1 | A bill to be entitled |
2 | An act relating to enterprise zones; creating s. 290.201, |
3 | F.S.; providing a short title; creating s. 290.203, F.S.; |
4 | defining terms for the Urban Job Creation Investment Act; |
5 | creating s. 290.205, F.S.; creating the Florida Urban |
6 | Investment Job Creation Authority; providing for the |
7 | authority's membership and duties; requiring the authority |
8 | to submit annual reports and a fiscal impact study of each |
9 | enterprise program zone to specified officers and |
10 | agencies; creating s. 290.207, F.S.; creating a zone |
11 | development corporation for each enterprise program zone; |
12 | providing for the corporations' membership, officers, and |
13 | duties; requiring that certificates of appointment be |
14 | filed with the respective county or municipal clerk; |
15 | authorizing reimbursement of travel expenses for board |
16 | members; providing for employees and legal services of |
17 | zone development corporations; requiring zone development |
18 | corporations to submit annual reports to specified |
19 | officers and agencies; creating s. 290.209, F.S.; |
20 | providing for the designation of enterprise program zones; |
21 | authorizing the authority to periodically amend the |
22 | boundary of an enterprise program zone; requiring the |
23 | authority to consider certain factors when designating or |
24 | amending zone boundaries; creating s. 290.211, F.S.; |
25 | providing qualifications for businesses to receive state |
26 | enterprise program zone incentives; creating s. 290.213, |
27 | F.S.; establishing enterprise program zone assistance |
28 | funds; authorizing certain state incentives for the |
29 | projects of qualified businesses; providing for project |
30 | applications and the approval of projects; authorizing |
31 | zone development corporations to use loan repayments and |
32 | collected interest for specified purposes; providing that |
33 | unexpended appropriations do not revert to the funds from |
34 | which they were appropriated at the end of fiscal year; |
35 | authorizing administrative fees for zone development |
36 | corporations; creating s. 290.215, F.S.; authorizing |
37 | certain tax credits, exemptions from unemployment |
38 | contributions, and other state incentives for qualified |
39 | businesses; limiting the amount of available incentives in |
40 | any fiscal year; providing for the carryforward of unused |
41 | incentives; providing for the allocation of certain |
42 | appropriations among zone development corporations; |
43 | creating s. 290.217, F.S.; requiring the Office of Program |
44 | Policy Analysis and Government Accountability to submit a |
45 | report to the Governor and Legislature; creating s. |
46 | 290.119, F.S.; providing for expiration of the Urban Job |
47 | Creation Investment Act; abolishing designated enterprise |
48 | program zones; creating ss. 212.0965 and 220.1815, F.S.; |
49 | authorizing certain tax credits against the sales tax and |
50 | corporate income tax for qualified businesses located in |
51 | enterprise program zones; providing for application and |
52 | certification of tax credits; providing for carryforward |
53 | of unused corporate income tax credits; providing for |
54 | expiration of tax credits; amending s. 220.02, F.S.; |
55 | revising legislative intent for the order of applying |
56 | corporate income tax credits; amending s. 443.1217, F.S.; |
57 | exempting wages paid by qualified businesses to certain |
58 | employees from unemployment contributions; amending s. |
59 | 290.016, F.S.; revising the effective date of the repeal |
60 | of the Florida Enterprise Zone Act; reenacting ss. |
61 | 166.231(8)(c), 193.077(4), 193.085(5)(b), 195.073(4)(b), |
62 | 195.099(1)(b), 196.012(19), 205.022(4), 205.054(6), |
63 | 212.02(6), 212.08(5)(g), 212.096(12), 220.02(6)(c) and |
64 | (7)(c), 220.03(1), 220.13(1)(a), 220.181(9), and |
65 | 220.182(14), F.S., relating to an exemption from the |
66 | public service tax, certain duties of property appraisers |
67 | and the Department of Revenue with respect to property |
68 | acquired for a new business or a business expansion or |
69 | restoration, definition of the term "enterprise zone" for |
70 | purposes of property tax exemptions for homesteads, local |
71 | business taxes, and the sales and use tax, exemptions from |
72 | local business taxes and the sales and use tax, and |
73 | legislative intent, definitions, and tax credits for the |
74 | corporate income tax, to incorporate the amendment to s. |
75 | 290.016, F.S., in references thereto; providing an |
76 | effective date. |
77 |
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78 | Be It Enacted by the Legislature of the State of Florida: |
79 |
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80 | Section 1. Section 290.201, Florida Statutes, is created |
81 | to read: |
82 | 290.201 Short title.-Sections 290.201-290.219 may be cited |
83 | as the "Urban Job Creation Investment Act." |
84 | Section 2. Section 290.203, Florida Statutes, is created |
85 | to read: |
86 | 290.203 Definitions.-As used in ss. 290.201-290.219, the |
87 | term: |
88 | (1) "Authority" means the Florida Urban Investment Job |
89 | Creation Authority created under s. 290.205. |
90 | (2) "Authorized local economic development agency" means a |
91 | public or private entity, including an entity defined in s. |
92 | 288.075, authorized by a county or municipality to promote the |
93 | general business or industrial interests of the county or |
94 | municipality. |
95 | (3) "Business" has the same meaning as provided in s. |
96 | 212.02. |
97 | (4) "Emergency" means occurrence of widespread or severe |
98 | damage, injury, or loss of life or property proclaimed under s. |
99 | 14.022 or declared under s. 252.36. |
100 | (5) "Enterprise program zone" means an urban |
101 | revitalization zone designated under s. 290.209 which is located |
102 | in a legacy enterprise zone or federally designated empowerment |
103 | zone. |
104 | (6) "Enterprise program zone assistance fund" means a |
105 | program that provides loans, loan guarantees, loan-loss |
106 | reserves, or investments for projects of qualified businesses as |
107 | provided in s. 290.213. |
108 | (7) "Expansion of an existing business" means the |
109 | expansion of an existing business located in an enterprise |
110 | program zone by or through additions to real and personal |
111 | property, resulting in a net increase in employment of not less |
112 | than 10 percent at such business. |
113 | (8) "Federally designated empowerment zone" means a |
114 | geographic area of the state designated by the Federal |
115 | Government as an empowerment zone under the Federal Empowerment |
116 | Zone Program as defined in s. 290.0491. |
117 | (9) "Florida Enterprise Zone Act" has the same meaning as |
118 | provided in s. 290.001. |
119 | (10) "Legacy enterprise zone" means an enterprise zone |
120 | designated under the Florida Enterprise Zone Act. |
121 | (11) "New business" means a business that applies for |
122 | state incentives under ss. 290.201-290.219 before beginning |
123 | operations in an enterprise program zone and that is a legal |
124 | entity separate from any other commercial or industrial |
125 | operations owned by the same business. |
126 | (12) "Project" means the creation of a new business, or |
127 | the expansion or rebuilding of an existing business, located in |
128 | an enterprise program zone. |
129 | (13) "Qualified business" means a business that meets the |
130 | qualifications under s. 290.211 to receive state incentives |
131 | under ss. 290.213 and 290.215. |
132 | (14) "Rebuilding of an existing business" means |
133 | replacement or restoration of real or tangible property |
134 | destroyed or damaged in an emergency in an enterprise program |
135 | zone by a business located in the zone. |
136 | (15) "Zone development corporation" means a corporation |
137 | not for profit created under s. 290.207 to administer an |
138 | enterprise program zone. |
139 | Section 3. Section 290.205, Florida Statutes, is created |
140 | to read: |
141 | 290.205 Florida Urban Investment Job Creation Authority; |
142 | creation; membership and duties.- |
143 | (1) There is created within the Office of Tourism, Trade, |
144 | and Economic Development the Florida Urban Investment Job |
145 | Creation Authority. The authority shall be composed of the |
146 | following 11 members: |
147 | (a) Five public-sector members, who shall be appointed by |
148 | the Governor, at least three of whom must be employed or reside |
149 | in an enterprise program zone or, for initial members, in a |
150 | legacy enterprise zone or federally designated empowerment zone. |
151 | The Governor may not appoint more than three public-sector |
152 | members of the same political party affiliation. Public-sector |
153 | members shall serve for terms of 4 years, except that the |
154 | Governor, to establish staggered terms, may appoint members to |
155 | initial terms of fewer than 4 years. The Governor shall fill the |
156 | vacancy of a public-sector member for the unexpired portion of |
157 | the member's term in the same manner as the original |
158 | appointment. |
159 | (b) One business owner, who shall be appointed by the |
160 | Governor, whose principal place of business is located in an |
161 | enterprise program zone or, for the initial member, in a legacy |
162 | enterprise zone or federally designated empowerment zone. |
163 | (c) The Chief Financial Officer of the state or his or her |
164 | designee. |
165 | (d) The director of the Office of Tourism, Trade, and |
166 | Economic Development or his or her designee. |
167 | (e) The president of Enterprise Florida, Inc., or his or |
168 | her designee. |
169 | (f) One member appointed by the President of the Senate |
