Florida Senate - 2019                              CS for SB 250
       
       
        
       By the Committee on Community Affairs; and Senator Flores
       
       
       
       
       
       578-02366-19                                           2019250c1
    1                        A bill to be entitled                      
    2         An act relating to state housing tax credits; amending
    3         s. 213.053, F.S.; authorizing the Department of
    4         Revenue to provide information on taken state
    5         workforce housing tax credits to the Florida Housing
    6         Finance Corporation; amending ss. 220.02 and 220.13,
    7         F.S.; conforming provisions to changes made by the
    8         act; repealing s. 220.185, F.S., relating to the state
    9         housing tax credit; amending s. 420.502, F.S.;
   10         providing legislative intent; amending s. 420.503,
   11         F.S.; defining the term “essential services
   12         personnel”; conforming a cross-reference; amending s.
   13         420.5093, F.S.; replacing provisions relating to the
   14         State Housing Tax Credit Program with provisions
   15         relating to the State Workforce Housing Tax Credit
   16         Program; providing the purpose of the program;
   17         providing for an insurance premium and retaliatory tax
   18         credit to certain workforce housing developments;
   19         requiring the corporation to administer the program;
   20         specifying requirements, procedures, and authorized
   21         actions of the corporation in determining eligibility
   22         for, and awarding, tax credits; defining terms;
   23         requiring the corporation to prepare a certain plan;
   24         authorizing the corporation to adopt rules; requiring
   25         the corporation to establish specified procedures for
   26         agency awards; specifying application requirements;
   27         specifying limits on, and criteria for determining,
   28         final agency awards; specifying requirements for cost
   29         certifications and eligibility statements; requiring
   30         the executive director of the Department of Revenue to
   31         apply annual credit amounts to tax liabilities in a
   32         certain manner; requiring that an extended workforce
   33         housing commitment be in effect, under certain
   34         circumstances, for a certain tax credit to be allowed;
   35         defining the term “extended workforce housing
   36         commitment”; requiring the corporation to establish
   37         certain procedures; amending s. 624.509, F.S.;
   38         specifying the order in which certain credits must be
   39         taken against the premium tax; creating s. 624.51056,
   40         F.S.; authorizing certain taxpayers to claim a credit
   41         against the premium tax and retaliatory tax;
   42         specifying a limitation on claiming the credit;
   43         providing requirements for the eligibility statement;
   44         requiring the corporation to make preliminary agency
   45         awards in certain years; specifying the limit on such
   46         awards; authorizing certain owners of eligible
   47         workforce housing developments to distribute credit
   48         amounts among its constituent taxpayers; specifying
   49         requirements for such owners; providing for the
   50         carryforward of unused tax credits for a specified
   51         period; providing that unused credits may not be
   52         refunded; providing that certain insurers are not
   53         required to pay additional retaliatory tax; specifying
   54         requirements and procedures for credit recapture;
   55         providing applicability; reenacting s. 624.5091(1)(a),
   56         F.S., relating to the retaliatory tax, to incorporate
   57         the amendment made to s. 624.509, F.S., in a reference
   58         thereto; providing an effective date.
   59          
   60  Be It Enacted by the Legislature of the State of Florida:
   61  
   62         Section 1. Paragraph (cc) is added to subsection (8) of
   63  section 213.053, Florida Statutes, to read:
   64         213.053 Confidentiality and information sharing.—
   65         (8) Notwithstanding any other provision of this section,
   66  the department may provide:
   67         (cc) Information relating to tax credits taken under s.
   68  624.51056 to the Florida Housing Finance Corporation.
   69  
   70  Disclosure of information under this subsection shall be
   71  pursuant to a written agreement between the executive director
   72  and the agency. Such agencies, governmental or nongovernmental,
   73  shall be bound by the same requirements of confidentiality as
   74  the Department of Revenue. Breach of confidentiality is a
   75  misdemeanor of the first degree, punishable as provided by s.
   76  775.082 or s. 775.083.
