f.s. 2014 income tax code ch. 220 chapter 220 … · chapter 220 income tax code note.—section 1,...

CHAPTER 220

INCOME TAX CODENote.—Section 1, ch. 2002-395, provides that “[f]or purposes of chapter 220, Florida Statutes, it is the intent of the Legislature

by this section to adopt the Job Creation and Worker Assistance Act of 2002, Pub. L. No. 107-147, and make those provisionseffective for purposes of chapter 220, Florida Statutes, to the extent that such provisions are taken into account in the computationof net income subject to tax therein.”

PART I TITLE; LEGISLATIVE INTENT; DEFINITIONS (ss. 220.02, 220.03)

PART II TAX IMPOSED; APPORTIONMENT (ss. 220.11-220.196)

PART III RETURNS; DECLARATIONS; RECORDS (ss. 220.21-220.242)

PART IV PAYMENTS (ss. 220.31-220.34)

PART V ACCOUNTING (ss. 220.41-220.44)

PART VI MISCELLANEOUS PROVISIONS (ss. 220.51-220.54)

PART VII SPECIAL RULES RELATING TO TAXATION OF BANKS ANDSAVINGS ASSOCIATIONS (ss. 220.62-220.65)

PART VIII ADMINISTRATIVE PROCEDURES AND JUDICIAL REVIEW (ss. 220.701-220.739)

PART IX PENALTIES, INTEREST, AND ENFORCEMENT (ss. 220.801-220.829)

PART X TAX CRIMES (ss. 220.901-220.905)

PART I

TITLE; LEGISLATIVE INTENT;DEFINITIONS

220.02 Legislative intent.220.03 Definitions.

220.02 Legislative intent.—(1) It is the intent of the Legislature in enacting this

code to impose a tax upon all corporations, organiza-tions, associations, and other artificial entities whichderive from this state or from any other jurisdictionpermanent and inherent attributes not inherent in oravailable to natural persons, such as perpetual life,transferable ownership represented by shares or certi-ficates, and limited liability for all owners. It is intendedthat any limited liability company that is classified as apartnership for federal income tax purposes and formedunder chapter 608 or qualified to do business in thisstate as a foreign limited liability company not be subjectto the tax imposed by this code. It is the intent of theLegislature to subject such corporations and otherentities to taxation hereunder for the privilege ofconducting business, deriving income, or existing withinthis state. This code is not intended to tax, and shall notbe construed so as to tax, any natural person whoengages in a trade, business, or profession in this stateunder his or her own or any fictitious name, whetherindividually as a proprietorship or in partnership withothers, or as a member or a manager of a limited liabilitycompany classified as a partnership for federal incometax purposes; any estate of a decedent or incompetent;or any testamentary trust. However, a corporation or

other taxable entity which is or which becomes partnerswith one or more natural persons shall not, merely byreason of being a partner, exclude from its net incomesubject to tax its respective share of partnership netincome. This statement of intent shall be given pre-eminent consideration in any construction or interpreta-tion of this code in order to avoid any conflict betweenthis code and the mandate in s. 5, Art. VII of the StateConstitution that no income tax be levied upon naturalpersons who are residents and citizens of this state.(2) It is the intent of the Legislature that the tax

levied by this code be construed to be an excise orprivilege tax measured by net income and that such taxnot be deemed or construed to be a property tax or a taxon property or a tax measured by the value of propertyfor any purpose.(3) It is the intent of the Legislature that the income

tax imposed by this code utilize, to the greatest extentpossible, concepts of law which have been developed inconnection with the income tax laws of the UnitedStates, in order to:(a) Minimize the expenses of the Department of

Revenue and difficulties in administering this code;(b) Minimize the costs and difficulties of taxpayer

compliance; and(c) Maximize, for both revenue and statistical pur-

poses, the sharing of information between the state andthe Federal Government.(4) It is the intent of the Legislature that the tax

imposed by this code be prospective in effect only.Consistent with this intention and the intent expressed insubsection (3), it is hereby declared to be the intent ofthe Legislature that:

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(a) “Income,” for purposes of this code, includinggains from the sale, exchange, or other disposition ofproperty, be deemed to be created for Florida incometax purposes at such time as such income is realized forfederal income tax purposes;(b) No accretion of value, no accrual of gain, and no

acquisition of a right to receive or accrue income whichhas occurred or been generated prior to November 2,1971, be deemed to be “property,” or an interest inproperty, for any purpose under this code; and(c) All income realized for federal income tax

purposes after November 2, 1971, be subject to taxationin full by this state and be taxed in the manner and to theextent provided in this code.(5) It is the intent of the Legislature that, if there is

included in any taxpayer’s net income subject to taxunder this code any item or items of income which aredetermined to be improperly so included because of aconflict with any federal statute, the Constitution of theUnited States, or the State Constitution, all such itemsof income be excluded from the net incomes of alltaxpayers subject to tax under this code, but all otherprovisions of this chapter, and their application, not beinvalidated or in any way impaired by such requiredexclusion of an item or items of income.(6)(a) It is the intent of the Legislature that the

enterprise zone jobs credit provided by s. 220.181 beapplicable only to those businesses located in anenterprise zone. It is further the intent of the Legislatureto provide an incentive for the increased provision ofemployment opportunities leading to the improvementof the quality of life of those employed and the positiveexpansion of the economy of the state as well as theeconomy of present enterprise zones.(b) Any person charged with any criminal offense

arising from a civil disorder associated with an emer-gency, as defined in s. 220.03(1)(i), and found guilty,whether or not adjudication of guilt or imposition ofsentence is suspended, deferred, or withheld, is noteligible to make application for, receive, or in any othermanner enjoy the benefits or any form of assistanceavailable under chapter 80-247, Laws of Florida.(c) This subsection expires on the date specified in

s. 290.016 for the expiration of the Florida EnterpriseZone Act.(7)(a) It is the intent of the Legislature that the

enterprise zone property tax credit provided by s.220.182 be applicable only to those new or expandedbusinesses located in enterprise zones which make apositive expansionary contribution to the economy ofthis state and to the economy of their local communitiesin terms of new jobs for residents of enterprise zonesand improvements to real and personal property locatedin enterprise zones.(b) Any person charged with any criminal offense

arising from a civil disorder associated with an emer-gency, as defined in s. 220.03(1)(i), and found guilty,whether or not adjudication of guilt or imposition ofsentence is suspended, deferred, or withheld, is noteligible to make application for, receive, or in any othermanner enjoy the benefits or any form of assistanceavailable under chapter 80-248, Laws of Florida.

(c) This subsection expires on the date specified ins. 290.016 for the expiration of the Florida EnterpriseZone Act.

1(8) It is the intent of the Legislature that creditsagainst either the corporate income tax or the franchisetax be applied in the following order: those enumeratedin s. 631.828, those enumerated in s. 220.191, thoseenumerated in s. 220.181, those enumerated in s.220.183, those enumerated in s. 220.182, those en-umerated in s. 220.1895, those enumerated in s.220.195, those enumerated in s. 220.184, those en-umerated in s. 220.186, those enumerated in s.220.1845, those enumerated in s. 220.19, those en-umerated in s. 220.185, those enumerated in s.220.1875, those enumerated in s. 220.192, thoseenumerated in s. 220.193, those enumerated in s.288.9916, those enumerated in s. 220.1899, thoseenumerated in s. 220.194, and those enumerated ins. 220.196.(9) Notwithstanding any other provision of this

chapter, it is the intent of the Legislature that, exceptas otherwise provided under the Internal RevenueCode, for the purposes of this chapter, the term“qualified subchapter S subsidiary,” as that term isdefined in s. 1361(b)(3) of the Internal Revenue Code,shall not be treated as a separate corporation or entityfrom the S corporation parent to which the subsidiary’sassets, liabilities, income, deductions, and credits areattributed under s. 1361(b)(3) of the Internal RevenueCode.

History.—s. 1, ch. 71-984; s. 1, ch. 72-278; s. 5, ch. 80-77; ss. 1, 5, 6, ch.80-247; ss. 1, 9, 10, ch. 80-248; s. 2, ch. 82-119; s. 3, ch. 82-177; s. 5, ch. 82-232; s.59, ch. 83-3; s. 11, ch. 83-297; ss. 18, 19, ch. 83-310; s. 10, ch. 83-334; s. 36, ch.84-356; s. 16, ch. 87-99; s. 15, ch. 88-201; s. 22, ch. 88-388; s. 8, ch. 89-167; s. 48,ch. 94-136; s. 1517, ch. 95-147; s. 3, ch. 97-50; s. 1, ch. 98-61; s. 2, ch. 98-100; s. 7,ch. 98-101; s. 11, ch. 98-132; s. 2, ch. 98-189; s. 1, ch. 98-293; s. 22, ch. 98-342; s.94, ch. 99-2; ss. 16, 17, ch. 99-378; ss. 29, 30, ch. 2000-210; s. 6, ch. 2001-225; s.23, ch. 2005-287; s. 11, ch. 2006-230; s. 2, ch. 2009-50; s. 5, ch. 2010-24; s. 11, ch.2010-147; ss. 5, 6, ch. 2011-76; s. 14, ch. 2013-16.

1Note.—Section 35, ch. 2011-76, provides that:“(1) The executive director of the Department of Revenue is authorized, and all

conditions are deemed met, to adopt emergency rules under ss. 120.536(1) and120.54(4), Florida Statutes, for the purpose of implementing this act.

“(2) Notwithstanding any other provision of law, such emergency rules shallremain in effect for 6 months after the date adopted and may be renewed during thependency of procedures to adopt permanent rules addressing the subject of theemergency rules.”

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 followingterms shall have the following meanings:(a) “Ad valorem taxes paid” means 96 percent of

property taxes levied for operating purposes and doesnot include interest, penalties, or discounts foregone. Inaddition, the term “ad valorem taxes paid,” for purposesof the credit in s. 220.182, means the ad valorem taxpaid on new or additional real or personal propertyacquired to establish a new business or facilitate abusiness expansion, including pollution and wastecontrol facilities, or any part thereof, and includingone or more buildings or other structures, machinery,fixtures, and equipment. This paragraph expires on thedate specified in s. 290.016 for the expiration of theFlorida Enterprise Zone Act.(b) “Affiliated group of corporations” means two or

more corporations which constitute an affiliated group of

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corporations as defined in s. 1504(a) of the InternalRevenue Code.(c) “Business” or “business firm” means any busi-

ness entity authorized to do business in this state asdefined in paragraph (e), and any bank or savings andloan association as defined in s. 220.62, subject to thetax imposed by the provisions of this chapter. Thisparagraph expires on the date specified in s. 290.016 forthe expiration of the Florida Enterprise Zone Act.(d) “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.

This paragraph expires on the date specified in s.290.016 for the expiration of the Florida Enterprise ZoneAct.(e) “Corporation” includes all domestic corpora-

tions; foreign corporations qualified to do business inthis state or actually doing business in this state; joint-stock companies; limited liability companies, underchapter 608; common-law declarations of trust, underchapter 609; corporations not for profit, under chapter617; agricultural cooperative marketing associations,under chapter 618; professional service corporations,under chapter 621; foreign unincorporated associations,under chapter 622; private school corporations, underchapter 623; foreign corporations not for profit which arecarrying on their activities in this state; and all otherorganizations, associations, legal entities, and artificialpersons which are created by or pursuant to the statutesof this state, the United States, or any other state,territory, possession, or jurisdiction. The term “corpora-tion” does not include proprietorships, even if using afictitious name; partnerships of any type, as such;limited liability companies that are taxable as partner-ships for federal income tax purposes; state or publicfairs or expositions, under chapter 616; estates ofdecedents or incompetents; testamentary trusts; orprivate trusts.(f) “Department” means the Department of Reven-

ue of this state.(g) “Director” means the executive director of the

Department of Revenue and, when there has been anappropriate delegation of authority, the executive direc-tor’s delegate.(h) “Earned,” “accrued,” “paid,” or “incurred” shall be

construed according to the method of accounting uponthe basis of which a taxpayer’s income is computedunder this code.(i) “Emergency,” as used in s. 220.02 and in

paragraph (u) of this subsection, means occurrence ofwidespread or severe damage, injury, or loss of life orproperty proclaimed pursuant to s. 14.022 or declaredpursuant to s. 252.36. This paragraph expires on thedate specified in s. 290.016 for the expiration of theFlorida Enterprise Zone Act.(j) “Enterprise zone” means an area in the state

designated pursuant to s. 290.0065. This paragraph

expires on the date specified in s. 290.016 for theexpiration of the Florida Enterprise Zone Act.(k) “Expansion of an existing business,” for the

purposes of the enterprise zone property tax credit,means any business entity authorized to do business inthis state as defined in paragraph (e), and any bank orsavings and loan association as defined in s. 220.62,subject to the tax imposed by the provisions of thischapter, located in an enterprise zone, which expandsby or through additions to real and personal propertyand which establishes five or more new jobs to employfive or more additional full-time employees at suchlocation. This paragraph expires on the date specified ins. 290.016 for the expiration of the Florida EnterpriseZone Act.(l) “Fiscal year” means an accounting period of 12

months or less ending on the last day of any month otherthan December or, in the case of a taxpayer with anannual accounting period of 52-53 weeks under s.441(f) of the Internal Revenue Code, the perioddetermined under that subsection.(m) “Includes” or “including,” when used in a defini-

tion contained in this code, shall not be deemed toexclude other things otherwise within the meaning of theterm defined.

2(n) “Internal Revenue Code” means the UnitedStates Internal Revenue Code of 1986, as amendedand in effect on January 1, 2014, except as provided insubsection (3).(o) “Local government” means any county or in-

corporated municipality in the state. This paragraphexpires on the date specified in s. 290.016 for theexpiration of the Florida Enterprise Zone Act.(p) “New business,” for the purposes of the enter-

prise zone property tax credit, means any businessentity authorized to do business in this state as definedin paragraph (e), or any bank or savings and loanassociation as defined in s. 220.62, subject to the taximposed by the provisions of this chapter, first beginningoperations on a site located in an enterprise zone andclearly separate from any other commercial or industrialoperations owned by the same entity, bank, or savingsand loan association and which establishes five or morenew jobs to employ five or more additional full-timeemployees at such location. This paragraph expires onthe date specified in s. 290.016 for the expiration of theFlorida Enterprise Zone Act.(q) “New employee,” for the purposes of the en-

terprise zone jobs credit, means a person residing in anenterprise zone or a participant in the welfare transitionprogram who is employed at a business located in anenterprise zone who begins employment in the opera-tions of the business after July 1, 1995, and who has notbeen previously employed full time within the preceding12 months by the business or a successor businessclaiming the credit pursuant to s. 220.181. A personshall be deemed to be employed by such a business ifthe person performs duties in connection with theoperations of the business on a full-time basis, providedshe or he is performing such duties for an average of atleast 36 hours per week each month. The person mustbe performing such duties at a business site located inan enterprise zone. This paragraph expires on the date


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specified in s. 290.016 for the expiration of the FloridaEnterprise Zone Act.(r) “Nonbusiness income” means rents and royal-

ties from real or tangible personal property, capitalgains, interest, dividends, and patent and copyrightroyalties, to the extent that they do not arise fromtransactions and activities in the regular course of thetaxpayer’s trade or business. The term “nonbusinessincome” does not include income from tangible andintangible property if the acquisition, management, anddisposition of the property constitute integral parts of thetaxpayer’s regular trade or business operations, or anyamounts which could be included in apportionableincome without violating the due process clause ofthe United States Constitution. For purposes of thisdefinition, “income” means gross receipts less allexpenses directly or indirectly attributable thereto.Functionally related dividends are presumed to bebusiness income.(s) “Partnership” includes a syndicate, group, pool,

joint venture, or other unincorporated organizationthrough or by means of which any business, financialoperation, or venture is carried on, including a limitedpartnership; and the term “partner” includes a memberhaving 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(2)(c), which isdesigned to construct, improve, or substantially rehabi-litate housing that is affordable to low-income or very-low-income households as defined in s. 420.9071(19)and (28); designed to provide commercial, industrial, orpublic resources and facilities; or designed to improveentrepreneurial and job-development opportunities forlow-income persons. A project may be the investmentnecessary to increase access to high-speed broadbandcapability in rural communities with enterprise zones,including projects that result in improvements to com-munications assets that are owned by a business. Aproject may include the provision of museum educa-tional programs and materials that are directly related toany project approved between January 1, 1996, andDecember 31, 1999, and located in an enterprise zonedesignated pursuant to s. 290.0065. This paragraphdoes not preclude projects that propose to construct orrehabilitate low-income or very-low-income housing onscattered sites. With respect to housing, contributionsmay be used to pay the following eligible project-relatedactivities:1. Project development, impact, and management

fees for low-income or very-low-income housing pro-jects;2. Down payment and closing costs for eligible

persons, as defined in s. 420.9071(19) and (28);3. Administrative costs, including housing counsel-

ing and marketing fees, not to exceed 10 percent of thecommunity contribution, directly related to low-incomeor very-low-income projects; and4. Removal of liens recorded against residential

property by municipal, county, or special-district localgovernments when satisfaction of the lien is a neces-sary precedent to the transfer of the property to aneligible person, as defined in s. 420.9071(19) and (28),for the purpose of promoting home ownership.

Contributions for lien removal must be received froma nonrelated third party.

3The provisions of this paragraph shall expire and bevoid on June 30, 2015.(u) “Rebuilding of an existing business” means

replacement or restoration of real or tangible propertydestroyed or damaged in an emergency, as defined inparagraph (i), after July 1, 1995, in an enterprise zone,by a business entity authorized to do business in thisstate as defined in paragraph (e), or a bank or savingsand loan association as defined in s. 220.62, subject tothe tax imposed by the provisions of this chapter,located in the enterprise zone. This paragraph expireson the date specified in s. 290.016 for the expiration ofthe Florida Enterprise Zone Act.(v) “Regulations” includes rules promulgated, and

forms prescribed, by the department.(w) “Returns” includes declarations of estimated tax

required under this code.(x) “State,” when applied to a jurisdiction other than

Florida, means any state of the United States, theDistrict of Columbia, the Commonwealth of Puerto Rico,any territory or possession of the United States, and anyforeign country, or any political subdivision of any of theforegoing.(y) “Taxable year” means the calendar or fiscal year

upon the basis of which net income is computed underthis code, including, in the case of a return made for afractional part of a year, the period for which such returnis made.(z) “Taxpayer” means any corporation subject to the

tax imposed by this code, and includes all corporationsfor which a consolidated return is filed under s. 220.131.However, “taxpayer” does not include a corporationhaving no individuals (including individuals employed byan affiliate) receiving compensation in this state asdefined in s. 220.15 when the only property owned orleased by said corporation (including an affiliate) in thisstate is located at the premises of a printer with which ithas contracted for printing, if such property consists ofthe final printed product, property which becomes a partof the final printed product, or property from which theprinted product is produced.(aa) “Functionally related dividends” include the fol-

lowing types of dividends:1. Those received from a subsidiary of which the

voting stock is more than 50 percent owned orcontrolled by the taxpayer or members of its affiliatedgroup and which is engaged in the same general line ofbusiness.2. Those received from any corporation which is

either a significant source of supply for the taxpayer orits affiliated group or a significant purchaser of theoutput of the taxpayer or its affiliated group, or whichsells a significant part of its output or obtains asignificant part of its raw materials or input from thetaxpayer or its affiliated group. “Significant” means anamount of 15 percent or more.3. Those resulting from the investment of working

capital or some other purpose in furtherance of thetaxpayer or its affiliated group.


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However, dividends not otherwise subject to tax underthis chapter are excluded.(bb) “Child care facility startup costs” means expen-

ditures for substantial renovation, equipment, includingplayground equipment and kitchen appliances andcooking equipment, real property, including land andimprovements, and for reduction of debt, made inconnection with a child care facility as defined by s.402.302, or any facility providing daily care to childrenwho are mildly ill, which is located in this state on thetaxpayer’s premises and used by the employees of thetaxpayer.(cc) “Operation of a child care facility” means opera-

tion of a child care facility as defined by s. 402.302, orany facility providing daily care to children who aremildly ill, which is located in this state within 5 miles of atleast one place of business of the taxpayer and which isused by the employees of the taxpayer.(dd) “Citrus processing company” means a corpora-

tion which, during the 60-month period ending onDecember 31, 1997, had derived more than 50 percentof its total gross receipts from the processing of citrusproducts and the manufacture of juices.(ee) “New job has been created” means that, on the

date of application, the total number of full-time jobs isgreater than the total was 12 months prior to that date,as demonstrated to the department by a businesslocated in the enterprise zone.(ff) “Job” means a full-time position, as consistent

with terms used by the Department of EconomicOpportunity and the United States Department ofLabor for purposes of reemployment assistance taxadministration and employment estimation resultingdirectly from business operations in this state. Theterm may not include a temporary construction jobinvolved with the construction of facilities or any job thathas previously been included in any application for taxcredits under s. 212.096. The term also includesemployment of an employee leased from an employeeleasing company licensed under chapter 468 if theemployee has been continuously leased to the employ-er for an average of at least 36 hours per week for morethan 6 months.

4(2) DEFINITIONAL RULES.—When used in thiscode and neither otherwise distinctly expressed normanifestly incompatible with the intent thereof:(a) The word “corporation” or “taxpayer” includes

the words “and its successors and assigns” as if thesewords, 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, theprovisions of any other section of this code has thesame meaning as in such other section.

5(c) Any term used in this code has the samemeaning as when used in a comparable context inthe Internal Revenue Code and other statutes of theUnited States relating to federal income taxes, as suchcode and statutes are in effect on January 1, 2014.However, if subsection (3) is implemented, the meaningof a term shall be taken at the time the term is appliedunder this code.(3) FUTURE FEDERAL AMENDMENTS.—On or

after January 1, 1972, when expressly authorized by

law, any amendment to the Internal Revenue Code shallbe given effect under this code in such manner and forsuch periods as are prescribed in the Internal RevenueCode, to the same extent as if such amendment hadbeen adopted by the Legislature of this state. However,any such amendment shall have effect under this codeonly to the extent that the amended provision of theInternal Revenue Code shall be taken into account inthe computation of net income subject to tax hereunder.(4) It is the intent of the Legislature that all amend-

ments to the Internal Revenue Code be given effectunder the Florida Income Tax Code in such manner andfor such periods as are prescribed in the InternalRevenue Code, to the same extent as if such amend-ments had been adopted by the Legislature of the state.(5)(a) Notwithstanding any other provision of this

code, each amendment to the Internal Revenue Codeof 1954, as amended and in effect on January 1, 1980,which was enacted by the Congress of the UnitedStates after January 1, 1980, and before January 1,1982, and which had an effective date prior to January1, 1982, shall be given effect under this code retroactiveto the effective date of such amendment unless thetaxpayer 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 themanner prescribed by the department, by August 26,1982, or a taxpayer filing an initial return may make anelection upon filing the first return for tax due under thischapter, whichever is later, to report and pay the taxlevied by this chapter as if all such amendmentsdescribed in paragraph (a) became effective on January1, 1982. If such an election is made, all such amend-ments shall have no application to such taxpayer forperiods prior to January 1, 1982, and all transactionsand events occurring between January 1, 1980, andJanuary 1, 1982, and the continuing tax ramifications ofsuch events and transactions shall be governed by thelaw 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 ataxpayer filing an initial return may make an electionupon filing the first return for the tax due under thischapter, whichever is later, to report and pay the taxlevied by this chapter as if:1. The Internal Revenue Code of 1954, as

amended and in effect on January 1, 1980, is in effectindefinitely thereafter; and2. Solely for the purpose of computing depreciation

deductions, the provisions of chapter 220, FloridaStatutes, 1980 Supplement, are in effect indefinitelythereafter.

For the purposes of taxation of taxpayers who make theelection provided for in this paragraph, the InternalRevenue Code of 1954, as amended and in effect onJanuary 1, 1980, shall include, for tax years beginningon or after January 1, 1982, the provisions of theForeign Investment in Real Property Tax Act of 1980,Subtitle C of Title XI of Pub. L. No. 96-499 and theamendments to those provisions codified in the InternalRevenue Code, as defined in paragraph (1)(n).


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Taxpayers may one time only revoke an election madepursuant to this paragraph, in accordance with rulesformulated by the department. Such revocation shall beprospective in nature, and all transactions and eventsoccurring during the period during which the electionprovided for in this paragraph is in effect and thecontinuing tax ramifications of such events and transac-tions shall be governed by the provisions of thisparagraph.(d) Any taxpayer who has not made the election

pursuant to paragraph (c) shall be subject to theprovisions of chapter 221, and the provisions of thatchapter shall be retroactively effective to the effectivedate of s. 168 of the Internal Revenue Code of 1954, asamended, unless the taxpayer has made the electionpursuant to paragraph (b), in which event the provisionsof 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 fortaxable years beginning on or after January 1, 1987,except any depreciation method elected and applied toassets 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 shallrecompute tax for all prior years for which such electionwas effective by determining the tax for all such taxableyears as if the election had not been made, except fordifferences attributable to depreciation methods. Theaggregate of the changes in the tax liabilities resultingfrom such recomputation shall be treated as an additionto tax or credit against tax, as the case may be, ratablyover the five succeeding taxable years beginning afterDecember 31, 1986. Any ratable portion of a creditagainst tax which cannot be utilized in any taxable yearmay be carried over to subsequent taxable years untilfully utilized.

History.—s. 1, ch. 71-984; 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. 82-177; 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. 84-356; ss. 4, 11, 13, 18, ch.84-549; 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. 88-201; 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; s. 15, ch. 97-287; s.21, ch. 98-57; s. 1, ch. 98-100; s. 9, ch. 98-101; s. 2, ch. 98-293; s. 21, ch. 98-342; s.28, ch. 99-208; s. 11, ch. 2000-157; s. 37, ch. 2000-210; s. 22, ch. 2000-355; s. 6,ch. 2001-201; s. 1, ch. 2001-218; s. 39, ch. 2002-218; s. 1, ch. 2002-283; s. 2, ch.2002-395; s. 1, ch. 2003-85; s. 1, ch. 2004-262; s. 1, ch. 2005-112; s. 2, ch.2005-282; s. 24, ch. 2005-287; s. 4, ch. 2006-2; s. 1, ch. 2006-46; s. 2, ch. 2006-113;s. 1, ch. 2007-35; s. 1, ch. 2008-206; s. 1, ch. 2009-18; s. 1, ch. 2009-192; s. 1, ch.2010-142; s. 88, ch. 2011-142; s. 1, ch. 2011-229; s. 48, ch. 2012-30; s. 3, ch.2012-145; s. 1, ch. 2013-46; s. 1, ch. 2014-25.

1Note.—

A. Section 5, ch. 2008-206, provides that “[t]he Department of Revenue mayadopt rules necessary to administer the provisions of this act, including rules, forms,and guidelines for computing, claiming, and adding back bonus depreciation unders. 168(k) and deductions under s. 179 of the Internal Revenue Code of 1986, asamended.”

B. Section 3, ch. 2009-192, provides that “[t]he Department of Revenue mayadopt rules necessary to administer the provisions of this act.”

2Note.—

A. Section 3, ch. 2011-229, provides that:

“(1) The executive director of the Department of Revenue is authorized, and allconditions are deemed met, to adopt emergency rules under ss. 120.536(1) and120.54(4), Florida Statutes, for the purpose of implementing this act.

