Senate Bill 1114
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Florida Senate - 1998 SB 1114
By Senators McKay and Latvala
312-937-98
1 A bill to be entitled
2 An act relating to contaminated site
3 rehabilitation tax credits; creating s.
4 199.1055, F.S.; providing for a contaminated
5 site rehabilitation tax credit against the
6 intangible personal property tax; authorizing
7 the Department of Revenue to adopt rules;
8 amending s. 220.02, F.S.; providing for an
9 additional cross-reference; creating s.
10 220.1845, F.S.; providing for a contaminated
11 site rehabilitation tax credit against the
12 corporate income tax; authorizing the
13 Department of Revenue to adopt rules; creating
14 s. 376.30714, F.S.; providing for a partial tax
15 credit for the rehabilitation of drycleaning
16 solvent contaminated sites and brownfield sites
17 contaminated with hazardous substances;
18 providing for the Department of Environmental
19 Protection to determine eligibility for such
20 partial credits; specifying what the
21 application must contain; providing for a
22 nonrefundable review fee; requiring the
23 taxpayer to submit to the Department of Revenue
24 the Department of Environmental Protection's
25 letter of approval and other specified
26 documents; providing an effective date.
27
28 Be It Enacted by the Legislature of the State of Florida:
29
30 Section 1. Section 199.1055, Florida Statutes, is
31 created to read:
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Florida Senate - 1998 SB 1114
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1 199.1055 Contaminated site rehabilitation tax
2 credit.--
3 (1) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.--
4 (a) A credit in the amount of 25 percent of the costs
5 of voluntary rehabilitation of drycleaning solvent
6 contaminated sites eligible for state funding assistance under
7 s. 376.3078(3) or a brownfield site in a brownfield area
8 designated under s. 376.80 is allowed against any tax due for
9 a taxable year under s. 199.032, less any credit allowed by s.
10 220.68 for that year.
11 (b) A taxpayer may not receive more than $125,000 in
12 tax credits for each site approved.
13 (c) The total amount of the tax credits which may be
14 granted under this section and s. 220.1845 is $5 million
15 annually.
16 (d) If the credit granted under this section is not
17 fully used in any one year because of insufficient tax
18 liability on the part of the taxpayer, the unused amount may
19 be carried forward for a period not to exceed 5 years.
20 (e) A taxpayer that receives a credit under s.
21 220.1845 is ineligible to receive credit under this section.
22 (f) A taxpayer that receives state funding pursuant to
23 s. 376.3078(3) for rehabilitation of a drycleaning solvent
24 contaminated site is ineligible to receive credit under this
25 section for costs incurred in conjunction with the
26 rehabilitation of that site.
27 (2) FILING REQUIREMENTS.--Any taxpayer that wishes to
28 obtain credit under this section must submit with its return:
29 (a) The application submitted to the Department of
30 Environmental Protection under s. 376.30714.
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Florida Senate - 1998 SB 1114
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1 (b) The letter of approval from the Department of
2 Environmental Protection.
3 (d) Records of payment made as specified in s.
4 376.30714(4).
5 (3) ADMINISTRATION.--The Department of Revenue may
6 adopt rules necessary to administer this section.
7 Section 2. Subsection (10) of section 220.02, Florida
8 Statutes, is amended to read:
9 220.02 Legislative intent.--
10 (10) It is the intent of the Legislature that credits
11 against either the corporate income tax or the franchise tax
12 be applied in the following order: those enumerated in s.
13 220.68, those enumerated in s. 631.719(1), those enumerated in
14 s. 631.705, those enumerated in s. 220.18, those enumerated in
15 s. 631.828, those enumerated in s. 220.181, those enumerated
16 in s. 220.183, those enumerated in s. 220.182, those
17 enumerated in s. 220.1895, those enumerated in s. 221.02,
18 those enumerated in s. 220.184, those enumerated in s.
19 220.186, and those enumerated in s. 220.188, and those
20 enumerated in s. 220.1845.
21 Section 3. Section 220.1845, Florida Statutes, is
22 created to read:
23 220.1845 Contaminated site rehabilitation tax
24 credit.--
25 (1) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.--
26 (a) A credit in the amount of 25 percent of the costs
27 of voluntary rehabilitation of drycleaning solvent
28 contaminated sites eligible for state funding assistance under
29 s. 376.3078(3) or a brownfield site in a brownfield area
30 designated under s. 376.80 is allowed against any tax due for
31 a taxable year under this chapter.
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Florida Senate - 1998 SB 1114
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1 (b) A corporation may not receive more than $125,000
2 in tax credits for each site approved.
3 (c) The total amount of the tax credits which may be
4 granted under this section and s. 199.1055 is $5 million
5 annually.
