HB 1335 Summary: Fair Economy Act

• Water's Edge Group Taxation: Replaces affiliated group consolidated returns with "water's edge group" combined reporting for multistate/multinational corporations, requiring all group members to file a single return in Florida with combined adjusted federal income and apportionment factors.

• Tax Haven and Corporate Definitions: Defines "tax haven" based on OECD criteria and establishes rules for determining water's edge group membership, including provisions to exclude corporations with 80%+ property/payroll outside the United States.

• Economic Development Incentive Accountability: Creates comprehensive reporting and monitoring requirements for all economic development incentives of $25,000 or more, including unified applications, annual progress reports, and wage/employment verification by granting authorities.

• Incentive Recapture Provisions: Authorizes recapture of economic development incentives if recipients fail to meet job creation, wage, and health care coverage targets within 2 years, or if corporate parents fail to maintain 90% of state employment levels.

• Repeal and Transition: Repeals prior affiliated group consolidated return provisions (s. 220.131) and establishes transitional rules requiring taxpayers to convert to water's edge group reporting by January 1, 2013.