March 31, 2020
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_h0675__
HB 675

1
A bill to be entitled
2An act relating to taxation; creating ss. 199.0125,
3199.0235, 199.0325, 199.0335, 199.0425, 199.0525,
4199.0575, 199.0625, 199.1035, 199.10555, 199.1065,
5199.1755, and 199.1855, F.S.; recreating the annual
6intangible personal property tax; providing a short title;
7providing definitions; providing for imposition of the
8annual tax; specifying a separate tax rate for securities
9in a Florida's Future Investment Fund; specifying
10nonapplication; specifying due date of annual tax;
11providing for a discount for early payments; providing
12requirements and procedures for annual tax returns and
13payment of the annual tax; providing for corporate
14election to pay stockholders' annual tax; providing
15requirements for annual tax information reports; providing
16requirements for the basis of assessments and valuation of
17intangible personal property; providing for a contaminated
18site rehabilitation tax credit; providing requirements,
19procedures, and limitations; providing for a credit for
20taxes imposed by other states; specifying requirements for
21taxable situs of intangible personal property; exempting
22certain property from the annual and nonrecurring
23intangible taxes; amending ss. 28.35, 192.0105, 192.032,
24192.042, 192.091, 193.114, 196.015, 196.199, 199.133,
25199.183, 199.218, 199.232, 199.282, 199.292, 199.303,
26212.02, 213.053, 213.054, 213.27, 650.05, and 733.702,
27F.S., to conform provisions to the creation of the annual
28intangible personal property tax; providing for
29application of certain collection, administration, and
30enforcement provisions to taxation of certain leaseholds;
31authorizing the Department of Revenue to adopt emergency
32implementing rules for a certain time; providing
33legislative findings and intent; amending s. 220.03, F.S.;
34revising a definition; defining the terms "tax haven" and
35"water's edge group"; amending s. 220.13, F.S.; conforming
36a cross-reference; redefining the term "adjusted federal
37income" to limit the subtraction of certain deductions and
38certain carryovers; requiring the subtraction of certain
39dividends from taxable income; creating s. 220.136, F.S.;
40providing rules and criteria to determine if a corporation
41is a member of a water's edge group; creating s. 220.1363,
42F.S.; providing a reporting method for a water's edge
43group; providing for the apportionment of income to the
44state; requiring a member of a water's edge group having
45nexus with this state to file a single return for the
46water's edge group; providing for the determination of
47income for a member of a water's edge group having a
48different tax year than the water's edge group; requiring
49a water's edge group return to include a computational
50schedule; requiring a water's edge group to file a
51domestic disclosure spreadsheet along with its return;
52authorizing the Department of Revenue to adopt rules;
53amending s. 220.14, F.S.; providing for the proration of
54an exemption during a leap year; limiting a water's edge
55group to a single claim of a specified exemption; amending
56s. 220.15, F.S.; deleting provisions relating to
57affiliated groups with respect to certain sales of a
58financial institution; amending s. 220.183, F.S.; deleting
59provisions relating to affiliated groups with respect to
60community contribution tax credits; amending s. 220.1845,
61F.S.; deleting provisions relating to affiliated groups
62with respect to the contaminated site rehabilitation tax
63credit; amending s. 220.187, F.S.; deleting provisions
64relating to affiliated groups with respect to the tax
65credit for contributions to nonprofit scholarship funding
66organizations; amending s. 220.191, F.S.; deleting
67provisions relating to affiliated groups with respect to
68the capital investment tax credit; amending s. 220.192,
69F.S.; deleting provisions relating to affiliated groups
70with respect to the renewable energy technologies
71investment tax credit; amending s. 220.193, F.S.; deleting
72provisions relating to affiliated groups with respect to
73the Florida renewable energy production tax credit;
74amending s. 220.51, F.S.; deleting provisions relating to
75the rulemaking authority of the Department of Revenue with
76respect to consolidated reporting for affiliated groups;
77amending ss. 220.1845, 220.64, and 376.30781, F.S.;
78conforming cross-references and conforming provisions to
79the creation of the annual intangible personal property
80tax; providing transitional rules for corporate income tax
81returns filed by water's edge groups and affiliated groups
82of corporations; specifying the allocation of funds that
83are recaptured under the act; repealing s. 220.131, F.S.,
84relating to adjusted federal income for affiliated groups;
85requiring deposit of certain funds into the Educational
86Enhancement Trust Fund; specifying certain allocations of
87appropriations from the fund; providing legislative intent
88relating to uses of funds; providing authority for certain
89entities as to how best to use certain funds; providing
90effective dates.
91
92Be It Enacted by the Legislature of the State of Florida:
93
94     Section 1.  Effective January 1, 2011, sections 199.0125,
95199.0235, 199.0325, 199.0335, 199.0425, 199.0525, 199.0575,
96199.0625, 199.1035, 199.10555, 199.1065, 199.1755, and 199.1855,
97Florida Statutes, are created to read:
98     199.0125  Short title.-Sections 199.0125-199.1855 may be
99cited as the "Millionaire's Tax Act."
100     199.0235  Definitions.-As used in this chapter:
101     (1)  "Abroad" means in one or more foreign nations; in the
102colonies, dependencies, possessions, or territories of a foreign
103nation or of the United States; or in the Commonwealth of Puerto
104Rico.
105     (2)(a)  "Affiliated group" means one or more chains of
106corporations or limited liability companies connected through
107stock ownership or membership interest in a limited liability
108company with a common parent corporation or limited liability
109company, for which:
110     1.  Stock or membership interest in a limited liability
111company possessing at least 80 percent of the voting power of
112all classes of stock or membership interest in a limited
113liability company and at least 80 percent of each class of the
114nonvoting stock or membership interest in a limited liability
115company of each corporation or limited liability company, except
116for the common parent corporation or limited liability company,
117is owned directly by one or more of the other corporations or
118limited liability companies.
119     2.  The common parent corporation or limited liability
120company directly owns stock or membership interest in a limited
121liability company possessing at least 80 percent of the voting
122power of all classes of stock or membership interest in a
123limited liability company and at least 80 percent of each class
124of the nonvoting stock or membership interest in a limited
125liability company of at least one of the other corporations or
126limited liability companies.
127     (b)  As used in this subsection, the terms "nonvoting
128stock" and "membership interest in a limited liability company"
129do not include nonvoting stock or membership interest in a
130limited liability company which is limited and preferred as to
131dividends. For purposes of this chapter, a common parent may be
132a corporation or a limited liability company.
133     (3)  "Banking organization" means:
134     (a)  A bank organized and existing under the laws of this
135state;
136     (b)  A national bank organized and existing pursuant to the
137provisions of the National Bank Act, 12 U.S.C. ss. 21 et seq.,
138and maintaining its principal office in this state;
139     (c)  An Edge Act corporation organized pursuant to the
140provisions of s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss.
141611 et seq., and maintaining an office in this state;
142     (d)  An international bank agency licensed pursuant to the
143laws of this state;
144     (e)  A federal agency licensed pursuant to ss. 4 and 5 of
145the International Banking Act of 1978 to maintain an office in
146this state;
147     (f)  A savings association organized and existing under the
148laws of this state;
149     (g)  A federal association organized and existing pursuant
150to the provisions of the Home Owners' Loan Act of 1933, 12
151U.S.C. ss. 1461 et seq., and maintaining its principal office in
152this state; or
153     (h)  An export finance corporation organized in this state
154and existing pursuant to the provisions of part V of chapter
155288.
156     (4)  A resident has a "beneficial interest" in a trust if
157the resident has a vested interest, even if subject to
158divestment, which includes at least a current right to income
159and either a power to revoke the trust or a general power of
160appointment, as defined in 26 U.S.C. s. 2041(b)(1).
161     (5)  "Department" means the Department of Revenue.
162     (6)  "Intangible personal property" means all personal
163property that is not in itself intrinsically valuable, but that
164derives its chief value from that which it represents,
165including, but not limited to:
166     (a)  All stocks or shares of incorporated or unincorporated
167companies, business trusts, and mutual funds.
168     (b)  All notes, bonds, and other obligations for the
169payment of money.
170     (c)  All condominium and cooperative apartment leases of
171recreation facilities, land leases, and leases of other commonly
172used facilities.
173     (d)  Except for any leasehold or other possessory interest
174described in s. 4(a), Art. VII of the State Constitution or s.
175196.199(7), all leasehold or other possessory interests in real
176property owned by the United States, the state, any political
177subdivision of the state, any municipality of the state, or any
178agency, authority, or other public body corporate of the state,
179which are undeveloped or predominantly used for residential or
180commercial purposes and upon which rental payments are due.
181     (7)  "International banking facility" means a set of asset
182and liability accounts segregated on the books and records of a
183banking organization that includes only international banking
184facility deposits, borrowings, and extensions of credit as those
185terms are defined pursuant to s. 655.071(2).
186     (8)  "International banking transaction" means:
187     (a)  The financing of the exportation from, or the
188importation into, the United States or between jurisdictions
189abroad of tangible personal property or services;
190     (b)  The financing of the production, preparation, storage,
191or transportation of tangible personal property or services
192which are identifiable as being directly and solely for export
193from, or import into, the United States or between jurisdictions
194abroad;
195     (c)  The financing of contracts, projects, or activities to
196be performed substantially abroad, except those transactions
197secured by a mortgage, deed of trust, or other lien upon real
198property located in this state;
199     (d)  The receipt of deposits or borrowings or the
200extensions of credit by an international banking facility,
201except the loan or deposit of funds secured by mortgage, deed of
202trust, or other lien upon real property located in this state;
203or
204     (e)  Entering into foreign exchange trading or hedging
205transactions in connection with the activities described in
206paragraph (d).
207     (9)  "Ministerial function" means an act the performance of
208which does not involve the use of discretion or judgment.
209     (10)  "Money" includes, without limitation, United States
210legal tender, certificates of deposit, cashier's and certified
211checks, bills of exchange, drafts, the cash equivalent of
212annuities and life insurance policies, and similar instruments,
213which are held by a taxpayer, or deposited with or held by a
214banking organization or any other person.
215     (11)  "Person" means any individual, firm, partnership,
216joint adventure, syndicate, or other group or combination acting
217as a unit, association, corporation, estate, trust, business
218trust, trustee, personal representative, receiver, or other
219fiduciary and includes the plural as well as the singular.
220     (12)  "Processing activity" means an activity undertaken to
221administer or service intangible personal property in accordance
222with such terms, guidelines, criteria, or directions as are
223provided solely by the owner of the property. Methods, systems,
224or techniques chosen by the processor to implement such terms,
225guidelines, criteria, or directions are not considered the
226exercise of management or control.
227     (13)  "Taxpayer" means any person liable for taxes imposed
228under this chapter and any heir, successor, assignee, and
229transferee of any such person.
230     199.0325  Levy of annual tax.-An annual tax of 2 mills is
231imposed on each dollar of the just valuation of all intangible
232personal property that has a taxable situs in this state, except
233for notes and other obligations for the payment of money, other
234than bonds, that are secured by a mortgage, deed of trust, or
235other lien upon real property situated in this state. This tax
236shall be assessed and collected as provided in this chapter.
237     199.0335  Securities in a Florida's Future Investment Fund;
238tax rate.-
239     (1)  Notwithstanding the provisions of this chapter, the
240tax imposed under s. 199.0325 on securities in a Florida's
241Future Investment Fund applies at a rate of 0.85 mill when the
242average daily balance in such funds exceeds $2 billion and at a
243rate of 0.70 mill when the average daily balance in such funds
244exceeds $5 billion.
245     (2)  This section shall not apply in any year in which the
246revenues of the foundation in the previous calendar year are
247less than the tax savings allowed by this section. The term "tax
248savings" means the difference between the tax that would be
249imposed pursuant to s. 199.0325 and the tax rate specified in
250subsection (1).
251     199.0425  Due date of annual tax.-
252     (1)  The annual tax on intangible personal property shall
253be due and payable on June 30 of each year. Payment of the tax
254shall be made to the department upon filing of the return
255required by s. 199.0525. A return mailed to the department shall
256be considered timely filed if the return bears a postmark no
257later than the due date.
258     (2)  A discount for early payment of the annual tax shall
259be allowed as follows: for payment on or before the last day of
260February, 4 percent; for payment on or before March 31, 3
261percent; for payment on or before April 30, 2 percent; and for
262payment after April 30 but on or before May 31, 1 percent.
263     199.0525  Annual tax returns; payment of annual tax.-
264     (1)  An annual intangible tax return must be filed with the
265department by each corporation authorized to do business in this
266state or doing business in this state and by each person,
267regardless of domicile, who on January 1 owns, controls, or
268manages intangible personal property which has a taxable situs
269in this state. For purposes of this chapter, the terms "control"
270or "manage" do not include any ministerial function or any
271processing activity. The return shall be due on June 30 of each
272year. It shall list separately the character, description, and
273just valuation of all such property.
274     (2)  A person, corporation, agent, or fiduciary is not
275required to pay the annual tax in any year when the aggregate
276annual tax upon the intangible personal property, after
277exemptions but before application of any discount for early
278filing, would be less than $60. In such case, an annual return
279is not required. Agents and fiduciaries shall report for each
280person for whom they hold intangible personal property if the
281aggregate annual tax on such person is $60 or more.
282     (3)  A corporation having no intangible tax liability, and
283required to file an annual report pursuant to s. 607.1622, is
284not required to file the annual intangible tax return required
285by this section.
286     (4)  A husband and wife may file a joint return with regard
287to all intangible personal property held jointly or individually
288by them. They shall then be jointly liable for the payment of
289the annual tax.
290     (5)  A trustee of a trust is not responsible for filing
291returns for the trust's intangible personal property and is not
292required to pay any annual tax on such property, although the
293department may require the trustee to file an informational
294return.
295     (6)  Each resident of this state with a beneficial interest
296as defined in s. 199.0235(4) in a trust is responsible for
297filing an annual return for the resident's equitable share of
298the trust's intangible personal property and paying the annual
299tax on such property. The trustee of a trust may file an annual
300return and pay the tax on the equitable shares of all residents
301of this state having beneficial interests, in which case the
302residents need not file an annual return for such property or
303pay such tax.
304     (7)  The personal representative or curator of an estate in
305this state is primarily responsible for filing an annual return
306for the estate's intangible personal property and paying the
307annual tax on it. The heirs or devisees, however, may
308individually file an annual return for their equitable shares of
309the estate's intangible personal property and pay the tax on
310such shares, in which case the personal representative or
311curator need not file an annual return such property or pay such
312tax, although the department may require the personal
313representative or curator to file an informational return.
314     (8)  The guardian of the property of an incompetent
315resident of this state shall file an annual return for the
316incompetent's intangible personal property and pay the annual
317tax on such property. The custodian of a minor resident of this
318state under a gifts-to-minors or similar act shall file an
319annual return for the minor's intangible personal property which
320is subject to the custodianship and pay the annual tax on such
321property.
322     (9)  If an agent other than a trustee has control or
323management of intangible personal property, the principal is
324primarily responsible for filing an annual return for such
325property and paying the annual tax on such property, but the
326agent shall file an annual return for property on behalf of the
327principal and pay the annual tax on such property if the
328principal fails to do so. The department may in any case require
329the agent to file an informational return.
330     (10)  An affiliated group may elect to file a consolidated
331return for any year. The election shall be made by timely filing
332a consolidated return. Once made, an election may not be revoked
333and is binding for the tax year. The mere filing of a
334consolidated return does not in itself provide a business situs
335in this state for intangible personal property held by a
336corporation. The fact that members of an affiliated group own
337stock in corporations or membership interest in limited
338liability companies that do not qualify under the stock
339ownership or membership interest in a limited liability company
340requirements as members of an affiliated group shall not
341preclude the filing of a consolidated return on behalf of the
342qualified members. If a consolidated return is filed,
343intercompany accounts, including the capital stock or membership
344interest in a limited liability company of an includable
345corporation or limited liability company, other than the parent,
346owned by another includable corporation or limited liability
347company, are not subject to the annual tax. However, capital
348stock, or membership interest in a limited liability company,
349and other intercompany accounts of a nonqualified member of the
350affiliated group are subject to the annual tax. Each
351consolidated return must be accompanied by documentation
352identifying all intercompany accounts and containing such other
353information as the department may require. Failure to timely
354file a consolidated return shall not prejudice the taxpayer's
355right to file a consolidated return, provided the failure to
356file a consolidated return is limited to 1 year and the
357taxpayer's intent to file a consolidated return is evidenced by
358the taxpayer having filed a consolidated return for the 3 years
359prior to the year the return was not timely filed.
360     (11)  An annual return for securities held in margin
361accounts by a security broker not acting as a fiduciary shall be
362filed, and the annual tax on such securities shall be paid, by
363the customer owning them. The security broker is not required to
364file an annual return or pay the tax on such securities.
365     (12)  Except as otherwise provided in this section, the
366owner of intangible personal property is liable for the payment
367of annual tax on such property, and any other person required to
368file an annual return for such property is liable for the tax if
369the owner fails to pay the tax.
370     (13)  If a bank or savings association, as defined in s.
