Florida Senate - 2019 SB 1424
By Senator Powell
30-01872-19 20191424__
1 A bill to be entitled
2 An act relating to small business microfinancing;
3 amending s. 287.0947, F.S.; renaming the Florida
4 Advisory Council on Small and Minority Business
5 Development; requiring the council to administer the
6 Florida Microfinancing Tax Credit Program; conforming
7 a provision to changes made by the act; creating s.
8 287.09475, F.S.; establishing the Florida
9 Microfinancing Tax Credit Program; providing
10 legislative findings and intent; providing
11 definitions; providing eligibility requirements for
12 participation in the program; establishing a tax
13 credit cap amount; authorizing an increase of such
14 amount under certain circumstances; specifying
15 procedures and requirements for applying for, carrying
16 forward, conveying, assigning, transferring, and
17 rescinding the tax credit; specifying procedures for
18 calculating certain tax underpayments and determining
19 certain penalties and interest; specifying obligations
20 of eligible microfinancing organizations for program
21 participation; authorizing a certain percentage of
22 eligible contributions to be collected for
23 administrative expenses; specifying how net
24 contributions are to be handled; authorizing an
25 eligible microfinancing organization to transfer funds
26 under specified circumstances; providing for
27 confidentiality of certain information and
28 documentation; specifying responsibilities of an
29 eligible person to participate in the program;
30 specifying council obligations as part of the program;
31 requiring an annual report to the Department of
32 Management Services providing program parameters;
33 requiring quarterly reports by an eligible
34 microfinancing organization; specifying authorized
35 microfinancing amounts; requiring an eligible person
36 to verify specified information regarding opening or
37 expanding a small business to the eligible
38 microfinancing organization; requiring eligible
39 contributions received by an eligible microfinancing
40 organization to be deposited in a specific manner;
41 providing that credit earned remains unaffected if any
42 other tax credit is declared unconstitutional or is
43 invalid; specifying the application requirements for
44 microfinancing organizations to participate in the
45 program; specifying the disposition of remaining funds
46 held by a microfinancing organization that is
47 disapproved for participation in the program;
48 providing renewal criteria; requiring the Department
49 of Revenue, the Department of Management Services, and
50 the council to develop a cooperative agreement to
51 administer the program; authorizing the Department of
52 Revenue and the Department of Management Services with
53 input from the council to adopt certain rules;
54 creating s. 211.0255, F.S.; providing for a credit
55 against the oil and gas production tax for program
56 contributions for certain eligible microfinancing
57 organizations; requiring the Department of Revenue to
58 disregard certain tax credits for certain purposes;
59 creating s. 212.1835, F.S.; providing for a credit
60 against the sales and use tax for certain eligible
61 microfinancing organizations; requiring the Department
62 of Revenue to disregard certain tax credits for
63 certain purposes; amending s. 220.13, F.S.; revising
64 the determination of additions to adjusted federal
65 income for certain eligible microfinancing
66 organizations; providing for construction of certain
67 provisions; creating s. 220.1877, F.S.; providing for
68 a credit against the corporate income tax for certain
69 eligible microfinancing organizations; providing
70 limitations; providing for adjustments; creating s.
71 561.1215, F.S.; providing for a credit against certain
72 alcoholic beverage taxes for certain eligible
73 microfinancing organizations; requiring the Division
74 of Alcoholic Beverages and Tobacco of the Department
75 of Business and Professional Regulation to disregard
76 certain tax credits for certain purposes; creating s.
77 624.51057, F.S.; providing for credits against the
78 insurance premium tax for contributions to certain
79 eligible microfinancing organizations; authorizing the
80 Department of Revenue to adopt emergency rules;
81 providing applicability; providing an effective date.
82
83 Be It Enacted by the Legislature of the State of Florida:
84
85 Section 1. Section 287.0947, Florida Statutes, is amended
86 to read:
87 287.0947 Florida Advisory Council on Small and Minority
88 Business Development; creation; membership; duties.—
89 (1) There is created within the Department of Secretary of
90 Management Services may create the Florida Advisory Council on
91 Small and Minority Business Development with the purpose of
92 advising and assisting the secretary in carrying out the
93 secretary’s duties with respect to minority businesses and
94 economic and business development and administering the Florida
95 Microfinancing Tax Credit Program as created in s. 287.09475. It
96 is the intent of the Legislature that the membership of such
97 council include practitioners, laypersons, financiers, and
98 others with business development experience who can provide
99 invaluable insight and expertise for this state in the
100 diversification of its markets and networking of business
101 opportunities. The council shall initially consist of 19
102 persons, each of whom is or has been actively engaged in small
103 and minority business development, either in private industry,
104 in governmental service, or as a scholar of recognized
105 achievement in the study of such matters. Initially, the council
106 shall consist of members representing all regions of the state
107 and shall include at least one member from each group identified
108 within the definition of “minority person” in s. 288.703(4),
109 considering also gender and nationality subgroups, and shall
110 consist of the following:
111 (a) Four members consisting of representatives of local and
112 federal small and minority business assistance programs or
113 community development programs.
114 (b) Eight members composed of representatives of the
115 minority private business sector, including certified minority
116 business enterprises and minority supplier development councils,
117 among whom at least two shall be women and at least four shall
118 be minority persons.
119 (c) Two representatives of local government, one of whom
120 shall be a representative of a large local government, and one
121 of whom shall be a representative of a small local government.
122 (d) Two representatives from the banking and insurance
123 industry.
