•Note.- 609; 220 220.01 Short 96- 1220.03 Definitions.- · 2017. 10. 1. · States Internal...

s. 218.65 1996 SUPPLEMENT TO FLORIDA STATUTES 1995 s. 220.03

>Note.-Redesignated ass. 212.20(6)(1)4. to conform to the repeal of former para· graph (6)(c) by s. 23, ch. 96-397.

•Note.-The Departmen.t of Health and Rehabilitative Services was redesignated as the Department of Children and Family Services bys. 5, ch. 96-403, and the Department of Health was created by s. 8, ch. 96-403.

CHAPTER 220

INCOME TAX CODE

PARTI

TITLE; DECLARATIONS OF INTENT; DEFINITIONS

220.01 Short title. 220.03 Definitions.

220.01 Short title.-[Repealed by s. 35, ch. 96-397.]

1220.03 Definitions.-(1) SPECIFIC TERMS.-When used in this code

and when not otherwise distinctly expressed or mani~ festly incompatible with the intent thereof, the following terms shall have the following meanings:

(a) "Ad valorem taxes paid" means 96 percent of property taxes levied for operating purposes and does not include interest, penalties, or discounts foregone. In addition, the term "ad valorem taxes paid,' for purposes of the credit in s. 220.182, means the ad valorem tax paid on new or additional real or personal property acquired to establish a new business or facilitate a business expansion, including pollution and waste control facilities, or any part thereof, and including one or more buildings or other structures, machinery, fixtures, and equipment. The provisions of this paragraph shall expire and be void on June 30, 2005.

(b) "Affiliated group of corporations" means two or more corporations which constitute an affiliated group of corporations as defined in s. 1504(a) of the Internal Revenue Code.

(c) "Business· or "business firm" means any business entity authorized to do business in this state as defined in paragraph (e), and any bank or savings and loan association as defined ins. 220.62, subject to the tax imposed by the provisions of this chapter. The provisions of this paragraph shall expire and be void on June 30, 2005.

(~) "Community contribution" means the grant by a business firm of any of the following items:

1. Cash or other liquid assets. 2. Real property. 3. Goods or inventory. 4. Other physical resources as identified by the

department.

The provisions of this paragraph shall expire and be void on June 30, 2005.

(e) "Corporation" includes all domestic corporations; foreign corporations qualified to do business in this state

or actually doing business in this state; joint-stock companies; limited liability companies, under chapter 608; common-law declarations of trust, under chapter 609; corporations not for profit, under chapter 617; agricultural cooperative marketing associations, under chapter 618; professional service corporations, under chapter 621; foreign unincorporated associations, under chapter 622; private school corporations, under chapter 623; foreign corporations not for profit which are carrying on their activities in this state; and all other organizations, associations, legal entities, and artificial persons which are created by or pursuant to the statutes of this state, the United States, or any other state, territory, possession, or jurisdiction. The term "corporation" does not include p~oprietorships, even if using a fictitious name; partnerships of any type, as such; state or public fairs or expositions, under chapter 616; estates of decedents or incompetents; testamentary trusts; or private trusts.

(f) "Department" means the Department of Revenue of this state.

(g) "Director" means the executive director of the Department of Revenue and, when there has been an appropriate delegation of authority, the executive director's delegate.

(h) "Earned; "accrued," "paid," or "incurred" shall be construed according to the method of accounting upon the basis of which a taxpayer's income is computed under this code.

(i) "Emergency," as used in s. 220.02 and in paragraph (u) of this subsection, means occurrence of widespread or severe damage, injury, or loss of life or property proclaimed pursuant to s. 14.022 or declared pursuant to s. 252.36. The provisions of this paragraph shall expire and be void on June 30, 2005.

(j) "Enterprise zone" means an area in the state designated pursuant to s. 290.0065. The provisions of this paragraph shall expire and be void on June 30, 2005.

(k)1. "Expansion of an existing business; for the purposes of the gasohol development tax incentive credit, refers to capital investment in a productive business operation, not defined as a new business, which results in a net increase in the amount of real or tangible personal property owned by it or, in the case of government-owned real property, leased by it, for the purpose of engaging in the distillation of ethyl alcohol for use in motor fuels or in the manufacture of equipment for the processing and distillation of ethyl alcohol for use in motor fuels.

2. "Expansion of an existing business," for the pur-poses of the enterprise zone property tax credit, means any business entity authorized to do business in this state as defined in paragraph (e), and any bank or savings and loan association as defined in s. 220.62, subject to th~ tax imposed by the provisions of this chapter, located in an enterprise zone, which expands by or through additions to real and personal property and which establishes five or more new jobs to employ five or more additional full-time employees at such location. The provisions of this subparagraph shall expire and be void on June 30, 2005.

590


(I) "Fiscal year" means an accounting period of 12 months or less ending on the last day of any month other than December or, in the case of a taxpayer with an annual accounting period of 52-53 weeks under s. 441 (f) of the Internal Revenue Code, the period determined under that subsection.

(m) "Includes" or "including," when used in a definition contained in this code, shall not be deemed to exclude other things otherwise within the meaning of the term defined.

(n) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended and in effect on January 1, 1996, except as provided in subsection (3).

(o) "Local government" means any county or incorporated municipality in the state. The provisions of this paragraph shall expire and be void on June 30, 2005.

(p)1. "New business," for the purposes of the gasohol development tax incentive credit, means a productive business operation, which heretofore did not exist in this state, engaged in the distillation of ethyl alcohol for use in motor fuels or in the manufacture of equipment for the processing and distillation of ethyl alcohol for use in motor fuels.

2. "New business," for the purposes of the enterprise zone property tax credit, means any business entity authorized to do business in this state as defined in paragraph (e), or any bank or savings and loan association as defined in s. 220.62, subject to the tax imposed by the provisions of this chapter, first beginning operations on a site located in an enterprise zone and clearly separate from any other commercial or industrial operations owned by the same entity, bank, or savings and loan association and which establishes five or more new jobs to employ five or more additional full-time employees at such location. The provisions of this subparagraph shall expire and be void on June 30, 2005.