170 | and one member appointed by the Speaker of the House of |
171 | Representatives, both of whom must have training and experience |
172 | in local government, finance, economic development, or |
173 | redevelopment or participate in volunteer, civic, or community |
174 | organizations. |
175 | (2) Each member shall hold office until his or her |
176 | successor is appointed and qualified, unless the member ceases |
177 | to be qualified or is removed from office. |
178 | (3) The Office of Tourism, Trade, and Economic Development |
179 | shall provide administrative and staff support services for the |
180 | authority. |
181 | (4) The authority shall: |
182 | (a) Designate enterprise program zones in accordance with |
183 | s. 290.209. |
184 | (b) Approve or deny applications, based upon the |
185 | recommendations of the zone development corporations, for the |
186 | qualification of businesses to receive state incentives under |
187 | ss. 290.213 and 290.215. |
188 | (c) Certify annually to the Chief Financial Officer the |
189 | amounts to be paid from the enterprise program zone assistance |
190 | funds to support proposed projects under s. 290.213. |
191 | (d) By February 15 of each year, submit an annual report |
192 | to the Governor, the President of the Senate, the Speaker of the |
193 | House of Representatives, and the Office of Tourism, Trade, and |
194 | Economic Development on the authority's activities for the |
195 | previous fiscal year. The report must include a complete |
196 | financial statement setting forth the authority's assets, |
197 | liabilities, income, and operating expenses as of the end of the |
198 | fiscal year. |
199 | (5) One year after the designation of the enterprise |
200 | program zones under s. 290.209, the authority shall prepare a |
201 | fiscal impact study of each enterprise program zone. The report |
202 | shall include, but is not limited to, an analysis of the effects |
203 | of each enterprise program zone on the economy of the county or |
204 | municipality in which the enterprise program zone is located, |
205 | and any recommendations for legislation to improve the |
206 | effectiveness of the enterprise program zones. By July 1, 2014, |
207 | the authority shall submit a copy of the report to the Governor, |
208 | the President of the Senate, the Speaker of the House of |
209 | Representatives, and the Chief Financial Officer of the state. |
210 | After submitting the initial fiscal impact study, the authority |
211 | shall prepare such report annually. The authority may use a |
212 | portion of any funds provided for projects of qualified |
213 | businesses by the enterprise program zone assistance funds to |
214 | pay the costs of each study. |
215 | Section 4. Section 290.207, Florida Statutes, is created |
216 | to read: |
217 | 290.207 Zone development corporations; creation; board of |
218 | directors; membership.- |
219 | (1) A zone development corporation shall be created within |
220 | each legacy enterprise zone and federally designated empowerment |
221 | zone in the state. Each zone development corporation shall be |
222 | organized as a corporation not for profit. |
223 | (2) The board of directors of each zone development |
224 | corporation shall be composed of the following members: |
225 | (a) One business owner, who shall be appointed by the |
226 | Governor, whose principal place of business is located in the |
227 | enterprise program zone or, for the initial member, in the |
228 | legacy enterprise zone or federally designated empowerment zone. |
229 | (b) Two business or community leaders who reside in, or |
230 | whose principal place of business is located in, the enterprise |
231 | program zone or, for initial members, in the legacy enterprise |
232 | zone or federally designated empowerment zone, one of whom shall |
233 | be appointed by the President of the Senate and one of whom |
234 | shall be appointed by the Speaker of the House of |
235 | Representatives. |
236 | (c) For each county all or part of whose territory lies |
237 | within the enterprise program zone or, for initial members, |
238 | within the legacy enterprise zone or federally designated |
239 | empowerment zone, one member appointed by the board of county |
240 | commissioners of the county. |
241 | (d) For each municipality all or part of whose territory |
242 | lies within the enterprise program zone or, for initial members, |
243 | within the legacy enterprise zone or federally designated |
244 | empowerment zone, one member appointed by the governing board of |
245 | the municipality. |
246 | (3)(a) Board members shall serve terms of 4 years, except |
247 | that members appointed by the President of the Senate and the |
248 | Speaker of the House of Representatives shall serve terms of 2 |
249 | years. A vacancy of the unexpired portion of a member's term |
250 | shall be filled in the same manner as the original appointment. |
251 | Each board member shall hold office until his or her successor |
252 | is appointed and qualified, unless the member ceases to be |
253 | qualified or is removed from office. |
254 | (b) Upon the appointment or reappointment of a board |
255 | member, the corporation must file a certificate of appointment |
256 | or reappointment with the clerk of the respective county or |
257 | municipality. |
258 | (c) Board members shall serve without compensation but are |
259 | entitled to per diem and travel expenses as provided in s. |
260 | 112.061. |
261 | (4)(a) Each zone development corporation shall select a |
262 | chair and vice chair from among its members. |
263 | (b) Subject to funding provided by a county, municipality, |
264 | or authorized local economic development agency, a zone |
265 | development corporation may employ or designate an executive |
266 | director, technical experts, and other agents and employees, |
267 | permanent and temporary, and determine their qualifications, |
268 | duties, and compensation. For legal services, a zone development |
269 | corporation may employ private counsel or use attorneys of the |
270 | county, municipality, or authorized local economic development |
271 | agency at the discretion of the county, municipality, or |
272 | authorized local economic development agency. |
273 | (5) Each zone development corporation shall: |
274 | (a) Adopt and administer a zone development plan that sets |
275 | forth the boundary of the enterprise program zone designated |
276 | under s. 290.209, the development goals of the enterprise |
277 | program zone, and direction for qualified businesses located in |
278 | the enterprise program zone. |
279 | (b) Conduct meetings of the board of directors at least |
280 | quarterly to evaluate applications for qualified businesses to |
281 | receive tax credits and other state incentives under s. 290.215. |
282 | (c) Administer an enterprise program zone assistance fund |
283 | to provide loans, loan guarantees, loan-loss reserves, and |
284 | investments for projects of qualified businesses located in the |
285 | enterprise program zone under s. 290.213. |
286 | (d) Conduct an open public forum at least quarterly at |
287 | which urban development projects and the use of enterprise |
288 | program zone assistance funds may be proposed and discussed. |
289 | (6)(a) By March 1 of each year, each zone development |
290 | corporation shall submit to the county or municipal clerk a |
291 | report of its activities for the previous fiscal year. The |
292 | report must include a complete financial statement setting forth |
293 | the corporation's assets, liabilities, income, and operating |
294 | expenses as of the end of the fiscal year. When filing the |
295 | report, each zone development corporation shall publish a notice |
296 | in a newspaper of general circulation in the enterprise program |
297 | zone that such report was filed with the respective county or |
298 | municipal clerk and is available for inspection during business |
299 | hours at the offices of the zone development corporation. |
300 | (b) By February 15 of each year, each zone development |
301 | corporation shall submit a report of its activities to the |
302 | Governor, the President of the Senate, the Speaker of the House |
303 | of Representatives, and the authority. |
304 | (c) Each zone development corporation shall annually |
305 | submit a report to the authority accounting for the expenditure |
306 | of enterprise program zone assistance funds. |
307 | Section 5. Section 290.209, Florida Statutes, is created |
308 | to read: |
309 | 290.209 Designation of enterprise program zones.- |
310 | (1) The authority shall, in each legacy enterprise zone |
311 | and federally designated empowerment zone in the state, |
312 | establish an enterprise program zone and designate the |
313 | geographic boundary of the zone. |
314 | (2) By October 1, 2011, each zone development corporation |
315 | shall submit to the authority the following: |
316 | (a) An economic report prepared by the corporation for the |
317 | respective enterprise program zone. The report must include |
318 | current census data and other economic indicators that identify |
319 | the most economically distressed areas in the legacy enterprise |
320 | zone or federally designated empowerment zone. |
321 | (b) The corporation's written recommendations for the |
322 | initial boundary of the enterprise program zone based upon |
323 | findings of the economic report. |
324 | (3) Before establishing the initial boundary of an |
325 | enterprise program zone, the authority must consider: |
326 | (a) The zone development corporation's economic report and |
327 | recommendations for the initial boundary. |
328 | (b) The historical boundary of the legacy enterprise zone |
329 | or federally designated empowerment zone. |
330 | (4) A zone development corporation may periodically apply |
