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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1
An act relating to the Internal Revenue Code; amending 2
s. 220.03, F.S.; revising the definition of the term 3
"Internal Revenue Code"; amending s. 220.13, F.S.; 4
conforming provisions to changes made by the act; 5
providing for retroactive application; requiring the 6
Department of Revenue to adopt rules; authorizing the 7
department to adopt emergency rules; providing an 8
effective date. 9
10
Be It Enacted by the Legislature of the State of Florida: 11
12
Section 1. Paragraph (n) of subsection (1) and paragraph 13
(c) of subsection (2) of section 220.03, Florida Statutes, are 14
amended to read: 15
220.03 Definitions.— 16
(1) SPECIFIC TERMS.—When used in this code, and when not 17
otherwise distinctly expressed or manifestly incompatible with 18
the intent thereof, the following terms shall have the following 19
meanings: 20
(n) "Internal Revenue Code" means the United States 21
Internal Revenue Code of 1986, as amended and in effect on 22
January 1, 2026 2025, except: 23
1. As provided in subsection (3); 24
2. Sections 168(k), 174(a), 163(j), 274, and 179 of the 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
United States Internal Revenue Code of 1986 are included as 26
amended and in effect on January 1, 2025; and 27
3. Sections 168(n) and 174A are not included. 28
(2) DEFINITIONAL RULES.—When used in this code and neither 29
otherwise distinctly expressed nor manifestly incompatible with 30
the intent thereof: 31
(c) Any term used in this code has the same meaning as 32
when used in a comparable context in the Internal Revenue Code 33
and other statutes of the United States relating to federal 34
income taxes, as such code and statutes are in effect on January 35
1, 2026, except as provided in paragraph (1)(n) 2025. However, 36
if subsection (3) is implemented, the meaning of a term shall be 37
taken at the time the term is applied under this code. 38
Section 2. Subsection (2) of section 220.13, Florida 39
Statutes, is amended to read: 40
220.13 "Adjusted federal income" defined.— 41
(2) For purposes of this section, a taxpayer's taxable 42
income for the taxable year means taxable income as defined in 43
s. 63 of the Internal Revenue Code and properly reportable for 44
federal income tax purposes for the taxable year, except as 45
provided in s. 220.03(1)(n) and (2)(c), but subject to the 46
limitations set forth in paragraph (1)(b) with respect to the 47
deductions provided by ss. 172 (relating to net operating 48
losses), 170(d)(2) (relating to excess charitable 49
contributions), 404(a)(1)(D) (relating to excess pension trust 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
contributions), 404(a)(3)(A) and (B) (to the extent relating to 51
excess stock bonus and profit-sharing trust contributions), and 52
1212 (relating to capital losses) of the Internal Revenue Code, 53
except that, subject to the same limitations, the term: 54
(a) "Taxable income," in the case of a life insurance 55
company subject to the tax imposed by s. 801 of the Internal 56
Revenue Code, means life insurance company taxable income; 57
however, for purposes of this code, the total of any amounts 58
subject to tax under s. 815(a)(2) of the Internal Revenue Code 59
pursuant to s. 801(c) of the Internal Revenue Code shall not 60
exceed, cumulatively, the total of any amounts determined under 61
s. 815(c)(2) of the Internal Revenue Code of 1954, as amended, 62
from January 1, 1972, to December 31, 1983; 63
(b) "Taxable income," in the case of an insurance company 64
subject to the tax imposed by s. 831(b) of the Internal Revenue 65
Code, means taxable investment income; 66
(c) "Taxable income," in the case of an insurance company 67
subject to the tax imposed by s. 831(a) of the Internal Revenue 68
Code, means insurance company taxable income; 69
(d) "Taxable income," in the case of a regulated 70
investment company subject to the tax imposed by s. 852 of the 71
Internal Revenue Code, means investment company taxable income; 72
(e) "Taxable income," in the case of a real estate 73
investment trust subject to the tax imposed by s. 857 of the 74
Internal Revenue Code, means the income subject to tax, computed 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
as provided in s. 857 of the Internal Revenue Code; 76
(f) "Taxable income," in the case of a corporation which 77
