Title: Residential Graywater System Tax Credits

Summary: Authorizes DOR to disclose information related to specified tax credits to DEP; provides tax credit to developers & homebuilders for certain graywater purchased during taxable year; provides cap on amount of tax credit; specifies information developer or homebuilder must provide to receive credit; requires DEP to make certain determinations & certify such to DOR; prohibits certification of credits after certain date; authorizes tax credits to be carried forward.

Full Text:
An act relating to residential graywater system tax credits; amending s. 213.053, F.S.; authorizing the Department of Revenue to disclose information relating to a residential graywater system tax credit to the Department of Environmental Protection; creat ing s. 220.199, F.S.; providing definitions; providing a tax credit to developers and homebuilders for certain graywater systems purchased during the taxable year; providing a cap on the amount of the tax credit per system and per developer or homebuilder; specifying information the developer or homebuilder must provide; requiring the Department of Environmental Protection to make certain determination and to certify such determinations within a specified time frame; requiring such determinations be include don specified returns; prohibiting the certification of credits for tax years after a certain date; authorizing tax credits to be carried forward for up to a specified number of years; authorizing the Department of Revenue and the Department of Environmen tal Protection to adopt rules; providing for future repeal; amending s. 220.02, F.S.; revising the order in which credits may be taken to include credits created by this act; amending s. 220.13, F.S.; revising the definition of CS/HB 2023 the term "adjusted federal i ncome" to include credits created by this act; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Paragraph (o) of subsection (8) of section 213.053, Florida Statutes, is amended to read: 213.053 Confidentiality and information sharing.-(8) Notwithstanding any other provision of this section, the department may provide: (o) Information relative to ss. 220.1845,220.199, and 376.30781 to the Department of Environmental Protection in the conduct of its official business. Disclosure of information under this subsection shall be pursuant to a written agreement between the executive director and the agency. Such agencies, governmental or nongovernmental, shall be bound by the same requirements of co nfidentiality as the Department of Revenue. Breach of confidentiality is a misdemeanor of the first degree, punishable as provided by s. 775.082 or s. 775.083. Section 2. Section 220.199, Florida Statutes, is created to read: 220.199 Residential gray water system tax credit.-(1) For purposes of this section, the term: CS/HB 2023 (a) "Developer" has the same meaning as in s. 380.031(2). (b) "Graywater" has the same meaning as in s. 381.0065(2)(f). (2) For taxable years beginning on or after January 1, 2024, a developer or homebuilder is eligible to receive a credit against the tax imposed by this chapter in an amount up to 56 percent of the cost of each NSF/ANSI Class Rcertified noncommercial, residential graywater system purchased during the taxable year. The tax credit may not exceed $4,200 for each system purchased or $2,000,000 per developer or homebuilder per taxable year. (3)(a) To claim a tax credit under this section, a developer or homebuilder must submit an application to the Department of Environmental Protection which includes documentation showing that the developer or homebuilder has purchased for use in this state a graywater system meeting the requirements of subsection (2) and that the graywater system meets the functionality assuranc es provided in s. 403.892(3)(c). The Department of Environmental Protection shall make a determination on the eligibility of the applicant for the credit sought and shall certify the determination to the applicant and the Department of Revenue within da ys after receipt of a completed application. The taxpayer must attach the certification from the Department of Environmental Protection to the tax return on which the credit is claimed. CS/HB 2023 (b) No credits may be certified by the Department of Environmental Protection for taxable years beginning on or after January 1, 2027. (4) Any unused tax credit authorized under this section may be carried forward and claimed by the taxpayer for up to 80 taxable years. (5) The department shall adopt rules to administer this section, including, but not limited to, rules prescribing the method to claim a credit certified by the Department of Environmental Protection under this section. (6) The Department of Environmental Protection may adopt rules to administer this sec tion, including, but not limited to, rules relating to application forms for credit approval and certification and the application and certification procedures, guidelines, and requirements necessary to administer this section. (7) This section is repeal ed December 31, 2030. Section 3. Subsection (8) of section 220.02, Florida Statutes, is amended to read: 220.02 Legislative intent.