331 | to the authority for amendment of the enterprise program zone's |
332 | boundary. The application must be based on a revised economic |
333 | report and recommendations submitted to the authority in the |
334 | same manner as provided under paragraphs (2)(a) and (b) for the |
335 | initial boundary. Before amending the boundary, the authority |
336 | must consider the factors described in paragraphs (3)(a) and (b) |
337 | and the historical boundary of the enterprise program zone. |
338 | (5) The total area of an enterprise program zone may not |
339 | exceed 25 percent of the total area of the legacy enterprise |
340 | zone or federally designated empowerment zone. |
341 | Section 6. Section 290.211, Florida Statutes, is created |
342 | to read: |
343 | 290.211 Qualified businesses.- |
344 | (1) Effective July 1, 2012, a business is qualified to |
345 | receive the state incentives provided under s. 290.215 if: |
346 | (a) The business is authorized to transact business in the |
347 | state. |
348 | (b) The business is actively engaged in the conduct of a |
349 | trade or business located in an enterprise program zone |
350 | designated under s. 290.209. |
351 | (c) The business is not an adult entertainment |
352 | establishment as defined in s. 847.001. |
353 | (d) At least 25 percent of the business' full-time |
354 | employees: |
355 | 1. Reside in the enterprise program zone; |
356 | 2. Reside in the state and were totally unemployed as |
357 | defined in s. 443.036(43)(a) for at least 6 months before |
358 | employment by the business; |
359 | 3. Were recipients of temporary cash assistance under s. |
360 | 414.045 for at least 6 months before employment by the business; |
361 | or |
362 | 4. Are low-income individuals as defined in the federal |
363 | Workforce Investment Act, Pub. L. 105-220, 29 U.S.C. s. 2801. |
364 | (2) A qualified business must maintain its qualifications |
365 | under subsection (1) to continue to receive the state incentives |
366 | provided under s. 290.215. Upon ceasing to meet the |
367 | qualifications, a business may not receive additional |
368 | incentives. |
369 | Section 7. Section 290.213, Florida Statutes, is created |
370 | to read: |
371 | 290.213 Enterprise program zone assistance funds.- |
372 | (1)(a) Effective July 1, 2012, and subject to legislative |
373 | appropriations, each zone development corporation shall |
374 | administer a separate assistance fund to provide loans, loan |
375 | guarantees, loan-loss reserves, and investments for projects of |
376 | qualified businesses located in the corporation's enterprise |
377 | program zone. |
378 | (b) Each zone development corporation shall develop |
379 | criteria for the approval of projects in its enterprise program |
380 | zone relating to comprehensive urban planning, neighborhood |
381 | aesthetics and compatibility, and the maximization of economic |
382 | development and job creation opportunities. |
383 | (2)(a) To receive assistance for a project under this |
384 | section, a qualified business must apply to the zone development |
385 | corporation. The application shall be developed by the authority |
386 | in consultation with the Office of Tourism, Trade, and Economic |
387 | Development. The application must demonstrate whether the |
388 | business is a new business or an expansion or rebuilding of an |
389 | existing business located in the enterprise program zone. |
390 | (b) The zone development corporation shall review and, |
391 | based upon the corporation's criteria, evaluate each submitted |
392 | application and recommend approval or disapproval to the |
393 | authority. |
394 | (c) Upon receipt of an application and recommendation from |
395 | the zone development corporation, the authority shall review, |
396 | evaluate, and determine whether to approve or deny the |
397 | application. The authority shall notify the applicant, the zone |
398 | development corporation, and the Office of Tourism, Trade, and |
399 | Economic Development of each approved application. |
400 | (d) If the authority denies an application, it shall |
401 | notify the applicant and the zone development corporation and |
402 | describe the reasons for denial. The authority has final |
403 | approval authority for projects under this section. |
404 | (3) A zone development corporation shall use any loan |
405 | repayments and collected interest to provide additional |
406 | assistance to qualified businesses for projects under this |
407 | section. |
408 | (4) Unexpended balances of an appropriation provided for |
409 | assistance to qualified businesses under this section shall not |
410 | revert to the fund from which the appropriation was made at the |
411 | end of the fiscal year but shall be retained in the Economic |
412 | Development Trust Fund and be carried forward to provide |
413 | additional assistance to qualified businesses under this section |
414 | during the following fiscal year. |
415 | (5) A zone development corporation may collect an |
416 | administrative fee not exceed 10 percent of the assistance |
417 | provided to qualified businesses under this section. |
418 | Section 8. Section 290.215, Florida Statutes, is created |
419 | to read: |
420 | 290.215 State incentives available for enterprise program |
421 | zones; tax increment financing.- |
422 | (1) Effective July 1, 2012, the following state incentives |
423 | are available for qualified businesses located in an enterprise |
424 | program zone: |
425 | (a) The enterprise program zone sales and use tax credits |
426 | provided under s. 212.0965. |
427 | (b) The enterprise program zone corporate income tax |
428 | credits provided under s. 220.183. |
429 | (c) Loans, loan guarantees, loan-loss reserves, and |
430 | investments provided for projects by enterprise program zone |
431 | assistance funds under s. 290.213. |
432 | (d) A credit against unemployment contributions provided |
433 | under s. 443.1217(2)(h). |
434 | (2) By June 1, 2012, the authority, in consultation with |
435 | the Office of Tourism, Trade, and Economic Development and the |
436 | Department of Revenue, shall determine the tax floor for each |
437 | enterprise program zone designated under s. 290.209. As used in |
438 | this section, the term "tax floor" means the aggregate amount of |
439 | sales and use tax collections from all businesses in an |
440 | enterprise program zone for the 2010-2011 fiscal year. |
441 | (3)(a) By June 1 of each year, the authority, in |
442 | consultation with the Office of Tourism, Trade, and Economic |
443 | Development and the Department of Revenue, shall calculate the |
444 | maximum aggregate amount of state incentives described in |
445 | paragraphs (1)(a)-(c) which are available for each enterprise |
446 | program zone for the following fiscal year. Such maximum amount |
447 | may not exceed the aggregate amount of the sales and use tax |
448 | collections from all businesses in the enterprise program zone |
449 | during the previous fiscal year which exceed the tax floor |
450 | established for the enterprise program zone under subsection |
451 | (2). |
452 | (b) Any portion of the maximum amount of state incentives |
453 | established per fiscal year that is not used by the end of a |
454 | fiscal year shall be carried forward and made available for use |
455 | during the following 2 fiscal years in addition to the amounts |
456 | available for use under paragraph (a) for those fiscal years. |
457 | (4)(a) The authority shall annually allocate legislative |
458 | appropriations among the zone development corporations for the |
459 | enterprise program zone assistance funds provided to projects of |
460 | qualified businesses under s. 290.213. The authority shall |
461 | certify annually to the State Treasurer amounts to be paid from |
462 | the Economic Development Trust Fund to support the approved |
463 | projects. |
464 | (b) The amount available for state incentives in the |
465 | enterprise program zone, including tax credits, loans, loan |
466 | guarantees, loan-loss reserves, and investments authorized in |
467 | paragraphs (1)(a)-(c), may not exceed the maximum aggregate |
468 | amount calculated for these incentives under paragraph (3)(a). |
469 | Section 9. Section 290.217, Florida Statutes, is created |
470 | to read: |
471 | 290.217 Review of enterprise program zones.- |
472 | (1) By January 15, 2021, the Office of Program Policy |
473 | Analysis and Government Accountability shall submit a report to |
474 | the Governor, the President of the Senate, and the Speaker of |
475 | the House of Representatives of its findings and recommendations |
476 | on the Urban Job Creation Investment Act. The report shall |
477 | review and evaluate the effectiveness of each enterprise program |
478 | zone using the annual fiscal reports prepared by the authority |
479 | under s. 290.205(5). The report shall also evaluate whether the |
480 | state incentives provided to businesses in each enterprise |
481 | program zone caused or contributed to: |
482 | (a) New investment and development in the enterprise |
483 | program zone; |
484 | (b) An increased number of jobs created or retained in the |
485 | enterprise program zone; |
486 | (c) The renovation, rehabilitation, restoration, |
487 | improvement, or new construction of businesses or housing in the |
488 | enterprise program zone; or |
489 | (d) The economic viability and profitability of businesses |
490 | and commerce in the enterprise program zone. |
491 | (2) Before the 2021 Regular Session of the Legislature, |
492 | the appropriate committees of the Senate and House of |
493 | Representatives shall consider legislation to implement the |
494 | report's recommendations. |
495 | Section 10. Section 290.219, Florida Statutes, is created |
496 | to read: |
497 | 290.219 Expiration.- |
498 | (1) Sections 290.201-290.219 expire June 30, 2021. |