“(2) Notwithstanding any other provision of law, the emergency rules shallremain in effect for 6 months after adoption and may be renewed during the

pendency of procedures to adopt permanent rules addressing the subject of theemergency rules.”

B. Section 3, ch. 2013-46, provides that:“Emergency rules.—“(1) The executive director of the Department of Revenue is authorized, and all


“(2) Notwithstanding any other provision of law, the emergency rules shallremain in effect for 6 months after adoption and may be renewed during thependency of procedures to adopt permanent rules addressing the subject of theemergency rules.”

C. Section 2, ch. 2014-25, provides that “[t]his act shall take effect uponbecoming a law and operate retroactively to January 1, 2014.”

3Note.—As amended by s. 2, ch. 2005-282. This sentence was also amended bys. 24, ch. 2005-287, and that version reads: “This paragraph expires on the datespecified in s. 290.016 for the expiration of the Florida Enterprise Zone Act.”

4Note.—A. Section 3, ch. 2011-229, provides that:“(1) The executive director of the Department of Revenue is authorized, and all






5Note.—Section 2, ch. 2014-25, provides that “[t]his act shall take effect uponbecoming a law and operate retroactively to January 1, 2014.”

PART II

TAX IMPOSED; APPORTIONMENT

220.11 Tax imposed.220.12 “Net income” defined.220.13 “Adjusted federal income” defined.220.131 Adjusted federal income; affiliated groups.220.14 Exemption.220.15 Apportionment of adjusted federal income.220.151 Apportionment; methods for special indus-

tries.220.152 Apportionment; other methods.220.153 Apportionment by sales factor.220.16 Allocation of nonbusiness income.220.181 Enterprise zone jobs credit.220.182 Enterprise zone property tax credit.220.183 Community contribution tax credit.220.184 Hazardous waste facility tax credit.220.1845 Contaminated site rehabilitation tax credit.220.185 State housing tax credit.220.186 Credit for Florida alternative minimum tax.220.1875 Credit for contributions to eligible nonprofit

scholarship-funding organizations.220.1895 Rural Job Tax Credit and Urban High-

Crime Area Job Tax Credit.220.1899 Entertainment industry tax credit.220.19 Child care tax credits.220.191 Capital investment tax credit.220.192 Renewable energy technologies invest-

ment tax credit.220.193 Florida renewable energy production cred-

it.220.194 Corporate income tax credits for space-

flight projects.220.195 Emergency excise tax credit.220.196 Research and development tax credit.


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220.11 Tax imposed.—(1) A tax measured by net income is hereby

imposed on every taxpayer for each taxable yearcommencing on or after January 1, 1972, and foreach taxable year which begins before and ends afterJanuary 1, 1972, for the privilege of conducting busi-ness, earning or receiving income in this state, or beinga resident or citizen of this state. Such tax shall be inaddition to all other occupation, excise, privilege, andproperty taxes imposed by this state or by any politicalsubdivision thereof, including any municipality or otherdistrict, jurisdiction, or authority of this state.(2) The tax imposed by this section shall be an

amount equal to 51/2 percent of the taxpayer’s netincome for the taxable year.(3) The tax imposed by this section, for taxpayers

determining taxable income under s. 220.13(2)(k), shallbe an amount equal to 3.3 percent of the taxpayer’s netincome for the taxable year.(4) In the case of a taxpayer to which s. 55 of the

Internal Revenue Code is applied for the taxable year,the amount of tax determined under this section shall bethe greater of the tax determined under subsection (2)without the application of s. 55 of the Internal RevenueCode or the tax determined under subsection (3).

History.—s. 1, ch. 71-984; s. 21, ch. 84-549; s. 13, ch. 87-99; s. 17, ch. 88-119;s. 101, ch. 91-112.

220.12 “Net income” defined.—For purposes ofthis code, a taxpayer’s net income for a taxable yearshall be its adjusted federal income, or that share of itsadjusted federal income for such year which is appor-tioned to this state under s. 220.15, plus nonbusinessincome allocated to this state pursuant to s. 220.16, lessthe exemption allowed by s. 220.14.

History.—s. 1, ch. 71-984; 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; s. 3, ch. 98-293.

1220.13 “Adjusted federal income” defined.—(1) The term “adjusted federal income” means an

amount equal to the taxpayer’s taxable income asdefined in subsection (2), or such taxable income ofmore than one taxpayer as provided in s. 220.131, forthe taxable year, adjusted as follows:

2(a) Additions.—There shall be added to such tax-able income:1. The amount of any tax upon or measured by

income, excluding taxes based on gross receipts orrevenues, paid or accrued as a liability to the District ofColumbia or any state of the United States which isdeductible from gross income in the computation oftaxable income for the taxable year.2. The amount of interest which is excluded from

taxable income under s. 103(a) of the Internal RevenueCode or any other federal law, less the associatedexpenses disallowed in the computation of taxableincome under s. 265 of the Internal Revenue Code orany other law, excluding 60 percent of any amountsincluded in alternative minimum taxable income, asdefined in s. 55(b)(2) of the Internal Revenue Code, ifthe taxpayer pays tax under s. 220.11(3).3. In the case of a regulated investment company

or real estate investment trust, an amount equal to theexcess of the net long-term capital gain for the taxable

year over the amount of the capital gain dividendsattributable to the taxable year.4. That portion of the wages or salaries paid or

incurred for the taxable year which is equal to theamount of the credit allowable for the taxable year unders. 220.181. This subparagraph shall expire on the datespecified in s. 290.016 for the expiration of the FloridaEnterprise Zone Act.5. That portion of the ad valorem school taxes paid

or incurred for the taxable year which is equal to theamount of the credit allowable for the taxable year unders. 220.182. This subparagraph shall expire on the datespecified in s. 290.016 for the expiration of the FloridaEnterprise Zone Act.6. The amount taken as a credit under s. 220.195

which is deductible from gross income in the computa-tion of taxable income for the taxable year.7. That portion of assessments to fund a guaranty

association incurred for the taxable year which is equalto the amount of the credit allowable for the taxableyear.8. In the case of a nonprofit corporation which

holds a pari-mutuel permit and which is exempt fromfederal income tax as a farmers’ cooperative, anamount equal to the excess of the gross incomeattributable to the pari-mutuel operations over theattributable expenses for the taxable year.9. The amount taken as a credit for the taxable year

under s. 220.1895.10. Up to nine percent of the eligible basis of any

designated project which is equal to the credit allowablefor the taxable year under s. 220.185.11. The amount taken as a credit for the taxable year

under s. 220.1875. The addition in this subparagraph isintended to ensure that the same amount is not allowedfor the tax purposes of this state as both a deductionfrom income and a credit against the tax. This addition isnot intended to result in adding the same expense backto income more than once.12. The amount taken as a credit for the taxable year

under s. 220.192.13. The amount taken as a credit for the taxable year

under s. 220.193.14. Any portion of a qualified investment, as defined

in s. 288.9913, which is claimed as a deduction by thetaxpayer and taken as a credit against income taxpursuant to s. 288.9916.15. The costs to acquire a tax credit pursuant to s.

288.1254(5) that are deducted from or otherwise reducefederal taxable income for the taxable year.16. The amount taken as a credit for the taxable year

pursuant to s. 220.194.17. The amount taken as a credit for the taxable year

under s. 220.196. The addition in this subparagraph isintended to ensure that the same amount is not allowedfor the tax purposes of this state as both a deductionfrom income and a credit against the tax. The addition isnot intended to result in adding the same expense backto income more than once.

2(b) Subtractions.—1. There shall be subtracted from such taxable

income:


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a. The net operating loss deduction allowable forfederal income tax purposes under s. 172 of the InternalRevenue Code for the taxable year, except that any netoperating loss that is transferred pursuant to s.220.194(6) may not be deducted by the seller,b. The net capital loss allowable for federal income

tax purposes under s. 1212 of the Internal RevenueCode for the taxable year,c. The excess charitable contribution deduction

allowable for federal income tax purposes under s.170(d)(2) of the Internal Revenue Code for the taxableyear, andd. The excess contributions deductions allowable

for federal income tax purposes under s. 404 of theInternal Revenue Code for the taxable year.

However, a net operating loss and a capital loss shallnever be carried back as a deduction to a prior taxableyear, but all deductions attributable to such losses shallbe deemed net operating loss carryovers and capitalloss carryovers, respectively, and treated in the samemanner, to the same extent, and for the same timeperiods as are prescribed for such carryovers in ss. 172and 1212, respectively, of the Internal Revenue Code.2. There shall be subtracted from such taxable

income any amount to the extent included therein thefollowing:a. Dividends treated as received from sources

without the United States, as determined under s. 862of the Internal Revenue Code.b. All amounts included in taxable income under s.

78 or s. 951 of the Internal Revenue Code.

However, as to any amount subtracted under thissubparagraph, there shall be added to such taxableincome all expenses deducted on the taxpayer’s returnfor the taxable year which are attributable, directly orindirectly, to such subtracted amount. Further, noamount shall be subtracted with respect to dividendspaid or deemed paid by a Domestic International SalesCorporation.3. In computing “adjusted federal income” for

taxable years beginning after December 31, 1976,there shall be allowed as a deduction the amount ofwages and salaries paid or incurred within this state forthe taxable year for which no deduction is allowedpursuant to s. 280C(a) of the Internal Revenue Code(relating to credit for employment of certain newemployees).4. There shall be subtracted from such taxable

income any amount of nonbusiness income includedtherein.5. There shall be subtracted any amount of taxes of

foreign countries allowable as credits for taxable yearsbeginning on or after September 1, 1985, under s. 901of the Internal Revenue Code to any corporation whichderived less than 20 percent of its gross income or lossfor its taxable year ended in 1984 from sources withinthe United States, as described in s. 861(a)(2)(A) of theInternal Revenue Code, not including credits allowedunder ss. 902 and 960 of the Internal Revenue Code,withholding taxes on dividends within the meaning of

sub-subparagraph 2.a., and withholding taxes on royal-ties, interest, technical service fees, and capital gains.6. Notwithstanding any other provision of this code,

except with respect to amounts subtracted pursuant tosubparagraphs 1. and 3., any increment of any appor-tionment factor which is directly related to an incrementof gross receipts or income which is deducted, sub-tracted, or otherwise excluded in determining adjustedfederal income shall be excluded from both thenumerator and denominator of such apportionmentfactor. Further, all valuations made for apportionmentfactor purposes shall be made on a basis consistentwith the taxpayer’s method of accounting for federalincome tax purposes.(c) Installment sales occurring after October 19,

1980.—1. In the case of any disposition made after

October 19, 1980, the income from an installmentsale shall be taken into account for the purposes ofthis code in the same manner that such income is takeninto account for federal income tax purposes.2. Any taxpayer who regularly sells or otherwise

disposes of personal property on the installment planand reports the income therefrom on the installmentmethod for federal income tax purposes under s. 453(a)of the Internal Revenue Code shall report such incomein the same manner under this code.(d) Nonallowable deductions.—A deduction for net

operating losses, net capital losses, or excess contribu-tions deductions under ss. 170(d)(2), 172, 1212, and404 of the Internal Revenue Code which has beenallowed in a prior taxable year for Florida tax purposesshall not be allowed for Florida tax purposes, notwith-standing the fact that such deduction has not been fullyutilized for federal tax purposes.

3(e) Adjustments related to federal acts.—Taxpayersshall be required to make the adjustments prescribed inthis paragraph for Florida tax purposes with respect tocertain tax benefits received pursuant to the EconomicStimulus Act of 2008, the American Recovery andReinvestment Act of 2009, the Small Business Jobs Actof 2010, the Tax Relief, Unemployment InsuranceReauthorization, and Job Creation Act of 2010, andthe American Taxpayer Relief Act of 2012.1. There shall be added to such taxable income an

amount equal to 100 percent of any amount deductedfor federal income tax purposes as bonus depreciationfor the taxable year pursuant to ss. 167 and 168(k) of theInternal Revenue Code of 1986, as amended by s. 103of Pub. L. No. 110-185, s. 1201 of Pub. L. No. 111-5, s.2022 of Pub. L. No. 111-240, s. 401 of Pub. L. No. 111-312, and s. 331 of Pub. L. No. 112-240, for propertyplaced in service after December 31, 2007, and beforeJanuary 1, 2014. For the taxable year and for each ofthe 6 subsequent taxable years, there shall be sub-tracted from such taxable income an amount equal toone-seventh of the amount by which taxable incomewas increased pursuant to this subparagraph, notwith-standing any sale or other disposition of the propertythat is the subject of the adjustments and regardless ofwhether such property remains in service in the handsof the taxpayer.


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2. There shall be added to such taxable income anamount equal to 100 percent of any amount in excess of$128,000 deducted for federal income tax purposes forthe taxable year pursuant to s. 179 of the InternalRevenue Code of 1986, as amended by s. 102 of Pub.L. No. 110-185, s. 1202 of Pub. L. No. 111-5, s. 2021 ofPub. L. No. 111-240, s. 402 of Pub. L. No. 111-312, ands. 315 of Pub. L. No. 112-240, for taxable yearsbeginning after December 31, 2007, and before January1, 2014. For the taxable year and for each of the 6subsequent taxable years, there shall be subtractedfrom such taxable income one-seventh of the amount bywhich taxable income was increased pursuant to thissubparagraph, notwithstanding any sale or other dis-position of the property that is the subject of theadjustments and regardless of whether such propertyremains in service in the hands of the taxpayer.3. There shall be added to such taxable income an

amount equal to the amount of deferred income notincluded in such taxable income pursuant to s. 108(i)(1)of the Internal Revenue Code of 1986, as amended bys. 1231 of Pub. L. No. 111-5. There shall be subtractedfrom such taxable income an amount equal to theamount of deferred income included in such taxableincome pursuant to s. 108(i)(1) of the Internal RevenueCode of 1986, as amended by s. 1231 of Pub. L. No.111-5.4. Subtractions available under this paragraphmay

be transferred to the surviving or acquiring entityfollowing a merger or acquisition and used in thesame manner and with the same limitations as specifiedby this paragraph.5. The additions and subtractions specified in this

paragraph are intended to adjust taxable income forFlorida tax purposes, and, notwithstanding any otherprovision of this code, such additions and subtractionsshall be permitted to change a taxpayer’s net operatingloss for Florida tax purposes.(2) For purposes of this section, a taxpayer’s

taxable income for the taxable year means taxableincome as defined in s. 63 of the Internal Revenue Codeand properly reportable for federal income tax purposesfor the taxable year, but subject to the limitations setforth in paragraph (1)(b) with respect to the deductionsprovided by ss. 172 (relating to net operating losses),170(d)(2) (relating to excess charitable contributions),404(a)(1)(D) (relating to excess pension trust contribu-tions), 404(a)(3)(A) and (B) (to the extent relating toexcess stock bonus and profit-sharing trust contribu-tions), and 1212 (relating to capital losses) of theInternal Revenue Code, except that, subject to thesame limitations, the term:(a) “Taxable income,” in the case of a life insurance

company subject to the tax imposed by s. 801 of theInternal Revenue Code, means life insurance companytaxable income; however, for purposes of this code, thetotal of any amounts subject to tax under s. 815(a)(2) ofthe Internal Revenue Code pursuant to s. 801(c) of theInternal Revenue Code shall not exceed, cumulatively,the total of any amounts determined under s. 815(c)(2)of the Internal Revenue Code of 1954, as amended,from January 1, 1972, to December 31, 1983;

(b) “Taxable income,” in the case of an insurancecompany subject to the tax imposed by s. 831(b) of theInternal Revenue Code, means taxable investmentincome;(c) “Taxable income,” in the case of an insurance

company subject to the tax imposed by s. 831(a) of theInternal Revenue Code, means insurance companytaxable income;(d) “Taxable income,” in the case of a regulated

investment company subject to the tax imposed by s.852 of the Internal Revenue Code, means investmentcompany taxable income;(e) “Taxable income,” in the case of a real estate

investment trust subject to the tax imposed by s. 857 ofthe Internal Revenue Code, means the income subjectto tax, computed as provided in s. 857 of the InternalRevenue Code;(f) “Taxable income,” in the case of a corporation

which is a member of an affiliated group of corporationsfiling a consolidated income tax return for the taxableyear for federal income tax purposes, means taxableincome of such corporation for federal income taxpurposes as if such corporation had filed a separatefederal income tax return for the taxable year and eachpreceding taxable year for which it was a member of anaffiliated group, unless a consolidated return for thetaxpayer and others is required or elected under s.220.131;(g) “Taxable income,” in the case of a cooperative

corporation or association, means the taxable income ofsuch organization determined in accordance with theprovisions of ss. 1381-1388 of the Internal RevenueCode;(h) “Taxable income,” in the case of an organization

which is exempt from the federal income tax by reasonof s. 501(a) of the Internal Revenue Code, means itsunrelated business taxable income as determinedunder s. 512 of the Internal Revenue Code;(i) “Taxable income,” in the case of a corporation

for which there is in effect for the taxable year anelection under s. 1362(a) of the Internal Revenue Code,means the amounts subject to tax under s. 1374 or s.1375 of the Internal Revenue Code for each taxableyear;(j) “Taxable income,” in the case of a limited liability

company, other than a limited liability company classi-fied as a partnership for federal income tax purposes, asdefined in and organized pursuant to chapter 608 orqualified to do business in this state as a foreign limitedliability company or other than a similar limited liabilitycompany classified as a partnership for federal incometax purposes and created as an artificial entity pursuantto the statutes of the United States or any other state,territory, possession, or jurisdiction, if such limitedliability company or similar entity is taxable as acorporation for federal income tax purposes, meanstaxable income determined as if such limited liabilitycompany were required to file or had filed a federalcorporate income tax return under the Internal RevenueCode;(k) “Taxable income,” in the case of a taxpayer

liable for the alternative minimum tax as defined in s. 55of the Internal Revenue Code, means the alternative


169

minimum taxable income as defined in s. 55(b)(2) of theInternal Revenue Code, less the exemption amountcomputed under s. 55(d) of the Internal Revenue Code.A taxpayer is not liable for the alternative minimum taxunless the taxpayer’s federal tax return, or relatedfederal consolidated tax return, if included in a con-solidated return for federal tax purposes, reflect aliability on the return filed for the alternative minimumtax as defined in s. 55(b)(2) of the Internal RevenueCode;(l) “Taxable income,” in the case of a taxpayer

whose taxable income is not otherwise defined in thissubsection, means the sum of amounts to which a taxrate specified in s. 11 of the Internal Revenue Code plusthe amount to which a tax rate specified in s. 1201(a)(2)of the Internal Revenue Code are applied for federalincome tax purposes.

History.—s. 1, ch. 71-984; ss. 4, 7, ch. 72-278; s. 1, ch. 73-321; s. 6, ch. 74-324;s. 1, ch. 78-230; ss. 4, 6, ch. 80-247; ss. 8, 10, ch. 80-248; s. 5, ch. 82-177; s. 2, ch.82-232; s. 2, ch. 82-385; s. 5, ch. 82-399; s. 2, ch. 82-410; s. 60, ch. 83-3; s. 13, ch.83-297; s. 3, ch. 83-349; s. 17, ch. 84-282; s. 38, ch. 84-356; ss. 5, 7, 24, ch. 84-549;s. 17, ch. 86-121; s. 14, ch. 87-99; s. 15, ch. 90-203; s. 18, ch. 93-233; s. 50, ch.94-136; s. 70, ch. 94-353; s. 4, ch. 97-50; s. 10, ch. 98-101; s. 18, ch. 99-378; s. 7,ch. 2001-225; s. 5, ch. 2006-113; s. 14, ch. 2006-230; s. 2, ch. 2008-206; s, 2, ch.2009-18; s. 3, ch. 2009-50; s. 2, ch. 2009-192; s. 6, ch. 2010-24; s. 12, ch. 2010-147;ss. 7, 8, ch. 2011-76; s. 2, ch. 2011-229; s. 2, ch. 2013-46.

1Note.—A. Section 5, ch. 2008-206, provides that “[t]he Department of Revenue may

adopt rules necessary to administer the provisions of this act, including rules, forms,and guidelines for computing, claiming, and adding back bonus depreciation unders. 168(k) and deductions under s. 179 of the Internal Revenue Code of 1986, asamended.”

B. Section 3, ch. 2009-192, provides that “[t]he Department of Revenue mayadopt rules necessary to administer the provisions of this act.”










220.131 Adjusted federal income; affiliatedgroups.—(1) Notwithstanding any prior election made with

respect to consolidated returns, and subject to subsec-tion (5), for taxable years beginning on or afterSeptember 1, 1984, any corporation subject to taxunder this code which corporation is the parent com-pany of an affiliated group of corporations may elect, notlater than the due date for filing its return for the taxableyear, including any extensions thereof, to consolidate itstaxable income with that of all other members of thegroup, regardless of whether such member is subject totax under this code, and to return such consolidatedtaxable income hereunder, in which case all such othermembers must consent thereto in such manner as thedepartment may by rule prescribe, provided:

(a) Each member of the group consents to suchfiling by specific written authorization at the time theconsolidated return is filed;(b) The affiliated group so filing under this code has

filed a consolidated return for federal income taxpurposes for the same taxable year; and(c) The affiliated group so filing under this code is

composed of the identical component members asthose which have consolidated their taxable incomesin such federal return.(2) Subject to subsection (5), the director may

require a consolidated return for those members of anaffiliated group of corporations which are subject to taxand which would be eligible to elect to consolidate theirincomes under subsection (1), if the filing of separatereturns for such corporations would improperly reflectthe taxable incomes of such corporations or of suchgroup.(3) The filing of a consolidated return for any taxable

year shall require the filing of consolidated returns for allsubsequent taxable years so long as the filing taxpayersremain members of the affiliated group or, in the case ofa group having component members not subject to taxunder this code, so long as a consolidated return is filedby such group for federal income tax purposes, unlessthe director consents to the filing of separate returns.(4) The computation of consolidated taxable income

for the members of an affiliated group of corporationssubject to tax hereunder shall be made in the samemanner and under the same procedures, including allintercompany adjustments and eliminations, as arerequired for consolidating the incomes of affiliatedcorporations for the taxable year for federal incometax purposes in accordance with s. 1502 of the InternalRevenue Code, and the amount shown as consolidatedtaxable income shall be the amount subject to tax underthis code.

1(5) Each taxpayer shall apportion adjusted federalincome under s. 220.15 as a member of an affiliatedgroup which files a consolidated return under thissection on the basis of apportionment factors describedin s. 220.15. For the purposes of this subsection, eachspecial industry member included in an affiliated groupfiling a consolidated return, who would otherwise bepermitted to use a special method of apportionmentunder s. 220.151 or s. 220.153, shall construct thenumerator of its sales, property, and payroll factors,respectively, by multiplying the denominator of eachsuch factor by the premiums, revenue miles, or singlesales factor ratio otherwise applicable under s. 220.151or s. 220.153 in the manner prescribed by departmentrule.

History.—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; s. 9, ch. 2011-76.




220.14 Exemption.—1(1) In computing a taxpayer’s liability for tax under

this code, there shall be exempt from the tax $50,000 of


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net income as defined in s. 220.12 or such lesseramount as will, without increasing the taxpayer’s federalincome tax liability, provide the state with an amountunder this code which is equal to the maximum federalincome tax credit which may be available from time totime under federal law.(2) In the case of a taxable year for a period of less

than 12 months, the exemption allowed by this sectionshall be prorated on the basis of the number of days insuch year to 365.(3) Only one exemption shall be allowed to tax-

payers filing a consolidated return under this code.(4) Notwithstanding any other provision of this code,

not more than one exemption under this section may beallowed to the Florida members of a controlled group ofcorporations, as defined in s. 1563 of the InternalRevenue Code with respect to taxable years endingon or after December 31, 1970, filing separate returnsunder this code. The exemption described in this sectionshall be divided equally among such Florida members ofthe group, unless all of such members consent, at suchtime and in such manner as the department shall byregulation prescribe, to an apportionment plan providingfor an unequal allocation of such exemption.





B. Section 25, ch. 2012-32, provides that:“(1) The executive director of the Department of Revenue is authorized, and all


“(2) Notwithstanding any provision of law, such emergency rules shall remainin effect for 6 months after the date adopted and may be renewed during thependency of procedures to adopt permanent rules addressing the subject of theemergency rules.”