2(q) "New employee," for the purposes of the enterprise zone jobs credit, means a person residing in an enterprise zone employed at a business located in an enterprise zone who begins employment in the operations of the business after July 1, 1995, and who has not been previously employed within the preceding 12 months by the business or a successor business claiming the credit pursuant to s. 220.181. A person shall be deemed to be employed by such a business if the person performs duties in connection with the operations of the business on a full-time basis, provided she or he is performing such duties for an average of at least 36 hours per week each month, or a part-time basis, provided she or he is performing such duties for an average of at least 20 hours per week each month throughout the year. The person must be performing such duties at a business site located in an enterprise zone. The provisions of this paragraph shall expire and be void on June 30, 2005.

(r) "Nonbusiness income" means rents and royalties from real or tangible personal property, capital gains, interest, dividends, and patent and copyright royalties, to the extent that they do not arise from transactions and activities in the regular course of the taxpayer's trade or business. The term "nonbusiness income" does not include income from tangible and intangible prop-

591

erty if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operations, or any amounts which could be included in apportionable income with· out violating the due process clause of the United States Constitution. For purposes of this definition, "income" means gross receipts less all expenses directly or indi· rectly attributable thereto. Functionally related dividends are presumed to be business income.

(s) "Partnership" includes a syndicate, group, pool, joint venture, or other unincorporated organization through or by means of which any business, financial operation, or venture is carried on, including a limited partnership; and the term "partner" includes a member having a capital or a profits interest in a partnership.

(t) "Project" means any activity undertaken by an eligible sponsor, as defined in s. 220.183(4)(c), which is designed to construct, improve, or substantially rehabilitate housing or commercial, industrial, or public resources and facilities or to improve entrepreneurial and job-development opportunities for low-income persons. The provisions of this paragraph shall expire and be void on June 30, 2005.

(u) "Rebuilding of an existing business" means replacement or restoration of real or tangible property destroyed or damaged in an emergency, as defined in paragraph (i), after July 1, 1995, in an enterprise zone, by a business entity authorized to do business in this state as defined in paragraph (e), or a bank or savings and loan association as defined in s. 220.62, subject to the tax imposed by the provisions of this chapter, located in the enterprise zone. The provisions of this paragraph shall expire and be void on June 30, 2005.

(v) "Regulations" includes rules promulgated, and forms prescribed, by the department.

(w) "Returns" includes declarations of estimated tax required under this code.

(x) "Secretary" means the secretary of the 3Qepartment of Commerce. The provisions of this paragraph shall expire and be void on June 30, 2005.

(y) "State," when applied to a jurisdiction other than Florida, means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country, or any political subdivision of any of the foregoing.

(z) "Tax able year" means the calendar or fiscal year upon the basis of which net income is computed under this code, including, in the case of a return made for a fractional part of a year, the period for which such return is made.

(aa) "Taxpayer" means any corporation subject to the tax imposed by this code, and includes all corporations for which a consolidated return is filed under s. 220.131. However, "taxpayer" does not include a corporation having no individuals (including individuals employed by an affiliate) receiving compensation in this state as defined ins. 220.15 when the only property owned or leased by said corporation (including an affiliate) in this state is located at the premises of a printer with which it has contracted for printing, if such property consists of the final printed product, property which becomes a part of the final printed product, or property from which the printed product is produced.


(bb) "Functionally related dividends" include the following types of dividends:

1. Those received from a subsidiary of which the voting stock is more than 50 percent owned or controlled by the taxpayer or members of its affiliated group and which is engaged in the same general line of business.

2. Those received from any corporation which is either a significant source of supply for the taxpayer or its affiliated group or a significant purchaser of the output of the taxpayer or its affiliated group, or which sells a significant part of its output or obtains a significant part of its raw materials or input from the taxpayer or its affiliated group. "Significant" means an amount of 15 percent or more.

3. Those resulting from the investment of working capital or some other purpose in furtherance of the taxpayer or its affiliated group.

However, dividends not otherwise subject to tax under this chapter are excluded.

(cc) "Child care facility startup costs" means expenditures for equipment, including playground equipment and kitchen appliances and cooking equipment, and real property, including land and improvements, used to establish a child care facility as defined bys. 402.302(4) located in the state on the premises or within 5 miles of the employees' workplace and used exclusively by the employees of the taxpayer.

(dd) "Fiscal year," for purposes of s. 220.188, means the most recently ended fiscal year of an export finance corporation pursuant to 4s. 288.758. This paragraph shall expire and be void on June 30, 1999.

(ee) "Export finance corporation" means a corporation organized pursuant to spart V of chapter 288. This paragraph shall expire and be void on June 30, 1999.

(ff) "Qualified investment" means the value in dollars of stock in an export finance corporation purchased solely for cash from said export finance corporation. This paragraph shall expire and be void on June 30, 1999.

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

(a) The word "corporation" or "taxpayer" shall be deemed to include the words "and its successors and assigns" as if these words, or words of similar import, were expressed;

(b) Any term used in any section of this code with respect to the application of, or in connection with, the provisions of any other section of this code shall have the same meaning as in such other section; and

(c) Any term used in this code shall have the same

such periods as are prescribed in the Internal Revenue Code, to the same extent as if such amendment had been adopted by the Legislature of this state. However, any such amendment shall have effect under this code only to the extent that the amended provision of the Internal Revenue Code shall be taken into account in the computation of net income subj~ct to tax hereunder.

(4) It is the intent of the Legislature that all amendments to the Internal Revenue Code be given effect under the Florida Income Tax Code in such manner and for such periods as are prescribed in the Internal Revenue Code, to the same extent as if such amendments had been adopted by the Legislature of the state.