124 (e) Two members from the private business sector,
125 representing the construction and commodities industries.
126 (f) A member from the board of directors of Enterprise
127 Florida, Inc.
128
129 A candidate for appointment may be considered if eligible to be
130 certified as an owner of a minority business enterprise, or if
131 otherwise qualified under the criteria above. Vacancies may be
132 filled by appointment of the secretary, in the manner of the
133 original appointment.
134 (2) Each appointed member shall serve for a term of 2 years
135 from the date of appointment, except that a vacancy shall be
136 filled by appointment for the remainder of the unexpired term.
137 The council shall annually elect a chair and a vice chair. The
138 council shall adopt internal procedures or bylaws necessary for
139 efficient operations. Members of the council shall serve without
140 compensation or honorarium but shall be entitled to per diem and
141 travel expenses pursuant to s. 112.061 for the performance of
142 duties for the council. The executive administrator of the
143 commission may remove a council member for cause.
144 (3) Within 30 days after its initial meeting, the council
145 shall elect from among its members a chair and a vice chair.
146 (4) The council shall meet at the call of its chair, at the
147 request of a majority of its membership, at the request of the
148 commission or its executive administrator, or at such times as
149 may be prescribed by rule, but not less than once a year, to
150 offer its views on issues related to small and minority business
151 development of concern to this state. A majority of the members
152 of the council shall constitute a quorum.
153 (5) The powers and duties of the council include, but are
154 not limited to: researching and reviewing the role of small and
155 minority businesses in the state’s economy; reviewing issues and
156 emerging topics relating to small and minority business economic
157 development; studying the ability of financial markets and
158 institutions to meet small business credit needs and determining
159 the impact of government demands on credit for small businesses;
160 assessing the implementation of s. 187.201(21), requiring a
161 state economic development comprehensive plan, as it relates to
162 small and minority businesses; assessing the reasonableness and
163 effectiveness of efforts by any state agency or by all state
164 agencies collectively to assist minority business enterprises;
165 and advising the Governor, the secretary, and the Legislature on
166 matters relating to small and minority business development
167 which are of importance to the international strategic planning
168 and activities of this state.
169 (6) In addition to its other duties, the council shall
170 administer the Florida Microfinancing Tax Credit Program
171 established under s. 287.09475.
172 (7) On or before March January 1 of each year, the council
173 shall present an annual report to the secretary that sets forth
174 in appropriate detail the business transacted by the council
175 during the year and any recommendations to the secretary,
176 including those to improve business opportunities for small and
177 minority business enterprises. The report shall include the
178 information set forth in s. 287.09475(7)(c).
179 Section 2. Section 287.09475, Florida Statutes, is created
180 to read:
181 287.09475 Florida Microfinancing Tax Credit Program.—
182 (1) FINDINGS AND PURPOSE.—
183 (a) The Legislature finds that:
184 1. The Legislature has the inherent power to determine
185 subjects of taxation for general or particular public purposes.
186 2. Expanding economic opportunities and improving the
187 ability of minority persons to access capital for the purpose of
188 opening or expanding small businesses within this state are
189 valid public purposes that the Legislature may promote using its
190 sovereign power to determine subjects of taxation and exemptions
191 from taxation.
192 3. Expanding economic opportunities to persons who have had
193 little access to traditional forms of loans and the creation of
194 a healthy environment through competition in the marketplace are
195 critical to improving the business environment in this state and
196 to ensuring that all small minority-owned business enterprises
197 have the same opportunity to access capital as larger businesses
198 and to which they are entitled.
199 (b) The purpose of this section is to:
200 1. Enable taxpayers to make private, voluntary
201 contributions to the Microfinancing Tax Credit Program in order
202 to promote the general welfare.
203 2. Provide taxpayers who wish to help minority persons with
204 limited financial resources and an inability to access
205 traditional sources of loans, to exercise their basic right to
206 obtain capital and funding in order to open or expand small
207 businesses.
208 3. Improve the job opportunities in this state by expanding
209 the opportunity of minority persons to open or expand small
210 businesses and hire employees.
211 (2) DEFINITIONS.—As used in this section, the term:
212 (a) “Annual tax credit amount” means, for any state fiscal
213 year, the sum of the amount of tax credits approved under
214 paragraph (4)(b), which are approved for a taxpayer whose
215 taxable year begins on or after January 1 of the calendar year
216 preceding the start of the applicable state fiscal year.
217 (b) “Council” means the Florida Council on Small and
218 Minority Business Development.
219 (c) “Department” means the Department of Revenue.
220 (d) “Direct certification list” means the certified list of
221 minority persons who desire to open or expand a small business
222 but who have documented an inability to access traditional
223 sources of funding through banks or other financial institutions
224 and have been denied repeated attempts in obtaining traditional
225 sources of funding.
226 (e) “Eligible contribution” means a monetary contribution
227 from a taxpayer, subject to the restrictions provided in this
228 section, to an eligible microfinancing organization.
229 (f) “Eligible microfinancing organization” means a
230 charitable organization that:
231 1. Is exempt from federal income tax pursuant to s.
232 501(c)(3) of the Internal Revenue Code.
233 2. Is a Florida entity formed under chapter 605, chapter
234 607, or chapter 617 and whose principal office is located in
235 this state.
236 3. Complies with subsections (5) and (11).
237 (g) “Eligible person” means a minority person who meets the
238 requirements in subsection (6).
