THE BILL ITSELF
HB 7031
Internal Revenue Code
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An act relating to the Internal Revenue Code; amending
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s. 220.03, F.S.; revising the definition of the term
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"Internal Revenue Code"; amending s. 220.13, F.S.;
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conforming provisions to changes made by the act;
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providing for retroactive application; requiring the
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Department of Revenue to adopt rules; authorizing the
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department to adopt emergency rules; providing an
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effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Paragraph (n) of subsection (1) and paragraph
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(c) of subsection (2) of section 220.03, Florida Statutes, are
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amended to read:
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220.03 Definitions.—
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(1) SPECIFIC TERMS.—When used in this code, and when not
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otherwise distinctly expressed or manifestly incompatible with
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the intent thereof, the following terms shall have the following
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meanings:
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(n) "Internal Revenue Code" means the United States
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Internal Revenue Code of 1986, as amended and in effect on
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January 1, 2026 2025, except:
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1. As provided in subsection (3);
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2. Sections 168(k), 174(a), 163(j), 274, and 179 of the
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United States Internal Revenue Code of 1986 are included as
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amended and in effect on January 1, 2025; and
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3. Sections 168(n) and 174A are not included.
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(2) DEFINITIONAL RULES.—When used in this code and neither
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otherwise distinctly expressed nor manifestly incompatible with
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the intent thereof:
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(c) Any term used in this code has the same meaning as
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when used in a comparable context in the Internal Revenue Code
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and other statutes of the United States relating to federal
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income taxes, as such code and statutes are in effect on January
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1, 2026, except as provided in paragraph (1)(n) 2025. However,
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if subsection (3) is implemented, the meaning of a term shall be
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taken at the time the term is applied under this code.
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Section 2. Subsection (2) of section 220.13, Florida
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Statutes, is amended to read:
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220.13 "Adjusted federal income" defined.—
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(2) For purposes of this section, a taxpayer's taxable
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income for the taxable year means taxable income as defined in
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s. 63 of the Internal Revenue Code and properly reportable for
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federal income tax purposes for the taxable year, except as
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provided in s. 220.03(1)(n) and (2)(c), but subject to the
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limitations set forth in paragraph (1)(b) with respect to the
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deductions provided by ss. 172 (relating to net operating
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losses), 170(d)(2) (relating to excess charitable
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contributions), 404(a)(1)(D) (relating to excess pension trust
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contributions), 404(a)(3)(A) and (B) (to the extent relating to
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excess stock bonus and profit-sharing trust contributions), and
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1212 (relating to capital losses) of the Internal Revenue Code,
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except that, subject to the same limitations, the term:
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(a) "Taxable income," in the case of a life insurance
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company subject to the tax imposed by s. 801 of the Internal
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Revenue Code, means life insurance company taxable income;
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however, for purposes of this code, the total of any amounts
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subject to tax under s. 815(a)(2) of the Internal Revenue Code
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pursuant to s. 801(c) of the Internal Revenue Code shall not
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exceed, cumulatively, the total of any amounts determined under
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s. 815(c)(2) of the Internal Revenue Code of 1954, as amended,
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from January 1, 1972, to December 31, 1983;
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(b) "Taxable income," in the case of an insurance company
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subject to the tax imposed by s. 831(b) of the Internal Revenue
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Code, means taxable investment income;
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(c) "Taxable income," in the case of an insurance company
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subject to the tax imposed by s. 831(a) of the Internal Revenue
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Code, means insurance company taxable income;
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(d) "Taxable income," in the case of a regulated
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investment company subject to the tax imposed by s. 852 of the
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Internal Revenue Code, means investment company taxable income;
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(e) "Taxable income," in the case of a real estate
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investment trust subject to the tax imposed by s. 857 of the
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Internal Revenue Code, means the income subject to tax, computed
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as provided in s. 857 of the Internal Revenue Code;
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(f) "Taxable income," in the case of a corporation which
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is a member of an affiliated group of corporations filing a
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consolidated income tax return for the taxable year for federal
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income tax purposes, means taxable income of such corporation
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for federal income tax purposes as if such corporation had filed
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a separate federal income tax return for the taxable year and
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each preceding taxable year for which it was a member of an
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affiliated group, unless a consolidated return for the taxpayer
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and others is required or elected under s. 220.131;
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(g) "Taxable income," in the case of a cooperative
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corporation or association, means the taxable income of such
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organization determined in accordance with the provisions of ss.
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1381-1388 of the Internal Revenue Code;
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(h) "Taxable income," in the case of an organization which
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is exempt from the federal income tax by reason of s. 501(a) of
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the Internal Revenue Code, means its unrelated business taxable
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income as determined under s. 512 of the Internal Revenue Code;
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(i) "Taxable income," in the case of a corporation for
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which there is in effect for the taxable year an election under
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s. 1362(a) of the Internal Revenue Code, means the amounts
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subject to tax under s. 1374 or s. 1375 of the Internal Revenue
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Code for each taxable year;
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(j) "Taxable income," in the case of a limited liability
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company, other than a limited liability company classified as a
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partnership for federal income tax purposes, as defined in and
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organized pursuant to chapter 605 or qualified to do business in
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this state as a foreign limited liability company or other than
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a similar limited liability company classified as a partnership
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for federal income tax purposes and created as an artificial
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entity pursuant to the statutes of the United States or any
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other state, territory, possession, or jurisdiction, if such
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limited liability company or similar entity is taxable as a
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corporation for federal income tax purposes, means taxable
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income determined as if such limited liability company were
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required to file or had filed a federal corporate income tax
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return under the Internal Revenue Code;
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(k) "Taxable income," in the case of a taxpayer liable for
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the alternative minimum tax as defined in s. 55 of the Internal
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Revenue Code, means the alternative minimum taxable income as
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defined in s. 55(b)(2) of the Internal Revenue Code, less the
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exemption amount computed under s. 55(d) of the Internal Revenue
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Code. A taxpayer is not liable for the alternative minimum tax
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unless the taxpayer's federal tax return, or related federal
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consolidated tax return, if included in a consolidated return
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for federal tax purposes, reflect a liability on the return
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filed for the alternative minimum tax as defined in s. 55(b)(2)
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of the Internal Revenue Code;
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(l) "Taxable income," in the case of a taxpayer whose
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taxable income is not otherwise defined in this subsection,
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means the sum of amounts to which a tax rate specified in s. 11
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of the Internal Revenue Code plus the amount to which a tax rate
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specified in s. 1201(a)(2) of the Internal Revenue Code are
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applied for federal income tax purposes.
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Section 3. (1) The amendments made by this act to ss.
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220.03(1)(n) and (2)(c) and 220.13(2), Florida Statutes, operate
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retroactively to January 1, 2026.
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(2) Pursuant to the rulemaking authority in s. 213.06,
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Florida Statutes, and the specific authority in s. 213.05,
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Florida Statutes, for the Department of Revenue to regulate,
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control, and administer all revenue laws therein, including all
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portions of chapter 220, Florida Statutes, the Department of
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Revenue shall adopt rules to implement this act.
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(3) The Department of Revenue is authorized, and all
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conditions are deemed met, to adopt emergency rules under s.
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120.54(4), Florida Statutes, for the purpose of implementing
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this act. Notwithstanding any other law, emergency rules adopted
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under this section are effective for 6 months after adoption and
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may be renewed during the pendency of procedures to adopt
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permanent rules addressing the subject of the emergency rules.
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Section 4. This act shall take effect upon becoming a law.