CS/HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-01-c1
Page 1 of 9
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; amending s. 213.053, F.S.; authorizing the 3
Department of Revenue to disclose information relating 4
to a residential graywater system tax credit to the 5
Department of Environmental Protection; creat ing s. 6
220.199, F.S.; providing definitions; providing a tax 7
credit to developers and homebuilders for certain 8
graywater systems purchased during the taxable year; 9
providing a cap on the amount of the tax credit per 10
system and per developer or homebuilder; specifying 11
information the developer or homebuilder must provide; 12
requiring the Department of Environmental Protection 13
to make certain determination and to certify such 14
determinations within a specified time frame; 15
requiring such determinations be include d on specified 16
returns; prohibiting the certification of credits for 17
tax years after a certain date; authorizing tax 18
credits to be carried forward for up to a specified 19
number of years; authorizing the Department of Revenue 20
and the Department of Environmen tal Protection to 21
adopt rules; providing for future repeal; amending s. 22
220.02, F.S.; revising the order in which credits may 23
be taken to include credits created by this act; 24
amending s. 220.13, F.S.; revising the definition of 25
CS/HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-01-c1
Page 2 of 9
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
the term "adjusted federal i ncome" to include credits 26
created by this act; providing an effective date. 27
28
Be It Enacted by the Legislature of the State of Florida: 29
30
Section 1. Paragraph (o) of subsection (8) of section 31
213.053, Florida Statutes, is amended to read: 32
213.053 Confidentiality and information sharing. — 33
(8) Notwithstanding any other provision of this section, 34
the department may provide: 35
(o) Information relative to ss. 220.1845 , 220.199, and 36
376.30781 to the Department of Environmental Protection in the 37
conduct of its official business. 38
39
Disclosure of information under this subsection shall be 40
pursuant to a written agreement between the executive director 41
and the agency. Such agencies, governmental or nongovernmental, 42
shall be bound by the same requirements of co nfidentiality as 43
the Department of Revenue. Breach of confidentiality is a 44
misdemeanor of the first degree, punishable as provided by s. 45
775.082 or s. 775.083. 46
Section 2. Section 220.199, Florida Statutes, is created 47
to read: 48
220.199 Residential gray water system tax credit. — 49
(1) For purposes of this section, the term: 50
CS/HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-01-c1
Page 3 of 9
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) "Developer" has the same meaning as in s. 380.031(2). 51
(b) "Graywater" has the same meaning as in s. 52
381.0065(2)(f). 53
(2) For taxable years beginning on or after January 1, 54
2024, a developer or homebuilder is eligible to receive a credit 55
against the tax imposed by this chapter in an amount up to 50 56
percent of the cost of each NSF/ANSI 350 Class R certified 57
noncommercial, residential graywater system purchased during the 58
taxable year. The tax credit may not exceed $4,200 for each 59
system purchased or $2,000,000 per developer or homebuilder per 60
taxable year. 61
(3)(a) To claim a tax credit under this section, a 62
developer or homebuilder must submit an application to the 63
Department of Environmental Protection which includes 64
documentation showing that the developer or homebuilder has 65
purchased for use in this state a graywater system meeting the 66
requirements of subsection (2) and that the graywater system 67
meets the functionality assuranc es provided in s. 403.892(3)(c). 68
The Department of Environmental Protection shall make a 69
determination on the eligibility of the applicant for the credit 70
sought and shall certify the determination to the applicant and 71
the Department of Revenue within 60 da ys after receipt of a 72
completed application. The taxpayer must attach the 73
certification from the Department of Environmental Protection to 74
the tax return on which the credit is claimed. 75
CS/HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-01-c1
Page 4 of 9
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
(b) No credits may be certified by the Department of 76
Environmental Protection for taxable years beginning on or after 77
January 1, 2027. 78
(4) Any unused tax credit authorized under this section 79
may be carried forward and claimed by the taxpayer for up to 2 80
taxable years. 81
(5) The department shall adopt rules to administer this 82
section, including, but not limited to, rules prescribing the 83
method to claim a credit certified by the Department of 84
Environmental Protection under this section. 85
(6) The Department of Environmental Protection may adopt 86
rules to administer this sec tion, including, but not limited to, 87
rules relating to application forms for credit approval and 88
certification and the application and certification procedures, 89
guidelines, and requirements necessary to administer this 90
section. 91
(7) This section is repeal ed December 31, 2030. 92
Section 3. Subsection (8) of section 220.02, Florida 93
Statutes, is amended to read: 94
220.02 Legislative intent. — 95
(8) It is the intent of the Legislature that credits 96
against either the corporate income tax or the franchise tax b e 97
applied in the following order: those enumerated in s. 631.828, 98
those enumerated in s. 220.191, those enumerated in s. 220.181, 99
those enumerated in s. 220.183, those enumerated in s. 220.182, 100
CS/HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-01-c1
Page 5 of 9
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
those enumerated in s. 220.1895, those enumerated in s. 220.19 5, 101
those enumerated in s. 220.184, those enumerated in s. 220.186, 102
those enumerated in s. 220.1845, those enumerated in s. 220.19, 103
those enumerated in s. 220.185, those enumerated in s. 220.1875, 104
those enumerated in s. 220.1876, those enumerated in s. 105
