Florida Senate - 2024 SB 974 By Senator Rodriguez 40-01641-24 2024974__ 1 A bill to be entitled 2 An act relating to the corporate income tax; amending 3 s. 220.13, F.S.; requiring the subtraction from 4 adjusted federal income of certain expenditures of a 5 taxpayer that is a medical marijuana treatment center; 6 providing an effective date. 7 8 Be It Enacted by the Legislature of the State of Florida: 9 10 Section 1.Paragraph (b) of subsection (1) of section 11 220.13, Florida Statutes, is amended to read: 12 220.13Adjusted federal income defined. 13 (1)The term adjusted federal income means an amount 14 equal to the taxpayers taxable income as defined in subsection 15 (2), or such taxable income of more than one taxpayer as 16 provided in s. 220.131, for the taxable year, adjusted as 17 follows: 18 (b)Subtractions. 19 1.There shall be subtracted from such taxable income: 20 a.The net operating loss deduction allowable for federal 21 income tax purposes under s. 172 of the Internal Revenue Code 22 for the taxable year;, 23 b.The net capital loss allowable for federal income tax 24 purposes under s. 1212 of the Internal Revenue Code for the 25 taxable year;, 26 c.The excess charitable contribution deduction allowable 27 for federal income tax purposes under s. 170(d)(2) of the 28 Internal Revenue Code for the taxable year;, and 29 d.The excess contributions deductions allowable for 30 federal income tax purposes under s. 404 of the Internal Revenue 31 Code for the taxable year; and 32 e.For a taxpayer that is a medical marijuana treatment 33 center under s. 381.986(8), an amount equal to any expenditure 34 that is eligible to be claimed as a federal income tax deduction 35 but is disallowed because marijuana is a controlled substance 36 under federal law. 37 38 However, a net operating loss and a capital loss shall never be 39 carried back as a deduction to a prior taxable year, but all 40 deductions attributable to such losses shall be deemed net 41 operating loss carryovers and capital loss carryovers, 42 respectively, and treated in the same manner, to the same 43 extent, and for the same time periods as are prescribed for such 44 carryovers in ss. 172 and 1212, respectively, of the Internal 45 Revenue Code. 46 2.There shall be subtracted from such taxable income any 47 amount to the extent included therein the following: 48 a.Dividends treated as received from sources without the 49 United States, as determined under s. 862 of the Internal 50 Revenue Code. 51 b.All amounts included in taxable income under s. 78, s. 52 951, or s. 951A of the Internal Revenue Code. 53 54 However, any amount subtracted under this subparagraph is 55 allowed only to the extent such amount is not deductible in 56 determining federal taxable income. As to any amount subtracted 57 under this subparagraph, there shall be added to such taxable 58 income all expenses deducted on the taxpayers return for the 59 taxable year which are attributable, directly or indirectly, to 60 such subtracted amount. Further, no amount shall be subtracted 61 with respect to dividends paid or deemed paid by a Domestic 62 International Sales Corporation. 63 3.In computing adjusted federal income for taxable years 64 beginning after December 31, 1976, there shall be allowed as a 65 deduction the amount of wages and salaries paid or incurred 66 within this state for the taxable year for which no deduction is 67 allowed pursuant to s. 280C(a) of the Internal Revenue Code 68 (relating to credit for employment of certain new employees). 69 4.There shall be subtracted from such taxable income any 70 amount of nonbusiness income included therein. 71 5.There shall be subtracted any amount of taxes of foreign 72 countries allowable as credits for taxable years beginning on or 73 after September 1, 1985, under s. 901 of the Internal Revenue 74 Code to any corporation which derived less than 20 percent of 75 its gross income or loss for its taxable year ended in 1984 from 76 sources within the United States, as described in s. 77 861(a)(2)(A) of the Internal Revenue Code, not including credits 78 allowed under ss. 902 and 960 of the Internal Revenue Code, 79 withholding taxes on dividends within the meaning of sub 80 subparagraph 2.a., and withholding taxes on royalties, interest, 81 technical service fees, and capital gains. 82 6.Notwithstanding any other provision of this code, except 83 with respect to amounts subtracted pursuant to subparagraphs 1. 84 and 3., any increment of any apportionment factor which is 85 directly related to an increment of gross receipts or income 86 which is deducted, subtracted, or otherwise excluded in 87 determining adjusted federal income shall be excluded from both 88 the numerator and denominator of such apportionment factor. 89 Further, all valuations made for apportionment factor purposes 90 shall be made on a basis consistent with the taxpayers method 91 of accounting for federal income tax purposes. 92 Section 2.This act shall take effect July 1, 2024.