499 | (2) Effective June 30, 2021, each enterprise program zone |
500 | designated under s. 290.209 is abolished, and a business may not |
501 | claim or receive a state incentive provided under s. 290.213 or |
502 | s. 290.215 after that date. |
503 | Section 11. Section 212.0965, Florida Statutes, is created |
504 | to read: |
505 | 212.0965 Sales, rental, storage, use tax; enterprise |
506 | program zone credit against sales tax.- |
507 | (1) Effective July 1, 2012, there shall be allowed the |
508 | following credits against the tax imposed by this chapter for |
509 | any qualified business as defined in s. 290.203 located in an |
510 | enterprise program zone: |
511 | (a) A credit equal to 50 percent of the business' sales |
512 | and use tax liability imposed under this chapter, except for tax |
513 | liability resulting from the purchase of a new or used motor |
514 | vehicle or mobile home or the sale of obscene material as |
515 | defined in s. 847.0133. |
516 | (b) A credit equal to 50 percent of the business' sales |
517 | and use tax liability from the purchase of tangible personal |
518 | property that has a depreciable life of 3 years of more. |
519 | (2)(a) To be eligible to receive a tax credit provided |
520 | under paragraph (1)(a) or paragraph (1)(b), a qualified business |
521 | must initially apply to the zone development corporation created |
522 | under s. 290.207. |
523 | (b) An original certification is valid for 2 years. In |
524 | lieu of submitting a new application, the original certification |
525 | may be renewed biennially by submitting to the Florida Urban |
526 | Investment Job Creation Authority a statement, certified under |
527 | oath, that there has been no material change in the conditions |
528 | or circumstances entitling the qualified business to the |
529 | original certification. The initial application and the |
530 | certification renewal statement shall be developed by the |
531 | Florida Urban Investment Job Creation Authority in consultation |
532 | with the Office of Tourism, Trade, and Economic Development and |
533 | the department. |
534 | (c) The zone development corporation shall review each |
535 | submitted initial application and determine whether or not the |
536 | application is complete. Once complete, the zone development |
537 | corporation shall evaluate the application and recommend |
538 | approval or disapproval to the Florida Urban Investment Job |
539 | Creation Authority. |
540 | (d) Upon receipt of an initial application and |
541 | recommendation from the zone development corporation, or upon |
542 | receipt of a certification renewal statement, the Florida Urban |
543 | Investment Job Creation Authority shall certify qualified |
544 | businesses that meet the requirements of s. 290.211 and notify |
545 | the applicant, the zone development corporation, the Office of |
546 | Tourism, Trade, and Economic Development, and the department of |
547 | the original certification or certification renewal. |
548 | (e) If the Florida Urban Investment Job Creation Authority |
549 | finds that the applicant does not meet the requirements of s. |
550 | 290.211, it shall notify the applicant and the zone development |
551 | corporation that the application for certification is denied and |
552 | the reasons for denial. The Florida Urban Investment Job |
553 | Creation Authority has final approval authority for |
554 | certification under this section. |
555 | (3) This section expires on the date specified in s. |
556 | 290.219 for the expiration of the Urban Job Creation Investment |
557 | Act. |
558 | Section 12. Section 220.1815, Florida Statutes, is created |
559 | to read: |
560 | 220.1815 Enterprise program zone tax credits.- |
561 | (1) Effective July 1, 2012, there shall be allowed the |
562 | following credits against the tax imposed by this chapter for |
563 | any qualified business as defined in s. 290.203 located in an |
564 | enterprise program zone: |
565 | (a) A credit equal to 8 percent of the business' corporate |
566 | income tax liability imposed under this chapter. |
567 | (b) A credit equal to $1,500 of the business' corporate |
568 | income tax liability for hiring a new full-time employee who |
569 | resides in the enterprise program zone, if such employee |
570 | received temporary cash assistance under s. 414.045, or was |
571 | totally unemployed as defined in s. 443.036(43)(a), for at least |
572 | 90 days before such employment. The tax credit provided under |
573 | this paragraph may be claimed only once per new full-time |
574 | employee for the taxable year during which the business |
575 | initially hires such employee. |
576 | (2)(a) To be eligible to receive a tax credit provided |
577 | under paragraph (1)(a) or paragraph (1)(b), a qualified business |
578 | must initially apply to the zone development corporation created |
579 | under s. 290.207. The application shall be developed by the |
580 | Florida Urban Investment Job Creation Authority in consultation |
581 | with the Office of Tourism, Trade, and Economic Development and |
582 | the department. |
583 | (b) When claiming a tax credit under paragraph (1)(b), the |
584 | application must include a statement, filed under oath with the |
585 | zone development corporation, which includes for each new |
586 | employee for whom the credit is claimed, the employee's name and |
587 | residential address during the taxable year and, if applicable, |
588 | documentation that the employee received temporary cash |
589 | assistance or was totally unemployed for at least 90 days before |
590 | employment by the qualified business. |
591 | (c) The zone development corporation shall review each |
592 | submitted application and determine whether or not the |
593 | application is complete. Once complete, the zone development |
594 | corporation shall evaluate the application and recommend |
595 | approval or disapproval to the Florida Urban Investment Job |
596 | Creation Authority. |
597 | (d) Upon receipt of an application and recommendation from |
598 | the zone development corporation, the Florida Urban Investment |
599 | Job Creation Authority shall certify qualified businesses that |
600 | meet the requirements of s. 290.211 and this section and notify |
601 | the applicant, the zone development corporation, the Office of |
602 | Tourism, Trade, and Economic Development, and the department of |
603 | the certification. |
604 | (e) If the Florida Urban Investment Job Creation Authority |
605 | finds that the applicant does not meet the requirements of s. |
606 | 290.211 or this section, it shall notify the applicant and the |
607 | zone development corporation that the application for |
608 | certification is denied and the reasons for denial. The Florida |
609 | Urban Investment Job Creation Authority has final approval |
610 | authority for certification under this section. |
611 | (3) If a tax credit certified under this section is not |
612 | fully used in any one year, the unused amount may be carried |
613 | forward for a period not to exceed 5 years. The carryover credit |
614 | may be used in a subsequent year when the tax imposed by this |
615 | chapter for such year exceeds the credit for such year after |
616 | applying the other credits and unused credit carryovers in the |
617 | order provided in s. 220.02(8). |
618 | (4) This section expires on the date specified in s. |
619 | 290.219 for the expiration of the Urban Job Creation Investment |
620 | Act. |
621 | Section 13. Subsection (8) of section 220.02, Florida |
622 | Statutes, is amended to read: |
623 | 220.02 Legislative intent.- |
624 | (8) It is the intent of the Legislature that credits |
625 | against either the corporate income tax or the franchise tax be |
626 | applied in the following order: those enumerated in s. 631.828, |
627 | those enumerated in s. 220.191, those enumerated in s. 220.181, |
628 | those enumerated in s. 220.183, those enumerated in s. 220.182, |
629 | those enumerated in s. 220.1895, those enumerated in s. 221.02, |
630 | those enumerated in s. 220.184, those enumerated in s. 220.186, |
631 | those enumerated in s. 220.1845, those enumerated in s. 220.19, |
632 | those enumerated in s. 220.185, those enumerated in s. 220.1875, |
633 | those enumerated in s. 220.192, those enumerated in s. 220.193, |
634 | those enumerated in s. 288.9916, those enumerated in s. |
635 | 220.1899, and those enumerated in s. 220.1896, and those |
636 | enumerated in s. 220.1815. |
637 | Section 14. Paragraph (h) is added to subsection (2) of |
638 | section 443.1217, Florida Statutes, to read: |
639 | 443.1217 Wages.- |
640 | (2) For the purpose of determining an employer's |
641 | contributions, the following wages are exempt from this chapter: |
642 | (h) Beginning July 1, 2012, remuneration paid by a |
643 | qualified business as defined in s. 290.203 to an individual who |
644 | earns less than $4,500 during the calendar quarter. |
645 | Section 15. Section 290.016, Florida Statutes, is amended |
646 | to read: |
647 | 290.016 Repeal.-Sections 290.001-290.014 are repealed June |
648 | 30, 2012 December 31, 2015. |
649 | Section 16. For the purpose of incorporating the amendment |
650 | made by this act to section 290.016, Florida Statutes, in a |
651 | reference thereto, paragraph (c) of subsection (8) of section |
652 | 166.231, Florida Statutes, is reenacted to read: |
653 | 166.231 Municipalities; public service tax.- |
654 | (8) |
655 | (c) This subsection expires on the date specified in s. |
656 | 290.016 for the expiration of the Florida Enterprise Zone Act, |
657 | except that any qualified business that has satisfied the |
658 | requirements of this subsection before that date shall be |
659 | allowed the full benefit of the exemption allowed under this |
660 | subsection as if this subsection had not expired on that date. |