220.1877, those enumerated in s. 220.193, those enumerated in s. 106
288.9916, those enumerated in s. 220.1899, those enumerated in 107
s. 220.194, those enumerated in s. 220.196, those enumerated in 108
s. 220.198, and those enumerated in s. 220.1915 , and those 109
enumerated in s. 220.199. 110
Section 4. Paragraph (a) of subsection (1) of section 111
220.13, Florida Statutes, is amended to read: 112
220.13 "Adjusted federal income" defined. — 113
(1) The term "adjusted federal income" means an amount 114
equal to the taxpayer's taxable i ncome as defined in subsection 115
(2), or such taxable income of more than one taxpayer as 116
provided in s. 220.131, for the taxable year, adjusted as 117
follows: 118
(a) Additions.—There shall be added to such taxable 119
income: 120
1.a. The amount of any tax upon or me asured by income, 121
excluding taxes based on gross receipts or revenues, paid or 122
accrued as a liability to the District of Columbia or any state 123
of the United States which is deductible from gross income in 124
the computation of taxable income for the taxable y ear. 125
CS/HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-01-c1
Page 6 of 9
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
b. Notwithstanding sub -subparagraph a., if a credit taken 126
under s. 220.1875, s. 220.1876, or s. 220.1877 is added to 127
taxable income in a previous taxable year under subparagraph 11. 128
and is taken as a deduction for federal tax purposes in the 129
current taxable year, the amount of the deduction allowed shall 130
not be added to taxable income in the current year. The 131
exception in this sub -subparagraph is intended to ensure that 132
the credit under s. 220.1875, s. 220.1876, or s. 220.1877 is 133
added in the applica ble taxable year and does not result in a 134
duplicate addition in a subsequent year. 135
2. The amount of interest which is excluded from taxable 136
income under s. 103(a) of the Internal Revenue Code or any other 137
federal law, less the associated expenses disallo wed in the 138
computation of taxable income under s. 265 of the Internal 139
Revenue Code or any other law, excluding 60 percent of any 140
amounts included in alternative minimum taxable income, as 141
defined in s. 55(b)(2) of the Internal Revenue Code, if the 142
taxpayer pays tax under s. 220.11(3). 143
3. In the case of a regulated investment company or real 144
estate investment trust, an amount equal to the excess of the 145
net long-term capital gain for the taxable year over the amount 146
of the capital gain dividends attributabl e to the taxable year. 147
4. That portion of the wages or salaries paid or incurred 148
for the taxable year which is equal to the amount of the credit 149
allowable for the taxable year under s. 220.181. This 150
CS/HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-01-c1
Page 7 of 9
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
subparagraph shall expire on the date specified in s. 2 90.016 151
for the expiration of the Florida Enterprise Zone Act. 152
5. That portion of the ad valorem school taxes paid or 153
incurred for the taxable year which is equal to the amount of 154
the credit allowable for the taxable year under s. 220.182. This 155
subparagraph shall expire on the date specified in s. 290.016 156
for the expiration of the Florida Enterprise Zone Act. 157
6. The amount taken as a credit under s. 220.195 which is 158
deductible from gross income in the computation of taxable 159
income for the taxable year. 160
7. That portion of assessments to fund a guaranty 161
association incurred for the taxable year which is equal to the 162
amount of the credit allowable for the taxable year. 163
8. In the case of a nonprofit corporation which holds a 164
pari-mutuel permit and which i s exempt from federal income tax 165
as a farmers' cooperative, an amount equal to the excess of the 166
gross income attributable to the pari -mutuel operations over the 167
attributable expenses for the taxable year. 168
9. The amount taken as a credit for the taxable year under 169
s. 220.1895. 170
10. Up to nine percent of the eligible basis of any 171
designated project which is equal to the credit allowable for 172
the taxable year under s. 220.185. 173
11. Any amount taken as a credit for the taxable year 174
under s. 220.1875, s. 220 .1876, or s. 220.1877. The addition in 175
CS/HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-01-c1
Page 8 of 9
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
this subparagraph is intended to ensure that the same amount is 176
not allowed for the tax purposes of this state as both a 177
deduction from income and a credit against the tax. This 178
addition is not intended to result in a dding the same expense 179
back to income more than once. 180
12. The amount taken as a credit for the taxable year 181
under s. 220.193. 182
13. Any portion of a qualified investment, as defined in 183
s. 288.9913, which is claimed as a deduction by the taxpayer and 184
taken as a credit against income tax pursuant to s. 288.9916. 185
14. The costs to acquire a tax credit pursuant to s. 186
288.1254(5) that are deducted from or otherwise reduce federal 187
taxable income for the taxable year. 188
15. The amount taken as a credit for the taxable year 189
pursuant to s. 220.194. 190
16. The amount taken as a credit for the taxable year 191
under s. 220.196. The addition in this subparagraph is intended 192
to ensure that the same amount is not allowed for the tax 193
purposes of this state as both a deductio n from income and a 194
credit against the tax. The addition is not intended to result 195
in adding the same expense back to income more than once. 196
17. The amount taken as a credit for the taxable year 197
pursuant to s. 220.198. 198
18. The amount taken as a credit for the taxable year 199
pursuant to s. 220.1915. 200
CS/HB 475 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0475-01-c1
Page 9 of 9
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
19. The amount taken as a credit for the taxable year 201
pursuant to s. 220.199. 202
Section 5. This act shall take effect July 1, 2023. 203