(5)(a) Notwithstanding any other provision of this code, each amendment to the Internal Revenue Code of 1954, as amended and in effect on January 1, 1980, which was enacted by the Congress of the United States after January 1, 1980, and before January 1, 1982, and which had an effective date prior to January 1, 1982, shall be given effect under this code retroactive to the effective date of such amendment unless the taxpayer makes the election provided for in paragraph (b) or in paragraph (c).

(b) Unless a taxpayer makes the election under paragraph (c), she or he may make an election, in the manner prescribed by the department, by August 26, 1982, or a taxpayer filing an initial return may make an election upon filing the first return for tax due under this chapter, whichever is later, to report and pay the tax levied by this chapter as if all such amendments described in paragraph (a) became effective on January 1, 1982. If such an election is made, all such amendments shall have no application to such taxpayer for periods prior to January 1, 1982, and all transactions and events occurring between January 1, 1980, and January 1, 1982, and the continuing tax ramifications of such events and transactions shall be governed by the law in effect on January 1, 1980.

(c) A taxpayer may make an election, in the manner prescribed by the department, by August 26, 1982, or a taxpayer filing an initial return may make an election upon filing the first return for the tax due under this chapter, whichever is later, to report and pay the tax levied by this chapter as if:

1. The Internal Revenue Code of 1954, as amended and in effect on January 1, 1980, is in effect indefinitely thereafter; and

2. Solely for the purpose of computing depreciation deductions, the provisions of chapter 220, Florida Statutes, 1980 Supplement, are in effect indefinitely thereafter.

meaning as when used in a comparable context in the For the purposes of taxation of taxpayers who make the Internal Revenue Code and other statutes of the United election provided for in this paragraph, the Internal Rev-States relating to federal income taxes, as such code enue Code of 1954, as amended and in effect on Janu-and statutes are in effect on January 1, 1996. However, ary 1, 1980, shall include, for tax years beginning on or if subsection (3) is implemented, the meaning of any after January 1, 1982, the provisions of the Foreign term shall be taken at the time the term is applied under Investment in Real Property Tax Act of 1980, Subtitle C this code. of Title XI of Pub. L. No. 96-499 and the amendments to

(3) FUTURE FEDERAL AMENDMENTS.-On or those provisions codified in the Internal Revenue Code, after January 1, 1972, when expressly authorized by law, as defined in paragraph (1 )(n). Taxpayers may one time any amendment to the Internal Revenue Code shall be only revoke an election made pursuant to this para-given effect under this code in such manner and for graph, in accordance with rules formulated by the

592


department. Such revocation shall be prospective in nature, and all transactions and events occurring during the period during which the election provided for in this paragraph is in effect and the continuing tax ramifications of such events and transactions shall be governed by the provisions of this paragraph.

(d) Any taxpayer who has not made the election pursuant to paragraph (c) shall be subject to the provisions of chapter 221, and the provisions of that chapter shall be retroactively effective to the effective date of s. 168 of the Internal Revenue Code of 1954, as amended, unless the taxpayer has made the election pursuant to paragraph (b), in which event the provisions of chapter 221 shall apply retroactively to January 1, 1982.

(e) Paragraphs (b) and (c) and any election made pursuant to such paragraphs shall expire and be void for taxable years beginning on or after January 1, 1987, except any depreciation method elected and applied to assets placed in service prior to January 1, 1987.

(f) Any taxpayer who made an election pursuant to paragraphs (b) and (c) for any prior taxable year shall recompute tax for all prior years for which such election was effective by determining the tax for all such taxable years as if the election had not been made, except for differences attributable to depreciation methods. The aggregate of the changes in the tax liabilities resulting from such recomputation shall be treated as an addition to tax or credit against tax, as the case may be, ratably over the five succeeding taxable years beginning after December 31, 1986. Any ratable portion of a credit against tax which cannot be utilized in any taxable year may be carried over to subsequent taxable years until fully utilized.

Hiatory.-s. 1, ch. 71-964; ss. 2, 3, ch. 72-278; s. 1, ch. 73-321; s. 1, ch. 74-324; s. 2, ch. 75-293; s. 1, ch. 76-173; s. 1, ch. 77-402: ss. 1, 2, ch. 78-58: s. 1, ch. 79-35: s. 1, ch. 80-15; s. 6, ch. 80-77; s. 2, ch. 80-199; ss. 2, 6, ch. 80-247; ss. 2, 10, ch. 80-248; s. 21, ch. 81-167; s. 126, ch. 81-259: s. 3, ch. 82-119: s. 4, ch. 62-177; ss. 1, 8, ch. 82-232; ss. 1, 9, ch. 82-385; ss. 4, 8, ch. 82-399; s. 19, ch. 83-55; s. 12, ch. 83-297; s. 11, ch. 83-334; s. 2, ch. 83-349; s. 37, ch. 64-356: ss. 4, 11, 13, 18, ch. 64-549; s. 3. ch. 85-118: s. 54, ch. 85-342; s. 12. ch. 86-121: s. 12, ch. 87-99; s. 14, ch. 87-102; s. 16, ch. 88-119; ss. 16, 29, ch. 86-201: s. 50, ch. 89-356: s. 37, ch. 90-132; s. 13, ch. 90-203, s. 1, ch. 91-19; s. 1, ch. 92-10; s. 3, ch. 92-207; s. 1, ch. 93-172; s. 7. ch. 93-233: s. 1, ch. 94-86: s. 49, ch. 94-136; s. 1518. ch. 95-147: s. 1, ch. 95-397; s. 1, ch. 96-250; s. 21. ch. 96-320; s. 35, ch. 96-397.