220.15 Apportionment of adjusted federal in-come.—

1(1) Except as provided in ss. 220.151, 220.152, and220.153, adjusted federal income as defined in s.220.13 shall be apportioned to this state by taxpayersdoing business within and without this state by multi-plying it by an apportionment fraction composed of asales factor representing 50 percent of the fraction, aproperty factor representing 25 percent of the fraction,and a payroll factor representing 25 percent of thefraction. If any factor described in subsection (2),subsection (4), or subsection (5) has a denominatorthat is zero or is determined by the department to beinsignificant, the relative weights of the other factors inthe denominator of the apportionment fraction shall beas follows:(a) If the denominators for any two factors are zero

or are insignificant, the weighted percentage for theremaining factor shall be 100 percent.(b) If the denominator for the sales factor is zero or

is insignificant, the weighted percentage for the propertyand payroll factors shall change from 25 percent to 50percent, respectively.(c) If the denominator for either the property or

payroll factor is zero or is insignificant, the weighted

percentage for the other shall be 331/3 percent, and theweighted percentage for the sales factor shall be 662/3percent.(2) The property factor is a fraction the numerator of

which is the average value of the taxpayer’s real andtangible personal property owned or rented and used inthis state during the taxable year or period and thedenominator of which is the average value of suchproperty owned or rented and used everywhere.(a) Real and tangible personal property owned by

the taxpayer shall be valued at original cost. Real andtangible personal property rented by the taxpayer shallbe valued at 8 times the net annual rental rate paid bythe taxpayer less any annual rental rate received fromsubrentals.(b) The average value of real and tangible personal

property shall be determined by averaging the value atthe beginning and the end of the taxable year or period,unless the department determines that an averaging ofmonthly values during the taxable year or period isreasonably required to reflect properly the averagevalue of the taxpayer’s real and tangible personalproperty.(c) The property factor fraction shall not include any

real or tangible personal property located in this statewith respect to which it is certified to the Department ofRevenue that such property is dedicated exclusively toresearch and development activities performed pur-suant to sponsored research contracts conducted inconjunction with and through a university that is amember of the State University System or a nonpublicuniversity that is chartered in Florida and conductsgraduate programs at the professional or doctoral level.The Board of Governors of the State University Systemmust certify the contracts for members of the StateUniversity System, and the president of the universitymust certify the contracts for a nonpublic university. Asused in this paragraph, “sponsored research contract”means an agreement executed by parties that include atleast the university and the taxpayer. Funding forsponsored research contracts may be provided frompublic or private sources.(3) The property factor used by a financial organiza-

tion shall also include intangible personal property,except goodwill, which is owned and used in thebusiness, valued at its tax basis for federal incometax purposes. Intangible personal property shall be inthis state if it consists of any of the following:(a) Coin or currency located in this state;(b) Assets in the nature of loans, including balances

due from depository institutions, repurchase agree-ments, federal funds sold, and bankers acceptances,which assets are located in this state; installmentobligations on loans for which the customer initiallyapplied at an office located in this state; or loanssecured by mortgages, deeds of trust, or other liensupon real or tangible personal property located in thisstate;(c) A portion of a participation loan if the office that

enters into the participation is located in this state;(d) Credit card receivables from customers who

reside or who are commercially domiciled in this state;


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(e) Investments in securities that generate businessincome if the taxpayer’s commercial domicile is in thestate, unless such securities have acquired a discretebusiness situs elsewhere;(f) Securities used to maintain reserves against

deposits to meet federal or state deposit requirements,based on the ratio that total deposits in this state bear tototal deposits everywhere;(g) Securities held by a state treasurer or other

public official or pledged to secure public funds or trustfunds deposited with the taxpayer if the office at whichthe secured deposits are maintained is in this state;(h) Leases of tangible personal property to another

if the taxpayer’s commercial domicile is in the state,unless the taxpayer establishes that the location of theleased tangible personal property is in another state orstates for the entire taxable year and the taxpayer istaxable in such other state or states;(i) Installment sale agreements originally executed

by a taxpayer or its agent to sell real or tangible personalproperty located in this state; or(j) Any other intangible personal property located in

this state which is used to generate business income.(4) The payroll factor is a fraction the numerator of

which is the total amount paid in this state during thetaxable year or period by the taxpayer for compensationand the denominator of which is the total compensationpaid everywhere during the taxable year or period.(a) As used in this subsection, the term “compensa-

tion” means wages, salaries, commissions, and anyother form of remuneration paid to employees forpersonal services.(b) Compensation is paid in this state if:1. The employee’s service is performed entirely

within the state; or2. The employee’s service is performed both within

and without the state, but the service performed withoutthe state is incidental to the employee’s service withinthe state; or3. Some of the employee’s service is performed in

the state, anda. The base of operations or, if there is no base of

operations, the place from which the service is directedor controlled is in the state, orb. The base of operations or the place from which

the service is directed or controlled is not in any state inwhich some part of the service is performed and theemployee’s residence is in this state.(c) The payroll factor fraction shall not include any

compensation paid to any employee located in this statewhen it is certified to the Department of Revenue thatsuch compensation was paid to employees dedicatedexclusively to research and development activitiesperformed pursuant to sponsored research contractsconducted in conjunction with and through a universitythat is a member of the State University System or anonpublic university that is chartered in Florida andconducts graduate programs at the professional ordoctoral level. The Board of Governors of the StateUniversity System must certify the contracts for mem-bers of the State University System, and the presidentof the university must certify the contracts for anonpublic university. As used in this paragraph,

“sponsored research contract” means an agreementexecuted by parties that include at least the universityand the taxpayer. Funding for sponsored researchcontracts may be provided from public or privatesources.(5) The sales factor is a fraction the numerator of

which is the total sales of the taxpayer in this stateduring the taxable year or period and the denominator ofwhich is the total sales of the taxpayer everywhereduring the taxable year or period.(a) As used in this subsection, the term “sales”

means all gross receipts of the taxpayer except interest,dividends, rents, royalties, and gross receipts from thesale, exchange, maturity, redemption, or other disposi-tion of securities. However:1. Rental income is included in the term if a

significant portion of the taxpayer’s business consistsof leasing or renting real or tangible personal property;and2. Royalty income is included in the term if a

significant portion of the taxpayer’s business consistsof dealing in or with the production, exploration, ordevelopment of minerals.(b)1. Sales of tangible personal property occur in

this state if the property is delivered or shipped to apurchaser within this state, regardless of the f.o.b. point,other conditions of the sale, or ultimate destination ofthe property, unless shipment is made via a common orcontract carrier. However, for industries in NAICSNational Number 311411, if the ultimate destination ofthe product is to a location outside this state, regardlessof the method of shipment or f.o.b. point, the sale shallnot be deemed to occur in this state. As used in thisparagraph, “NAICS” means those classifications con-tained in the North American Industry ClassificationSystem, as published in 2007 by the Office of Manage-ment and Budget, Executive Office of the President.2. When citrus fruit is delivered by a cooperative for

a grower-member, by a grower-member to a coopera-tive, or by a grower-participant to a Florida processor,the sales factor for the growers for such citrus fruitdelivered to such processor shall be the same as thesales factor for the most recent taxable year of thatprocessor. That sales factor, expressed only as apercentage and not in terms of the dollar volume ofsales, so as to protect the confidentiality of the sales ofthe processor, shall be furnished on the request of sucha grower promptly after it has been determined for thattaxable year.3. Reimbursement of expenses under an agency

contract between a cooperative, a grower-member of acooperative, or a grower and a processor is not a salewithin this state.(c) Sales of a financial organization, including, but

not limited to, banking and savings institutions, invest-ment companies, real estate investment trusts, andbrokerage companies, occur in this state if derived from:1. Fees, commissions, or other compensation for

financial services rendered within this state;2. Gross profits from trading in stocks, bonds, or

other securities managed within this state;3. Interest received within this state, other than

interest from loans secured by mortgages, deeds of


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trust, or other liens upon real or tangible personalproperty located without this state, and dividendsreceived within this state;4. Interest charged to customers at places of

business maintained within this state for carrying debitbalances of margin accounts, without deduction of anycosts incurred in carrying such accounts;5. Interest, fees, commissions, or other charges or

gains from loans secured by mortgages, deeds of trust,or other liens upon real or tangible personal propertylocated in this state or from installment sale agreementsoriginally executed by a taxpayer or the taxpayer’sagent to sell real or tangible personal property located inthis state;6. Rents from real or tangible personal property

located in this state; or7. Any other gross income, including other interest,

resulting from the operation as a financial organizationwithin this state.

In computing the amounts under this paragraph, anyamount received by a member of an affiliated group(determined under s. 1504(a) of the Internal RevenueCode, but without reference to whether any suchcorporation is an “includable corporation” under s.1504(b) of the Internal Revenue Code) from anothermember of such group shall be included only to theextent such amount exceeds expenses of the recipientdirectly related thereto.(6) The term “financial organization,” as used in this

section, includes any bank, trust company, savingsbank, industrial bank, land bank, safe-deposit company,private banker, savings and loan association, creditunion, cooperative bank, small loan company, salesfinance company, or investment company.(7) The term “everywhere,” as used in the computa-

tion of apportionment factor denominators under thissection, means “in all states of the United States, theDistrict of Columbia, the Commonwealth of Puerto Rico,any territory or possession of the United States, and anyforeign country, or any political subdivision of theforegoing.”(8) No research and development activities certified

as being conducted within this state in conjunction withand through a university that is a member of the StateUniversity System or a nonpublic university that ischartered in Florida and conducts graduate programsat the professional or doctoral level shall cause anycorporation to become subject to the taxes imposed bythis chapter if the corporation would otherwise not besubject to the tax levied under this chapter. The propertyand payroll eliminated from the apportionment formulapursuant to the provisions of paragraphs (2)(c) and(4)(c) shall be eliminated only for the duration of thecontractual period specified in the contracts for theconduct of the sponsored research. The reduction in taxdue as a result of the property and payroll eliminatedfrom the apportionment formula pursuant to the provi-sions of paragraphs (2)(c) and (4)(c) shall not exceedthe amount paid to the university for the conduct of thesponsored research. No sponsored research contractsin existence prior to July 1, 1998, shall be eligible to

participate in the provisions of paragraphs (2)(c) and(4)(c).

History.—s. 1, ch. 71-984; s. 5, ch. 72-278; s. 3, ch. 75-293; s. 7, ch. 83-349; s.13, ch. 86-121; s. 57, ch. 89-356; s. 91, ch. 91-112; s. 1186, ch. 95-147; s. 1, ch.98-325; s. 40, ch. 2002-218; s. 27, ch. 2007-217; s. 7, ch. 2009-51; s. 10, ch.2011-76.




220.151 Apportionment; methods for specialindustries.—(1)(a) Except as provided in paragraph (b), the tax

base of an insurance company for a taxable year orperiod shall be apportioned to this state by multiplyingsuch base by a fraction the numerator of which is thedirect premiums written for insurance upon propertiesand risks in this state and the denominator of which isthe direct premiums written for insurance upon proper-ties and risks everywhere. For purposes of this para-graph, the term “direct premiums written” means thetotal amount of direct premiums written, assessments,and annuity considerations, as reported for the taxableyear or period on the annual statement filed by thecompany with the Office of Insurance Regulation of theFinancial Services Commission in the form approved bythe National Convention of Insurance Commissioners orsuch other form as may be prescribed in lieu thereof.(b) If the principal source of premiums written by an

insurance company consists of premiums for reinsur-ance accepted by it, the tax base of such company shallbe apportioned to this state by multiplying such base bya fraction the numerator of which is the sum of:1. Direct premiums written for insurance upon

properties and risks in this state, plus2. Premiums written for reinsurance, accepted in

respect to properties and risks in this state,

and the denominator of which is the sum of directpremiums written for insurance upon properties andrisks everywhere plus premiums written for reinsuranceaccepted in respect to properties and risks everywhere.For purposes of this paragraph, premiums written forreinsurance accepted in respect to properties and risksin this state, whether or not otherwise determinable,shall be determined on the basis of the proportion whichpremiums written for reinsurance accepted from com-panies resident in or having a regional home office in thestate bears to premiums written for reinsurance ac-cepted from all sources.(2) The tax base for a taxpayer furnishing transpor-

tation services, for the purpose of computing a tax onthose activities, shall be apportioned to this state bymultiplying such base by a fraction the numerator ofwhich is the revenue miles of the taxpayer in this stateand the denominator of which is the revenuemiles of thetaxpayer everywhere.(a) For transportation other than by pipeline, a

revenue mile is the transportation of one passengeror 1 net ton of freight the distance of 1 mile for aconsideration. When a taxpayer is engaged in thetransportation of both passengers and freight, the


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fraction shall be determined by means of an average ofthe passenger revenue mile fraction and the freightrevenue mile fraction, weighted to reflect the taxpayer’srelative railway operating income from total passengerand total freight service as reported to the 1InterstateCommerce Commission, in the case of transportationby railroad, or weighted to reflect the taxpayer’s relativegross receipts from passenger and freight transporta-tion, in case of transportation other than by railroad.(b) For transportation by pipeline, a revenue mile is

the transportation by pipeline of 1 barrel of oil, 1,000cubic feet of gas, or any specified quantity of any othersubstance the distance of 1 mile for a consideration.(c) For purposes of paragraph (a), in computing the

revenue miles of any taxpayer engaged in furnishing airor sea transportation services, the “revenue miles in thisstate” shall include all miles traversed within the areabounded on the west by the meridian of longitude 87˚30´west from Greenwich, bounded on the north by thenorthern land border of this state or the parallel oflatitude 31˚ north from the equator, bounded on the eastby the meridian of longitude 80˚ west from Greenwich,and bounded on the south by the parallel of latitude23˚30´ north from the equator as the case may be. The“revenue miles in this state” shall also include all milestraversed between points in this state, even though theroute of travel is not wholly over the land mass of thestate. The department may prescribe standard mileagetables for the purpose of determining revenue miles inthe state under this paragraph, rather than requiringtaxpayers to compute from their records the actualnumber of miles traversed within such boundaries orpoints from time to time.(d) For purposes of this subsection, the term

“taxpayer furnishing transportation services” includestaxpayers engaged exclusively in interstate commerce.(3) For any taxable year beginning on or after

January 1, 1999, a citrus processing company may, ifrequired to apportion its taxable net income pursuant tothe three-factor apportionment method set forth in s.220.15(1), elect to have such apportionment deter-mined for that taxable year solely by use of the salesfactor, as set forth in s. 220.15(5). The election shall bemade by the filing of a return for the taxable year utilizingthis method.

History.—s. 19, ch. 71-359; s. 63, ch. 73-333; s. 10, ch. 86-121; s. 84, ch.91-112; s. 29, ch. 99-208; s. 257, ch. 2003-261.

1Note.—Abolished by s. 101, Pub. L. No. 104-88.Note.—Former s. 214.72.

220.152 Apportionment; other methods.—If theapportionment methods of ss. 220.15 and 220.151 donot fairly represent the extent of a taxpayer’s tax baseattributable to this state, the taxpayer may petition for, orthe department may require, in respect to all or any partof the taxpayer’s tax base, if reasonable:(1) Separate accounting;(2) The exclusion of any one or more factors;(3) The inclusion of one or more additional factors

which will fairly represent the taxpayer’s tax baseattributable to this state; or(4) The employment of any other method which will

produce an equitable apportionment.History.—s. 19, ch. 71-359; s. 85, ch. 91-112.Note.—Former s. 214.73.

1220.153 Apportionment by sales factor.—(1) DEFINITION.—As used in this section, the term

“qualified capital expenditures” means expenditures inthis state for purposes substantially related to abusiness’s production or sale of goods or services.The expenditure must fund the acquisition of additionalreal property (land, buildings, including appurtenances,fixtures and fixed equipment, structures, etc.), includingadditions, replacements, major repairs, and renovationsto real property which materially extend its useful life ormaterially improve or change its functional use and thefurniture and equipment necessary to furnish andoperate a new or improved facility. The term does notinclude an expenditure for a passive investment or foran investment intended for the accumulation of reservesor the realization of profit for distribution to any personholding an ownership interest in the business. The termdoes not include expenditures to acquire an existingbusiness or expenditures in excess of $125 million toacquire land or buildings.(2) APPORTIONMENT OF TAXES; ELIGIBILITY.

A taxpayer, not including a financial organization asdefined in s. 220.15(6) or a bank, savings association,international banking facility, or banking organization asdefined in s. 220.62, doing business within and withoutthis state, who applies and demonstrates to theDepartment of Economic Opportunity that, within a 2-year period beginning on or after July 1, 2011, it hasmade qualified capital expenditures equal to or exceed-ing $250 million may apportion its adjusted federalincome solely by the sales factor set forth in s.220.15(5), commencing in the taxable year that theDepartment of Economic Opportunity approves theapplication, but not before a taxable year that beginson or after January 1, 2013. Once approved, a taxpayermay elect to apportion its adjusted federal income forany taxable year using the method provided under thissection or the method provided under s. 220.15.(3) QUALIFICATION PROCESS.—(a) To qualify as a taxpayer who is eligible to

apportion its adjusted federal income under this section:1. The taxpayer must notify the Department of

Economic Opportunity of its intent to submit an applica-tion to apportion its adjusted federal income in order tocommence the 2-year period for measuring qualifiedcapital expenditures.2. The taxpayer must submit an application to

apportion its adjusted federal income under this sectionto the Department of Economic Opportunity within 2years after notifying the Department of EconomicOpportunity of the taxpayer’s intent to qualify. Theapplication must be made under oath and provide suchinformation as the Department of Economic Opportunityreasonably requires by rule for determining the appli-cant’s eligibility to apportion adjusted federal incomeunder this section. The taxpayer is responsible foraffirmatively demonstrating to the satisfaction of theDepartment of Economic Opportunity that it meets theeligibility requirements.(b) The taxpayer notice and application forms shall

be established by the Department of Economic Oppor-tunity by rule. The Department of Economic Opportunityshall acknowledge receipt of the notice and approve or


174

deny the application in writing within 45 days afterreceipt.(4) REVIEW AUTHORITY; RECAPTURE OF TAX.(a) In addition to its existing audit authority, the

department may perform any financial and technicalreview and investigation, including examining the ac-counts, books, and records of the taxpayer as neces-sary, to verify that the taxpayer’s tax return correctlycomputes and apportions adjusted federal income andto ensure compliance with this chapter.(b) The Department of Economic Opportunity may,

by order, revoke its decision to grant eligibility forapportionment pursuant to this section, and may alsoorder the recalculation of apportionment factors to thoseapplicable under s. 220.15 if, as the result of an audit,investigation, or examination, it determines that infor-mation provided by the taxpayer in the application, or ina statement, representation, record, report, plan, orother document provided to the Department of Eco-nomic Opportunity to become eligible for apportion-ment, was materially false at the time it was made andthat an individual acting on behalf of the taxpayer knew,or should have known, that the information submittedwas false. The taxpayer shall pay such additional taxesand interest as may be due pursuant to this chaptercomputed as the difference between the tax that wouldhave been due under the apportionment formulaprovided in s. 220.15 for such years and the tax actuallypaid. In addition, the department shall assess a penaltyequal to 100 percent of the additional tax due.(c) The Department of Economic Opportunity shall

immediately notify the department of an order affectinga taxpayer’s eligibility to apportion tax pursuant to thissection. A taxpayer who is liable for past tax must file anamended return with the department, or such otherreport as the department prescribes by rule, and payany required tax, interest, and penalty within 60 daysafter the taxpayer receives notification from the Depart-ment of Economic Opportunity that the previouslyapproved credits have been revoked. If the revocationis contested, the taxpayer shall file an amended returnor other report within 30 days after an order becomesfinal. A taxpayer who fails to pay the past tax, interest,and penalty by the due date is subject to the penaltiesprovided in s. 220.803.(5) RULES.—The Department of Economic Oppor-

tunity and the department may adopt rules to administerthis section.

History.—s. 11, ch. 2011-76; s. 27, ch. 2012-96.1Note.—Section 35, ch. 2011-76, provides that:“(1) The executive director of the Department of Revenue is authorized, and all



220.16 Allocation of nonbusiness income.—Nonbusiness income shall be allocated as follows:(1)(a) Net rents and royalties from real property

located in this state are allocable to this state.(b) Net rents and royalties from tangible personal

property are allocable to this state:1. If, and to the extent that, the property is utilized in

this state; or

2. In their entirety, if the taxpayer’s commercialdomicile is in this state and the taxpayer is not organizedunder the laws of, or taxable in, the state in which theproperty is utilized.(c) The extent of utilization of tangible personal

property in a state is determined by multiplying the rentsand royalties by a fraction, the numerator of which is thenumber of days of the physical location of the property inthe state during the rental or royalty period in the incomeyear and the denominator of which is the number ofdays of the physical location of the property everywhereduring all rental or royalty periods in the income year. Ifthe physical location of the property during the rental orroyalty period is unknown or unascertainable by thetaxpayer, the tangible personal property is deemed tobe utilized in the state in which the property was locatedat the time the rental or royalty payor obtained posses-sion of the property.(2)(a) Capital gains and losses from sales of real

property located in this state are allocable to this state.(b) Capital gains and losses from sales of tangible

personal property are allocable to this state if:1. The property had a situs in this state at the time

of the sale; or2. The taxpayer’s commercial domicile is in this

state, and the taxpayer is not taxable in the state inwhich the property had a situs.(c) Capital gains and losses from sales of intangible

personal property are allocable to this state if thetaxpayer’s commercial domicile is in this state.(3) Interest and dividends are allocable to this state

if the taxpayer’s commercial domicile is in this state.(4)(a) Patent and copyright royalties are allocable to

this state:1. If, and to the extent that, the patent or copyright

is utilized by the payor in this state; or2. If, and to the extent that, the patent or copyright

is utilized by the payor in a state in which the taxpayer isnot taxable and the taxpayer’s commercial domicile is inthis state.(b) A patent is utilized in a state to the extent that it is

employed in production, fabrication, manufacturing, orother processing in the state or to the extent that apatented product is produced in the state. If the basis ofreceipts from patent royalties does not permit allocationto states or if the accounting procedures do not reflectstates of utilization, the patent is utilized in the state inwhich the taxpayer’s commercial domicile is located.(c) A copyright is utilized in a state to the extent that

printing or other publication originates in the state. If thebasis of receipts from copyright royalties does notpermit allocation to states or if the accounting proce-dures do not reflect states of utilization, the copyright isutilized in the state in which the taxpayer’s commercialdomicile is located.

1(5) The amount of payments received in exchangefor transferring a net operating loss authorized by s.220.194 is allocable to the state.

History.—s. 8, ch. 83-349; s. 14, ch. 2011-76.1Note.—Section 35, ch. 2011-76, provides that:“(1) The executive director of the Department of Revenue is authorized, and all


“(2) Notwithstanding any other provision of law, such emergency rules shallremain in effect for 6 months after the date adopted and may be renewed during the


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pendency of procedures to adopt permanent rules addressing the subject of theemergency rules.”

220.181 Enterprise zone jobs credit.—(1)(a) There shall be allowed a credit against the tax

imposed by this chapter to any business located in anenterprise zone which demonstrates to the departmentthat, on the date of application, the total number of full-time jobs is greater than the total was 12 months beforethat date. The credit shall be computed as 20 percent ofthe actual monthly wages paid in this state to each newemployee hired when a new job has been created, asdefined under s. 220.03(1)(ee), unless the business islocated in a rural enterprise zone, pursuant to s.290.004, in which case the credit shall be 30 percentof the actual monthly wages paid. If no less than 20percent of the employees of the business are residentsof an enterprise zone, excluding temporary and part-time employees, the credit shall be computed as 30percent of the actual monthly wages paid in this state toeach new employee hired when a new job has beencreated, unless the business is located in a ruralenterprise zone, in which case the credit shall be 45percent of the actual monthly wages paid, for a period ofup to 24 consecutive months. If the new employee hiredwhen a new job is created is a participant in the welfaretransition program, the following credit shall be apercent of the actual monthly wages paid: 40 percentfor $4 above the hourly federal minimum wage rate; 41percent for $5 above the hourly federal minimum wagerate; 42 percent for $6 above the hourly federalminimum wage rate; 43 percent for $7 above the hourlyfederal minimum wage rate; and 44 percent for $8above the hourly federal minimum wage rate.(b) This credit applies only with respect to wages

subject to reemployment assistance tax. The creditprovided in this section does not apply:1. For any employee who is an owner, partner, or

majority stockholder of an eligible business.2. For any new employee who is employed for any

period less than 3 months.(c) If this credit is not fully used in any one year, the

unused amount may be carried forward for a period notto exceed 5 years. The carryover credit may be used ina subsequent year when the tax imposed by this chapterfor such year exceeds the credit for such year afterapplying the other credits and unused credit carryoversin the order provided in s. 220.02(8).(2) When filing for an enterprise zone jobs credit, a

business must file under oath with the governing body orenterprise zone development agency having jurisdictionover 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 residenceduring the taxable year, including the identifying numberassigned pursuant to s. 290.0065 to the enterprise zonein which the new employee resides if the new employeeis a person residing in an enterprise zone, and, ifapplicable, documentation that the employee is awelfare transition program participant.(b) If applicable, the name and address of each

permanent employee of the business, including, foreach 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 employeeresides.(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 eligiblebusiness is located.(e) The salary or hourly wages paid to each new

employee claimed.(f) Demonstration to the department that, on the

date of application, the total number of full-time jobs isgreater than the total was 12 months prior to that date.(g) Whether the business is a small business as

defined by s. 288.703.(3) Within 10 working days after receipt of an

application, the governing body or enterprise zonedevelopment agency shall review the application todetermine if it contains all the information requiredpursuant to subsection (2) and meets the criteria set outin this section. The governing body or agency shallcertify all applications that contain the informationrequired pursuant to subsection (2) and meet the criteriaset out in this section as eligible to receive a credit. Ifapplicable, the governing body or agency shall alsocertify if 20 percent of the employees of the business areresidents of an enterprise zone, excluding temporaryand part-time employees. The certification shall be inwriting, and a copy of the certification shall be trans-mitted to the executive director of the Department ofRevenue. The business shall be responsible for for-warding a certified application to the department.(4) It shall be the responsibility of the taxpayer to

affirmatively demonstrate to the satisfaction of thedepartment 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 fromany day of any month to the corresponding day of thenext succeeding month or, if there is no correspondingday in the next succeeding month, the last day of thesucceeding month.(6) No business which files an amended return for a

taxable year shall be allowed any amount of credit orcredit carryforward pursuant to this section in excess ofthe amount claimed by such business on its originalreturn for the taxable year. The provisions of thissubsection do not apply to increases in the amount ofcredit claimed under this section on an amended returndue to the use of any credit amount previously carriedforward for the taxable year on the original return or anyeligible 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 employmentafter July 1, 1995. The provisions of this subsectionshall not apply when a corporation converts to an Scorporation for purposes of compliance with the InternalRevenue Code of 1986, as amended; however, nocorporation shall be allowed the benefit of this credit andthe credit under s. 212.096 either for the same newemployee or for the same taxable year. In addition, sucha corporation shall not be allowed any credit under s.212.096 until it has filed notice of its intent to change itsstatus for tax purposes and until its final return under


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this chapter for the taxable year prior to such changehas been filed.(8)(a) Any person who fraudulently claims this credit

is liable for repayment of the credit, plus a mandatorypenalty in the amount of 200 percent of the credit, plusinterest at the rate provided in s. 220.807, and commitsa 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 isguilty of a felony of the third degree, punishable asprovided in s. 775.082, s. 775.083, or s. 775.084. Forpurposes of this paragraph, a grossly overstated claimmeans a claim in an amount in excess of 100 percent ofthe amount of credit allowable under this section.(9) This section, except paragraph (1)(c) and sub-

section (8), expires on the date specified in s. 290.016for the expiration of the Florida Enterprise Zone Act, anda business may not begin claiming the enterprise zonejobs credit after that date; however, the expiration of thissection does not affect the operation of any credit forwhich a business has qualified under this section beforethat date, or any carryforward of unused credit amountsas 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; s. 22, ch. 98-57; s. 59, ch. 2000-165; s. 31, ch. 2000-210; s. 7, ch. 2001-201;s. 41, ch. 2002-218; s. 25, ch. 2005-287; s. 6, ch. 2006-113; s. 24, ch. 2007-5; s. 89,ch. 2011-142; s. 49, ch. 2012-30.