239 (h) “Minority person” means a minority person as defined in
240 s. 288.703.
241 (i) “Owner or operator” means an owner, president, officer,
242 or director of an eligible microfinancing organization or a
243 person with equivalent decisionmaking authority over an eligible
244 microfinancing organization.
245 (j) “Small business” means a small business as defined in
246 s. 288.703 which is owned and operated by a minority person.
247 (k) “Tax credit cap amount” means the maximum annual tax
248 credit amount that the department may approve for a state fiscal
249 year.
250 (3) PROGRAM ESTABLISHMENT; ELIGIBILITY OF MINORITY
251 PERSONS.—
252 (a) The Florida Microfinancing Tax Credit Program is
253 established.
254 (b) A minority person is eligible for microfinancing under
255 this section if the minority person desires to open or expand a
256 small business and meets the criteria set forth by the council.
257 A minority person who initially receives financing based on
258 eligibility as determined by the council and later is able to
259 acquire financing at an interest rate determined reasonable by
260 the council must repay the financed amount and obtain
261 traditional financing.
262 (4) MICROFINANCING FUNDING TAX CREDITS; LIMITATIONS.—
263 (a)1. The tax credit cap amount is $XX million in the 2019
264 2020 state fiscal year.
265 2. In the 2020-2021 state fiscal year and each state fiscal
266 year thereafter, the tax credit cap amount is the tax credit cap
267 amount in the prior state fiscal year. However, in any state
268 fiscal year when the annual tax credit amount for the prior
269 state fiscal year is equal to or greater than 90 percent of the
270 tax credit cap amount applicable to that state fiscal year, the
271 tax credit cap amount shall increase by 25 percent. The
272 Secretary of Management Services and the department shall
273 publish on their websites information identifying the tax credit
274 cap amount when it is increased.
275 (b) A taxpayer may submit an application to the department
276 for a tax credit or credits under one or more of s. 211.0255, s.
277 212.1835, s. 220.1877, s. 561.1215, or s. 624.51057.
278 1. The taxpayer shall specify in the application each tax
279 for which the taxpayer requests a credit and the applicable
280 taxable year for a credit under s. 220.1877 or s. 624.51057 or
281 the applicable state fiscal year for a credit under s. 211.0255,
282 s. 212.1835, or s. 561.1215. For purposes of s. 220.1877, a
283 taxpayer may apply for a credit to be used for a prior taxable
284 year before the date the taxpayer is required to file a return
285 for that year pursuant to s. 220.222. The department shall
286 approve tax credits on a first-come, first-served basis.
287 2. Within 10 days after approving or denying an
288 application, the department shall provide a copy of its approval
289 or denial letter to the eligible microfinancing organization
290 specified by the taxpayer in the application.
291 (c) If a tax credit approved under paragraph (b) is not
292 fully used within the specified state fiscal year for credits
293 under s. 211.0255, s. 212.1835, or s. 561.1215 or against taxes
294 due for the specified taxable year for credits under s. 220.1877
295 or s. 624.51057 because of insufficient tax liability on the
296 part of the taxpayer, the unused amount shall be carried forward
297 for a period not to exceed 10 years. For purposes of s.
298 220.1877, a credit carried forward may be used in a subsequent
299 year after applying the other credits and unused carryovers in
300 the order provided in s. 220.02(8).
301 (d) A taxpayer may not convey, assign, or transfer an
302 approved tax credit or a carryforward tax credit to another
303 entity unless all of the assets of the taxpayer are conveyed,
304 assigned, or transferred in the same transaction. However, a tax
305 credit under s. 211.0255, s. 212.1835, s. 220.1877, s. 561.1215,
306 or s. 624.51057 may be conveyed, transferred, or assigned
307 between members of an affiliated group of corporations if the
308 type of tax credit under s. 211.0255, s. 212.1835, s. 220.1877,
309 s. 561.1215, or s. 624.51057 remains the same. A taxpayer shall
310 notify the department of its intent to convey, transfer, or
311 assign a tax credit to another member within an affiliated group
312 of corporations. The amount conveyed, transferred, or assigned
313 is available to another member of the affiliated group of
314 corporations upon approval by the department.
315 (e) Within any state fiscal year, a taxpayer may rescind
316 all or part of a tax credit approved under paragraph (b). The
317 amount rescinded shall become available for that state fiscal
318 year to another eligible taxpayer as approved by the department
319 if the taxpayer receives notice from the department that the
320 rescindment has been accepted by the department. Any amount
321 rescinded under this paragraph shall become available to an
322 eligible taxpayer on a first-come, first-served basis based on
323 tax credit applications received after the date the rescindment
324 is accepted by the department.
325 (f) Within 10 days after approving or denying the
326 conveyance, transfer, or assignment of a tax credit under
327 paragraph (d), or the rescindment of a tax credit under
328 paragraph (e), the department shall provide a copy of its
329 approval or denial letter to the eligible person specified by
330 the taxpayer. The department shall also include the eligible
331 person specified by the taxpayer on all letters or
332 correspondence of acknowledgment for tax credits under s.
333 212.1835.
334 (g) For purposes of calculating the underpayment of
335 estimated corporate income taxes pursuant to s. 220.34 and tax
336 installment payments for taxes on insurance premiums or
337 assessments under s. 624.5092, the final amount due is the
338 amount after credits earned under s. 220.1877 or s. 624.51057
339 for contributions to eligible persons are deducted.
