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       Florida Senate - 2010                                    SB 1188
       By Senator Altman
       24-00596A-10                                          20101188__
    1                        A bill to be entitled                      
    2         An act relating to commercial launch zone tax
    3         incentives; creating s. 220.194, F.S.; providing
    4         intent; providing definitions; authorizing certain
    5         commercial spaceflight businesses to take a credit
    6         against the corporate income tax for certain
    7         commercial spaceflight projects; specifying eligible
    8         tax credits; specifying criteria, requirements, and
    9         limitations for individual tax credits; establishing
   10         eligibility requirements for the tax credits; allowing
   11         for the carryforward of tax credits under certain
   12         circumstances; providing application and certification
   13         requirements; requiring the Office of Tourism, Trade,
   14         and Economic Development to determine the eligibility
   15         of taxpayers; providing for the expiration and renewal
   16         of a taxpayer‘s eligibility for tax credits; providing
   17         for administration and auditing of tax credits by the
   18         Department of Revenue; requiring the return and
   19         deposit of tax credits under certain circumstances;
   20         requiring the office to consult with Space Florida and
   21         adopt rules for tax credit applications and
   22         certifications; authorizing the department to adopt
   23         rules for tax administration, claims and transfers of
   24         tax credits, auditing, and reporting; requiring an
   25         annual report to the Governor and Legislature;
   26         amending s. 14.2015, F.S.; revising the duties of the
   27         office to include administration of the tax credits
   28         created by the act; amending s. 213.053, F.S.;
   29         providing for sharing of confidential information;
   30         amending s. 220.02, F.S.; revising legislative intent
   31         relating to the order for applying tax credits;
   32         amending s. 220.13, F.S.; specifying that net
   33         operating losses taken or transferred as corporate
   34         income tax credits may not also be deducted from
   35         income; amending s. 220.16, F.S.; adding the financial
   36         assistance obtained by the sale of tax credits
   37         pursuant to s. 220.194, F.S., to the category of
   38         nonbusiness income that must be reported; providing an
   39         effective date.
   41  Be It Enacted by the Legislature of the State of Florida:
   43         Section 1. Section 220.194, Florida Statutes, is created to
   44  read:
   45         220.194 Corporate income tax credits for commercial
   46  spaceflight projects in Florida’s commercial launch zone.—
   47         (1) INTENT.—The intent of this section is to create
   48  incentives to attract commercial launch, payload, and other
   49  commercial space business to this state.
   50         (2) DEFINITIONS.—As used in this section, the term:
   51         (a) “Commercial launch zone” means an area within spaceport
   52  territory, as defined in s. 331.303(18).
   53         (b) “Certified commercial spaceflight business” means a
   54  business that has been certified by the office; is registered
   55  with the Secretary of State to do business in this state; and is
   56  currently undertaking in this state, for nongovernmental
   57  purposes only, the following activities that will eventually
   58  result in a launch from a commercial launch zone: designing or
   59  manufacturing a launch vehicle, reentry vehicle, or components
   60  thereof; providing a launch service or reentry service; or
   61  providing the payload for a launch vehicle or reentry vehicle.
   62  The business may participate in more than one commercial
   63  spaceflight project at a time. For the purposes of applying for
   64  the tax incentives created in this section, a certified
   65  commercial spaceflight business also must have:
   66         1. Created, filled, and retained at least 35 net new jobs
   67  associated with an individual spaceflight project within the 3
   68  calendar years prior to claiming the credit;
   69         2. Invested a total of at least $15 million in an
   70  individual spaceflight project during the 3 calendar years prior
   71  to claiming the credit; and
   72         3. Participated in a commercial spaceflight project that
   73  resulted in a successful launch from a commercial launch zone
   74  within the previous 3 years.
   75         (c) “Commercial spaceflight project” means an activity
   76  performed by a certified commercial spaceflight business related
   77  to the launch or reentry of a launch vehicle or reentry vehicle
   78  for launches from a commercial launch zone. The term includes a
   79  launch service or reentry service, and any process that
   80  validates hardware or components to meet design and workmanship
   81  criteria for space launch vehicles per United States Department
   82  of Defense and National Aeronautics and Space Administration
   83  guidelines.