   77         Section 2. Subsection (8) of section 220.02, Florida
   78  Statutes, is amended to read:
   79         220.02 Legislative intent.—
   80         (8) It is the intent of the Legislature that credits
   81  against either the corporate income tax or the franchise tax be
   82  applied in the following order: those enumerated in s. 631.828,
   83  those enumerated in s. 220.191, those enumerated in s. 220.181,
   84  those enumerated in s. 220.183, those enumerated in s. 220.182,
   85  those enumerated in s. 220.1895, those enumerated in s. 220.195,
   86  those enumerated in s. 220.184, those enumerated in s. 220.186,
   87  those enumerated in s. 220.1845, those enumerated in s. 220.19,
   88  those enumerated in s. 220.185, those enumerated in s. 220.1875,
   89  those enumerated in s. 220.192, those enumerated in s. 220.193,
   90  those enumerated in s. 288.9916, those enumerated in s.
   91  220.1899, those enumerated in s. 220.194, and those enumerated
   92  in s. 220.196.
   93         Section 3. Paragraph (a) of subsection (1) of section
   94  220.13, Florida Statutes, is amended to read:
   95         220.13 “Adjusted federal income” defined.—
   96         (1) The term “adjusted federal income” means an amount
   97  equal to the taxpayer’s taxable income as defined in subsection
   98  (2), or such taxable income of more than one taxpayer as
   99  provided in s. 220.131, for the taxable year, adjusted as
  100  follows:
  101         (a) Additions.—There shall be added to such taxable income:
  102         1.a. The amount of any tax upon or measured by income,
  103  excluding taxes based on gross receipts or revenues, paid or
  104  accrued as a liability to the District of Columbia or any state
  105  of the United States which is deductible from gross income in
  106  the computation of taxable income for the taxable year.
  107         b. Notwithstanding sub-subparagraph a., if a credit taken
  108  under s. 220.1875 is added to taxable income in a previous
  109  taxable year under subparagraph 10. 11. and is taken as a
  110  deduction for federal tax purposes in the current taxable year,
  111  the amount of the deduction allowed shall not be added to
  112  taxable income in the current year. The exception in this sub
  113  subparagraph is intended to ensure that the credit under s.
  114  220.1875 is added in the applicable taxable year and does not
  115  result in a duplicate addition in a subsequent year.
  116         2. The amount of interest which is excluded from taxable
  117  income under s. 103(a) of the Internal Revenue Code or any other
  118  federal law, less the associated expenses disallowed in the
  119  computation of taxable income under s. 265 of the Internal
  120  Revenue Code or any other law, excluding 60 percent of any
  121  amounts included in alternative minimum taxable income, as
  122  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  123  taxpayer pays tax under s. 220.11(3).
  124         3. In the case of a regulated investment company or real
  125  estate investment trust, an amount equal to the excess of the
  126  net long-term capital gain for the taxable year over the amount
  127  of the capital gain dividends attributable to the taxable year.
  128         4. That portion of the wages or salaries paid or incurred
  129  for the taxable year which is equal to the amount of the credit
  130  allowable for the taxable year under s. 220.181. This
  131  subparagraph shall expire on the date specified in s. 290.016
  132  for the expiration of the Florida Enterprise Zone Act.
  133         5. That portion of the ad valorem school taxes paid or
  134  incurred for the taxable year which is equal to the amount of
  135  the credit allowable for the taxable year under s. 220.182. This
  136  subparagraph shall expire on the date specified in s. 290.016
  137  for the expiration of the Florida Enterprise Zone Act.
  138         6. The amount taken as a credit under s. 220.195 which is
  139  deductible from gross income in the computation of taxable
  140  income for the taxable year.
  141         7. That portion of assessments to fund a guaranty
  142  association incurred for the taxable year which is equal to the
  143  amount of the credit allowable for the taxable year.
