HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-00
Page 1 of 7
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to residential graywater system tax 2
credits; creating s. 220.199, F.S.; providing 3
definitions; providing a tax credit to developers and 4
homebuilders for certain graywater systems purchased 5
during the taxable year; providing a cap on the amount 6
of the tax credit per system; specifying information 7
the developer or homebuilder must provide to the 8
Department of Revenue; authorizing tax credits to be 9
carried forward for up to a specified number of years; 10
authorizing the department to adopt rules; amending s. 11
220.02, F.S.; revising the order in which credits may 12
be taken to include credits created by this act; 13
amending s. 220.13, F.S.; revising t he definition of 14
the term "adjusted federal income" to include credits 15
created by this act; providing an effective date. 16
17
Be It Enacted by the Legislature of the State of Florida: 18
19
Section 1. Section 220.199, Florida Statutes, is created 20
to read: 21
220.199 Residential graywater system tax credit. — 22
(1) For purposes of this section, the term: 23
(a) "Department" means the Department of Revenue. 24
(b) "Developer" has the same meaning as in s. 380.031(2). 25
HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-00
Page 2 of 7
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(c) "Graywater" has the same meaning as in s. 26
381.0065(2)(f). 27
(2) For taxable years beginning on or after January 1, 28
2024, a developer or homebuilder is eligible to receive a credit 29
against the tax imposed by this chapter in an amount up to 50 30
percent of the cost of each NSF/ANSI 350 Class R certif ied 31
noncommercial, residential graywater system purchased during the 32
taxable year. The tax credit may not exceed $4,200 for each 33
system purchased. 34
(3) A developer or homebuilder that wishes to claim a tax 35
credit under this section must submit an applicat ion to the 36
department which includes a written verification by the 37
Department of Environmental Protection that the developer or 38
homebuilder has submitted reasonable assurances that the system 39
meets the requirements of subsection (2) and the functionality 40
assurances provided in s. 403.892(3)(c). The Department of 41
Environmental Protection shall make a determination on the 42
eligibility of the applicant for the credit sought and certify 43
the determination to the applicant and the department. The 44
taxpayer must attach the certification to the tax return on 45
which the credit is claimed. 46
(4) Any unused tax credit authorized under this section 47
may be carried forward and claimed by the taxpayer for up to 2 48
taxable years. 49
(5) The department may adopt rules to administ er this 50
HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-00
Page 3 of 7
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
section, including, but not limited to, rules prescribing forms, 51
application procedures and dates, and guidelines for making an 52
affirmative showing of qualification for a credit and any 53
evidence needed to substantiate a claim for a credit under thi s 54
section. 55
Section 2. Subsection (8) of section 220.02, Florida 56
Statutes, is amended to read: 57
220.02 Legislative intent. — 58
(8) It is the intent of the Legislature that credits 59
against either the corporate income tax or the franchise tax be 60
applied in the following order: those enumerated in s. 631.828, 61
those enumerated in s. 220.191, those enumerated in s. 220.181, 62
those enumerated in s. 220.183, those enumerated in s. 220.182, 63
those enumerated in s. 220.1895, those enumerated in s. 220.195, 64
those enumerated in s. 220.184, those enumerated in s. 220.186, 65
those enumerated in s. 220.1845, those enumerated in s. 220.19, 66
those enumerated in s. 220.185, those enumerated in s. 220.1875, 67
those enumerated in s. 220.1876, those enumerated in s. 68
220.1877, those enumerated in s. 220.193, those enumerated in s. 69
288.9916, those enumerated in s. 220.1899, those enumerated in 70
s. 220.194, those enumerated in s. 220.196, those enumerated in 71
s. 220.198, and those enumerated in s. 220.1915 , and those 72
enumerated in s. 220.199 . 73
Section 3. Paragraph (a) of subsection (1) of section 74
220.13, Florida Statutes, is amended to read: 75
HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-00
Page 4 of 7
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
220.13 "Adjusted federal income" defined. — 76
(1) The term "adjusted federal income" means an amount 77
equal to the taxpayer's taxable income as defined in subsection 78
(2), or such taxable income of more than one taxpayer as 79
provided in s. 220.131, for the taxable year, adjust ed as 80
follows: 81
(a) Additions.—There shall be added to such taxable 82
income: 83
1.a. The amount of any tax upon or measured by income, 84
excluding taxes based on gross receipts or revenues, paid or 85
accrued as a liability to the District of Columbia or any sta te 86