'Note.-Section 2, ch. 96-250, provides that "[t)his act shall take effect [May 29, 1996] and shall operate retroactively to January 1, 1996." "Note.-A. Section 56(1), ch. 94-136, provides that "[n]otwilhstanding any other law to

the contrary, any business which has hired any new employee, as defined in s. 220.03(1)(q), Florida Statutes (1993), on or before June 30, 1994, for which a credit may be claimed under s. 220.181, Florida Statutes (1993), and paid wages alter June 30, 1994, for any creditable month under s. 220.181, Florida Statutes (1993), shall be entitled lo apply for, qualify for, and avail itself oflhe credit unders. 220.181, Flor· ida Statutes (1993), as if !hat section remained in effect, unaffected by other sections of this act, until such time as the business has received the maximum credit allowed pursuant to s. 220.181, Florida Statutes (1993). as ii existed on June 30, 1994. No business may receive a credit pursuant to this paragraph for any employee hired after April 1, 1994."

B. Section 121, ch. 96-320, provides that: '(1) Notwithstanding the provisions of sections 212.096, 220.03(1Xq), and

220.161, Florida Statutes, which require that new employees must have been hired after July 1, 1995, in order for a business to be eligible for the enterprise zone sales tax and corporate tax credits, an employee who is hired after January 1, 1995, may be defined as a 'new employee' for purposes of such tax credits.

"(2} This section applies only to any business located within an area that was designated as a stale enterprise zone before December 31, 1994, and was subse· quently redesignaled or received a designation as a state enterprise zone on July 1, 1995, ii Iha employing business transferred for employment within an enterprise zone, at least 100 full-time employees from a location outside this state between January 1, 1995.andJuly 1, 1995.

·(3) Notwithstanding section 220.181(6), Florida Statutes, any business that is eligible to receive a lax credit pursuant to this section must submit an application pursuant to sections 212.006 and 220.181, Florida Statutes, within 4 monlhs after the effective date of this act. All other requirements of sections 212.096 and 220.181, Florida Statutes, apply to such a business:

•Note.-Section 20. 17, which created the Department of Commerce, was repealed effective December 31, 1996, bys. 3, ch. 96-320.

•Note.-Repealed bys. 60, ch. 93-187.

•Note.-Substituted by the editors for a reference to part VI to conform to the redesignation of parts due lo the repeal of sections making up former part IV of chapter 288 bys. 2, ch. 93-205.

220.12 220.131 220.181 220.183 220.188

PART II

TAX IMPOSED; APPORTIONMENT

"Net income" defined. Adjusted federal income; affiliated groups. Enterprise zone jobs credit. Community contribution tax credit. Export finance corporation investment credit.

220.12 "Net income" defined.-For purposes of this code, a taxpayer's net income for a taxable year shall be its adjusted federal income, or that share of its adjusted federal income for such year which is apportioned to this state under s. 220.15, plus nonbusiness income allocated to this state pursuant to s. 220.16, less child care facility startup costs as defined by 1s. 220.03(1)(dd), less the exemption allowed bys. 220.14.

Hi&tory.-s. 1, ch. 71-964; s. 23. ch. 83-349; s. 4, ch. 85-118; s. 14, ch. 90-203; s. 92, ch. 91-112, s. 36. ch. 96-397.

•Note.-Redesignated as s. 220.03(1}(cc) to conform to the repeal of paragraph (1 )(bb) by s. 35, ch. 96-397.

220.131 Adjusted federal income; affiliated groups.-

(1) Notwithstanding any prior election made with respect to consolidated returns, and subject to subsec· tion (5), for taxable years beginning on or after September 1, 1984, any corporation subject to tax under this code which corporation is the parent company of an affil· iated group of corporations may elect, not later than the due date for filing its return for the taxable year, including any extensions thereof, to consolidate its taxable income with that of all other members of the group, regardless of whether such member is subject to tax under this code, and to return such consolidated taxable income hereunder, in which case all such other members must consent thereto in such manner as the department may by rule prescribe, provided:

(a) Each member of the group consents to such filing by specific written authorization at the time the consolidated return is filed;

(b) The affiliated group so filing under this code has filed a consolidated return for federal income tax purposes for the same taxable year; and

(c) The affiliated group so filing under this code is composed of the identical component members as those which have consolidated their taxable incomes in such federal return.

(2) Subject to subsection (5), the director may require a consolidated return for those members of an affiliated group of corporations which are subject to tax and which would be eligible to elect to consolidate their incomes under subsection (1), if the filing of separate returns for such corporations would improperly reflect the taxable incomes of such corporations or of such group.

(3) The filing of a consolidated return for any taxable year shall require the filing of consolidated returns for all subsequent taxable years so long as the filing taxpayers remain members of the affiliated group or, in the case

593


of a group having component members not subject to tax under this code, so long as a consolidated return is filed by such group for federal income tax purposes, unless the director consents to the filing of separate returns.

(4) The computation of consolidated taxable income for the members of an affiliated group of corporations subject to tax hereunder shall be made in the same manner and under the same procedures, including all intercompany adjustments and eliminations, as are required for consolidating the incomes of affiliated corporations for the taxable year for federal income tax purposes in accordance with s. 1502 of the Internal Revenue Code, and the amount shown as consolidated taxable income shall be the amount subject to tax under this code.

(5) Each taxpayer shall apportion adjusted federal income under s. 220.15 as a member of an affiliated group which files a consolidated return under this section on the basis of apportionment factors described in s. 220.15. For the purposes of this subsection, each special industry member included in an affiliated group filing a consolidated return hereunder, which member would otherwise be permitted to use a special method of apportionment under s. 220.151, shall construct the numerator of its sales, property, and payroll factors, respectively, by multiplying the denominator of each such factor by the premiums or revenue miles factor ratio otherwise applicable pursuant to s. 220.151 in the manner prescribed by the department by rule.

Hiatory.-s. 1. ch. 71-984; s. 4. ch. 83-349: s. 6, ch. 84-549; s. 11. ch. 86-121; s. 90, ch 91-112: s. 38. ch. 96-397.