371220.62, acts as a fiduciary or agent of a trust other than as a
372trustee, the bank or savings association is not responsible for
373filing an annual return for the trust's intangible personal
374property and is not required to pay any annual tax on such
375property, and the management or control of the bank or savings
376association shall not be used as the basis for imposing any
377annual tax on any person or any assets of the trust. If a person
378acts as a fiduciary or agent for purposes of managing intangible
379assets owned by another person, such intangible assets shall not
380have a taxable situs in this state pursuant to s. 199.1755
381solely by virtue of the management or control of such assets by
382the person who is not the owner of the assets.
383     (14)(a)  Except as provided in paragraph (b), each bank and
384financial organization filing annual intangible tax returns for
385its customers shall file return information for taxes due
386January 1, 2011, and thereafter using machine-sensible media.
387The information required by this subsection must be reported by
388banks or financial organizations on machine-sensible media,
389using specifications and instructions of the department. A bank
390or financial organization that demonstrates to the satisfaction
391of the department that a hardship exists is not required to file
392intangible tax returns for its customers using machine-sensible
393media. The department shall adopt rules necessary to administer
394this paragraph.
395     (b)  A taxpayer may choose to file an annual intangible
396personal property tax return in a form initiated through an
397electronic data interchange using an advanced encrypted
398transmission by means of the Internet or other suitable
399transmission. The department shall prescribe by rule the format
400and instructions necessary for such filing to ensure a full
401collection of taxes due. The acceptable method of transfer, the
402method, form, and content of the electronic data interchange,
403and the means, if any, by which the taxpayer will be provided
404with an acknowledgment shall be prescribed by the department.
405     199.0575  Corporate election to pay stockholders' annual
406tax.-
407     (1)  Each corporation incorporated or qualified to do
408business in this state may elect each tax year to pay the annual
409tax on any class of its stock, as agent for its stockholders in
410this state holding such stock.
411     (2)  To make the election, the corporation shall:
412     (a)  File written notice with the department on or before
413June 30 of the year for which the election is made.
414     (b)  File an annual return with respect to such stock and
415its own intangible personal property.
416     (c)  Furnish its stockholders in this state with written
417notice, on or before April 1 of the year for which the election
418is made, that the election is being made, including a
419description of the class or classes of stock which are affected.
420A corporation making the election under this subsection shall
421certify on its notice to the department that its stockholders
422were timely notified of the election.
423     (3)  An election is not valid unless timely notice of the
424election is given to the department under paragraph (2)(a). Once
425made, an election may not be amended or revoked and is binding
426for the tax year.
427     199.0625  Annual tax information reports.-
428     (1)(a)  On or before June 30 of each year, each security
429dealer and investment adviser registered under the laws of this
430state shall file with the department a position statement as of
431December 31 of the preceding year for each customer whose
432mailing address is in this state or a statement that the
433security dealer or investment adviser does not hold securities
434on account for any customer whose mailing address is in this
435state. The position statement shall include the customer's name,
436address, social security number, or federal identification
437number; the number of units, value, and description, including
438the Committee on Uniform Security Identification Procedures
439(CUSIP) number, if any, of all securities held by the dealer or
440adviser for the customer; and such other information as the
441department may reasonably require. The dealer or adviser shall
442report the information required by this paragraph on magnetic
443media, using specifications and instructions of the department,
444unless the dealer or adviser demonstrates that an undue hardship
445exists.
446     (b)1.  The department may require security dealers and
447investment advisers registered in this state to transmit once
448every 2 years a copy of the department's intangible tax brochure
449to each customer of the dealer or advisor whose mailing address
450is in this state.
451     2.  The department may require property appraisers to send,
452at such times and in such manner as the department and the
453property appraisers jointly determine, a copy of the
454department's intangible tax brochure to each owner of property
455in this state.
456     (2)  Each fiduciary shall serve the department with a copy
457of each inventory required to be prepared or filed in the
458circuit court under general law or rules adopted by the Supreme
459Court relating to decedent's estates, trusts, or guardianships.
460Any such inventory required to be filed in the circuit court may
461not be approved by the court until such copy as required by this
462subsection has been filed with the department. When an inventory
463is not required to be filed in the circuit court, the personal
464representative of a decedent's estate shall serve the department
465with a copy of one inventory as provided in s. 733.604, and each
466other fiduciary shall file a return relating to such information
467as shall be prescribed by rule of the department.
468     199.1035  Basis of assessment; valuation.-All intangible
469personal property shall be subject to the annual tax at its just
470valuation as of January 1 of each year. Such property shall be
471valued in the following manner:
472     (1)  Shares of stock of corporations, or any interest of a
473limited partner in any limited partnership, regularly listed on
474any public stock exchange or regularly traded over-the-counter
475shall be valued at their closing prices on the last business day
476of the previous calendar year.
477     (2)  Shares or units of companies or trusts registered
478under the Investment Company Act of 1940, as amended, including
479mutual funds, money market funds, and unit investment trusts
480where such shares or units are not exempt under s. 199.1855,
481shall be valued at the net asset value of such shares or units
482on the last business day of the previous calendar year.
483     (3)  Bonds regularly listed on any public stock exchange or
484regularly traded over-the-counter shall be valued at their
485closing bid prices on the last business day of the previous
486calendar year.
487     (4)  Shares of stocks, bonds, or similar instruments of
488corporations not listed on any public stock exchange or not
489regularly traded over-the-counter shall be valued as of January
4901 of each year on the basis of those factors customarily
491considered in determining fair market value.
492     (5)  Accounts receivable shall be valued at their face
493value as of January 1 of each year, less a reasonable allowance
494for uncollectible accounts.
495     (6)  All notes and other obligations shall have a value
496equal to their unpaid balance as of January 1 of each year,
497unless the taxpayer can establish a lesser value upon proof
498satisfactory to the department.
499     (7)  All other forms of intangible personal property shall
500be valued on the basis of factors customarily considered in
501determining fair market value.
502     (8)  Stocks or shares of a savings association or middle
503tier stock holding company, held by a parent mutual holding
504company, the depositors of which are members of the mutual
505holding company, which converted from a mutual savings
506association to a mutual holding company pursuant to 12 U.S.C. s.
5071467a.(o), shall be valued as of January 1 each year on the same
508basis as ownership in the mutual savings association was valued
509for intangible tax purposes prior to the conversion. Stocks or
510shares of such a converted association which are held by
511individuals or entities other than the parent mutual holding
512company shall be valued pursuant to subsection (1) or subsection
513(4).
514     199.10555  Contaminated site rehabilitation tax credit.-
515     (1)  AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.-
516     (a)  A credit equal to 35 percent of the costs of voluntary
517cleanup activity that is integral to site rehabilitation at the
518following sites is available against any tax due for a taxable
519year under s. 199.0325, less any credit allowed by former s.
520220.68 for that year:
521     1.  A drycleaning-solvent-contaminated site eligible for
522state-funded site rehabilitation under s. 376.3078;
523     2.  A drycleaning-solvent-contaminated site at which
524voluntary cleanup is undertaken by the real property owner
525pursuant to s. 376.3078, if the real property owner is not also,
526and has never been, the owner or operator of the drycleaning
527facility where the contamination exists; or
528     3.  A brownfield site in a designated brownfield area under
529s. 376.80.
530     (b)  A tax credit applicant, or multiple tax credit
531applicants working jointly to clean up a single site, may not be
532granted more than $250,000 per year in tax credits for each site
533voluntarily rehabilitated. Multiple tax credit applicants shall
534be granted tax credits in the same proportion as their
535contribution to payment of cleanup costs. Subject to the same
536conditions and limitations as provided in this section, a
537municipality, county, or other tax credit applicant which
538voluntarily rehabilitates a site may receive not more than
539$250,000 per year in tax credits which it can subsequently
540transfer subject to the provisions in paragraph (g).
541     (c)  If the credit granted under this section is not fully
542used in any one year because of insufficient tax liability on
543the part of the tax credit applicant, the unused amount may be
544carried forward for a period not to exceed 5 years. Five years
545after the date a credit is granted under this section, such
546credit expires and may not be used. However, if during the 5-
547year period the credit is transferred, in whole or in part,
548pursuant to paragraph (g), each transferee has 5 years after the
549date of transfer to use the transferred credit.
550     (d)  A taxpayer that receives a credit under s. 220.1845 is
551ineligible to receive credit under this section in a given tax
552year.
553     (e)  A tax credit applicant that receives state-funded site
554rehabilitation pursuant to s. 376.3078 for rehabilitation of a
555drycleaning-solvent-contaminated site is ineligible to receive
556credit under this section for costs incurred by the tax credit
557applicant in conjunction with the rehabilitation of that site
558during the same time period that state-administered site
559rehabilitation was underway.
560     (f)  The total amount of the tax credits which may be
561granted under this section and s. 220.1845 is $2 million
562annually.
563     (g)1.  Tax credits that may be available under this section
564to an entity eligible under s. 376.30781 may be transferred
565after a merger or acquisition to the surviving or acquiring
566entity and used in the same manner with the same limitations.
567     2.  The entity, or its surviving or acquiring entity as
568described in subparagraph 1., may transfer any unused credit in
569whole or in units of no less than 25 percent of the remaining
570credit. The entity acquiring such credit may use it in the same
571manner and with the same limitation as described in this
572section. Such transferred credits may not be transferred again,
573although such credits may succeed to a surviving or acquiring
574entity subject to the same conditions and limitations as
575described in this section.
576     3.  If the credit provided for under this section is
577reduced as a result of a determination by the Department of
578Environmental Protection or an examination or audit by the
579Department of Revenue, such tax deficiency shall be recovered
580from the first entity, or the surviving or acquiring entity, to
581have claimed such credit up to the amount of credit taken. Any
582subsequent deficiencies shall be assessed against any entity
583acquiring and claiming such credit or, in the case of multiple
584succeeding entities, in the order of credit succession.
585     (h)  In order to encourage completion of site
586rehabilitation at contaminated sites being voluntarily cleaned
587up and eligible for a tax credit under this section, the tax
588credit applicant may claim an additional 10 percent of the total
589cleanup costs, not to exceed $50,000, in the final year of
590cleanup as evidenced by the Department of Environmental
591Protection issuing a "No Further Action" order for that site.
592     (2)  FILING REQUIREMENTS.-Any taxpayer that wishes to
593obtain credit under this section must submit with the taxpayer's
594return a tax credit certificate approving partial tax credits
595issued by the Department of Environmental Protection under s.
596376.30781.
597     (3)  ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT
598FORFEITURE.-
599     (a)  The Department of Revenue may adopt rules to prescribe
600any necessary forms required to claim a tax credit under this
601section and to provide the administrative guidelines and
602procedures required to administer this section.
603     (b)  In addition to its existing audit and investigation
604authority relating to chapters 199 and 220, the Department of
605Revenue may perform any additional financial and technical
606audits and investigations, including examining the accounts,
607books, or records of the tax credit applicant, which are
608necessary to verify the site rehabilitation costs included in a
609tax credit return and to ensure compliance with this section.
610The Department of Environmental Protection shall provide
611technical assistance, when requested by the Department of
612Revenue, on any technical audits performed under this section.
613     (c)  It is grounds for forfeiture of previously claimed and
614received tax credits if the Department of Revenue determines, as
615a result of either an audit or information received from the
616Department of Environmental Protection, that a taxpayer received
617tax credits under this section to which the taxpayer was not
618entitled. In the case of fraud, the taxpayer shall be prohibited
619from claiming any future tax credits under this section or s.
620220.1845.
621     1.  The taxpayer is responsible for returning forfeited tax
622credits to the Department of Revenue, and such funds shall be
623paid into the General Revenue Fund of the state.
624     2.  The taxpayer shall file with the Department of Revenue
625an amended tax return or such other report as the Department of
626Revenue prescribes by rule and shall pay any required tax within
62760 days after the taxpayer receives notification from the
628Department of Environmental Protection pursuant to s. 376.30781
629that previously approved tax credits have been revoked or
630modified, if uncontested, or within 60 days after a final order
631is issued following proceedings involving a contested revocation
632or modification order.
633     3.  A notice of deficiency may be issued by the Department
634of Revenue at any time within 5 years after the date the
635taxpayer receives notification from the Department of
636Environmental Protection pursuant to s. 376.30781 that
637previously approved tax credits have been revoked or modified.
638If a taxpayer fails to notify the Department of Revenue of any
639change in its tax credit claimed, a notice of deficiency may be
640issued at any time. In either case, the amount of any proposed
641assessment set forth in such notice of deficiency shall be
642limited to the amount of any deficiency resulting under this
643section from the recomputation of the taxpayer's tax for the
644taxable year.
645     4.  Any taxpayer that fails to report and timely pay any
646tax due as a result of the forfeiture of its tax credit is in
647violation of this section and is subject to applicable penalty
648and interest.
649     199.1065  Credit for taxes imposed by other states.-
650     (1)  For intangible personal property that has been deemed
651to have a taxable situs in this state solely pursuant to s.
652199.1755(2) or any similar predecessor statute, a credit against
653the tax imposed by s. 199.0325 is allowed to a taxpayer in an
654amount equal to a like tax lawfully imposed and paid by that
655taxpayer on the same property in another state, territory of the
656United States, or the District of Columbia. For purposes of this
657subsection, the term "like tax" means an ad valorem tax on
658intangible personal property that is also subject to tax under
659s. 199.0325. The credit may not exceed the tax imposed on the
660property under s. 199.0325. Proof of entitlement to such a
661credit must be made pursuant to rules and forms adopted by the
662department.
663     (2)  For intangible personal property that has a taxable
664situs in this state under s. 199.1755(1) or any similar
665predecessor statute, a credit against the tax imposed by s.
666199.0325 is allowed to a taxpayer in an amount equal to a like
667tax lawfully imposed and paid by that taxpayer on the same
668property in another state, territory of the United States, or
669the District of Columbia when the other taxing authority is also
670claiming situs under provisions similar or identical to those in
671s. 199.1755(1) or any similar predecessor statute. For purposes
672of this subsection, the term "like tax" means an ad valorem tax
673on intangible personal property which is also subject to tax
674under s. 199.0325. The credit may not exceed the tax imposed on
675the property under s. 199.0325. Proof of entitlement to such a
676credit must be made pursuant to rules and forms adopted by the
677department.
678     (3)  The credits provided by this section apply
679retroactively. However, notwithstanding the retroactivity of
680these credit provisions, this section does not reopen a closed
681period of nonclaim under s. 215.26 or any other statute or
682extend the period of nonclaim under s. 215.26 or any other
683statute.
684     199.1755  Taxable situs.-For purposes of the annual tax
685imposed under this chapter:
686     (1)  Intangible personal property has a taxable situs in
687this state when it is owned, managed, or controlled by any
688person domiciled in this state on January 1 of the tax year.
689Such intangibles shall be subject to annual taxation under this
690chapter, unless the person who owns, manages, or controls them
691is specifically exempt or unless the property is specifically
692exempt. This provision applies regardless of where the evidence
693of the intangible property is kept; where the intangible is
694created, approved, or paid; or where business may be conducted
695from which the intangible arises. The fact that a corporation in
696this state owns the stock of an out-of-state corporation and
697manages and controls such corporation from a location in this
698state shall not operate to give a taxable situs in this state to
699the intangibles owned by the out-of-state corporation, which
700intangibles arise out of business transacted outside this state.
701     (a)  For the purposes of this chapter, the term "any person
702domiciled in this state" means:
703     1.  Any natural person who is a legal resident of this
704state;
705     2.  Any business, business trust as described in chapter
706609, company, corporation, partnership, or other artificial
707entity organized or created under the law of this state, except
708a trust; or
709     3.  Any person, including a business trust, that has
710established a commercial domicile in this state.
711     (b)  A business or other artificial entity acquires its
712commercial domicile in this state when it maintains its chief or
713principal office in this state where executive or management
714functions are performed or where the course of business
715operations is determined.
716     (c)  Notwithstanding the provisions of this subsection,
717intangibles that are credit card receivables or charge card
718receivables or related lines of credit or loans that would
719otherwise be deemed to have taxable situs in this state solely
720because they are owned, managed, or controlled by a bank or
721savings association as defined in s. 220.62, or an affiliate or
722subsidiary thereof, which is domiciled in this state shall be
723treated as having a taxable situs in this state only when the
724debt represented by the intangible is owed by a customer who is
725domiciled in this state. As used in this paragraph, the terms
726"credit card receivables" and "charge card receivables" do not
727include trade or service receivables as defined in s. 864 of the
728Internal Revenue Code of 1986, as amended.
729     (2)  Intangible personal property has a taxable situs in
730this state when it is deemed to have a business situs in this
731state and it is owned, managed, or controlled by a person
732transacting business in this state, even though the owner may
733claim a domicile elsewhere. This provision applies regardless of
734where the evidence of the intangible is kept or where the
735intangible is created, approved, or paid.
736     (a)  Intangibles shall be deemed to have a business situs
737in this state when the intangibles receive the benefit and
738protection of the laws and courts of this state and are derived
739from, arise out of, or are issued in connection with the
740business transacted in this state with a customer in this state.