of the United States which is deductible from gross income in 87
the computation of taxable income for the taxable year. 88
b. Notwithstanding sub -subparagraph a., if a credit taken 89
under s. 220.1875, s. 220.1876, or s. 220.1877 is added to 90
taxable income in a previous taxable year under subparagraph 11. 91
and is taken as a deduction for federal tax purposes in the 92
current taxable year, the amount of the deduction allowed shall 93
not be added to taxable income in the current year. The 94
exception in this sub -subparagraph is intended to ensure that 95
the credit under s. 220.1875, s. 220.1876, or s. 220.1877 is 96
added in the applicable taxable year and does not result in a 97
duplicate addition in a subsequent year. 98
2. The amount of interest which is excluded from taxabl e 99
income under s. 103(a) of the Internal Revenue Code or any other 100
HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-00
Page 5 of 7
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
federal law, less the associated expenses disallowed in the 101
computation of taxable income under s. 265 of the Internal 102
Revenue Code or any other law, excluding 60 percent of any 103
amounts included in alternative minimum taxable income, as 104
defined in s. 55(b)(2) of the Internal Revenue Code, if the 105
taxpayer pays tax under s. 220.11(3). 106
3. In the case of a regulated investment company or real 107
estate investment trust, an amount equal to the exc ess of the 108
net long-term capital gain for the taxable year over the amount 109
of the capital gain dividends attributable to the taxable year. 110
4. That portion of the wages or salaries paid or incurred 111
for the taxable year which is equal to the amount of the credit 112
allowable for the taxable year under s. 220.181. This 113
subparagraph shall expire on the date specified in s. 290.016 114
for the expiration of the Florida Enterprise Zone Act. 115
5. That portion of the ad valorem school taxes paid or 116
incurred for the taxa ble year which is equal to the amount of 117
the credit allowable for the taxable year under s. 220.182. This 118
subparagraph shall expire on the date specified in s. 290.016 119
for the expiration of the Florida Enterprise Zone Act. 120
6. The amount taken as a credit under s. 220.195 which is 121
deductible from gross income in the computation of taxable 122
income for the taxable year. 123
7. That portion of assessments to fund a guaranty 124
association incurred for the taxable year which is equal to the 125
HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-00
Page 6 of 7
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
amount of the credit allo wable for the taxable year. 126
8. In the case of a nonprofit corporation which holds a 127
pari-mutuel permit and which is exempt from federal income tax 128
as a farmers' cooperative, an amount equal to the excess of the 129
gross income attributable to the pari -mutuel operations over the 130
attributable expenses for the taxable year. 131
9. The amount taken as a credit for the taxable year under 132
s. 220.1895. 133
10. Up to nine percent of the eligible basis of any 134
designated project which is equal to the credit allowable for 135
the taxable year under s. 220.185. 136
11. Any amount taken as a credit for the taxable year 137
under s. 220.1875, s. 220.1876, or s. 220.1877. The addition in 138
this subparagraph is intended to ensure that the same amount is 139
not allowed for the tax purposes of t his state as both a 140
deduction from income and a credit against the tax. This 141
addition is not intended to result in adding the same expense 142
back to income more than once. 143
12. The amount taken as a credit for the taxable year 144
under s. 220.193. 145
13. Any portion of a qualified investment, as defined in 146
s. 288.9913, which is claimed as a deduction by the taxpayer and 147
taken as a credit against income tax pursuant to s. 288.9916. 148
14. The costs to acquire a tax credit pursuant to s. 149
288.1254(5) that are deduct ed from or otherwise reduce federal 150
HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-00
Page 7 of 7
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
taxable income for the taxable year. 151
15. The amount taken as a credit for the taxable year 152
pursuant to s. 220.194. 153
16. The amount taken as a credit for the taxable year 154
under s. 220.196. The addition in this subparag raph is intended 155
to ensure that the same amount is not allowed for the tax 156
purposes of this state as both a deduction from income and a 157
credit against the tax. The addition is not intended to result 158
in adding the same expense back to income more than once. 159
17. The amount taken as a credit for the taxable year 160
pursuant to s. 220.198. 161
18. The amount taken as a credit for the taxable year 162
pursuant to s. 220.1915. 163
19. The amount taken as a credit for the taxable year 164
pursuant to s. 220.199. 165
Section 4. This act shall take effect July 1, 2023. 166