1220.181 Enterprise zone jobs credit.-(1 )(a) Beginning July 1, 1995, there shall be allowed

a credit against the tax imposed by this chapter to any business located in an enterprise zone which employs one or more new employees. The credit shall be computed as follows:

1. Ten percent of the actual monthly wages paid in this state to each new employee whose wages do not exceed $1,500 a month. If no less than 20 percent of the employees of the business are residents of an enterprise zone, excluding temporary and part-time employees, the credit shall be computed as 15 percent of the actual monthly wages paid in this state to each new employee, for a period of up to 12 consecutive months;

2. Five percent of the first $1,500 of actual monthly wages paid in this state for each new employee whose wages exceed $1,500 a month; or

3. Fifteen percent of the first $1,500 of actual monthly wages paid in this state for each new employee who is a WAGES Program participant pursuant to chapter 414.

(b) This credit applies only with respect to wages subject to unemployment tax and does not apply for any new employee who is employed for any period less than 3 full months.

(c) If this credit is not fully used in any one year, the unused amount may be carried forward for a period not to exceed 5 years. The carryover credit may be used in a subsequent year when the tax imposed by this chapter for such year exceeds the credit for such year after applying the other credits and unused credit carryovers in the order provided in s. 220.02(10).

(2) When filing for an enterprise zone jobs credit, a business must file under oath with the governing body or enterprise zone development agency having jurisdiction over the enterprise zone where the business is located, as applicable, a statement which includes:

(a) For each new employee for whom this credit is claimed, the employee's name and place of residence during the taxable year, including the identifying number assigned pursuant to s. 290.0065 to the enterprise zone in which the new employee resides.

(b) If applicable, the name and address of each permanent employee of the business, including, for each employee who is a resident of an enterprise zone, the identifying number assigned pursuant to s. 290.0065 to the enterprise zone in which the employee resides.

(c) The name and address of the business. (d) The identifying number assigned pursuant to s.

290.0065 to the enterprise zone in which the eligible business is located.

(e) The salary or hourly wages paid to each new employee claimed.

(f) Whether the business is a small business as defined bys. 288.703(1).

(3) Within 10 working days after receipt of an application, the governing body or enterprise zone development agency shall review the application to determine if it contains all the information required pursuant to subsection (2) and meets the criteria set out in this section. The governing body or agency shall certify all applications that contain the information required pursuant to subsection (2) and meet the criteria set out in this sec· tion as eligible to receive a credit. If applicable, the governing body or agency shall also certify if 20 percent of the employees of the business are residents of an enterprise zone, excluding temporary and part-time employees. The certification shall be in writing, and a copy of the certification shall be transmitted to the executive director of the Department of Revenue. The business shall be responsible for forwarding a certified application to the department.

(4) It shall be the responsibility of the taxpayer to affirmatively demonstrate to the satisfaction of the department that it meets the requirements of this act.

(5) For the purpose of this section, the term ·month" means either a calendar month or the time period from any day of any month to the corresponding day of the next succeeding month or, if there is no corresponding day in the next succeeding month, the last day of the succeeding month.

(6) No business which files an amended return for a taxable year shall be allowed any amount of credit or credit carryforward pursuant to this section in excess of the amount claimed by such business on its original return for the taxable year. The provisions of this subsection do not apply to increases in the amount of credit claimed under this section on an amended return due to the use of any credit amount previously carried forward for the taxable year on the original return or any eligible prior year under paragraph (1)(c).

(7) Any business which has claimed this credit shall not be allowed any credit under the provision of s. 212.096 for any new employee beginning employment after July 1, 1995. The provisions of this subsection shall

594


not apply when a corporation converts to an S corporation for purposes of compliance with the Internal Revenue Code of 1986, as amended; however, no corporation shall be allowed the benefit of this credit and the credit under s. 212.096 either for the same new employee or for the same taxable year. In addition, such a corporation shall not be allowed any credit under s. 212.096 until it has filed notice of its intent to change its status for tax purposes and until its final return under this chapter for the taxable year prior to such change has been filed.

(8)(a) Any person who fraudulently claims this credit is liable for repayment of the credit, plus a mandatory penalty in the amount of 200 percent of the credit, plus interest at the rate provided ins. 220.807, and commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(b) Any person who makes an underpayment of tax as a result of a grossly overstated claim for this credit is guilty of a felony of the third degree, punishable as provided ins. 775.082, s. 775.083, ors. 775.084. For purposes of this paragraph, a grossly overstated claim means a claim in an amount in excess of 100 percent of the amount of credit allowable under this section.

(9) The provisions of this section, except paragraph (1)(c) and subsection (8), shall expire and be void on June 30, 2005, and no business shall be allowed to begin claiming such enterprise zone jobs credit after that date; however, the expiration of this section shall not affect the operation of any credit for which a business has qualified under this section prior to June 30, 2005, or any carryforward of unused credit amounts as provided in paragraph (1 )(c).

History.-ss. 3, 6,ch. 80-247; s. 22, ch. 81-167; s. 4, ch. 82-119; s. 20, ch. 83-55; s. 39, ch. 84-356; s. 35, ch. 85--80; s. 56, ch. 86-152; s. 97, ch. 87-6; ss. 17, 30, ch. 88-201; s. 93, ch. 91-112; s. 27, ch. 92-320; s. 51, ch. 94-136; s. 18, ch. 96-320.

•Note.-A. Section 56(1), ch. 94-136, provides that '[n)otwithstanding any other law to

the contrary, any business which has hired any new employee, as defined in s. 220.03(1)(q), Florida Statutes (1993), on or before June 30, 1994, for which a credit may be claimed under s. 220.181, Florida Statutes (1993), and paid wages after June 30, 1994, for any creditable month under s. 220.181, Florida Statutes (1993), shall be entitled lo apply for, qualify for. and avail itseff ol lhe credit under s. 220.181, Florida Statutes (1993), as if that section remained in effect, unaffected by other sections of this act, until such time as the business has received the maximum credit allowed pursuant to s. 220.181, Florida Statutes (1993), as it existed on June 30, 1994. No business may receive a credit pursuant to this paragraph for any employee hired after April 1, 1994.'