  144         8. In the case of a nonprofit corporation which holds a
  145  pari-mutuel permit and which is exempt from federal income tax
  146  as a farmers’ cooperative, an amount equal to the excess of the
  147  gross income attributable to the pari-mutuel operations over the
  148  attributable expenses for the taxable year.
  149         9. The amount taken as a credit for the taxable year under
  150  s. 220.1895.
  151         10. Up to nine percent of the eligible basis of any
  152  designated project which is equal to the credit allowable for
  153  the taxable year under s. 220.185.
  154         10.11. The amount taken as a credit for the taxable year
  155  under s. 220.1875. The addition in this subparagraph is intended
  156  to ensure that the same amount is not allowed for the tax
  157  purposes of this state as both a deduction from income and a
  158  credit against the tax. This addition is not intended to result
  159  in adding the same expense back to income more than once.
  160         11.12. The amount taken as a credit for the taxable year
  161  under s. 220.192.
  162         12.13. The amount taken as a credit for the taxable year
  163  under s. 220.193.
  164         13.14. Any portion of a qualified investment, as defined in
  165  s. 288.9913, which is claimed as a deduction by the taxpayer and
  166  taken as a credit against income tax pursuant to s. 288.9916.
  167         14.15. The costs to acquire a tax credit pursuant to s.
  168  288.1254(5) that are deducted from or otherwise reduce federal
  169  taxable income for the taxable year.
  170         15.16. The amount taken as a credit for the taxable year
  171  pursuant to s. 220.194.
  172         16.17. The amount taken as a credit for the taxable year
  173  under s. 220.196. The addition in this subparagraph is intended
  174  to ensure that the same amount is not allowed for the tax
  175  purposes of this state as both a deduction from income and a
  176  credit against the tax. The addition is not intended to result
  177  in adding the same expense back to income more than once.
  178         Section 4. Section 220.185, Florida Statutes, is repealed.
  179         Section 5. Present subsections (5) through (8) of section
  180  420.502, Florida Statutes, are redesignated as subsections (6)
  181  through (9), respectively, and a new subsection (5) is added to
  182  that section, to read:
  183         420.502 Legislative findings.—It is hereby found and
  184  declared as follows:
  185         (5) It is necessary to create a state housing finance
  186  strategy to provide affordable workforce housing opportunities
  187  to essential services personnel. The lack of affordable
  188  workforce housing has been exacerbated by an increasing
  189  population, rising interest rates, surging median home values,
  190  and the shortage of lower-cost housing units. As this state’s
  191  population continues to grow, essential services personnel vital
  192  to this state’s economy are unable to live in the communities
  193  where they serve, creating transportation congestion and
  194  hindering their quality of life and community engagement.
  195         Section 6. Present subsections (18) through (42) of section
  196  420.503, Florida Statutes, are redesignated as subsections (19)
  197  through (43), respectively, a new subsection (18) is added to
  198  that section, and subsection (15) of that section is amended, to
  199  read:
  200         420.503 Definitions.—As used in this part, the term:
  201         (15) “Elderly” means persons 62 years of age or older;
  202  however, this definition does not prohibit housing from being
  203  deemed housing for the elderly as defined in subsection (20)
  204  (19) if such housing otherwise meets the requirements of
  205  subsection (20) (19).
  206         (18) “Essential services personnel” means natural persons
  207  or families whose total annual household income is at or below
  208  120 percent of the area median income, adjusted for household
  209  size, and at least one of whom is employed as police and fire
  210  personnel, child care workers, teachers and education personnel,
  211  health care personnel, or service workers.
  212         Section 7. Section 420.5093, Florida Statutes, is amended
  213  to read:
  214         420.5093 State Workforce Housing Tax Credit Program.—
  215         (1) There is created the State Workforce Housing Tax Credit
  216  Program for the purpose purposes of stimulating creative private
  217  sector initiatives to increase the supply of workforce
  218  affordable housing in this state. The corporation shall
  219  administer the program. Tax credits must be awarded through
  220  competitive solicitation and may be awarded in conjunction with
  221  other corporation financing, including low-income housing tax
  222  credits, SAIL funding, or tax-exempt bonds urban areas,
  223  including specifically housing for the elderly, and to provide
  224  associated commercial facilities associated with such housing
  225  facilities.