is a member of an affiliated group of corporations filing a 78
consolidated income tax return for the taxable year for federal 79
income tax purposes, means taxable income of such corporation 80
for federal income tax purposes as if such corporation had filed 81
a separate federal income tax return for the taxable year and 82
each preceding taxable year for which it was a member of an 83
affiliated group, unless a consolidated return for the taxpayer 84
and others is required or elected under s. 220.131; 85
(g) "Taxable income," in the case of a cooperative 86
corporation or association, means the taxable income of such 87
organization determined in accordance with the provisions of ss. 88
1381-1388 of the Internal Revenue Code; 89
(h) "Taxable income," in the case of an organization which 90
is exempt from the federal income tax by reason of s. 501(a) of 91
the Internal Revenue Code, means its unrelated business taxable 92
income as determined under s. 512 of the Internal Revenue Code; 93
(i) "Taxable income," in the case of a corporation for 94
which there is in effect for the taxable year an election under 95
s. 1362(a) of the Internal Revenue Code, means the amounts 96
subject to tax under s. 1374 or s. 1375 of the Internal Revenue 97
Code for each taxable year; 98
(j) "Taxable income," in the case of a limited liability 99
company, other than a limited liability company classified as a 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
partnership for federal income tax purposes, as defined in and 101
organized pursuant to chapter 605 or qualified to do business in 102
this state as a foreign limited liability company or other than 103
a similar limited liability company classified as a partnership 104
for federal income tax purposes and created as an artificial 105
entity pursuant to the statutes of the United States or any 106
other state, territory, possession, or jurisdiction, if such 107
limited liability company or similar entity is taxable as a 108
corporation for federal income tax purposes, means taxable 109
income determined as if such limited liability company were 110
required to file or had filed a federal corporate income tax 111
return under the Internal Revenue Code; 112
(k) "Taxable income," in the case of a taxpayer liable for 113
the alternative minimum tax as defined in s. 55 of the Internal 114
Revenue Code, means the alternative minimum taxable income as 115
defined in s. 55(b)(2) of the Internal Revenue Code, less the 116
exemption amount computed under s. 55(d) of the Internal Revenue 117
Code. A taxpayer is not liable for the alternative minimum tax 118
unless the taxpayer's federal tax return, or related federal 119
consolidated tax return, if included in a consolidated return 120
for federal tax purposes, reflect a liability on the return 121
filed for the alternative minimum tax as defined in s. 55(b)(2) 122
of the Internal Revenue Code; 123
(l) "Taxable income," in the case of a taxpayer whose 124
taxable income is not otherwise defined in this subsection, 125
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
means the sum of amounts to which a tax rate specified in s. 11 126
of the Internal Revenue Code plus the amount to which a tax rate 127
specified in s. 1201(a)(2) of the Internal Revenue Code are 128
applied for federal income tax purposes. 129
Section 3. (1) The amendments made by this act to ss. 130
220.03(1)(n) and (2)(c) and 220.13(2), Florida Statutes, operate 131
retroactively to January 1, 2026. 132
(2) Pursuant to the rulemaking authority in s. 213.06, 133
Florida Statutes, and the specific authority in s. 213.05, 134
Florida Statutes, for the Department of Revenue to regulate, 135
control, and administer all revenue laws therein, including all 136
portions of chapter 220, Florida Statutes, the Department of 137
Revenue shall adopt rules to implement this act. 138
(3) The Department of Revenue is authorized, and all 139
conditions are deemed met, to adopt emergency rules under s. 140
120.54(4), Florida Statutes, for the purpose of implementing 141
this act. Notwithstanding any other law, emergency rules adopted 142
under this section are effective for 6 months after adoption and 143
may be renewed during the pendency of procedures to adopt 144
permanent rules addressing the subject of the emergency rules. 145
Section 4. This act shall take effect upon becoming a law. 146