B. Section 121, ch. 96-320, provides that: '(1) Notwithstanding the provisions of sections 212.096, 220.03(1)(q), and

220.181, Florida Statutes, which require that new employees must have been hired after July 1, 1995, in order for a business to be eligible for the enterprise zone sales tax and corporate tax credits, an employee who is hired after January 1, 1995, may be defined as a 'new employee' for purposes of such tax credits.

'(2) This section applies only to any business located within an area that was designated as a state enterprise zone before December 31, 1994. and was subsequently redesignated or received a designation as a state enterprise zone on July 1, 1995, ff the employing business transferred for employment within an enterprise zone, at least 100 full-time employees from a location outside this slate between January 1, 1995, and July 1, 1995.

•(3) Notwithstanding section 220.181(6), Florida Statutes, any business that is eligible to receive a tax credit pursuant to this section must submit an application pursuant to sections 212.096 and 220.181, Florida Statutes, within 4 months after the effective dale of this act. All other reqwrements of sections 212.096 and 220.181, Florida Statutes, apply to such a business.·

220.183 Community contribution tax credit.-(1) LEGISLATIVE FINDINGS.-The Legislature finds

that: (a) There exist in the counties and municipalities

conditions of blight evidenced by extensive deterioration of public and private facilities, abandonment of sound structures, and high unemployment which conditions impede the conservation and development of healthy, safe, and economically viable communities.

(b) Deterioration of housing and industrial, commercial, and public facilities contributes to the decline of neighborhoods and communities and leads to the loss of their historic character and the sense of community which this inspires; reduces the value of property comprising the tax base of local communities; discourages private investment; and requires a disproportionate expenditure of public funds for the social services, unemployment benefits, and police protection required to combat the social and economic problems found in slum communities.

(c) In order to ultimately restore social and economic viability to enterprise zones, it is necessary to renovate or construct new housing, water and sewer infrastructure, and transportation facilities and to specifically provide mechanisms to attract and encourage private economic activity.

(d) The various local governments and other redevelopment organizations now undertaking physical revitalization projects are limited by tightly constrained budgets and inadequate resources.

(e) In order to significantly improve revitalization efforts by local governments and community development organizations and to retain as much of the historic character of our communities as possible, it is necessary to provide additional resources, and the participation of private enterprise in revitalization efforts is an effective means for accomplishing that goal.

(2) POLICY AND PURPOSE.-lt is the policy of this state to encourage the participation of private corporations in revitalization projects undertaken by public redevelopment organizations. The purpose of this section is to provide an incentive for such participation by granting partial state income tax credits to corporations that contribute resources to public redevelopment organizations for the revitalization of enterprise zones for the benefit of low-income and moderate-income persons or to preserve existing historically significant properties within enterprise zones to the greatest extent possible. The Legislature thus declares this a public purpose for which public money may be borrowed, expended, loaned, and granted.

(3) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM SPENDING.-

(a) Beginning July 1, 1995, there shall be allowed a credit of 50 percent of a community contribution against any tax due for a taxable year under this chapter.

(b) No business firm shall receive more than $200,000 in annual tax credits for all approved community contributions made in any one year.

(c) The total amount of tax credit which may be granted for all programs approved under this section and s. 624.5105 is $2 million annually.

(d) All proposals for the granting of the tax credit shall require the prior approval of the Office of Tourism, Trade, and Economic Development.

(e) If the credit granted pursuant to this section is not fully used in any one year because of insufficient tax liability on the part of the business firm, the unused amount may be carried forward for a period not to exceed 5 years. The carryover credit may be used in a subsequent year when the tax imposed by this chapter

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for such year exceeds the credit tor such year under this section after applying the other credits and unused credit carryovers in the order provided in s. 220.02(10).

(f) A taxpayer who files a Florida consolidated return as a member of an affiliated group pursuant to s. 220.131(1) may be allowed the credit on a consolidated return basis.

(g) A taxpayer who is eligible to receive the credit provided for ins. 624.5105 is not eligible to receive the credit provided by this section.

(4) ELIGIBILITY REQUIREMENTS.-(a) All community contributions by a business firm

shall be in the form specified ins. 220.03(1)(d). (b) All community contributions must be reserved

exclusively for use in projects as defined in s. 220.03(1 )(t).

(c) The project must be undertaken by an "eligible sponsor," defined here as:

1. A community action program; 2. A community development corporation; 3. A neighborhood housing services corporation; 4. A local housing authority, created pursuant to

chapter 421 ; 5. A community redevelopment agency, created

pursuant to s. 163.356; 6. The Florida Industrial Development Corporation; 7. An historic preservation district agency or organi

zation; 8. A private industry council; 9. A direct-support organization as provided in s.

240.551; 10. An enterprise zone development agency created

pursuant to s. 290.0057; or 11. Such other agency as the Office of Tourism,

Trade, and Economic Development may, from time to time, designate by rule.

In no event shall a contributing business firm have a financial interest in the eligible sponsor.

(d) The project shall be located in an area designated as an enterprise zone pursuant to s. 290.0065. Any project designed to construct or rehabilitate lowincome housing is exempt from the area requirement of this paragraph.

(5) APPLICATION REQUIREMENTS.-(a) Any eligible sponsor wishing to participate in this

program must submit a proposal to the Office of Tourism, Trade, and Economic Development which sets forth the sponsor, the project, the area in which the project is located, and such supporting information as may be prescribed by rule. The proposal shall also contain a resolution from the local governmental unit in which it is located certifying that the project is consistent with local plans and regulations.

