Florida Senate - 2021 SB 7082 By the Committee on Finance and Tax 593-04157-21 20217082__ Page 1 of 5 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to the corporate income tax; amending 2 s. 220.03, F.S.; adopting the 2021 version of the 3 Internal Revenue Code and other federal statutes 4 relating to federal income taxes for purposes of the 5 state corporate income tax code; providing for 6 retroactive operation; amending s. 220.13, F.S.; 7 requiring the addition to adjusted federal income of 8 certain amounts of business interest expense 9 deductible in certain taxable years; providing an 10 effective date. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14

Section 1. Paragraph (

n) of subsection (1) and paragraph 15 (

c) of subsection (2) of

section 220.03, Florida Statutes, are 16 amended to read: 17 220.03

Definitions.— 18

(1) SPECIFIC TERMS.—When used in this code, and when not 19 otherwise distinctly expressed or manifestly incompatible with 20 the intent thereof, the following terms shall have the following 21 meanings: 22 (n) “Internal Revenue Code” means the United States 23 Internal Revenue Code of 1986, as amended and in effect on 24 January 1, 2021 2020, except as provided in subsection (3). 25

(2) DEFINITIONAL RULES.—When used in this code and neither 26 otherwise distinctly expressed nor manifestly incompatible with 27 the intent thereof: 28 (

c) Any term used in this code has the same meaning as when 29

Florida Senate - 2021 SB 7082 593-04157-21 20217082__ Page 2 of 5 CODING: Words stricken are deletions; words underlined are additions. used in a comparable context in the Internal Revenue Code and 30 other statutes of the United States relating to federal income 31 taxes, as such code and statutes are in effect on January 1, 32 2021 2020. However, if subsection (3) is implemented, the 33 meaning of a term shall be taken at the time the term is applied 34 under this code. 35

Section 2. The amendment to s. 220.03, Florida Statutes, 36 made by this act operates retroactively to January 1, 2021. 37

Section 3. Paragraph (

e) of subsection (1) of

section 38 220.13, Florida Statutes, is amended to read: 39 220.13 “Adjusted federal income” defined.— 40

(1) The term “adjusted federal income” means an amount 41 equal to the taxpayer’s taxable income as defined in subsection 42 (2), or such taxable income of more than one taxpayer as 43 provided in s. 220.131, for the taxable year, adjusted as 44 follows: 45 (

e) Adjustments related to federal acts.—Taxpayers shall be 46 required to make the adjustments prescribed in this paragraph 47 for Florida tax purposes with respect to certain tax benefits 48 received pursuant to the Economic Stimulus Act of 2008, the 49 American Recovery and Reinvestment Act of 2009, the Small 50 Business Jobs Act of 2010, the Tax Relief, Unemployment 51 Insurance Reauthorization, and Job Creation Act of 2010, the 52 American Taxpayer Relief Act of 2012, the Tax Increase 53 Prevention Act of 2014, the Consolidated Appropriations Act, 54 2016, and the Tax Cuts and Jobs Act of 2017, and the Coronavirus 55 Aid, Relief, and Economic Security Act of 2020. 56 1.

There shall be added to such taxable income an amount 57 equal to 100 percent of any amount deducted for federal income 58

Florida Senate - 2021 SB 7082 593-04157-21 20217082__ Page 3 of 5 CODING: Words stricken are deletions; words underlined are additions. tax purposes as bonus depreciation for the taxable year pursuant 59 to ss. 167 and 168(

k) of the Internal Revenue Code of 1986, as 60 amended by s. 103 of Pub. L. No. 110-185, s. 1201 of Pub. L. No. 61 111-5, s. 2022 of Pub. L. No. 111-240, s. 401 of Pub. L. No. 62 111-312, s. 331 of Pub. L. No. 112-240, s. 125 of Pub. L. No. 63 113-295, s. 143 of Division Q of Pub. L. No. 114-113, and s. 64 13201 of Pub. L. No. 115-97, for property placed in service 65 after December 31, 2007, and before January 1, 2027.

For the 66 taxable year and for each of the 6 subsequent taxable years, 67 there shall be subtracted from such taxable income an amount 68 equal to one-seventh of the amount by which taxable income was 69 increased pursuant to this subparagraph, notwithstanding any 70 sale or other disposition of the property that is the subject of 71 the adjustments and regardless of whether such property remains 72 in service in the hands of the taxpayer. 73 2.

There shall be added to such taxable income an amount 74 equal to 100 percent of any amount in excess of $128,000 75 deducted for federal income tax purposes for the taxable year 76 pursuant to s. 179 of the Internal Revenue Code of 1986, as 77 amended by s. 102 of Pub. L. No. 110-185, s. 1202 of Pub. L. No. 78 111-5, s. 2021 of Pub. L. No. 111-240, s. 402 of Pub. L. No. 79 111-312, s. 315 of Pub. L. No. 112-240, and s. 127 of Pub. L. 80 No. 113-295, for taxable years beginning after December 31, 81 2007, and before January 1, 2015.

For the taxable year and for 82 each of the 6 subsequent taxable years, there shall be 83 subtracted from such taxable income one-seventh of the amount by 84 which taxable income was increased pursuant to this 85 subparagraph, notwithstanding any sale or other disposition of 86 the property that is the subject of the adjustments and 87

Florida Senate - 2021 SB 7082 593-04157-21 20217082__ Page 4 of 5 CODING: Words stricken are deletions; words underlined are additions. regardless of whether such property remains in service in the 88 hands of the taxpayer. 89 3. There shall be added to such taxable income an amount 90 equal to the amount of deferred income not included in such 91 taxable income pursuant to s. 108(i)(1) of the Internal Revenue 92 Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5.

There 93 shall be subtracted from such taxable income an amount equal to 94 the amount of deferred income included in such taxable income 95 pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986, 96 as amended by s. 1231 of Pub. L. No. 111-5. 97 4. For taxable years beginning after December 31, 2018, and 98 before January 1, 2021, there shall be added to such taxable 99 income an amount equal to the excess, if any, of: 100 a. One hundred percent of any amount deducted for federal 101 income tax purposes as business interest expense for the taxable 102 year pursuant to s. 163(

j) of the Internal Revenue Code of 1986, 103 as amended by s. 2306 of Pub. L. No. 116-136; over 104 b. One hundred percent of the amount that would be 105 deductible for federal income tax purposes as business interest 106 expense for the taxable year if calculated pursuant to s. 163(j) 107 of the Internal Revenue Code of 1986, as amended by s. 13301 of 108 Pub. L. No. 115-97. 109 5.

Subtractions available under this paragraph may be 110 transferred to the surviving or acquiring entity following a 111 merger or acquisition and used in the same manner and with the 112 same limitations as specified by this paragraph. 113 6.5. The additions and subtractions specified in this 114 paragraph are intended to adjust taxable income for Florida tax 115 purposes, and, notwithstanding any other provision of this code, 116

Florida Senate - 2021 SB 7082 593-04157-21 20217082__ Page 5 of 5 CODING: Words stricken are deletions; words underlined are additions. such additions and subtractions shall be permitted to change a 117 taxpayer’s net operating loss for Florida tax purposes. 118

Section 4. This act shall take effect upon becoming a law. 119