741For purposes of this paragraph:
742     1.  Business is transacted in this state when any
743occupation, profession, or commercial activity, including
744financing, leasing, selling, or servicing activities, is
745regularly conducted with customers in this state from an office,
746plant, home, or any other business location in this state.
747     2.  Business is transacted in this state when any
748occupation, profession, or commercial activity, including, but
749not limited to, financing, leasing, selling, or servicing
750activities, is regularly conducted with customers in this state
751by or through agents, employees, or representatives of any kind
752in this state, whether or not such persons are vested with
753discretionary authority.
754     (b)  Notwithstanding the provisions of this subsection:
755     1.a.  Intangible personal property that is credit card or
756charge card receivables or related lines of credit or loans
757shall be deemed to have business situs in this state only when
758the debt represented by such intangible property is owed by a
759customer who is domiciled in this state.
760     b.  The performance of ministerial functions relating to,
761or the processing of, credit card or charge card receivables in
762this state for the owner of such receivables is not sufficient
763to support a finding that the owner is transacting business in
764this state.
765     c.  The term "credit card or charge card receivables" does
766not include trade or service receivables as defined in s. 864 of
767the Internal Revenue Code of 1986, as amended.
768     2.  Intangible personal property owned by a real estate
769mortgage investment conduit, a real estate investment trust, or
770a regulated investment company, as those terms are defined in
771the United States Internal Revenue Code of 1986, as amended,
772shall not be deemed to have a taxable situs in this state unless
773such entity has its legal or commercial domicile in this state.
774     3.  The ownership of any interest in a participation or
775syndication loan or pool of loans, notes, or receivables is not
776sufficient to support a finding that the owner of such interest
777is transacting business in this state. For purposes of this
778subparagraph, a participation or syndication loan is a loan in
779which more than one lender is a creditor to a common borrower,
780and a participation or syndication interest in a pool of loans,
781notes, or receivables is an interest acquired from the
782originator or initial creditor with respect to the loans, notes,
783or receivables constituting the pool.
784     (c)  It is the intent of this subsection that a nonresident
785may not transact business in this state without paying the same
786tax which the state imposes on residents transacting the same
787business.
788     199.1855  Property exempted from annual and nonrecurring
789taxes.-
790     (1)  The following intangible personal property is exempt
791from the annual and nonrecurring taxes imposed by this chapter:
792     (a)  Money.
793     (b)  Franchises.
794     (c)  Any interest as a partner in a partnership, general or
795limited, other than any interest as a limited partner in a
796limited partnership registered with the Securities and Exchange
797Commission pursuant to the Securities Act of 1933, as amended.
798     (d)  Notes, bonds, and other obligations issued by the
799State of Florida or its municipalities, counties, and other
800taxing districts, or by the United States Government and its
801agencies.
802     (e)  Intangible personal property held in trust pursuant to
803any stock bonus, pension, or profit-sharing plan or any
804individual retirement account which is qualified under s. 530,
805s. 401, s. 408, or s. 408A of the United States Internal Revenue
806Code, 26 U.S.C. ss. 530, 401, 408, and 408A, as amended.
807     (f)  Intangible personal property held under a retirement
808plan of a Florida-based corporation exempt from federal income
809tax under s. 501(c)(6) of the United States Internal Revenue
810Code, 26 U.S.C., if the primary purpose of the corporation is to
811support the promotion of professional sports and the retirement
812plan is either a qualified plan under s. 457 of the United
813States Internal Revenue Code or the contributions to the plan,
814pursuant to a ruling by the United States Internal Revenue
815Service, are not taxable to plan participants until actual
816receipt or withdrawal by the participant.
817     (g)  Notes and other obligations, except bonds, to the
818extent that such notes and obligations are secured by mortgage,
819deed of trust, or other lien upon real property situated outside
820the state.
821     (h)  The assets of a corporation registered under the
822Investment Company Act of 1940, 15 U.S.C. s. 80a-1-52, as
823amended.
824     (i)  All intangible personal property issued in or arising
825out of any international banking transaction and owned by a
826banking organization.
827     (j)  Units of a unit investment trust and shares or units
828of, or other undivided interest in, a business trust organized
829under an agreement, indenture, or declaration of trust and
830registered under the Investment Company Act of 1940, as amended,
831shall be exempt if at least 90 percent of the net asset value of
832the portfolio of assets corresponding to such shares, units, or
833undivided interests is invested in assets that are exempt from
834the tax imposed by s. 199.0325.
835     (k)  Interests in real estate securitizations, including,
836but not limited to, real estate mortgage investment conduits
837(REMIC) and financial asset securitization trusts (FASITS),
838which are directly or indirectly secured by or payable from
839notes and obligations that are in turn secured solely by a
840mortgage, deed of trust, or other lien upon real property
841situated in or outside the state, including, but not limited to,
842mortgage pools, participations, and derivatives.
843     (l)  All accounts receivable arising or acquired in the
844ordinary course of a trade or business which are owned,
845controlled, or managed by a taxpayer. This exemption does not
846apply to accounts receivable that arise outside the taxpayer's
847ordinary course of trade or business. For the purposes of this
848chapter, the term "accounts receivable" means a business debt
849that is owed by another to the taxpayer or the taxpayer's
850assignee in the ordinary course of trade or business and is not
851supported by negotiable instruments. Accounts receivable
852include, but are not limited to, credit card receivables, charge
853card receivables, credit receivables, margin receivables,
854inventory or other floor plan financing, lease payments past
855due, conditional sales contracts, retail installment sales
856agreements, financing lease contracts, and a claim against a
857debtor usually arising from sales or services rendered and which
858is not necessarily due or past due. The examples specified in
859this paragraph shall be deemed not to be supported by negotiable
860instruments. The term "negotiable instrument" means a written
861document that is legally capable of being transferred by
862endorsement or delivery. The term "endorsement" means the act of
863a payee or holder in writing his or her name on the back of an
864instrument without further qualifying words other than "pay to
865the order of" or "pay to" whereby the property is assigned and
866transferred to another.
867     (m)  Stock options granted to employees by their employer
868pursuant to an incentive plan, if the employees cannot transfer,
869sell, or mortgage the options. Stock purchased by an employee
870from an employer pursuant to an incentive plan shall be treated
871as a nontaxable stock option if part of the purchase price of
872the stock is nonrecourse debt secured by the stock and the stock
873cannot be sold, transferred, or assigned by the employee until
874the nonrecourse debt is discharged. Such stock becomes taxable
875stock when it can be sold, transferred, or assigned by the
876employee.
877     (n)1.  A leasehold estate in governmental property in which
878the lessee is required to furnish space on the leasehold estate
879for public use by governmental agencies at no charge to the
880governmental agencies.
881     2.  The provisions of this exemption apply retroactively.
882However, notwithstanding the retroactivity of the exemption, it
883does not reopen a closed period of nonclaim under s. 215.26 or
884any other law or extend the period of nonclaim under s. 215.26
885or any other statute.
886     (2)(a)  Each natural person is entitled each year to an
887exemption of the first $1 million of the value of property
888otherwise subject to the annual tax. A husband and wife filing
889jointly shall have an exemption of $2 million. Every taxpayer
890that is not a natural person is entitled each year to an
891exemption of the first $250,000 of the value of property
892otherwise subject to the tax. Agents and fiduciaries, other than
893guardians and custodians under a gifts-to-minors act, filing as
894such may not claim this exemption on behalf of their principals
895or beneficiaries; however, if the principal or beneficiary
896returns the property held by the agent or fiduciary and is a
897natural person, the principal or beneficiary may claim the
898exemption. A taxpayer is not entitled to more than one exemption
899under this subsection. This exemption shall not apply to
900intangible personal property described in s. 199.0235(6)(d).
901     (b)  For purposes of this chapter, a resident shall be
902deemed to have a beneficial interest in a trust if the resident
903is the grantor of an irrevocable trust formed under any
904arrangement, verbal or written, that provides for more than 25
905per cent of the assets of the trust to be transferred within 10
906years after the agreement is executed back to the grantor or to
907the beneficiary other than as a result of the death of the
908grantor. Assets in any trust designated as a Florida Intangible
909Tax Exempt Trust or a similar arrangement are considered
910beneficial interests.
911     (3)  Each natural person who is a widow or widower, or who
912is blind or totally and permanently disabled, is entitled each
913year to an additional exemption of $500 of property otherwise
914subject to the annual or nonrecurring tax. This exemption is
915afforded by s. 3, Art. VII of the State Constitution and is
916available only to the extent not used against real property or
917tangible personal property taxes.
918     (4)  Charitable trusts, 95 percent of the income of which
919is paid to organizations exempt from federal income tax pursuant
920to s. 501(c)3 of the Internal Revenue Code, are exempt from the
921tax imposed in s. 199.0325.
922     (5)  Any organization defined in s. 220.62(1), (2), (3), or
923(4) is exempt from the tax imposed by s. 199.0325.
924     (6)  Each liquor distributor that is domiciled in this
925state, that is authorized to do business under the Beverage Law,
926and that has paid the license taxes required by s. 565.03(2) is
927exempt from paying tax on accounts receivable owned by the
928taxpayer which are derived from, arise out of, or are issued in
929connection with a sale of alcoholic beverages transacted in
930another state with a customer in another state.
931     (7)  A national bank that has its principal place of
932business in another state, processes credit card credit
933applications in this state or performs customer service or
934collection operations in this state, and is not a bank under 12
935U.S.C. s. 1941(c)(2)(F), is exempt from paying tax on credit
936card receivables owed to the bank by a credit card holder
937domiciled outside this state.
938     (8)  Each insurer, as defined in s. 624.03, whether the
939insurer is authorized or unauthorized as defined in s. 624.09,
940is exempt from the tax imposed by s. 199.0325.
941     Section 2.  Effective January 1, 2011, paragraph (c) of
942subsection (1) of section 28.35, Florida Statutes, is amended to
943read:
944     28.35  Florida Clerks of Court Operations Corporation.-
945     (1)
946     (c)  For purposes of s. 199.183(1), the corporation shall
947be considered a political subdivision of the state and shall be
948exempt from the corporate income tax. The corporation is not
949subject to the procurement provisions of chapter 287, and
950policies and decisions of the corporation relating to incurring
951debt, levying assessments, and the sale, issuance, continuation,
952terms, and claims under corporation policies, and all services
953relating thereto, are not subject to the provisions of chapter
954120.
955     Section 3.  Effective January 1, 2011, paragraph (a) of
956subsection (4) of section 192.0105, Florida Statutes, is amended
957to read:
958     192.0105  Taxpayer rights.-There is created a Florida
959Taxpayer's Bill of Rights for property taxes and assessments to
960guarantee that the rights, privacy, and property of the
961taxpayers of this state are adequately safeguarded and protected
962during tax levy, assessment, collection, and enforcement
963processes administered under the revenue laws of this state. The
964Taxpayer's Bill of Rights compiles, in one document, brief but
965comprehensive statements that summarize the rights and
966obligations of the property appraisers, tax collectors, clerks
967of the court, local governing boards, the Department of Revenue,
968and taxpayers. Additional rights afforded to payors of taxes and
969assessments imposed under the revenue laws of this state are
970provided in s. 213.015. The rights afforded taxpayers to assure
971that their privacy and property are safeguarded and protected
972during tax levy, assessment, and collection are available only
973insofar as they are implemented in other parts of the Florida
974Statutes or rules of the Department of Revenue. The rights so
975guaranteed to state taxpayers in the Florida Statutes and the
976departmental rules include:
977     (4)  THE RIGHT TO CONFIDENTIALITY.-
978     (a)  The right to have information kept confidential,
979including federal tax information, ad valorem tax returns,
980social security numbers, all financial records produced by the
981taxpayer, Form DR-219 returns for documentary stamp tax
982information, and sworn statements of gross income, copies of
983federal income tax returns for the prior year, wage and earnings
984statements (W-2 forms), and other documents (see ss. 192.105,
985193.074, 193.114(6)(5), 195.027(3) and (6), and 196.101(4)(c)).
986     Section 4.  Effective January 1, 2011, subsections (5) and
987(6) of section 192.032, Florida Statutes, are renumbered as
988subsections (6) and (7), respectively, and a new subsection (5)
989is added to that section, to read:
990     192.032  Situs of property for assessment purposes.-All
991property shall be assessed according to its situs as follows:
992     (5)  Intangible personal property, according to the rules
993laid down in chapter 199.
994     Section 5.  Effective January 1, 2011, subsection (3) is
995added to section 192.042, Florida Statutes, to read:
996     192.042  Date of assessment.-All property shall be assessed
997according to its just value as follows:
998     (3)  Intangible personal property, according to the rules
999laid down in chapter 199.
1000     Section 6.  Effective January 1, 2011, subsection (5) of
1001section 192.091, Florida Statutes, is amended to read:
1002     192.091  Commissions of property appraisers and tax
1003collectors.-
1004     (5)  The provisions of this section shall not apply to
1005commissions on intangible property taxes or drainage district or
1006drainage subdistrict taxes.
1007     Section 7.  Effective January 1, 2011, subsections (4),
1008(5), and (6) of section 193.114, Florida Statutes, are
1009renumbered as subsections (5), (6), and (7), respectively, and a
1010new subsection (4) is added to that section to read:
1011     193.114  Preparation of assessment rolls.-
1012     (4)  The department shall adopt regulations and forms for
1013the preparation of the intangible personal property tax roll to
1014comply with chapter 199.
1015     Section 8.  Effective January 1, 2011, subsection (11) is
1016added to section 196.015, Florida Statutes, to read:
1017     196.015  Permanent residency; factual determination by
1018property appraiser.-Intention to establish a permanent residence
1019in this state is a factual determination to be made, in the
1020first instance, by the property appraiser. Although any one
1021factor is not conclusive of the establishment or
1022nonestablishment of permanent residence, the following are
1023relevant factors that may be considered by the property
1024appraiser in making his or her determination as to the intent of
1025a person claiming a homestead exemption to establish a permanent
1026residence in this state:
1027     (11)  The previous filing of Florida intangible tax returns
1028by the applicant.
1029     Section 9.  Effective January 1, 2011, paragraph (b) of
1030subsection (2) of section 196.199, Florida Statutes, is amended
1031to read:
1032     196.199  Government property exemption.-
1033     (2)  Property owned by the following governmental units but
1034used by nongovernmental lessees shall only be exempt from
1035taxation under the following conditions:
1036     (b)  Except as provided in paragraph (c), the exemption
1037provided by this subsection shall not apply to those portions of
1038a leasehold or other interest defined by s. 199.0235(6)(d)
1039199.023(1)(d), Florida Statutes 2005, subject to the provisions
1040of subsection (7). Such leasehold or other interest shall be
1041taxed only as intangible personal property pursuant to chapter
1042199, Florida Statutes 2005, if rental payments are due in
1043consideration of such leasehold or other interest. All
1044applicable collection, administration, and enforcement
1045provisions of chapter 199, Florida Statutes 2005, shall apply to
1046taxation of such leaseholds. If no rental payments are due
1047pursuant to the agreement creating such leasehold or other
1048interest, the leasehold or other interest shall be taxed as real
1049property. Nothing in this paragraph shall be deemed to exempt
1050personal property, buildings, or other real property
1051improvements owned by the lessee from ad valorem taxation.
1052     Section 10.  Effective January 1, 2011, subsection (2) of
1053section 199.133, Florida Statutes, is amended to read:
1054     199.133  Levy of nonrecurring tax; relationship to annual
1055tax.-
1056     (2)  The nonrecurring tax shall apply to a note, bond, or
1057other obligation for payment of money only to the extent it is
1058secured by mortgage, deed of trust, or other lien upon real
1059property situated in this state. Where a note, bond, or other
1060obligation is secured by personal property or by real property
1061situated outside this state, as well as by mortgage, deed of
1062trust, or other lien upon real property situated in this state,
1063then the nonrecurring tax shall apply to that portion of the
1064note, bond, or other obligation which bears the same ratio to
1065the entire principal balance of the note, bond, or other
1066obligation as the value of the real property situated in this
1067state bears to the value of all of the security; however, if the
1068security is solely made up of personal property and real
1069property situated in this state, the taxpayer may elect to
1070apportion the taxes based upon the value of the collateral, if
1071any, to which the taxpayer by law or contract must look first
1072for collection. In no event shall the portion of the note, bond,
1073or other obligation which is subject to the nonrecurring tax
1074exceed in value the value of the real property situated in this
1075state which is the security. The portion of a note, bond, or
1076other obligation that is not subject to the nonrecurring tax
1077shall be subject to the annual tax unless otherwise exempt.