(b) Any business wishing to participate in this program must submit an application for tax credit to the Office of Tourism, Trade, and Economic Development, which application sets forth the sponsor; the project; and the type, value, and purpose of the contribution. The sponsor shall verify the terms of the application and indicate its willingness to receive the contribution, which verification indicate its willingness to receive the contribution, which verification shall be in writing and shall accompany the application for tax credit.

(c) The business firm must submit a separate application for tax credit for each individual contribution which it proposes to contribute to each individual project.

(6) ADMINISTRATION.-(a) The Office of Tourism, Trade, and Economic

Development is authorized to promulgate all rules necessary to administer this section, including rules tor the approval or disapproval of proposals by business firms.

(b) The decision of the Office of Tourism, Trade, and Economic Development shall be in writing, and, if approved, the proposal shall state the maximum credit allowable to the business firm. A copy of the decision shall be transmitted to the executive director of the Department of Revenue, who shall apply such credit to the tax liability of the business firm.

(c) The Office of Tourism, Trade, and Economic Development shall periodically monitor all projects in a manner consistent with available resources to ensure that resources are utilized in accordance with this section; however, each project shall be reviewed no less often than once every 2 years.

(d) The Department of Revenue shall promulgate any rules necessary to ensure the orderly implementation and administration of this section.

(7) EXPIRATION.-The provisions of this section, except paragraph (3)(e), shall expire and be void on June 30, 2005.

History.-ss. 2, 3,4, 5,6, 7,8, 10, ch. 80-249; s. 24,ch.81-167; s. 127,ch.81-259; s. 6, ch. 82-119; s. 41. ch. 84-356; s. 19, ch. 88-201; s. 1, ch. 89-352; s. 56, ch. 89-356; s. 4, ch. 90-130; s. 123, ch. 91-112; s. 53, ch. 94-136; s. 22, ch. 96-320.

1220.188 Export finance corporation investment credit.-

(1) There shall be allowed a credit against the tax imposed by this chapter to corporations, banks, and savings associations that make qualified investments in export finance corporations on or before June 30, 1992. The credit shall be computed as 20 percent of the qualified investment initially made by a taxpayer during the taxable year.

(2) The amount allowed as a credit under this section shall not exceed 50 percent of the tax imposed on a corporation, bank, or savings association for the taxable year under this chapter. In addition. no corporation, bank, or savings association shall be allowed more than $500,000 in annual credits and credit carryforwards, as provided in subsection (4), for all taxable years.

(3) The total amount of credit allowed under this section shall not exceed $5 million for all taxpayers in all taxable years. Based on the information submitted by the export finance corporation, pursuant to 2s. 288.753, in the order received by the department, the department shall notify the export finance corporation within 60 days of receipt whether the limitation in this subsection has been exceeded.

(4) If the credit granted pursuant to this section is not fully used in any one year, the unused amount may be carried forward for a period not to exceed 7 years. The credit carryforward may be used in a subsequent year when the tax imposed by this chapter exceeds the credit for such year after applying the other credits and unused credit amounts in the order provided in s. 220.02(10).

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(5) When filing for a credit or a credit carryforward pursuant to this section in the taxable year following the purchase of a qualified investment and the 9 years thereafter, a taxpayer shall include with his or her return:

(a) A copy of an annual certification from the export finance corporation in which a qualified investment has been made which indicates the amount of the qualified investment made and held by the taxpayer in said export finance corporation on December 31 of each taxable year.

(b) A copy of the certificate issued by the Department of Banking and Finance pursuant to 2s. 288.753(3)(a) to the export finance corporation in which a taxpayer has made a qualified investment which indicates that said export finance corporation has complied with the provisions of part V of chapter 288 for the most recently ended fiscal year.

(6) In the event a taxpayer disposes of a qualified investment in an export finance corporation within 10 years after the date in which the taxpayer acquired such qualified investment, in a transaction which gives rise to gain or loss under the Internal Revenue Code, then the tax imposed under this chapter for the taxable year in which said disposition occurs shall be increased by an amount equal to the amount allowed as a credit under this section in the year of the disposition and all prior years for the qualified investment in said export finance corporation, and any unused credit or credit carryforward amount for a qualified investment in said export finance corporation under this section shall be void.

(7) In the event any export finance corporation fails for any two consecutive periodic examinations, pursuant to 2s. 288.753. to comply with the provisions of 2s. 288.746 during the 10 fiscal years immediately following the incorporation of said export development corporation pursuant to 2s. 288.744, then the tax imposed under this chapter on taxpayers who made qualified investments in said export development corporation shall be increased in the first taxable year which ends after the end of said second fiscal year by an amount equal to the amount allowed as a credit under this section for said taxable year and all prior taxable years for qualified investments in said export finance corporation, and any unused credit or credit carryforward amount for a qualified investment in said export finance corporation under this section shall be void.

(8) In the event any export finance corporation dissolves pursuant to the provisions of 2s. 288.755 during the 10 fiscal years immediately following the incorporation of said export finance corporation pursuant to 2s. 288.744, then the tax imposed under this chapter on taxpayers who made qualified investments in said export finance corporation shall be increased in the first taxable year which ends after the date said export finance corporation dissolves by an amount equal to the amount allowed as a credit under this section, including any amount used as a result of credit carryforward, for said taxable year and all prior taxable years for qualified investments in said export finance corporation, and any unused credit or credit carryforward amount for a qualified investment in said export development corporation under this section shall be void. The provisions of this

subsection shall not apply to an export finance corporation which dissolves as a result of bankruptcy pursuant to the Federal Bankruptcy Code.

(9) In the event any export finance corporation violates the provisions of 2s. 288.747 or 2s. 288.751, during the 10 fiscal years immediately following the incorporation of said export finance corporation pursuant to 2s. 288.744, then the tax imposed under this chapter on all taxpayers who made qualified investments in said export finance corporation shall be increased in the first taxable year which ends after said fiscal year by an amount equal to the amount allowed as a credit under this section for said taxable year and all prior taxable years for qualified investments in said export finance corporation.