220.182 Enterprise zone property tax credit.—(1)(a) Beginning July 1, 1995, there shall be allowed

a credit against the tax imposed by this chapter to anybusiness which establishes a new business as definedin s. 220.03(1)(p), expands an existing business asdefined in s. 220.03(1)(k), or rebuilds an existingbusiness as defined in s. 220.03(1)(u) in this state.The credit shall be computed annually as ad valoremtaxes paid in this state, in the case of a new business;the additional ad valorem tax paid in this state resultingfrom assessments on additional real or tangible perso-nal property acquired to facilitate the expansion of anexisting business; or the ad valorem taxes paid in thisstate resulting from assessments on property replacedor restored, in the case of a rebuilt business, includingpollution and waste control facilities, or any part thereof,and including one or more buildings or other structures,machinery, fixtures, and equipment.(b) If the credit granted pursuant to this section is

not fully used in any one year, the unused amount maybe carried forward for a period not to exceed 5 years.The carryover credit may be used in a subsequent yearwhen the tax imposed by this chapter for such yearexceeds the credit for such year under this section afterapplying the other credits and unused credit carryoversin the order provided in s. 220.02(8). The amount ofcredit taken under this section in any one year, however,shall not exceed $25,000 for each eligible location, or, ifno less than 20 percent of the employees of thebusiness at that location are residents of an enterprisezone, excluding temporary employees, the amount shallnot exceed $50,000 for each eligible location.(2) To be eligible to receive an expanded enterprise

zone property tax credit of up to $50,000 for each

eligible location, the business must provide a statement,under oath, on the form prescribed by the departmentfor claiming the credit authorized by this section, that noless than 20 percent of its employees at that location,excluding temporary and part-time employees, areresidents of an enterprise zone. It shall be a conditionprecedent to the granting of each annual tax credit thatsuch employment requirements be fulfilled throughouteach year during the 5-year period of the credit. Thestatement shall set forth the name and place ofresidence of each permanent employee on the lastday of business of the tax year for which the credit isclaimed or, if the employee is no longer employed oreligible for the credit on that date, the last calendar dayof the last full calendar month the employee wasemployed or eligible for the credit at the relevant site.(3) The credit shall be available to a new business

for a period not to exceed the year in which ad valoremtaxes are first levied against the business and the 4years immediately thereafter. The credit shall be avail-able to an expanded existing business for a period not toexceed the year in which ad valorem taxes are firstlevied on additional real or tangible personal propertyacquired to facilitate the expansion or rebuilding and the4 years immediately thereafter. No business shall beentitled to claim the credit authorized by this section,except any amount attributable to the carryover of apreviously earned credit, for more than 5 consecutiveyears.(4) To be eligible for an enterprise zone property tax

credit, a new, expanded, or rebuilt business shall file anotice with the property appraiser of the county in whichthe business property is located or to be located. Thenotice shall be filed no later than April 1 of the year inwhich new or additional real or tangible personalproperty acquired to facilitate such new, expanded, orrebuilt facility is first subject to assessment. The noticeshall be made on a form prescribed by the departmentand shall include separate descriptions of:(a) Real and tangible personal property owned or

leased by the business prior to expansion, if any.(b) Net new or additional real and tangible personal

property acquired to facilitate the new, expanded, orrebuilt facility.(5) When filing for an enterprise zone property tax

credit as a new business, a business shall include acopy of its receipt indicating payment of ad valoremtaxes for the current year.(6) When filing for an enterprise zone property tax

credit as an expanded or rebuilt business, a businessshall include copies of its receipts indicating payment ofad valorem taxes for the current year for prior existingproperty and for expansion-related or rebuilt property.(7) The receipts described in subsections (5) and

(6) shall indicate the assessed value of the property, theproperty taxes paid, a brief description of the property,and an indication, if applicable, that the property wasseparately assessed as expansion-related or rebuiltproperty.(8) The department has authority to adopt rules

pursuant to ss. 120.536(1) and 120.54 to implement theprovisions of this act.


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(9) It shall be the responsibility of the taxpayer toaffirmatively demonstrate to the satisfaction of thedepartment that he or she meets the requirements ofthis act.(10) When filing for an enterprise zone property tax

credit as an expansion of an existing business or as anew business, it shall be a condition precedent to thegranting of each annual tax credit that there have been,throughout each year during the 5-year period, no fewerthan five more employees than in the year preceding theinitial granting of the credit.(11) To apply for an enterprise zone property tax

credit, a new, expanded, or rebuilt business must fileunder oath with the governing body or enterprise zonedevelopment agency having jurisdiction over the en-terprise zone where the business is located, as applic-able, an application prescribed by the department forclaiming the credit authorized by this section. Within 10working days after receipt of an application, thegoverning body or enterprise zone development agencyshall review the application to determine if it contains allthe information required pursuant to this section andmeets the criteria set out in this section. The governingbody or agency shall certify all applications that containthe information required pursuant to this section andmeet the criteria set out in this section as eligible toreceive a credit. If applicable, the governing body oragency shall also certify if 20 percent of the employeesof the business are residents of an enterprise zone,excluding temporary and part-time employees. Thecertification shall be in writing, and a copy of thecertification shall be transmitted to the executivedirector of the Department of Revenue. The businessshall be responsible for forwarding all certified applica-tions to the department.(12) When filing for an enterprise zone property tax

credit, a business shall include the identifying numberassigned pursuant to s. 290.0065 to the enterprise zonein which the business is located.(13) When filing for an enterprise zone property tax

credit, a business shall indicate whether the business isa small business as defined by s. 288.703.(14) This section expires on the date specified in s.

290.016 for the expiration of the Florida Enterprise ZoneAct, and a business may not begin claiming theenterprise zone property tax credit after that date;however, the expiration of this section does not affectthe operation of any credit for which a business hasqualified under this section before that date, or anycarryforward of unused credit amounts as provided inparagraph (1)(b).

History.—ss. 3, 10, ch. 80-248; s. 23, ch. 81-167; s. 5, ch. 82-119; s. 21, ch.83-55; s. 88, ch. 83-217; s. 40, ch. 84-356; s. 36, ch. 85-80; s. 18, ch. 88-201; s. 52,ch. 94-136; s. 1519, ch. 95-147; s. 26, ch. 98-200; s. 32, ch. 2000-210; s. 26, ch.2005-287; s. 90, ch. 2011-142; s. 8, ch. 2013-42.

220.183 Community contribution tax credit.—(1) AUTHORIZATION TO GRANT COMMUNITY

CONTRIBUTION TAX CREDITS; LIMITATIONS ONINDIVIDUAL CREDITS AND PROGRAM SPENDING.(a) There shall be allowed a credit of 50 percent of a

community contribution against any tax due for ataxable year under this chapter.

(b) No business firm shall receive more than$200,000 in annual tax credits for all approved com-munity contributions made in any one year.(c) The total amount of tax credit which may be

granted for all programs approved under this section, s.212.08(5)(p), and s. 624.5105 is $18.4 million annuallyfor projects that provide homeownership opportunitiesfor low-income or very-low-income households asdefined in s. 420.9071 and $3.5 million annually for allother projects.(d) All proposals for the granting of the tax credit

shall require the prior approval of the Department ofEconomic Opportunity.(e) If the credit granted pursuant to this section is

not fully used in any one year because of insufficient taxliability on the part of the business firm, the unusedamount may be carried forward for a period not toexceed 5 years. The carryover credit may be used in asubsequent year when the tax imposed by this chapterfor such year exceeds the credit for such year under thissection after applying the other credits and unusedcredit carryovers in the order provided in s. 220.02(8).(f) A taxpayer who files a Florida consolidated

return as a member of an affiliated group pursuant tos. 220.131(1) may be allowed the credit on a con-solidated return basis.(g) A taxpayer who is eligible to receive the credit

provided for in s. 624.5105 is not eligible to receive thecredit provided by this section.(2) ELIGIBILITY REQUIREMENTS.—(a) All community contributions by a business firm

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

exclusively for use in projects as defined in s.220.03(1)(t).2. If, during the first 10 business days of the state

fiscal year, eligible tax credit applications for projectsthat provide homeownership opportunities for low-income or very-low-income households as defined ins. 420.9071(19) and (28) are received for less than theannual tax credits available for those projects, theDepartment of Economic Opportunity shall grant taxcredits for those applications and shall grant remainingtax credits on a first-come, first-served basis for anysubsequent eligible applications received before theend of the state fiscal year. If, during the first 10business days of the state fiscal year, eligible tax creditapplications for projects that provide homeownershipopportunities for low-income or very-low-income house-holds as defined in s. 420.9071(19) and (28) arereceived for more than the annual tax credits availablefor those projects, the Department of Economic Oppor-tunity shall grant the tax credits for those applications asfollows:a. If tax credit applications submitted for approved

projects of an eligible sponsor do not exceed $200,000in total, the credit shall be granted in full if the tax creditapplications are approved.b. If tax credit applications submitted for approved

projects of an eligible sponsor exceed $200,000 in total,the amount of tax credits granted under sub-subpara-graph a. shall be subtracted from the amount ofavailable tax credits, and the remaining credits shall


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be granted to each approved tax credit application on apro rata basis.3. If, during the first 10 business days of the state

fiscal year, eligible tax credit applications for projectsother than those that provide homeownership opportu-nities for low-income or very-low-income households asdefined in s. 420.9071(19) and (28) are received for lessthan the annual tax credits available for those projects,the Department of Economic Opportunity shall grant taxcredits for those applications and shall grant remainingtax credits on a first-come, first-served basis for anysubsequent eligible applications received before theend of the state fiscal year. If, during the first 10business days of the state fiscal year, eligible tax creditapplications for projects other than those that providehomeownership opportunities for low-income or very-low-income households as defined in s. 420.9071(19)and (28) are received for more than the annual taxcredits available for those projects, the Department ofEconomic Opportunity shall grant the tax credits forthose applications on a pro rata basis.(c) The project must be undertaken by an “eligible

sponsor,” defined here as:1. A community action program;2. A nonprofit community-based development or-

ganization whose mission is the provision of housing forlow-income or very-low-income households or increas-ing entrepreneurial and job-development opportunitiesfor low-income persons;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. A historic preservation district agency or orga-

nization;7. A regional workforce board;8. A direct-support organization as provided in s.

1009.983;9. An enterprise zone development agency cre-

ated pursuant to s. 290.0056;10. A community-based organization incorporated

under chapter 617 which is recognized as educational,charitable, or scientific pursuant to s. 501(c)(3) of theInternal Revenue Code and whose bylaws and articlesof incorporation include affordable housing, economicdevelopment, or community development as the pri-mary mission of the corporation;11. Units of local government;12. Units of state government; or13. Such other agency as the Department of Eco-

nomic Opportunity may, from time to time, designate byrule.

In no event shall a contributing business firm have afinancial interest in the eligible sponsor.(d) The project shall be located in an area desig-

nated as an enterprise zone or a Front Porch FloridaCommunity. Any project designed to construct orrehabilitate housing for low-income or very-low-incomehouseholds as defined in s. 420.9071(19) and (28) isexempt from the area requirement of this paragraph.This section does not preclude projects that propose to

construct or rehabilitate housing for low-income or very-low-income households on scattered sites. Any projectdesigned to provide increased access to high-speedbroadband capabilities which includes coverage of arural enterprise zone may locate the project’s infra-structure in any area of a rural county.(3) APPLICATION REQUIREMENTS.—(a) Any eligible sponsor wishing to participate in this

program must submit a proposal to the Department ofEconomic Opportunity which sets forth the sponsor, theproject, the area in which the project is located, andsuch supporting information as may be prescribed byrule. The proposal shall also contain a resolution fromthe local governmental unit in which it is locatedcertifying that the project is consistent with local plansand regulations.(b) Any business wishing to participate in this

program must submit an application for tax credit tothe Department of Economic Opportunity, which appli-cation sets forth the sponsor; the project; and the type,value, and purpose of the contribution. The sponsorshall verify the terms of the application and indicate itsreceipt of the contribution, which verification must be inwriting and accompany the application for tax credit.(c) The business firm must submit a separate

application for tax credit for each individual contributionthat it makes to each individual project.(4) ADMINISTRATION.—(a) The Department of Economic Opportunity has

authority to adopt rules pursuant to ss. 120.536(1) and120.54 to implement the provisions of this section,including rules for the approval or disapproval ofproposals by business firms.(b) The decision of the Department of Economic

Opportunity shall be in writing, and, if approved, thenotification must state the maximum credit allowable tothe business firm. A copy of the decision shall betransmitted to the executive director of the Departmentof Revenue, who shall apply such credit to the taxliability of the business firm.(c) The Department of Economic Opportunity shall

periodically monitor all projects in a manner consistentwith available resources to ensure that resources areutilized in accordance with this section; however, eachproject shall be reviewed no less often than once every2 years.(d) The Department of Revenue has authority to

adopt rules pursuant to ss. 120.536(1) and 120.54 toimplement the provisions of this section.(e) The Department of Economic Opportunity shall,

in consultation with the Florida Housing Finance Cor-poration and the statewide and regional housing andfinancial intermediaries, market the availability of thecommunity contribution tax credit program to commu-nity-based organizations.(5) EXPIRATION.—The provisions of this section,

except paragraph (1)(e), expire and are void on June30, 2016.

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;s. 27, ch. 98-200; s. 1, ch. 98-219; s. 1, ch. 99-265; s. 26, ch. 2000-210; s. 8, ch.2001-201; s. 925, ch. 2002-387; s. 9, ch. 2004-243; s. 3, ch. 2005-282; s. 2, ch.2006-78; s. 25, ch. 2007-5; s. 35, ch. 2008-153; s. 6, ch. 2010-4; s. 3, ch. 2011-97; s.91, ch. 2011-142; s. 28, ch. 2012-96; s. 15, ch. 2014-38.


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220.184 Hazardous waste facility tax credit.—(1) A credit against the tax imposed by this chapter

shall be allowed to the owner of any commercialhazardous waste facility who incurs expenses forhydrologic, geologic, or soil site evaluations and permitfees required by the Department of EnvironmentalProtection, which credit shall be equal to the amountof such expenses incurred.(2) A credit against the tax imposed by this chapter

shall be allowed to the owner of any commercialhazardous waste recycling facility permitted by thestate, which credit shall be an amount equal to 5percent of the cost of the stationary facility equipmentplaced in service during the taxable year and used forthe recycling of hazardous wastes.(3) If any credit granted pursuant to this section is

not fully used in the first year for which it becomesavailable, the unused amount may be carried forwardfor a period not to exceed 5 years. The carryover may beused in a subsequent year when the tax imposed by thischapter for such year exceeds the credit for such yearunder this section after applying the other credits andunused credit carryovers in the order provided in s.220.02(8).

History.—s. 18, ch. 83-310; s. 20, ch. 88-201; s. 57, ch. 94-356; s. 33, ch.2000-210.

220.1845 Contaminated site rehabilitation taxcredit.—(1) APPLICATION FOR TAX CREDIT.—A site

rehabilitation application must be received by theDivision of Waste Management of the Department ofEnvironmental Protection by January 31 of the yearafter the calendar year for which site rehabilitation costsare being claimed in a tax credit application. All siterehabilitation costs claimed must have been for workconducted between January 1 and December 31 of theyear for which the application is being submitted. Allpayment requests must have been received and allcosts must have been paid prior to submittal of the taxcredit application, but no later than January 31 of theyear after the calendar year for which site rehabilitationcosts are being claimed.(2) AUTHORIZATION FOR TAX CREDIT; LIMITA-

TIONS.—(a) A credit in the amount of 50 percent of the costs

of voluntary cleanup activity that is integral to siterehabilitation at the following sites is available againstany tax due for a taxable year under this chapter:1. A drycleaning-solvent-contaminated site eligible

for state-funded site rehabilitation under s. 376.3078(3);2. A drycleaning-solvent-contaminated site at

which site rehabilitation is undertaken by the realproperty owner pursuant to s. 376.3078(11), if the realproperty owner is not also, and has never been, theowner or operator of the drycleaning facility where thecontamination exists; or3. A brownfield site in a designated brownfield area

under s. 376.80.(b) A tax credit applicant, or multiple tax credit

applicants working jointly to clean up a single site,may not be granted more than $500,000 per year in taxcredits for each site voluntarily rehabilitated. Multiple taxcredit applicants shall be granted tax credits in the same

proportion as their contribution to payment of cleanupcosts. Subject to the same conditions and limitations asprovided in this section, a municipality, county, or othertax credit applicant which voluntarily rehabilitates a sitemay receive not more than $500,000 per year in taxcredits which it can subsequently transfer subject to theprovisions in paragraph (g).(c) If the credit granted under this section is not fully

used in any one year because of insufficient tax liabilityon the part of the corporation, the unused amount maybe carried forward for up to 5 years. The carryover creditmay be used in a subsequent year if the tax imposed bythis chapter for that year exceeds the credit for whichthe corporation is eligible in that year after applying theother credits and unused carryovers in the orderprovided by s. 220.02(8). If during the 5-year periodthe credit is transferred, in whole or in part, pursuant toparagraph (g), each transferee has 5 years after thedate of transfer to use its credit.(d) A taxpayer that files a consolidated return in this

state as a member of an affiliated group under s.220.131(1) may be allowed the credit on a consolidatedreturn basis up to the amount of tax imposed upon theconsolidated group.(e) A tax credit applicant that receives state-funded

site rehabilitation under s. 376.3078(3) for rehabilitationof a drycleaning-solvent-contaminated site is ineligibleto receive credit under this section for costs incurred bythe tax credit applicant in conjunction with the rehabi-litation of that site during the same time period thatstate-administered site rehabilitation was underway.

1(f) The total amount of the tax credits which may begranted under this section is $5 million annually.(g)1. Tax credits that may be available under this

section to an entity eligible under s. 376.30781 may betransferred after a merger or acquisition to the survivingor acquiring entity and used in the same manner andwith the same limitations.2. The entity or its surviving or acquiring entity as

described in subparagraph 1., may transfer any unusedcredit in whole or in units of at least 25 percent of theremaining credit. The entity acquiring such credit mayuse it in the same manner and with the same limitationas described in this section. Such transferred creditsmay not be transferred again although they maysucceed to a surviving or acquiring entity subject tothe same conditions and limitations as described in thissection.3. If the credit is reduced due to a determination by

the Department of Environmental Protection or anexamination or audit by the Department of Revenue,the tax deficiency shall be recovered from the first entity,or the surviving or acquiring entity that claimed the creditup to the amount of credit taken. Any subsequentdeficiencies shall be assessed against the entityacquiring and claiming the credit, or in the case ofmultiple succeeding entities in the order of creditsuccession.(h) In order to encourage completion of site reha-

bilitation at contaminated sites being voluntarily cleanedup and eligible for a tax credit under this section, the taxcredit applicant may claim an additional 25 percent ofthe total cleanup costs, not to exceed $500,000, in the


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final year of cleanup as evidenced by the Department ofEnvironmental Protection issuing a “No Further Action”order for that site.(i) In order to encourage the construction of hous-

ing that meets the definition of affordable provided in s.420.0004, an applicant for the tax credit may claim anadditional 25 percent of the total site rehabilitation coststhat are eligible for tax credits under this section, not toexceed $500,000. In order to receive this additional taxcredit, the applicant must provide a certification letterfrom the Florida Housing Finance Corporation, the localhousing authority, or other governmental agency that isa party to the use agreement indicating that theconstruction on the brownfield site has received acertificate of occupancy and the brownfield site has aproperly recorded instrument that limits the use of theproperty to housing that meets the definition of afford-able provided in s. 420.0004.(j) In order to encourage the redevelopment of a

brownfield site, as defined in the brownfield siterehabilitation agreement, that is hindered by the pre-sence of solid waste, as defined in s. 403.703, a taxcredit applicant, or multiple tax credit applicants workingjointly to clean up a single brownfield site, may alsoclaim costs required to address solid waste removal asdefined in this paragraph in accordance with rules of theDepartment of Environmental Protection. Multiple taxcredit applicants shall be granted tax credits in the sameproportion as each applicant’s contribution to paymentof solid waste removal costs. These costs are eligible fora tax credit provided the applicant submits an affidavitstating that, after consultation with appropriate localgovernment officials and the Department of Environ-mental Protection, to the best of the applicant’s knowl-edge according to such consultation and availablehistorical records, the brownfield site was never oper-ated as a permitted solid waste disposal area or wasnever operated for monetary compensation and theapplicant submits all other documentation and certifica-tions required by this section. Under this section,wherever reference is made to “site rehabilitation,” theDepartment of Environmental Protection shall insteadconsider whether or not the costs claimed are for solidwaste removal. Tax credit applications claiming costspursuant to this paragraph shall not be subject to thecalendar-year limitation and January 31 annual applica-tion deadline, and the Department of EnvironmentalProtection shall accept a one-time application filedsubsequent to the completion by the tax credit applicantof the applicable requirements listed in this section. Atax credit applicant may claim 50 percent of the cost forsolid waste removal, not to exceed $500,000, after theapplicant has determined solid waste removal is com-pleted for the brownfield site. A solid waste removal taxcredit application may be filed only once per brownfieldsite. For the purposes of this section, the term:1. “Solid waste disposal area” means a landfill,

dump, or other area where solid waste has beendisposed of.2. “Monetary compensation” means the fees that

were charged or the assessments that were levied forthe disposal of solid waste at a solid waste disposalarea.

3. “Solid waste removal” means removal of solidwaste from the land surface or excavation of solid wastefrom below the land surface and removal of the solidwaste from the brownfield site. The term also includes:a. Transportation of solid waste to a licensed or

exempt solid waste management facility or to atemporary storage area.b. Sorting or screening of solid waste prior to

removal from the site.c. Deposition of solid waste at a permitted or

exempt solid waste management facility, whether thesolid waste is disposed of or recycled.(k) In order to encourage the construction and

operation of a new health care facility as defined in s.408.032 or s. 408.07, or a health care provider asdefined in s. 408.07 or s. 408.7056, on a brownfield site,an applicant for a tax credit may claim an additional 25percent of the total site rehabilitation costs, not toexceed $500,000, if the applicant meets the require-ments of this paragraph. In order to receive thisadditional tax credit, the applicant must provide doc-umentation indicating that the construction of the healthcare facility or health care provider by the applicant onthe brownfield site has received a certificate of occu-pancy or a license or certificate has been issued for theoperation of the health care facility or health careprovider.(3) FILING REQUIREMENTS.—Any corporation

that wishes to obtain credit under this section mustsubmit with its return a tax credit certificate approvingtax credits issued by the Department of EnvironmentalProtection under s. 376.30781.(4) ADMINISTRATION; AUDIT AUTHORITY; TAX

CREDIT FORFEITURE.—(a) The Department of Revenue may adopt rules to

prescribe any necessary forms required to claim a taxcredit under this section and to provide the adminis-trative guidelines and procedures required to administerthis section.(b) In addition to its existing audit and investigation

authority relating to this chapter, the Department ofRevenue may perform any additional financial andtechnical audits and investigations, including examiningthe accounts, books, or records of the tax creditapplicant, which are necessary to verify the siterehabilitation costs included in a tax credit return andto ensure compliance with this section. The Departmentof Environmental Protection shall provide technicalassistance, when requested by the Department ofRevenue, on any technical audits performed pursuantto this section.(c) It is grounds for forfeiture of previously claimed

and received tax credits if the Department of Revenuedetermines, as a result of either an audit or informationreceived from the Department of Environmental Protec-tion, that a taxpayer received tax credits pursuant to thissection to which the taxpayer was not entitled. In thecase of fraud, the taxpayer shall be prohibited fromclaiming any future tax credits under this section.1. The taxpayer is responsible for returning for-

feited tax credits to the Department of Revenue, andsuch funds shall be paid into the General Revenue Fundof the state.


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2. The taxpayer shall file with the Department ofRevenue an amended tax return or such other report asthe Department of Revenue prescribes by rule and shallpay any required tax within 60 days after the taxpayerreceives notification from the Department of Environ-mental Protection pursuant to s. 376.30781 that pre-viously approved tax credits have been revoked ormodified, if uncontested, or within 60 days after a finalorder is issued following proceedings involving a con-tested revocation or modification order.3. A notice of deficiency may be issued by the

Department of Revenue at any time within 5 years afterthe date the taxpayer receives notification from theDepartment of Environmental Protection pursuant to s.376.30781 that previously approved tax credits havebeen revoked or modified. If a taxpayer fails to notify theDepartment of Revenue of any change in its tax creditclaimed, a notice of deficiency may be issued at anytime. In either case, the amount of any proposedassessment set forth in such notice of deficiency shallbe limited to the amount of any deficiency resultingunder this section from the recomputation of thetaxpayer’s tax for the taxable year.4. Any taxpayer that fails to report and timely pay

any tax due as a result of the forfeiture of its tax credit isin violation of this section and is subject to applicablepenalty and interest.

History.—s. 3, ch. 98-189; s. 34, ch. 2000-210; s. 3, ch. 2003-173; s. 2, ch.2006-291; s. 21, ch. 2006-312; s. 2, ch. 2008-239; s. 59, ch. 2010-205; s. 12, ch.2011-76.




220.185 State housing tax credit.—(1) DEFINITIONS.—As used in this section, the

term:(a) “Credit period” means the period of 5 years

beginning with the year the project is completed.(b) “Eligible basis” means a project’s adjusted basis

of the housing portion of the qualified project as of theclose of the first taxable year of the credit period.(c) “Adjusted basis” means the owner’s adjusted

basis in the project, calculated in a manner consistentwith the calculation of basis under the Internal RevenueCode, taking into account the adjusted basis of propertyof a character subject to the allowance for depreciationused in common areas or provided as comparableamenities to the entire project.(d) “Designated project” means a qualified project

designated pursuant to s. 420.5093 to receive the taxcredit under this section.(e) “Qualified project” means a project located in an

urban infill area, at least 50 percent of which, on a costbasis, consists of a qualified low-income project withinthe meaning of s. 42(g) of the Internal Revenue Code,including such projects designed specifically for theelderly but excluding any income restrictions imposedpursuant to s. 42(g) of the Internal Revenue Code uponresidents of the project unless such restrictions areotherwise established by the Florida Housing FinanceCorporation pursuant to s. 420.5093, and the remainder

of which constitutes commercial or single-family resi-dential development consistent with and serving tocomplement the qualified low-income project.(f) “Urban infill area” means an area designated for

urban infill as defined by s. 163.3164 or as definedthrough a statewide urban infill study solicited andapproved by the Board of Directors of the FloridaHousing Finance Corporation.(2) AUTHORIZATION TO GRANT STATE HOUS-

ING TAX CREDITS; LIMITATION.—(a) There shall be allowed a credit of up to 9

percent, but no more than necessary to make theproject feasible, of the eligible basis of any designatedproject for each year of the credit period against any taxdue for a taxable year under this chapter.(b) The total amount of tax credits allocated for all

projects shall not exceed the amount appropriated forthe State Housing Tax Credit Program in the GeneralAppropriations Act. The total tax credits allocated isdefined as the total credits pledged over a 5-year periodfor all projects.(c) The tax credit shall be allocated among desig-

nated projects by the Florida Housing Finance Corpora-tion as provided in s. 420.5093.(d) Each designated project must comply with the

applicable provisions of s. 42 of the Internal RevenueCode with respect to the multifamily residential rentalhousing element of the project, including specifically theprovisions of s. 42(h)(6).(e) A tax credit shall be allocated to a designated

project and shall not be subject to transfer by therecipient unless the transferee is also an owner of thedesignated project.

History.—s. 19, ch. 99-378; s. 27, ch. 2000-210.

220.186 Credit for Florida alternative minimumtax.—(1) A taxpayer required to determine taxable income

pursuant to s. 220.13(2)(k) shall be allowed a creditagainst the tax imposed by this chapter in any sub-sequent taxable years.(2) The credit pursuant to this section shall be the

amount of the excess, if any, of the tax paid based upontaxable income determined pursuant to s. 220.13(2)(k)over the amount of tax which would have been duebased upon taxable income without application of s.220.13(2)(k), before application of this credit withoutapplication of any credit under s. 220.1875.(3) The amount of credit allowable in any subse-

quent taxable years shall not exceed the excess, if any,of the amount of tax computed under this chapterwithout application of s. 220.13(2)(k) over the amount oftax computed with application of s. 220.13(2)(k),whether or not such paragraph is required to computetaxable income for the year.


220.1875 Credit for contributions to eligiblenonprofit scholarship-funding organizations.—(1) There is allowed a credit of 100 percent of an

eligible contribution made to an eligible nonprofitscholarship-funding organization under s. 1002.395against any tax due for a taxable year under this


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chapter after the application of any other allowablecredits by the taxpayer. The credit granted by thissection shall be reduced by the difference between theamount of federal corporate income tax taking intoaccount the credit granted by this section and theamount of federal corporate income tax without applica-tion of the credit granted by this section.(2) A taxpayer who files a Florida consolidated

return as a member of an affiliated group pursuant tos. 220.131(1) may be allowed the credit on a con-solidated return basis; however, the total credit taken bythe affiliated group is subject to the limitation estab-lished under subsection (1).(3) The provisions of s. 1002.395 apply to the credit

authorized by this section.History.—s. 9, ch. 2010-24; s. 1, ch. 2011-123.