661 | Section 17. For the purpose of incorporating the amendment |
662 | made by this act to section 290.016, Florida Statutes, in a |
663 | reference thereto, subsection (4) of section 193.077, Florida |
664 | Statutes, is reenacted to read: |
665 | 193.077 Notice of new, rebuilt, or expanded property.- |
666 | (4) This section expires on the date specified in s. |
667 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
668 | Section 18. For the purpose of incorporating the amendment |
669 | made by this act to section 290.016, Florida Statutes, in a |
670 | reference thereto, paragraph (b) of subsection (5) of section |
671 | 193.085, Florida Statutes, is reenacted to read: |
672 | 193.085 Listing all property.- |
673 | (5) |
674 | (b) This subsection expires on the date specified in s. |
675 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
676 | Section 19. For the purpose of incorporating the amendment |
677 | made by this act to section 290.016, Florida Statutes, in a |
678 | reference thereto, paragraph (b) of subsection (4) of section |
679 | 195.073, Florida Statutes, is reenacted to read: |
680 | 195.073 Classification of property.-All items required by |
681 | law to be on the assessment rolls must receive a classification |
682 | based upon the use of the property. The department shall |
683 | promulgate uniform definitions for all classifications. The |
684 | department may designate other subclassifications of property. |
685 | No assessment roll may be approved by the department which does |
686 | not show proper classifications. |
687 | (4) |
688 | (b) This subsection expires on the date specified in s. |
689 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
690 | Section 20. For the purpose of incorporating the amendment |
691 | made by this act to section 290.016, Florida Statutes, in a |
692 | reference thereto, paragraph (b) of subsection (1) of section |
693 | 195.099, Florida Statutes, is reenacted to read: |
694 | 195.099 Periodic review.- |
695 | (1) |
696 | (b) This subsection shall expire on the date specified in |
697 | s. 290.016 for the expiration of the Florida Enterprise Zone |
698 | Act. |
699 | Section 21. For the purpose of incorporating the amendment |
700 | made by this act to section 290.016, Florida Statutes, in a |
701 | reference thereto, subsection (19) of section 196.012, Florida |
702 | Statutes, is reenacted to read: |
703 | 196.012 Definitions.-For the purpose of this chapter, the |
704 | following terms are defined as follows, except where the context |
705 | clearly indicates otherwise: |
706 | (19) "Enterprise zone" means an area designated as an |
707 | enterprise zone pursuant to s. 290.0065. This subsection expires |
708 | on the date specified in s. 290.016 for the expiration of the |
709 | Florida Enterprise Zone Act. |
710 | Section 22. For the purpose of incorporating the amendment |
711 | made by this act to section 290.016, Florida Statutes, in a |
712 | reference thereto, subsection (4) of section 205.022, Florida |
713 | Statutes, is reenacted to read: |
714 | 205.022 Definitions.-When used in this chapter, the |
715 | following terms and phrases shall have the meanings ascribed to |
716 | them in this section, except when the context clearly indicates |
717 | a different meaning: |
718 | (4) "Enterprise zone" means an area designated as an |
719 | enterprise zone pursuant to s. 290.0065. This subsection expires |
720 | on the date specified in s. 290.016 for the expiration of the |
721 | Florida Enterprise Zone Act. |
722 | Section 23. For the purpose of incorporating the amendment |
723 | made by this act to section 290.016, Florida Statutes, in a |
724 | reference thereto, subsection (6) of section 205.054, Florida |
725 | Statutes, is reenacted to read: |
726 | 205.054 Business tax; partial exemption for engaging in |
727 | business or occupation in enterprise zone.- |
728 | (6) This section expires on the date specified in s. |
729 | 290.016 for the expiration of the Florida Enterprise Zone Act; |
730 | and a receipt may not be issued with the exemption authorized in |
731 | this section for any period beginning on or after that date. |
732 | Section 24. For the purpose of incorporating the amendment |
733 | made by this act to section 290.016, Florida Statutes, in a |
734 | reference thereto, subsection (6) of section 212.02, Florida |
735 | Statutes, is reenacted to read: |
736 | 212.02 Definitions.-The following terms and phrases when |
737 | used in this chapter have the meanings ascribed to them in this |
738 | section, except where the context clearly indicates a different |
739 | meaning: |
740 | (6) "Enterprise zone" means an area of the state |
741 | designated pursuant to s. 290.0065. This subsection expires on |
742 | the date specified in s. 290.016 for the expiration of the |
743 | Florida Enterprise Zone Act. |
744 | Section 25. For the purpose of incorporating the amendment |
745 | made by this act to section 290.016, Florida Statutes, in a |
746 | reference thereto, paragraph (g) of subsection (5) of section |
747 | 212.08, Florida Statutes, is reenacted to read: |
748 | 212.08 Sales, rental, use, consumption, distribution, and |
749 | storage tax; specified exemptions.-The sale at retail, the |
750 | rental, the use, the consumption, the distribution, and the |
751 | storage to be used or consumed in this state of the following |
752 | are hereby specifically exempt from the tax imposed by this |
753 | chapter. |
754 | (5) EXEMPTIONS; ACCOUNT OF USE.- |
755 | (g) Building materials used in the rehabilitation of real |
756 | property located in an enterprise zone.- |
757 | 1. Building materials used in the rehabilitation of real |
758 | property located in an enterprise zone are exempt from the tax |
759 | imposed by this chapter upon an affirmative showing to the |
760 | satisfaction of the department that the items have been used for |
761 | the rehabilitation of real property located in an enterprise |
762 | zone. Except as provided in subparagraph 2., this exemption |
763 | inures to the owner, lessee, or lessor at the time the real |
764 | property is rehabilitated, but only through a refund of |
765 | previously paid taxes. To receive a refund pursuant to this |
766 | paragraph, the owner, lessee, or lessor of the rehabilitated |
767 | real property must file an application under oath with the |
768 | governing body or enterprise zone development agency having |
769 | jurisdiction over the enterprise zone where the business is |
770 | located, as applicable. A single application for a refund may be |
771 | submitted for multiple, contiguous parcels that were part of a |
772 | single parcel that was divided as part of the rehabilitation of |
773 | the property. All other requirements of this paragraph apply to |
774 | each parcel on an individual basis. The application must |
775 | include: |
776 | a. The name and address of the person claiming the refund. |
777 | b. An address and assessment roll parcel number of the |
778 | rehabilitated real property for which a refund of previously |
779 | paid taxes is being sought. |
780 | c. A description of the improvements made to accomplish |
781 | the rehabilitation of the real property. |
782 | d. A copy of a valid building permit issued by the county |
783 | or municipal building department for the rehabilitation of the |
784 | real property. |
785 | e. A sworn statement, under penalty of perjury, from the |
786 | general contractor licensed in this state with whom the |
787 | applicant contracted to make the improvements necessary to |
788 | rehabilitate the real property, which lists the building |
789 | materials used to rehabilitate the real property, the actual |
790 | cost of the building materials, and the amount of sales tax paid |
791 | in this state on the building materials. If a general contractor |
792 | was not used, the applicant, not a general contractor, shall |
793 | make the sworn statement required by this sub-subparagraph. |
794 | Copies of the invoices that evidence the purchase of the |
795 | building materials used in the rehabilitation and the payment of |
796 | sales tax on the building materials must be attached to the |
797 | sworn statement provided by the general contractor or by the |
798 | applicant. Unless the actual cost of building materials used in |
799 | the rehabilitation of real property and the payment of sales |
800 | taxes is documented by a general contractor or by the applicant |
801 | in this manner, the cost of the building materials is deemed to |
802 | be an amount equal to 40 percent of the increase in assessed |
803 | value for ad valorem tax purposes. |
804 | f. The identifying number assigned pursuant to s. 290.0065 |
805 | to the enterprise zone in which the rehabilitated real property |
806 | is located. |
807 | g. A certification by the local building code inspector |
808 | that the improvements necessary to rehabilitate the real |
809 | property are substantially completed. |
810 | h. A statement of whether the business is a small business |
811 | as defined by s. 288.703(1). |
812 | i. If applicable, the name and address of each permanent |
813 | employee of the business, including, for each employee who is a |
814 | resident of an enterprise zone, the identifying number assigned |
815 | pursuant to s. 290.0065 to the enterprise zone in which the |
816 | employee resides. |
817 | 2. This exemption inures to a municipality, county, other |
818 | governmental unit or agency, or nonprofit community-based |
819 | organization through a refund of previously paid taxes if the |
820 | building materials used in the rehabilitation are paid for from |
821 | the funds of a community development block grant, State Housing |
822 | Initiatives Partnership Program, or similar grant or loan |
823 | program. To receive a refund, a municipality, county, other |
824 | governmental unit or agency, or nonprofit community-based |
