SB 1240 – Relating to Corporate Income Tax
On Tuesday, February 4, SB 1240 by Senator Joe Gruters (R-Sarasota) was heard by the Senate Commerce and Tourism Committee and was reported favorable with 5 yeas and 0 nays. AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, spoke in support of this legislation.
Florida imposes a 5.5 percent tax on the taxable income of corporations and financial institutions doing business in Florida. A corporation calculates its taxable income for Florida tax purposes by starting with its taxable income determined for federal tax purposes. This means that a corporation paying taxes in Florida receives the same treatment in Florida as is allowed in determining its federal taxable income.
The bill grants eligible car rental, leasing, or financing companies a $2 million tax credit against their Florida corporate taxes paid for the 2018 taxable year. To be eligible for the tax credit, these companies must have deferred gains on the sale of personal property for corporate federal income tax purposes under s. 1031 of the Internal Revenue Code during the August 1, 2016-August 1, 2017 taxable year, and incurred a specific rise in tax liability in the August 1, 2017-August 1, 2018 taxable year.
SB 1240 will now move to the Senate Finance and Tax Committee.
AIF supports a reduced corporate income tax on businesses to encourage corporate growth and the expansion of employment opportunities in Florida.
SB 1642 – Relating to Tax Exemptions
On Tuesday, February 4, SB 1642 by Senator Joe Gruters (R-Sarasota) was heard by the Senate Commerce and Tourism Committee and was reported favorable with 4 yeas and 1 nays. AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, stood in support of this legislation.
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal property, admissions, transient rentals, and a limited number of services.
The bill exempts from sales tax the purchase of aircraft equipment used for advanced training purposes as part of a contract with the U.S. Department of Defense (DOD) or a military branch of a recognized foreign government, as well as certain parts and accessories for industrial machinery and equipment. Specifically, industrial machinery and equipment for the manufacture, processing, compounding, or production of items is tax exempt.
SB 1642 will now move to the Senate Finance and Tax Committee.
AIF supports a tax exemption on industrial machinery that gives manufacturers and industrial businesses in Florida the tools needed to create jobs and continue to drive the economy.
