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HB7031

Update to Florida's Definition of Federal Tax Rules

Last scannedAug 24, 2026, 10:35 AM

In one sentence

This law updates how Florida defines federal tax rules used in state taxes and makes those changes apply retroactively starting January 1, 2026.

Changes the definition of 'Internal Revenue Code' to match federal laws as they existed on January 1, 2025.
Includes specific sections from the federal tax code (Sections 168(k), 174(a), 163(j), 274, and 179) that are treated differently than other rules.
Excludes Sections 168(n) and 174A from the list of included federal rules.
Updates how taxable income is defined for specific types of businesses like insurance companies, real estate investment trusts, cooperatives, and limited liability companies.
Requires changes to take effect retroactively starting on January 1, 2026.

The provided text does not explain why specific federal sections were added or removed.
The full list of rules the Department of Revenue must create is cut off in the provided source material.

Plain language

Internal Revenue Code: The set of federal tax laws that Florida uses as a base for its own state tax rules.
Retroactive application: Making the new law apply to events or taxes from before the law was officially passed, specifically back to January 1, 2026.

Official record

Source attached

Internal Revenue Code

Official activity