340 1. For purposes of determining if a penalty or interest
341 shall be imposed for underpayment of estimated corporate income
342 tax pursuant to s. 220.34(2)(d)1., a taxpayer may, after earning
343 a credit under s. 220.1877, reduce the estimated payment in that
344 taxable year by the amount of the credit.
345 2. For purposes of determining if a penalty under s.
346 624.5092 shall be imposed, an insurer may, after earning a
347 credit under s. 624.51057, reduce the following installment
348 payment of 27 percent of the amount of the net tax due as
349 reported on the return for the preceding year under s.
350 624.5092(2)(b) by the amount of the credit. This subparagraph
351 applies to contributions made on or after July 1, 2020.
352 (5) OBLIGATIONS OF ELIGIBLE MICROFINANCING ORGANIZATIONS.
353 An eligible microfinancing organization:
354 (a) Must comply with the following background check
355 requirements:
356 1. The owner or operator, before employing others or
357 engaging to provide services, is subject to level 2 background
358 screening as provided under chapter 435. The fingerprints for
359 the background screening must be electronically submitted to the
360 Department of Law Enforcement and can be taken by an authorized
361 law enforcement agency or by an employee of the eligible
362 microfinancing organization or a private company who is trained
363 to take fingerprints. The results of the state and national
364 criminal history check shall be provided to the Department of
365 Management Services for screening under chapter 435.
366 2. Fingerprints submitted to the Department of Law
367 Enforcement as required by this paragraph must be retained by
368 the Department of Law Enforcement in a manner approved by rule
369 and entered in the statewide automated biometric identification
370 system authorized by s. 943.05(2)(b). The fingerprints must
371 thereafter be available for all purposes and uses authorized for
372 arrest fingerprints entered in the statewide automated biometric
373 identification system pursuant to s. 943.051.
374 3. The Department of Law Enforcement shall search all
375 arrest fingerprints received under s. 943.051 against the
376 fingerprints retained in the statewide automated biometric
377 identification system under subparagraph 2. Any arrest record
378 that is identified with an owner’s or operator’s fingerprints
379 must be reported to the Department of Management Services. The
380 Department of Management Services shall participate in this
381 search process by paying an annual fee to the Department of Law
382 Enforcement and by informing the Department of Law Enforcement
383 of any change in the employment, engagement, or association
384 status of the owners or operators whose fingerprints are
385 retained under subparagraph 2. The Department of Law Enforcement
386 shall adopt a rule setting the amount of the annual fee to be
387 imposed upon the Department of Management Services for
388 performing these services and establishing the procedures for
389 the retention of owner and operator fingerprints and the
390 dissemination of search results. The fee may be borne by the
391 owner or operator.
392 4. An eligible microfinancing organization whose owner or
393 operator fails the level 2 background screening is not eligible
394 to provide small business financing to an eligible person under
395 this section.
396 5. An eligible microfinancing organization whose owner or
397 operator in the last 7 years has filed for personal bankruptcy
398 or corporate bankruptcy in a corporation of which he or she
399 owned more than 20 percent shall not be eligible to provide
400 small business financing under this section.
401 6. In addition to the offenses listed in s. 435.04, an
402 owner or operator who is required to undergo background
403 screening pursuant to this part or authorizing statutes must not
404 have an arrest awaiting final disposition for, must not have
405 been found guilty of, or entered a plea of nolo contendere to,
406 regardless of adjudication, and must not have been adjudicated
407 delinquent, and the record must not have been sealed or expunged
408 for, any of the following offenses or any similar offense of
409 another jurisdiction:
410 a. Any authorizing statutes, if the offense was a felony.
411 b. This chapter, if the offense was a felony.
412 c. Section 817.034, relating to fraudulent acts through
413 mail, wire, radio, electromagnetic, photoelectronic, or
414 photooptical systems.
415 d. Section 817.234, relating to false and fraudulent
416 insurance claims.
417 e. Section 817.568, relating to criminal use of personal
418 identification information.
419 f. Section 817.60, relating to obtaining a credit card
420 through fraudulent means.
421 g. Section 817.61, relating to fraudulent use of credit
422 cards, if the offense was a felony.
423 h. Section 831.01, relating to forgery.
424 i. Section 831.02, relating to uttering forged instruments.
425 j. Section 831.07, relating to forging bank bills, checks,
426 drafts, or promissory notes.
427 k. Section 831.09, relating to uttering forged bank bills,
428 checks, drafts, or promissory notes.
429 l. Section 831.30, relating to fraud in obtaining medicinal
430 drugs.
431 m. Section 831.31, relating to the sale, manufacture,
432 delivery, or possession with the intent to sell, manufacture, or
433 deliver any counterfeit controlled substance, if the offense was
434 a felony.
435 (b) Must provide small business financing from eligible
436 contributions to eligible persons for opening or expanding a
437 small business.
438 (c) Must provide microfinancing to an eligible person to
439 open or expand a small business on a first-come, first-served
440 basis.
441 (d) May not restrict or reserve small business financing to
442 particular areas of this state or provide small business
443 financing to a close relative, as that term is defined in s.
444 381.986, of an owner or operator.