  226         (2) As used in this section, the term:
  227         (a) “Annual credit amount” means an amount equal to one
  228  tenth of a preliminary or final agency award to an eligible
  229  workforce housing development which may be claimed by the
  230  eligible workforce housing development in each year of the
  231  credit period.
  232         (b) “Applicable fraction” means a fraction, the numerator
  233  of which is the number of workforce housing units in the
  234  eligible workforce housing development and the denominator of
  235  which is the number of residential rental units in the eligible
  236  workforce housing development.
  237         (c) “Area median income” means the most recent calculation
  238  of median family income for the relevant geographic area as
  239  published by the United States Department of Housing and Urban
  240  Development.
  241         (d) “Compliance period” means, with respect to any building
  242  that is, or is part of, an eligible workforce housing
  243  development, the period of 10 calendar years beginning with the
  244  first calendar year of the credit period.
  245         (e) “Credit period” means, with respect to any building
  246  that is, or is part of, an eligible workforce housing
  247  development, the period of 10 calendar years beginning with the
  248  calendar year in which each eligible workforce housing
  249  residential building is placed in service.
  250         (f) “Eligibility statement” means a statement issued by the
  251  corporation which certifies that a workforce housing residential
  252  building is an eligible workforce housing development. A
  253  separate eligibility statement must be issued for each building
  254  in a multiple building project. Each eligibility statement must
  255  provide:
  256         1. The calendar year in which the workforce housing
  257  residential building in the eligible workforce housing
  258  development was placed in service;
  259         2. The credit amount of the final agency award to the
  260  eligible workforce housing building;
  261         3. The maximum qualified basis taken into account in
  262  determining the credit amount;
  263         4. Sufficient information to identify the eligible
  264  workforce housing building and the owner of the eligible
  265  workforce housing development; and
  266         5. Such other information as the corporation, in
  267  consultation with the Department of Revenue, determines is
  268  necessary or desirable.
  269         (g) “Eligible basis” of an eligible workforce housing
  270  development means the total of the adjusted basis of each
  271  building of such eligible workforce housing development as of
  272  the close of the first year of the credit period for each
  273  building.
  274         (h) “Eligible workforce housing development” means a
  275  building or group of buildings located in this state in which at
  276  least 60 percent of the residential units in the building are
  277  rent-restricted workforce housing units.
  278         (i) “Final agency award” means the allocation of a 10-year
  279  stream of state workforce housing tax credits to an eligible
  280  workforce housing development by the corporation, as stated on
  281  the eligibility statement or on an amended eligibility
  282  statement. A final agency award cannot exceed the preliminary
  283  agency award.
  284         (j) “Imputed income limitation applicable to the unit”
  285  means the income limitation that applies to individuals
  286  occupying the unit if the number of individuals occupying the
  287  unit is:
  288         1. In the case of a unit that does not have a separate
  289  bedroom, one; or
  290         2. In the case of a unit that has one or more separate
  291  bedrooms, one and one half for each separate bedroom.
  292         (k) “Preliminary agency award” means the allocation of a
  293  10-year stream of state workforce housing tax credits to an
  294  eligible workforce housing development by the corporation’s
  295  board of directors as part of a competitive solicitation
  296  process.
  297         (l) “Qualified basis” of an eligible workforce housing
  298  development means the eligible basis multiplied by the
  299  applicable fraction.
  300         (m) “Rent-restricted” means that the gross rent for a
  301  residential unit may not exceed 30 percent of the imputed income
  302  limitation applicable to the unit.
  303         (n) “Workforce housing unit” means a residential unit in an
  304  eligible workforce housing development which is affordable to
  305  natural persons or families whose total annual household income
  306  is at or below 90 percent of the area median income, adjusted
  307  for household size; or is at or below 120 percent of the area
  308  median income, adjusted for household size, in:
  309         1. Areas of critical state concern designated under s.