825 | organization must file an application that includes the same |
826 | information required in subparagraph 1. In addition, the |
827 | application must include a sworn statement signed by the chief |
828 | executive officer of the municipality, county, other |
829 | governmental unit or agency, or nonprofit community-based |
830 | organization seeking a refund which states that the building |
831 | materials for which a refund is sought were funded by a |
832 | community development block grant, State Housing Initiatives |
833 | Partnership Program, or similar grant or loan program. |
834 | 3. Within 10 working days after receipt of an application, |
835 | the governing body or enterprise zone development agency shall |
836 | review the application to determine if it contains all the |
837 | information required by subparagraph 1. or subparagraph 2. and |
838 | meets the criteria set out in this paragraph. The governing body |
839 | or agency shall certify all applications that contain the |
840 | required information and are eligible to receive a refund. If |
841 | applicable, the governing body or agency shall also certify if |
842 | 20 percent of the employees of the business are residents of an |
843 | enterprise zone, excluding temporary and part-time employees. |
844 | The certification must be in writing, and a copy of the |
845 | certification shall be transmitted to the executive director of |
846 | the department. The applicant is responsible for forwarding a |
847 | certified application to the department within the time |
848 | specified in subparagraph 4. |
849 | 4. An application for a refund must be submitted to the |
850 | department within 6 months after the rehabilitation of the |
851 | property is deemed to be substantially completed by the local |
852 | building code inspector or by November 1 after the rehabilitated |
853 | property is first subject to assessment. |
854 | 5. Only one exemption through a refund of previously paid |
855 | taxes for the rehabilitation of real property is permitted for |
856 | any single parcel of property unless there is a change in |
857 | ownership, a new lessor, or a new lessee of the real property. A |
858 | refund may not be granted unless the amount to be refunded |
859 | exceeds $500. A refund may not exceed the lesser of 97 percent |
860 | of the Florida sales or use tax paid on the cost of the building |
861 | materials used in the rehabilitation of the real property as |
862 | determined pursuant to sub-subparagraph 1.e. or $5,000, or, if |
863 | at least 20 percent of the employees of the business are |
864 | residents of an enterprise zone, excluding temporary and part- |
865 | time employees, the amount of refund may not exceed the lesser |
866 | of 97 percent of the sales tax paid on the cost of the building |
867 | materials or $10,000. A refund shall be made within 30 days |
868 | after formal approval by the department of the application for |
869 | the refund. |
870 | 6. The department shall adopt rules governing the manner |
871 | and form of refund applications and may establish guidelines as |
872 | to the requisites for an affirmative showing of qualification |
873 | for exemption under this paragraph. |
874 | 7. The department shall deduct an amount equal to 10 |
875 | percent of each refund granted under this paragraph from the |
876 | amount transferred into the Local Government Half-cent Sales Tax |
877 | Clearing Trust Fund pursuant to s. 212.20 for the county area in |
878 | which the rehabilitated real property is located and shall |
879 | transfer that amount to the General Revenue Fund. |
880 | 8. For the purposes of the exemption provided in this |
881 | paragraph, the term: |
882 | a. "Building materials" means tangible personal property |
883 | that becomes a component part of improvements to real property. |
884 | b. "Real property" has the same meaning as provided in s. |
885 | 192.001(12), except that the term does not include a condominium |
886 | parcel or condominium property as defined in s. 718.103. |
887 | c. "Rehabilitation of real property" means the |
888 | reconstruction, renovation, restoration, rehabilitation, |
889 | construction, or expansion of improvements to real property. |
890 | d. "Substantially completed" has the same meaning as |
891 | provided in s. 192.042(1). |
892 | 9. This paragraph expires on the date specified in s. |
893 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
894 | Section 26. For the purpose of incorporating the amendment |
895 | made by this act to section 290.016, Florida Statutes, in a |
896 | reference thereto, subsection (12) of section 212.096, Florida |
897 | Statutes, is reenacted to read: |
898 | 212.096 Sales, rental, storage, use tax; enterprise zone |
899 | jobs credit against sales tax.- |
900 | (12) This section, except for subsection (11), expires on |
901 | the date specified in s. 290.016 for the expiration of the |
902 | Florida Enterprise Zone Act. |
903 | Section 27. For the purpose of incorporating the amendment |
904 | made by this act to section 290.016, Florida Statutes, in |
905 | references thereto, paragraph (c) of subsection (6) and |
906 | paragraph (c) of subsection (7) of section 220.02, Florida |
907 | Statutes, are reenacted to read: |
908 | 220.02 Legislative intent.- |
909 | (6) |
910 | (c) This subsection expires on the date specified in s. |
911 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
912 | (7) |
913 | (c) This subsection expires on the date specified in s. |
914 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
915 | Section 28. For the purpose of incorporating the amendment |
916 | made by this act to section 290.016, Florida Statutes, in |
917 | references thereto, subsection (1) of section 220.03, Florida |
918 | Statutes, is reenacted to read: |
919 | 220.03 Definitions.- |
920 | (1) SPECIFIC TERMS.-When used in this code, and when not |
921 | otherwise distinctly expressed or manifestly incompatible with |
922 | the intent thereof, the following terms shall have the following |
923 | meanings: |
924 | (a) "Ad valorem taxes paid" means 96 percent of property |
925 | taxes levied for operating purposes and does not include |
926 | interest, penalties, or discounts foregone. In addition, the |
927 | term "ad valorem taxes paid," for purposes of the credit in s. |
928 | 220.182, means the ad valorem tax paid on new or additional real |
929 | or personal property acquired to establish a new business or |
930 | facilitate a business expansion, including pollution and waste |
931 | control facilities, or any part thereof, and including one or |
932 | more buildings or other structures, machinery, fixtures, and |
933 | equipment. This paragraph expires on the date specified in s. |
934 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
935 | (b) "Affiliated group of corporations" means two or more |
936 | corporations which constitute an affiliated group of |
937 | corporations as defined in s. 1504(a) of the Internal Revenue |
938 | Code. |
939 | (c) "Business" or "business firm" means any business |
940 | entity authorized to do business in this state as defined in |
941 | paragraph (e), and any bank or savings and loan association as |
942 | defined in s. 220.62, subject to the tax imposed by the |
943 | provisions of this chapter. This paragraph expires on the date |
944 | specified in s. 290.016 for the expiration of the Florida |
945 | Enterprise Zone Act. |
946 | (d) "Community contribution" means the grant by a business |
947 | firm of any of the following items: |
948 | 1. Cash or other liquid assets. |
949 | 2. Real property. |
950 | 3. Goods or inventory. |
951 | 4. Other physical resources as identified by the |
952 | department. |
953 |
|
954 | This paragraph expires on the date specified in s. 290.016 for |
955 | the expiration of the Florida Enterprise Zone Act. |
956 | (e) "Corporation" includes all domestic corporations; |
957 | foreign corporations qualified to do business in this state or |
958 | actually doing business in this state; joint-stock companies; |
959 | limited liability companies, under chapter 608; common-law |
960 | declarations of trust, under chapter 609; corporations not for |
961 | profit, under chapter 617; agricultural cooperative marketing |
962 | associations, under chapter 618; professional service |
963 | corporations, under chapter 621; foreign unincorporated |
964 | associations, under chapter 622; private school corporations, |
965 | under chapter 623; foreign corporations not for profit which are |
966 | carrying on their activities in this state; and all other |
967 | organizations, associations, legal entities, and artificial |
968 | persons which are created by or pursuant to the statutes of this |
969 | state, the United States, or any other state, territory, |
970 | possession, or jurisdiction. The term "corporation" does not |
971 | include proprietorships, even if using a fictitious name; |
972 | partnerships of any type, as such; limited liability companies |
973 | that are taxable as partnerships for federal income tax |
974 | purposes; state or public fairs or expositions, under chapter |
975 | 616; estates of decedents or incompetents; testamentary trusts; |
976 | or private trusts. |
977 | (f) "Department" means the Department of Revenue of this |
978 | state. |
979 | (g) "Director" means the executive director of the |
980 | Department of Revenue and, when there has been an appropriate |
981 | delegation of authority, the executive director's delegate. |
982 | (h) "Earned," "accrued," "paid," or "incurred" shall be |
983 | construed according to the method of accounting upon the basis |
984 | of which a taxpayer's income is computed under this code. |
985 | (i) "Emergency," as used in s. 220.02 and in paragraph (u) |
986 | of this subsection, means occurrence of widespread or severe |
