Florida amended a corporate income tax rule to reflect:
– the repeal of its alternative minimum tax (AMT); and
– changes to the its bonus depreciation addback statute.
Florida imposed an AMT at a rate of 3.3% on corporations required to pay the federal AMT. The Tax Cuts and Jobs Act (TCJA) repealed the federal AMT for tax years beginning after 2017. So, Florida taxpayers are also no longer required to pay the state AMT for tax years after 2017.
Taxpayers that paid the AMT qualified to claim a credit against Florida corporate income tax liability. A taxpayer that earned credits before the AMT repeal must compute the tax to determine the amount of unused credits they can claim against corporate income tax liability.
Bonus Depreciation Addback Changes
Florida requires an addback for all federal bonus depreciation allowed under IRC Sec. 168(k). The rule incorporates legislation that extended the addback to bonus depreciation for property placed in service after 2007 and before 2027.
Rule 12C-1.013, Florida Department of Revenue, effective January 8, 2019