No. SB 238
Filed under Taxes & Budget.
Corporate Income Tax; Revising the definition of the term “adjusted federal income” to prohibit specified deductions, limit certain carryovers, and require subtractions of certain dividends paid and received within a unitary combined group to determine subtractions from taxable income; repealing a provision relating to the adjusted federal income of affiliated groups; specifying circumstances under which a corporation is considered a member of a unitary combined group; specifying requirements for, limitations on, and prohibitions in calculating and reporting income in a unitary combined group return, etc.
Plain English Summary
AI-GENERATEDFlorida repeals the existing consolidated return framework for affiliated groups. Corporations can no longer file a single return under the old rules. This eliminates a long-standing filing option for many businesses.
The bill creates a new unitary combined group reporting system. All members of a unitary group must file a single combined return. This mandates a specific calculation method for determining taxable income.
The definition of adjusted federal income is revised to reflect unitary group income. Specific deductions and intercompany dividends are now subject to new subtraction rules. This changes how corporate income is calculated for tax purposes.
The department loses its specific authority to create regulations for consolidated reporting. The new unitary framework replaces the old regulatory structure entirely. This shifts the administrative focus to the new reporting method.
AIRemoves the legal requirement for affiliated groups to file a single consolidated return, replacing it with a new unitary combined group framework.
AIMandates that all members of a unitary combined group file a single return using a combined reporting method, with specific rules for apportionment and intercompany transactions.
AIEstablishes that a corporation is a member of a unitary combined group if it has 50% or more ownership or is functionally integrated with the group's business activities.
AIRequires all members of a unitary combined group to file a single combined return, eliminating the option to file separately.
AIEliminates the ability for taxpayers filing consolidated returns to claim various tax credits on a consolidated basis, including community contribution, scholarship funding, and charitable organization credits.
AIChanges the calculation of adjusted federal income to reflect the taxable income of a unitary combined group rather than multiple taxpayers, and adds specific subtractions for intercompany dividends.
AIStrips the department of the specific statutory authority to create regulations for consolidated reporting of affiliated groups.
AIProhibits affiliated group members or related entities from using a tax credit earned by a specific qualifying business, limiting the credit to the entity that earned it.