   84         (d) “Launch” means to place or attempt to place a launch
   85  vehicle or reentry vehicle and any payload from Earth into a
   86  suborbital trajectory, into Earth orbit in outer space, or
   87  otherwise into outer space.
   88         (e) “Launch service” means an activity related to the
   89  preparation of a launch vehicle and any payload for launch and
   90  the conduct of a launch.
   91         (f) “New job” means a full-time equivalent position that is
   92  created by a certified commercial spaceflight business on or
   93  after January 1, 2011, to work on a commercial spaceflight
   94  project; is not held by an owner, partner, or majority
   95  stockholder of the business; is not an administrative, clerical,
   96  or janitorial position; and is filled by an employee. The same
   97  job may not be counted more than once for the purposes of
   98  claiming incentives created by this section.
   99         (g) “Office” means the Governor’s Office of Tourism, Trade,
  100  and Economic Development.
  101         (h) “Outer space” means an altitude of at least 50 miles
  102  above the Earth’s surface.
  103         (i) “Payload” means an object that a certified commercial
  104  spaceflight business undertakes to place in outer space by means
  105  of a launch vehicle or reentry vehicle, including components of
  106  the vehicle specifically designed or adapted for the object.
  107         (j) “Reentry” means to return or attempt to return a
  108  reentry vehicle and any payload from Earth orbit, or from outer
  109  space, to Earth.
  110         (k) “Reentry service” means an activity related to the
  111  preparation of a reentry vehicle and any payload for reentry and
  112  conduct of the reentry.
  113         (l) “Spaceport territory” has the same meaning as defined
  114  in s. 331.303(18).
  115         (m) “Space vehicle” means any spacecraft, satellite, upper
  116  stage, or launch vehicle system.
  117         (n) “Successful launch” means a launch that successfully
  118  places a launch vehicle or reentry vehicle and any payload from
  119  Earth into a suborbital trajectory, into Earth orbit in outer
  120  space, or otherwise into outer space.
  121         (o) “Taxpayer” has the same meaning as defined in s.
  122  220.03.
  123         (3) TAX CREDITS.—For any tax year beginning on or after
  124  January 1, 2014, a certified commercial spaceflight business
  125  providing or conducting commercial spaceflight projects may
  126  select one of the following tax credits for which it is
  127  certified:
  128         (a) Nontransferable corporate income tax credit.—A credit
  129  equal to 50 percent of the net tax imposed by this chapter shall
  130  be granted to a certified commercial spaceflight business. Under
  131  no circumstances may the business claim this credit in any tax
  132  year that exceeds its corporate income tax liability that same
  133  tax year.
  134         (b) Transferable net operating loss tax credit.—The
  135  certified commercial spaceflight business may convert its net
  136  operating loss that has not otherwise been deducted from income
  137  for Florida tax purposes to a transferable tax credit as
  138  provided below.
  139         1. In addition to meeting the requirements in paragraph
  140  (2)(b), the business must:
  141         a. Have incurred net operating losses in any of the
  142  previous 3 calendar years; and
  143         b. Not be at least 50 percent owned or controlled, directly
  144  or indirectly, by another corporation that has demonstrated
  145  positive net income in any of the 3 previous years of ongoing
  146  operations, or not be part of a consolidated group of affiliated
  147  corporations, as filed for federal income tax purposes, which in
  148  the aggregate demonstrated positive net income in any of the 3
  149  previous years of ongoing operations.
  150         2. The amount of the transferable tax credit is equal to:
  151         a. One hundred percent of the net operating losses incurred
  152  by a certified commercial spaceflight business during its first
  153  full year of operations.
  154         b. One hundred percent of the net operating losses incurred
  155  by a certified commercial spaceflight business during its second
  156  full year of operations.
  157         c. One hundred percent of the net operating losses incurred
  158  by a certified commercial spaceflight business during its third
  159  full year of operations.
  160         3. A certified commercial spaceflight business allowed a
  161  tax credit under this paragraph may transfer all or part of a
  162  transferable tax credit to any taxpayer that is subject to the
  163  tax imposed by this chapter. The certified commercial
  164  spaceflight business has 5 years after the date of its original
  165  certification to transfer a net operating loss tax credit. The
  166  transfer must be by written agreement for consideration of no
  167  less than 75 percent of the credit’s face value. The transferee
  168  is entitled to apply the credit to the taxes owed under this
  169  chapter, and may carry forward an unused credit up to 5 years.
