Florida Senate - 2009                             CS for SB 1502
       
       
       
       By the Committee on Commerce; and Senators Fasano, Haridopolos,
       Richter, and Bennett
       
       
       
       577-02950-09                                          20091502c1
    1                        A bill to be entitled                      
    2         An act relating to Fast Track Economic Stimulus for
    3         Small Businesses; establishing the New Markets
    4         Development Program; amending s. 213.053, F.S.;
    5         authorizing the Department of Revenue to disclose
    6         information relating to certain tax credits to the
    7         Office of Tourism, Trade, and Economic Development;
    8         authorizing penalties for unlawful disclosure of the
    9         information; amending s. 220.02, F.S.; revising the
   10         order in which credits against the corporate income
   11         tax or franchise tax must be applied; amending s.
   12         220.013, F.S.; revising the definition of the term
   13         “adjusted federal income” to include the amount of
   14         certain tax credits; creating s. 288.991, F.S.;
   15         providing a short title; creating s. 288.9912, F.S.;
   16         encouraging capital investment in certain communities
   17         to create and retain jobs through the use of tax
   18         credits; creating s. 288.9913, F.S.; providing
   19         definitions; creating s. 288.9914, F.S.; requiring the
   20         Office of Tourism, Trade, and Economic Development to
   21         identify industries in which certain investments may
   22         be made; providing for a waiver of the limitation;
   23         requiring a qualified community development entity to
   24         submit an application for approval of an investment as
   25         a qualified investment; requiring the Office of
   26         Tourism, Trade, and Economic Development to review and
   27         approve or deny the applications; providing for
   28         partial approval of applications under certain
   29         circumstances; requiring a qualified community
   30         development entity to issue a qualified investment
   31         within a certain time period; requiring a qualified
   32         community development entity to report the issuance of
   33         a qualified investment within a certain time period;
   34         creating s. 288.9915, F.S.; prohibiting certain
   35         interest payments on certain qualified investments for
   36         a certain time period; requiring qualified community
   37         development entities to maintain certain records;
   38         limiting the amount of low-income community
   39         investments that may be received by a qualified active
   40         low-income community business; creating s. 288.9916,
   41         F.S.; creating the new markets tax credit; specifying
   42         the amount of the credit; specifying certain tax years
   43         in which the tax credit may be used; requiring certain
   44         insurance companies to apply the tax credit against
   45         certain taxes; limiting transferability of the tax
   46         credit; creating s. 288.9917, F.S.; requiring a
   47         qualified community development entity to submit
   48         certain reports to the Office of Tourism, Trade, and
   49         Economic Development after a credit allowance date;
   50         requiring the Office of Tourism, Trade, and Economic
   51         Development to certify the tax credit amount that may
   52         be taken by a taxpayer; creating s. 288.9918, F.S.;
   53         requiring a qualified community development entity to
   54         submit annual reports to the Office of Tourism, Trade,
   55         and Economic Development; creating s. 288.9919, F.S.;
   56         subjecting qualified community development entities to
   57         audits under the State Single Audit Act; authorizing
   58         the Office of Tourism, Trade, and Economic Development
   59         to conduct examinations to verify compliance with the
   60         New Markets Development Program Act; creating s.
   61         288.9920, F.S.; authorizing the Office of Tourism,
   62         Trade, and Economic Development to recapture tax
   63         credits under certain circumstances; requiring the
   64         Office of Tourism, Trade, and Economic Development to
   65         issue a proposed notice of recapture; providing an
   66         opportunity to cure a deficiency prior to recapture;
   67         authorizing penalties for submitting fraudulent
   68         information to the Office of Tourism, Trade, and
   69         Economic Development; creating s. 288.9921, F.S.;
   70         authorizing the Office of Tourism, Trade, and Economic
   71         Development to adopt rules; creating s. 288.9922,
   72         F.S.; providing for the expiration of the New Markets
   73         Development Program Act on a certain date; providing
   74         an effective date.