1078     Section 11.  Effective January 1, 2011, paragraph (a) of
1079subsection (1) of section 199.183, Florida Statutes, is amended,
1080and subsections (3) and (4) are added to that section, to read:
1081     199.183  Taxpayers exempt from annual and nonrecurring
1082taxes.-
1083     (1)  Intangible personal property owned by this state or
1084any of its political subdivisions or municipalities shall be
1085exempt from taxation under this chapter. This exemption does not
1086apply to:
1087     (a)  Any leasehold or other interest that is described in
1088s. 199.0235(6)(d) 199.023(1)(d), Florida Statutes 2005; or
1089     (b)  Property related to the provision of two-way
1090telecommunications services to the public for hire by the use of
1091a telecommunications facility, as defined in s. 364.02(15), and
1092for which a certificate is required under chapter 364, when the
1093service is provided by any county, municipality, or other
1094political subdivision of the state. Any immunity of any
1095political subdivision of the state or other entity of local
1096government from taxation of the property used to provide
1097telecommunication services that is taxed as a result of this
1098paragraph is hereby waived. However, intangible personal
1099property related to the provision of telecommunications services
1100provided by the operator of a public-use airport, as defined in
1101s. 332.004, for the operator's provision of telecommunications
1102services for the airport or its tenants, concessionaires, or
1103licensees, and intangible personal property related to the
1104provision of telecommunications services provided by a public
1105hospital, are exempt from taxation under this chapter.
1106     (3)  Every national bank having its principal place of
1107business in another state, but operating a credit card credit
1108application processing, customer service, or collection
1109operation in this state, that is not considered a bank under the
1110provisions of 12 U.S.C. s. 1841(c)(2)(F), is exempt from paying
1111the tax imposed by this chapter on credit card receivables owed
1112to the bank by credit card holders domiciled outside this state.
1113     (4)  Intangible personal property that is owned, managed,
1114or controlled by a trustee of a trust is exempt from annual tax
1115under this chapter. This exemption does not exempt from annual
1116tax a resident of this state who has a taxable beneficial
1117interest, as defined in s. 199.0235(4), in a trust.
1118     Section 12.  Effective January 1, 2011, section 199.218,
1119Florida Statutes, is amended to read:
1120     199.218  Books and records.-
1121     (1)  Each taxpayer shall retain all books and other records
1122necessary to identify the taxpayer's intangible personal
1123property and to determine any tax due under this chapter, as
1124well as all books and other records otherwise required by rule
1125of the department with respect to any such tax, until the
1126department's power to make an assessment with respect to such
1127tax has terminated under s. 95.091(3).
1128     (2)  Each broker subject to the provisions of s. 199.0625
1129shall preserve all books and other records relating to the
1130information reported under s. 199.0625 or otherwise required by
1131rule of the department for a period of 3 years from the due date
1132of the report.
1133     Section 13.  Effective January 1, 2011, paragraph (a) of
1134subsection (1) and subsection (3) of section 199.232, Florida
1135Statutes, are amended to read:
1136     199.232  Powers of department.-
1137     (1)(a)  The department may audit the books and records of
1138any person to determine whether an annual tax or a nonrecurring
1139tax has been properly paid.
1140     (3)  With or without an audit, the department may assess
1141any tax deficiency resulting from nonpayment or underpayment of
1142the tax, as well as any applicable interest and penalties. The
1143department shall assess on the basis of the best information
1144available to it, including estimates based on the best
1145information available to it if the taxpayer fails to permit
1146inspection of the taxpayer's records, fails to file an annual
1147return, files a grossly incorrect return, or files a false and
1148fraudulent return.
1149     Section 14.  Effective January 1, 2011, section 199.282,
1150Florida Statutes, is amended to read:
1151     199.282  Penalties for violation of this chapter.-
1152     (1)  Any person willfully violating or failing to comply
1153with any of the provisions of this chapter shall be guilty of a
1154felony of the third degree, punishable as provided in s.
1155775.082, s. 775.083, or s. 775.084.
1156     (2)  If any annual or nonrecurring tax is not paid by the
1157statutory due date, then despite any extension granted under s.
1158199.232(6), interest shall run on the unpaid balance from such
1159due date until paid at the rate of 12 percent per year.
1160     (3)(a)  If any annual or nonrecurring tax is not paid by
1161the due date, a delinquency penalty shall be charged. The
1162delinquency penalty shall be 10 percent of the delinquent tax
1163for each calendar month or portion thereof from the due date
1164until paid, up to a limit of 50 percent of the total tax not
1165timely paid.
1166     (b)  If any annual tax return required by this chapter is
1167not filed by the due date, a penalty of 10 percent of the tax
1168due with the return shall be charged for each calendar month or
1169portion thereof during which the return remains unfiled, up to a
1170limit of 50 percent of the total tax due.
1171
1172For any penalty assessed under this subsection, the combined
1173total for all penalties assessed under paragraphs (a) and (b)
1174shall not exceed 10 percent per calendar month, up to a limit of
117550 percent of the total tax due.
1176     (4)  If an annual tax return is filed and property is
1177either omitted from it or undervalued, then a specific penalty
1178shall be charged. The specific penalty shall be 10 percent of
1179the tax attributable to each omitted item or to each
1180undervaluation. No delinquency or late filing penalty shall be
1181charged with respect to any undervaluation.
1182     (5)(4)  No mortgage, deed of trust, or other lien upon real
1183property situated in this state shall be enforceable in any
1184Florida court, nor shall any written evidence of such mortgage,
1185deed of trust, or other lien be recorded in any public record of
1186the state, until the nonrecurring tax imposed by this chapter,
1187including any taxes due on future advances, has been paid and
1188the clerk of circuit court collecting the tax has noted its
1189payment on the instrument or given other receipt for it.
1190However, failure to pay the correct amount of tax or failure of
1191the clerk to note payment of the tax on the instrument shall not
1192affect the constructive notice given by recording of the
1193instrument.
1194     (6)  Late reporting penalties shall be imposed as follows:
1195     (a)  A penalty of $100 upon any corporation that does not
1196timely file a written notice required under s. 199.0575(2)(c).
1197     (b)  An initial penalty of $10 per customer position
1198statement, plus an additional penalty of the greater of 1
1199percent of the initial penalty or $50 for each month or portion
1200of a month, from the date due until filing is made, upon any
1201security dealer or investment adviser who does not timely file
1202or fails to file the statements required by s. 199.0625(1). The
1203submission of a position statement that does not comply with the
1204department's specifications and instructions or the submission
1205of an inaccurate position statement is not a timely filing. The
1206department shall notify any security dealer or investment
1207adviser who fails to timely file the required statements. The
1208minimum penalty imposed upon a security dealer or investment
1209adviser under this paragraph is $100.
1210     (7)(5)  Interest and penalties attributable to any tax
1211shall be deemed assessed when the tax is assessed. Interest and
1212penalties shall be assessed and collected by the department as
1213provided in this chapter. The department may settle or
1214compromise tax, interest, or penalties under the provisions of
1215s. 213.21.
1216     (8)(6)  Any person who fails or refuses to file an annual
1217return, or who fails or refuses to make records available for
1218inspection, when requested to do so by the department is guilty
1219of a misdemeanor of the first degree, punishable as provided in
1220s. 775.082 or s. 775.083.
1221     (9)(7)  Any officer or director of a corporation who has
1222administrative control over the filing of a return or payment of
1223any tax due under this chapter and who willfully directs any
1224employee of the corporation to fail to file the return or pay
1225the tax due or to evade, defeat, or improperly account for the
1226tax due, in addition to any other penalties provided by law,
1227shall be liable for a penalty equal to the amount of tax not
1228paid as required by this chapter. The filing of a protest based
1229upon doubt as to liability for the tax shall not be deemed an
1230attempt to evade or defeat the tax under this subsection. The
1231penalty imposed hereunder shall be abated to the extent the tax
1232is paid and may be compromised by the executive director of the
1233department as provided in s. 213.21. An assessment of penalty
1234made pursuant to this section shall be deemed prima facie
1235correct in any judicial or quasi-judicial proceeding brought to
1236collect this penalty.
1237     Section 15.  Effective January 1, 2011, section 199.292,
1238Florida Statutes, is amended to read:
1239     199.292  Disposition of intangible personal property
1240taxes.-All intangible personal property taxes collected pursuant
1241to this chapter, except for revenues derived from the annual tax
1242on a leasehold described in s. 199.0235(6)(d) 199.023(1)(d),
1243Florida Statutes 2005, shall be deposited into the General
1244Revenue Fund. Revenues derived from the annual tax on a
1245leasehold described in s. 199.0235(6)(d) 199.023(1)(d), Florida
1246Statutes 2005, shall be returned to the local school board for
1247the county in which the property subject to the leasehold is
1248situated.
1249     Section 16.  Effective January 1, 2011, subsection (3) of
1250section 199.303, Florida Statutes, is amended to read:
1251     199.303  Declaration of legislative intent.-
1252     (3)  It is hereby declared to be the specific intent of the
1253Legislature that all annual intangible personal property taxes
1254imposed as provided by law for calendar years 2006 and prior
1255shall remain in full force and effect during the period
1256specified by s. 95.091 for the year in which the tax was due. It
1257is further the intent of the Legislature that the department
1258continue to assess and collect all taxes due to the state under
1259such provisions for all periods available for assessment, as
1260provided for the year in which tax was due by s. 95.091.
1261     Section 17.  Effective January 1, 2011, subsection (19) of
1262section 212.02, Florida Statutes, is amended to read:
1263     212.02  Definitions.-The following terms and phrases when
1264used in this chapter have the meanings ascribed to them in this
1265section, except where the context clearly indicates a different
1266meaning:
1267     (19)  "Tangible personal property" means and includes
1268personal property which may be seen, weighed, measured, or
1269touched or is in any manner perceptible to the senses, including
1270electric power or energy, boats, motor vehicles and mobile homes
1271as defined in s. 320.01(1) and (2), aircraft as defined in s.
1272330.27, and all other types of vehicles. The term "tangible
1273personal property" does not include stocks, bonds, notes,
1274insurance, or other obligations or securities; intangibles as
1275defined by the intangible tax law of the state; or pari-mutuel
1276tickets sold or issued under the racing laws of the state.
1277     Section 18.  Effective January 1, 2011, paragraph (p) of
1278subsection (8) and paragraph (a) of subsection (15) of section
1279213.053, Florida Statutes, are amended to read:
1280     213.053  Confidentiality and information sharing.-
1281     (8)  Notwithstanding any other provision of this section,
1282the department may provide:
1283     (p)  Information relative to ss. 199.10555, 220.1845, and
1284376.30781 to the Department of Environmental Protection in the
1285conduct of its official business.
1286
1287Disclosure of information under this subsection shall be
1288pursuant to a written agreement between the executive director
1289and the agency. Such agencies, governmental or nongovernmental,
1290shall be bound by the same requirements of confidentiality as
1291the Department of Revenue. Breach of confidentiality is a
1292misdemeanor of the first degree, punishable as provided by s.
1293775.082 or s. 775.083.
1294     (15)(a)  Notwithstanding any other provision of this
1295section, the department shall, subject to the safeguards
1296specified in paragraph (c), disclose to the Division of
1297Corporations of the Department of State the name, address,
1298federal employer identification number, and duration of tax
1299filings with this state of all corporate or partnership entities
1300which are not on file or have a dissolved status with the
1301Division of Corporations and which have filed tax returns
1302pursuant to chapter 199 or chapter 220.
1303     Section 19.  Effective January 1, 2011, section 213.054,
1304Florida Statutes, is amended to read:
1305     213.054  Persons claiming tax exemptions or deductions;
1306annual report.-The Department of Revenue shall be responsible
1307for monitoring the utilization of tax exemptions and tax
1308deductions authorized pursuant to chapter 81-179, Laws of
1309Florida. On or before September 1 of each year, the department
1310shall report to the Chief Financial Officer the names and
1311addresses of all persons who have claimed an exemption pursuant
1312to s. 199.1855(1)(i) or a deduction pursuant to s. 220.63(5).
1313     Section 20.  Effective January 1, 2011, section 213.27,
1314Florida Statutes, is amended to read:
1315     213.27  Contracts with debt collection agencies and certain
1316vendors.-
1317     (1)  The Department of Revenue may, for the purpose of
1318collecting any delinquent taxes due from a taxpayer, including
1319taxes for which a bill or notice has been generated, contract
1320with any debt collection agency or attorney doing business
1321within or without this state for the collection of such
1322delinquent taxes, including penalties and interest thereon. The
1323department may also share confidential information pursuant to
1324the contract necessary for the collection of delinquent taxes
1325and taxes for which a billing or notice has been generated.
1326Contracts will be made pursuant to chapter 287. The taxpayer
1327must be notified by mail by the department, its employees, or
1328its authorized representative at least 30 days prior to
1329commencing any litigation to recover any delinquent taxes. The
1330taxpayer must be notified by mail by the department at least 30
1331days prior to the initial assignment by the department of the
1332taxpayer's account for the collection of any taxes by the debt
1333collection agency.
1334     (2)  The department may enter into contracts with any
1335individual or business for the purpose of identifying intangible
1336personal property tax liability. Contracts may provide for the
1337identification of assets subject to the tax on intangible
1338personal property, the determination of value of such property,
1339the requirement for filing a tax return and the collection of
1340taxes due, including applicable penalties and interest thereon.
1341The department may share confidential information pursuant to
1342the contract necessary for the identification of taxable
1343intangible personal property. Contracts shall be made pursuant
1344to chapter 287. The taxpayer must be notified by mail by the
1345department at least 30 days prior to the department assigning
1346identification of intangible personal property to an individual
1347or business.
1348     (3)(2)  Any contract may provide, in the discretion of the
1349executive director of the Department of Revenue, the manner in
1350which the compensation for such services will be paid. Under
1351standards established by the department, such compensation shall
1352be added to the amount of the tax and collected as a part
1353thereof by the agency or deducted from the amount of tax,
1354penalty, and interest actually collected.
1355     (4)(3)  All funds collected under the terms of the
1356contract, less the fees provided in the contract, shall be
1357remitted to the department within 30 days from the date of
1358collection from a taxpayer. Forms to be used for such purpose
1359shall be prescribed by the department.
1360     (5)(4)  The department shall require a bond from the debt
1361collection agency or the individual or business contracted with
1362under subsection (2) not in excess of $100,000 guaranteeing
1363compliance with the terms of the contract. However, a bond of
1364$10,000 is required from a debt collection agency if the agency
1365does not actually collect and remit delinquent funds to the
1366department.
1367     (6)(5)  The department may, for the purpose of ascertaining
1368the amount of or collecting any taxes due from a person doing
1369mail order business in this state, contract with any auditing
1370agency doing business within or without this state for the
1371purpose of conducting an audit of such mail order business;
1372however, such audit agency may not conduct an audit on behalf of
1373the department of any person domiciled in this state, person
1374registered for sales and use tax purposes in this state, or
1375corporation filing a Florida corporate tax return, if any such
1376person or corporation objects to such audit in writing to the
1377department and the auditing agency. The department shall notify
1378the taxpayer by mail at least 30 days before the department
1379assigns the collection of such taxes.
1380     (7)(6)  Confidential information shared by the department
1381with debt collection or auditing agencies or individuals or
1382businesses with which the department has contracted under
1383subsection (2) is exempt from the provisions of s. 119.07(1),
1384and debt collection or auditing agencies and individuals or
1385businesses with which the department has contracted under
1386subsection (2) shall be bound by the same requirements of
1387confidentiality as the Department of Revenue. Breach of
1388confidentiality is a misdemeanor of the first degree, punishable
1389as provided by ss. 775.082 and 775.083.
1390     (8)(7)(a)  The executive director of the department may
1391enter into contracts with private vendors to develop and
1392implement systems to enhance tax collections where compensation
1393to the vendors is funded through increased tax collections. The
1394amount of compensation paid to a vendor shall be based on a
1395percentage of increased tax collections attributable to the
1396system after all administrative and judicial appeals are
1397exhausted, and the total amount of compensation paid to a vendor
1398shall not exceed the maximum amount stated in the contract.
1399     (b)  A person acting on behalf of the department under a
1400contract authorized by this subsection does not exercise any of
1401the powers of the department, except that the person is an agent
1402of the department for the purposes of developing and
1403implementing a system to enhance tax collection.
1404     (c)  Disclosure of information under this subsection shall
1405be pursuant to a written agreement between the executive
1406director and the private vendors. The vendors shall be bound by
1407the same requirements of confidentiality as the department.
1408Breach of confidentiality is a misdemeanor of the first degree,
1409punishable as provided in s. 775.082 or s. 775.083.
1410     Section 21.  Effective January 1, 2011, paragraph (b) of
1411subsection (4) of section 650.05, Florida Statutes, is amended
1412to read:
1413     650.05  Plans for coverage of employees of political
1414subdivisions.-
1415     (4)
1416     (b)  The grants-in-aid and other revenue referred to in
1417paragraph (a) specifically include, but are not limited to,
1418minimum foundation program grants to public school districts and
1419community colleges; gasoline, motor fuel, intangible, cigarette,
1420racing, and insurance premium taxes distributed to political
1421subdivisions; and amounts specifically appropriated as grants-
1422in-aid for mental health, mental retardation, and mosquito
1423control programs.