Hiatory.-s. 21. ch. 88-201; s. 1188, ch. 95-147; s. 40, ch. 96-397. •Note.-Expires June 30, 1999, pursuant to s. 21, ch. 88-201. •Note.-Repealed bys. 60, ch. 93-187.

PART Ill

RETURNS; DECLARATIONS; RECORDS

220.242 Declaration as return.

220.242 Declaration as retum.-All the provisions of this part and of s. 213.053, relating to confidentiality, shall be applicable with respect to declarations of estimated tax unless manifestly inconsistent therewith, and such declarations shall be confidential and exempt from the provisions of s. 119.07(1 ). However, the declaration required of a preparer other than the taxpayer under s. 220.221 (3) shall not be required with respect to declarations of estimated tax.

Hlstory.-s. 1, ch. 71-984; s. 3, ch. 80-222; s. 18, ch. 83-215; s. 35. ch. 88-119; s. 54, ch. 90-360; s. 72, ch. 96-406.

PART IV

PAYMENTS

220.34 Special rules relating to estimated tax.

220.34 Special rules relating to estimated tax.-( 1) Any amount paid as estimated tax shall be

deemed assessed upon the due date for the taxpayer's return for the taxable year, determined without regard to any extensions of time for filing such return.

(2) No interest or penalty shall be due or paid with respect to a failure to pay estimated taxes except the following:

(a) Except as provided in paragraph (d), the taxpayer shall be liable for interest at the rate of 12 percent per year and for a penalty in an amount determined at the rate of 12 percent per year upon the amount of any underpayment of estimated tax determined under this subsection.

(b) For purposes of this subsection, the amount of any underpayment of estimated tax shall be the excess of:

1 . The amount of the installment which would be required to be paid if the estimated tax were equal to 90 percent of the tax shown on the return for the taxable year or, if no return were filed, 90 percent of the tax for such year, over

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2. The amount, if any, of the installment paid on or before the last date prescribed for payment.

(c) The period of the underpayment for which interest and penalties apply shall commence on the date the installment was required to be paid, determined without regard to any extensions of time, and shall terminate on the earlier of the following dates:

1. The first day of the fourth month following the close of the taxable year; or

2. With respect to any portion of the underpayment, the date on which such portion is paid.

For purposes of this paragraph, a payment of estimated tax on any installment date shall be considered a payment of any previous underpayment only to the extent such payment exceeds the amount of the installment determined under subparagraph (b)1 . for such installment date.

(d) No penalty or interest for underpayment of any installment of estimated tax may be imposed if the total amount of all such payments made on or before the last date prescribed for the payment of such installment equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were the lesser amount of:

1. An amount equal to the tax computed at the rates applicable to the taxable year, but otherwise on the basis of the facts shown on the return for, and the law applicable to, the preceding taxable year; or

2. An amount equal to 90 percent of the tax finally due for the taxable year.

(e) For purposes of paragraphs (b) and (d), the term "tax" means the excess of the tax imposed by this code over all amounts properly credited against such tax for the taxable year.

(f) The application of this subsection to taxable years of less than 12 months shall be in accordance with regulations prescribed by the department.

(3) The department may provide by regulation for a credit against estimated taxes for any taxable year of any amount determined by the taxpayer or by the department to be an overpayment of the tax imposed by this code for a preceding taxable year.

History.- ···s. 1, ch. 71-984; s. 15, ch. 83-297; s. 16, ch. 86-152; s. 35, ch. 96-397.

PART VI

MISCELLANEOUS

220.53 Adoption of ss. 213.06 and 213.21.

220.53 Adoption of ss. 213.06 and 213.21.[Repealed bys. 35, ch. 96-397.]

PART VIII

ADMINISTRATIVE PROCEDURES AND JUDICIAL REVIEW

220.729 Books and records.

220.729 Books and records.-(Repealed by s. 35, ch. 96-397.)

PART IX

PENALTIES, INTEREST, AND ENFORCEMENT

220.811 Settlement or compromise of interest.

220.811 Settlement or compromise of interest.[Repealed by s. 35, ch. 96-397.)

CHAPTER 228

PUBLIC EDUCATION: GENERAL PROVISIONS

228.041 Definitions. 228.055 Regional autism centers. 228.056 Charter schools. 228.057 Public school parental choice. 228.093 Pupil and student records and reports; rights

of parents, guardians, pupils, and students; notification; penalty.

228.502 The Education Success Incentive Program.

228.041 Definitions.-Specific definitions shall be as follows, and wherever such defined words or terms are used in the Florida School Code, they shall be used as follows:

(1) STATE SYSTEM OF PUBLIC EDUCATION.-The state system of public education shall consist of such publicly supported and controlled schools, institutions of higher education, other educational institutions, and other educational services as may be provided or authorized by the Constitution and laws of this state.

(a) Public schoo/s.-The public schools shall consist of kindergarten classes; elementary and secondary school grades and special classes; adult, part- time, vocational, and evening schools, courses, or classes authorized by law to be operated under the control of school boards; and developmental research schools to be operated under the control of the State University System.

(b) Community co//eges.-Community colleges shall consist of all educational institutions which are operated by local community college district boards of trustees under specific authority and regulations of the State Board of Education and which offer courses and programs of general and academic education parallel to that of the first and second years of work in institutions in the State University System, of 1career education, and of adult continuing education.

(c) Institutions of higher education.-The institutions of higher education shall consist of all statesupported educational institutions offering work above the public school level, other than community colleges, that are authorized and established by law, together with alt activities and services authorized by law to be administered by or through each of those institutions.

(d) Other educational institutions.- Other statesupported institutions primarily of an educational nature shall be considered parts of the state system of public education. The educational functions of other statesupported institutions which are not primarily of an edu-

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