445 (e)1. May use up to 3 percent of eligible contributions
446 received during the year in which such contributions are
447 collected for administrative expenses if the organization has
448 operated as an eligible microfinancing organization for at least
449 the preceding 3 fiscal years and did not have any findings of
450 material weakness or material noncompliance in its most recent
451 audit. Such administrative expenses must be reasonable and
452 necessary for the organization’s management and distribution of
453 eligible contributions under this section. Funds authorized
454 under this subparagraph may not be used for lobbying or
455 political activity or expenses related to lobbying or political
456 activity. Up to one-third of the funds authorized for
457 administrative expenses under this subparagraph may be used for
458 expenses related to the recruitment of contributions from
459 taxpayers. An eligible microfinancing organization may not
460 charge an application fee.
461 2. Must expend for annual or partial-year small business
462 financing an amount equal to or greater than 75 percent of the
463 net eligible contributions remaining after administrative
464 expenses during the state fiscal year in which such
465 contributions are collected. No more than 25 percent of such net
466 eligible contributions may be carried forward to the following
467 state fiscal year. Any amounts carried forward shall be expended
468 for annual or partial-year small business financing in the
469 following state fiscal year. Net eligible contributions
470 remaining on June 30 of each year that are in excess of the 25
471 percent that may be carried forward shall be transferred to
472 other eligible microfinancing organizations to provide small
473 business financing for eligible persons. All transferred funds
474 must be deposited by each eligible microfinancing organization
475 receiving such funds into its microfinancing account. All
476 transferred amounts received by any eligible microfinancing
477 organization must be separately disclosed in the annual
478 financial audit required under paragraph (g).
479 3. Must annually document the inability of the recipient of
480 microfinancing to refinance the outstanding loan amount provided
481 by the microfinancing organization through the financing with
482 traditional banks or financial institutions.
483 (f) With the prior approval of the Department of Management
484 Services, may transfer funds to another eligible microfinancing
485 organization if additional funds are required to meet
486 microfinancing demand at the receiving microfinancing
487 organization. A transfer is limited to the greater of $10,000 or
488 20 percent of the total contributions received by the
489 microfinancing organization making the transfer. All transferred
490 funds must be deposited by the receiving microfinancing
491 organization into its microfinancing accounts. All transferred
492 amounts received by any microfinancing organization must be
493 separately disclosed in the annual financial and compliance
494 audit required in this section.
495 (g) Must provide to the Auditor General and the Department
496 of Management Services a report on the results of an annual
497 financial audit of its accounts and records conducted by an
498 independent certified public accountant in accordance with
499 auditing standards generally accepted in the United States,
500 government auditing standards, and rules promulgated by the
501 Auditor General. The audit report must include a report on
502 financial statements presented in accordance with generally
503 accepted accounting principles. Audit reports must be provided
504 to the Auditor General and the Department of Management Services
505 by June 1. The Auditor General shall review all audit reports
506 submitted pursuant to this paragraph. The Auditor General shall
507 request any significant items that were omitted in violation of
508 a rule adopted by the Auditor General. The items must be
509 provided within 45 days after the date of the request. If the
510 microfinancing funding organization does not comply with the
511 Auditor General’s request, the Auditor General shall notify the
512 Legislative Auditing Committee.
513 (h) Must prepare and submit quarterly reports to the
514 Department of Management Services pursuant to paragraph (7)(g).
515 In addition, the council must submit in a timely manner any
516 information requested by the Department of Management Services
517 relating to the microfinancing program.
518 (i) Must provide to the Auditor General any information or
519 documentation requested in connection with an operational audit
520 of a microfinancing funding organization conducted pursuant to
521 s. 11.45.
522
523 Information and documentation provided to the Department of
524 Management Services and the Auditor General relating to the
525 identity of a taxpayer who provides an eligible contribution
526 under this section shall remain confidential at all times in
527 accordance with s. 213.053.
528 (6) ELIGIBLE PERSON RESPONSIBILITIES FOR MICROFINANCING
529 PROGRAM PARTICIPATION.—
530 (a) The eligible person must provide written documentation
531 including the information specified by the council concerning
532 the small business which an eligible person will open or expand.
533 At a minimum, the documentation must provide the eligible
534 person’s financial plan for the new or expanded small business
535 that demonstrates sufficient funds, after microfinancing, will
536 exist to operate throughout the year.
537 (b) The eligible person must inform the council and the
538 eligible microfinancing organization which provided financing to
539 the eligible person if the person will not open, or will close
540 or contract, the size of the small business.
541 (7) COUNCIL OBLIGATIONS.—The council shall:
542 (a) Annually submit to the department, by March 1, a list
543 of eligible microfinancing organizations that meet the
544 requirements of paragraph (2)(f).
545 (b) Establish a process to certify eligible persons and
546 maintain a direct certification list accessible by eligible
547 microfinancing organizations.
548 (c) Annually, by March 1, submit to the Department of
549 Management Services, a report that includes:
550 1. The number of eligible persons who completed
551 applications, by county.
552 2. The number of eligible persons who were approved for
553 small business financing, by county.
554 3. The number of eligible persons who received funding for
555 small business financing, based on information provided by each
556 eligible microfinancing organization.
557 4. The amount of funds received, the amount of funds
558 distributed in small business financing, and an accounting of
559 remaining funds and the obligation of those funds.
560 5. A detailed accounting of how each eligible organization
561 spent the administrative funds allowable under paragraph (5)(e).
562 (d) Annually verify the eligibility of expenditures for
563 eligible persons using the audit required by paragraph (5)(g).
564 (e) Notify an eligible microfinancing organization of any
565 of the organization’s identified eligible persons who are
566 receiving small business microfinancing through traditional
567 banks or financial institutions.
