F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 769 2023
1 A bill to be entitled
2 An act relating to corporate income tax; amending s.
3 220.03, F.S.; revising and providing definitions;
4 amending s. 220.13, F.S.; revising the definition of
5 the term "adjusted federal income" to prohibit
6 specified deductions, limit certain carryovers, and
7 require subtractions of certain dividends paid and
8 received within a unitary combined group to determine
9 subtractions from taxable income; conforming
10 provisions to changes made by the act; repealing s.
11 220.131, F.S., relating to the adjusted federal income
12 of affiliated groups; creating s. 220.136, F.S.;
13 specifying circumstances under which a corporation is
14 a member of a unitary combined group; providing
15 construction; defining the term "United States";
16 creating s. 220.1363, F.S.; defining the term "unitary
17 combined reporting method"; specifying requirements
18 for, limitations on, and prohibitions in calculating
19 and reporting income in a unitary combined group
20 return; requiring all members of a unitary combined
21 group to use the unitary combined reporting method;
22 defining the term "sale"; specifying requirements for
23 designating the filing member and the taxable year of
24 the unitary combined group; specifying income
25 reporting requirements for certain members of the
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26 unitary combined group; requiring that a unitary
27 combined group return include a specified
28 computational schedule and domestic disclosure
29 spreadsheet; authorizing the executive director of the
30 Department of Revenue to undertake certain actions in
31 specified circumstances; authorizing the Department of
32 Revenue to adopt rules; providing legislative intent
33 regarding the adoption of rules; amending s. 220.14,
34 F.S.; revising the calculation for prorating a certain
35 corporate income tax exemption to reflect leap years;
36 conforming a provision to changes made by the act;
37 amending s. 220.15, F.S.; revising provisions
38 determining when certain sales are considered to have
39 occurred in this state; amending ss. 220.183,
40 220.1845, 220.1875, 220.1876, 220.1877, 220.191,
41 220.193, and 220.51, F.S.; conforming provisions to
42 changes made by the act; amending s. 220.64, F.S.;
43 providing applicability of unitary combined group
44 provisions to the franchise tax; conforming provisions
45 to changes made by the act; amending ss. 288.1254 and
46 376.30781, F.S.; conforming provisions to changes made
47 by the act; providing, beginning on a specified date,
48 requirements for corporate income tax return filings
49 for certain taxpayers; requiring that recaptured funds
50 be deposited into the General Revenue Fund; providing
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51 an effective date.
52
53 Be It Enacted by the Legislature of the State of Florida:
54
55 Section 1. Paragraph (z) of subsection (1) of section
56 220.03, Florida Statutes, is amended, and paragraph (gg) is
57 added to that subsection, to read:
58 220.03 Definitions.—
59 (1) SPECIFIC TERMS.—When used in this code, and when not
60 otherwise distinctly expressed or manifestly incompatible with
61 the intent thereof, the following terms shall have the following
62 meanings:
63 (z) "Taxpayer" means any corporation subject to the tax
64 imposed by this code, and includes all corporations that are
65 members of a unitary combined group for which a consolidated
66 return is filed under s. 220.131. However, the term "taxpayer"
67 does not include a corporation having no individuals, (including
68 individuals employed by an affiliate,) receiving compensation in
69 this state as defined in s. 220.15 when the only property owned
70 or leased by the said corporation, (including an affiliate,) in
71 this state is located at the premises of a printer with which it
72 has contracted for printing, if such property consists of the
73 final printed product, property which becomes a part of the
74 final printed product, or property from which the printed
75 product is produced.
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76 (gg) "Unitary combined group" means a group of
77 corporations related through common ownership whose business
78 activities are integrated with, dependent upon, or contribute to
79 a flow of value among members of the group.
80 Section 2. Subsection (1) and paragraph (f) of subsection
81 (2) of section 220.13, Florida Statutes, are amended to read:
82 220.13 "Adjusted federal income" defined.—
83 (1) The term "adjusted federal income" means an amount
84 equal to the taxpayer's taxable income as defined in subsection
85 (2), or such taxable income of a unitary combined group more
86 than one taxpayer as provided in s. 220.1363 s. 220.131, for the
87 taxable year, adjusted as follows:
88 (a) Additions.—There shall be added to such taxable
89 income:
90 1.a. The amount of any tax upon or measured by income,
91 excluding taxes based on gross receipts or revenues, paid or
92 accrued as a liability to the District of Columbia or any state
93 of the United States which is deductible from gross income in
94 the computation of taxable income for the taxable year.
95 b. Notwithstanding sub-subparagraph a., if a credit taken
96 under s. 220.1875, s. 220.1876, or s. 220.1877 is added to
97 taxable income in a previous taxable year under subparagraph 11.
98 and is taken as a deduction for federal tax purposes in the
99 current taxable year, the amount of the deduction allowed shall
100 not be added to taxable income in the current year. The
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101 exception in this sub-subparagraph is intended to ensure that
102 the credit under s. 220.1875, s. 220.1876, or s. 220.1877 is
103 added in the applicable taxable year and does not result in a
104 duplicate addition in a subsequent year.
105 2. The amount of interest which is excluded from taxable
106 income under s. 103(a) of the Internal Revenue Code or any other
107 federal law, less the associated expenses disallowed in the
108 computation of taxable income under s. 265 of the Internal
109 Revenue Code or any other law, excluding 60 percent of any
110 amounts included in alternative minimum taxable income, as
111 defined in s. 55(b)(2) of the Internal Revenue Code, if the
112 taxpayer pays tax under s. 220.11(3).