  170  Under no circumstances may the transferee claim a credit in any
  171  tax year that exceeds the corporate income taxes it owes that
  172  same tax year.
  173         4. The office may not approve a cumulative amount of
  174  transferrable net operating loss tax credits that may result in
  175  the claim of more than $50 million in tax credits during a
  176  single state fiscal year. However, the potential for a taxpayer
  177  to carry forward an unused tax credit may not be considered in
  178  calculating the annual limit.
  179         (c) Jobs tax credit.—A credit against the tax imposed by
  180  this chapter shall be granted to a certified commercial
  181  spaceflight business, in an amount equal to 10 percent of the
  182  annual wages subject to unemployment tax paid by the commercial
  183  spaceflight business to each employee in a new job, not to
  184  exceed $7,500 per employee. The credits may be applied up to the
  185  amount of taxes owed under this chapter for the tax year in
  186  which they are claimed. Unused credits may be carried forward
  187  for up to 5 years. The office may not approve a cumulative
  188  amount of jobs tax credits that may result in the claim of more
  189  than $15 million in tax credits in a single state fiscal year.
  190  However, the potential for a taxpayer to carry forward an unused
  191  tax credit may not be considered in calculating the annual
  192  limit.
  193         (d) Machinery and equipment credit.—A credit against the
  194  tax imposed by this chapter shall be granted to a certified
  195  commercial spaceflight business that invests a cumulative total
  196  of at least $500,000 in machinery and equipment that is used for
  197  a commercial spaceflight project. An investment in machinery and
  198  equipment may be claimed once. The amount of the credit is equal
  199  to 7.5 percent of the investment of machinery and equipment. The
  200  taxpayer may only claim a credit not exceeding 50 percent of the
  201  taxpayer’s tax liability in the year in which it is claimed. If
  202  credit granted under this paragraph is not fully used in any one
  203  tax year because of insufficient tax liability, the unused
  204  amount may be carried forward for up to 5 years.
  205         (4) ADMINISTRATION.—
  206         (a) Unless transferred as provided in paragraph (3)(b),
  207  credits awarded under this section may be granted only against
  208  the corporate income tax liability generated by or arising out
  209  of a commercial spaceflight project, as documented in the
  210  business’s annual audit prepared by a certified public
  211  accountant licensed to do business in this state and verified by
  212  the office.
  213         (b) Certified spaceflight businesses may not file
  214  consolidated returns for the purposes of claiming the tax
  215  incentives described in paragraphs (3)(a)-(d).
  216         (c) It is the responsibility of the certified commercial
  217  spaceflight business or transferee to demonstrate to the
  218  office’s and the department’s satisfaction that it is eligible
  219  for credit under this section.
  220         (5) APPLICATION AND CERTIFICATION.—To claim tax credits
  221  under this section, a commercial spaceflight business must
  222  submit a certification application to Space Florida for review.
  223  The application must include the following information, along
  224  with a $250 nonrefundable fee:
  225         (a) The name and physical Florida address of the taxpayer.
  226         (b) Documentation that the taxpayer is a commercial
  227  spaceflight business.
  228         (c) Documentation of the business’s current commercial
  229  spaceflight project and any other information it will need to
  230  qualify for the tax credits, where applicable.
  231         (d) The total amount and types of credits sought.
  232         (e) The amount of transferable tax credits to be
  233  transferred, if any; when the business expects to transfer them;
  234  and the name and address of the recipient taxpayer or taxpayers.
  235         (f) A copy of an audit or audits of the pertinent tax years
  236  prepared by a certified public accountant licensed to practice
  237  in this state, that specifies, if applicable, that portion of
  238  the business’s activities related to commercial spaceflight
  239  projects.
  240         (g) An acknowledgement that it must file an annual report
  241  on the project’s progress with Space Florida and the office.
  242         (h) Any other information necessary to demonstrate that the
  243  applicant meets the job creation, investment, and other
  244  requirements of this section.