220.1895 Rural Job Tax Credit and Urban High-Crime Area Job Tax Credit.—There shall be allowed acredit against the tax imposed by this chapter amountsapproved by the Department of Economic Opportunitypursuant to the Rural Job Tax Credit Program in s.212.098 and the Urban High-Crime Area Job Tax CreditProgram in s. 212.097. A corporation that uses its creditagainst the tax imposed by this chapter may not take thecredit against the tax imposed by chapter 212. If anycredit granted under this section is not fully used in thefirst year for which it becomes available, the unusedamount may be carried forward for a period not toexceed 5 years. The carryover may be used in asubsequent year when the tax imposed by this chapterfor such year exceeds the credit for such year under thissection after applying the other credits and unusedcredit carryovers in the order provided in s. 220.02(8).


220.1899 Entertainment industry tax credit.—(1) There shall be a credit allowed against the tax

imposed by this chapter in the amounts awarded by theDepartment of Economic Opportunity under the enter-tainment industry financial incentive program in s.288.1254.(2) A qualified production company as defined in s.

288.1254 that is awarded a tax credit under s. 288.1254may not claim the credit before July 1, 2011, regardlessof when the credit is awarded.(3) To the extent that the amount of a tax credit

exceeds the amount due on a return, the balance of thecredit may be carried forward to a succeeding taxableyear pursuant to s. 288.1254(4)(e).

History.—s. 14, ch. 2010-147; s. 94, ch. 2011-142.

220.19 Child care tax credits.—(1) If the credit granted under this section is not fully

used in any one year because of insufficient tax liabilityon the part of the corporation, the unused amount maybe carried forward for a period not to exceed 5 years.The carryover credit may be used in a subsequent yearwhen the tax imposed by this chapter for that yearexceeds the credit for which the corporation is eligible inthat year under this section after applying the othercredits and unused carryovers in the order provided bys. 220.02(8).

(2) If a corporation receives a credit for child carefacility startup costs, and the facility fails to operate for atleast 5 years, a pro rata share of the credit must berepaid, in accordance with the formula: A = C x (1 - (N/60)), where:(a) “A” is the amount in dollars of the required

repayment.(b) “C” is the total credits taken by the corporation

for child care facility startup costs.(c) “N” is the number of months the facility was in

operation.

This repayment requirement is inapplicable if thecorporation goes out of business or can demonstrateto the department that its employees no longer want tohave a child care facility.

History.—s. 4, ch. 98-293; s. 36, ch. 2000-210; s. 5, ch. 2009-20.

220.191 Capital investment tax credit.—(1) DEFINITIONS.—For purposes of this section:(a) “Commencement of operations” means the

beginning of active operations by a qualifying businessof the principal function for which a qualifying projectwas constructed.(b) “Cumulative capital investment” means the total

capital investment in land, buildings, and equipmentmade in connection with a qualifying project during theperiod from the beginning of construction of the projectto the commencement of operations.(c) “Eligible capital costs” means all expenses

incurred by a qualifying business in connection withthe acquisition, construction, installation, and equippingof a qualifying project during the period from thebeginning of construction of the project to the com-mencement of operations, including, but not limited to:1. The costs of acquiring, constructing, installing,

equipping, and financing a qualifying project, includingall obligations incurred for labor and obligations tocontractors, subcontractors, builders, and materialmen.2. The costs of acquiring land or rights to land and

any cost incidental thereto, including recording fees.3. The costs of architectural and engineering

services, including test borings, surveys, estimates,plans and specifications, preliminary investigations,environmental mitigation, and supervision of construc-tion, as well as the performance of all duties required byor consequent to the acquisition, construction, installa-tion, and equipping of a qualifying project.4. The costs associated with the installation of

fixtures and equipment; surveys, including archaeolo-gical and environmental surveys; site tests and inspec-tions; subsurface site work and excavation; removal ofstructures, roadways, and other surface obstructions;filling, grading, paving, and provisions for drainage,storm water retention, and installation of utilities,including water, sewer, sewage treatment, gas, elec-tricity, communications, and similar facilities; and offsiteconstruction of utility extensions to the boundaries of theproperty.

Eligible capital costs shall not include the cost of anyproperty previously owned or leased by the qualifyingbusiness.


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(d) “Income generated by or arising out of thequalifying project” means the qualifying project’s annualtaxable income as determined by generally acceptedaccounting principles and under s. 220.13.(e) “Jobs” means full-time equivalent positions, as

that term is consistent with terms used by the Depart-ment of Economic Opportunity and the United StatesDepartment of Labor for purposes of reemploymentassistance tax administration and employment estima-tion, resulting directly from a project in this state. Theterm does not include temporary construction jobsinvolved in the construction of the project facility.(f) “Qualifying business” means a business which

establishes a qualifying project in this state and which iscertified by the Department of Economic Opportunity toreceive tax credits pursuant to this section.(g) “Qualifying project” means a facility in this state

meeting one or more of the following criteria:1. A new or expanding facility in this state which

creates at least 100 new jobs in this state and is in one ofthe high-impact sectors identified by Enterprise Florida,Inc., and certified by the Department of EconomicOpportunity pursuant to s. 288.108(6), including, butnot limited to, aviation, aerospace, automotive, andsilicon technology industries. However, between July 1,2011, and June 30, 2014, the requirement that a facilitybe in a high-impact sector is waived for any otherwiseeligible business from another state which locates all ora portion of its business to a Disproportionally AffectedCounty. For purposes of this section, the term “Dis-proportionally Affected County” means Bay County,Escambia County, Franklin County, Gulf County, Oka-loosa County, Santa Rosa County, Walton County, orWakulla County.2. A new or expanded facility in this state which is

engaged in a target industry designated pursuant to theprocedure specified in s. 288.106(2) and which isinduced by this credit to create or retain at least 1,000jobs in this state, provided that at least 100 of those jobsare new, pay an annual average wage of at least 130percent of the average private sector wage in the areaas defined in s. 288.106(2), and make a cumulativecapital investment of at least $100 million. Jobs may beconsidered retained only if there is significant evidencethat the loss of jobs is imminent. Notwithstandingsubsection (2), annual credits against the tax imposedby this chapter may not exceed 50 percent of theincreased annual corporate income tax liability or thepremium tax liability generated by or arising out of aproject qualifying under this subparagraph. A facility thatqualifies under this subparagraph for an annual creditagainst the tax imposed by this chapter may take the taxcredit for a period not to exceed 5 years.3. A new or expanded headquarters facility in this

state which locates in an enterprise zone and brownfieldarea and is induced by this credit to create at least 1,500jobs which on average pay at least 200 percent of thestatewide average annual private sector wage, aspublished by the Department of Economic Opportunity,and which new or expanded headquarters facilitymakes a cumulative capital investment in this state ofat least $250 million.

(2)(a) An annual credit against the tax imposed bythis chapter shall be granted to any qualifying businessin an amount equal to 5 percent of the eligible capitalcosts generated by a qualifying project, for a period notto exceed 20 years beginning with the commencementof operations of the project. Unless assigned asdescribed in this subsection, the tax credit shall begranted against only the corporate income tax liability orthe premium tax liability generated by or arising out ofthe qualifying project, and the sum of all tax creditsprovided pursuant to this section shall not exceed 100percent of the eligible capital costs of the project. In noevent may any credit granted under this section becarried forward or backward by any qualifying businesswith respect to a subsequent or prior year. The annualtax credit granted under this section shall not exceed thefollowing percentages of the annual corporate incometax liability or the premium tax liability generated by orarising out of a qualifying project:1. One hundred percent for a qualifying project

which results in a cumulative capital investment of atleast $100 million.2. Seventy-five percent for a qualifying project

which results in a cumulative capital investment of atleast $50 million but less than $100 million.3. Fifty percent for a qualifying project which results

in a cumulative capital investment of at least $25 millionbut less than $50 million.(b) A qualifying project which results in a cumulative

capital investment of less than $25 million is not eligiblefor the capital investment tax credit. An insurancecompany claiming a credit against premium tax liabilityunder this program shall not be required to pay anyadditional retaliatory tax levied pursuant to s. 624.5091as a result of claiming such credit. Because creditsunder this section are available to an insurancecompany, s. 624.5091 does not limit such credit inany manner.(c) A qualifying business that establishes a qualify-

ing project that includes locating a new solar panelmanufacturing facility in this state that generates aminimum of 400 jobs within 6 months after commence-ment of operations with an average salary of at least$50,000 may assign or transfer the annual credit, or anyportion thereof, granted under this section to any otherbusiness. However, the amount of the tax credit thatmay be transferred in any year shall be the lesser of thequalifying business’s state corporate income tax liabilityfor that year, as limited by the percentages applicableunder paragraph (a) and as calculated prior to takingany credit pursuant to this section, or the credit amountgranted for that year. A business receiving the trans-ferred or assigned credits may use the credits only in theyear received, and the credits may not be carriedforward or backward. To perfect the transfer, thetransferor shall provide the department with a writtentransfer statement notifying the department of thetransferor’s intent to transfer the tax credits to thetransferee; the date the transfer is effective; thetransferee’s name, address, and federal taxpayeridentification number; the tax period; and the amountof tax credits to be transferred. The department shall,upon receipt of a transfer statement conforming to the


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requirements of this paragraph, provide the transfereewith a certificate reflecting the tax credit amountstransferred. A copy of the certificate must be attachedto each tax return for which the transferee seeks toapply such tax credits.(d) If the credit granted under subparagraph (a)1. is

not fully used in any one year because of insufficient taxliability on the part of the qualifying business, theunused amounts may be used in any one year oryears beginning with the 21st year after the commence-ment of operations of the project and ending the 30thyear after the commencement of operations of theproject.(3)(a) Notwithstanding subsection (2), an annual

credit against the tax imposed by this chapter shall begranted to a qualifying business which establishes aqualifying project pursuant to subparagraph (1)(g)3., inan amount equal to the lesser of $15 million or 5 percentof the eligible capital costs made in connection with aqualifying project, for a period not to exceed 20 yearsbeginning with the commencement of operations of theproject. The tax credit shall be granted against thecorporate income tax liability of the qualifying businessand as further provided in paragraph (c). The total taxcredit provided pursuant to this subsection shall beequal to no more than 100 percent of the eligible capitalcosts of the qualifying project.(b) If the credit granted under this subsection is not

fully used in any one year because of insufficient taxliability on the part of the qualifying business, theunused amount may be carried forward for a periodnot to exceed 20 years after the commencement ofoperations of the project. The carryover credit may beused in a subsequent year when the tax imposed by thischapter for that year exceeds the credit for which thequalifying business is eligible in that year under thissubsection after applying the other credits and unusedcarryovers in the order provided by s. 220.02(8).(c) The credit granted under this subsection may be

used in whole or in part by the qualifying business or anycorporation that is either a member of that qualifyingbusiness’s affiliated group of corporations, is a relatedentity taxable as a cooperative under subchapter T ofthe Internal Revenue Code, or, if the qualifying businessis an entity taxable as a cooperative under subchapter Tof the Internal Revenue Code, is related to the qualifyingbusiness. Any entity related to the qualifying businessmay continue to file as a member of a Florida-nexusconsolidated group pursuant to a prior election madeunder s. 220.131(1), Florida Statutes (1985), even if theparent of the group changes due to a direct or indirectacquisition of the former common parent of the group.Any credit can be used by any of the affiliatedcompanies or related entities referenced in this para-graph to the same extent as it could have been used bythe qualifying business. However, any such use shallnot operate to increase the amount of the credit orextend the period within which the credit must be used.(4) Prior to receiving tax credits pursuant to this

section, a qualifying business must achieve and main-tain the minimum employment goals beginning with thecommencement of operations at a qualifying project and

continuing each year thereafter during which tax creditsare available pursuant to this section.(5) Applications shall be reviewed and certified

pursuant to s. 288.061. The Department of EconomicOpportunity, upon a recommendation by EnterpriseFlorida, Inc., shall first certify a business as eligible toreceive tax credits pursuant to this section prior to thecommencement of operations of a qualifying project,and such certification shall be transmitted to theDepartment of Revenue. Upon receipt of the certifica-tion, the Department of Revenue shall enter into awritten agreement with the qualifying business specify-ing, at a minimum, the method by which incomegenerated by or arising out of the qualifying projectwill be determined.(6) The Department of Economic Opportunity, in

consultation with Enterprise Florida, Inc., is authorizedto develop the necessary guidelines and applicationmaterials for the certification process described insubsection (5).(7) It shall be the responsibility of the qualifying

business to affirmatively demonstrate to the satisfactionof the Department of Revenue that such businessmeets the job creation and capital investment require-ments of this section.(8) The Department of Revenue may specify by rule

the methods by which a project’s pro forma annualtaxable income is determined.

History.—s. 2, ch. 98-61; s. 64, ch. 99-251; s. 6, ch. 2003-36; s. 1, ch. 2003-270;s. 17, ch. 2004-5; s. 10, ch. 2005-3; s. 5, ch. 2005-282; s. 1, ch. 2006-55; s. 10, ch.2008-227; s. 8, ch. 2009-51; s. 3, ch. 2010-136; s. 95, ch. 2011-142; s. 1, ch.2011-223; s. 50, ch. 2012-30.

220.192 Renewable energy technologies invest-ment tax credit.—(1) DEFINITIONS.—For purposes of this section,

the term:(a) “Biodiesel” means biodiesel as defined in s.

212.08(7)(hhh).(b) “Corporation” includes a general partnership,

limited partnership, limited liability company, unincorpo-rated business, or other business entity, includingentities taxed as partnerships for federal income taxpurposes.(c) “Eligible costs” means 75 percent of all capital

costs, operation and maintenance costs, and researchand development costs incurred between July 1, 2012,and June 30, 2016, not to exceed $1 million per statefiscal year for each taxpayer and up to a limit of $10million per state fiscal year for all taxpayers, in connec-tion with an investment in the production, storage, anddistribution of biodiesel (B10-B100), ethanol (E10-E100), and other renewable fuel in the state, includingthe costs of constructing, installing, and equipping suchtechnologies in the state. Gasoline fueling station pumpretrofits for biodiesel (B10-B100), ethanol (E10-E100),and other renewable fuel distribution qualify as aneligible cost under this section.(d) “Ethanol” means ethanol as defined in s.

212.08(7)(hhh).(e) “Renewable fuel” means a fuel produced from

biomass that is used to replace or reduce the quantity offossil fuel present in motor fuel or diesel fuel. “Biomass”means biomass as defined in s. 366.91, “motor fuel”


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means motor fuel as defined in s. 206.01, and “dieselfuel” means diesel fuel as defined in s. 206.86.(f) “Taxpayer” includes a corporation as defined in

paragraph (b) or s. 220.03.(2) TAX CREDIT.—For tax years beginning on or

after January 1, 2013, a credit against the tax imposedby this chapter shall be granted in an amount equal tothe eligible costs. Credits may be used in tax yearsbeginning January 1, 2013, and ending December 31,2016, after which the credit shall expire. If the credit isnot fully used in any one tax year because of insufficienttax liability on the part of the corporation, the unusedamount may be carried forward and used in tax yearsbeginning January 1, 2013, and ending December 31,2018, after which the credit carryover expires and maynot be used. A taxpayer that files a consolidated returnin this state as a member of an affiliated group under s.220.131(1) may be allowed the credit on a consolidatedreturn basis up to the amount of tax imposed upon theconsolidated group. Any eligible cost for which a creditis claimed and which is deducted or otherwise reducesfederal taxable income shall be added back in comput-ing adjusted federal income under s. 220.13.(3) CORPORATE APPLICATION PROCESS.—

Any corporation wishing to obtain tax credits availableunder this section must submit to the Department ofAgriculture and Consumer Services an application fortax credit that includes a complete description of alleligible costs for which the corporation is seeking acredit and a description of the total amount of creditssought. The Department of Agriculture and ConsumerServices shall make a determination on the eligibility ofthe applicant for the credits sought and certify thedetermination to the applicant and the Department ofRevenue. The corporation must attach the Departmentof Agriculture and Consumer Services’ certification tothe tax return on which the credit is claimed. TheDepartment of Agriculture and Consumer Services isresponsible for ensuring that the corporate income taxcredits granted in each fiscal year do not exceed thelimits provided for in this section. The Department ofAgriculture and Consumer Services may adopt thenecessary rules and forms for the application process.(4) TAXPAYER APPLICATION PROCESS.—To

claim a credit under this section, each taxpayer mustapply to the Department of Agriculture and ConsumerServices for an allocation of each type of annual creditby the date established by the Department of Agricul-ture and Consumer Services. The application formadopted by rule of the Department of Agriculture andConsumer Services must include an affidavit from eachtaxpayer certifying that all information contained in theapplication, including all records of eligible costsclaimed as the basis for the tax credit, are true andcorrect. Approval of the credits under this section is on afirst-come, first-served basis, based upon the datecomplete applications are received by the Departmentof Agriculture and Consumer Services. A taxpayer mustsubmit only one complete application based uponeligible costs incurred within a particular state fiscalyear. Incomplete placeholder applications will not beaccepted and will not secure a place in the first-come,first-served application line. If a taxpayer does not

receive a tax credit allocation due to the exhaustion ofthe annual tax credit authorizations, then such taxpayermay reapply in the following year for those eligible costsand will have priority over other applicants for theallocation of credits. If the annual tax credit authoriza-tion amount is not exhausted by allocations of creditswithin that particular state fiscal year, any authorized butunallocated credit amounts may be used to grant creditsthat were earned pursuant to s. 220.193 but unallocateddue to a lack of authorized funds.(5) ADMINISTRATION; AUDIT AUTHORITY; RE-

CAPTURE OF CREDITS.—(a) In addition to its existing audit and investigation

authority, the Department of Revenue may perform anyadditional financial and technical audits and investiga-tions, including examining the accounts, books, andrecords of the tax credit applicant, which are necessaryto verify the eligible costs included in the tax creditreturn and to ensure compliance with this section. TheDepartment of Agriculture and Consumer Services shallprovide technical assistance when requested by theDepartment of Revenue on any technical audits orexaminations performed pursuant to this section.(b) It is grounds for forfeiture of previously claimed

and received tax credits if the Department of Revenuedetermines, as a result of an audit or examination orfrom information received from the Department ofAgriculture and Consumer Services, that a taxpayerreceived tax credits pursuant to this section to which thetaxpayer was not entitled. The taxpayer is responsiblefor returning forfeited tax credits to the Department ofRevenue, and such funds shall be paid into the GeneralRevenue Fund of the state.(c) The Department of Agriculture and Consumer

Services may revoke or modify any written decisiongranting eligibility for tax credits under this section if it isdiscovered that the tax credit applicant submitted anyfalse statement, representation, or certification in anyapplication, record, report, plan, or other document filedin an attempt to receive tax credits under this section.The Department of Agriculture and Consumer Servicesshall immediately notify the Department of Revenue ofany revoked or modified orders affecting previouslygranted tax credits. Additionally, the taxpayer mustnotify the Department of Revenue of any change in itstax credit claimed.(d) The taxpayer shall file with the Department of

Revenue an amended return or such other report as theDepartment of Revenue prescribes by rule and shall payany required tax and interest within 60 days after thetaxpayer receives notification from the Department ofAgriculture and Consumer Services that previouslyapproved tax credits have been revoked or modified.If the revocation or modification order is contested, thetaxpayer shall file an amended return or other report asprovided in this paragraph within 60 days after a finalorder is issued after proceedings.(e) A notice of deficiency may be issued by the

Department of Revenue at any time within 3 years afterthe taxpayer receives formal notification from theDepartment of Agriculture and Consumer Servicesthat previously approved tax credits have been revokedor modified. If a taxpayer fails to notify the Department


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of Revenue of any changes to its tax credit claimed, anotice of deficiency may be issued at any time.(6) TRANSFERABILITY OF CREDIT.—(a) For tax years beginning on or after January 1,

2014, any corporation or subsequent transferee alloweda tax credit under this section may transfer the credit, inwhole or in part, to any taxpayer by written agreementwithout transferring any ownership interest in theproperty generating the credit or any interest in theentity owning such property. The transferee is entitled toapply the credits against the tax with the same effect asif the transferee had incurred the eligible costs.(b) To perfect the transfer, the transferor shall

provide the Department of Revenue with a writtentransfer statement notifying the Department of Revenueof the transferor’s intent to transfer the tax credits to thetransferee; the date the transfer is effective; thetransferee’s name, address, and federal taxpayeridentification number; the tax period; and the amountof tax credits to be transferred. The Department ofRevenue shall, upon receipt of a transfer statementconforming to the requirements of this section, providethe transferee with a certificate reflecting the tax creditamounts transferred. A copy of the certificate must beattached to each tax return for which the transfereeseeks to apply such tax credits.(c) A tax credit authorized under this section that is

held by a corporation and not transferred under thissubsection shall be passed through to the taxpayersdesignated as partners, members, or owners, respec-tively, in the manner agreed to by such personsregardless of whether such partners, members, orowners are allocated or allowed any portion of thefederal energy tax credit for the eligible costs. Acorporation that passes the credit through to a partner,member, or owner must comply with the notificationrequirements described in paragraph (b). The partner,member, or owner must attach a copy of the certificateto each tax return on which the partner, member, orowner claims any portion of the credit.(7) RULES.—The Department of Revenue and the

Department of Agriculture and Consumer Services shallhave the authority to adopt rules pursuant to ss.120.536(1) and 120.54 to administer this section,including rules relating to:(a) The forms required to claim a tax credit under

this section, the requirements and basis for establishingan entitlement to a credit, and the examination and auditprocedures required to administer this section.(b) The implementation and administration of the

provisions allowing a transfer of a tax credit, includingrules prescribing forms, reporting requirements, andspecific procedures, guidelines, and requirements ne-cessary to transfer a tax credit.(8) PUBLICATION.—The Department of Agricul-

ture and Consumer Services shall determine andpublish on its website on a regular basis the amountof available tax credits remaining in each fiscal year.

History.—s. 12, ch. 2006-230; s. 11, ch. 2008-227; s. 15, ch. 2010-138; s. 22,ch. 2011-3; s. 501, ch. 2011-142; s. 6, ch. 2012-117.

220.193 Florida renewable energy productioncredit.—

(1) The purpose of this section is to encourage thedevelopment and expansion of facilities that producerenewable energy in Florida.(2) As used in this section, the term:(a) “Commission” means the Public Service Com-

mission.(b) “Department” means the Department of Reven-

ue.(c) “Expanded facility” means a Florida renewable

energy facility that increases its electrical productionand sale by more than 5 percent above the facility’selectrical production and sale during the 2011 calendaryear.(d) “Florida renewable energy facility” means a

facility in the state that produces electricity for salefrom renewable energy, as defined in s. 377.803.(e) “New facility” means a Florida renewable energy

facility that is operationally placed in service after May 1,2006. The term includes a Florida renewable energyfacility that has had an expansion operationally placedin service after May 1, 2006, and whose cost exceeded50 percent of the assessed value of the facilityimmediately before the expansion.(f) “Sale” or “sold” includes the use of electricity by

the producer of such electricity which decreases theamount of electricity that the producer would otherwisehave to purchase.(g) “Taxpayer” includes a general partnership, lim-

ited partnership, limited liability company, trust, or otherartificial entity in which a corporation, as defined in s.220.03(1)(e), owns an interest and is taxed as apartnership or is disregarded as a separate entityfrom the corporation under this chapter.(3) An annual credit against the tax imposed by this

section shall be allowed to a taxpayer, based on thetaxpayer’s production and sale of electricity from a newor expanded Florida renewable energy facility. For anew facility, the credit shall be based on the taxpayer’ssale of the facility’s entire electrical production. For anexpanded facility, the credit shall be based on theincreases in the facility’s electrical production that areachieved after May 1, 2012.(a) The credit shall be $0.01 for each kilowatt-hour

of electricity produced and sold by the taxpayer to anunrelated party during a given tax year.(b) The credit may be claimed for electricity pro-

duced and sold on or after January 1, 2013. Beginning in2014 and continuing until 2017, each taxpayer claiminga credit under this section must apply to the Departmentof Agriculture and Consumer Services by the dateestablished by the Department of Agriculture andConsumer Services for an allocation of available creditsfor that year. The application form shall be adopted byrule of the Department of Agriculture and ConsumerServices in consultation with the commission. Theapplication form shall, at a minimum, require a swornaffidavit from each taxpayer certifying the increase inproduction and sales that form the basis of the applica-tion and certifying that all information contained in theapplication is true and correct.(c) If the amount of credits applied for each year

exceeds the amount authorized in paragraph (g), theDepartment of Agriculture and Consumer Services shall


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allocate credits to qualified applicants based on thefollowing priority:1. An applicant who places a new facility in

operation after May 1, 2012, shall be allocated creditsfirst, up to a maximum of $250,000 each, with anyremaining credits to be granted pursuant to subpara-graph 3., but if the claims for credits under thissubparagraph exceed the state fiscal year cap inparagraph (g), credits shall be allocated pursuant tothis subparagraph on a prorated basis based upon eachapplicant’s qualified production and sales as a percen-tage of total production and sales for all applicants in thiscategory for the fiscal year.2. An applicant who does not qualify under sub-

paragraph 1. but who claims a credit of $50,000 or lessshall be allocated credits next, but if the claims forcredits under this subparagraph, combined with creditsallocated in subparagraph 1., exceed the state fiscalyear cap in paragraph (g), credits shall be allocatedpursuant to this subparagraph on a prorated basisbased upon each applicant’s qualified production andsales as a percentage of total qualified production andsales for all applicants in this category for the fiscal year.3. An applicant who does not qualify under sub-

paragraph 1. or subparagraph 2. and an applicantwhose credits have not been fully allocated undersubparagraph 1. shall be allocated credits next. Ifthere is insufficient capacity within the amount author-ized for the state fiscal year in paragraph (g), and afterallocations pursuant to subparagraphs 1. and 2., thecredits allocated under this subparagraph shall beprorated based upon each applicant’s unallocatedclaims for qualified production and sales as a percen-tage of total unallocated claims for qualified productionand sales of all applicants in this category, up to amaximum of $1million per taxpayer per state fiscal year.If, after application of this $1 million cap, there is excesscapacity under the state fiscal year cap in paragraph (g)in any state fiscal year, that remaining capacity shall beused to allocate additional credits with priority given inthe order set forth in this subparagraph and withoutregard to the $1 million per taxpayer cap.(d) If the credit granted pursuant to this section is

not fully used in 1 year because of insufficient tax liabilityon the part of the taxpayer, the unused amount may becarried forward for a period not to exceed 5 years. Thecarryover credit may be used in a subsequent yearwhen the tax imposed by this chapter for such yearexceeds the credit for such year, after applying the othercredits and unused credit carryovers in the orderprovided in s. 220.02(8).(e) A taxpayer that files a consolidated return in this

state as a member of an affiliated group under s.220.131(1) may be allowed the credit on a consolidatedreturn basis up to the amount of tax imposed upon theconsolidated group.(f)1. Tax credits that may be available under this

section to an entity eligible under this section may betransferred after a merger or acquisition to the survivingor acquiring entity and used in the samemanner with thesame limitations.2. The entity or its surviving or acquiring entity as

described in subparagraph 1. may transfer any unused

credit in whole or in units of no less than 25 percent ofthe remaining credit. The entity acquiring such creditmay use it in the same manner and with the samelimitations under this section. Such transferred creditsmay not be transferred again although they maysucceed to a surviving or acquiring entity subject tothe same conditions and limitations as described in thissection.3. In the event the credit provided for under this

section is reduced as a result of an examination or auditby the department, such tax deficiency shall berecovered from the first entity or the surviving oracquiring entity to have claimed such credit up to theamount of credit taken. Any subsequent deficienciesshall be assessed against any entity acquiring andclaiming such credit, or in the case of multiple succeed-ing entities in the order of credit succession.(g) Notwithstanding any other provision of this

section, credits for the production and sale of electricityfrom a new or expanded Florida renewable energyfacility may be earned between January 1, 2013, andJune 30, 2016. The combined total amount of tax creditswhich may be granted for all taxpayers under thissection is limited to $5 million in state fiscal year 2012-2013 and $10 million per state fiscal year in state fiscalyears 2013-2014 through 2016-2017. If the annual taxcredit authorization amount is not exhausted by alloca-tions of credits within that particular state fiscal year, anyauthorized but unallocated credit amounts may be usedto grant credits that were earned pursuant to s. 220.192but unallocated due to a lack of authorized funds.(h) A taxpayer claiming a credit under this section

shall be required to add back to net income that portionof its business deductions claimed on its federal returnpaid or incurred for the taxable year which is equal to theamount of the credit allowable for the taxable year underthis section.(i) A taxpayer claiming credit under this section

may not claim a credit under s. 220.192. A taxpayerclaiming credit under s. 220.192 may not claim a creditunder this section.(j) When an entity treated as a partnership or a

disregarded entity under this chapter produces and sellselectricity from a new or expanded renewable energyfacility, the credit earned by such entity shall passthrough in the same manner as items of income andexpense pass through for federal income tax purposes.When an entity applies for the credit and the entity hasreceived the credit by a pass-through, the applicationmust identify the taxpayer that passed the creditthrough, all taxpayers that received the credit, and thepercentage of the credit that passes through to eachrecipient and must provide other information that theDepartment of Agriculture and Consumer Servicesrequires.(k) A taxpayer’s use of the credit granted pursuant

to this section does not reduce the amount of any creditavailable to such taxpayer under s. 220.186.(4) The Department of Agriculture and Consumer

