Florida HB 7031: Internal Revenue Code

Bill Text

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HB 7031, Engrossed 1 2026 Legislature

CODING: Words stricken are deletions; words underlined are additions.
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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

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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
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Be It Enacted by the Legislature of the State of Florida: 11
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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

ENROLLED
HB 7031, Engrossed 1 2026 Legislature

CODING: Words stricken are deletions; words underlined are additions.
hb7031 -01-er
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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

ENROLLED
HB 7031, Engrossed 1 2026 Legislature

CODING: Words stricken are deletions; words underlined are additions.
hb7031 -01-er
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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

ENROLLED
HB 7031, Engrossed 1 2026 Legislature

CODING: Words stricken are deletions; words underlined are additions.
hb7031 -01-er
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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