Title: Internship Tax Credit Program

Summary: Specifying the order in which the Florida Internship Tax Credit Program corporate income tax credit created by this act is applied; requiring certain claimed tax credit amounts to be added to a taxpayer's adjusted federal income; designating the "Florida Internship Tax Credit Program"; providing a corporate income tax credit for qualified businesses employing student interns if certain criteria are met, etc.

Full Text:
An act relating to an internship tax credit program; amending s. 220.02, F.S.; specifying the order in which the Florida Internship Tax Credit Program corporate income tax credit created by this act is applied; amending s. 220.13, F.S.; requiring certain claimed tax credit amounts to be added to a taxpayer s adjusted federal income; creating s. 220.198, F.S.; providing a short title; defining terms; providing a corporate income tax credit for qualified businesses employing student interns if certain criteria are met; specifying the amount of the credit a qualified business may claim per student intern; specifying a limit on the credit claimed per taxable year; authorizing the Department of Revenue to adopt certain rules; authorizing a qualified business to carry forward unused credit for a certain time; authorizing the department to adopt emergency rules; providing for expiration of that authority; providing effective dates. Be It Enacted by the Legislature of the State of Florida: Section 1. 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, those enumerated in s. 220.1895, those enumerated in s. 220.195, 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. 220.193, those enumerated in s. 288.9916, those enumerated in s. 220.1899, those enumerated in s. 220.194, and those enumerated in s. 220.196,and those enumerated in s. 220.198.Section 2. 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 income 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 measured 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. b. Notwithstanding sub-subparagraph a., if a credit taken under s. 220.1875 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 is added in the applicable 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 disallowed 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 attributable to 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 subparagraph shall expire on the date specified in s. 290.016 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 subparagraph 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 is exempt 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. The amount taken as a credit for the taxable year under s. 220.1875. 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 deduction from income and a credit against the tax. This addition is not intended to result in adding 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 deduction from 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. Section 3. Section 220.198, Florida Statutes, is created to read: 220.198   Internship tax credit program.  (1)   This section may be cited as the  Florida Internship Tax Credit Program.  (2)   As used in this section, the term: (a)    Full time  means at least hours per week. (b)    Qualified business  means a business that is in existence and has been continuously operating for at least years. (c)    Student intern  means a person who has completed at least credit hours at a state university or a Florida College System institution; a person who is enrolled in a career center operated by a school district under s. 1001.44 or a charter technical career center; or any graduate student enrolled at a state university. (3)   For taxable years beginning on or after January 1, 2022, a qualified business is eligible for a credit against the tax imposed by this chapter in the amount of $2,000 per student intern if all of the following apply: (a)   The qualified business employed at least one student intern in an internship in which the student intern worked full time in this state for at least consecutive weeks, and the qualified business provides the department documentation evidencing each internship claimed. (b)   The qualified business provides the department documentation for the current taxable year showing that at least percent of the business  full-time employees were previously employed by that business as student interns. (c)   At the start of an internship, each student intern provides the qualified business with verification by the student intern s state university, Florida College System institution, career center operated by a school district under s. 1001.44, or charter technical career center that the student intern is enrolled and maintains a minimum grade point average of 2.0 on a 4.0 scale. (4)   Notwithstanding paragraph (3)(b), a qualified business that, on average for the immediately preceding years, employed or fewer full-time employees may receive the tax credit if it provides documentation that it previously hired at least one student intern and, for the current taxable year, that it employs on a full-time basis at least one employee who was previously employed by that qualified business as a student intern. (5)   A qualified business may not claim a tax credit of more than $10,000 in any one taxable year. (6)   The department may adopt rules governing the manner and form of applications for the tax credit and establishing qualification requirements for the tax credit. (7)   A qualified business may carry forward any unused portion of a tax credit under this section for up to taxable years. Section 4.  (1) The Department of Revenue is authorized, and all conditions are deemed met, to adopt emergency rules pursuant to s. 120.54(4), Florida Statutes, for the purpose of administering this act. (2) Notwithstanding any other law, emergency rules adopted pursuant to subsection (1) are effective for months after adoption and may be renewed during the pendency of procedures to adopt permanent rules addressing the subject of the emergency rules. (3) This section shall take effect upon this act becomin ga law and expires July 1, 2022.Section 5. Except as otherwise expressly provided in this act and except for this section, which shall take effect upon this act becoming a law, this act shall take effect July 1, 2021.