Florida Corporate Income Tax Glitch Bill Passes Senate 39-1

Legislation designed to “correct” Florida statutes that would have “neutralized” the provisions of a Federal Stimulus Bill that allowed accelerated first-year corporate depreciation deductions and additional first-year expensing by corporate taxpayers passed the Florida Senate by 39-1 on March 3, 2009.  

The bill, SB 1112 Relating to Corporate Income Tax by Thad Altman (R-Melbourne), would amend a “glitch” in Florida’s 2008 corporate tax law by “piggybacking” the State’s corporate income tax to the federal tax code.  As now amended by the Senate, the bill requires corporate taxpayers to add back to taxable income their “bonus depreciation” and then amortize the amount added back over seven years of reductions to taxable income.

The Senate waived its rules in order to hear and vote on the bill on the same date, as well as immediately certify the bill to the House for action.

The Florida Senate passed SB 1112 Relating to Corporate Income Tax by Thad Altman (R-Melbourne) by a vote of 39 to 1 yesterday, March 3, 2009. 

SB 1112 would also:

• Delete certain amendments to federal law pertaining to bonus depreciation for the purposes of adjusted federal income and corporate income tax liability. 
• Make an exception for a federal stimulus provision letting corporations speed up the depreciation of certain assets in 2008
• Delete certain adjustments to federal income
• Require the Florida Department of Revenue to compromise certain penalties and interest under certain circumstances
• Provide for retroactive operation

The bill next will be heard on Special Order in the Florida House, where an identical bill (HB 459) awaits final vote.

Should you have any questions or comments, please contact Colodny Fass.

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