987 | damage, injury, or loss of life or property proclaimed pursuant |
988 | to s. 14.022 or declared pursuant to s. 252.36. This paragraph |
989 | expires on the date specified in s. 290.016 for the expiration |
990 | of the Florida Enterprise Zone Act. |
991 | (j) "Enterprise zone" means an area in the state |
992 | designated pursuant to s. 290.0065. This paragraph expires on |
993 | the date specified in s. 290.016 for the expiration of the |
994 | Florida Enterprise Zone Act. |
995 | (k) "Expansion of an existing business," for the purposes |
996 | of the enterprise zone property tax credit, means any business |
997 | entity authorized to do business in this state as defined in |
998 | paragraph (e), and any bank or savings and loan association as |
999 | defined in s. 220.62, subject to the tax imposed by the |
1000 | provisions of this chapter, located in an enterprise zone, which |
1001 | expands by or through additions to real and personal property |
1002 | and which establishes five or more new jobs to employ five or |
1003 | more additional full-time employees at such location. This |
1004 | paragraph expires on the date specified in s. 290.016 for the |
1005 | expiration of the Florida Enterprise Zone Act. |
1006 | (l) "Fiscal year" means an accounting period of 12 months |
1007 | or less ending on the last day of any month other than December |
1008 | or, in the case of a taxpayer with an annual accounting period |
1009 | of 52-53 weeks under s. 441(f) of the Internal Revenue Code, the |
1010 | period determined under that subsection. |
1011 | (m) "Includes" or "including," when used in a definition |
1012 | contained in this code, shall not be deemed to exclude other |
1013 | things otherwise within the meaning of the term defined. |
1014 | (n) "Internal Revenue Code" means the United States |
1015 | Internal Revenue Code of 1986, as amended and in effect on |
1016 | January 1, 2010, except as provided in subsection (3). |
1017 | (o) "Local government" means any county or incorporated |
1018 | municipality in the state. This paragraph expires on the date |
1019 | specified in s. 290.016 for the expiration of the Florida |
1020 | Enterprise Zone Act. |
1021 | (p) "New business," for the purposes of the enterprise |
1022 | zone property tax credit, means any business entity authorized |
1023 | to do business in this state as defined in paragraph (e), or any |
1024 | bank or savings and loan association as defined in s. 220.62, |
1025 | subject to the tax imposed by the provisions of this chapter, |
1026 | first beginning operations on a site located in an enterprise |
1027 | zone and clearly separate from any other commercial or |
1028 | industrial operations owned by the same entity, bank, or savings |
1029 | and loan association and which establishes five or more new jobs |
1030 | to employ five or more additional full-time employees at such |
1031 | location. This paragraph expires on the date specified in s. |
1032 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
1033 | (q) "New employee," for the purposes of the enterprise |
1034 | zone jobs credit, means a person residing in an enterprise zone |
1035 | or a participant in the welfare transition program who is |
1036 | employed at a business located in an enterprise zone who begins |
1037 | employment in the operations of the business after July 1, 1995, |
1038 | and who has not been previously employed full time within the |
1039 | preceding 12 months by the business or a successor business |
1040 | claiming the credit pursuant to s. 220.181. A person shall be |
1041 | deemed to be employed by such a business if the person performs |
1042 | duties in connection with the operations of the business on a |
1043 | full-time basis, provided she or he is performing such duties |
1044 | for an average of at least 36 hours per week each month. The |
1045 | person must be performing such duties at a business site located |
1046 | in an enterprise zone. This paragraph expires on the date |
1047 | specified in s. 290.016 for the expiration of the Florida |
1048 | Enterprise Zone Act. |
1049 | (r) "Nonbusiness income" means rents and royalties from |
1050 | real or tangible personal property, capital gains, interest, |
1051 | dividends, and patent and copyright royalties, to the extent |
1052 | that they do not arise from transactions and activities in the |
1053 | regular course of the taxpayer's trade or business. The term |
1054 | "nonbusiness income" does not include income from tangible and |
1055 | intangible property if the acquisition, management, and |
1056 | disposition of the property constitute integral parts of the |
1057 | taxpayer's regular trade or business operations, or any amounts |
1058 | which could be included in apportionable income without |
1059 | violating the due process clause of the United States |
1060 | Constitution. For purposes of this definition, "income" means |
1061 | gross receipts less all expenses directly or indirectly |
1062 | attributable thereto. Functionally related dividends are |
1063 | presumed to be business income. |
1064 | (s) "Partnership" includes a syndicate, group, pool, joint |
1065 | venture, or other unincorporated organization through or by |
1066 | means of which any business, financial operation, or venture is |
1067 | carried on, including a limited partnership; and the term |
1068 | "partner" includes a member having a capital or a profits |
1069 | interest in a partnership. |
1070 | (t) "Project" means any activity undertaken by an eligible |
1071 | sponsor, as defined in s. 220.183(2)(c), which is designed to |
1072 | construct, improve, or substantially rehabilitate housing that |
1073 | is affordable to low-income or very-low-income households as |
1074 | defined in s. 420.9071(19) and (28); designed to provide |
1075 | commercial, industrial, or public resources and facilities; or |
1076 | designed to improve entrepreneurial and job-development |
1077 | opportunities for low-income persons. A project may be the |
1078 | investment necessary to increase access to high-speed broadband |
1079 | capability in rural communities with enterprise zones, including |
1080 | projects that result in improvements to communications assets |
1081 | that are owned by a business. A project may include the |
1082 | provision of museum educational programs and materials that are |
1083 | directly related to any project approved between January 1, |
1084 | 1996, and December 31, 1999, and located in an enterprise zone |
1085 | designated pursuant to s. 290.0065. This paragraph does not |
1086 | preclude projects that propose to construct or rehabilitate low- |
1087 | income or very-low-income housing on scattered sites. With |
1088 | respect to housing, contributions may be used to pay the |
1089 | following eligible project-related activities: |
1090 | 1. Project development, impact, and management fees for |
1091 | low-income or very-low-income housing projects; |
1092 | 2. Down payment and closing costs for eligible persons, as |
1093 | defined in s. 420.9071(19) and (28); |
1094 | 3. Administrative costs, including housing counseling and |
1095 | marketing fees, not to exceed 10 percent of the community |
1096 | contribution, directly related to low-income or very-low-income |
1097 | projects; and |
1098 | 4. Removal of liens recorded against residential property |
1099 | by municipal, county, or special-district local governments when |
1100 | satisfaction of the lien is a necessary precedent to the |
1101 | transfer of the property to an eligible person, as defined in s. |
1102 | 420.9071(19) and (28), for the purpose of promoting home |
1103 | ownership. Contributions for lien removal must be received from |
1104 | a nonrelated third party. |
1105 |
|
1106 | The provisions of this paragraph shall expire and be void on |
1107 | June 30, 2015. |
1108 | (u) "Rebuilding of an existing business" means replacement |
1109 | or restoration of real or tangible property destroyed or damaged |
1110 | in an emergency, as defined in paragraph (i), after July 1, |
1111 | 1995, in an enterprise zone, by a business entity authorized to |
1112 | do business in this state as defined in paragraph (e), or a bank |
1113 | or savings and loan association as defined in s. 220.62, subject |
1114 | to the tax imposed by the provisions of this chapter, located in |
1115 | the enterprise zone. This paragraph expires on the date |
1116 | specified in s. 290.016 for the expiration of the Florida |
1117 | Enterprise Zone Act. |
1118 | (v) "Regulations" includes rules promulgated, and forms |
1119 | prescribed, by the department. |
1120 | (w) "Returns" includes declarations of estimated tax |
1121 | required under this code. |
1122 | (x) "State," when applied to a jurisdiction other than |
1123 | Florida, means any state of the United States, the District of |
1124 | Columbia, the Commonwealth of Puerto Rico, any territory or |
1125 | possession of the United States, and any foreign country, or any |
1126 | political subdivision of any of the foregoing. |
1127 | (y) "Taxable year" means the calendar or fiscal year upon |
1128 | the basis of which net income is computed under this code, |
1129 | including, in the case of a return made for a fractional part of |
1130 | a year, the period for which such return is made. |
1131 | (z) "Taxpayer" means any corporation subject to the tax |
1132 | imposed by this code, and includes all corporations for which a |
1133 | consolidated return is filed under s. 220.131. However, |
1134 | "taxpayer" does not include a corporation having no individuals |
1135 | (including individuals employed by an affiliate) receiving |
1136 | compensation in this state as defined in s. 220.15 when the only |
1137 | property owned or leased by said corporation (including an |
1138 | affiliate) in this state is located at the premises of a printer |
1139 | with which it has contracted for printing, if such property |
