FL S1006

Allows dealers and lenders to claim tax credits or refunds for taxes paid on worthless or uncollectable accounts through private-label credit card or dealer credit card programs, provided the accounts were charged off as bad debt on or after January 1, 2013.

Requires that credits or refunds be claimed within 12 months after the month the bad debt is charged off for federal income tax purposes, and prohibits claiming credits or refunds on the same accounts more than once.

Permits dealers to use either an apportionment method based on sales data and tax remittance, or a sampling methodology agreed upon with the department, to determine the tax amount included in bad debt.

If previously written-off accounts or receivables are later collected in whole or in part, the dealer must report the taxable percentage of collected amounts in the next filed return and pay applicable taxes.

Defines "private-label credit card," "dealer credit," "lender," and "dealer's affiliates" for purposes of the tax credit or refund provisions, and clarifies that credits may be claimed by affiliated entities with 50 percent or greater common ownership.