The Florida legislature reached agreement on a corporate income tax federal conformity and rate adjustment bill. The changes, if enacted, will apply retroactively to January 1, 2018.Federal ConformityThe legislation adopts the Internal Revenue Code (IRC) in effect on January 1, 2018 for determining corporate income tax liability.Rate AdjustmentThe bill creates an automatic corporate income and bank franchise tax rate adjustment if fiscal year collections for those taxes exceed adjusted forecasted collections. Unlike the original House version of this provision, the downward adjustment will be:based only on tax collections in the 2018-2019 fiscal year; andused only to provide refunds to taxpayers whose tax year begins between April 1, 2017, and March 31, 2018.Bonus DepreciationAn addition adjustment will be required for the 100% federal bonus depreciation deduction under IRC Sec. 168(k) enacted by the federal Tax Cuts and Jobs Act of 2017 (TCJA) (P.L. 115-97). A subtraction adjustment will be allowed for 1/7th of the bonus depreciation addback amount over 7 tax years.TCJA WorkgroupA workgroup will be established to examine how the implementation of the TCJA will impact the state corporate income tax structure and revenues.H.B. 7093, as passed by the Florida House of Representatives and Senate on March 9, 2018Login to read more tax news on CCH® AnswerConnect or CCH® Intelliconnect®.Not a subscriber? Sign up for a free trial or contact us for a representative.