Fla. Stat. § 220.1991

Current through the 2024 Legislative Session

Section 220.1991 - Credit for manufacturing of human breast milk derived human milk fortifiers

Section 49, ch. 2023-157, provides that:

"(1) The Department of Revenue is authorized, and all conditions are deemed met, to adopt emergency rules pursuant to s. 120.54(4), Florida Statutes, to implement the amendments made by this act to ss. 212.031 and 212.08, Florida Statutes; the creation by this act of ss. 220.199 and 220.1991, Florida Statutes; and the creation by this act of the temporary tax exemptions for ENERGY STAR appliances, and gas ranges and cooktops. Notwithstanding any other provision of law, emergency rules adopted pursuant to this subsection are effective for 6 months after adoption and may be renewed during the pendency of procedures to adopt permanent rules addressing the subject of the emergency rules.

"(2) This section shall take effect upon this act becoming a law and expires July 1, 2026."

(1)

(a) For taxable years beginning on or after January 1, 2023, there is allowed a credit of 50 percent of the cost of manufacturing equipment purchased for use in the production of human breast milk derived human milk fortifiers in this state. Such purchase must be made on or before the date the taxpayer is required to file a return pursuant to s. 220.222. The credit granted by this section must be reduced by the difference between the amount of federal corporate income tax, taking into account the credit granted by this section, and the amount of federal corporate income tax without application of the credit granted by this section.

(b) Qualifying manufacturing equipment must be equipment for use in the production of human breast milk derived human milk fortifiers:

1. That can be sold as a product using a pasteurization or sterilization process.

2. In compliance with all applicable United States Food and Drug Administration provisions.

(c) Tax credits under this section are available only for purchases of qualifying manufacturing equipment made during the state fiscal year for which the application is submitted, or during the 6 months preceding such state fiscal year.

(2)

(a) The combined total amount of tax credits which may be granted to taxpayers under this section is $5 million in each of state fiscal years 2023-2024 and 2024-2025.

(b) The annual limitation under paragraph (a) applies for taxpayers whose taxable years begin on or after January 1 of the calendar year preceding the start of the applicable state fiscal year.

(3)

(a) The department may adopt rules governing the manner and form of applications for the tax credit and establishing qualification requirements for the tax credit. The form must include an affidavit certifying that all information contained in the application is true and correct and must require documentation of all costs incurred for which a credit is being claimed.

(b) The department must approve the tax credit prior to the taxpayer taking the credit on a return. The department must approve credits on a first-come, first-served basis. If the department determines that an application is incomplete, the department shall notify the taxpayer in writing and the taxpayer shall have 30 days after receiving such notification to correct any deficiency. If corrected in a timely manner, the application shall be deemed completed as of the date the application was first submitted; however, no additional costs may be added to the application and the amount of credit requested on the application may not be increased during the correction period.

(c) A taxpayer may carry forward any unused portion of a tax credit under this section for up to 5 taxable years.

(4)

(a) A taxpayer who files a Florida consolidated return as a member of an affiliated group pursuant to s. 220.131(1) may be allowed the credit on a consolidated return basis.

(b) A taxpayer may not convey, transfer, or assign an approved tax credit or a carryforward tax credit to another entity unless all of the assets of the taxpayer are conveyed, transferred, or assigned in the same transaction. However, a tax credit under this section may be conveyed, transferred, or assigned between members of an affiliated group of corporations. A taxpayer shall notify the department of its intent to convey, transfer, or assign a tax credit to another member within an affiliated group of corporations. The amount conveyed, transferred, or assigned is available to another member of the affiliated group of corporations upon approval by the department.

(c) Within 10 days after approving or denying the conveyance, transfer, or assignment of a tax credit under paragraph (b), the department shall provide a copy of its approval or denial letter to the corporation.

(5) If a taxpayer applies and is approved for a credit under this section after timely requesting an extension to file under s. 220.222(2), the:

(a) Credit does not reduce the amount of tax due for purposes of the department's determination as to whether the taxpayer was in compliance with the requirement to pay tentative taxes under ss. 220.222 and 220.32.

(b) Taxpayer's noncompliance with the requirement to pay tentative taxes shall result in the revocation and rescindment of any such credit.

(c) Taxpayer shall be assessed for any taxes, penalties, or interest due from the taxpayer's noncompliance with the requirement to pay tentative taxes. For purposes of calculating the underpayment of estimated corporate income taxes under s. 220.34, the final amount due is the amount after credits earned under this section are deducted.

(6) For purposes of determining if a penalty or interest under s. 220.34(2)(d)1. will be imposed for underpayment of estimated corporate income tax, a taxpayer may, after earning a credit under this section, reduce any estimated payment in that taxable year by the amount of the credit.

(7) This section is repealed December 31, 2031.

Fla. Stat. § 220.1991

s.33, ch. 2023-157.

Added by 2023 Fla. Laws, ch. 157,s 33, eff. 7/1/2023.