113 3. In the case of a regulated investment company or real
114 estate investment trust, an amount equal to the excess of the
115 net long-term capital gain for the taxable year over the amount
116 of the capital gain dividends attributable to the taxable year.
117 4. That portion of the wages or salaries paid or incurred
118 for the taxable year which is equal to the amount of the credit
119 allowable for the taxable year under s. 220.181. This
120 subparagraph shall expire on the date specified in s. 290.016
121 for the expiration of the Florida Enterprise Zone Act.
122 5. That portion of the ad valorem school taxes paid or
123 incurred for the taxable year which is equal to the amount of
124 the credit allowable for the taxable year under s. 220.182. This
125 subparagraph shall expire on the date specified in s. 290.016
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126 for the expiration of the Florida Enterprise Zone Act.
127 6. The amount taken as a credit under s. 220.195 which is
128 deductible from gross income in the computation of taxable
129 income for the taxable year.
130 7. That portion of assessments to fund a guaranty
131 association incurred for the taxable year which is equal to the
132 amount of the credit allowable for the taxable year.
133 8. In the case of a nonprofit corporation which holds a
134 pari-mutuel permit and which is exempt from federal income tax
135 as a farmers' cooperative, an amount equal to the excess of the
136 gross income attributable to the pari-mutuel operations over the
137 attributable expenses for the taxable year.
138 9. The amount taken as a credit for the taxable year under
139 s. 220.1895.
140 10. Up to nine percent of the eligible basis of any
141 designated project which is equal to the credit allowable for
142 the taxable year under s. 220.185.
143 11. Any amount taken as a credit for the taxable year
144 under s. 220.1875, s. 220.1876, or s. 220.1877. The addition in
145 this subparagraph is intended to ensure that the same amount is
146 not allowed for the tax purposes of this state as both a
147 deduction from income and a credit against the tax. This
148 addition is not intended to result in adding the same expense
149 back to income more than once.
150 12. The amount taken as a credit for the taxable year
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151 under s. 220.193.
152 13. Any portion of a qualified investment, as defined in
153 s. 288.9913, which is claimed as a deduction by the taxpayer and
154 taken as a credit against income tax pursuant to s. 288.9916.
155 14. The costs to acquire a tax credit pursuant to s.
156 288.1254(5) that are deducted from or otherwise reduce federal
157 taxable income for the taxable year.
158 15. The amount taken as a credit for the taxable year
159 pursuant to s. 220.194.
160 16. The amount taken as a credit for the taxable year
161 under s. 220.196. The addition in this subparagraph is intended
162 to ensure that the same amount is not allowed for the tax
163 purposes of this state as both a deduction from income and a
164 credit against the tax. The addition is not intended to result
165 in adding the same expense back to income more than once.
166 17. The amount taken as a credit for the taxable year
167 pursuant to s. 220.198.
168 18. The amount taken as a credit for the taxable year
169 pursuant to s. 220.1915.
170 (b) Subtractions.—
171 1. There shall be subtracted from such taxable income:
172 a. The net operating loss deduction allowable for federal
173 income tax purposes under s. 172 of the Internal Revenue Code
174 for the taxable year, except that any net operating loss that is
175 transferred pursuant to s. 220.194(6) may not be deducted by the
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176 seller,
177 b. The net capital loss allowable for federal income tax
178 purposes under s. 1212 of the Internal Revenue Code for the
179 taxable year,
180 c. The excess charitable contribution deduction allowable
181 for federal income tax purposes under s. 170(d)(2) of the
182 Internal Revenue Code for the taxable year, and
183 d. The excess contributions deductions allowable for
184 federal income tax purposes under s. 404 of the Internal Revenue
185 Code for the taxable year.
186
187 However, a net operating loss and a capital loss shall never be
188 carried back as a deduction to a prior taxable year, but all
189 deductions attributable to such losses shall be deemed net
190 operating loss carryovers and capital loss carryovers,
191 respectively, and treated in the same manner, to the same
192 extent, and for the same time periods as are prescribed for such
193 carryovers in ss. 172 and 1212, respectively, of the Internal
194 Revenue Code. A deduction is not allowed for net operating
195 losses, net capital losses, or excess contribution de ductions
196 under 26 U.S.C. ss. 170(d)(2), 172, 1212, and 404 for a member
197 of a unitary combined group which is not a United States member.
198 Carryovers of net operating losses, net capital losses, or
199 excess contribution deductions under 26 U.S.C. ss. 170(d)(2) ,
200 172, 1212, and 404 may be subtracted only by the member of the
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201 unitary combined group which generates a carryover.
202 2. There shall be subtracted from such taxable income any
203 amount to the extent included therein the following:
204 a. Dividends treated as received from sources without the
205 United States, as determined under s. 862 of the Internal
206 Revenue Code.
207 b. All amounts included in taxable income under s. 78, s.
208 951, or s. 951A of the Internal Revenue Code.
209
210 However, any amount subtracted under this subparagraph is
211 allowed only to the extent such amount is not deductible in
212 determining federal taxable income. As to any amount subtracted
213 under this subparagraph, there shall be added to such taxable
214 income all expenses deducted on the taxpayer's return f or the
215 t