Services shall make a determination on the eligibility ofthe applicant for the credits sought and certify thedetermination to the applicant and the Department ofRevenue. The corporation must attach the Department


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of Agriculture and Consumer Services’ certification tothe tax return on which the credit is claimed. TheDepartment of Agriculture and Consumer Services isresponsible for ensuring that the corporate income taxcredits granted in each fiscal year do not exceed thelimits provided for in this section.(5)(a) In addition to its existing audit and investigation

authority, the Department of Revenue may perform anyadditional financial and technical audits and investiga-tions, including examining the accounts, books, andrecords of the tax credit applicant, which are necessaryto verify the information included in the tax credit returnand to ensure compliance with this section. TheDepartment of Agriculture and Consumer Servicesshall provide technical assistance when requested bythe Department of Revenue on any technical audits orexaminations performed pursuant to this section.(b) It is grounds for forfeiture of previously claimed

and received tax credits if the Department of Revenuedetermines, as a result of an audit or examination orfrom information received from the Department ofAgriculture and Consumer Services, that a taxpayerreceived tax credits pursuant to this section to which thetaxpayer was not entitled. The taxpayer is responsiblefor returning forfeited tax credits to the Department ofRevenue, and such funds shall be paid into the GeneralRevenue Fund of the state.(c) The Department of Agriculture and Consumer

Services may revoke or modify any written decisiongranting eligibility for tax credits under this section if it isdiscovered that the tax credit applicant submitted anyfalse statement, representation, or certification in anyapplication, record, report, plan, or other document filedin an attempt to receive tax credits under this section.The Department of Agriculture and Consumer Servicesshall immediately notify the Department of Revenue ofany revoked or modified orders affecting previouslygranted tax credits. Additionally, the taxpayer mustnotify the Department of Revenue of any change in itstax credit claimed.(d) The taxpayer shall file with the Department of

Revenue an amended return or such other report as theDepartment of Revenue prescribes by rule and shall payany required tax and interest within 60 days after thetaxpayer receives notification from the Department ofAgriculture and Consumer Services that previouslyapproved tax credits have been revoked or modified.If the revocation or modification order is contested, thetaxpayer shall file an amended return or other report asprovided in this paragraph within 60 days after a finalorder is issued after proceedings.(e) A notice of deficiency may be issued by the

Department of Revenue at any time within 3 years afterthe taxpayer receives formal notification from theDepartment of Agriculture and Consumer Servicesthat previously approved tax credits have been revokedor modified. If a taxpayer fails to notify the Departmentof Revenue of any changes to its tax credit claimed, anotice of deficiency may be issued at any time.(6) The Department of Revenue and the Depart-

ment of Agriculture and Consumer Services may adoptrules to implement and administer this section, includingrules prescribing forms, the documentation needed to

substantiate a claim for the tax credit, and the specificprocedures and guidelines for claiming the credit.(7) The Department of Agriculture and Consumer

Services shall determine and publish on its website on aregular basis the amount of available tax creditsremaining in each fiscal year.(8) This section shall take effect upon becoming law

and shall apply to tax years beginning on and afterJanuary 1, 2013.


1220.194 Corporate income tax credits forspaceflight projects.—(1) SHORT TITLE.—This section may be cited as

the “Florida Space Business Incentives Act.”(2) PURPOSE.—The purpose of this section is to

create incentives to attract launch, payload, researchand development, and other space business to thisstate.(3) DEFINITIONS.—As used in this section, the

term:(a) “Administrative support” means that 51 percent

or more of an activity supports a certified spaceflightbusiness.(b) “Certified” means that a spaceflight business

has been certified by the Department of EconomicOpportunity as meeting all of the requirements neces-sary to obtain at least one of the approved tax creditsavailable under this section, including approval totransfer a credit.(c) “New employee” means a state resident who

begins or maintains full-time employment in this statewith a spaceflight business on or after October 1, 2011.The term does not include a person who is a partner,majority stockholder, or owner of the business or aperson who is employed in a temporary construction jobor primarily involved with the construction of realproperty.(d) “New job” means the full-time employment of an

employee in a manner that is consistent with terms usedby the Department of Economic Opportunity and theUnited States Department of Labor for purposes ofreemployment assistance tax administration and em-ployment estimation. In order to meet the requirementfor certification specified in paragraph (5)(b), a new jobmust:1. Pay new employees at least 115 percent of the

statewide or countywide average annual private sectorwage for the 3 taxable years immediately precedingfiling an application for certification;2. Require a new employee to perform duties on a

regular full-time basis in this state for an average of atleast 36 hours per week each month for the 3 taxableyears immediately preceding filing an application forcertification; and3. Not be held by a person who has previously

been included as a new employee on an application forany credit authorized under this section.(e) “Payload” means an object built or assembled in

this state to be placed into earth’s upper atmospheres orspace.(f) “Reentry” means to return or attempt to return an

object from earth’s upper atmospheres or space.


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(g) “Reentry service” means an activity conducted inthis state related to preparing a reentry vehicle and anypayload for reentry and the reentry.(h) “Space vehicle” means any spacecraft, satellite,

space station, upper-stage, launch vehicle, reentryvehicle, and related ground-support systems and equip-ment.(i) “Spaceflight business” means a business that:1. Is registered with the Secretary of State to do

business in this state; and2. Is currently engaged in a spaceflight project. A

spaceflight business may participate in more than onespaceflight project at a time and may conduct work on acommercial, governmental, or United States defense-related spaceflight project.(j) “Spaceflight project” means any of the following

activities performed in this state:1. Designing, manufacturing, testing, or assem-

bling a space vehicle or components thereof;2. Providing a launch service, payload processing

service, or reentry service;3. Providing the payload for a launch vehicle or

reentry space vehicle;4. Administrative support; or5. Providing the launch vehicle or the reentry

vehicle for space tourists.(k) “Taxpayer” has the same meaning as provided

in s. 220.03.(4) TAX CREDITS.—(a) If approved and certified pursuant to subsection

(5), the following tax credits may be taken on a return fora taxable year beginning on or after October 1, 2015:1. A certified spaceflight business may take a

nontransferable corporate income tax credit for up to50 percent of the business’s tax liability under thischapter for the taxable year in which the credit is taken.The maximum nontransferable tax credit amount thatmay be approved per taxpayer for a taxable year is $1million. No more than $3 million in total tax creditspursuant to this subparagraph may be certified pursuantto subsection (5). No credit may be approved afterOctober 1, 2017.2. A certified spaceflight business may transfer, in

whole or in part, its Florida net operating loss that wouldotherwise be available to be taken on a return filedunder this chapter, provided that the activity giving riseto such net operating loss must have occurred after July1, 2011. The transfer allowed under this subparagraphwill be in the form of a transferable tax credit equal to theamount of the net operating loss eligible to be trans-ferred. The maximum transferable tax credit amountthat may be approved per taxpayer for a taxable year is$2.5 million. No more than $7 million in total tax creditspursuant to this subparagraph may be certified pursuantto subsection (5). No credit may be approved afterOctober 1, 2017.a. In order to transfer the credit, the business must:(I) Have been approved to transfer the tax credit for

the taxable year in which it is transferred;(II) Have incurred a qualifying net operating loss on

activity in this state after July 1, 2011, directly asso-ciated with one or more spaceflight projects in any of its3 previous taxable years;

(III) Not be 50 percent or more owned or controlled,directly or indirectly, by another corporation that hasdemonstrated positive net income in any of the 3previous taxable years of ongoing operations; and(IV) Not be part of a consolidated group of affiliated

corporations, as filed for federal income tax purposes,which in the aggregate demonstrated positive netincome in any of the 3 previous taxable years.b. The credit that may be transferred by a certified

spaceflight business:(I) Is limited to the amount of eligible net operating

losses incurred in the immediate 3 taxable years beforethe transfer; and(II) Must be directly associated with a spaceflight

project in this state as verified through an audit orexamination by a certified public accountant licensed todo business in this state and as verified by theDepartment of Economic Opportunity.(b) Each certified spaceflight business may only be

approved for a credit under subparagraph (a)1. onceand may only be approved to transfer a tax credit undersubparagraph (a)2. once, and a certified spaceflightbusiness may not be approved for both in a single statefiscal year.(c) Credits approved under subparagraph (a)1. may

be taken only against the corporate income tax liabilitygenerated by or arising out of a spaceflight project in thisstate, as verified through an audit or examination by acertified public accountant licensed to do business inthis state and as verified by the Department ofEconomic Opportunity.(d) A certified spaceflight business may not file a

consolidated return in order to claim the tax incentivesdescribed in this subsection.(e) The certified spaceflight business or transferee

must demonstrate to the satisfaction of the Departmentof Economic Opportunity and the department that it iseligible to take the credits approved under this section.(5) APPLICATION AND CERTIFICATION.—(a) In order to claim a tax credit under this section, a

spaceflight business must first submit an application tothe Department of Economic Opportunity for approval toearn tax credits or create transferable tax credits. Theapplication must be filed by the date established by theDepartment of Economic Opportunity. In addition to anyinformation that the Department of Economic Opportu-nity may require, the applicant must provide a completedescription of the activity in this state which demon-strates to the Department of Economic Opportunity theapplicant’s likelihood to be certified to take or transfer acredit. The applicant must also provide a description ofthe total amount and type of credits for which approval issought. The Department of Economic Opportunity mayconsult with Space Florida regarding the qualificationsof an applicant. The applicant shall provide an affidavitcertifying that all information contained in the applicationis true and correct.1. Approval of the credits shall be provided on a

first-come, first-served basis, based on the date thecompleted applications are received by the Departmentof Economic Opportunity. A taxpayer may not submitmore than one completed application per state fiscalyear. The Department of Economic Opportunity may not


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accept an incomplete placeholder application, and thesubmission of such an application will not secure aplace in the first-come, first-served application line.2. The Department of Economic Opportunity has

60 days after the receipt of a completed applicationwithin which to issue a notice of intent to deny orapprove an application for credits. The Department ofEconomic Opportunity must ensure that the corporateincome tax credits approved for all applicants do notexceed the limits provided in this section.(b) In order to take a tax credit under subparagraph

(a)1. or, if applicable, to transfer an approved creditunder subparagraph (a)2., a spaceflight business mustsubmit an application for certification to the Departmentof Economic Opportunity along with a nonrefundable$250 fee.1. The application must include:a. The name and physical in-state address of the

taxpayer.b. Documentation demonstrating to the satisfaction

of the Department of Economic Opportunity that:(I) The taxpayer is a spaceflight business.(II) The business has engaged in a qualifying

spaceflight project before taking or transferring a creditunder this section.c. In addition to any requirement specific to a

credit, documentation that the business has:(I) Created 35 new jobs in this state directly

associated with spaceflight projects during its immedi-ately preceding 3 taxable years. The business shall bedeemed to have created new jobs if the number of full-time jobs located in this state at the time of applicationfor certification is greater than the total number of full-time jobs located in this state at the time of applicationfor approval to earn credits; and(II) Invested a total of at least $15 million in this state

on a spaceflight project during its immediately preced-ing 3 taxable years.d. The total amount and types of credits sought.e. An acknowledgment that a transfer of a tax

credit is to be accomplished pursuant to subsection (5).f. A copy of an audit or audits of the preceding 3

taxable years, prepared by a certified public accountantlicensed to practice in this state, which identifies thatportion of the business’s activities in this state related tospaceflight projects in this state.g. An acknowledgment that the business must file

an annual report on the spaceflight project’s progresswith the Department of Economic Opportunity.h. Any other information necessary to demonstrate

that the applicant meets the job creation, investment,and other requirements of this section.2. Within 60 days after receipt of the application for

certification, the Department of Economic Opportunityshall evaluate the application and recommend thebusiness for certification or denial. The executivedirector of the Department of Economic Opportunitymust approve or deny the application within 30 daysafter receiving the recommendation. If approved, theDepartment of Economic Opportunity must provide aletter of certification to the applicant consistent with anyrestrictions imposed. If the Department of EconomicOpportunity denies any part of the requested credit, the

Department of Economic Opportunity must inform theapplicant of the grounds for the denial. A copy of thecertification shall be submitted to the department within10 days after the executive director’s approval.(6) TRANSFERABILITY OF CREDIT.—(a) A certified spaceflight business allowed to

transfer an approved credit, in whole or in part, to ataxpayer by written agreement may do so withouttransferring any ownership interest in the propertygenerating the credit or any interest in the entity owningsuch property.(b) In order to perfect the transfer, the transferor

shall provide the department with a written transferstatement that has been approved by the Department ofEconomic Opportunity notifying the department of thetransferor’s intent to transfer the tax credits to thetransferee; the date that the transfer is effective; thetransferee’s name, address, and federal taxpayeridentification number; the tax period; and the amountof tax credits to be transferred. Upon receipt of theapproved transfer statement, the department shallprovide the transferee and the Department of EconomicOpportunity with a certificate reflecting the tax creditamounts transferred. A copy of the certificate must beattached to each tax return for which the transfereeseeks to apply the credits.(7) AUDIT AUTHORITY; RECAPTURE OF CRED-

ITS.—(a) In addition to its existing audit and investigative

authority, the department may perform any additionalfinancial and technical audits and investigations, includ-ing examining the accounts, books, and financialrecords of the tax credit applicant, which are necessaryfor verifying the accuracy of the return and to ensurecompliance with this section. If requested by thedepartment, the Department of Economic Opportunityand Space Florida must provide technical assistance forany technical audits or examinations performed underthis subsection.(b) Grounds for forfeiture of previously claimed tax

credits approved under this section exist if the depart-ment determines, as a result of an audit or examination,or from information received from the Department ofEconomic Opportunity, that a certified spaceflight busi-ness, or in the case of transferred tax credits, a taxpayerreceived tax credits for which the certified spaceflightbusiness or taxpayer was not entitled. The spaceflightbusiness or transferee must file an amended returnreflecting the disallowed credits and paying any tax dueas a result of the amendment.(c) If an amendment to, recomputation of, or

redetermination of a certified spaceflight business’sFlorida corporate income tax return changes an itementered into the computation of a claimed credit, thetaxpayer must notify the department by filing anamended return. The amount of any credit award notsupported by the amended return shall be deemed adeficiency that must be remitted with the amendedreturn and is subject to s. 220.23. The spaceflightbusiness is also liable for a penalty equal to the creditclaimed or transferred, reduced in proportion to theamount of the net operating loss certified for transferwhich is disallowed over the amount of the net operating


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loss certified for the credit. The certified business and itssuccessors must maintain all records necessary tosupport the reported net operating loss.(d) The Department of Economic Opportunity may

revoke or modify a certification granting eligibility for taxcredits if it finds that the certified spaceflight businessmade a false statement or representation in anyapplication, record, report, plan, or other documentfiled in an attempt to receive tax credits under thissection. The Department of Economic Opportunity shallimmediately notify the department of any revoked ormodified orders affecting previously granted tax credits.The certified spaceflight business must also notify thedepartment of any change in its claimed tax credit.(e) The certified spaceflight business must file with

the department an amended return or other reportrequired by the department by rule and pay any requiredtax and interest within 60 days after the certifiedbusiness receives notification from the Department ofEconomic Opportunity that previously approved taxcredits have been revoked or modified. If the revocationor modification order is contested, the spaceflightbusiness must file the amended return or other reportwithin 60 days after a final order is issued.(f) The department may assess an additional tax,

penalty, or interest pursuant to s. 95.091.(8) RULES.—(a) The Department of Economic Opportunity, in

consultation with Space Florida, shall adopt rules toadminister this section, including rules relating toapplication forms for credit approval and certification,and the application and certification procedures, guide-lines, and requirements necessary to administer thissection.(b) The department may adopt rules to administer

this section, including rules relating to:1. The forms required to claim a tax credit under

this section, the requirements and basis for establishingan entitlement to a credit, and the examination and auditprocedures required to administer this section.2. The implementation and administration of provi-

sions allowing the transfer of a net operating loss as atax credit, including rules that prescribe forms, reportingrequirements, and specific procedures, guidelines, andrequirements necessary to perform the transfer.3. The minimum portion of the credit which is

available for transfer.(9) ANNUAL REPORT.—Beginning in 2014, the

Department of Economic Opportunity, in cooperationwith Space Florida and the department, shall include inthe annual incentives report required under s. 288.907 asummary of activities relating to the Florida SpaceBusiness Incentives Act established under this section.(10) NONAPPLICABILITY.—This section does not

apply to returns filed for any tax period before October 1,2015.

History.—s. 15, ch. 2011-76; s. 51, ch. 2012-30; s. 29, ch. 2012-96; s. 8, ch.2013-39; s. 9, ch. 2013-42.




1220.195 Emergency excise tax credit.—(1) Beginning with taxable years ending in 2012, a

taxpayer who has earned, but not yet taken, a credit foremergency excise tax paid under former s. 221.02 maytake such credit against the tax imposed by this chapter.(2) If a credit granted pursuant to this section is not

fully used in taxable years ending in 2012 because ofinsufficient tax liability on the part of the taxpayer, theunused amount may be carried forward for a period notto exceed 5 years. The carryover credit may be used ina subsequent year when the tax imposed by this chapterfor such year exceeds the credit for such year, afterapplying the other credits and unused credit carryoversin the order provided in s. 220.02(8).

History.—s. 16, ch. 2011-76.1Note.—Section 35, ch. 2011-76, provides that:“(1) The executive director of the Department of Revenue is authorized, and all



1220.196 Research and development tax credit.(1) DEFINITIONS.—As used in this section, the

term:(a) “Base amount” means the average of the

business enterprise’s qualified research expenses inthis state allowed under 26 U.S.C. s. 41 for the 4 taxableyears preceding the taxable year for which the credit isdetermined. The qualified research expenses taken intoaccount in computing the base amount shall bedetermined on a basis consistent with the determinationof qualified research expenses for the taxable year.(b) “Business enterprise” means any corporation as

defined in s. 220.03 which meets the definition of atarget industry business as defined in s. 288.106.(c) “Qualified research expenses” means research

expenses qualifying for the credit under 26 U.S.C. s. 41for in-house research expenses incurred in this state orcontract research expenses incurred in this state. Theterm does not include research conducted outside thisstate or research expenses that do not qualify for acredit under 26 U.S.C. s. 41.(2) TAX CREDIT.—Subject to the limitations con-

tained in2paragraph (e), a business enterprise is eligiblefor a credit against the tax imposed by this chapter if thebusiness enterprise has qualified research expenses inthis state in the taxable year exceeding the base amountand, for the same taxable year, claims and is allowed aresearch credit for such qualified research expensesunder 26 U.S.C. s. 41.(a) The tax credit shall be 10 percent of the excess

qualified research expenses over the base amount.However, the maximum tax credit for a businessenterprise that has not been in existence for at least 4taxable years immediately preceding the taxable year isreduced by 25 percent for each taxable year for whichthe business enterprise, or a predecessor corporationthat was a business enterprise, did not exist.(b) The credit taken in any taxable year may not

exceed 50 percent of the business enterprise’s remain-ing net income tax liability under this chapter after allother credits have been applied under s. 220.02(8).


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(c) Any unused credit authorized under this sectionmay be carried forward and claimed by the taxpayer forup to 5 years.(d) The combined total amount of tax credits which

may be granted to all business enterprises under thissection during any calendar year is $9 million. Applica-tions may be filed with the department on or after March20 for qualified research expenses incurred within thepreceding calendar year, and credits shall be granted inthe order in which completed applications are received.(3) RECALCULATION OF CREDIT AMOUNT.—If

the amount of qualified research expenses is reducedas a result of a federal audit or examination, the creditgranted pursuant to this section must be recalculated.The taxpayer must file amended returns for all affectedyears pursuant to s. 220.23(2), and the taxpayer mustpay to the department the difference between the initialcredit amount taken and the recalculated credit amountwith interest.(4) RULES.—The department may adopt rules to

administer this section, including, but not limited to,rules prescribing forms and application procedures anddates, and may establish guidelines for making anaffirmative showing of qualification for a credit and anyevidence needed to substantiate a claim for credit underthis section.

History.—s. 17, ch. 2011-76.1Note.—Section 35, ch. 2011-76, provides that:“(1) The executive director of the Department of Revenue is authorized, and all



2Note.—Paragraph (e) does not exist.

PART III

RETURNS; DECLARATIONS; RECORDS

220.21 Returns and records; regulations.220.211 Penalties; incomplete return.220.22 Returns; filing requirement.220.221 Returns; signing and verification.220.222 Returns; time and place for filing.220.23 Federal returns.220.24 Declaration of estimated tax.220.241 Declaration; time for filing.220.242 Declaration as return.

220.21 Returns and records; regulations.—(1) Every taxpayer liable for the tax imposed by this

code shall keep such records, render such statements,make such returns and notices, and comply with suchrules and regulations, as the department may from timeto time prescribe. The director may require any taxpayeror class of taxpayers, by notice or by regulation, to makesuch returns and notices, render such statements, andkeep such records as the director deems necessary todetermine whether such taxpayer or taxpayers areliable for tax under this code.(2) A taxpayer who is required to file its federal

income tax return by electronic means on a separate orconsolidated basis shall file returns required by thischapter by electronic means. For the reasons described

in s. 213.755(9), the department may waive therequirement to file a return by electronic means fortaxpayers that are unable to comply despite good faithefforts or due to circumstances beyond the taxpayer’sreasonable control. The provisions of this subsectionare in addition to the requirements of s. 213.755 toelectronically file returns and remit payments requiredunder this chapter. The department may prescribe byrule the format and instructions necessary for electronicfiling to ensure a full collection of taxes due. In additionto the authority granted under s. 213.755, the accep-table method of transfer, the method, form, and contentof the electronic data interchange, and the means, ifany, by which the taxpayer will be provided with anacknowledgment may be prescribed by the department.In the case of any failure to comply with the electronicfiling requirements of this subsection, a penalty shall beadded to the amount of tax due with such return equal to5 percent of the amount of such tax for the first 30 daysthe return is not filed electronically, with an additional 5percent of such tax for each additional month or fractionthereof, not to exceed $250 in the aggregate. Thedepartment may settle or compromise the penaltypursuant to s. 213.21. This penalty is in addition toany other penalty that may be applicable and shall beassessed, collected, and paid in the same manner astaxes.(3) In addition to its authority under s. 213.755, the

department may adopt rules requiring or allowingtaxpayers to use an electronic filing system to filereturns required by subsection (2), including anyelectronic systems developed by the Internal RevenueService. Rulemaking authority requiring electronic filingis limited to the federal corporate income tax filingthreshold for electronic filing as it exists on January 1,2007.


220.211 Penalties; incomplete return.—(1) In the case where an incomplete return is made,

notwithstanding that no tax is finally determined to bedue for the taxable year, there shall be added to theamount of tax, penalty, and interest otherwise due apenalty in the amount of $300 or 10 percent of the taxfinally determined to be due, whichever is greater;however, such penalty shall not exceed $10,000. Thedepartment may settle or compromise such penaltiespursuant to s. 213.21.(2) An “incomplete return” is, for the purposes of this

code, a return which is lacking such uniformity, com-pleteness, and arrangement that physical handling,verification, or review of the return may not be readilyaccomplished.

History.—s. 14, ch. 84-549; s. 28, ch. 92-320.

220.22 Returns; filing requirement.—(1) A return with respect to the tax imposed by this

code shall be made by every taxpayer for each taxableyear in which such taxpayer either is liable for tax underthis code or is required to make a federal income taxreturn, regardless of whether such taxpayer is liable fortax under this code.


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(2) Every Florida partnership having any partnersubject to tax under this code, shall make an informationreturn setting forth:(a) All items of income, gain, loss, and deduction;(b) The names and addresses of all partners subject

to tax hereunder who would be entitled to share in thenet income of the partnership if distributed;(c) The amount and proportion of the distributive

share of each partner-taxpayer; and(d) Such other pertinent information as the depart-

ment may by form or regulation prescribe.(3) Whenever a receiver, trustee in bankruptcy, or

assignee, by order of law or otherwise, has possessionof or holds title to all or substantially all of the property orbusiness of a taxpayer, whether or not such property orbusiness is being operated, such receiver, trustee, orassignee shall make the returns and notices required ofsuch taxpayer.(4) The department shall designate by rule certain

not-for-profit entities and others that are not required tofile a return under this code, including an initialinformation return, unless the entities have taxableincome as defined in s. 220.13(2). These entities shallinclude subchapter S corporations, tax-exempt entities,and others that do not usually owe federal income tax.

History.—s. 1, ch. 71-984; s. 3, ch. 98-100; s. 8, ch. 98-101; s. 43, ch. 2002-218.