1424     Section 22.  Effective January 1, 2011, subsection (5) of
1425section 733.702, Florida Statutes, is renumbered as subsection
1426(6), and a new subsection (5) is added to that section to read:
1427     733.702  Limitations on presentation of claims.-
1428     (5)  The Department of Revenue may file a claim against the
1429estate of a decedent for taxes due under chapter 199 after the
1430expiration of the time for filing claims provided in subsection
1431(1), if the department files its claim within 30 days after the
1432service of the inventory. Upon filing of the estate tax return
1433with the department as provided in s. 198.13, or to the extent
1434the inventory or estate tax return is amended or supplemented,
1435the department has the right to file a claim or to amend its
1436previously filed claim within 30 days after service of the
1437estate tax return, or an amended or supplemented inventory or
1438filing of an amended or supplemental estate tax return, as to
1439the additional information disclosed.
1440     Section 23.  Effective upon this act becoming a law, the
1441executive director of the Department of Revenue may adopt
1442emergency rules under ss. 120.536(1) and 120.54, Florida
1443Statutes, to implement chapter 199, Florida Statutes, and all
1444conditions are deemed met for the adoption of such rules.
1445Notwithstanding any other provision of law, such emergency rules
1446shall remain effective for 6 months after the date of adoption
1447and may be renewed during the pendency of procedures to adopt
1448rules addressing the subject of the emergency rules.
1449     Section 24.  Legislative findings and intent.-The
1450Legislature finds that the separate accounting system used to
1451measure the income of multistate and multinational corporations
1452for tax purposes often places corporations in this state at a
1453competitive disadvantage. Moreover, corporate business is
1454increasingly conducted through groups of commonly owned
1455corporations. Therefore, the Legislature intends to more
1456accurately measure the business activities of corporations by
1457adopting a combined system of income tax reporting.
1458     Section 25.  Paragraph (z) of subsection (1) of section
1459220.03, Florida Statutes, is amended, and paragraphs (gg) and
1460(hh) are added to that subsection, to read:
1461     220.03  Definitions.-
1462     (1)  SPECIFIC TERMS.-When used in this code, and when not
1463otherwise distinctly expressed or manifestly incompatible with
1464the intent thereof, the following terms shall have the following
1465meanings:
1466     (z)  "Taxpayer" means any corporation subject to the tax
1467imposed by this code, and includes all corporations that are
1468members of a water's edge group for which a consolidated return
1469is filed under s. 220.131. However, "taxpayer" does not include
1470a corporation having no individuals (including individuals
1471employed by an affiliate) receiving compensation in this state
1472as defined in s. 220.15 when the only property owned or leased
1473by said corporation (including an affiliate) in this state is
1474located at the premises of a printer with which it has
1475contracted for printing, if such property consists of the final
1476printed product, property which becomes a part of the final
1477printed product, or property from which the printed product is
1478produced.
1479     (gg)  "Tax haven" means a jurisdiction that, for a
1480particular tax year:
1481     1.  Is identified by the Organization for Economic Co-
1482operation and Development as a tax haven or as having a harmful
1483preferential tax regime; or
1484     2.a.  Is a jurisdiction that does not impose or imposes
1485only a nominal, effective tax on relevant income;
1486     b.  Has laws or practices that prevent the effective
1487exchange of information for tax purposes with other governments
1488regarding taxpayers who are subject to, or benefiting from, the
1489tax regime;
1490     c.  Lacks transparency;
1491     d.  Facilitates the establishment of foreign-owned entities
1492without the need for a local substantive presence or prohibits
1493these entities from having any commercial impact on the local
1494economy;
1495     e.  Explicitly or implicitly excludes the jurisdiction's
1496resident taxpayers from taking advantage of the tax regime's
1497benefits or prohibits enterprises that benefit from the regime
1498from operating in the jurisdiction's domestic market; or
1499     f.  Has created a tax regime that is favorable for tax
1500avoidance, based upon an overall assessment of relevant factors,
1501including whether the jurisdiction has a significant untaxed
1502offshore financial or other services sector relative to its
1503overall economy.
1504
1505     For purposes of this paragraph, a tax regime lacks
1506transparency if the details of legislative, legal, or
1507administrative requirements are not open to public scrutiny and
1508apparent, or are not consistently applied among similarly
1509situated taxpayers. As used in this paragraph, the term "tax
1510regime" means a set or system of rules, laws, regulations, or
1511practices by which taxes are imposed on any person, corporation,
1512or entity, or on any income, property, incident, indicia, or
1513activity pursuant to government authority.
1514     (hh)  "Water's edge group" means a group of corporations
1515related through common ownership whose business activities are
1516integrated with, dependent upon, or contribute to a flow of
1517value among members of the group.
1518     Section 26.  Subsection (1) of section 220.13, Florida
1519Statutes, is amended to read:
1520     220.13  "Adjusted federal income" defined.-
1521     (1)  The term "adjusted federal income" means an amount
1522equal to the taxpayer's taxable income as defined in subsection
1523(2), or such taxable income of more than one taxpayer as
1524provided in s. 220.1363 s. 220.131, for the taxable year,
1525adjusted as follows:
1526     (a)  Additions.-There shall be added to such taxable
1527income:
1528     1.  The amount of any tax upon or measured by income,
1529excluding taxes based on gross receipts or revenues, paid or
1530accrued as a liability to the District of Columbia or any state
1531of the United States which is deductible from gross income in
1532the computation of taxable income for the taxable year.
1533     2.  The amount of interest which is excluded from taxable
1534income under s. 103(a) of the Internal Revenue Code or any other
1535federal law, less the associated expenses disallowed in the
1536computation of taxable income under s. 265 of the Internal
1537Revenue Code or any other law, excluding 60 percent of any
1538amounts included in alternative minimum taxable income, as
1539defined in s. 55(b)(2) of the Internal Revenue Code, if the
1540taxpayer pays tax under s. 220.11(3).
1541     3.  In the case of a regulated investment company or real
1542estate investment trust, an amount equal to the excess of the
1543net long-term capital gain for the taxable year over the amount
1544of the capital gain dividends attributable to the taxable year.
1545     4.  That portion of the wages or salaries paid or incurred
1546for the taxable year which is equal to the amount of the credit
1547allowable for the taxable year under s. 220.181. This
1548subparagraph shall expire on the date specified in s. 290.016
1549for the expiration of the Florida Enterprise Zone Act.
1550     5.  That portion of the ad valorem school taxes paid or
1551incurred for the taxable year which is equal to the amount of
1552the credit allowable for the taxable year under s. 220.182. This
1553subparagraph shall expire on the date specified in s. 290.016
1554for the expiration of the Florida Enterprise Zone Act.
1555     6.  The amount of emergency excise tax paid or accrued as a
1556liability to this state under chapter 221 which tax is
1557deductible from gross income in the computation of taxable
1558income for the taxable year.
1559     7.  That portion of assessments to fund a guaranty
1560association incurred for the taxable year which is equal to the
1561amount of the credit allowable for the taxable year.
1562     8.  In the case of a nonprofit corporation which holds a
1563pari-mutuel permit and which is exempt from federal income tax
1564as a farmers' cooperative, an amount equal to the excess of the
1565gross income attributable to the pari-mutuel operations over the
1566attributable expenses for the taxable year.
1567     9.  The amount taken as a credit for the taxable year under
1568s. 220.1895.
1569     10.  Up to nine percent of the eligible basis of any
1570designated project which is equal to the credit allowable for
1571the taxable year under s. 220.185.
1572     11.  The amount taken as a credit for the taxable year
1573under s. 220.187.
1574     12.  The amount taken as a credit for the taxable year
1575under s. 220.192.
1576     13.  The amount taken as a credit for the taxable year
1577under s. 220.193.
1578     14.  Any portion of a qualified investment, as defined in
1579s. 288.9913, which is claimed as a deduction by the taxpayer and
1580taken as a credit against income tax pursuant to s. 288.9916.
1581     (b)  Subtractions.-
1582     1.  There shall be subtracted from such taxable income:
1583     a.  The net operating loss deduction allowable for federal
1584income tax purposes under s. 172 of the Internal Revenue Code
1585for the taxable year,
1586     b.  The net capital loss allowable for federal income tax
1587purposes under s. 1212 of the Internal Revenue Code for the
1588taxable year,
1589     c.  The excess charitable contribution deduction allowable
1590for federal income tax purposes under s. 170(d)(2) of the
1591Internal Revenue Code for the taxable year, and
1592     d.  The excess contributions deductions allowable for
1593federal income tax purposes under s. 404 of the Internal Revenue
1594Code for the taxable year.
1595
1596However, a net operating loss and a capital loss shall never be
1597carried back as a deduction to a prior taxable year, but all
1598deductions attributable to such losses shall be deemed net
1599operating loss carryovers and capital loss carryovers,
1600respectively, and treated in the same manner, to the same
1601extent, and for the same time periods as are prescribed for such
1602carryovers in ss. 172 and 1212, respectively, of the Internal
1603Revenue Code. A deduction is not allowed for net operating
1604losses, net capital losses, or excess contribution deductions
1605under 26 U.S.C. ss. 170(d)(2), 172, 1212, and 404 for a member
1606of a water's edge group that is not a United States member.
1607Carryovers of net operating losses, net capital losses, or
1608excess contribution deductions under 26 U.S.C. ss. 170(d)(2),
1609172, 1212, and 404 may be subtracted only by the member of the
1610water's edge group that generates a carryover.
1611     2.  There shall be subtracted from such taxable income any
1612amount to the extent included therein the following:
1613     a.  Dividends treated as received from sources without the
1614United States, as determined under s. 862 of the Internal
1615Revenue Code.
1616     b.  All amounts included in taxable income under s. 78 or
1617s. 951 of the Internal Revenue Code.
1618
1619However, as to any amount subtracted under this subparagraph,
1620there shall be added to such taxable income all expenses
1621deducted on the taxpayer's return for the taxable year which are
1622attributable, directly or indirectly, to such subtracted amount.
1623Further, no amount shall be subtracted with respect to dividends
1624paid or deemed paid by a Domestic International Sales
1625Corporation.
1626     3.  Amounts received by a member of a water's edge group as
1627dividends paid by another member of the water's edge group shall
1628be subtracted from the taxable income to the extent that the
1629dividends are included in the taxable income.
1630     4.3.  In computing "adjusted federal income" for taxable
1631years beginning after December 31, 1976, there shall be allowed
1632as a deduction the amount of wages and salaries paid or incurred
1633within this state for the taxable year for which no deduction is
1634allowed pursuant to s. 280C(a) of the Internal Revenue Code
1635(relating to credit for employment of certain new employees).
1636     5.4.  There shall be subtracted from such taxable income
1637any amount of nonbusiness income included therein.
1638     6.5.  There shall be subtracted any amount of taxes of
1639foreign countries allowable as credits for taxable years
1640beginning on or after September 1, 1985, under s. 901 of the
1641Internal Revenue Code to any corporation which derived less than
164220 percent of its gross income or loss for its taxable year
1643ended in 1984 from sources within the United States, as
1644described in s. 861(a)(2)(A) of the Internal Revenue Code, not
1645including credits allowed under ss. 902 and 960 of the Internal
1646Revenue Code, withholding taxes on dividends within the meaning
1647of sub-subparagraph 2.a., and withholding taxes on royalties,
1648interest, technical service fees, and capital gains.
1649     7.6.  Notwithstanding any other provision of this code,
1650except with respect to amounts subtracted pursuant to
1651subparagraphs 1. and 4. 3., any increment of any apportionment
1652factor which is directly related to an increment of gross
1653receipts or income which is deducted, subtracted, or otherwise
1654excluded in determining adjusted federal income shall be
1655excluded from both the numerator and denominator of such
1656apportionment factor. Further, all valuations made for
1657apportionment factor purposes shall be made on a basis
1658consistent with the taxpayer's method of accounting for federal
1659income tax purposes.
1660     (c)  Installment sales occurring after October 19, 1980.-
1661     1.  In the case of any disposition made after October 19,
16621980, the income from an installment sale shall be taken into
1663account for the purposes of this code in the same manner that
1664such income is taken into account for federal income tax
1665purposes.
1666     2.  Any taxpayer who regularly sells or otherwise disposes
1667of personal property on the installment plan and reports the
1668income therefrom on the installment method for federal income
1669tax purposes under s. 453(a) of the Internal Revenue Code shall
1670report such income in the same manner under this code.
1671     (d)  Nonallowable deductions.-A deduction for net operating
1672losses, net capital losses, or excess contributions deductions
1673under ss. 170(d)(2), 172, 1212, and 404 of the Internal Revenue
1674Code which has been allowed in a prior taxable year for Florida
1675tax purposes shall not be allowed for Florida tax purposes,
1676notwithstanding the fact that such deduction has not been fully
1677utilized for federal tax purposes.
1678     (e)  Adjustments related to the Federal Economic Stimulus
1679Act of 2008 and the American Recovery and Reinvestment Act of
16802009.-Taxpayers shall be required to make the adjustments
1681prescribed in this paragraph for Florida tax purposes in
1682relation to certain tax benefits received pursuant to the
1683Economic Stimulus Act of 2008 and the American Recovery and
1684Reinvestment Act of 2009.
1685     1.  There shall be added to such taxable income an amount
1686equal to 100 percent of any amount deducted for federal income
1687tax purposes as bonus depreciation for the taxable year pursuant
1688to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
1689amended by s. 103 of Pub. L. No. 110-185 and s. 1201 of Pub. L.
1690No. 111-5, for property placed in service after December 31,
16912007, and before January 1, 2010. For the taxable year and for
1692each of the 6 subsequent taxable years, there shall be
1693subtracted from such taxable income an amount equal to one-
1694seventh of the amount by which taxable income was increased
1695pursuant to this subparagraph, notwithstanding any sale or other
1696disposition of the property that is the subject of the
1697adjustments and regardless of whether such property remains in
1698service in the hands of the taxpayer.
1699     2.  There shall be added to such taxable income an amount
1700equal to 100 percent of any amount in excess of $128,000
1701deducted for federal income tax purposes for the taxable year
1702pursuant to s. 179 of the Internal Revenue Code of 1986, as
1703amended by s. 102 of Pub. L. No. 110-185 and s. 1202 of Pub. L.
1704No. 111-5, for taxable years beginning after December 31, 2007,
1705and before January 1, 2010. For the taxable year and for each of
1706the 6 subsequent taxable years, there shall be subtracted from
1707such taxable income one-seventh of the amount by which taxable
1708income was increased pursuant to this subparagraph,
1709notwithstanding any sale or other disposition of the property
1710that is the subject of the adjustments and regardless of whether
1711such property remains in service in the hands of the taxpayer.
1712     3.  There shall be added to such taxable income an amount
1713equal to the amount of deferred income not included in such
1714taxable income pursuant to s. 108(i)(1) of the Internal Revenue
1715Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
1716shall be subtracted from such taxable income an amount equal to
1717the amount of deferred income included in such taxable income
1718pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
1719as amended by s. 1231 of Pub. L. No. 111-5.
1720     4.  Subtractions available under this paragraph may be
1721transferred to the surviving or acquiring entity following a
1722merger or acquisition and used in the same manner and with the
1723same limitations as specified by this paragraph.
1724     5.  The additions and subtractions specified in this
1725paragraph are intended to adjust taxable income for Florida tax
1726purposes, and, notwithstanding any other provision of this code,
1727such additions and subtractions shall be permitted to change a
1728taxpayer's net operating loss for Florida tax purposes.
1729     Section 27.  Section 220.136, Florida Statutes, is created
1730to read:
1731     220.136  Determination of the members of a water's edge
1732group.-
1733     (1)  MEMBERSHIP RULES.-
1734     (a)  A corporation having 50 percent or more of its
1735outstanding voting stock directly or indirectly owned or
1736controlled by a water's edge group is presumed to be a member of
1737the group. A corporation having less than 50 percent of its
1738outstanding voting stock directly or indirectly controlled by a
1739water's edge group is a member of the group if the businesses
1740activities of the corporation show that the corporation is a
1741member of the group. All of the income of a corporation that is
1742a member of a water's edge group is presumed to be unitary.
1743     (b)  A corporation that conducts business outside the
1744United States is not a member of a water's edge group if 80
1745percent or more of the corporation's property and payroll, as
1746determined by the apportionment factors described in ss. 220.15
1747and 220.1363, may be assigned to locations outside the United
1748States. However, such corporations that are incorporated in a
1749tax haven may be a member of a water's edge group pursuant to
1750paragraph (a). This paragraph does not exempt a corporation that
1751is not a member of a water's edge group from the provisions of
1752this chapter.
1753     (2)  MEMBERSHIP EVALUATION CRITERIA.-
1754     (a)  The attribution rules of 26 U.S.C. 318 shall be used
1755to determine whether voting stock is owned indirectly.
1756     (b)  As used in this paragraph, the term "United States"
1757means the 50 states, the District of Columbia, and Puerto Rico.
1758     (c)  The apportionment factors described in ss. 220.15 and
1759220.1363 shall be used to determine whether a special industry
1760corporation has engaged in a sufficient amount of activities
1761outside the United States to exclude it from treatment as a
1762member of a water's edge group.
