In Florida, House Bill 7127 has passed both houses of the legislature and should soon be sent to Governor DeSantis for signature. If enacted, the bill would adopt a subtraction for all amounts included in taxable income under IRC section 951A. This subtraction would be allowed only to the extent such amount is not deductible in determining federal taxable income. Florida is a line 30 state, which means that the deductions allowed under IRC section 250 are included in Florida’s starting point. This change is effective retroactively to January 1, 2018.
House Bill 7127 would also require corporate taxpayers to report certain information to the Department of Revenue for tax years beginning during the 2018 and 2019 calendar years. Taxpayers that fail to comply with these reporting requirements would be subject to penalties. Finally, the bill would extend the current temporary, automatic tax rate and refund mechanism that applies if fiscal year 2018-2019 collections exceed “adjusted forecasted collections” for an additional two years. Please contact Jeremy Dukes at 954-847-3971 or Henry Parcinski at 954-847-3943 with questions.