220.221 Returns; signing and verification.—(1) A return or notice required of a taxpayer shall be

signed by an officer duly authorized so to act or, in thecase of a return or notice made by a fiduciary under s.220.22(3), by the fiduciary. The fact that an officer orfiduciary has signed a return or notice shall be primafacie evidence that the individual was authorized to signsuch document on behalf of the taxpayer.(2) A return or notice for a partnership shall be

signed by any one of the general partners, and the factthat a partner has signed a return or notice shall beprima facie evidence that such partner was authorizedto sign such document on behalf of the partnership.(3) Each return or notice required to be filed under

this code shall be verified by a declaration that it is madeunder the penalties of perjury, and if prepared bysomeone other than the taxpayer the return shall alsocontain a declaration by the preparer that it wasprepared on the basis of all information of which thepreparer had knowledge.

History.—s. 1, ch. 71-984; s. 31, ch. 99-208.

220.222 Returns; time and place for filing.—(1) Returns required by this code shall be filed with

the office of the department in Leon County or at suchother place as the department may by regulationprescribe. All returns required for a DISC (DomesticInternational Sales Corporation) under paragraph6011(c)(2) of the Internal Revenue Code shall be filedon or before the 1st day of the 10th month following theclose of the taxable year; all partnership informationreturns shall be filed on or before the 1st day of the 5thmonth following the close of the taxable year; and allother returns shall be filed on or before the 1st day of the4th month following the close of the taxable year or the15th day following the due date, without extension, for

the filing of the related federal return for the taxableyear, unless under subsection (2) one or more exten-sions of time, not to exceed 6 months in the aggregate,for any such filing is granted.(2)(a) When a taxpayer has been granted an exten-

sion or extensions of time within which to file its federalincome tax return for any taxable year, and if therequirements of s. 220.32 are met, the filing of a requestfor such extension or extensions with the departmentshall automatically extend the due date of the returnrequired under this code until 15 days after theexpiration of the federal extension or until the expirationof 6 months from the original due date, whichever firstoccurs.(b) The department may grant an extension or

extensions of time for the filing of any return requiredunder this code upon receiving a prior request therefor ifgood cause for an extension is shown. However, theaggregate extensions of time under paragraphs (a) and(b) shall not exceed 6 months. No extension grantedunder this paragraph shall be valid unless the taxpayercomplies with the requirements of s. 220.32.(c) For purposes of this subsection, a taxpayer is

not in compliance with the requirements of s. 220.32 ifthe taxpayer underpays the required payment by morethan the greater of $2,000 or 30 percent of the taxshown on the return when filed.


220.23 Federal returns.—(1) Any taxpayer required to make a return for a

taxable year under this code may, at any time that adeficiency could be assessed or a refund claimed underthis code in respect of any item reported or properlyreportable on such return or any amendment thereof, berequired to furnish to the department a true and correctcopy of any return which may pertain to such item andwhich was filed by such taxpayer under the provisions ofthe Internal Revenue Code.(2) In the event the taxable income, any item of

income or deduction, or the income tax liability reportedin a federal income tax return of any taxpayer for anytaxable year is adjusted by amendment of such return oras a result of any other recomputation or redetermina-tion of federal taxable income or loss, if such adjustmentwould affect any item or items entering into thecomputation of such taxpayer’s net income subject totax for any taxable year under this code, the followingspecial rules shall apply:(a) The taxpayer shall notify the department of such

adjustment by filing either an amended return or suchother report as the department may by regulationprescribe, which return or report:1. Shall show the taxpayer’s name, address, and

employer identification number; the adjustments; thetaxpayer’s revised net income subject to tax and revisedtax liability under this code; and such other informationas the department may by regulation prescribe;2. Shall be signed by a person required to sign the

original return or by a duly authorized representative;and3. Shall be filed not later than 60 days after such

adjustment has been agreed to or finally determined for


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federal income tax purposes, or after any federalincome tax deficiency or refund, abatement, or creditresulting therefrom has been assessed, paid, or col-lected, whichever shall first occur.(b) If the amended return or other report filed with

the department concedes the accuracy of a federalchange or correction, any deficiency in tax under thiscode resulting therefrom shall be deemed assessed onthe date of filing such amended return or report, andsuch assessment shall be timely, notwithstanding anyother provision contained in part VIII of this chapter.(c) In any case where notification of an adjustment

is required under paragraph (a), then notwithstandingany other provision contained in s. 95.091(3):1. A notice of deficiency may be issued at any time

within 5 years after the date such notification is given; or2. If a taxpayer either fails to notify the department

or fails to report a change or correction which is treatedin the same manner as if it were a deficiency for federalincome tax purposes, a notice of deficiency may beissued at any time;3. In either case, the amount of any proposed

assessment set forth in such notice shall be limited tothe amount of any deficiency resulting under this codefrom recomputation of the taxpayer’s income for thetaxable year after giving effect only to the item or itemsreflected in the adjustment.

Interest in accordance with s. 220.807 is due on theamount of any deficiency from the date fixed for filing theoriginal return for the taxable year, determined withoutregard to any extension of time for filing the originalreturn, until the date of payment of the deficiency.(d) In any case when notification of an adjustment is

required by paragraph (a), a claim for refund may befiled within 2 years after the date on which suchnotification was due, regardless of whether such noticewas given, notwithstanding any other provision con-tained in s. 220.727. However, the amount recoverablepursuant to such a claim shall be limited to the amountof any overpayment resulting under this code fromrecomputation of the taxpayer’s income for the taxableyear after giving effect only to the item or items reflectedin the adjustment required to be reported.


220.24 Declaration of estimated tax.—(1) Every taxpayer shall make a declaration of

estimated tax for the taxable year, in such form asthe department shall prescribe, if the amount payable asestimated tax can reasonably be expected to be morethan $2,500. The term “estimated tax” shall mean theamount which the taxpayer estimates to be his or her taxunder this code for the taxable year or, in the case of ataxable year of less than 12 months, an amount of taxdetermined in accordance with regulations prescribedby the department.(2) A taxpayer may amend a declaration, under

regulations prescribed by the department.History.—s. 1, ch. 71-984; s. 1189, ch. 95-147.

1220.241 Declaration; time for filing.—A declara-tion of estimated tax under this code shall be filed beforethe 1st day of the 5th month of each taxable year,

except that if the minimum tax requirement of s.220.24(1) is first met:(1) After the 3rd month and before the 6th month of

the taxable year, the declaration shall be filed before the1st day of the 7th month;(2) After the 5th month and before the 9th month of

the taxable year, the declaration shall be filed before the1st day of the 10th month; or(3) After the 8th month and before the 12th month of

the taxable year, the declaration shall be filed for thetaxable year before the 1st day of the succeedingtaxable year.

History.—s. 1, ch. 71-984; s. 3, ch. 2008-206.1Note.—Section 5, ch. 2008-206, provides that “[t]he Department of Revenue

may adopt rules necessary to administer the provisions of this act, including rules,forms, and guidelines for computing, claiming, and adding back bonus depreciationunder s. 168(k) and deductions under s. 179 of the Internal Revenue Code of 1986,as amended.”

220.242 Declaration as return.—All the provisionsof this part and of s. 213.053, relating to confidentiality,shall be applicable with respect to declarations ofestimated tax unless manifestly inconsistent therewith,and such declarations shall be confidential and exemptfrom the provisions of s. 119.07(1). However, thedeclaration required of a preparer other than thetaxpayer under s. 220.221(3) shall not be requiredwith respect to declarations of estimated tax.

History.—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

220.31 Payments; due date.220.32 Payments of tentative tax.220.33 Payments of estimated tax.220.34 Special rules relating to estimated tax.

220.31 Payments; due date.—(1) Every taxpayer required to file a return under this

code or a notification under s. 220.23(2) shall, withoutassessment, notice, or demand, pay any tax duethereon to the department at the place fixed for filing,including payment to such depository institutionsthroughout the state as the department may by regula-tion designate, on or before the date fixed for filing suchreturn, determined without regard to any extension oftime for filing the return, or notification, pursuant toregulations prescribed by the department.(2) Except as to estimated tax payments under s.

220.33, the payment required under this section shall bethe balance of tax remaining due after giving effect tothe following:(a) Any amount of tentative tax or estimated tax paid

by a taxpayer for a taxable year pursuant to s. 220.32 ors. 220.33 shall be deemed to have been paid on accountof the tax imposed by this code for such taxable year;and(b) Any amount of a tax overpayment which is

credited against the taxpayer’s liability for the taxableyear under s. 220.721 shall be deemed to have beenpaid on account of the tax imposed by this code for suchtaxable year.

History.—s. 1, ch. 71-984; s. 95, ch. 91-112.


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220.32 Payments of tentative tax.—(1) In connection with any extension of the time for

filing a return under s. 220.222(2), the taxpayer shall filea tentative tax return and pay, on or before the dateprescribed by law for the filing of such return, deter-mined without regard to any extensions of time for suchfiling, an amount estimated to be the balance of itsproper tax for the taxable year after giving effect to anyestimated tax payments under s. 220.33 and any taxcredit under s. 220.721.(2) The department shall by regulation prescribe the

manner and form for filing tentative returns.(3) Interest on any amount of tax due and unpaid

during the period of any extension shall be payable asprovided in s. 220.809. The taxpayer shall also be liablefor a penalty in an amount determined at the rate of 12percent per year upon the amount of any underpaymentof the tax due.


1220.33 Payments of estimated tax.—A taxpayerrequired to file a declaration of estimated tax pursuant tos. 220.24 shall pay such estimated tax as follows:(1) If the declaration is required to be filed before the

1st day of the 5th month of the taxable year, theestimated tax shall be paid in four equal installments.The first installment shall be paid at the time of therequired filing of the declaration; the second and thirdinstallments shall be paid before the 1st day of the 7thmonth and before the 1st day of the 10th month of thetaxable year, respectively; and the fourth installmentshall be paid before the 1st day of the next taxable year.(2) If the declaration is required to be filed before the

1st day of the 7th month of the taxable year, theestimated tax shall be paid in three equal installments.The first installment shall be paid at the time of requiredfiling of the declaration; the second installment shall bepaid before the 1st day of the 10th month of the taxableyear; and the third installment shall be paid before the1st day of the next taxable year.(3) If the declaration is required to be filed before the

1st day of the 10th month of the taxable year, theestimated tax shall be paid in two equal installments: atthe time of required filing of the declaration for suchtaxable year and before the 1st day of the next taxableyear, respectively.(4) If the declaration is required to be filed on or

before the first day of the succeeding taxable year, theestimated tax shall be paid in full at the time of suchrequired filing.(5) If the declaration is filed after the time prescribed

in s. 220.241 due to the grant of an extension of time forfiling, subsections (1)-(4) of this section shall not apply,and there shall be paid at the time of such filing allinstallments of estimated tax which would have beenpayable on or before such time if the declaration hadbeen filed within the time prescribed in s. 220.241 andwithout regard to the extension, and the remaininginstallments shall be paid at the time at which, and in theamounts in which, they would have been payable if thedeclaration had been so filed.(6) If an amended declaration is filed, the remaining

installments, if any, shall be ratably increased or

decreased, as the case may be, to reflect the increaseor decrease in the estimated tax occasioned by suchamendment.

2(7) Notwithstanding any administrative rule or de-termination of the department which allows estimatedpayments otherwise due on a Saturday, Sunday, orlegal holiday to be paid on the next succeeding day thatis not a Saturday, Sunday, or legal holiday, anyestimated tax payment required under this sectionwhich would otherwise be due no later than Sunday,June 30, 2013, shall be paid on or before June 28, 2013.This subsection expires July 1, 2014.(8) The application of this section to taxable years of

less than 12 months shall be in accordance withregulations prescribed by the department.

History.—s. 1, ch. 71-984; s. 4, ch. 2008-206; s. 4, ch. 2012-145.1Note.—Section 5, ch. 2008-206, provides that “[t]he Department of Revenue

may adopt rules necessary to administer the provisions of this act, including rules,forms, and guidelines for computing, claiming, and adding back bonus depreciationunder s. 168(k) and deductions under s. 179 of the Internal Revenue Code of 1986,as amended.”


conditions are deemed met, to adopt emergency rules pursuant to ss. 120.536(1)and 120.54(4), Florida Statutes, for the purpose of implementing section 4 of thisact.

“(2) Notwithstanding any other law, the emergency rules adopted pursuant tothis section shall remain in effect for 6 months after adoption and may be renewedduring the pendency of procedures to adopt permanent rules addressing the subjectof the emergency rules.”

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’sreturn for the taxable year, determined without regard toany 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 thefollowing:(a) Except as provided in paragraph (d), the tax-

payer shall be liable for interest at the rate of 12 percentper year and for a penalty in an amount determined atthe rate of 12 percent per year upon the amount of anyunderpayment of estimated tax determined under thissubsection.(b) For purposes of this subsection, the amount of

any underpayment of estimated tax shall be the excessof:1. The amount of the installment which would be

required to be paid if the estimated tax were equal to 90percent of the tax shown on the return for the taxableyear or, if no return were filed, 90 percent of the tax forsuch year, over2. 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 thedate the installment was required to be paid, determinedwithout regard to any extensions of time, and shallterminate on the earlier of the following dates:1. The first day of the fourth month following the

close of the taxable year; or2. With respect to any portion of the underpayment,

the date on which such portion is paid.

For purposes of this paragraph, a payment of estimatedtax on any installment date shall be considered apayment of any previous underpayment only to the


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extent such payment exceeds the amount of theinstallment determined under subparagraph (b)1. forsuch installment date.(d) No penalty or interest for underpayment of any

installment of estimated tax may be imposed if the totalamount of all such payments made on or before the lastdate prescribed for the payment of such installmentequals or exceeds the amount which would have beenrequired to be paid on or before such date if theestimated tax were the lesser amount of:1. An amount equal to the tax computed at the

rates applicable to the taxable year, but otherwise onthe basis of the facts shown on the return for, and thelaw applicable to, the preceding taxable year; or2. 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 codeover all amounts properly credited against such tax forthe taxable year.(f) The application of this subsection to taxable

years of less than 12months shall be in accordance withregulations prescribed by the department.(3) The department may provide by regulation for a

credit against estimated taxes for any taxable year ofany amount determined by the taxpayer or by thedepartment to be an overpayment of the tax imposed bythis code for a preceding taxable year.


PART V

ACCOUNTING

220.41 Taxable year.220.42 Methods of accounting.220.43 Reference to federal determinations.220.44 Adjustments.

220.41 Taxable year.—(1) For purposes of the tax imposed by this code

and the returns required to be filed, the taxable year of ataxpayer shall be the same as the taxable year of suchtaxpayer for federal income tax purposes.(2) If the taxable year of a taxpayer is changed for

federal income tax purposes, the taxable year of suchtaxpayer for purposes of this code shall be similarlychanged.(3) Notwithstanding the provisions of subsections

(1) and (2), if the department terminates the taxableyear of a taxpayer under the provisions of s. 220.719relating to jeopardy assessments, the tax shall becomputed for the period determined by such action.

History.—s. 1, ch. 71-984; s. 97, ch. 91-112.

220.42 Methods of accounting.—(1) For purposes of this code, a taxpayer’s method

of accounting shall be the same as such taxpayer’smethod of accounting for federal income tax purposes,except as provided in subsection (3). If no method ofaccounting has been regularly used by a taxpayer, netincome for purposes of this code shall be computed by

such method as in the opinion of the department fairlyreflects income.(2) If a taxpayer’s method of accounting is changed

for federal income tax purposes, the taxpayer’s methodof accounting for purposes of this code shall be similarlychanged.(3) Any taxpayer which has elected for federal

income tax purposes to report any portion of its incomeon the completed contract method of accounting underTreasury Regulation 1.451-3(b)(2) may elect to returnthe income so reported on the percentage of completionmethod of accounting under Treasury Regulation 1.451-3(b)(1), provided the taxpayer regularly maintains itsbooks of account and reports to its shareholders on thepercentage of completion method. The election pro-vided by this subsection shall be allowed only if it ismade, in such manner as the department may pre-scribe, not later than the due date, including anyextensions thereof, for filing a return for the taxpayer’sfirst taxable year under this code in which a portion of itsincome is returned on the completed contract method ofaccounting for federal tax purposes. An election madepursuant to this subsection shall apply to all subsequenttaxable years of the taxpayers unless the departmentconsents in writing to its revocation.

History.—s. 1, ch. 71-984; s. 9, ch. 72-278.

220.43 Reference to federal determinations.—(1) To the extent not inconsistent with the provisions

of this code or forms or regulations prescribed by thedepartment, each taxpayer making a return under thiscode shall take into account the items of income,deduction, and exclusion on such return in the samemanner and amounts as reflected in such taxpayer’sfederal income tax return for the same taxable year.(2) A final determination under the Internal Revenue

Code adjusting any item or items of income, deduction,or exclusion for any taxable year shall be prima faciecorrect for purposes of this code to the extent such itemor items enter into the determination of net incomeunder this code.(3) If there has been implementing legislation under

s. 220.03(3), and to the extent required in regulationsprescribed by the department, any taxpayer making areturn under this code may be required to indicate theitem or items of income, deduction, and exclusion whichwould enter into the determination of income if this codewere amended to incorporate the Internal RevenueCode as amended and in effect for such taxable year.

History.—s. 1, ch. 71-984.

220.44 Adjustments.—If it appears to the directorthat any agreement, understanding, or arrangementexists between any taxpayers, or between any taxpayerand any other person, which causes any taxpayer’s netincome subject to tax to be reflected improperly orinaccurately, the director may adjust any item or items ofincome, deduction, or exclusion, or any factor taken intoaccount in apportioning income to this state, to theextent necessary clearly to reflect the net income ofsuch taxpayer.

History.—s. 1, ch. 71-984.


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PART VI

MISCELLANEOUS PROVISIONS

220.51 Promulgation of rules and regulations.220.52 Arrangement and captions.220.54 Administration of law.

220.51 Promulgation of rules and regulations.In accordance with the Administrative Procedure Act,chapter 120, the department is authorized to make,promulgate, and enforce such reasonable rules andregulations, and to prescribe such forms relating to theadministration and enforcement of the provisions of thiscode, as it may deem appropriate, including:(1) Rules for initial implementation of this code and

for taxpayers’ transitional taxable years commencingbefore and ending after January 1, 1972;(2) Rules or regulations to clarify whether certain

groups, organizations, or associations formed under thelaws of this state or any other state, country, orjurisdiction shall be deemed “taxpayers” for the pur-poses of this code, in accordance with the legislativedeclarations of intent in s. 220.02; and(3) Regulations relating to consolidated reporting for

affiliated groups of corporations, in order to provide foran equitable and just administration of this code withrespect to multicorporate taxpayers.

History.—s. 1, ch. 71-984.

220.52 Arrangement and captions.—No infer-ence, implication, or presumption of legislative con-struction shall be drawn or made by reason of thelocation or grouping of any particular sections orprovisions of this code, nor shall any caption be givenany legal effect.

History.—s. 1, ch. 71-984.

220.54 Administration of law.—The cost of pre-paring and distributing printed documents, reports,forms, and paraphernalia for the collection of the taximposed by this code and the inspection and enforce-ment duties required in connection therewith shall beborne by this state through a general revenue appro-priation to the department.

History.—s. 2, ch. 74-324.

PART VII

SPECIAL RULES RELATING TOTAXATION OF BANKS ANDSAVINGS ASSOCIATIONS

220.62 Definitions.220.63 Franchise tax imposed on banks and savings

associations.220.64 Other provisions applicable to franchise tax.220.65 Discharge of tax liability.

220.62 Definitions.—For purposes of this part:(1) The term “bank” means a bank holding company

registered under the Bank Holding Company Act of1956 of the United States, 12 U.S.C. ss. 1841-1849, asamended, or a bank or trust company incorporated and

doing business under the laws of the United States(including laws relating to the District of Columbia), ofany state, or of any territory, a substantial part of thebusiness of which consists of receiving deposits andmaking loans and discounts or of exercising fiduciarypowers similar to those permitted to national banksunder authority of the Comptroller of the Currency andwhich is subject by law to supervision and examinationby state, territorial, or federal authority having super-vision over banking institutions. The term “bank” alsoincludes any banking association, corporation, or othersimilar organization organized and operated under thelaws of any foreign country, which banking association,corporation, or other organization is also operating inthis state pursuant to chapter 663.(2) The term “savings association” means a savings

association holding company registered under theHomeowners’ Loan Act (HOLA) of 1933, 12 U.S.C. s.1467a, as amended, or any savings association, build-ing and loan association, savings and loan association,or mutual savings bank not having capital stock,whether subject to the laws of this or any otherjurisdiction.(3) The term “international banking facility” means a

set of asset and liability accounts segregated on thebooks and records of a banking organization thatincludes only international banking facility deposits,borrowings, and extensions of credit, as those termsare defined by the Financial Services Commission,taking into account all transactions in which interna-tional banking facilities are permitted to engage byregulations of the Board of Governors of the FederalReserve System, as from time to time amended. Whenproviding such definitions, the Financial Services Com-mission shall also consider the public interest, includingthe need to maintain a sound and competitive bankingsystem, as well as the purpose of this act, which is tocreate an environment conducive to the conduct of aninternational banking business in the state.(4) The term “banking organization” means:(a) A bank organized and existing under the laws of

any state;(b) A national bank organized and existing as a

national banking association pursuant to the provisionsof the National Bank Act, 12 U.S.C. ss. 21 et seq.;(c) An Edge Act corporation organized pursuant to

the provisions of s. 25(a) of the Federal Reserve Act, 12U.S.C. ss. 611 et seq.;(d) An international bank agency licensed pursuant

to the laws of any state;(e) A federal agency licensed pursuant to ss. 4 and

5 of the International Banking Act of 1978;(f) A savings association organized and existing

under the laws of any state; or(g) A federal association organized and existing

pursuant to the provisions of the Home Owners’ LoanAct of 1933, 12 U.S.C. ss. 1461 et seq.(5) The term “foreign person” means:(a) An individual who is not a resident of the United

States;(b) A foreign corporation, foreign partnership, or

foreign trust, as defined in s. 7701 of the InternalRevenue Code, other than a domestic branch thereof;


198

(c) A foreign branch of a domestic corporation(including the taxpayer);(d) A foreign government or an international orga-

nization, or an agency of either; or(e) An international banking facility.

For purposes of this subsection, the terms “foreign” and“domestic” have the same meaning as set forth in s.7701 of the Internal Revenue Code.

History.—s. 8, ch. 72-278; s. 1, ch. 73-152; s. 6, ch. 78-299; s. 149, ch. 80-260;s. 5, ch. 81-179; s. 18, ch. 88-119; s. 23, ch. 2000-355; s. 259, ch. 2003-261; s. 4, ch.2011-97.

220.63 Franchise tax imposed on banks andsavings associations.—(1) A franchise tax measured by net income is

hereby imposed on every bank and savings associationfor each taxable year commencing on or after January1, 1973, and for each taxable year which begins beforeand ends after January 1, 1973. The franchise tax baseof any bank for a taxable year which begins before andends after January 1, 1972, shall be prorated in themanner prescribed for the proration of net income under1s. 220.12(2).(2) The tax imposed by this section shall be an

amount equal to 51/2 percent of the franchise tax base ofthe bank or savings association for the taxable year.

2(3) For purposes of this part, the franchise tax baseshall be adjusted federal income, as defined in s.220.13, apportioned to this state, plus nonbusinessincome allocated to this state pursuant to s. 220.16, lessthe deduction allowed in subsection (5) and less$50,000.(4) Nothing contained in this part shall be construed

to prohibit a savings association, in computing itsfranchise tax base, from claiming the maximum deduc-tion allowed under s. 593 of the Internal Revenue Code.(5) There shall be allowed as a deduction from

adjusted federal income, to the extent not deductible indetermining federal taxable income or subtracted pur-suant to s. 220.13(1)(b)2., the eligible net income of aninternational banking facility determined as follows:(a) The “eligible net income of an international

banking facility” is the amount remaining after subtract-ing from the eligible gross income the applicableexpenses.(b) The “eligible gross income” is the gross income

derived by an international banking facility from:1. Making, arranging for, placing, or servicing loans

to foreign persons, provided, however, that in the caseof a foreign person which is an individual, a foreignbranch of a domestic corporation (other than a bank orsavings association), or a foreign corporation or aforeign partnership which is 80 percent or moreowned or controlled, either directly or indirectly, byone or more domestic corporations (other than banks orsavings associations), domestic partnerships, or resi-dent individuals, substantially all the proceeds of theloan are for use outside the United States;2. Making or placing deposits with foreign persons

which are banks or savings associations or foreignbranches of banks or savings associations, includingforeign subsidiaries or foreign branches of the taxpayer,or with other international banking facilities; or

3. Entering into foreign exchange trading or hed-ging transactions in connection with the activitiesdescribed in this paragraph.

However, the term “eligible gross income” does notinclude any amount derived by an international bankingfacility from making, arranging for, placing, or servicingloans or making or placing deposits if the loans ordeposits of funds are secured by mortgages, deeds oftrust, or other liens upon real property located in thisstate.(c) The “applicable expenses” are any expenses or

other deductions attributable, directly or indirectly, to theeligible gross income described in paragraph (b).

History.—s. 8, ch. 72-278; s. 2, ch. 73-152; s. 6, ch. 81-179; s. 9, ch. 83-349; ss.8, 12, 22, ch. 84-549; s. 102, ch. 91-112; s. 6, ch. 2011-229; s. 11, ch. 2012-32.

1Note.—Repealed by s. 14, ch. 90-203.2Note.—A. Section 3, ch. 2011-229, provides that:“(1) The executive director of the Department of Revenue is authorized, and all



B. Section 25, ch. 2012-32, provides that:“(1) The executive director of the Department of Revenue is authorized, and all


“(2) Notwithstanding any provision of law, such emergency rules shall remainin effect for 6 months after the date adopted and may be renewed during thependency of procedures to adopt permanent rules addressing the subject of theemergency rules.”

220.64 Other provisions applicable to franchisetax.—To the extent that they are not manifestlyincompatible with the provisions of this part, parts I,III, IV, V, VI, VIII, IX, and X of this code and ss. 220.12,220.13, 220.15, and 220.16 apply to the franchise taximposed by this part. Under rules prescribed in s.220.131, a consolidated return may be filed by anyaffiliated group of corporations composed of one ormore banks or savings associations, its or their Floridaparent corporation, and any nonbank or nonsavingssubsidiaries of such parent corporation.

History.—s. 8, ch. 72-278; s. 3, ch. 73-152; s. 10, ch. 83-349; s. 2, ch. 84-549; s.99, ch. 91-112.

220.65 Discharge of tax liability.—The tax im-posed by this part shall be in lieu of, and no bank orsavings association shall be subject to, the tax imposedunder part II.

History.—s. 8, ch. 72-278; s. 4, ch. 73-152.

PART VIII

ADMINISTRATIVE PROCEDURESAND JUDICIAL REVIEW

220.701 Collection authority.220.703 Assessment.220.705 Limitation on assessment.220.707 Notice and demand.220.709 Deficiency determinations.220.711 Notice of deficiency.220.713 Assessment after notice.220.715 Waiver of restrictions on assessment.220.717 Protest of proposed assessment.220.719 Jeopardy assessments.


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220.721 Overpayments; credits.220.723 Overpayments; interest.220.725 Overpayments; refunds.220.727 Limitations on claims for refund.220.731 Investigations.220.733 Actions to recover taxes.220.735 Production of witnesses and records.220.737 Amounts less than $1.220.739 Procedure for notices.