  246  Within 60 days after receipt of the application, the executive
  247  staff of Space Florida shall evaluate the application and
  248  recommend it for certification or denial of certification by the
  249  office. The executive director of the office has 30 days
  250  following receipt of Space Florida’s recommendation to approve
  251  or deny the application. The office shall provide a letter of
  252  certification to the applicant, if approved. If the office
  253  denies any part of the application, it shall inform the
  254  applicant of the grounds for the denial. A copy of the
  255  certification shall be submitted to the department within 10
  256  days after the executive director’s decision.
  258  ELIGIBILITY FOR TAX CREDITS; RENEWAL.—Eligibility of a certified
  259  commercial spaceflight business for credits under this section
  260  shall expire 10 years after the executive director of the office
  261  certifies that the commercial spaceflight business is eligible
  262  for the credit program, or 10 years after the business’ last
  263  successful launch of its commercial spaceflight project,
  264  whichever occurs later. A certified commercial spaceflight
  265  business whose eligibility expires under this subsection may
  266  renew its eligibility for another 10 years, upon a successful
  267  launch that results from its commercial spaceflight project.
  269         (a) In addition to its existing audit and investigative
  270  authority, the department may perform any additional financial
  271  and technical audits and investigations, including examining the
  272  accounts, books, and financial records of the tax credit
  273  applicant, which are necessary to verify the eligible costs
  274  included in the tax credit return and to ensure compliance with
  275  this section. The office shall provide technical assistance when
  276  requested by the department on any technical audits or
  277  examinations performed under this subsection.
  278         (b) It is grounds for forfeiture of previously claimed and
  279  received tax credits if the department determines, as a result
  280  of an audit or examination, or from information received from
  281  the office, that a certified commercial spaceflight business, or
  282  in the case of transferred tax credits a taxpayer, received tax
  283  credits under this section to which the certified commercial
  284  spaceflight business or taxpayer was not entitled. The certified
  285  commercial spaceflight business or taxpayer is responsible for
  286  returning forfeited tax credits to the department, and any
  287  returned funds shall be deposited in the state’s General Revenue
  288  Fund.
  289         (c) The certified commercial spaceflight business must
  290  repay the credit amount claimed or transferred if its net
  291  operating loss is adjusted by amendment or as a result of any
  292  other recomputation or redetermination of federal or Florida
  293  taxable income or loss. The certified commercial spaceflight
  294  business also is liable for a penalty equal to the amount of the
  295  credit claimed or transferred, reduced in proportion to the
  296  amount of the net operating loss certified for transfer over the
  297  amount of the certified net operating loss disallowed. The
  298  applicant and its successors shall maintain all records
  299  necessary to support the reported net operating loss.
  300         (d) The office may revoke or modify any written decision
  301  granting eligibility for tax credits under this section if it is
  302  discovered that the certified commercial spaceflight business
  303  submitted any false statement, representation, or certification
  304  in any application, record, report, plan, or other document
  305  filed in an attempt to receive tax credits under this section.
  306  The office shall immediately notify the department of any
  307  revoked or modified orders affecting previously granted tax
  308  credits. Additionally, the certified commercial spaceflight
  309  business must notify the department of any change in its tax
  310  credit claimed.
  311         (e) The certified commercial spaceflight business shall
  312  file with the department an amended return or other report as
  313  the department prescribes by rule and shall pay any required tax
  314  and interest within 60 days after the certified commercial
  315  spaceflight business receives notification from the office that
  316  previously approved tax credits have been revoked or modified.
  317  If the revocation or modification order is contested, the
  318  certified commercial spaceflight business shall file an amended
  319  return or other report as provided in this paragraph within 60
  320  days after a final order is issued following proceedings.
  321         (f) The department may assess additional tax, penalty, and
  322  interest as permitted by s. 95.091.
  323         (8) RULES.—
  324         (a) The office, in consultation with Space Florida, shall
  325  adopt rules under ss. 120.536(1) and 120.54 to administer this
  326  section, including rules relating to the certification forms for
  327  commercial spaceflight businesses to complete, and the
  328  application and certification procedures, guidelines, and
  329  requirements necessary to administer this section.
  330         (b) The department may adopt rules under ss. 120.536(1) and
  331  120.54 to administer this section, including rules relating to:
  332         1. The forms required to claim a tax credit under this
  333  section, the requirements and basis for establishing an
  334  entitlement to a credit, and the examination and audit
  335  procedures required to administer this section.