1763     Section 28.  Section 220.1363, Florida Statutes, is created
1764to read:
1765     220.1363  Water's edge groups; special requirements.-
1766     (1)  All members of a water's edge group must use the
1767water's edge reporting method. Under the water's edge reporting
1768method:
1769     (a)  Adjusted federal income for purposes of s. 220.12
1770means the sum of adjusted federal income for all members of the
1771group as determined for a concurrent tax year.
1772     (b)  The numerators and denominators of the apportionment
1773factors shall be calculated for all members of the group
1774combined.
1775     (c)  Intercompany sales transactions between members of the
1776group are not included in the numerator or denominator of the
1777sales factor pursuant to ss. 220.15 and 220.151, regardless of
1778whether indicia of a sale exist. As used in this subsection, the
1779term "sale" includes, but is not limited to, loans, payments for
1780the use of intangibles, dividends, and management fees.
1781     (d)  For sales of intangibles, including, but not limited
1782to, accounts receivable, notes, bonds, and stock, which are made
1783to entities outside of the group, only the net proceeds are
1784included in the numerator and denominator of the sales factor.
1785     (e)  Sales that are not allocated or apportioned to any
1786taxing jurisdiction, otherwise known as "nowhere sales," may not
1787be included in the numerator or denominator of the sales factor.
1788     (f)  The income attributable to the activities in this
1789state of a corporation that is exempt from taxation under Pub.
1790L. No. 86-272 is excluded from the apportionment factor
1791numerators in the calculation of corporate income tax even if
1792another member of the water's edge group has nexus with this
1793state and is subject to tax.
1794     (g)  For purposes of this section, the term "water's edge
1795reporting method" is a method to determine the taxable business
1796profits of a group of entities conducting a unitary business.
1797Under this method, the net income of the entities must be added
1798together along with the additions and subtractions under s.
1799220.13 and apportioned to this state as a single taxpayer under
1800s. 220.15 and 220.151. However, each special industry member
1801included in a water's edge group return, which would otherwise
1802be permitted to use a special method of apportionment under s.
1803220.151, shall convert its single-factor apportionment to a
1804three-factor apportionment of property, payroll, and sales. The
1805special industry member shall calculate the denominator of its
1806property, payroll, and sales factors in the same manner as those
1807denominators are calculated by members that are not a special
1808industry member. The numerator of its sales, property, and
1809payroll factors is the product of the denominator of each factor
1810multiplied by the premiums or revenue-miles-factor ratio
1811otherwise applicable under s. 220.151.
1812     (2)(a)  A single water's edge group return must be filed in
1813the name and federal employer identification number of the
1814parent corporation if the parent is a member of the group and
1815has nexus with this state. If the group does not have a parent
1816corporation, if the parent corporation is not a member of the
1817group, or if the parent corporation does not have nexus with
1818this state, the members of the group must choose a member
1819subject to the Florida corporate income tax to file the return.
1820The members of the group may not choose another member to file a
1821corporate income tax return in subsequent years unless the
1822filing member does not maintain nexus with this state or remain
1823a member of that group. The return must be signed by an
1824authorized officer of the filing member as the agent for the
1825group.
1826     (b)  If members of a water's edge group have different tax
1827years, the tax year of a majority of the members of the group is
1828the tax year of the group. If the tax years of a majority of the
1829members of a group do not correspond, the tax year of the member
1830that must file the return for the group is the tax year of the
1831group.
1832     (c)1.  A member of a water's edge group having a tax year
1833that does not correspond to the tax year of the group shall
1834determine its income for inclusion on the tax return for the
1835group. The member shall use:
1836     a.  The precise amount of taxable income received during
1837the months corresponding to the tax year of the group, if the
1838precise amount can be readily determined from the member's books
1839and records.
1840     b.  The taxable income of the member converted to conform
1841to the tax year of the group on the basis of the number of
1842months falling within the tax year of the group. For example, if
1843the tax year of the water's edge group is a calendar year and a
1844member operates on a fiscal year ending on April 30, the income
1845of the member shall include 8/12 of the income from the current
1846tax year and 4/12 of the income from the preceding tax year.
1847This method to determine the income of a member may be used only
1848if the return can be timely filed after the end of the tax year
1849of the group.
1850     c.  The taxable income of the member during its tax year
1851that ends within the tax year of the group.
1852     2.  The method of determining the income of a member of a
1853group whose tax year does not correspond to the tax year of the
1854group may not change as long as the member remains a member of
1855the group. The apportionment factors for the member must be
1856applied to the income of the member for the tax year of the
1857group.
1858     (3)(a)  A water's edge group return shall include a
1859computational schedule that:
1860     1.  Combines the federal income of all members of the
1861water's edge group;
1862     2.  Shows all intercompany eliminations;
1863     3.  Shows Florida additions and subtractions under s.
1864220.13; and
1865     4.  Shows the calculation of the combined apportionment
1866factors.
1867     (b)  A water's edge group shall also file a domestic
1868disclosure spreadsheet in addition to its return. The
1869spreadsheet shall fully disclose:
1870     1.  The income reported to each state.
1871     2.  The state tax liability.
1872     3.  The method used for apportioning or allocating income
1873to the various states.
1874     4.  Other information required by the department by rule in
1875order to determine the proper amount of tax due to each state
1876and to identify the water's edge group.
1877     (4)  The department may adopt rules and forms to administer
1878this section. The Legislature intends to grant the department
1879extensive authority to adopt rules and forms describing and
1880defining principles for determining the existence of a water's
1881edge business, definitions of common control, methods of
1882reporting, and related forms, principles, and other definitions.
1883     Section 29.  Section 220.14, Florida Statutes, is amended
1884to read:
1885     220.14  Exemption.-
1886     (1)  In computing a taxpayer's liability for tax under this
1887code, there shall be exempt from the tax $5,000 of net income as
1888defined in s. 220.12 or such lesser amount as will, without
1889increasing the taxpayer's federal income tax liability, provide
1890the state with an amount under this code which is equal to the
1891maximum federal income tax credit which may be available from
1892time to time under federal law.
1893     (2)  In the case of a taxable year for a period of less
1894than 12 months, the exemption allowed by this section shall be
1895prorated on the basis of the number of days in such year to 365,
1896or in the case of a leap year, to 366.
1897     (3)  Only one exemption shall be allowed to taxpayers
1898filing a water's edge group a consolidated return under this
1899code.
1900     (4)  Notwithstanding any other provision of this code, not
1901more than one exemption under this section may be allowed to the
1902Florida members of a controlled group of corporations, as
1903defined in s. 1563 of the Internal Revenue Code with respect to
1904taxable years ending on or after December 31, 1970, filing
1905separate returns under this code. The exemption described in
1906this section shall be divided equally among such Florida members
1907of the group, unless all of such members consent, at such time
1908and in such manner as the department shall by regulation
1909prescribe, to an apportionment plan providing for an unequal
1910allocation of such exemption.
1911     Section 30.  Subsection (5) of section 220.15, Florida
1912Statutes, is amended to read:
1913     220.15  Apportionment of adjusted federal income.-
1914     (5)  The sales factor is a fraction the numerator of which
1915is the total sales of the taxpayer in this state during the
1916taxable year or period and the denominator of which is the total
1917sales of the taxpayer everywhere during the taxable year or
1918period.
1919     (a)  As used in this subsection, the term "sales" means all
1920gross receipts of the taxpayer except interest, dividends,
1921rents, royalties, and gross receipts from the sale, exchange,
1922maturity, redemption, or other disposition of securities.
1923However:
1924     1.  Rental income is included in the term if a significant
1925portion of the taxpayer's business consists of leasing or
1926renting real or tangible personal property; and
1927     2.  Royalty income is included in the term if a significant
1928portion of the taxpayer's business consists of dealing in or
1929with the production, exploration, or development of minerals.
1930     (b)1.  Sales of tangible personal property occur in this
1931state if the property is delivered or shipped to a purchaser
1932within this state, regardless of the f.o.b. point, other
1933conditions of the sale, or ultimate destination of the property,
1934unless shipment is made via a common or contract carrier.
1935However, for industries in NAICS National Number 311411, if the
1936ultimate destination of the product is to a location outside
1937this state, regardless of the method of shipment or f.o.b.
1938point, the sale shall not be deemed to occur in this state. As
1939used in this paragraph, "NAICS" means those classifications
1940contained in the North American Industry Classification System,
1941as published in 2007 by the Office of Management and Budget,
1942Executive Office of the President.
1943     2.  When citrus fruit is delivered by a cooperative for a
1944grower-member, by a grower-member to a cooperative, or by a
1945grower-participant to a Florida processor, the sales factor for
1946the growers for such citrus fruit delivered to such processor
1947shall be the same as the sales factor for the most recent
1948taxable year of that processor. That sales factor, expressed
1949only as a percentage and not in terms of the dollar volume of
1950sales, so as to protect the confidentiality of the sales of the
1951processor, shall be furnished on the request of such a grower
1952promptly after it has been determined for that taxable year.
1953     3.  Reimbursement of expenses under an agency contract
1954between a cooperative, a grower-member of a cooperative, or a
1955grower and a processor is not a sale within this state.
1956     (c)  Sales of a financial organization, including, but not
1957limited to, banking and savings institutions, investment
1958companies, real estate investment trusts, and brokerage
1959companies, occur in this state if derived from:
1960     1.  Fees, commissions, or other compensation for financial
1961services rendered within this state;
1962     2.  Gross profits from trading in stocks, bonds, or other
1963securities managed within this state;
1964     3.  Interest received within this state, other than
1965interest from loans secured by mortgages, deeds of trust, or
1966other liens upon real or tangible personal property located
1967without this state, and dividends received within this state;
1968     4.  Interest charged to customers at places of business
1969maintained within this state for carrying debit balances of
1970margin accounts, without deduction of any costs incurred in
1971carrying such accounts;
1972     5.  Interest, fees, commissions, or other charges or gains
1973from loans secured by mortgages, deeds of trust, or other liens
1974upon real or tangible personal property located in this state or
1975from installment sale agreements originally executed by a
1976taxpayer or the taxpayer's agent to sell real or tangible
1977personal property located in this state;
1978     6.  Rents from real or tangible personal property located
1979in this state; or
1980     7.  Any other gross income, including other interest,
1981resulting from the operation as a financial organization within
1982this state.
1983
1984In computing the amounts under this paragraph, any amount
1985received by a member of an affiliated group (determined under s.
19861504(a) of the Internal Revenue Code, but without reference to
1987whether any such corporation is an "includable corporation"
1988under s. 1504(b) of the Internal Revenue Code) from another
1989member of such group shall be included only to the extent such
1990amount exceeds expenses of the recipient directly related
1991thereto.
1992     Section 31.  Subsection (1) of section 220.183, Florida
1993Statutes, is amended to read:
1994     220.183  Community contribution tax credit.-
1995     (1)  AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
1996CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
1997SPENDING.-
1998     (a)  There shall be allowed a credit of 50 percent of a
1999community contribution against any tax due for a taxable year
2000under this chapter.
2001     (b)  No business firm shall receive more than $200,000 in
2002annual tax credits for all approved community contributions made
2003in any one year.
2004     (c)  The total amount of tax credit which may be granted
2005for all programs approved under this section, s. 212.08(5)(p),
2006and s. 624.5105 is $10.5 million annually for projects that
2007provide homeownership opportunities for low-income or very-low-
2008income households as defined in s. 420.9071(19) and (28) and
2009$3.5 million annually for all other projects.
2010     (d)  All proposals for the granting of the tax credit shall
2011require the prior approval of the Office of Tourism, Trade, and
2012Economic Development.
2013     (e)  If the credit granted pursuant to this section is not
2014fully used in any one year because of insufficient tax liability
2015on the part of the business firm, the unused amount may be
2016carried forward for a period not to exceed 5 years. The
2017carryover credit may be used in a subsequent year when the tax
2018imposed by this chapter for such year exceeds the credit for
2019such year under this section after applying the other credits
2020and unused credit carryovers in the order provided in s.
2021220.02(8).
2022     (f)  A taxpayer who files a Florida consolidated return as
2023a member of an affiliated group pursuant to s. 220.131(1) may be
2024allowed the credit on a consolidated return basis.
2025     (f)(g)  A taxpayer who is eligible to receive the credit
2026provided for in s. 624.5105 is not eligible to receive the
2027credit provided by this section.
2028     (g)(h)  Notwithstanding paragraph (c), and for the 2008-
20292009 fiscal year only, the total amount of tax credit which may
2030be granted for all programs approved under this section, s.
2031212.08(5)(p), and s. 624.5105 is $13 million annually for
2032projects that provide homeownership opportunities for low-income
2033or very-low-income households as defined in s. 420.9071(19) and
2034(28) and $3.5 million annually for all other projects. This
2035paragraph expires June 30, 2009.
2036     Section 32.  Subsection (1) of section 220.1845, Florida
2037Statutes, is amended to read:
2038     220.1845  Contaminated site rehabilitation tax credit.-
2039     (1)  AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.-
2040     (a)  A credit in the amount of 50 percent of the costs of
2041voluntary cleanup activity that is integral to site
2042rehabilitation at the following sites is available against any
2043tax due for a taxable year under this chapter:
2044     1.  A drycleaning-solvent-contaminated site eligible for
2045state-funded site rehabilitation under s. 376.3078(3);
2046     2.  A drycleaning-solvent-contaminated site at which site
2047rehabilitation is undertaken by the real property owner pursuant
2048to s. 376.3078(11), if the real property owner is not also, and
2049has never been, the owner or operator of the drycleaning
2050facility where the contamination exists; or
2051     3.  A brownfield site in a designated brownfield area under
2052s. 376.80.
2053     (b)  A tax credit applicant, or multiple tax credit
2054applicants working jointly to clean up a single site, may not be
2055granted more than $500,000 per year in tax credits for each site
2056voluntarily rehabilitated. Multiple tax credit applicants shall
2057be granted tax credits in the same proportion as their
2058contribution to payment of cleanup costs. Subject to the same
2059conditions and limitations as provided in this section, a
2060municipality, county, or other tax credit applicant which
2061voluntarily rehabilitates a site may receive not more than
2062$500,000 per year in tax credits which it can subsequently
2063transfer subject to the provisions in paragraph (f) (g).
2064     (c)  If the credit granted under this section is not fully
2065used in any one year because of insufficient tax liability on
2066the part of the corporation, the unused amount may be carried
2067forward for up to 5 years. The carryover credit may be used in a
2068subsequent year if the tax imposed by this chapter for that year
2069exceeds the credit for which the corporation is eligible in that
2070year after applying the other credits and unused carryovers in
2071the order provided by s. 220.02(8). If during the 5-year period
2072the credit is transferred, in whole or in part, pursuant to
2073paragraph (f) (g), each transferee has 5 years after the date of
2074transfer to use its credit.
2075     (d)  A taxpayer that files a consolidated return in this
2076state as a member of an affiliated group under s. 220.131(1) may
2077be allowed the credit on a consolidated return basis up to the
2078amount of tax imposed upon the consolidated group.
2079     (d)(e)  A tax credit applicant that receives state-funded
2080site rehabilitation under s. 376.3078(3) for rehabilitation of a
2081drycleaning-solvent-contaminated site is ineligible to receive
2082credit under this section for costs incurred by the tax credit
2083applicant in conjunction with the rehabilitation of that site
2084during the same time period that state-administered site
2085rehabilitation was underway.
2086     (e)(f)  The total amount of the tax credits which may be
2087granted under this section is $2 million annually.
2088     (f)(g)1.  Tax credits that may be available under this
2089section to an entity eligible under s. 376.30781 may be
2090transferred after a merger or acquisition to the surviving or
2091acquiring entity and used in the same manner and with the same
2092limitations.
2093     2.  The entity or its surviving or acquiring entity as
2094described in subparagraph 1., may transfer any unused credit in
2095whole or in units of at least 25 percent of the remaining
2096credit. The entity acquiring such credit may use it in the same
2097manner and with the same limitation as described in this
2098section. Such transferred credits may not be transferred again
2099although they may succeed to a surviving or acquiring entity
2100subject to the same conditions and limitations as described in
2101this section.
2102     3.  If the credit is reduced due to a determination by the
2103Department of Environmental Protection or an examination or
2104audit by the Department of Revenue, the tax deficiency shall be
2105recovered from the first entity, or the surviving or acquiring
2106entity that claimed the credit up to the amount of credit taken.
2107Any subsequent deficiencies shall be assessed against the entity
2108acquiring and claiming the credit, or in the case of multiple
2109succeeding entities in the order of credit succession.
2110     (g)(h)  In order to encourage completion of site
2111rehabilitation at contaminated sites being voluntarily cleaned
2112up and eligible for a tax credit under this section, the tax
2113credit applicant may claim an additional 25 percent of the total
2114cleanup costs, not to exceed $500,000, in the final year of
2115cleanup as evidenced by the Department of Environmental
2116Protection issuing a "No Further Action" order for that site.