   75  
   76  Be It Enacted by the Legislature of the State of Florida:
   77  
   78         Section 1. Subsection (19) is added to section 213.053,
   79  Florida Statutes, to read:
   80         213.053 Confidentiality and information sharing.—
   81         (19)The department may disclose information relative to
   82  tax credits taken by a taxpayer pursuant to s. 288.9916 to the
   83  Office of Tourism, Trade, and Economic Development or its
   84  employees or agents. Such employees must be identified in
   85  writing by the office to the department. All information
   86  disclosed under this subsection is subject to the same
   87  requirements of confidentiality and the same penalties for
   88  violation of the requirements as the department.
   89         Section 2. Subsection (8) of section 220.02, Florida
   90  Statutes, is amended to read:
   91         220.02 Legislative intent.—
   92         (8) It is the intent of the Legislature that credits
   93  against either the corporate income tax or the franchise tax be
   94  applied in the following order: those enumerated in s. 631.828,
   95  those enumerated in s. 220.191, those enumerated in s. 220.181,
   96  those enumerated in s. 220.183, those enumerated in s. 220.182,
   97  those enumerated in s. 220.1895, those enumerated in s. 221.02,
   98  those enumerated in s. 220.184, those enumerated in s. 220.186,
   99  those enumerated in s. 220.1845, those enumerated in s. 220.19,
  100  those enumerated in s. 220.185, those enumerated in s. 220.187,
  101  those enumerated in s. 220.192, and those enumerated in s.
  102  220.193 and those enumerated in s. 288.9916.
  103         Section 3. Paragraph (a) of subsection (1) of section
  104  220.13, Florida Statutes, is amended to read:
  105         220.13 “Adjusted federal income” defined.—
  106         (1) The term “adjusted federal income” means an amount
  107  equal to the taxpayer’s taxable income as defined in subsection
  108  (2), or such taxable income of more than one taxpayer as
  109  provided in s. 220.131, for the taxable year, adjusted as
  110  follows:
  111         (a) Additions.—There shall be added to such taxable income:
  112         1. The amount of any tax upon or measured by income,
  113  excluding taxes based on gross receipts or revenues, paid or
  114  accrued as a liability to the District of Columbia or any state
  115  of the United States which is deductible from gross income in
  116  the computation of taxable income for the taxable year.
  117         2. The amount of interest which is excluded from taxable
  118  income under s. 103(a) of the Internal Revenue Code or any other
  119  federal law, less the associated expenses disallowed in the
  120  computation of taxable income under s. 265 of the Internal
  121  Revenue Code or any other law, excluding 60 percent of any
  122  amounts included in alternative minimum taxable income, as
  123  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  124  taxpayer pays tax under s. 220.11(3).
  125         3. In the case of a regulated investment company or real
  126  estate investment trust, an amount equal to the excess of the
  127  net long-term capital gain for the taxable year over the amount
  128  of the capital gain dividends attributable to the taxable year.
  129         4. That portion of the wages or salaries paid or incurred
  130  for the taxable year which is equal to the amount of the credit
  131  allowable for the taxable year under s. 220.181. This
  132  subparagraph shall expire on the date specified in s. 290.016
  133  for the expiration of the Florida Enterprise Zone Act.
  134         5. That portion of the ad valorem school taxes paid or
  135  incurred for the taxable year which is equal to the amount of
  136  the credit allowable for the taxable year under s. 220.182. This
  137  subparagraph shall expire on the date specified in s. 290.016
  138  for the expiration of the Florida Enterprise Zone Act.
  139         6. The amount of emergency excise tax paid or accrued as a
  140  liability to this state under chapter 221 which tax is
  141  deductible from gross income in the computation of taxable
  142  income for the taxable year.
  143         7. That portion of assessments to fund a guaranty
  144  association incurred for the taxable year which is equal to the
  145  amount of the credit allowable for the taxable year.
  146         8. In the case of a nonprofit corporation which holds a
  147  pari-mutuel permit and which is exempt from federal income tax
  148  as a farmers’ cooperative, an amount equal to the excess of the
  149  gross income attributable to the pari-mutuel operations over the
  150  attributable expenses for the taxable year.
  151         9. The amount taken as a credit for the taxable year under
  152  s. 220.1895.
  153         10. Up to nine percent of the eligible basis of any
  154  designated project which is equal to the credit allowable for
  155  the taxable year under s. 220.185.