  336         2. The implementation and administration of the provisions
  337  allowing a transfer of a net operating loss as a tax credit,
  338  including rules prescribing forms, reporting requirements, and
  339  specific procedures, guidelines, and requirements necessary to
  340  perform the transfer.
  341         3. The minimum portion of the credit that is available for
  342  transfer.
  343         (9) ANNUAL REPORT.—The office, in cooperation with Space
  344  Florida and the department, shall submit an annual report of the
  345  commercial launch zone incentive program’s activities to the
  346  Governor, the President of the Senate, and the Speaker of the
  347  House of Representatives by November 30 of each year, beginning
  348  in 2014.
  349         Section 2. Paragraph (f) of subsection (2) of section
  350  14.2015, Florida Statutes, is amended to read:
  351         14.2015 Office of Tourism, Trade, and Economic Development;
  352  creation; powers and duties.—
  353         (2) The purpose of the Office of Tourism, Trade, and
  354  Economic Development is to assist the Governor in working with
  355  the Legislature, state agencies, business leaders, and economic
  356  development professionals to formulate and implement coherent
  357  and consistent policies and strategies designed to provide
  358  economic opportunities for all Floridians. To accomplish such
  359  purposes, the Office of Tourism, Trade, and Economic Development
  360  shall:
  361         (f)1. Administer the Florida Enterprise Zone Act under ss.
  362  290.001-290.016, the community contribution tax credit program
  363  under ss. 220.183 and 624.5105, the tax refund program for
  364  qualified target industry businesses under s. 288.106, the tax
  365  refund program for qualified defense contractors and space
  366  flight business contractors under s. 288.1045, contracts for
  367  transportation projects under s. 288.063, the sports franchise
  368  facility program under s. 288.1162, the professional golf hall
  369  of fame facility program under s. 288.1168, the expedited
  370  permitting process under s. 403.973, the Rural Community
  371  Development Revolving Loan Fund under s. 288.065, the Regional
  372  Rural Development Grants Program under s. 288.018, the Certified
  373  Capital Company Act under s. 288.99, the Florida State Rural
  374  Development Council, the Rural Economic Development Initiative,
  375  the corporate income tax credits for commercial spaceflight
  376  projects under s. 220.194, and other programs that are
  377  specifically assigned to the office by law, by the
  378  appropriations process, or by the Governor. Notwithstanding any
  379  other provisions of law, the office may expend interest earned
  380  from the investment of program funds deposited in the Grants and
  381  Donations Trust Fund to contract for the administration of the
  382  programs, or portions of the programs, enumerated in this
  383  paragraph or assigned to the office by law, by the
  384  appropriations process, or by the Governor. Such expenditures
  385  shall be subject to review under chapter 216.
  386         2. The office may enter into contracts in connection with
  387  the fulfillment of its duties concerning the Florida First
  388  Business Bond Pool under chapter 159, tax incentives under
  389  chapters 212 and 220, tax incentives under the Certified Capital
  390  Company Act in chapter 288, foreign offices under chapter 288,
  391  the Enterprise Zone program under chapter 290, the Seaport
  392  Employment Training program under chapter 311, the Florida
  393  Professional Sports Team License Plates under chapter 320,
  394  Spaceport Florida under chapter 331, Expedited Permitting under
  395  chapter 403, and in carrying out other functions that are
  396  specifically assigned to the office by law, by the
  397  appropriations process, or by the Governor.
  398         Section 3. Paragraph (z) is added to subsection (8) of
  399  section 213.053, Florida Statutes, to read:
  400         213.053 Confidentiality and information sharing.—
  401         (8) Notwithstanding any other provision of this section,
  402  the department may provide:
  403         (z) Information relative to tax credits taken under s.
  404  220.194 to the Office of Tourism, Trade, and Economic
  405  Development or to Space Florida.
  407  Disclosure of information under this subsection shall be
  408  pursuant to a written agreement between the executive director
  409  and the agency. Such agencies, governmental or nongovernmental,
  410  shall be bound by the same requirements of confidentiality as
  411  the Department of Revenue. Breach of confidentiality is a
  412  misdemeanor of the first degree, punishable as provided by s.
  413  775.082 or s. 775.083.