220.701 Collection authority.—The departmentshall collect the taxes imposed by this chapter andshall pay all moneys received by it into the GeneralRevenue Fund of the state.

History.—s. 19, ch. 71-359; s. 43, ch. 91-112.Note.—Former s. 214.02.

220.703 Assessment.—(1) The amount of tax which is shown to be due on

any return shall be deemed assessed on the date offiling the return, including any amended returns showingan increase of tax. In the event the amount of tax isunderstated on the taxpayer’s return due to a mathe-matical error, the department shall notify the taxpayerthat the amount of tax in excess of that shown on thereturn is due and has been assessed. Such notice ofadditional tax due shall not be considered a notice ofdeficiency, nor shall the taxpayer have any right ofprotest. In the case of a return properly filed without acomputation of the tax due, the tax computed by thedepartment on the basis of the return shall be deemedassessed on the date the return is filed.(2) Whenever a notice of deficiency has been

issued, the amount of the deficiency shall be deemedassessed on the date provided in s. 220.713 if noprotest is filed or, if a protest is filed, on the date whenthe decision of the department with respect to theprotest becomes final.(3) Any amount paid as tax or in respect to tax under

this chapter shall be deemed assessed upon the date ofreceipt of payment.

History.—s. 19, ch. 71-359; s. 53, ch. 91-45; s. 44, ch. 91-112.Note.—Former s. 214.03.

220.705 Limitation on assessment.—No defi-ciency shall be assessed with respect to a taxableyear for which a return was filed unless a notice ofdeficiency for such year was issued not later than thedate prescribed in s. 95.091(3).


220.707 Notice and demand.—(1) As soon as practicable after an amount payable

under this chapter is deemed assessed under s.220.703 or any other provision of this chapter, thedepartment shall give notice of the amount unpaid toeach taxpayer liable for any unpaid portion of suchassessment and shall demand payment thereof. Theamount stated in such notice shall be payable uponreceipt of such notice, at the place and time stated insuch notice.

(2) No notice and demand need be issued when adeficiency has been determined by a proceeding incourt for review of an assessment.

History.—s. 19, ch. 71-359; s. 46, ch. 91-112.

Note.—Former s. 214.05.

220.709 Deficiency determinations.—(1) As soon as practicable after a return is filed, the

department shall examine it to determine the correctamount of tax. If the department finds that the amount oftax shown on the return is less than the correct amountand the difference is not solely the result of mathema-tical error, it shall issue a notice of deficiency to thetaxpayer, setting forth the amount of additional tax andany penalties proposed to be assessed. The findings ofthe department under this subsection shall be primafacie correct and shall be prima facie evidence of thecorrectness of the amount of tax and penalties due.(2) If a taxpayer fails to file a tax return, the

department shall determine the amount of tax dueaccording to its best judgment and information, and itshall issue a notice of deficiency to the taxpayer, settingforth the amount of tax and any penalties proposed to beassessed. The amount so determined by the depart-ment shall be prima facie correct and shall be primafacie evidence of the correctness of the amount of taxdue.(3) An erroneous refund shall be considered defi-

ciency of tax on the date made, and shall be deemedassessed and shall be collected as provided in ss.220.703 and 220.707.

History.—s. 19, ch. 71-359; s. 47, ch. 91-112.


220.711 Notice of deficiency.—A notice of defi-ciency issued under this chapter shall set forth, inaddition to the amount of tax and any penalties, acomputation of the adjustments giving rise to theproposed assessment and the reason or reasonstherefor.

History.—s. 19, ch. 71-359; s. 48, ch. 91-112.


220.713 Assessment after notice.—Upon the ex-piration of 60 days after the date on which it was issued(150 days, if the taxpayer is outside the United States),a notice of deficiency shall constitute an assessment ofthe amount of tax and penalties specified therein,except for amounts as to which the taxpayer shallhave filed a protest with the department under s.220.717.

History.—s. 19, ch. 71-359; s. 49, ch. 91-112.


220.715 Waiver of restrictions on assessment.At any time, whether or not a notice of deficiency hasbeen issued, a taxpayer shall have the right to waive therestrictions on assessment and collection of the wholeor any part of any proposed assessment of tax by asigned notice in writing filed with the department in suchform as the department may by regulation prescribe.

History.—s. 19, ch. 71-359; s. 50, ch. 91-112.



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220.717 Protest of proposed assessment.—(1) Within 60 days (150 days if the taxpayer is

outside the United States) after the issuance of a noticeof deficiency, the taxpayer may file with the departmenta written protest against the proposed assessment insuch form as the department may by regulationprescribe, setting forth the portion or portions of theproposed deficiency protested and the grounds onwhich such protest is based.(2) Whenever a protest is filed, the department shall

reconsider the proposed assessment.History.—s. 19, ch. 71-359; s. 54, ch. 78-95; s. 50, ch. 91-112.Note.—Former s. 214.11.

220.719 Jeopardy assessments.—(1) If the department finds that a taxpayer is about to

depart from the state, to conceal its property, or to doany other act tending to prejudice or render wholly orpartly ineffectual the normal procedures for collection ofany amount of tax, penalty, or interest under thischapter, or if the department otherwise finds that thecollection of such amount will be jeopardized by delay,the department shall issue to the taxpayer a notice ofsuch findings and shall make demand for the immediatepayment of such amount, whereupon such amount shallbe deemed assessed and shall become immediatelydue and payable.(2) If there is jeopardy to the revenue and jeopardy

is asserted in or with an assessment, the departmentshall proceed in the manner specified for jeopardyassessment in s. 213.732. A jeopardy assessment lienshall have the same scope and effect as other liensprescribed by this chapter.(3) If the notice and demand relate to the taxpayer’s

current taxable period or year, the department shalldeclare the taxable period or year of the taxpayerimmediately terminated, and the notice and demandshall relate to the period or year declared terminatedand shall include therein income, deductions, andvalues accrued or accumulated up to the date oftermination if not otherwise properly includable inrespect of such taxable year or period.

History.—s. 19, ch. 71-359; s. 54, ch. 78-95; s. 51, ch. 91-112; s. 15, ch. 92-315.Note.—Former s. 214.12.

220.721 Overpayments; credits.—(1) If, after a return has been filed, the department

finds that the tax paid with the return is more than thecorrect amount, it shall credit or refund the overpaymentas is appropriate.(2) In the case of any overpayment, the department

may within the applicable period of limitations credit theamount of such overpayment, including any interestallowed thereon, against any part of the liability inrespect of the tax giving rise to the overpayment of thetaxpayer who made the overpayment, refunding anybalance to such taxpayer.


220.723 Overpayments; interest.—(1) Interest shall be allowed and paid in accordance

with the provisions of s. 220.807 upon any overpaymentof a tax imposed by this chapter. However, if anyoverpayment is refunded or credited within 3 months

after the date upon which the taxpayer files writtennotice advising the department of such overpayment, nointerest shall be allowed on such overpayment.(2) Interest shall accrue from the date upon which

the taxpayer files a written notice advising the depart-ment of the overpayment. Interest shall be paid untilsuch date as determined by the department, which shallbe no more than 7 days prior to the date of the issuanceby the Chief Financial Officer of the refund warrant.(3) For purposes of this section, no amount of tax for

any taxable year shall be treated as having been paidbefore the date on which the tax return for such yearwas due under applicable law or the date the paymentwas actually made, whichever is later.



220.725 Overpayments; refunds.—(1) Every claim for refund shall be filed with the

department in writing, in such form as the departmentmay by regulation prescribe, and shall state the amountclaimed, the specific grounds upon which the claim isfounded, and the taxable years or periods involved.(2) As soon as practicable after a claim for refund is

filed, the department shall examine the claim and eitherissue a notice of refund, abatement, or credit to theclaimant or issue a notice of denial.


220.727 Limitations on claims for refund.—(1) Except as otherwise provided in this section:(a) A claim for refund must be filed within the period

specified in s. 215.26(2); and(b) For purposes of this subsection, payments of

estimated tax shall be deemed paid at the time suchreturn is required to be filed under this code, determinedwith regard to any extensions of time allowed to thetaxpayer under s. 213.055(2) or s. 220.222 for filingsuch return and not at such earlier time as suchpayments of estimated tax were actually made. Thisparagraph shall apply retroactively to tax years begin-ning on or after January 1, 2001.(2) For returns that were filed or taxes paid on or

before September 30, 1994:(a)1. A claim for refund shall be filed not later than 3

years after the date the return was filed or 1 year afterthe date the tax was paid, whichever is the later; and2. No credit or refund shall be allowed or made with

respect to the taxable year for which a claim was filedunless such claim is filed within such period.(b) The amount of any credit or refund resulting from

a claim for refund shall be limited as follows:1. If the claim was filed during the 3-year period

prescribed in this subsection, the amount of the credit orrefund shall not exceed the portion of tax paid within theperiod, equal to 3 years plus the period of any extensionof time for filing the return, immediately preceding thefiling of the claim.2. If the claim was not filed within such 3-year

period, the amount of the credit or refund shall notexceed the portion of the tax paid during the yearimmediately preceding the filing of the claim.


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(c) For purposes of this subsection, a tax return filedon or before the last day prescribed by law for the filingof such return, determined without regard to anyextensions thereof, shall be deemed to have beenfiled on such last day.

History.—s. 19, ch. 71-359; s. 50, ch. 85-342; s. 54, ch. 91-112; s. 11, ch.94-314; s. 51, ch. 94-353; s. 1, ch. 2005-178.


220.731 Investigations.—For the purpose of ad-ministering and enforcing the provisions of this chapter,the department or any officer, agent, or employee of thedepartment designated by the executive director inwriting or by regulation may:(1) Hold investigations concerning any matters;(2) Require the attendance of any individual, or any

officer or employee of a taxpayer, having knowledge ofsuch matters; and(3) Take testimony and require proof for its informa-

tion.

In the conduct of any investigation, neither the depart-ment nor any officer, agent, or employee thereof shallbe bound by the technical rules of evidence, and theinformality in any proceeding or in the manner of takingtestimony shall not invalidate any order, decision, rule,or regulation made or approved or confirmed by thedepartment. Any officer or employee of the departmentauthorized by the executive director or regulation shallhave power to administer oaths. The books, papers,records, and memoranda of the department, or partsthereof, may be proved in any investigation or legalproceeding by a reproduced copy thereof, under thecertificate of the executive director, and any suchreproduced copy shall, without further proof, be ad-mitted into evidence before the department or in anylegal proceeding.


220.733 Actions to recover taxes.—At any timethat the department might commence proceedings for alevy under this chapter, it may bring an action in anycourt of competent jurisdiction within or without thestate, in the name of the state, to recover the amount oftaxes, penalties, and interest due and unpaid under thischapter. In any such action, a certificate of the depart-ment showing the amount of the delinquency shall beprima facie evidence of the correctness of such amount,the validity of its assessment, and its compliance with allthe provisions of this chapter.


220.735 Production of witnesses and records.(1) The department, or any officer or employee of

the department designated by the executive director inwriting or by regulation, shall at its, her, or his owninstance, or on the written request of any other party tothe proceeding, issue subpoenas requiring the atten-dance of, and the giving of testimony by, witnesses andissue subpoenas duces tecum requiring the productionof books, papers, records, or memoranda. All subpoe-nas and subpoenas duces tecum issued under thischapter may be served by any person of full age.

(2) Witnesses other than employees of the stateshall be entitled to receive for attendance and travel thesame fees as witnesses before the circuit courts of thisstate, such fees to be paid when the witness is excusedfrom further attendance. When the witness is subpoe-naed for the department or any officer or employeethereof, such fees shall be paid in the same manner asother expenses of the department. When the witness issubpoenaed for any other party, the cost of subpoenaservice and the witness fee shall be borne by the partyat whose instance the witness is summoned, and thedepartment may, in its discretion, require a deposit oradvance payment to cover the cost of such service andwitness fee. Subpoenas issued hereunder shall beserved in the same manner as subpoenas issuedfrom the circuit courts.(3) Any circuit court of the state, or any judge

thereof, upon application of the department or anyofficer or employee thereof or upon the application ofany other party to the proceeding may, in its, her, or hisdiscretion, compel the attendance of witnesses, theproduction of books, papers, records, or memoranda,and the giving of testimony before the department orany officer or employee thereof conducting an investi-gation authorized by this chapter in the samemanner asthe production of evidence may be compelled beforesaid court.



220.737 Amounts less than $1.—(1) The department may by regulation provide that if

a total amount of less than $1 is payable, refundable, orcreditable, such amount either may be disregarded orshall be disregarded if it is less than 50 cents andincreased to $1 if it is 50 cents or more.(2) The department may by regulation provide that

any amount which is required to be shown or reportedon any return or other document required under thischapter shall, if such amount is not a whole dollar, beincreased to the nearest whole dollar when the frac-tional part of a dollar is 50 cents or more and decreasedto the nearest whole dollar when the fractional part of adollar is less than 50 cents.


220.739 Procedure for notices.—Whenever no-tice is required by this chapter, such notice shall, if nototherwise provided, be given to the taxpayer bypersonal delivery by an agent of the department orissued by mailing it by registered or certified mail to thetaxpayer concerned at his or her last known address asshown on the most recently filed return under applicablelaw or, if no return has previously been filed, at theaddress shown on the corporation report last filed unders. 607.1622. Alternatively, notice may be issued byregistered or certified mail to the taxpayer at any otheraddress which the taxpayer has designated in writing ashis or her current mailing address.




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PART IX

PENALTIES, INTEREST,AND ENFORCEMENT

220.801 Penalties; failure to timely file returns.220.803 Penalties; failure to pay tax.220.805 Assessment of penalties.220.807 Determination of rate of interest.220.809 Interest on deficiencies.220.813 Liens; attachment and notice.220.815 Liens; priority and filing.220.819 Liens; release.220.821 Liens; certificates of release.220.823 Liens; costs.220.825 Liens; foreclosure.220.827 Collection procedures.220.829 Liability of transferees.

220.801 Penalties; failure to timely file returns.(1) In case of failure to file any tax return required

under this chapter on the date prescribed therefor,including any extensions thereof, there shall be addedas a penalty to the amount of tax due with such return 10percent of the amount of such tax, if the failure is not formore than 1 month, plus an additional 10 percent foreach additional month or fraction thereof during whichsuch failure continues, not exceeding 50 percent in theaggregate. The department may settle or compromisesuch penalties pursuant to s. 213.21. For purposes ofthis section, the amount of tax due with any return shallbe reduced by any part of the tax which is paid on orbefore the date prescribed for payment of the tax and bythe amount of any credit against the tax which wasproperly allowable on the date the return was required tobe filed.(2) In case of failure to file any tax return required by

this chapter, notwithstanding that no tax is shown to bedue thereon, a penalty in the amount of $50 for eachmonth or portion thereof, not to exceed $300 in theaggregate, shall be assessed and paid for each suchfailure to file. This subsection shall only apply tocorporations when they also are required to file afederal income tax return.(3) If any penalty is assessed under subsection (1)

for failure to file a return by the prescribed date, nopenalty under subsection (2) for failure to file a returnwith no tax shown to be due shall be assessed withrespect to the same return.

1(4) The provisions of this section shall specificallyapply to the notice of federal change required under s.220.23.

History.—s. 19, ch. 71-359; s. 4, ch. 74-324; s. 15, ch. 81-178; s. 8, ch. 86-121;s. 94, ch. 87-6; s. 61, ch. 87-101; s. 62, ch. 91-112; s. 29, ch. 92-320; s. 18, ch.2011-76.





220.803 Penalties; failure to pay tax.—(1) If any part of a deficiency is due to negligence or

intentional disregard of rules and regulations prescribedby or under this chapter, but without intent to defraud,there shall be added to the tax as a penalty an amountequal to 10 percent of the deficiency.(2) If any part of a deficiency is due to fraud, there

shall be added to the tax as a penalty, in lieu of thepenalty under subsection (1), an amount equal to 100percent of the deficiency.(3) For purposes of this section, the amount shown

as tax by the taxpayer upon a return shall be taken intoaccount in determining the amount of the deficiency onlyif such return was filed on or before the last dayprescribed by law for the filing of such return, includingany extensions of the time for such filing.


220.805 Assessment of penalties.—The penal-ties provided by this part shall be paid upon notice anddemand and shall be assessed, collected, and paid inthe same manner as taxes. Any reference in thischapter to the tax imposed by this chapter shall bedeemed a reference to penalties provided by this part.


220.807 Determination of rate of interest.—(1) The annual rate of interest applicable to this

chapter shall be the adjusted rate established by theexecutive director of the Department of Revenue undersubsection (2), except that the annual rate of interestshall never be greater than 12 percent.(2) If the adjusted prime rate charged by banks,

rounded to the nearest full percent, plus 4 percentagepoints, during either:(a) The 6-month period ending on September 30 of

any calendar year; or(b) The 6-month period ending on March 31 of any

calendar year,

differs from the interest rate in effect on either such date,the executive director of the Department of Revenueshall, within 20 days, establish an adjusted rate ofinterest equal to such adjusted prime rate plus 4percentage points.(3) An adjusted rate of interest established under

this section shall become effective:(a) On January 1 of the succeeding year, if based

upon the adjusted prime rate plus 4 percentage pointsfor the 6-month period ending on September 30; or(b) On July 1 of the same calendar year, if based

upon the adjusted prime rate plus 4 percentage pointsfor the 6-month period ending on March 31.(4) For the purposes of this section, “adjusted prime

rate charged by banks” means the average predomi-nant prime rate quoted by commercial banks to largebusiness, as determined by the Board of Governors ofthe Federal Reserve System.(5) Once established, an adjusted rate of interest

shall remain in effect until an adjustment is made undersubsection (2).



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220.809 Interest on deficiencies.—(1) Except as provided in s. 220.23(2)(c), if any

amount of tax imposed by this chapter is not paid on orbefore the date, determined without regard to anyextensions, prescribed for payment of such tax, interestshall be paid in accordance with the provisions of s.220.807 on the unpaid amount from such date to thedate of payment.(2) Interest prescribed by this section on any tax or

penalty shall be deemed assessed upon the assess-ment of the tax or penalty to which such interest relates,and shall be collected and paid in the same manner astaxes. Any reference in this chapter to the tax imposedby this chapter shall be deemed a reference to interestimposed by this section.(3) No interest shall be imposed upon the interest

provided by this section.(4) Interest shall be paid in respect to any penalty

which is not paid within 20 days of the notice anddemand therefor, but only for the period from the date ofthe notice and demand to the date of payment.(5) If notice and demand is made for the payment of

any amount due under this chapter, and if such amountis paid within 30 days after the date of such notice anddemand, interest under this section on the amount sopaid shall not be imposed for the period after the date ofsuch notice and demand.(6) Any tax, interest, or penalty imposed by this

chapter which has been erroneously refunded andwhich is recoverable by the department shall bearinterest computed as provided in s. 220.807 from thedate of payment of such refund.(7) The department may settle or compromise

interest imposed herein pursuant to s. 213.21.History.—s. 19, ch. 71-359; s. 11, ch. 76-261; s. 16, ch. 81-178; s. 3, ch. 86-121;

s. 66, ch. 91-112; s. 45, ch. 2002-218.Note.—Former s. 214.43.

220.813 Liens; attachment and notice.—(1) The state shall have a lien for all or any portion of

the tax or any penalty, or for any amount of interestwhich may be due, upon all the real and personalproperty of any taxpayer assessed with a tax under thischapter.(2) If the lien arises from an assessment pursuant to

a notice of deficiency, such lien shall not attach, and thenotice described in subsection (3) shall not be filed, untilall proceedings in court for review of such assessmenthave terminated or the time for the taking thereof hasexpired without such proceedings being instituted.(3) The lien created by assessment pursuant to a

notice of deficiency shall expire unless a notice of lien isfiled as provided in this part within 5 years from the dateall proceedings in court for the review of such assess-ment have terminated or the time for the taking thereofhas expired without such proceeding being instituted.The lien created by assessment pursuant to the filing ofa return without payment of the tax shown to be due, orthe penalty or interest properly due, shall expire unlessa notice of lien is filed within 5 years from the date suchreturn was filed with the department.


220.815 Liens; priority and filing.—(1) Nothing in this part shall be construed to give the

state a preference over the perfected rights of any bonafide purchaser, mortgagee, judgment creditor, or otherlienholder in existence prior to the filing of notice of lienor of jeopardy assessment lien in the office of the clerkof the circuit court in the county in which the propertysubject to the lien is located. If there is jeopardy to therevenue and jeopardy is asserted in or with an assess-ment, the department shall proceed in the mannerspecified for jeopardy assessment in s. 213.732.(2) The clerks of the circuit courts of the several

counties shall establish and maintain a file and indexbook for liens arising under this chapter, in the mannerand form prescribed by the department, which shallcontain numerical and alphabetical indexes. Each entryin the file shall show the name and address of thetaxpayer named in the notice, the tax to which the lienrelates, the serial number of the notice, the date andhour of filing, whether the lien is a regular lien or ajeopardy assessment lien, and the amount of taxes,penalties, and interest due and unpaid at the time thenotice is filed.


220.819 Liens; release.—(1) The department may release all or any portion of

the property subject to a lien if it determines that therelease will not endanger or jeopardize the collection ofthe amount secured thereby.(2) The department shall release all or any portion of

the property subject to a lien upon a final determinationof a court of competent jurisdiction that the taxpayerdoes not owe some or all of the amount secured by thelien or that no jeopardy to the revenue exists.(3) The department shall release the lien against

any taxpayer whenever the tax, penalties and interestcovered by the lien are paid.


220.821 Liens; certificates of release.—(1) The department shall issue a certificate of

complete or partial release of lien:(a) To the extent that the fair market value of any

property subject to the lien exceeds 200 percent of theamount of the lien plus the amount of all prior liens uponsuch property;(b) To the extent that such lien expires or otherwise

becomes unenforceable;(c) To the extent that the amount of such lien is paid,

together with any interest which may become duebetween the date when the notice of lien is filed andthe date when the amount of such lien is paid;(d) To the extent that there is furnished to the

department, on such form as the department mayprescribe and with such surety or sureties as aresatisfactory to the department, a bond that is condi-tioned upon the payment of 200 percent of the amountof such lien, plus any interest which may become dueafter the notice of lien is filed and before the amountthereof is fully paid; and


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(e) To the extent and under the circumstancesspecified in s. 220.819.(2) A certificate of complete or partial release of any

lien shall be conclusive that the lien upon the propertycovered by the certificate is extinguished to the extentindicated by such certificate.(3) The clerks of the circuit court shall permanently

attach the certificates of release to the notice of lien ornotice of jeopardy assessment lien and record samewhenever a certificate of complete or partial release oflien issued by the department is presented for filing inthe office where a notice of such lien was filed.


220.823 Liens; costs.—The department shall notbe required to furnish any bond or to make a deposit orto pay any costs or fees of any court or officer thereof inany legal proceedings or in connection with the recor-dation in any county of any notice or other documentfiled by the department pursuant to the provisions of thischapter.


220.825 Liens; foreclosure.—In addition to anyother remedy provided by the laws of this state, andprovided that no hearing or proceedings for reviewprovided by this chapter shall be pending and that thetime for the taking of review shall have expired, thedepartment may foreclose in any court of competentjurisdiction any lien on real or personal property for anytax, penalty, or interest to the same extent and in thesame manner as in the enforcement of other liens. Anyproceeding to foreclose shall be instituted not more than20 years after the filing, or availability for filing, of thenotice of lien under the provisions of s. 220.815.

History.—s. 19, ch. 71-359; s. 55, ch. 87-6; s. 32, ch. 87-101; s. 74, ch. 91-112.Note.—Former s. 214.50.

220.827 Collection procedures.—(1) In addition to any other remedy provided by the

laws of this state, if any tax imposed by this chapter isnot paid within the time required by this chapter, thedepartment, or someone designated by it, may cause ademand to be made on the taxpayer for the paymentthereof. If such tax remains unpaid for 10 days aftersuch demand has been made and no proceedings havebeen taken to review the same, the department mayissue a warrant directed to any sheriff or other personauthorized to serve process, commanding said sheriff orother person to levy upon and sell the real and personalproperty of the taxpayer found within his or herjurisdiction for the payment of the amount thereof,including penalties, interest, and the cost of executingthe warrant. Such warrant shall be returned to thedepartment together with the money collected by virtuethereof within the time therein specified, which shall notbe less than 20 nor more than 90 days from the date ofthe warrant. The sheriff or other person to whom such awarrant shall be directed shall proceed upon the samein all respects and with like effect as is prescribed by lawfor executions issued against property upon judgmentsof record, and shall be entitled to the same fees for his orher services in executing the warrant, to be collected in

the same manner. No proceedings for a levy under thissection shall be commenced more than 20 years afterthe filing of the notice of lien under the provisions of thispart.(2) Whenever an execution or writ of attachment

issued from any court for the enforcement or collectionof any tax liability created by this chapter shall be leviedby any sheriff or other authorized person upon anypersonal property, and such property shall be claimed tobe exempt from execution or attachment by any personother than the defendant in the execution or attachment,then it shall be the duty of the person making such claimto give notice in writing of his or her claim and of his orher intention to prosecute the same to the sheriff orother person within 10 days after the making of saidlevy. The giving of such notice shall be a conditionprecedent to any legal action against the sheriff or otherauthorized person for wrongful levy or seizure or for saleof said property, and any such person who fails to givenotice within said time shall be forever barred frombringing any legal action against such sheriff or otherperson for injury or damages to or conversion of saidproperty.



220.829 Liability of transferees.—The liability of atransferee of a taxpayer for any tax, penalty, or interestdue shall be assessed, paid, and collected in the samemanner and subject to the same provisions andlimitations as in the case of the tax to which the liabilityrelates. The term “transferee” shall include any corpora-tion or other person which succeeds by operation of lawor otherwise to substantially all of the business orproperty of a taxpayer.


PART X

TAX CRIMES

220.901 Willful and fraudulent acts.220.903 Willful failure to pay over.220.905 Aiding and abetting.

220.901 Willful and fraudulent acts.—Any tax-payer who is subject to the provisions of this chapterand who willfully fails to file a return or keep requiredbooks and records, files a fraudulent return, willfullyviolates any rule or regulation of the department, orwillfully attempts in any other manner to evade or defeatany tax imposed by this chapter or the payment thereof,is, in addition to other penalties, guilty of a misdemeanorof the first degree, punishable as provided in s. 775.082or s. 775.083.



220.903 Willful failure to pay over.—Any personwho accepts money from a taxpayer that is due to thedepartment, for the purpose of acting as the taxpayer’sagent to make the payment to the department, but who


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willfully fails to remit such payment to the departmentwhen due or who purports to make such payment butwillfully fails to do so because his or her check or otherremittance fails to clear the bank or other depositoryagainst which it is drawn is guilty of a felony of the thirddegree, punishable as provided in s. 775.082, s.775.083, or s. 775.084.



220.905 Aiding and abetting.—Any person who

aids, abets, counsels, or conspires to commit any of the

acts described in s. 220.901 or s. 220.903 shall be

subject to fine or imprisonment to the same extent as

the perpetrator of such act.History.—s. 19, ch. 71-359; s. 80, ch. 91-112.



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f.s. 2014 income tax code ch. 220 chapter 220 … · chapter 220 income tax code note.—section 1,...

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