  156         11. The amount taken as a credit for the taxable year under
  157  s. 220.187.
  158         12. The amount taken as a credit for the taxable year under
  159  s. 220.192.
  160         13. The amount taken as a credit for the taxable year under
  161  s. 220.193.
  162         14. Any amount in excess of $25,000 allowable as a
  163  deduction for federal income tax purposes under s. 179 of the
  164  Internal Revenue Code of 1986, as amended, for the taxable year.
  165         15. Any amount allowable as a deduction for federal income
  166  tax purposes under s. 167 or s. 168 of the Internal Revenue Code
  167  of 1986, as amended, for the taxable year to the extent that
  168  such amount includes bonus depreciation allowable as deduction
  169  under s. 168(k).
  170         16.Any portion of a qualified investment, as defined in s.
  171  288.9913, which is claimed as a deduction by the taxpayer and
  172  taken as a credit against income tax pursuant to s.288.9913.
  173         Section 4. Section 288.991, Florida Statutes, is created to
  174  read:
  175         288.991Short title.—Sections 288.991 through 288.9922 may
  176  be cited as the “New Markets Development Program Act.”
  177         Section 5. Section 288.9912, Florida Statutes, is created
  178  to read:
  179         288.9912New Markets Development Program; purpose.—The New
  180  Markets Development Program is established to encourage capital
  181  investment in rural and urban low-income communities by allowing
  182  taxpayers to earn credits against specified taxes by investing
  183  in qualified community development entities that make qualified
  184  low-income community investments in qualified active low-income
  185  community businesses to create and retain jobs.
  186         Section 6. Section 288.9913, Florida Statutes, is created
  187  to read:
  188         288.9913Definitions.—As used in sections 288.991 through
  189  288.9922, the term:
  190         (1)“Credit allowance date” means:
  191         (a)The date on which a qualified investment is made; and
  192         (b)Each of the six anniversaries of that date.
  193         (2)“Department” means the Department of Revenue.
  194         (3)“Long-term debt security” means a debt instrument
  195  issued by a qualified community development entity at par value
  196  or a premium which has a maturity date of at least 7 years
  197  following the date of its issuance, with no acceleration of
  198  repayment, amortization, or prepayment features prior to its
  199  original maturity date, except in instances of default.
  200         (4)“Low-income community” means any population census
  201  tract within the State of Florida where:
  202         1.The poverty rate of such tract is at least 20 percent;
  203  or
  204         2.In the case of a tract that is:
  205         a.Not located within a metropolitan area, the median
  206  family income for such tract does not exceed 80 percent of the
  207  statewide median family income; or
  208         b.Located within a metropolitan area, the median family
  209  income for such a tract does not exceed 80 percent of the
  210  greater of the statewide median family income or the
  211  metropolitan area median income.
  212         (5)“Office” means the Office of Tourism, Trade, and
  213  Economic Development.
  214         (6)“Purchase price” means the amount of cash paid to a
  215  qualified community development entity in exchange for a
  216  qualified investment.
  217         (7)“Qualified active low-income community business” means
  218  a corporation, including a nonprofit corporation, or partnership
  219  that:
  220         (a)1.Derives at least 50 percent of its total gross income
  221  from the active conduct of business within any low-income
  222  community for any taxable year;
  223         2.Uses a substantial portion of its tangible property,
  224  whether owned or leased, within any low-income community for any
  225  taxable year;
  226         3.Performs a substantial portion of its services through
  227  its employees in a low-income community for any taxable year;
  228         4.Attributes less than 5 percent of the average of the
  229  aggregate unadjusted bases of the property of the entity to
  230  collectibles, as defined in 26 U.S.C. s. 408(m)(2), other than
  231  collectibles that are held primarily for sale to customers in
  232  the ordinary course of the business for any taxable year; and
  233         5.Attributes less than 5 percent of the average of the
  234  aggregate unadjusted bases of the property of the entity to
  235  nonqualified financial property, as defined in 26 U.S.C. s.
  236  1397C(e), for any taxable year.
  237         (b)Is reasonably expected by a qualified community
  238  development entity at the time of an investment to continue to
  239  satisfy the requirements of paragraphs (a), (b), (c), and (d)
  240  for the duration of the investment.
