HB 1427 2024
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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 taxable income of licensed medical 2
marijuana treatment centers; amending s. 220.13, F.S.; 3
authorizing certain businesses to subtract specified 4
deductions and credits from their taxable income; 5
providing an effective date. 6
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Be It Enacted by the Legislature of the State of Florida: 8
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Section 1. Paragraph (b) of subsection (1) of section 10
220.13, Florida Statutes, is amended to read: 11
220.13 "Adjusted federal income" defined. — 12
(1) The term "adjusted federal income" means an amount 13
equal to the taxpayer's taxable income as defined in subsection 14
(2), or such taxable income of more than one taxpayer as 15
provided in s. 220.131, for the taxable y ear, adjusted as 16
follows: 17
(b) Subtractions.— 18
1. There shall be subtracted from such taxable income: 19
a. The net operating loss deduction allowable for federal 20
income tax purposes under s. 172 of the Internal Revenue Code 21
for the taxable year ;, 22
b. The net capital loss allowable for federal income tax 23
purposes under s. 1212 of the Internal Revenue Code for the 24
taxable year;, 25
HB 1427 2024
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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. The excess charitable contribution deduction allowable 26
for federal income tax purposes under s. 170(d)(2) of the 27
Internal Revenue Code for the taxable year ;, and 28
d. The excess contributions deductions allowable for 29
federal income tax purposes under s. 404 of the Internal Revenue 30
Code for the taxable year ; and 31
e. In the case of a medical marijuana treatment center 32
licensed pursuant to s. 381.986, the deductions and credits that 33
would have been allowable for federal income tax purposes if not 34
for s. 280E of the Internal Revenue Code . 35
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However, a net operating loss and a capital loss shall never be 37
carried back as a deduction t o a prior taxable year, but all 38
deductions attributable to such losses shall be deemed net 39
operating loss carryovers and capital loss carryovers, 40
respectively, and treated in the same manner, to the same 41
extent, and for the same time periods as are prescri bed for such 42
carryovers in ss. 172 and 1212, respectively, of the Internal 43
Revenue Code. 44
2. There shall be subtracted from such taxable income any 45
amount to the extent included therein the following: 46
a. Dividends treated as received from sources without the 47
United States, as determined under s. 862 of the Internal 48
Revenue Code. 49
b. All amounts included in taxable income under s. 78, s. 50
HB 1427 2024
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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
951, or s. 951A of the Internal Revenue Code. 51
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However, any amount subtracted under this subparagraph is 53
allowed only to the extent such amount is not deductible in 54
determining federal taxable income. As to any amount subtracted 55
under this subparagraph, there shall be added to such taxable 56
income all expenses deducted on the taxpayer's return for the 57
taxable year which are attributable, directly or indirectly, to 58
such subtracted amount. Further, no amount shall be subtracted 59
with respect to dividends paid or deemed paid by a Domestic 60
International Sales Corporation. 61
3. In computing "adjusted federal income" for tax able 62
years beginning after December 31, 1976, there shall be allowed 63
as a deduction the amount of wages and salaries paid or incurred 64
within this state for the taxable year for which no deduction is 65
allowed pursuant to s. 280C(a) of the Internal Revenue Co de 66
(relating to credit for employment of certain new employees). 67
4. There shall be subtracted from such taxable income any 68
amount of nonbusiness income included therein. 69
5. There shall be subtracted any amount of taxes of 70
foreign countries allowable as credits for taxable years 71
beginning on or after September 1, 1985, under s. 901 of the 72
Internal Revenue Code to any corporation which derived less than 73
20 percent of its gross income or loss for its taxable year 74
ended in 1984 from sources within the Unite d States, as 75
HB 1427 2024
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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
described in s. 861(a)(2)(A) of the Internal Revenue Code, not 76
including credits allowed under ss. 902 and 960 of the Internal 77
Revenue Code, withholding taxes on dividends within the meaning 78
of sub-subparagraph 2.a., and withholding taxes on r oyalties, 79
interest, technical service fees, and capital gains. 80
6. Notwithstanding any other provision of this code, 81
except with respect to amounts subtracted pursuant to 82
subparagraphs 1. and 3., any increment of any apportionment 83
factor which is directly related to an increment of gross 84
receipts or income which is deducted, subtracted, or otherwise 85
excluded in determining adjusted federal income shall be 86
excluded from both the numerator and denominator of such 87
apportionment factor. Further, all valuations made for 88
apportionment factor purposes shall be made on a basis 89
consistent with the taxpayer's method of accounting for federal 90
income tax purposes. 91
Section 2. This act shall take effect July 1, 2024. 92