2117     (h)(i)  In order to encourage the construction of housing
2118that meets the definition of affordable provided in s. 420.0004,
2119an applicant for the tax credit may claim an additional 25
2120percent of the total site rehabilitation costs that are eligible
2121for tax credits under this section, not to exceed $500,000. In
2122order to receive this additional tax credit, the applicant must
2123provide a certification letter from the Florida Housing Finance
2124Corporation, the local housing authority, or other governmental
2125agency that is a party to the use agreement indicating that the
2126construction on the brownfield site has received a certificate
2127of occupancy and the brownfield site has a properly recorded
2128instrument that limits the use of the property to housing that
2129meets the definition of affordable provided in s. 420.0004.
2130     (i)(j)  In order to encourage the redevelopment of a
2131brownfield site, as defined in the brownfield site
2132rehabilitation agreement, that is hindered by the presence of
2133solid waste, as defined in s. 403.703, a tax credit applicant,
2134or multiple tax credit applicants working jointly to clean up a
2135single brownfield site, may also claim costs required to address
2136solid waste removal as defined in this paragraph in accordance
2137with rules of the Department of Environmental Protection.
2138Multiple tax credit applicants shall be granted tax credits in
2139the same proportion as each applicant's contribution to payment
2140of solid waste removal costs. These costs are eligible for a tax
2141credit provided the applicant submits an affidavit stating that,
2142after consultation with appropriate local government officials
2143and the Department of Environmental Protection, to the best of
2144the applicant's knowledge according to such consultation and
2145available historical records, the brownfield site was never
2146operated as a permitted solid waste disposal area or was never
2147operated for monetary compensation and the applicant submits all
2148other documentation and certifications required by this section.
2149Under this section, wherever reference is made to "site
2150rehabilitation," the Department of Environmental Protection
2151shall instead consider whether or not the costs claimed are for
2152solid waste removal. Tax credit applications claiming costs
2153pursuant to this paragraph shall not be subject to the calendar-
2154year limitation and January 31 annual application deadline, and
2155the Department of Environmental Protection shall accept a one-
2156time application filed subsequent to the completion by the tax
2157credit applicant of the applicable requirements listed in this
2158section. A tax credit applicant may claim 50 percent of the cost
2159for solid waste removal, not to exceed $500,000, after the
2160applicant has determined solid waste removal is completed for
2161the brownfield site. A solid waste removal tax credit
2162application may be filed only once per brownfield site. For the
2163purposes of this section, the term:
2164     1.  "Solid waste disposal area" means a landfill, dump, or
2165other area where solid waste has been disposed of.
2166     2.  "Monetary compensation" means the fees that were
2167charged or the assessments that were levied for the disposal of
2168solid waste at a solid waste disposal area.
2169     3.  "Solid waste removal" means removal of solid waste from
2170the land surface or excavation of solid waste from below the
2171land surface and removal of the solid waste from the brownfield
2172site. The term also includes:
2173     a.  Transportation of solid waste to a licensed or exempt
2174solid waste management facility or to a temporary storage area.
2175     b.  Sorting or screening of solid waste prior to removal
2176from the site.
2177     c.  Deposition of solid waste at a permitted or exempt
2178solid waste management facility, whether the solid waste is
2179disposed of or recycled.
2180     (j)(k)  In order to encourage the construction and
2181operation of a new health care facility as defined in s. 408.032
2182or s. 408.07, or a health care provider as defined in s. 408.07
2183or s. 408.7056, on a brownfield site, an applicant for a tax
2184credit may claim an additional 25 percent of the total site
2185rehabilitation costs, not to exceed $500,000, if the applicant
2186meets the requirements of this paragraph. In order to receive
2187this additional tax credit, the applicant must provide
2188documentation indicating that the construction of the health
2189care facility or health care provider by the applicant on the
2190brownfield site has received a certificate of occupancy or a
2191license or certificate has been issued for the operation of the
2192health care facility or health care provider.
2193     Section 33.  Effective January 1, 2011, subsection (1) of
2194section 220.1845, Florida Statutes, as amended by this act, and
2195subsection (3) of that section, are amended to read:
2196     220.1845  Contaminated site rehabilitation tax credit.-
2197     (1)  AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.-
2198     (a)  A credit in the amount of 50 percent of the costs of
2199voluntary cleanup activity that is integral to site
2200rehabilitation at the following sites is available against any
2201tax due for a taxable year under this chapter:
2202     1.  A drycleaning-solvent-contaminated site eligible for
2203state-funded site rehabilitation under s. 376.3078(3);
2204     2.  A drycleaning-solvent-contaminated site at which site
2205rehabilitation is undertaken by the real property owner pursuant
2206to s. 376.3078(11), if the real property owner is not also, and
2207has never been, the owner or operator of the drycleaning
2208facility where the contamination exists; or
2209     3.  A brownfield site in a designated brownfield area under
2210s. 376.80.
2211     (b)  A tax credit applicant, or multiple tax credit
2212applicants working jointly to clean up a single site, may not be
2213granted more than $500,000 per year in tax credits for each site
2214voluntarily rehabilitated. Multiple tax credit applicants shall
2215be granted tax credits in the same proportion as their
2216contribution to payment of cleanup costs. Subject to the same
2217conditions and limitations as provided in this section, a
2218municipality, county, or other tax credit applicant which
2219voluntarily rehabilitates a site may receive not more than
2220$500,000 per year in tax credits which it can subsequently
2221transfer subject to the provisions in paragraph (g) (f).
2222     (c)  If the credit granted under this section is not fully
2223used in any one year because of insufficient tax liability on
2224the part of the corporation, the unused amount may be carried
2225forward for up to 5 years. The carryover credit may be used in a
2226subsequent year if the tax imposed by this chapter for that year
2227exceeds the credit for which the corporation is eligible in that
2228year after applying the other credits and unused carryovers in
2229the order provided by s. 220.02(8). If during the 5-year period
2230the credit is transferred, in whole or in part, pursuant to
2231paragraph (g) (f), each transferee has 5 years after the date of
2232transfer to use its credit.
2233     (d)  A taxpayer that receives credit under s. 199.10555 is
2234ineligible to receive credit under this section in a given tax
2235year.
2236     (e)(d)  A tax credit applicant that receives state-funded
2237site rehabilitation under s. 376.3078(3) for rehabilitation of a
2238drycleaning-solvent-contaminated site is ineligible to receive
2239credit under this section for costs incurred by the tax credit
2240applicant in conjunction with the rehabilitation of that site
2241during the same time period that state-administered site
2242rehabilitation was underway.
2243     (f)(e)  The total amount of the tax credits which may be
2244granted under this section and s. 199.10555 is $2 million
2245annually.
2246     (g)(f)1.  Tax credits that may be available under this
2247section to an entity eligible under s. 376.30781 may be
2248transferred after a merger or acquisition to the surviving or
2249acquiring entity and used in the same manner and with the same
2250limitations.
2251     2.  The entity or its surviving or acquiring entity as
2252described in subparagraph 1., may transfer any unused credit in
2253whole or in units of at least 25 percent of the remaining
2254credit. The entity acquiring such credit may use it in the same
2255manner and with the same limitation as described in this
2256section. Such transferred credits may not be transferred again
2257although they may succeed to a surviving or acquiring entity
2258subject to the same conditions and limitations as described in
2259this section.
2260     3.  If the credit is reduced due to a determination by the
2261Department of Environmental Protection or an examination or
2262audit by the Department of Revenue, the tax deficiency shall be
2263recovered from the first entity, or the surviving or acquiring
2264entity that claimed the credit up to the amount of credit taken.
2265Any subsequent deficiencies shall be assessed against the entity
2266acquiring and claiming the credit, or in the case of multiple
2267succeeding entities in the order of credit succession.
2268     (h)(g)  In order to encourage completion of site
2269rehabilitation at contaminated sites being voluntarily cleaned
2270up and eligible for a tax credit under this section, the tax
2271credit applicant may claim an additional 25 percent of the total
2272cleanup costs, not to exceed $500,000, in the final year of
2273cleanup as evidenced by the Department of Environmental
2274Protection issuing a "No Further Action" order for that site.
2275     (i)(h)  In order to encourage the construction of housing
2276that meets the definition of affordable provided in s. 420.0004,
2277an applicant for the tax credit may claim an additional 25
2278percent of the total site rehabilitation costs that are eligible
2279for tax credits under this section, not to exceed $500,000. In
2280order to receive this additional tax credit, the applicant must
2281provide a certification letter from the Florida Housing Finance
2282Corporation, the local housing authority, or other governmental
2283agency that is a party to the use agreement indicating that the
2284construction on the brownfield site has received a certificate
2285of occupancy and the brownfield site has a properly recorded
2286instrument that limits the use of the property to housing that
2287meets the definition of affordable provided in s. 420.0004.
2288     (j)(i)  In order to encourage the redevelopment of a
2289brownfield site, as defined in the brownfield site
2290rehabilitation agreement, that is hindered by the presence of
2291solid waste, as defined in s. 403.703, a tax credit applicant,
2292or multiple tax credit applicants working jointly to clean up a
2293single brownfield site, may also claim costs required to address
2294solid waste removal as defined in this paragraph in accordance
2295with rules of the Department of Environmental Protection.
2296Multiple tax credit applicants shall be granted tax credits in
2297the same proportion as each applicant's contribution to payment
2298of solid waste removal costs. These costs are eligible for a tax
2299credit provided the applicant submits an affidavit stating that,
2300after consultation with appropriate local government officials
2301and the Department of Environmental Protection, to the best of
2302the applicant's knowledge according to such consultation and
2303available historical records, the brownfield site was never
2304operated as a permitted solid waste disposal area or was never
2305operated for monetary compensation and the applicant submits all
2306other documentation and certifications required by this section.
2307Under this section, wherever reference is made to "site
2308rehabilitation," the Department of Environmental Protection
2309shall instead consider whether or not the costs claimed are for
2310solid waste removal. Tax credit applications claiming costs
2311pursuant to this paragraph shall not be subject to the calendar-
2312year limitation and January 31 annual application deadline, and
2313the Department of Environmental Protection shall accept a one-
2314time application filed subsequent to the completion by the tax
2315credit applicant of the applicable requirements listed in this
2316section. A tax credit applicant may claim 50 percent of the cost
2317for solid waste removal, not to exceed $500,000, after the
2318applicant has determined solid waste removal is completed for
2319the brownfield site. A solid waste removal tax credit
2320application may be filed only once per brownfield site. For the
2321purposes of this section, the term:
2322     1.  "Solid waste disposal area" means a landfill, dump, or
2323other area where solid waste has been disposed of.
2324     2.  "Monetary compensation" means the fees that were
2325charged or the assessments that were levied for the disposal of
2326solid waste at a solid waste disposal area.
2327     3.  "Solid waste removal" means removal of solid waste from
2328the land surface or excavation of solid waste from below the
2329land surface and removal of the solid waste from the brownfield
2330site. The term also includes:
2331     a.  Transportation of solid waste to a licensed or exempt
2332solid waste management facility or to a temporary storage area.
2333     b.  Sorting or screening of solid waste prior to removal
2334from the site.
2335     c.  Deposition of solid waste at a permitted or exempt
2336solid waste management facility, whether the solid waste is
2337disposed of or recycled.
2338     (k)(j)  In order to encourage the construction and
2339operation of a new health care facility as defined in s. 408.032
2340or s. 408.07, or a health care provider as defined in s. 408.07
2341or s. 408.7056, on a brownfield site, an applicant for a tax
2342credit may claim an additional 25 percent of the total site
2343rehabilitation costs, not to exceed $500,000, if the applicant
2344meets the requirements of this paragraph. In order to receive
2345this additional tax credit, the applicant must provide
2346documentation indicating that the construction of the health
2347care facility or health care provider by the applicant on the
2348brownfield site has received a certificate of occupancy or a
2349license or certificate has been issued for the operation of the
2350health care facility or health care provider.
2351     (3)  ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT
2352FORFEITURE.-
2353     (a)  The Department of Revenue may adopt rules to prescribe
2354any necessary forms required to claim a tax credit under this
2355section and to provide the administrative guidelines and
2356procedures required to administer this section.
2357     (b)  In addition to its existing audit and investigation
2358authority relating to chapter 199 and this chapter, the
2359Department of Revenue may perform any additional financial and
2360technical audits and investigations, including examining the
2361accounts, books, or records of the tax credit applicant, which
2362are necessary to verify the site rehabilitation costs included
2363in a tax credit return and to ensure compliance with this
2364section. The Department of Environmental Protection shall
2365provide technical assistance, when requested by the Department
2366of Revenue, on any technical audits performed pursuant to this
2367section.
2368     (c)  It is grounds for forfeiture of previously claimed and
2369received tax credits if the Department of Revenue determines, as
2370a result of either an audit or information received from the
2371Department of Environmental Protection, that a taxpayer received
2372tax credits pursuant to this section to which the taxpayer was
2373not entitled. In the case of fraud, the taxpayer shall be
2374prohibited from claiming any future tax credits under this
2375section or s. 199.10555.
2376     1.  The taxpayer is responsible for returning forfeited tax
2377credits to the Department of Revenue, and such funds shall be
2378paid into the General Revenue Fund of the state.
2379     2.  The taxpayer shall file with the Department of Revenue
2380an amended tax return or such other report as the Department of
2381Revenue prescribes by rule and shall pay any required tax within
238260 days after the taxpayer receives notification from the
2383Department of Environmental Protection pursuant to s. 376.30781
2384that previously approved tax credits have been revoked or
2385modified, if uncontested, or within 60 days after a final order
2386is issued following proceedings involving a contested revocation
2387or modification order.
2388     3.  A notice of deficiency may be issued by the Department
2389of Revenue at any time within 5 years after the date the
2390taxpayer receives notification from the Department of
2391Environmental Protection pursuant to s. 376.30781 that
2392previously approved tax credits have been revoked or modified.
2393If a taxpayer fails to notify the Department of Revenue of any
2394change in its tax credit claimed, a notice of deficiency may be
2395issued at any time. In either case, the amount of any proposed
2396assessment set forth in such notice of deficiency shall be
2397limited to the amount of any deficiency resulting under this
2398section from the recomputation of the taxpayer's tax for the
2399taxable year.
2400     4.  Any taxpayer that fails to report and timely pay any
2401tax due as a result of the forfeiture of its tax credit is in
2402violation of this section and is subject to applicable penalty
2403and interest.
2404     Section 34.  Subsection (5) of section 220.187, Florida
2405Statutes, is amended to read:
2406     220.187  Credits for contributions to nonprofit
2407scholarship-funding organizations.-
2408     (5)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
2409CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.-
2410     (a)  There is allowed a credit of 100 percent of an
2411eligible contribution against any tax due for a taxable year
2412under this chapter. However, such a credit may not exceed 75
2413percent of the tax due under this chapter for the taxable year,
2414after the application of any other allowable credits by the
2415taxpayer. The credit granted by this section shall be reduced by
2416the difference between the amount of federal corporate income
2417tax taking into account the credit granted by this section and
2418the amount of federal corporate income tax without application
2419of the credit granted by this section.
2420     (b)  For each state fiscal year, the total amount of tax
2421credits and carryforward of tax credits which may be granted
2422under this section and s. 624.51055 is $118 million.
2423     (c)  A taxpayer who files a Florida consolidated return as
2424a member of an affiliated group pursuant to s. 220.131(1) may be
2425allowed the credit on a consolidated return basis; however, the
2426total credit taken by the affiliated group is subject to the
2427limitation established under paragraph (a).
2428     (c)(d)  Effective for tax years beginning January 1, 2006,
2429a taxpayer may rescind all or part of its allocated tax credit
2430under this section. The amount rescinded shall become available
2431for purposes of the cap for that state fiscal year under this
2432section to an eligible taxpayer as approved by the department if
2433the taxpayer receives notice from the department that the
2434rescindment has been accepted by the department and the taxpayer
2435has not previously rescinded any or all of its tax credit
2436allocation under this section more than once in the previous 3
2437tax years. Any amount rescinded under this paragraph shall
2438become available to an eligible taxpayer on a first-come, first-
2439served basis based on tax credit applications received after the
2440date the rescindment is accepted by the department.
2441     (d)(e)  A taxpayer who is eligible to receive the credit
2442provided for in s. 624.51055 is not eligible to receive the
2443credit provided by this section.
2444     Section 35.  Subsection (3) of section 220.191, Florida
2445Statutes, is amended to read:
2446     220.191  Capital investment tax credit.-
2447     (3)(a)  Notwithstanding subsection (2), an annual credit
2448against the tax imposed by this chapter shall be granted to a
2449qualifying business which establishes a qualifying project
2450pursuant to subparagraph (1)(h)3., in an amount equal to the
2451lesser of $15 million or 5 percent of the eligible capital costs
2452made in connection with a qualifying project, for a period not
2453to exceed 20 years beginning with the commencement of operations
2454of the project. The tax credit shall be granted against the
2455corporate income tax liability of the qualifying business and as
2456further provided in paragraph (c). The total tax credit provided
2457pursuant to this subsection shall be equal to no more than 100
2458percent of the eligible capital costs of the qualifying project.