  241         (c)Satisfies the requirements of paragraph (a) and
  242  paragraph (b), but does not:
  243         1.Derive or project to derive 15 percent or more of its
  244  annual revenue from the rental or sale of real estate;
  245         2.Engage predominantly in the development or holding of
  246  intangibles for sale or license;
  247         3.Operate a private or commercial golf course, country
  248  club, massage parlor, hot tub facility, suntan facility,
  249  racetrack, gambling facility, or a store, the principal business
  250  of which is the sale of alcoholic beverages for consumption off
  251  premises; or
  252         4.Engage principally in farming and owns or leases assets
  253  the sum of the aggregate unadjusted bases or the fair market
  254  value of which exceeds $500,000.
  255         (d) Will create or retain jobs that pay an average wage of
  256  at least 115 percent of the federal poverty guideline for a
  257  family of four.
  258         (8)“Qualified community development entity” means an
  259  entity that:
  260         (a)Is certified by the United States Department of the
  261  Treasury as a qualified community development entity under 26
  262  U.S.C. s. 45D; and
  263         (b)Has entered into, or is controlled by an entity that
  264  has entered into, an allocation agreement with the Community
  265  Development Financial Institutions Fund of the United States
  266  Department of the Treasury with respect to tax credits under 26
  267  U.S.C. 45D and is authorized to serve businesses in this state
  268  under the agreement.
  269         (9)“Qualified investment” means an equity investment in,
  270  or a long-term debt security issued by, a qualified community
  271  development entity that:
  272         (a)Is issued solely in exchange for cash; and
  273         (b)Is designated by the qualified community development
  274  entity as a qualified investment under this paragraph and is
  275  approved by the office as a qualified investment.
  276         (10)“Qualified low-income community investment” means a
  277  capital or equity investment in, or loan to, any qualified
  278  active low-income community business.
  279         Section 7. Section 288.9914, Florida Statutes, is created
  280  to read:
  281         288.9914Certification of qualified investments; investment
  282  issuance reporting.—
  283         (1)ELIGIBLE INDUSTRIES.—
  284         (a)The office, in consultation with Enterprise Florida,
  285  Inc., shall designate industries using the North American
  286  Industry Classification System which are eligible to receive
  287  low-income community investments. The designated industries must
  288  be those industries that have the greatest potential to create
  289  strong positive impacts on or benefits to the state, regional,
  290  and local economies.
  291         (b)A qualified community development entity may not make a
  292  qualified low-income community investment in a business unless
  293  the principal activities of the business are within an eligible
  294  industry. The office may waive this limitation if the office
  295  determines that the investment will have a positive impact on a
  296  community.
  297         (2)APPLICATION.—A qualified community development entity
  298  must submit an application to the office to approve a proposed
  299  investment as a qualified investment. The application must
  300  include:
  301         (a)The name, address, and tax identification number of the
  302  qualified community development entity.
  303         (b)Proof of certification as a qualified community
  304  development entity under 26 U.S.C. s. 45D.
  305         (c)A copy of an allocation agreement executed by the
  306  entity, or its controlling entity, and the Community Development
  307  Financial Institutions Fund, which authorizes the entity to
  308  serve businesses in this state.
  309         (d)A verified statement by the chief executive officer of
  310  the entity that the allocation agreement remains in effect.
  311         (e)A description of the proposed amount, structure, and
  312  purchaser of an equity investment or long-term debt security.
  313         (f)The name and tax identification number of any person
  314  authorized to claim a tax credit earned as a result of the
  315  purchase of the proposed qualified investment.
  316         (g)A detailed explanation of the proposed use of the
  317  proceeds from a proposed qualified investment.
  318         (h)A nonrefundable application fee of $1,000, payable to
  319  the office.
  320         (i)A statement that the entity will invest only in the
  321  industries designated by the office.
  322         (j)The entity’s plans for the development of relationships
  323  with community-based organizations, local community development
  324  offices and organizations, and economic development
  325  organizations. The entity must also explain steps it has taken
  326  to implement its plans to develop these relationships.
