Legislature Begins Examining Federal Tax Reform Impacts on Florida

The House Ways and Means Committee has begun its initial work of examining the impact of the federal Tax Cuts and Jobs Act (TCJA) for Florida corporate income tax purposes. Today, the committee heard a presentation from committee staff and the Florida Department of Revenue (DOR) on how the changes to the Internal Revenue Code are impacting corporations in Florida and have expanded the tax base. Like many other states, Florida uses federal taxable income as a starting point to determine Florida income for the purposes of corporate income tax. Because of the many changes contained within the TCJA, it is estimated that a full adoption, or “piggyback” of these changes, would increase Florida’s tax base by 13 percent.

This follows a nearly year-long review by DOR at the direction of the Legislature. DOR recently released an examination of the TCJA and identified 14 topics that will have a significant impact on Florida’s corporate income tax. These topics are the same that have been identified in previous status reports and have been brought to DOR through public testimony, including:

  • Like-kind exchanges,
  • Global Intangible Low-Tax Income (GILTI), and
  • Net interest deductions.

The final report includes a full analysis of each topic, including an analysis on the impact to state revenue. The Florida Chamber offered comment in a written letter to the Department of Revenue encouraging Florida to decouple from the GILTI and net interest deduction changes in the TCJA. The Florida Chamber will continue to be engaged as this is the initial step as the Florida Legislature uses the information from this report and today’s workshop to implement federal tax reform changes for state corporate income tax purposes.

Share With Your CFO

Share this important message with your company’s CFO to help ensure they have the latest information on this important issue. For more details, contact Carolyn Johnson at cjohnson@flchamber.com or at 850-521-1235 to get involved in our efforts to ensure Florida’s tax climate remains competitive.

New Report Highlights Federal Tax Reform Impacts on Florida 

The Florida Department of Revenue (DOR) recently released an examination of the federal Tax Cuts and Jobs Act of 2017’s (TCJA) impact in Florida – a nearly year-long review that was directed by the Florida Legislature. Like many other states, Florida uses federal taxable income as a starting point to determine Florida income for the purposes of corporate income tax. Because of the many changes contained within the TCJA, it is estimated that a full adoption, or “piggyback” of these changes, would increase Florida’s tax base by 13 percent.

DOR identified 14 topics that will have a significant impact on Florida’s corporate income tax.  These topics are the same that have been identified in previous status reports and have been brought to DOR through public testimony, including:

  • Like-kind exchanges,
  • Global Intangible Low-Tax Income (GILTI) and
  • Net interest deductions.

The final report includes a full analysis of each topic, including an analysis on the impact to state revenue. The Florida Chamber offered comment in a written letter to the Department of Revenue encouraging Florida to decouple from the GILTI and net interest deduction changes in the TCJA.  We will continue to be engaged as the Florida Legislature uses the information from this report to implement federal tax reform changes for state corporate income tax purposes.

Share With Your CFO

Share this important message with your company’s CFO to help ensure they have the latest information on this important issue. For more details, contact Carolyn Johnson at cjohnson@flchamber.com or at 850-521-1235 to get involved in our efforts to ensure Florida’s tax climate remains competitive.

Florida Chamber of Commerce Supports Federal Tax Reform

 

Download Letter   Targeted Tax Reform     Federal Issues

 

There is no better time for federal tax reform than now. That’s why the Florida Chamber of Commerce encourages Congress to capitalize on this historic opportunity to advance pro-growth tax reform and to make our country more competitive.

The Florida Chamber has a long history of working on meaningful tax reforms and targeted tax reductions in Florida and has long encouraged lawmakers to reduce taxes on Florida families and job creators.

Under the leadership of Florida Governor Rick Scott, Florida has cut taxes by $7 billion and is now a shining example of how tax reform can make a state more competitive.  Florida is a proud leader in private-sector job creation, and since December, 2010, more than 1.4 million jobs have been created.  In 2016, Florida experienced a 3.2 percent increase in job growth –higher than the U.S. job growth of 1.6 percent during the same time.  And Florida’s nearly $1 trillion GDP will see private-sector job growth of two million new jobs by 2030.

Meaningful tax reform will position the United States for stronger economic growth. Lowering taxes, simplifying America’s tax code and cutting the small business tax rate will help reduce burdens on families and create an economic environment this country needs to grow.

Now is the best opportunity Americans have to transform an antiquated system for the betterment of American families and job creators. On behalf of job creators in Florida, the Florida Chamber encourages Congress to pass meaningful tax reform and to secure our nation’s future.

We stand ready to work with you and the administration towards the best interest of Florida and the nation’s economy.