subsequent
68 taxable years, there shall be subtracted from such taxable
69 income an amount equal to one-seventh of the amount by which
70 taxable income was increased pursuant to this subparagraph,
71 notwithstanding any sale or other disposition of the property
72 that is the subject of the adjustments and regardless of whether
73 such property remains in service in the hands of the taxpayer.
74 c. The provisions of Sub-subparagraph b. does do not apply
75 to amounts by which taxable income was increased pursuant to
76 this subparagraph for amounts deducted for federal income tax
77 purposes as bonus depreciation for qualified improvement
78 property as defined in s. 168(e)(6) of the Internal Revenue Code
79 of 1986, as amended by s. 13204 of Pub. L. No. 115-97.
80
81 This subparagraph does not apply to property placed in service
82 in taxable years beginning on or after January 1, 2023.
83 2. There shall be added to such taxable income an amount
84 equal to 100 percent of any amount in excess of $128,000
85 deducted for federal income tax purposes for the taxable year
86 pursuant to s. 179 of the Internal Revenue Code of 1986, as
87 amended by s. 102 of Pub. L. No. 110-185; s. 1202 of Pub. L. No.
88 111-5; s. 2021 of Pub. L. No. 111-240; s. 402 of Pub. L. No.
89 111-312; s. 315 of Pub. L. No. 112-240; and s. 127 of Pub. L.
90 No. 113-295, for taxable years beginning after December 31,
91 2007, and before January 1, 2015. For the taxable year and for
92 each of the 6 subsequent taxable years, there shall be
93 subtracted from such taxable income one-seventh of the amount by
94 which taxable income was increased pursuant to this
95 subparagraph, notwithstanding any sale or other disposition of
96 the property that is the subject of the adjustments and
97 regardless of whether such property remains in service in the
98 hands of the taxpayer.
99 3. There shall be added to such taxable income an amount
100 equal to the amount of deferred income not included in such
101 taxable income pursuant to s. 108(i)(1) of the Internal Revenue
102 Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
103 shall be subtracted from such taxable income an amount equal to
104 the amount of deferred income included in such taxable income
105 pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
106 as amended by s. 1231 of Pub. L. No. 111-5.
107 4. For taxable years beginning on or after January 1, 2023,
108 there shall be added to such taxable income an amount equal to
109 the amount of business interest taken as a deduction for federal
110 tax purposes subject to the limitation provided in s. 163(j) of
111 the Internal Revenue Code. There shall be subtracted from such
112 taxable income the amount of business interest paid or accrued
113 within the taxable year which would have been deductible at the
114 federal level consistent with s. 163 of the Internal Revenue
115 Code as it existed and applied immediately before the enactment
116 of the Tax Cuts and Jobs Act of 2017, Pub. L. No. 115-97 For
117 taxable years beginning after December 31, 2018, and before
118 January 1, 2021, there shall be added to such taxable income an
119 amount equal to the excess, if any, of:
120 a. One hundred percent of any amount deducted for federal
121 income tax purposes as business interest expense for the taxable
122 year pursuant to s. 163(j) of the Internal Revenue Code of 1986,
123 as amended by s. 2306 of Pub. L. No. 116-136; over
124 b. One hundred percent of the amount that would be
125 deductible for federal income tax purposes as business interest
126 expense for the taxable year if calculated pursuant to s. 163(j)
127 of the Internal Revenue Code of 1986, as amended by s. 13301 of
128 Pub. L. No. 115-97.
129
130 Any expense added back pursuant to this subparagraph shall be
131 treated as a disallowed business expense carryforward from prior
132 years for the year or years following the addition, until such
133 time as the expense has been used.
134 5. With respect to qualified improvement property as
135 defined in s. 168(e)(6) of the Internal Revenue Code of 1986, as
136 amended by s. 13204 of Pub. L. No. 115-97, that was placed in
137 service on or after January 1, 2018:
138 a. There shall be added to such taxable income an amount
139 equal to 100 percent of any amount deducted for federal income
140 tax purposes under s. 167(a) of the Internal Revenue Code of
141 1986. There shall be subtracted an amount equal to the amount of
142 depreciation that would have been deductible pursuant to s.
143 167(a) of the Internal Revenue Code of 1986 in effect on January
144 1, 2020, and without regard to s. 2307 of Pub. L. No. 116-136,
145 notwithstanding any sale or other disposition of the property
146 that is the subject of the adjustments and regardless of whether
147 such property remains in service in the hands of the taxpayer.
148 b. The department may adopt rules necessary to administer
149 the provisions of this subparagraph, including rules, forms, and
150 guidelines for computing depreciation on qualified improvement
151 property, as defined in s. 168(e)(6) of the Internal Revenue
152 Code of 1986.
153 6. For taxable years beginning after December 31, 2020, and
154 before January 1, 2026, the changes made to the Internal Revenue
155 Code by Pub. L. No. 116-260, Division EE, Title I, s. 116 and
156 Title II, s. 210 shall not apply to this chapter. Taxable income
157 under this section shall be calculated as though changes made by
158 those sections were not made to the Internal Revenue Code. The
159 Department of Revenue may adopt rules necessary to administer
160 the provisions of this subparagraph, including rules, forms, and
161 guidelines for treatment of expenses and depreciation related to
162 these changes.
163 7. Subtractions available under this paragraph may be
164 transferred to the surviving or acquiring entity following a
165 merger or acquisition and used in the same manner and with the
166 same limitations as specified by this paragraph.
167 8. The additions and subtractions specified in this
168 paragraph are intended to adjust taxable income for Florida tax
169 purposes, and, notwithstanding any other provision of this code,
170 such additions and subtractions shall be permitted to change a
171 taxpayer’s net operating loss for Florida tax purposes.
172 Section 3. Except as otherwise expressly provided in this
173 act, this act shall take effect upon becoming a law.