  327         (k)A statement that the entity will not invest in a
  328  qualified active low-income community business unless the
  329  business will create or retain jobs that pay an average wage of
  330  at least 115 percent of the federal poverty guideline for a
  331  family of four.
  332         (3)REVIEW.—
  333         (a)The office shall review applications to approve an
  334  investment as a qualified investment in the order received. The
  335  office shall approve or deny an application within 30 days after
  336  receipt.
  337         (b)If the office intends to deny the application, the
  338  office shall inform the applicant of the basis of the proposed
  339  denial. The applicant shall have 15 days after it receives the
  340  notice of the intent to deny the application to submit a revised
  341  application to the office. The office shall issue a final order
  342  approving or denying the revised application within 30 days
  343  after receipt.
  344         (c)The office may not approve a cumulative amount of
  345  qualified investments that may result in the claim of more than
  346  $97.5 million in tax credits during the existence of the program
  347  or more than $20 million in tax credits in a single state fiscal
  348  year. However, the potential for a taxpayer to carry forward an
  349  unused tax credit may not be considered in calculating the
  350  annual limit.
  351         (4)APPROVAL.—
  352         (a)The office shall provide a copy of the final order
  353  approving an investment as a qualified investment to the
  354  qualified community development entity and to the department.
  355  The notice shall include the identity of the taxpayers who are
  356  eligible to claim the tax credits and the amount that may be
  357  claimed by each taxpayer.
  358         (b)The office shall approve an application for part of the
  359  amount of the proposed investment if the amount of tax credits
  360  available are insufficient.
  361         (c)If more than one application is found to comply with
  362  subsection (3) on the same day and the amount of tax credits
  363  available are insufficient for all of the applications, the tax
  364  credits available to each applicant shall be in proportion to
  365  the proposed purchase price to the total purchase price of all
  366  of the proposed investments.
  367         (5)DURATION OF APPROVAL.—The qualified community
  368  development entity must issue the qualified investment in
  369  exchange for cash within 60 days after it receives the order
  370  approving an investment as a qualified investment, otherwise the
  371  order is void.
  372         (6)REPORT OF ISSUANCE OF A QUALIFIED INVESTMENT.—The
  373  qualified community development entity must provide the office
  374  with evidence of the receipt of the cash in exchange for the
  375  qualified investment within 30 business days after receipt.
  376         Section 8. Section 288.9915, Florida Statutes, is created
  377  to read:
  378         288.9915Use of proceeds from qualified investments;
  379  recordkeeping.—
  380         (1)A qualified community development entity may not make
  381  cash interest payments on a long-term debt security that is a
  382  qualified investment in excess of the entity’s operating income
  383  for 6 years following the issuance of the security.
  384         (2)A qualified community development entity shall keep
  385  detailed records showing the use of proceeds from qualified
  386  investments to fund qualified low-income community investments.
  387         (3)A qualified active low-income community business,
  388  including its affiliates, may not receive more than $10 million
  389  in qualified low-income community investments under the New
  390  Markets Development Program Act.
  391         Section 9. Section 288.9916, Florida Statutes, is created
  392  to read:
  393         288.9916New markets tax credit.—
  394         (1)A person or entity that makes a qualified investment
  395  earns a vested tax credit pursuant to the New Markets
  396  Development Program Act against taxes under s. 220.11 or s.
  397  624.509 equal to 39 percent of the purchase price of the
  398  qualified investment. The holder of a qualified investment may
  399  claim the tax credit as follows:
  400         (a)The holder may apply 7 percent of the purchase price
  401  against its tax liability in the tax year containing the third
  402  credit allowance date.
  403         (b)The holder may apply 8 percent of the purchase price
  404  against its tax liability in the tax years containing the fourth
  405  through seventh credit allowance dates.
  406         (c)A taxpayer may not claim a tax credit in excess of the
  407  taxpayer’s tax liability. If the credit granted pursuant to this
  408  section is not fully used in any one year because of
  409  insufficient tax liability on the part of the taxpayer, the
  410  unused amount may be carried forward for a period not to exceed
  411  5 years. The carryover credit may be used in a subsequent year
  412  when the tax imposed for such year exceeds the credit for such
  413  year, after applying the other credits and unused credit
  414  carryovers in the order provided in s. 220.02(8). Carryover
  415  credit amounts shall be treated as unused credits for purposes
  416  of the transfer of unused credits pursuant to paragraph (2)(b).