  414         Section 4. Subsection (8) of section 220.02, Florida
  415  Statutes, is amended to read:
  416         220.02 Legislative intent.—
  417         (8) It is the intent of the Legislature that credits
  418  against either the corporate income tax or the franchise tax be
  419  applied in the following order: those enumerated in s. 631.828,
  420  those enumerated in s. 220.191, those enumerated in s. 220.181,
  421  those enumerated in s. 220.183, those enumerated in s. 220.182,
  422  those enumerated in s. 220.1895, those enumerated in s. 221.02,
  423  those enumerated in s. 220.184, those enumerated in s. 220.186,
  424  those enumerated in s. 220.1845, those enumerated in s. 220.19,
  425  those enumerated in s. 220.185, those enumerated in s. 220.187,
  426  those enumerated in s. 220.192, those enumerated in s. 220.193,
  427  and those enumerated in s. 288.9916, and those enumerated in s.
  428  220.194.
  429         Section 5. Paragraphs (a) and (b) of subsection (1) of
  430  section 220.13, Florida Statutes, are amended to read:
  431         220.13 “Adjusted federal income” defined.—
  432         (1) The term “adjusted federal income” means an amount
  433  equal to the taxpayer’s taxable income as defined in subsection
  434  (2), or such taxable income of more than one taxpayer as
  435  provided in s. 220.131, for the taxable year, adjusted as
  436  follows:
  437         (a) Additions.—There shall be added to such taxable income:
  438         1. The amount of any tax upon or measured by income,
  439  excluding taxes based on gross receipts or revenues, paid or
  440  accrued as a liability to the District of Columbia or any state
  441  of the United States which is deductible from gross income in
  442  the computation of taxable income for the taxable year.
  443         2. The amount of interest which is excluded from taxable
  444  income under s. 103(a) of the Internal Revenue Code or any other
  445  federal law, less the associated expenses disallowed in the
  446  computation of taxable income under s. 265 of the Internal
  447  Revenue Code or any other law, excluding 60 percent of any
  448  amounts included in alternative minimum taxable income, as
  449  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  450  taxpayer pays tax under s. 220.11(3).
  451         3. In the case of a regulated investment company or real
  452  estate investment trust, an amount equal to the excess of the
  453  net long-term capital gain for the taxable year over the amount
  454  of the capital gain dividends attributable to the taxable year.
  455         4. That portion of the wages or salaries paid or incurred
  456  for the taxable year which is equal to the amount of the credit
  457  allowable for the taxable year under s. 220.181. This
  458  subparagraph shall expire on the date specified in s. 290.016
  459  for the expiration of the Florida Enterprise Zone Act.
  460         5. That portion of the ad valorem school taxes paid or
  461  incurred for the taxable year which is equal to the amount of
  462  the credit allowable for the taxable year under s. 220.182. This
  463  subparagraph shall expire on the date specified in s. 290.016
  464  for the expiration of the Florida Enterprise Zone Act.
  465         6. The amount of emergency excise tax paid or accrued as a
  466  liability to this state under chapter 221 which tax is
  467  deductible from gross income in the computation of taxable
  468  income for the taxable year.
  469         7. That portion of assessments to fund a guaranty
  470  association incurred for the taxable year which is equal to the
  471  amount of the credit allowable for the taxable year.
  472         8. In the case of a nonprofit corporation which holds a
  473  pari-mutuel permit and which is exempt from federal income tax
  474  as a farmers’ cooperative, an amount equal to the excess of the
  475  gross income attributable to the pari-mutuel operations over the
  476  attributable expenses for the taxable year.
  477         9. The amount taken as a credit for the taxable year under
  478  s. 220.1895.
  479         10. Up to nine percent of the eligible basis of any
  480  designated project which is equal to the credit allowable for
  481  the taxable year under s. 220.185.
  482         11. The amount taken as a credit for the taxable year under
  483  s. 220.187.
  484         12. The amount taken as a credit for the taxable year under
  485  s. 220.192.
  486         13. The amount taken as a credit for the taxable year under
  487  s. 220.193.
  488         14. Any portion of a qualified investment, as defined in s.
  489  288.9913, which is claimed as a deduction by the taxpayer and
  490  taken as a credit against income tax pursuant to s. 288.9916.
  491         15. The amount taken as a credit for the taxable year under
  492  s. 220.194.