2459     (b)  If the credit granted under this subsection is not
2460fully used in any one year because of insufficient tax liability
2461on the part of the qualifying business, the unused amount may be
2462carried forward for a period not to exceed 20 years after the
2463commencement of operations of the project. The carryover credit
2464may be used in a subsequent year when the tax imposed by this
2465chapter for that year exceeds the credit for which the
2466qualifying business is eligible in that year under this
2467subsection after applying the other credits and unused
2468carryovers in the order provided by s. 220.02(8).
2469     (c)  The credit granted under this subsection may be used
2470in whole or in part by the qualifying business or any
2471corporation that is either a member of that qualifying
2472business's affiliated group of corporations, is a related entity
2473taxable as a cooperative under subchapter T of the Internal
2474Revenue Code, or, if the qualifying business is an entity
2475taxable as a cooperative under subchapter T of the Internal
2476Revenue Code, is related to the qualifying business. Any entity
2477related to the qualifying business may continue to file as a
2478member of a Florida-nexus consolidated group pursuant to a prior
2479election made under s. 220.131(1), Florida Statutes (1985), even
2480if the parent of the group changes due to a direct or indirect
2481acquisition of the former common parent of the group. Any credit
2482can be used by any of the affiliated companies or related
2483entities referenced in this paragraph to the same extent as it
2484could have been used by the qualifying business. However, any
2485such use shall not operate to increase the amount of the credit
2486or extend the period within which the credit must be used.
2487     Section 36.  Subsection (2) of section 220.192, Florida
2488Statutes, is amended to read:
2489     220.192  Renewable energy technologies investment tax
2490credit.-
2491     (2)  TAX CREDIT.-For tax years beginning on or after
2492January 1, 2007, a credit against the tax imposed by this
2493chapter shall be granted in an amount equal to the eligible
2494costs. Credits may be used in tax years beginning January 1,
24952007, and ending December 31, 2010, after which the credit shall
2496expire. If the credit is not fully used in any one tax year
2497because of insufficient tax liability on the part of the
2498corporation, the unused amount may be carried forward and used
2499in tax years beginning January 1, 2007, and ending December 31,
25002012, after which the credit carryover expires and may not be
2501used. A taxpayer that files a consolidated return in this state
2502as a member of an affiliated group under s. 220.131(1) may be
2503allowed the credit on a consolidated return basis up to the
2504amount of tax imposed upon the consolidated group. Any eligible
2505cost for which a credit is claimed and which is deducted or
2506otherwise reduces federal taxable income shall be added back in
2507computing adjusted federal income under s. 220.13.
2508     Section 37.  Subsection (3) of section 220.193, Florida
2509Statutes, is amended to read:
2510     220.193  Florida renewable energy production credit.-
2511     (3)  An annual credit against the tax imposed by this
2512section shall be allowed to a taxpayer, based on the taxpayer's
2513production and sale of electricity from a new or expanded
2514Florida renewable energy facility. For a new facility, the
2515credit shall be based on the taxpayer's sale of the facility's
2516entire electrical production. For an expanded facility, the
2517credit shall be based on the increases in the facility's
2518electrical production that are achieved after May 1, 2006.
2519     (a)  The credit shall be $0.01 for each kilowatt-hour of
2520electricity produced and sold by the taxpayer to an unrelated
2521party during a given tax year.
2522     (b)  The credit may be claimed for electricity produced and
2523sold on or after January 1, 2007. Beginning in 2008 and
2524continuing until 2011, each taxpayer claiming a credit under
2525this section must first apply to the department by February 1 of
2526each year for an allocation of available credit. The department,
2527in consultation with the commission, shall develop an
2528application form. The application form shall, at a minimum,
2529require a sworn affidavit from each taxpayer certifying the
2530increase in production and sales that form the basis of the
2531application and certifying that all information contained in the
2532application is true and correct.
2533     (c)  If the amount of credits applied for each year exceeds
2534$5 million, the department shall award to each applicant a
2535prorated amount based on each applicant's increased production
2536and sales and the increased production and sales of all
2537applicants.
2538     (d)  If the credit granted pursuant to this section is not
2539fully used in one year because of insufficient tax liability on
2540the part of the taxpayer, the unused amount may be carried
2541forward for a period not to exceed 5 years. The carryover credit
2542may be used in a subsequent year when the tax imposed by this
2543chapter for such year exceeds the credit for such year, after
2544applying the other credits and unused credit carryovers in the
2545order provided in s. 220.02(8).
2546     (e)  A taxpayer that files a consolidated return in this
2547state as a member of an affiliated group under s. 220.131(1) may
2548be allowed the credit on a consolidated return basis up to the
2549amount of tax imposed upon the consolidated group.
2550     (e)(f)1.  Tax credits that may be available under this
2551section to an entity eligible under this section may be
2552transferred after a merger or acquisition to the surviving or
2553acquiring entity and used in the same manner with the same
2554limitations.
2555     2.  The entity or its surviving or acquiring entity as
2556described in subparagraph 1. may transfer any unused credit in
2557whole or in units of no less than 25 percent of the remaining
2558credit. The entity acquiring such credit may use it in the same
2559manner and with the same limitations under this section. Such
2560transferred credits may not be transferred again although they
2561may succeed to a surviving or acquiring entity subject to the
2562same conditions and limitations as described in this section.
2563     3.  In the event the credit provided for under this section
2564is reduced as a result of an examination or audit by the
2565department, such tax deficiency shall be recovered from the
2566first entity or the surviving or acquiring entity to have
2567claimed such credit up to the amount of credit taken. Any
2568subsequent deficiencies shall be assessed against any entity
2569acquiring and claiming such credit, or in the case of multiple
2570succeeding entities in the order of credit succession.
2571     (f)(g)  Notwithstanding any other provision of this
2572section, credits for the production and sale of electricity from
2573a new or expanded Florida renewable energy facility may be
2574earned between January 1, 2007, and June 30, 2010. The combined
2575total amount of tax credits which may be granted for all
2576taxpayers under this section is limited to $5 million per state
2577fiscal year.
2578     (g)(h)  A taxpayer claiming a credit under this section
2579shall be required to add back to net income that portion of its
2580business deductions claimed on its federal return paid or
2581incurred for the taxable year which is equal to the amount of
2582the credit allowable for the taxable year under this section.
2583     (h)(i)  A taxpayer claiming credit under this section may
2584not claim a credit under s. 220.192. A taxpayer claiming credit
2585under s. 220.192 may not claim a credit under this section.
2586     (i)(j)  When an entity treated as a partnership or a
2587disregarded entity under this chapter produces and sells
2588electricity from a new or expanded renewable energy facility,
2589the credit earned by such entity shall pass through in the same
2590manner as items of income and expense pass through for federal
2591income tax purposes. When an entity applies for the credit and
2592the entity has received the credit by a pass-through, the
2593application must identify the taxpayer that passed the credit
2594through, all taxpayers that received the credit, and the
2595percentage of the credit that passes through to each recipient
2596and must provide other information that the department requires.
2597     (j)(k)  A taxpayer's use of the credit granted pursuant to
2598this section does not reduce the amount of any credit available
2599to such taxpayer under s. 220.186.
2600     Section 38.  Section 220.51, Florida Statutes, is amended
2601to read:
2602     220.51  Promulgation of rules and regulations.-In
2603accordance with the Administrative Procedure Act, chapter 120,
2604the department is authorized to make, promulgate, and enforce
2605such reasonable rules and regulations, and to prescribe such
2606forms relating to the administration and enforcement of the
2607provisions of this code, as it may deem appropriate, including:
2608     (1)  Rules for initial implementation of this code and for
2609taxpayers' transitional taxable years commencing before and
2610ending after January 1, 1972; and
2611     (2)  Rules or regulations to clarify whether certain
2612groups, organizations, or associations formed under the laws of
2613this state or any other state, country, or jurisdiction shall be
2614deemed "taxpayers" for the purposes of this code, in accordance
2615with the legislative declarations of intent in s. 220.02.; and
2616     (3)  Regulations relating to consolidated reporting for
2617affiliated groups of corporations, in order to provide for an
2618equitable and just administration of this code with respect to
2619multicorporate taxpayers.
2620     Section 39.  Section 220.64, Florida Statutes, is amended
2621to read:
2622     220.64  Other provisions applicable to franchise tax.-To
2623the extent that they are not manifestly incompatible with the
2624provisions of this part, parts I, III, IV, V, VI, VIII, IX, and
2625X of this code and ss. 220.12, 220.13, 220.136, 220.1363,
2626220.15, and 220.16 ss. 220.12, 220.13, 220.15, and 220.16 apply
2627to the franchise tax imposed by this part. Under rules
2628prescribed in s. 220.131, a consolidated return may be filed by
2629any affiliated group of corporations composed of one or more
2630banks or savings associations, its or their Florida parent
2631corporation, and any nonbank or nonsavings subsidiaries of such
2632parent corporation.
2633     Section 40.  Subsections (9) and (10) of section 376.30781,
2634Florida Statutes, are amended to read:
2635     376.30781  Tax credits for rehabilitation of drycleaning-
2636solvent-contaminated sites and brownfield sites in designated
2637brownfield areas; application process; rulemaking authority;
2638revocation authority.-
2639     (9)  On or before May 1, the Department of Environmental
2640Protection shall inform each tax credit applicant that is
2641subject to the January 31 annual application deadline of the
2642applicant's eligibility status and the amount of any tax credit
2643due. The department shall provide each eligible tax credit
2644applicant with a tax credit certificate that must be submitted
2645with its tax return to the Department of Revenue to claim the
2646tax credit or be transferred pursuant to s. 220.1845(1)(f)(g).
2647The May 1 deadline for annual site rehabilitation tax credit
2648certificate awards shall not apply to any tax credit application
2649for which the department has issued a notice of deficiency
2650pursuant to subsection (8). The department shall respond within
265190 days after receiving a response from the tax credit applicant
2652to such a notice of deficiency. Credits may not result in the
2653payment of refunds if total credits exceed the amount of tax
2654owed.
2655     (10)  For solid waste removal, new health care facility or
2656health care provider, and affordable housing tax credit
2657applications, the Department of Environmental Protection shall
2658inform the applicant of the department's determination within 90
2659days after the application is deemed complete. Each eligible tax
2660credit applicant shall be informed of the amount of its tax
2661credit and provided with a tax credit certificate that must be
2662submitted with its tax return to the Department of Revenue to
2663claim the tax credit or be transferred pursuant to s.
2664220.1845(1)(f)(g). Credits may not result in the payment of
2665refunds if total credits exceed the amount of tax owed.
2666     Section 41.  Effective January 1, 2011, paragraph (a) of
2667subsection (3), subsection (4), and paragraph (a) of subsection
2668(14) of section 376.30781, Florida Statutes, are amended, and
2669subsections (9) and (10) of that section, as amended by this
2670act, are amended, to read:
2671     376.30781  Tax credits for rehabilitation of drycleaning-
2672solvent-contaminated sites and brownfield sites in designated
2673brownfield areas; application process; rulemaking authority;
2674revocation authority.-
2675     (3)(a)  A credit in the amount of 50 percent of the costs
2676of voluntary cleanup activity that is integral to site
2677rehabilitation at the following sites is allowed pursuant to ss.
2678199.10555 and s. 220.1845:
2679     1.  A drycleaning-solvent-contaminated site eligible for
2680state-funded site rehabilitation under s. 376.3078(3);
2681     2.  A drycleaning-solvent-contaminated site at which site
2682rehabilitation is undertaken by the real property owner pursuant
2683to s. 376.3078(11), if the real property owner is not also, and
2684has never been, the owner or operator of the drycleaning
2685facility where the contamination exists; or
2686     3.  A brownfield site in a designated brownfield area under
2687s. 376.80.
2688     (4)  The Department of Environmental Protection is
2689responsible for allocating the tax credits provided for in ss.
2690199.10555 and s. 220.1845, which may not exceed a total of $2
2691million in tax credits annually.
2692     (9)  On or before May 1, the Department of Environmental
2693Protection shall inform each tax credit applicant that is
2694subject to the January 31 annual application deadline of the
2695applicant's eligibility status and the amount of any tax credit
2696due. The department shall provide each eligible tax credit
2697applicant with a tax credit certificate that must be submitted
2698with its tax return to the Department of Revenue to claim the
2699tax credit or be transferred pursuant to s. 199.10555(1)(g) or
2700s. 220.1845(1)(g)(f). The May 1 deadline for annual site
2701rehabilitation tax credit certificate awards shall not apply to
2702any tax credit application for which the department has issued a
2703notice of deficiency pursuant to subsection (8). The department
2704shall respond within 90 days after receiving a response from the
2705tax credit applicant to such a notice of deficiency. Credits may
2706not result in the payment of refunds if total credits exceed the
2707amount of tax owed.
2708     (10)  For solid waste removal, new health care facility or
2709health care provider, and affordable housing tax credit
2710applications, the Department of Environmental Protection shall
2711inform the applicant of the department's determination within 90
2712days after the application is deemed complete. Each eligible tax
2713credit applicant shall be informed of the amount of its tax
2714credit and provided with a tax credit certificate that must be
2715submitted with its tax return to the Department of Revenue to
2716claim the tax credit or be transferred pursuant to s.
2717199.10555(1)(g) or s. 220.1845(1)(g)(f). Credits may not result
2718in the payment of refunds if total credits exceed the amount of
2719tax owed.
2720     (14)(a)  A tax credit applicant who receives state-funded
2721site rehabilitation under s. 376.3078(3) for rehabilitation of a
2722drycleaning-solvent-contaminated site is ineligible to receive a
2723tax credit under s. 199.10555 or s. 220.1845 for costs incurred
2724by the tax credit applicant in conjunction with the
2725rehabilitation of that site during the same time period that
2726state-administered site rehabilitation was underway.
2727     Section 42.  Transitional rules.-
2728     (1)  For the first tax year beginning on or after January
27291, 2011, a taxpayer that filed a Florida corporate income tax
2730return in the preceding tax year and is a member of a water's
2731edge group shall compute its income together with all members of
2732its water's edge group and file a combined Florida corporate
2733income tax return with all members of its water's edge group.
2734     (2)  An affiliated group of corporations that filed a
2735Florida consolidated corporate income tax return pursuant to an
2736election provided in s. 220.131, Florida Statutes, shall cease
2737filing a Florida consolidated return for tax years beginning on
2738or after January 1, 2011, and shall file a combined Florida
2739corporate income tax return with all members of its water's edge
2740group.
2741     (3)  An affiliated group of corporations that filed a
2742Florida consolidated corporate income tax return pursuant to the
2743election in s. 220.131(1), Florida Statutes (1985), which
2744allowed the affiliated group to make an election within 90 days
2745after December 20, 1984, or upon filing the taxpayer's first
2746return after December 20, 1984, whichever is later, shall cease
2747filing a Florida consolidated corporate income tax return using
2748that method for tax years beginning on or after January 1, 2011,
2749and shall file a combined Florida corporate income tax return
2750with all members of its water's edge group.
2751     (4)  Taxpayers that are not members of a water's edge group
2752remain subject to chapter 220, Florida Statutes, and shall file
2753a separate Florida corporate income tax return as previously
2754required.
2755     (5)  For the tax years beginning on or after January 1,
27562011, a tax return for a member of a water's edge group must be
2757a combined Florida corporate income tax return that includes tax
2758information for all members of the water's edge group. The tax
2759return must be filed by a member that has a nexus with this
2760state.
2761     Section 43.  Of the funds recaptured pursuant to this act,
2762the sum of $50 million is appropriated from the General Revenue
2763Fund to the State University System for workforce education, to
2764be allocated by the Board of Governors; the sum of $50 million
2765is appropriated from the General Revenue Fund to community
2766colleges for workforce education, to be allocated by the State
2767Board of Education; and the remainder of such funds, as
2768determined by the Revenue Estimating Conference, shall be
2769appropriated from the General Revenue Fund and allocated as
2770provided in the General Appropriations Act to the various school
2771districts to reduce the required local effort millage.
2772     Section 44.  Section 220.131, Florida Statutes, is
2773repealed.
2774     Section 45.  (1)  The funds provided from the
2775implementation of this act shall be deposited annually into the
2776Educational Enhancement Trust Fund and appropriated from the
2777fund as follows:
2778     (a)  Twenty-five percent to the Board of Governors of the
2779State University System for allocation to state universities.
2780     (b)  Twenty-five percent to the Department of Education for
2781allocation to community colleges.
2782     (c)  Twenty-five percent to the Department of Education for
2783allocation to school districts for K-12 education.
2784     (d)  Twenty-five percent to the Agency for Workforce
2785Innovation for allocation to early learning coalitions under the
2786Voluntary Prekindergarten Education Program.
2787     (2)  It is the intent of the Legislature that the revenue
2788generated from collections derived from the Millionaire's Tax
2789Act shall be used specifically for enhancements to higher
2790education, K-12 education, and prekindergarten education in this
2791state and shall not supplant any general revenue appropriations
2792for such higher education, K-12 education, and prekindergarten
2793education.
2794     (3)  Each entity allocated funds pursuant to this section
2795shall determine how best to expend the additional enhancement
2796funds appropriated to such entity pursuant to this section.
2797     Section 46.  Except as otherwise expressly provided in this
2798act, this act shall take effect July 1, 2010.


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