6538108, 12CER08-31 - Florida Administrative Rules, Law, Code, Register

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Notice: 6538108

Notice of Emergency Rule

Department:

DEPARTMENT OF REVENUE

Division:

Corporate, Estate and Intangible Tax

Overview

RULE:

12CER08-31

Economic Stimulus Act of 2008 Additions

SPECIFIC REASONS FOR FINDING AN IMMEDIATE DANGER TO THE PUBLIC HEALTH, SAFETY OR WELFARE:

Section 120, Florida Statutes, permits agencies to promulgate emergency rules when there is an immediate danger to the public health, safety, or welfare of Florida citizens. Chapter 2008-206, Laws of Florida, sought to stabilize Florida's Corporate Income Tax revenue after passage of the Economic Stimulus Act of 2008, Pub. L. No. 110-185. The legislative intent behind Chapter 2008-206, Laws of Florida, apparently was to permit corporate taxpayers to retain the same depreciation and expensing deductions in 2008 that taxpayers had under the Internal Revenue Code in effect on January 1, 2007, and for any remaining business expenses, including depreciation deductions, to be recognized in future years. Legislative leaders have made clear their intent to address technical deficiencies in the language of Chapter 2008-206, Laws of Florida, by the close of the 2009 regular legislative session. Florida corporate taxpayers are likely to suffer significant economic impacts resulting from the uncertainty in current Florida law created by Chapter 2008-206, Laws of Florida, which may result in the loss of Florida jobs, decisions not to make investments in capital assets located in Florida, and negative impacts on market capitalization of Florida businesses. Given the recent developments in the national and state economic environments, Florida’s corporate taxpayers require certainty in the tax effects of Chapter 2008-206, Laws of Florida, in order to not further harm the welfare of Florida's economic environment.

REASON FOR CONCLUDING THAT THE PROCEDURE IS FAIR UNDER THE CIRCUMSTANCES:

Emergency rulemaking is fair under the circumstances because, without the certainty required by Florida corporate taxpayers, immediate and unintended financial impacts will be felt by these taxpayers before the technical deficiencies in the language of Chapter 2008-206, Laws of Florida, can be addressed as indicated by Legislative leaders. Such impacts will present further harm to the welfare of Florida's economic environment.

SUMMARY:

Emergency Rule 12CER08-31, F.A.C., (Economic Stimulus Act of 2008 Additions): (1) provides that taxpayers subject to the add-back provisions in Sections 220.13(1)(a)14. and 15., F.S., are required to add-back 2008 federal deductions under Sections 168(k) and 179 of the Internal Revenue Code caused by changes passed in the Economic Stimulus Act of 2008, Pub. L. No. 110-185, adjusted by the difference between depreciation deductions taken and depreciation deduction that could have been taken if deductions under Sections 168(k) and 179 permitted by the Economic Stimulus Act of 2008, Pub. L. No. 110-185, had not been taken; (2) provides that taxpayers are allowed to make an adjustment in tax years following 2008 for the difference between depreciation deductions taken and depreciation deduction that could have been taken if deductions under Sections 168(k) and 179 permitted by the Economic Stimulus Act of 2008, Pub. L. No. 110-185, had not been taken; and (3) requires that additions and adjustments shall be reported on a schedule included with returns filed.

THE PERSON TO BE CONTACTED REGARDING THE EMERGENCY RULE IS:

Robert Babin, Deputy Director, Technical Assistance and Dispute Resolution, Department of Revenue, P.O. Box 7443, Tallahassee, Florida 32314-7443, telephone (850)922-4842

PRINT PUBLISH DATE:

12/19/2008 Vol. 34/51

OVERSIGHT COMMITTEE:

Joint Administrative Procedures Committee
Florida Administrative Law Central Online Network (F.A.L.C.O.N.)

RELATED COURT CASES:

Division of Administrative Hearings

FEDERAL eRULEMAKING
WEB PORTAL:

Regulations.gov

HOW TO LINK TO
THIS NOTICE:

http://flrules.org/gateway/ruleno.asp?id=12CER08-31&PDate=12/19/2008&Section=4

REFERENCE MATERIALS:

No reference(s).

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