-(8) It is the intent of the Legislature that credits against either the corporate income tax or the franchise tax be applied in the following order: those enumerated in s. 631.828, those enumerated in s. 220.191, those enumerated in s. 220.181, those enumerated in s. 220.183, those enumerated in s. 220.182, CS/HB 2023 those enumerated in s. 220.1895, those enumerated in s. 220.19 5, those enumerated in s. 220.184, those enumerated in s. 220.186, those enumerated in s. 220.1845, those enumerated in s. 220.19, those enumerated in s. 220.185, those enumerated in s. 220.1875, those enumerated in s. 220.1876, those enumerated in s. 220.1877, those enumerated in s. 220.193, those enumerated in s. 288.9916, those enumerated in s. 220.1899, those enumerated in s. 220.194, those enumerated in s. 220.196, those enumerated in s. 220.198, and those enumerated in s. 220.1915,and those enumerate din s. 220.199.Section 4. Paragraph (a) of subsection (1) of section 220.13, Florida Statutes, is amended to read: 220.13 "Adjusted federal income" defined.-(1) The term "adjusted federal income" means an amount equal to the taxpayer's taxable i ncome as defined in subsection (2), or such taxable income of more than one taxpayer as provided in s. 220.131, for the taxable year, adjusted as follows: (a) Additions.-There shall be added to such taxable income: 1.a. The amount of any tax upon or me asured by income, excluding taxes based on gross receipts or revenues, paid or accrued as a liability to the District of Columbia or any state of the United States which is deductible from gross income in the computation of taxable income for the taxable year. CS/HB 2023 b. Notwithstanding sub-subparagraph a., if a credit taken under s. 220.1875, s. 220.1876, or s. 220.1877 is added to taxable income in a previous taxable year under subparagraph 11. and is taken as a deduction for federal tax purposes in the current taxable year, the amount of the deduction allowed shall not be added to taxable income in the current year. The exception in this sub-subparagraph is intended to ensure that the credit under s. 220.1875, s. 220.1876, or s. 220.1877 is added in the applica ble taxable year and does not result in a duplicate addition in a subsequent year. 2. The amount of interest which is excluded from taxable income under s. 103(a) of the Internal Revenue Code or any other federal law, less the associated expenses disallo wed in the computation of taxable income under s. of the Internal Revenue Code or any other law, excluding percent of any amounts included in alternative minimum taxable income, as defined in s. 55(b)(2) of the Internal Revenue Code, if the taxpayer pays tax under s. 220.11(3). 3. In the case of a regulated investment company or real estate investment trust, an amount equal to the excess of the net long-term capital gain for the taxable year over the amount of the capital gain dividends attributabl eto the taxable year. 4. That portion of the wages or salaries paid or incurred for the taxable year which is equal to the amount of the credit allowable for the taxable year under s. 220.181. This CS/HB 2023 subparagraph shall expire on the date specified in s. 90.016 for the expiration of the Florida Enterprise Zone Act. 5. That portion of the ad valorem school taxes paid or incurred for the taxable year which is equal to the amount of the credit allowable for the taxable year under s. 220.182. This subparagra ph shall expire on the date specified in s. 290.016 for the expiration of the Florida Enterprise Zone Act. 6. The amount taken as a credit under s. 220.195 which is deductible from gross income in the computation of taxable income for the taxable year. 7. That portion of assessments to fund a guaranty association incurred for the taxable year which is equal to the amount of the credit allowable for the taxable year. 8. In the case of a nonprofit corporation which holds a pari-mutuel permit and which i sexempt from federal income tax as a farmers' cooperative, an amount equal to the excess of the gross income attributable to the pari-mutuel operations over the attributable expenses for the taxable year. 9. The amount taken as a credit for the taxable year under s. 220.1895. 10. Up to nine percent of the eligible basis of any designated project which is equal to the credit allowable for the taxable year under s. 220.185. 11. Any amount taken as a credit for the taxable year under s. 220.1875, s..1876, or s. 220.1877. The addition in CS/HB 2023 this subparagraph is intended to ensure that the same amount is not allowed for the tax purposes of this state as both a deduction from income and a credit against the tax. This addition is not intended to result in a dding the same expense back to income more than once. 12. The amount taken as a credit for the taxable year under s. 220.193. 13. Any portion of a qualified investment, as defined in s. 288.9913, which is claimed as a deduction by the taxpayer and taken as a credit against income tax pursuant to s. 288.9916. 14. The costs to acquire a tax credit pursuant to s. 288.1254(5) that are deducted from or otherwise reduce federal taxable income for the taxable year. 15. The amount taken as a credit for the taxable year pursuant to s. 220.194. 16. The amount taken as a credit for the taxable year under s. 220.196. The addition in this subparagraph is intended to ensure that the same amount is not allowed for the tax purposes of this state as both a deductio nfrom income and a credit against the tax. The addition is not intended to result in adding the same expense back to income more than once. 17. The amount taken as a credit for the taxable year pursuant to s. 220.198. 18. The amount taken as a credit for the taxable year pursuant to s. 220.1915. CS/HB 2023 19. The amount taken as a credit for the taxable year pursuant to s. 220.199. Section 5. This act shall take effect July 1, 2023.