  310  380.05, for which the Legislature has declared its intent to
  311  provide affordable housing; and
  312         2. Areas that were designated as areas of critical state
  313  concern for at least 20 consecutive years before removal of the
  314  designation.
  315         (3)(2) The Florida Housing Finance corporation shall
  316  determine those qualified projects which workforce housing
  317  developments are shall be considered designated projects under
  318  s. 220.185 and eligible for the insurance premium tax credit
  319  under s. 624.51056 corporate tax credit under that section. The
  320  corporation may exercise all powers necessary to administer the
  321  awarding of a preliminary and final agency award and the
  322  distribution of the tax credits. The corporation shall ensure
  323  that at least 50 percent of annual credits under this section
  324  are awarded to units that will only be income-restricted to
  325  natural persons or families whose total annual household income
  326  is below 90 percent of the area median income establish
  327  procedures necessary for proper allocation and distribution of
  328  state housing tax credits, including the establishment of
  329  criteria for any single-family or commercial component of a
  330  project, and may exercise all powers necessary to administer the
  331  allocation of such credits. The board of directors of the
  332  corporation shall administer the allocation procedures and
  333  determine allocations on behalf of the corporation. The
  334  corporation shall prepare a an annual plan, which must be
  335  approved by the Governor, containing general guidelines for
  336  preliminary and final agency awards to eligible workforce
  337  housing developments the allocation and distribution of credits
  338  to designated projects.
  339         (4)(3)The corporation may adopt rules necessary to
  340  administer this section. The corporation shall establish adopt
  341  allocation procedures for agency awards consistent with s.
  342  624.51056 and this section which that will ensure the maximum
  343  use of available tax credits in order to encourage development
  344  of workforce low-income housing and associated mixed-use
  345  projects in urban areas, taking into consideration the
  346  timeliness of the application, the location of the proposed
  347  project, the relative need in the area of revitalization and
  348  low-income housing and the availability of such housing, the
  349  economic feasibility of the project, and the ability of the
  350  applicant to proceed to completion of the project in the
  351  calendar year for which the credit is sought. To the extent
  352  practicable, these procedures must be similar to or consistent
  353  with the procedures established under s. 42 of the Internal
  354  Revenue Code relating to low-income housing tax credits. To the
  355  extent permitted under 42 U.S.C. ss. 3601-3619 and regulations
  356  promulgated thereunder, the corporation shall ensure that
  357  projects awarded credits under this section set aside at least
  358  30 percent of their units to be rented by families with
  359  essential services personnel as defined in s. 420.503(18).
  360         (5)(a)(4)(a) A taxpayer wishing who wishes to participate
  361  in the State Workforce Housing Tax Credit Program must submit to
  362  the corporation an application for a preliminary agency award
  363  tax credit to the corporation. The application must shall
  364  identify the proposed workforce housing development project and
  365  its location and must include evidence that the proposed
  366  development project is an eligible workforce housing development
  367  a qualified project as defined in s. 220.185. The corporation
  368  may request any information from an applicant which is necessary
  369  to allow enable the corporation to make a preliminary or final
  370  agency award under tax credit allocations according to the
  371  guidelines set forth in subsection (3).
  372         (b) The final agency award may not exceed 9 percent of the
  373  qualified basis of each residential building in an eligible
  374  workforce housing development. The credit amount of the final
  375  agency award to any residential building in an eligible
  376  workforce housing development may not exceed the amount that the
  377  corporation determines is necessary for the eligible workforce
  378  housing development’s financial feasibility and its viability as
  379  an eligible workforce housing development throughout the credit
  380  period. In determining the final agency award, the corporation
  381  shall specify the qualified basis that may be taken into account
  382  under this section with respect to each residential building in
  383  the eligible workforce housing development The corporation’s
  384  approval of an applicant as a designated project shall be in
  385  writing and shall include a statement of the maximum credit
  386  allowable to the applicant. A copy of this approval shall be
  387  transmitted to the executive director of the Department of
  388  Revenue, who shall apply the tax credit to the tax liability of
  389  the applicant.
