The Florida Senate adopted amendments to a House federal conformity bill. Like the House version, the Internal Revenue Code (IRC) in effect on January 1, 2018 would be adopted for Florida corporate income tax.
The Senate did not make changes to a provision that would:
- require an addition adjustment for the 100% federal bonus depreciation deduction under IRC Sec. 168(k) enacted by the federal Tax Cuts and Jobs Act of 2017 (TCJA) (P.L. 115-97); and
- allow a subtraction adjustment for 1/7th of the bonus depreciation addback amount over 7 tax years.
Expense Deduction and Rate Reduction
The Senate eliminated provisions that would:
- require an addition adjustment for any federal IRC Sec. 179 asset expense deduction exceeding $500,000;
- allow a subtraction adjustment for 1/7th of the expense addback amount over 7 tax years; and
- create an automatic corporate income and bank franchise tax rate reduction if fiscal year collections for those taxes exceed adjusted forecasted collections.
Study of Federal Tax Changes
The Senate incorporated a provision from its own federal conformity bill (TAXDAY, 2018/02/28, S.3) that would establish a workgroup to study the revenue impact of the TCJA.
The bill has been sent back to the House for concurrence with the Senate changes.
H.B. 7093, as passed by the Florida Senate on March 8, 2018