6 (d) If the credit granted under this section is not
7 fully used in any one year because of insufficient tax
8 liability on the part of the corporation, the unused amount
9 may be carried forward for a period not to exceed 5 years. The
10 carryover credit may be used in a subsequent year when the tax
11 imposed by this chapter for that year exceeds the credit for
12 which the corporation is eligible in that year under this
13 section after applying the other credits and unused carryovers
14 in the order provided by s. 220.02(10).
15 (e) A taxpayer that files a consolidated return in
16 this state as a member of an affiliated group under s.
17 220.131(1) may be allowed the credit on a consolidated return
18 basis up to the amount of tax imposed upon and paid by the
19 taxpayer that incurred the rehabilitation costs.
20 (f) A taxpayer that is eligible to receive credit
21 under s. 199.1055 is ineligible to receive credit under this
22 section.
23 (g) A taxpayer that receives state funding under s.
24 376.3078(3) for rehabilitation of a drycleaning solvent
25 contaminated site is ineligible to receive credit under this
26 section for costs incurred in association with the
27 rehabilitation of that site.
28 (2) FILING REQUIREMENTS.--Any corporation that wishes
29 to obtain credit under this section must submit with its
30 return:
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1 (a) The application submitted to the Department of
2 Environmental Protection under s. 376.30714.
3 (b) The letter of approval from the Department of
4 Environmental Protection.
5 (c) All contracts and contract negotiations for the
6 rehabilitation.
7 (d) Records of payment made as specified in s.
8 376.30714(4).
9 (3) ADMINISTRATION.--The department may adopt all
10 rules necessary to administer this section.
11 Section 4. Section 376.30714, Florida Statutes, is
12 created to read:
13 376.30714 Partial tax credits for rehabilitation of
14 drycleaning solvent contaminated sites and brownfield sites
15 contaminated with hazardous substances.--
16 (1) The Legislature finds that:
17 (a) To facilitate property transactions and economic
18 growth and development, it is in the interest of the state to
19 encourage the cleanup, at the earliest possible time, of
20 drycleaning solvent contaminated sites and contaminated sites
21 in a designated brownfield area.
22 (b) It is the intent of the Legislature to encourage
23 the voluntary cleanup of brownfield sites by providing a
24 partial tax credit for the restoration of such property in
25 specified circumstances.
26 (2) An owner, operator, or real-property owner is
27 eligible for a tax credit of 25 percent of the actual cost of
28 cleanup activity up to a maximum credit of $125,000 for each
29 tax year.
30 (3) The department may approve a total of no more than
31 $5 million of partial tax credits for voluntary cleanup
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1 activities per tax year. Approval of partial tax credits must
2 be accomplished on a first-come, first-served basis based upon
3 the date complete applications are received by the Division of
4 Waste Management. Any eligible person conducting or proposing
5 to conduct voluntary cleanup may apply for a tax credit. Such
6 applications for tax credit must be submitted to the
7 department on forms provided by the department. Upon approval
8 of the application, the department must issue a written
9 decision granting or denying eligibility for partial tax
10 credit. An application must consist of:
11 (a) Proof of eligibility under s. 376.3078(3).
12 (b) A contamination assessment report.
13 (c) A proposed course of action with estimated costs
14 per tax year.
15 (d) Payment of all deductibles pursuant to s.
16 376.3078(3)(d).
17 (e) A nonrefundable review fee of $250 to cover the
18 administrative costs associated with departmental review of
19 the application.
20 (4) To receive the partial tax credit under s.
21 199.1055 or s. 220.1845, the taxpayer must submit to the
22 Department of Revenue the department's letter of approval,
23 copies of contracts and documentation of contract
24 negotiations, and accounts, invoices, sales tickets, or other
25 payment records from purchases, sales, leases, or other
26 transactions involving approved and actual costs incurred for
27 that tax year related to site rehabilitation.
28 (5) An owner, operator, or real-property owner who
29 receives a tax credit pursuant to s. 199.1055 or s. 220.1845
30 for costs incurred in conjunction with the rehabilitation
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Florida Senate - 1998 SB 1114
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1 activities is ineligible for state funding assistance under s.
2 376.3078(3) for those costs.
3 Section 5. This act shall take effect July 1, 1998.
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6 SENATE SUMMARY
7 Provides for tax credits for rehabilitating contaminated
sites. Provides for a tax credit against the intangible
8 personal property tax. Authorizes rulemaking. Provides
for a tax credit against the corporate income tax.
9 Authorizes rulemaking. Provides for a partial tax credit
for the rehabilitation of sites contaminated by
10 drycleaning solvent and of brownfield sites contaminated
with hazardous substances. Provides for the Department of
11 Environmental Protection to determine eligibility for
such partial credits. Specifies the contents of
12 applications for the tax credits. Provides for a
nonrefundable review fee. Requires the taxpayer to submit
13 specified documents to the Department of Revenue.
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