568 (f) Notify an eligible microfinancing organization of any
569 of the organization’s identified eligible persons who are
570 receiving small business microfinancing from other eligible
571 microfinancing organizations.
572 (g) Require quarterly reports by an eligible microfinancing
573 organization regarding the number of eligible persons
574 participating in the small business microfinancing program, the
575 locations of the small businesses, and other information deemed
576 necessary by the Department of Management Services.
577 (8) MICROFINANCING AMOUNT AND PAYMENT.—
578 (a) The microfinancing amount provided to any eligible
579 person by an eligible microfinancing organization shall be for
580 any amounts as determined by the microfinancing organization but
581 in any event, not less than $500 or more than $5,000.
582 (b) An eligible microfinancing organization shall obtain
583 verification from the eligible person of his or her opening or
584 expanding a small business within the date specified in
585 documents provided to the council and the continued viability of
586 the small business, for each period covered by a microfinancing
587 payment.
588 (9) DEPOSITS OF ELIGIBLE CONTRIBUTIONS.—All eligible
589 contributions received by an eligible microfinancing
590 organization shall be deposited in a manner consistent with s.
591 17.57(2).
592 (10) PRESERVATION OF CREDIT.—If any provision or portion of
593 this section, s. 211.0255, s. 212.1835, s. 220.1877, s.
594 561.1215, or s. 624.51057 or the application thereof to any
595 person or circumstance is held unconstitutional by any court or
596 is otherwise declared invalid, the unconstitutionality or
597 invalidity shall not affect any credit earned under s. 211.0255,
598 s. 212.1835, s. 220.1877, s. 561.1215, or s. 624.51057 by any
599 taxpayer with respect to any contribution paid to an eligible
600 microfinancing organization before the date of a determination
601 of unconstitutionality or invalidity. Such credit shall be
602 allowed at such time and in such a manner as if a determination
603 of unconstitutionality or invalidity had not been made, provided
604 that nothing in this subsection by itself or in combination with
605 any other provision of law shall result in the allowance of any
606 credit to any taxpayer in excess of 1 dollar of credit for each
607 dollar paid to an eligible microfinancing organization.
608 (11) MICROFINANCING ORGANIZATIONS; APPLICATION.—In order to
609 participate in the microfinancing program created under this
610 section, a charitable organization that seeks to be a
611 microfinancing organization must submit an application for
612 initial approval or renewal to the council no later than
613 September 1 of each year in which the organization intends to
614 offer small business financing.
615 (a) An application for initial approval must include:
616 1. A copy of the organization’s incorporation documents and
617 registration with the Division of Corporations of the Department
618 of State.
619 2. A copy of the organization’s Internal Revenue Service
620 determination letter as a s. 501(c)(3) not-for-profit
621 organization.
622 3. A description of the organization’s financial plan that
623 demonstrates sufficient funds to operate throughout the year.
624 4. A description of the geographic region that the
625 organization intends to serve and an analysis of the demand and
626 unmet need for eligible persons in that area.
627 5. The organization’s organizational chart.
628 6. A description of the criteria and methodology that the
629 organization will use to determine microfinancing amounts for
630 each eligible person who will receive financing by the
631 organization.
632 7. A description of the application process, including
633 deadlines and any associated fees.
634 8. A description of the deadlines for microfinancing
635 payments.
636 9. The organization’s completed Internal Revenue Service
637 Form 990 submitted no later than November 30 of the year before
638 the year that the organization intends to offer the small
639 business financing.
640 10. A copy of the organization’s statutorily required audit
641 to the Department of Management Services and the Auditor
642 General.
643 (b) In consultation with the Department of Management
644 Services, the council shall review the application. The council
645 shall notify the organization in writing of any deficiencies
646 within 30 days after receipt of an application and allow the
647 organization 30 days to correct any deficiencies.
648 (c) Within 30 days after receipt of the finalized
649 application, the council must either approve or disapprove the
650 application. If the council disapproves the organization’s
651 application, it shall provide the organization with a written
652 explanation of that determination. The council’s action is not
653 subject to chapter 120.
654 (d) All remaining funds held by a microfinancing
655 organization that is disapproved for participation must be
656 transferred to other eligible microfinancing organizations to
657 provide small business financing for eligible persons. All
658 transferred funds must be deposited by each eligible
659 microfinancing organization receiving such funds into its
660 microfinancing account. All transferred amounts received by any
661 eligible microfinancing organization must be separately
662 disclosed in the annual financial audit required under paragraph
663 (5)(g).
664 (e) A microfinancing organization is a renewing
665 organization if it maintains continuous approval and
666 participation in the program. An organization that chooses not
667 to participate for 1 year or more or is disapproved to
668 participate for 1 year or more must submit an application for
669 initial approval in order to participate in the program again.
670 (12) ADMINISTRATION; RULES.—
671 (a) The department, the Department of Management Services,
672 and the council shall develop a cooperative agreement to assist
673 in the administration of this section.
674 (b) The department shall adopt rules necessary to
675 administer this section and ss. 211.0255, 212.1835, 220.1877,
676 561.1215, and 624.51057, including rules establishing
677 application forms, procedures governing the approval of tax
678 credits and carryforward tax credits under subsection (4), and
679 procedures to be followed by taxpayers when claiming approved
680 tax credits on their returns.