1140 | consists of the final printed product, property which becomes a |
1141 | part of the final printed product, or property from which the |
1142 | printed product is produced. |
1143 | (aa) "Functionally related dividends" include the |
1144 | following types of dividends: |
1145 | 1. Those received from a subsidiary of which the voting |
1146 | stock is more than 50 percent owned or controlled by the |
1147 | taxpayer or members of its affiliated group and which is engaged |
1148 | in the same general line of business. |
1149 | 2. Those received from any corporation which is either a |
1150 | significant source of supply for the taxpayer or its affiliated |
1151 | group or a significant purchaser of the output of the taxpayer |
1152 | or its affiliated group, or which sells a significant part of |
1153 | its output or obtains a significant part of its raw materials or |
1154 | input from the taxpayer or its affiliated group. "Significant" |
1155 | means an amount of 15 percent or more. |
1156 | 3. Those resulting from the investment of working capital |
1157 | or some other purpose in furtherance of the taxpayer or its |
1158 | affiliated group. |
1159 |
|
1160 | However, dividends not otherwise subject to tax under this |
1161 | chapter are excluded. |
1162 | (bb) "Child care facility startup costs" means |
1163 | expenditures for substantial renovation, equipment, including |
1164 | playground equipment and kitchen appliances and cooking |
1165 | equipment, real property, including land and improvements, and |
1166 | for reduction of debt, made in connection with a child care |
1167 | facility as defined by s. 402.302, or any facility providing |
1168 | daily care to children who are mildly ill, which is located in |
1169 | this state on the taxpayer's premises and used by the employees |
1170 | of the taxpayer. |
1171 | (cc) "Operation of a child care facility" means operation |
1172 | of a child care facility as defined by s. 402.302, or any |
1173 | facility providing daily care to children who are mildly ill, |
1174 | which is located in this state within 5 miles of at least one |
1175 | place of business of the taxpayer and which is used by the |
1176 | employees of the taxpayer. |
1177 | (dd) "Citrus processing company" means a corporation |
1178 | which, during the 60-month period ending on December 31, 1997, |
1179 | had derived more than 50 percent of its total gross receipts |
1180 | from the processing of citrus products and the manufacture of |
1181 | juices. |
1182 | (ee) "New job has been created" means that, on the date of |
1183 | application, the total number of full-time jobs is greater than |
1184 | the total was 12 months prior to that date, as demonstrated to |
1185 | the department by a business located in the enterprise zone. |
1186 | (ff) "Job" means a full-time position, as consistent with |
1187 | terms used by the Agency for Workforce Innovation and the United |
1188 | States Department of Labor for purposes of unemployment |
1189 | compensation tax administration and employment estimation |
1190 | resulting directly from business operations in this state. The |
1191 | term may not include a temporary construction job involved with |
1192 | the construction of facilities or any job that has previously |
1193 | been included in any application for tax credits under s. |
1194 | 212.096. The term also includes employment of an employee leased |
1195 | from an employee leasing company licensed under chapter 468 if |
1196 | the employee has been continuously leased to the employer for an |
1197 | average of at least 36 hours per week for more than 6 months. |
1198 | Section 29. For the purpose of incorporating the amendment |
1199 | made by this act to section 290.016, Florida Statutes, in |
1200 | references thereto, paragraph (a) of subsection (1) of section |
1201 | 220.13, Florida Statutes, is reenacted to read: |
1202 | 220.13 "Adjusted federal income" defined.- |
1203 | (1) The term "adjusted federal income" means an amount |
1204 | equal to the taxpayer's taxable income as defined in subsection |
1205 | (2), or such taxable income of more than one taxpayer as |
1206 | provided in s. 220.131, for the taxable year, adjusted as |
1207 | follows: |
1208 | (a) Additions.-There shall be added to such taxable |
1209 | income: |
1210 | 1. The amount of any tax upon or measured by income, |
1211 | excluding taxes based on gross receipts or revenues, paid or |
1212 | accrued as a liability to the District of Columbia or any state |
1213 | of the United States which is deductible from gross income in |
1214 | the computation of taxable income for the taxable year. |
1215 | 2. The amount of interest which is excluded from taxable |
1216 | income under s. 103(a) of the Internal Revenue Code or any other |
1217 | federal law, less the associated expenses disallowed in the |
1218 | computation of taxable income under s. 265 of the Internal |
1219 | Revenue Code or any other law, excluding 60 percent of any |
1220 | amounts included in alternative minimum taxable income, as |
1221 | defined in s. 55(b)(2) of the Internal Revenue Code, if the |
1222 | taxpayer pays tax under s. 220.11(3). |
1223 | 3. In the case of a regulated investment company or real |
1224 | estate investment trust, an amount equal to the excess of the |
1225 | net long-term capital gain for the taxable year over the amount |
1226 | of the capital gain dividends attributable to the taxable year. |
1227 | 4. That portion of the wages or salaries paid or incurred |
1228 | for the taxable year which is equal to the amount of the credit |
1229 | allowable for the taxable year under s. 220.181. This |
1230 | subparagraph shall expire on the date specified in s. 290.016 |
1231 | for the expiration of the Florida Enterprise Zone Act. |
1232 | 5. That portion of the ad valorem school taxes paid or |
1233 | incurred for the taxable year which is equal to the amount of |
1234 | the credit allowable for the taxable year under s. 220.182. This |
1235 | subparagraph shall expire on the date specified in s. 290.016 |
1236 | for the expiration of the Florida Enterprise Zone Act. |
1237 | 6. The amount of emergency excise tax paid or accrued as a |
1238 | liability to this state under chapter 221 which tax is |
1239 | deductible from gross income in the computation of taxable |
1240 | income for the taxable year. |
1241 | 7. That portion of assessments to fund a guaranty |
1242 | association incurred for the taxable year which is equal to the |
1243 | amount of the credit allowable for the taxable year. |
1244 | 8. In the case of a nonprofit corporation which holds a |
1245 | pari-mutuel permit and which is exempt from federal income tax |
1246 | as a farmers' cooperative, an amount equal to the excess of the |
1247 | gross income attributable to the pari-mutuel operations over the |
1248 | attributable expenses for the taxable year. |
1249 | 9. The amount taken as a credit for the taxable year under |
1250 | s. 220.1895. |
1251 | 10. Up to nine percent of the eligible basis of any |
1252 | designated project which is equal to the credit allowable for |
1253 | the taxable year under s. 220.185. |
1254 | 11. The amount taken as a credit for the taxable year |
1255 | under s. 220.1875. The addition in this subparagraph is intended |
1256 | to ensure that the same amount is not allowed for the tax |
1257 | purposes of this state as both a deduction from income and a |
1258 | credit against the tax. This addition is not intended to result |
1259 | in adding the same expense back to income more than once. |
1260 | 12. The amount taken as a credit for the taxable year |
1261 | under s. 220.192. |
1262 | 13. The amount taken as a credit for the taxable year |
1263 | under s. 220.193. |
1264 | 14. Any portion of a qualified investment, as defined in |
1265 | s. 288.9913, which is claimed as a deduction by the taxpayer and |
1266 | taken as a credit against income tax pursuant to s. 288.9916. |
1267 | 15. The costs to acquire a tax credit pursuant to s. |
1268 | 288.1254(5) that are deducted from or otherwise reduce federal |
1269 | taxable income for the taxable year. |
1270 | Section 30. For the purpose of incorporating the amendment |
1271 | made by this act to section 290.016, Florida Statutes, in a |
1272 | reference thereto, subsection (9) of section 220.181, Florida |
1273 | Statutes, is reenacted to read: |
1274 | 220.181 Enterprise zone jobs credit.- |
1275 | (9) This section, except paragraph (1)(c) and subsection |
1276 | (8), expires on the date specified in s. 290.016 for the |
1277 | expiration of the Florida Enterprise Zone Act, and a business |
1278 | may not begin claiming the enterprise zone jobs credit after |
1279 | that date; however, the expiration of this section does not |
1280 | affect the operation of any credit for which a business has |
1281 | qualified under this section before that date, or any |
1282 | carryforward of unused credit amounts as provided in paragraph |
1283 | (1)(c). |
1284 | Section 31. For the purpose of incorporating the amendment |
1285 | made by this act to section 290.016, Florida Statutes, in a |
1286 | reference thereto, subsection (14) of section 220.182, Florida |
1287 | Statutes, is reenacted to read: |
1288 | 220.182 Enterprise zone property tax credit.- |
1289 | (14) This section expires on the date specified in s. |
1290 | 290.016 for the expiration of the Florida Enterprise Zone Act, |
1291 | and a business may not begin claiming the enterprise zone |
1292 | property tax credit after that date; however, the expiration of |
1293 | this section does not affect the operation of any credit for |
1294 | which a business has qualified under this section before that |
1295 | date, or any carryforward of unused credit amounts as provided |
1296 | in paragraph (1)(b). |
1297 | Section 32. This act shall take effect July 1, 2011. |