  390         (c) The corporation shall establish procedures for the
  391  owner of an eligible workforce housing development to provide a
  392  cost certification demonstrating that the final agency award
  393  does not exceed 9 percent of the qualified basis of each
  394  residential building in the eligible workforce housing
  395  development. Once such cost certification is accepted and
  396  approved by the corporation, the corporation shall issue to the
  397  owner of the eligible workforce housing development an
  398  eligibility statement for each residential building. The
  399  corporation shall transmit a copy of the eligibility statement
  400  to the executive director of the Department of Revenue, who
  401  shall apply the annual credit amount to the tax liability of the
  402  owner of the eligible workforce housing development or its
  403  constituent taxpayers as specified in s. 624.51056.
  404         (d) A tax credit in the amount of the annual credit amount
  405  is not allowed for any year with respect to a residential
  406  building in an eligible workforce housing development unless an
  407  extended workforce housing commitment is in effect as of the end
  408  of the calendar year. As used in this paragraph, the term
  409  “extended workforce housing commitment” means an agreement
  410  between the taxpayer and the Florida Housing Finance Corporation
  411  which is substantially similar to the agreement specified in 26
  412  U.S.C. s. 42(h)(6)(B).
  413         (6) The corporation shall establish such procedures as it
  414  deems necessary for monitoring an eligible workforce housing
  415  development’s compliance with this section, including
  416  habitability standards, and for notifying the executive director
  417  of the Department of Revenue of any noncompliance of which it
  418  becomes aware.
  419         (5) For purposes of implementing this program and assessing
  420  the property for ad valorem taxation under s. 193.011, neither
  421  the tax credits nor financing generated by tax credits shall be
  422  considered as income to the property, and the actual rental
  423  income from rent-restricted units in a state housing tax credit
  424  development shall be recognized by the property appraiser. In
  425  considering or using the market or cost approaches under s.
  426  193.011, neither the costs paid for by tax credits nor the costs
  427  paid for by additional financing proceeds received because the
  428  property is in the program shall be included in the valuation.
  429         (6) For the further purpose of implementing this program in
  430  Florida and in assessing the property for ad valorem taxation
  431  under s. 193.011, any extended low income housing agreement and
  432  all amendments and supplements thereto which are recorded and
  433  filed in the official public records of the county where the
  434  property is located shall be deemed a land use regulation during
  435  the term of any such agreement, amendment, or supplement.
  436         (7) The corporation is authorized to expend fees received
  437  in conjunction with the allocation of state housing tax credits
  438  only for the purpose of administration of the program, including
  439  private legal services which relate to interpretation of s. 42
  440  of the Internal Revenue Code.
  441         Section 8. Subsection (7) of section 624.509, Florida
  442  Statutes, is amended to read:
  443         624.509 Premium tax; rate and computation.—
  444         (7) Credits and deductions against the tax imposed by this
  445  section shall be taken in the following order: deductions for
  446  assessments made pursuant to s. 440.51; credits for taxes paid
  447  under ss. 175.101 and 185.08; credits for income taxes paid
  448  under chapter 220 and the credit allowed under subsection (5),
  449  as these credits are limited by subsection (6); the credit
  450  allowed under s. 624.51055; the credit allowed under s.
  451  624.51056; all other available credits and deductions.
  452         Section 9. Section 624.51056, Florida Statutes, is created
  453  to read:
  454         624.51056 State workforce housing tax credit.
