Title: Corporate Income Tax

Summary: Adopting the 2015 version of the Internal Revenue Code; incorporating a reference to a recent federal act into state law for the purpose of defining the term "adjusted federal income"; revising the treatment by this state of certain depreciation and expensing of assets that are allowed for federal income tax purposes, etc.

Full Text:
An act relating to the corporate income tax; amending s. 220.03, F.S.; adopting the 2015 version of the Internal Revenue Code; amending s. 220.13, F.S.; incorporating a reference to a recent federal act into state law for the purpose of defining the term  adjusted federal income ; revising the treatment by this state of certain depreciation and expensing of assets that are allowed for federal income tax purposes; authorizing the Department of Revenue to adopt emergency rules; reenacting s. 1009.97(3)(l), F.S., relating to prepaid college board programs, to incorporate the amendment made to s. 220.03, F.S., in a reference thereto; providing for retroactive application; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Paragraph (n) of subsection (1) and paragraph (c) of subsection (2) of section 220.03, Florida Statutes, are amended to read: 220.03 Definitions.  (1) SPECIFIC TERMS. When used in this code, and when not otherwise distinctly expressed or manifestly incompatible with the intent thereof, the following terms shall have the following meanings: (n) Internal Revenue Code  means the United States Internal Revenue Code of 1986, as amended and in effect on January 1, 2015 2014,except as provided in subsection (3). (2) DEFINITIONAL RULES. When used in this code and neither otherwise distinctly expressed nor manifestly incompatible with the intent thereof: (c) Any term used in this code has the same meaning as when used in a comparable context in the Internal Revenue Code and other statutes of the United States relating to federal income taxes, as such code and statutes are in effect on January 1, 2015 2014.However, if subsection (3) is implemented, the meaning of a term shall be taken at the time the term is applied under this code. Section 2. Paragraph (e) 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: (e)  Adjustments related to federal acts. Taxpayers shall be required to make the adjustments prescribed in this paragraph for Florida tax purposes with respect to certain tax benefits received pursuant to the Economic Stimulus Act of 2008, the American Recovery and Reinvestment Act of 2009, the Small Business Jobs Act of 2010, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, and the American Taxpayer Relief Act of 2012,and the Tax Increase Prevention Act of 2014.1. There shall be added to such taxable income an amount equal to percent of any amount deducted for federal income tax purposes as bonus depreciation for the taxable year pursuant to ss. and 168(k) of the Internal Revenue Code of 1986, as amended by s. of Pub. L. No. 110-185, s. 1201 of Pub. L. No. 111-5, s. 2022 of Pub. L. No. 111-240, s. of Pub. L. No. 111-312, and s. of Pub. L. No. 112-240, and s. of Pub. L. No. 113-295, for property placed in service after December 31, 2007, and before January 1, 2015 2014.For the taxable year and for each of the subsequent taxable years, there shall be subtracted from such taxable income an amount equal to one seventh of the amount by which taxable income was increased pursuant to this subparagraph, notwithstanding any sale or other disposition of the property that is the subject of the adjustments and regardless of whether such property remains in service in the hands of the taxpayer. 2. There shall be added to such taxable income an amount equal to percent of any amount in excess of $128,000 deducted for federal income tax purposes for the taxable year pursuant to s. of the Internal Revenue Code of 1986, as amended by s. of Pub. L. No. 110-185, s. 1202 of Pub. L. No. 111-5, s. 2021 of Pub. L. No. 111-240, s. of Pub. L. No. 111-312, and s. of Pub. L. No. 112-240, and s. of Pub. L. No. 113-295, for taxable years beginning after December 31, 2007, and before January 1, 2015 2014.For the taxable year and for each of the subsequent taxable years, there shall be subtracted from such taxable income one-seventh of the amount by which taxable income was increased pursuant to this subparagraph, notwithstanding any sale or other disposition of the property that is the subject of the adjustments and regardless of whether such property remains in service in the hands of the taxpayer. 3. There shall be added to such taxable income an amount equal to the amount of deferred income not included in such taxable income pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There shall be subtracted from such taxable income an amount equal to the amount of deferred income included in such taxable income pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. 4. Subtractions available under this paragraph may be transferred to the surviving or acquiring entity following a merger or acquisition and used in the same manner and with the same limitations as specified by this paragraph. 5. The additions and subtractions specified in this paragraph are intended to adjust taxable income for Florida tax purposes, and, notwithstanding any other provision of this code, such additions and subtractions shall be permitted to change a taxpayer s net operating loss for Florida tax purposes. Section 3.  (1)  The Department of Revenue is authorized, and all conditions are deemed to be met, to adopt emergency rules pursuant to s. 120.54(4), Florida Statutes, for the purpose of implementing 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 expires January 1, 2018. Section 4. For the purpose of incorporating the amendment made by this act to section 220.03, Florida Statutes, in a reference thereto, paragraph (l) of subsection (3) of section 1009.97, Florida Statutes, is reenacted to read: 1009.97 General provisions.  (3) DEFINITIONS. As used in ss. 1009.97-1009.984, the term: (l) Internal Revenue Code  means the Internal Revenue Code of 1986, as defined in s. 220.03(1), and regulations adopted pursuant thereto. Section 5. This act shall take effect upon becoming a law and shall operate retroactively to January 1, 2015.