681 (c) The Department of Management Services, in coordination
682 with the council, shall adopt rules to administer the
683 responsibilities of the Department of Management Services and
684 the council under this section. The rules shall provide
685 guidelines for receiving, reviewing, and approving applications
686 for new and renewing microfinancing organizations. The rules
687 must include a process for compiling input and recommendations
688 from the Department of Revenue and the Department of Management
689 Services. The rules must require that the microfinancing
690 organization make a brief presentation to assist the council in
691 its decision.
692 Section 3. Section 211.0255, Florida Statutes, is created
693 to read:
694 211.0255 Credit for contributions to eligible
695 microfinancing organizations.—There is allowed a credit of 100
696 percent of an eligible contribution made to an eligible
697 microfinancing organization under s. 287.09475 against any tax
698 due under s. 211.02 or s. 211.025. However, a credit allowed
699 under this section may not exceed 50 percent of the tax due on
700 the return the credit is taken. For purposes of the
701 distributions of tax revenue under s. 211.06, the department
702 shall disregard any tax credits allowed under this section to
703 ensure that any reduction in tax revenue received which is
704 attributable to the tax credits results only in a reduction in
705 distributions to the General Revenue Fund. The provisions of s.
706 287.09475 apply to the credit authorized by this section.
707 Section 4. Section 212.1835, Florida Statutes, is created
708 to read:
709 212.1835 Credit for contributions to eligible
710 microfinancing organizations.—There is allowed a credit of 100
711 percent of an eligible contribution made to an eligible
712 microfinancing organization under s. 287.09475 against any tax
713 imposed by the state and due under this chapter from a direct
714 pay permitholder as a result of the direct pay permit held
715 pursuant to s. 212.183. For purposes of the dealer’s credit
716 granted for keeping prescribed records, filing timely tax
717 returns, and properly accounting and remitting taxes under s.
718 212.12, the amount of tax due used to calculate the credit shall
719 include any eligible contribution made to an eligible
720 microfinancing organization from a direct pay permitholder. For
721 purposes of the distributions of tax revenue under s. 212.20,
722 the department shall disregard any tax credits allowed under
723 this section to ensure that any reduction in tax revenue
724 received that is attributable to the tax credits results only in
725 a reduction in distributions to the General Revenue Fund. The
726 provisions of s. 287.09475 apply to the credit authorized by
727 this section.
728 Section 5. Paragraph (a) of subsection (1) of section
729 220.13, Florida Statutes, is amended to read:
730 220.13 “Adjusted federal income” defined.—
731 (1) The term “adjusted federal income” means an amount
732 equal to the taxpayer’s taxable income as defined in subsection
733 (2), or such taxable income of more than one taxpayer as
734 provided in s. 220.131, for the taxable year, adjusted as
735 follows:
736 (a) Additions.—There shall be added to such taxable income:
737 1.a. The amount of any tax upon or measured by income,
738 excluding taxes based on gross receipts or revenues, paid or
739 accrued as a liability to the District of Columbia or any state
740 of the United States which is deductible from gross income in
741 the computation of taxable income for the taxable year.
742 b. Notwithstanding sub-subparagraph a., if a credit taken
743 under s. 220.1875 or s. 220.1877 is added to taxable income in a
744 previous taxable year under subparagraph 11. and is taken as a
745 deduction for federal tax purposes in the current taxable year,
746 the amount of the deduction allowed shall not be added to
747 taxable income in the current year. The exception in this sub
748 subparagraph is intended to ensure that the credit under s.
749 220.1875 or s. 220.1877 is added in the applicable taxable year
750 and does not result in a duplicate addition in a subsequent
751 year.
752 2. The amount of interest which is excluded from taxable
753 income under s. 103(a) of the Internal Revenue Code or any other
754 federal law, less the associated expenses disallowed in the
755 computation of taxable income under s. 265 of the Internal
756 Revenue Code or any other law, excluding 60 percent of any
757 amounts included in alternative minimum taxable income, as
758 defined in s. 55(b)(2) of the Internal Revenue Code, if the
759 taxpayer pays tax under s. 220.11(3).
760 3. In the case of a regulated investment company or real
761 estate investment trust, an amount equal to the excess of the
762 net long-term capital gain for the taxable year over the amount
763 of the capital gain dividends attributable to the taxable year.
764 4. That portion of the wages or salaries paid or incurred
765 for the taxable year which is equal to the amount of the credit
766 allowable for the taxable year under s. 220.181. This
767 subparagraph shall expire on the date specified in s. 290.016
768 for the expiration of the Florida Enterprise Zone Act.
769 5. That portion of the ad valorem school taxes paid or
770 incurred for the taxable year which is equal to the amount of
771 the credit allowable for the taxable year under s. 220.182. This
772 subparagraph shall expire on the date specified in s. 290.016
773 for the expiration of the Florida Enterprise Zone Act.
774 6. The amount taken as a credit under s. 220.195 which is
775 deductible from gross income in the computation of taxable
776 income for the taxable year.
777 7. That portion of assessments to fund a guaranty
778 association incurred for the taxable year which is equal to the
779 amount of the credit allowable for the taxable year.
780 8. In the case of a nonprofit corporation which holds a
781 pari-mutuel permit and which is exempt from federal income tax
782 as a farmers’ cooperative, an amount equal to the excess of the
783 gross income attributable to the pari-mutuel operations over the
784 attributable expenses for the taxable year.
785 9. The amount taken as a credit for the taxable year under
786 s. 220.1895.
787 10. Up to nine percent of the eligible basis of any
788 designated project which is equal to the credit allowable for
789 the taxable year under s. 220.185.