  455         (1)AUTHORIZATION TO GRANT STATE WORKFORCE HOUSING TAX
  456  CREDITS; LIMITATIONS.—
  457         (a)A taxpayer owning an interest in one or more eligible
  458  workforce housing developments who receives an eligibility
  459  statement from the Florida Housing Finance Corporation pursuant
  460  to s. 420.5093 may claim a tax credit against any tax due under
  461  s. 624.509(1) or s. 624.5091 after deducting from the tax the
  462  deductions for assessments made pursuant to s. 440.51; the
  463  credits for taxes paid under ss. 175.101 and 185.08; the credits
  464  for income taxes paid under chapter 220; the credit allowed
  465  under s. 624.509(5), as such credit is limited by s. 624.509(6);
  466  and the credit allowed under s. 624.51055. The tax credits
  467  issued pursuant to the eligibility statement may be claimed in
  468  each year of the credit period only in amounts equal to the
  469  annual credit amount, unless carried forward pursuant to
  470  paragraph (d). The amount of the final agency award and each
  471  annual credit amount must be stated on the eligibility
  472  statement. A copy of the eligibility statement must be attached
  473  to each tax return for which the taxpayer seeks to apply a tax
  474  credit.
  475         (b)The Florida Housing Finance Corporation shall make
  476  preliminary agency awards in calendar year 2020, calendar year
  477  2021, or calendar year 2022 as set forth in this paragraph. A
  478  preliminary agency award may not be made after 2022. The maximum
  479  aggregate credit amount of preliminary agency awards to eligible
  480  workforce housing developments is $50 million in 2020, $50
  481  million in 2021, and $50 million in 2022. The limitation in this
  482  paragraph on preliminary agency awards does not apply to the
  483  annual credit amount claimed with respect to an eligible
  484  workforce housing development for each year of the credit
  485  period.
  486         (c)If an owner of an eligible workforce housing
  487  development which receives an eligibility statement is a
  488  partnership, limited liability company, or corporation, the
  489  owner may distribute the annual credit amount among its
  490  partners, shareholders, members, or other constituent taxpayers
  491  in any manner agreed to by such partners, shareholders, members,
  492  or other constituent taxpayers with an insurance premium tax
  493  liability. Each year of the credit period, the owner shall
  494  certify to the Department of Revenue the portion of the annual
  495  credit amount distributed to each partner, shareholder, member,
  496  or other constituent taxpayer as well as the name, address, and
  497  federal taxpayer identification number of each partner,
  498  shareholder, member, or other constituent taxpayer. Each
  499  partner, shareholder, member, or other constituent taxpayer is
  500  allowed to claim such portion of the annual credit amount
  501  subject to the restrictions in this section. A copy of the
  502  allocation of annual credit certification must be attached to
  503  each tax return for which the partner, shareholder, member, or
  504  other constituent taxpayer seeks to apply its allocated portion
  505  of the owner’s annual credit.
  506         (d)Any amount of credit which exceeds the tax due for any
  507  year may be carried forward as a tax credit against subsequent
  508  years’ insurance premium tax liability for up to 11 tax years
  509  after the year in which the annual credit amount was available
  510  to the taxpayer pursuant to paragraph (a). Such credit must be
  511  applied first to the earliest years possible. Any amount of the
  512  credit which is not used may not be refunded to the taxpayer.
  513         (e)An insurer claiming a credit against premium tax
  514  liability under this section is not required to pay any
  515  additional retaliatory tax levied pursuant to s. 624.5091 as a
  516  result of claiming such credit, and that section does not limit
  517  such credit.
  518         (2) CREDIT RECAPTURE.—
  519         (a) As of the close of any year in the compliance period,
  520  if the amount of the qualified basis of any building with
  521  respect to the taxpayer is less than the amount of the qualified
  522  basis as of the close of the preceding year, the Florida Housing
  523  Finance Corporation shall proportionally reduce the credit
  524  allowable with respect to such year by the percentage reduction
  525  in the qualified basis. The Florida Housing Finance Corporation
  526  shall notify the taxpayer in writing of any modification of the
  527  credit and transmit a copy of such notification to the executive
  528  director of the Department of Revenue.