  417         (d)An insurance company that is subject to the insurance
  418  premium tax under s. 624.509 must apply the tax credit against
  419  the insurance premium tax. An insurer that claims a credit
  420  against premium-tax liability earned by making a qualified
  421  investment under this section need not pay any additional
  422  retaliatory tax levied under s. 642.5091, as a result of
  423  claiming the tax credit. If the credit granted pursuant to this
  424  section is not fully used in any one year because of
  425  insufficient tax liability on the part of the taxpayer, the
  426  unused amount may be carried forward for a period not to exceed
  427  5 years. The carryover credit may be used in a subsequent year
  428  when the tax imposed for such year exceeds the credit for such
  429  year, after applying the other credits and unused credit
  430  carryovers in the order provided in s. 220.02(8). Carryover
  431  credit amounts shall be treated as unused credits for purposes
  432  of the transfer of unused credits pursuant to section
  433  288.9916(2)(b).
  434         (2)A tax credit earned under this section may not be sold
  435  or transferred, except as provided in this subsection.
  436         (a)A partner, member, or shareholder of a partnership,
  437  limited liability company, S-corporation, or other “pass
  438  through” entity may claim the tax credit pursuant to an
  439  agreement among the partners, members, or shareholders. Any
  440  change in the allocation of a tax credit under the agreement
  441  must be reported to the office and to the department.
  442         (b)Eligibility to claim a tax credit transfers to
  443  subsequent purchasers of a qualified investment. Such transfers
  444  must be reported to the office and to the department along with
  445  the identity, tax identification number, and tax credit amount
  446  allocated to a taxpayer pursuant to paragraph (a). The notice of
  447  transfer also must state whether unused tax credits are being
  448  transferred and the amount of unused tax credits being
  449  transferred.
  450         Section 10. Section 288.9917, Florida Statutes, is created
  451  to read:
  452         288.9917Community development entity reporting after a
  453  credit allowance date; certification of tax credit amount.—
  454         (1)A qualified community development entity that has
  455  issued a qualified investment shall submit the following to the
  456  office within 30 days after each credit allowance date:
  457         (a)A list of all qualified active low-income community
  458  businesses in which a qualified low-income community investment
  459  was made since the last credit allowance date. The list shall
  460  also describe the type and amount of investment in each business
  461  and the address of the principal location of each business. The
  462  list must be verified by the chief executive officer of the
  463  community development entity.
  464         (b)Bank records, wire transfer records, or similar
  465  documents that provide evidence of the qualified low-income
  466  community investments made since the last credit allowance date.
  467         (c)A verified statement by the chief financial or
  468  accounting officer of the community development entity that no
  469  redemption or principal repayment was made with respect to the
  470  qualified investment since the previous credit allowance date.
  471         (d)Information relating to the recapture of the federal
  472  new markets tax credit since the last credit allowance date.
  473         (2)The office shall certify in writing to the qualified
  474  community development entity and to the department the amount of
  475  the tax credit authorized for each taxpayer eligible to claim
  476  the tax credit in the tax year containing the last credit
  477  allowance date.
  478         Section 11. Section 288.9918, Florida Statutes, is created
  479  to read:
  480         288.9918Annual reporting by a community development
  481  entity.—A community development entity that has issued a
  482  qualified investment shall submit an annual report to the office
  483  by April 30 after the end of each year which includes a credit
  484  allowance date. The report shall include:
  485         (1)The entity’s annual financial statements for the
  486  preceding tax year, audited by an independent certified public
  487  accountant.
  488         (2)The identity of the types of industries, identified by
  489  the North American Industry Classification System Code, in which
  490  qualified low-income community investments were made.
  491         (3)The names of the counties in which the qualified active
  492  low-income businesses are located which received qualified low
  493  income community investments.
  494         (4)The number of jobs created and retained by qualified
  495  active low-income community businesses receiving qualified low
  496  income community investments, including a verification that the
  497  average wages paid meet or exceed 115 percent of the federal
  498  poverty guideline for a family of four.
