The bill amends Florida's corporate income tax laws by redefining key terms, particularly introducing the concept of a "unitary combined group," which includes corporations related through common ownership with integrated business activities. It specifies that taxpayers are now defined to include members of such groups and revises the definition of "adjusted federal income" to limit certain deductions and require specific subtractions for dividends within the group. The bill repeals the existing section on adjusted federal income for affiliated groups and establishes new sections that mandate all members of a unitary combined group to use a combined reporting method for tax purposes, enhancing compliance and clarity in tax obligations.

Additionally, the bill outlines new requirements for filing corporate income tax returns for unitary combined groups, including a computational schedule for adjusted federal income and intercompany eliminations. It grants the executive director of the department authority to prevent tax avoidance by adjusting income or apportionment factors as necessary. The bill also updates various sections of the Florida Statutes regarding tax exemptions, apportionment, and tax credits, while ensuring that any additional revenue generated will be deposited into the General Revenue Fund. The changes are set to take effect on July 1, 2026, with a requirement for combined tax returns starting from the taxable year beginning on or after January 1, 2027.

Statutes affected:
S 238 Filed: 220.03, 220.13, 220.131, 220.183, 220.1875, 220.1876, 220.1877, 220.18775, 220.1878, 220.19, 220.1991, 220.51, 220.64