  529         (b) In addition to its existing audit and investigation
  530  authority, the Department of Revenue may perform any additional
  531  financial and technical audits and investigations, including
  532  examining the accounts, books, and records of the tax credit
  533  applicant, which are necessary to verify the accuracy of the
  534  return and to ensure compliance with this section. If requested
  535  by the Department of Revenue, the Florida Housing Finance
  536  Corporation must provide technical assistance for any technical
  537  audits or examinations performed under this subsection.
  538         (c) If the Department of Revenue determines as a result of
  539  an audit or examination, or from information received from the
  540  Florida Housing Finance Corporation, that a taxpayer received
  541  tax credits pursuant to this section to which the taxpayer was
  542  not entitled, the previously claimed and received tax credits
  543  are subject to forfeiture.
  544         (d) The Florida Housing Finance Corporation may revoke or
  545  modify any eligibility statement or agency award granting
  546  eligibility for tax credits under this section if it is
  547  discovered that the tax credit applicant submitted any false
  548  statement, representation, or certification in any application,
  549  record, report, plan, or other document filed in an attempt to
  550  receive tax credits under this section. The Florida Housing
  551  Finance Corporation shall immediately notify the Department of
  552  Revenue of any revoked or modified orders affecting a previously
  553  issued eligibility statement. Additionally, the taxpayer must
  554  notify the Department of Revenue of any change in its tax credit
  555  claimed.
  556         (e) The taxpayer shall file with the Department of Revenue
  557  an amended return or such other report as the Department of
  558  Revenue prescribes by rule and shall pay any required tax and
  559  interest within 60 days after the taxpayer received notification
  560  from the Florida Housing Finance Corporation that previously
  561  approved tax credits have been revoked or modified. If the
  562  revocation or modification order is contested, the taxpayer must
  563  file an amended return or other report as provided in this
  564  paragraph within 60 days after a final order is issued after
  565  proceedings.
  566         (f) A notice of deficiency may be issued by the Department
  567  of Revenue at any time within 3 years after the taxpayer
  568  receives formal notification from the Florida Housing Finance
  569  Corporation that previously approved tax credits have been
  570  revoked or modified. If a taxpayer fails to notify the
  571  Department of Revenue of any changes to its tax credit claimed,
  572  a notice of deficiency may be issued at any time.
  573         (3)APPLICABILITY.—This section applies to tax years
  574  beginning on or after January 1, 2020.
  575         Section 10. For the purpose of incorporating the amendment
  576  made by this act to section 624.509, Florida Statutes, in a
  577  reference thereto, paragraph (a) of subsection (1) of section
  578  624.5091, Florida Statutes, is reenacted to read:
  579         624.5091 Retaliatory provision, insurers.—
  580         (1)(a) When by or pursuant to the laws of any other state
  581  or foreign country any taxes, licenses, and other fees, in the
  582  aggregate, and any fines, penalties, deposit requirements, or
  583  other material obligations, prohibitions, or restrictions are or
  584  would be imposed upon Florida insurers or upon the agents or
  585  representatives of such insurers, which are in excess of such
  586  taxes, licenses, and other fees, in the aggregate, or which are
  587  in excess of the fines, penalties, deposit requirements, or
  588  other obligations, prohibitions, or restrictions directly
  589  imposed upon similar insurers, or upon the agents or
  590  representatives of such insurers, of such other state or country
  591  under the statutes of this state, so long as such laws of such
  592  other state or country continue in force or are so applied, the
  593  same taxes, licenses, and other fees, in the aggregate, or
  594  fines, penalties, deposit requirements, or other material
  595  obligations, prohibitions, or restrictions of whatever kind
  596  shall be imposed by the Department of Revenue upon the insurers,
  597  or upon the agents or representatives of such insurers, of such
  598  other state or country doing business or seeking to do business
  599  in this state. In determining the taxes to be imposed under this
  600  section, 80 percent and a portion of the remaining 20 percent as
  601  provided in paragraph (b) of the credit provided by s.
  602  624.509(5), as limited by s. 624.509(6) and further determined
  603  by s. 624.509(7), shall not be taken into consideration.
  604         Section 11. This act shall take effect July 1, 2019.