  499         (5)A description of the relationships that the entity has
  500  established with community-based organizations, local community
  501  development offices and organizations, and a summary of the
  502  outcomes resulting from those relationships.
  503         (6)Other information and documentation required by the
  504  office to verify continued certification as a qualified
  505  community development entity under 26 U.S.C. 45D.
  506         Section 12. Section 288.9919, Florida Statutes, is created
  507  to read:
  508         288.9919Audits and examinations; penalties.—
  509         (1)AUDITS.—A qualified community development entity that
  510  issues an investment approved by the office as a qualified
  511  investment shall be deemed a recipient of state financial
  512  assistance under s. 215.97, the Florida Single Audit Act.
  513  However, an entity that makes a qualified investment or receives
  514  a qualified low-income community investment is not a
  515  subrecipient for the purposes of s. 215.97.
  516         (2)EXAMINATIONS.—The office may conduct examinations to
  517  verify compliance with the New Markets Development Program Act.
  518         Section 13. Section 288.9920, Florida Statutes, is created
  519  to read:
  520         288.9920Recapture and penalties.—
  521         (1)Notwithstanding s. 95.091, the office shall direct the
  522  department, at any time before December 31, 2022, to recapture
  523  all or a portion of a tax credit authorized pursuant to the New
  524  Markets Development Program Act if one or more of the following
  525  occurs:
  526         (a)The Federal Government recaptures any portion of the
  527  federal new markets tax credit. The recapture by the department
  528  shall equal the recapture by the Federal Government.
  529         (b)The qualified community development entity redeems or
  530  makes a principal repayment on a qualified investment before the
  531  final allowance date. The recapture by the department shall
  532  equal the redemption or principal repayment divided by the
  533  purchase price and multiplied by the tax credit authorized to a
  534  taxpayer for the qualified investment.
  535         (c)1.The qualified community development entity fails to
  536  invest at least 85 percent of the purchase price in qualified
  537  low-income community investments within 12 months after the
  538  issuance of a qualified investment; or
  539         2.The qualified community development entity fails to
  540  maintain 85 percent of the purchase price in qualified low
  541  income community investments until the last credit allowance
  542  date for a qualified investment.
  543  
  544  For the purposes of this paragraph, an investment by a qualified
  545  community development entity includes principal recovered from
  546  an investment for 12 months after its recovery or principal
  547  recovered after the sixth credit allowance date. Principal held
  548  for longer than 12 months or recovered before the sixth credit
  549  allowance date is not an investment unless it is reinvested in a
  550  qualified low-income community investment.
  551         (d)The qualified community development entity fails to
  552  provide the office with information, reports, or documentation
  553  required by the New Markets Development Program Act.
  554         (e)The office determines that a taxpayer received tax
  555  credits to which the taxpayer was not entitled.
  556         (2)The office shall provide notice to the qualified
  557  community development entity and the department of a proposed
  558  recapture of a tax credit. The entity shall have 90 days
  559  following the receipt of the notice to cure a deficiency
  560  identified in the notice and avoid recapture. The department
  561  shall issue a final order of recapture if the entity fails to
  562  cure a deficiency within the 90-day period. The final order of
  563  recapture shall be provided to the entity, the department, and a
  564  taxpayer otherwise authorized to claim the tax credit.
  565  Recaptured funds shall be deposited into the General Revenue
  566  Fund.
  567         (3)An entity that submits fraudulent information to the
  568  office is liable for the costs associated with the investigation
  569  and prosecution of the fraudulent claim plus a penalty in an
  570  amount equal to double the tax credits claimed by investors in
  571  the entity’s qualified investments. This penalty is in addition
  572  to any other penalty that may be imposed by law.
  573         Section 14. Section 288.9921, Florida Statutes, is created
  574  to read:
  575         288.9921Rulemaking.—The office and the department may
  576  adopt rules pursuant to ss. 120.536(1) and 120.54 to administer
  577  this section.
  578         Section 15. Section 288.9922, Florida Statutes, is created
  579  to read:
  580         288.9922Expiration of the New Markets Development Program
  581  Act.—Sections 288.991 through 288.9922 expire on December 31,
  582  2022.
  583         Section 16. This act shall take effect July 1, 2009.