  493         (b) Subtractions.—
  494         1. There shall be subtracted from such taxable income:
  495         a. The net operating loss deduction allowable for federal
  496  income tax purposes under s. 172 of the Internal Revenue Code
  497  for the taxable year,
  498         b. The net capital loss allowable for federal income tax
  499  purposes under s. 1212 of the Internal Revenue Code for the
  500  taxable year, except that any net operating loss taken as a
  501  credit to corporate income taxes owed or that is transferred,
  502  pursuant to s. 220.194(3)(b), may not be deducted by the seller,
  503         c. The excess charitable contribution deduction allowable
  504  for federal income tax purposes under s. 170(d)(2) of the
  505  Internal Revenue Code for the taxable year, and
  506         d. The excess contributions deductions allowable for
  507  federal income tax purposes under s. 404 of the Internal Revenue
  508  Code for the taxable year.
  510  However, a net operating loss and a capital loss shall never be
  511  carried back as a deduction to a prior taxable year, but all
  512  deductions attributable to such losses shall be deemed net
  513  operating loss carryovers and capital loss carryovers,
  514  respectively, and treated in the same manner, to the same
  515  extent, and for the same time periods as are prescribed for such
  516  carryovers in ss. 172 and 1212, respectively, of the Internal
  517  Revenue Code.
  518         2. There shall be subtracted from such taxable income any
  519  amount to the extent included therein the following:
  520         a. Dividends treated as received from sources without the
  521  United States, as determined under s. 862 of the Internal
  522  Revenue Code.
  523         b. All amounts included in taxable income under s. 78 or s.
  524  951 of the Internal Revenue Code.
  526  However, as to any amount subtracted under this subparagraph,
  527  there shall be added to such taxable income all expenses
  528  deducted on the taxpayer’s return for the taxable year which are
  529  attributable, directly or indirectly, to such subtracted amount.
  530  Further, no amount shall be subtracted with respect to dividends
  531  paid or deemed paid by a Domestic International Sales
  532  Corporation.
  533         3. In computing “adjusted federal income” for taxable years
  534  beginning after December 31, 1976, there shall be allowed as a
  535  deduction the amount of wages and salaries paid or incurred
  536  within this state for the taxable year for which no deduction is
  537  allowed pursuant to s. 280C(a) of the Internal Revenue Code
  538  (relating to credit for employment of certain new employees).
  539         4. There shall be subtracted from such taxable income any
  540  amount of nonbusiness income included therein, including
  541  payments received for a tax credit pursuant to s. 220.194(3)(b).
  542         5. There shall be subtracted any amount of taxes of foreign
  543  countries allowable as credits for taxable years beginning on or
  544  after September 1, 1985, under s. 901 of the Internal Revenue
  545  Code to any corporation which derived less than 20 percent of
  546  its gross income or loss for its taxable year ended in 1984 from
  547  sources within the United States, as described in s.
  548  861(a)(2)(A) of the Internal Revenue Code, not including credits
  549  allowed under ss. 902 and 960 of the Internal Revenue Code,
  550  withholding taxes on dividends within the meaning of sub
  551  subparagraph 2.a., and withholding taxes on royalties, interest,
  552  technical service fees, and capital gains.
  553         6. Notwithstanding any other provision of this code, except
  554  with respect to amounts subtracted pursuant to subparagraphs 1.
  555  and 3., any increment of any apportionment factor which is
  556  directly related to an increment of gross receipts or income
  557  which is deducted, subtracted, or otherwise excluded in
  558  determining adjusted federal income shall be excluded from both
  559  the numerator and denominator of such apportionment factor.
  560  Further, all valuations made for apportionment factor purposes
  561  shall be made on a basis consistent with the taxpayer’s method
  562  of accounting for federal income tax purposes.
  563         Section 6. Subsection (5) is added to section 220.16,
  564  Florida Statutes, to read:
  565         220.16 Allocation of nonbusiness income.—Nonbusiness income
  566  shall be allocated as follows:
  567         (5) The amount of payments received in exchange for
  568  transferring a net operating loss as authorized by s. 220.194 is
  569  allocable to this state.
  570         Section 7. This act shall take effect January 1, 2011, and
  571  credits created herein may be claimed in the tax year beginning
  572  on or after January 1, 2014.

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