790 11. The amount taken as a credit for the taxable year under
791 s. 220.1875. The addition in this subparagraph is intended to
792 ensure that the same amount is not allowed for the tax purposes
793 of this state as both a deduction from income and a credit
794 against the tax. This addition is not intended to result in
795 adding the same expense back to income more than once.
796 12. The amount taken as a credit for the taxable year under
797 s. 220.192.
798 13. The amount taken as a credit for the taxable year under
799 s. 220.193.
800 14. Any portion of a qualified investment, as defined in s.
801 288.9913, which is claimed as a deduction by the taxpayer and
802 taken as a credit against income tax pursuant to s. 288.9916.
803 15. The costs to acquire a tax credit pursuant to s.
804 288.1254(5) that are deducted from or otherwise reduce federal
805 taxable income for the taxable year.
806 16. The amount taken as a credit for the taxable year
807 pursuant to s. 220.194.
808 17. The amount taken as a credit for the taxable year under
809 s. 220.196. The addition in this subparagraph is intended to
810 ensure that the same amount is not allowed for the tax purposes
811 of this state as both a deduction from income and a credit
812 against the tax. The addition is not intended to result in
813 adding the same expense back to income more than once.
814 18. The amount taken as a credit for the taxable year under
815 s. 220.1877. The addition in this subparagraph is intended to
816 ensure that the same amount is not allowed for the tax purposes
817 of this state as both a deduction from income and a credit
818 against the tax. This addition is not intended to result in
819 adding the same expense back to income more than once.
820 Section 6. Section 220.1877, Florida Statutes, is created
821 to read:
822 220.1877 Credit for contributions to eligible
823 microfinancing organizations.—
824 (1) There is allowed a credit of 100 percent of an eligible
825 contribution made to an eligible microfinancing organization
826 under s. 287.09475 against any tax due for a taxable year under
827 this chapter after the application of any other allowable
828 credits by the taxpayer. An eligible contribution must be made
829 to an eligible microfinancing organization on or before the date
830 the taxpayer is required to file a return pursuant to s.
831 220.222. The credit granted by this section shall be reduced by
832 the difference between the amount of federal corporate income
833 tax taking into account the credit granted by this section and
834 the amount of federal corporate income tax without application
835 of the credit granted by this section.
836 (2) A taxpayer who files a Florida consolidated return as a
837 member of an affiliated group pursuant to s. 220.131(1) may be
838 allowed the credit on a consolidated return basis; however, the
839 total credit taken by the affiliated group is subject to the
840 limitation established under subsection (1).
841 (3) The provisions of s. 287.09475 apply to the credit
842 authorized by this section.
843 (4) If a taxpayer applies and is approved for a credit
844 under s. 287.09475 after timely requesting an extension to file
845 under s. 220.222(2):
846 (a) The credit does not reduce the amount of tax due for
847 purposes of the department’s determination as to whether the
848 taxpayer was in compliance with the requirement to pay tentative
849 taxes under ss. 220.222 and 220.32.
850 (b) The taxpayer’s noncompliance with the requirement to
851 pay tentative taxes shall result in the revocation and
852 rescindment of any such credit.
853 (c) The taxpayer shall be assessed for any taxes,
854 penalties, or interest due from the taxpayer’s noncompliance
855 with the requirement to pay tentative taxes.
856 Section 7. Section 561.1215, Florida Statutes, is created
857 to read:
858 561.1215 Credit for contributions to eligible
859 microfinancing organizations.—There is allowed a credit of 100
860 percent of an eligible contribution made to an eligible
861 microfinancing organization under s. 287.09475 against any tax
862 due under s. 563.05, s. 564.06, or s. 565.12, except excise
863 taxes imposed on wine produced by manufacturers in this state
864 from products grown in this state. However, a credit allowed
865 under this section may not exceed 90 percent of the tax due on
866 the return the credit is taken. For purposes of the
867 distributions of tax revenue under ss. 561.121 and 564.06(10),
868 the division shall disregard any tax credits allowed under this
869 section to ensure that any reduction in tax revenue received
870 that is attributable to the tax credits results only in a
871 reduction in distributions to the General Revenue Fund. The
872 provisions of s. 287.09475 apply to the credit authorized by
873 this section.
874 Section 8. Section 624.51057, Florida Statutes, is created
875 to read:
876 624.51057 Credit for contributions to eligible
877 microfinancing organizations.—
878 (1) There is allowed a credit of 100 percent of an eligible
879 contribution made to an eligible microfinancing organization
880 under s. 287.09475 against any tax due for a taxable year under
881 s. 624.509(1) after deducting from such tax deductions for
882 assessments made pursuant to s. 440.51; credits for taxes paid
883 under ss. 175.101 and 185.08; credits for income taxes paid
884 under chapter 220; and the credit allowed under s. 624.509(5),
885 as such credit is limited by s. 624.509(6). An insurer claiming
886 a credit against premium tax liability under this section is not
887 required to pay any additional retaliatory tax levied pursuant
888 to s. 624.5091 as a result of claiming such credit. Section
889 624.5091 does not limit such credit in any manner.
890 (2) The provisions of s. 287.09475 apply to the credit
891 authorized by this section.
892 Section 9. The amendments made by this act to ss. 220.13,
893 220.1877, and 287.09475, Florida Statutes, apply to taxable
894 years beginning on or after January 1, 2020.
895 Section 10. This act shall take effect upon becoming a law.