Senate Bill 1314c1
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Florida Senate - 1998 CS for SB 1314
By the Committee on Commerce and Economic Opportunities and
Senators Bronson and Grant
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1 A bill to be entitled
2 An act relating to capital investment tax
3 credits; creating s. 220.191, F.S.; providing
4 definitions; providing for a credit against the
5 corporate income tax for certain capital costs;
6 providing requirements; providing limitations;
7 providing for certification of eligibility by
8 the Office of Tourism, Trade, and Economic
9 Development; providing duties of the Department
10 of Revenue; authorizing the office to develop
11 certification guidelines and application
12 materials; amending s. 220.02, F.S.; providing
13 legislative intent on the order in which the
14 capital investment tax credits are to be
15 applied; providing an effective date.
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17 Be It Enacted by the Legislature of the State of Florida:
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19 Section 1. Section 220.191, Florida Statutes, is
20 created to read:
21 220.191 Capital investment tax credit.--
22 (1) DEFINITIONS.--For purposes of this section:
23 (a) "Commencement of operations" means the beginning
24 of active operations by a qualifying business of the principal
25 function for which a qualifying project was constructed.
26 (b) "Cumulative capital investment" means the total
27 capital investment in land, buildings, and equipment made in
28 connection with a qualifying project during the period from
29 the beginning of construction of the project to the
30 commencement of operations.
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1 (c) "Eligible capital costs" means all expenses
2 incurred by a qualifying business in connection with the
3 acquisition, construction, installation, and equipping of a
4 qualifying project during the period from the beginning of
5 construction of the project to the commencement of operations,
6 including, but not limited to:
7 1. The costs of acquiring, constructing, installing,
8 equipping, and financing a qualifying project, including all
9 obligations incurred for labor and obligations to contractors,
10 subcontractors, builders, and materialmen.
11 2. The costs of acquiring land or rights to land and
12 any cost incidental thereto, including recording fees.
13 3. The costs of architectural and engineering
14 services, including test borings, surveys, estimates, plans
15 and specifications, preliminary investigations, environmental
16 mitigation, and supervision of construction, as well as the
17 performance of all duties required by or consequent to the
18 acquisition, construction, installation, and equipping of a
19 qualifying project.
20 4. The costs associated with the installation of
21 fixtures and equipment; surveys, including archeological and
22 environmental surveys; site tests and inspections; subsurface
23 site work and excavation; removal of structures, roadways, and
24 other surface obstructions; filling, grading, paving, and
25 provisions for drainage, storm water retention, and
26 installation of utilities, including water, sewer, sewage
27 treatment, gas, electricity, communications, and similar
28 facilities; and offsite construction of utility extensions to
29 the boundaries of the property.
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Florida Senate - 1998 CS for SB 1314
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1 Eligible capital costs shall not include the cost of any
2 property previously owned or leased by the qualifying
3 business.
4 (d) "Jobs" means full-time equivalent positions, as
5 such term is consistent with terms used by Department of Labor
6 and Employment Security and the United States Department of
7 Labor for purposes of unemployment tax administration and
8 employment estimation, resulting directly from a project in
9 this state. Such term does not include temporary construction
10 jobs involved in the construction of the project facility.
11 (e) "Office" means the Office of Tourism, Trade and
12 Economic Development.
13 (f) "Qualifying business" means a business which
14 establishes a qualifying project in this state and which is
15 certified by the office to receive tax credits pursuant to
16 this section.
17 (g) "Qualifying project" means a new or expanding
18 facility in this state which creates at least 100 new jobs in
19 this state and is in one of the high-impact sectors identified
20 by Enterprise Florida, Inc., pursuant to s. 288.108(6),
21 including, but not limited to, aviation, aerospace,
22 automotive, and silicon technology industries.
23 (2) An annual credit against the tax imposed by this
24 chapter shall be granted to any qualifying business in an
25 amount equal to 5 percent of the eligible capital costs
26 generated by a qualifying project, for a period not to exceed
27 20 years beginning with the commencement of operations of the
28 project. The tax credit shall be granted against only the
29 corporate income tax liability generated by or arising out of
30 the qualifying project, and the sum of all tax credits
31 provided pursuant to this section shall not exceed 100 percent
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Florida Senate - 1998 CS for SB 1314
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1 of the eligible capital costs of the project. In no event may
2 any credit granted under this section be carried forward or
3 backward by any qualifying business with respect to a
4 subsequent or prior year. The annual tax credit granted under
5 this section shall not exceed the following percentages of the
6 annual corporate income tax liability generated by or arising
7 out of a qualifying project:
8 (a) One hundred percent for a qualifying project which
9 results in a cumulative capital investment of at least $100
10 million.
11 (b) Seventy-five percent for a qualifying project
12 which results in a cumulative capital investment of at least
13 $50 million but less than $100 million.
14 (c) Fifty percent for a qualifying project which
15 results in a cumulative capital investment of at least $25
16 million but less than $50 million.
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18 A qualifying project which results in a cumulative capital
19 investment of less than $25 million is not eligible for the
20 capital investment tax credit.
21 (3) Prior to receiving tax credits pursuant to this
22 section, a qualifying business must achieve and maintain the
23 minimum employment goals beginning with the commencement of
24 operations at a qualifying project and continuing each year
25 thereafter during which tax credits are available pursuant to
26 this section.
27 (4) The office, upon a recommendation by Enterprise
28 Florida, Inc., shall first certify a business as eligible to
29 receive tax credits pursuant to this section prior to the
30 commencement of operations of a qualifying project and such
31 certification shall be transmitted to the Department of
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1 Revenue. Upon receipt of the certification, the Department of
2 Revenue shall enter into a written agreement with the
3 qualifying business specifying, at a minimum, the method by
4 which income generated by or arising out of the qualifying
5 project will be determined.
6 (5) The office, in consultation with Enterprise
7 Florida, Inc., is authorized to develop the necessary
8 guidelines and application materials for the certification
9 process described in subsection (4).
10 Section 2. Subsection (10) of section 220.02, Florida
11 Statutes, is amended to read:
12 220.02 Legislative intent.--
13 (10) It is the intent of the Legislature that credits
14 against either the corporate income tax or the franchise tax
15 be applied in the following order: those enumerated in s.
16 220.68, those enumerated in s. 631.719(1), those enumerated in
17 s. 631.705, those enumerated in s. 220.18, those enumerated in
18 s. 631.828, those enumerated in s. 220.191, those enumerated
19 in s. 220.181, those enumerated in s. 220.183, those
20 enumerated in s. 220.182, those enumerated in s. 220.1895,
21 those enumerated in s. 221.02, those enumerated in s. 220.184,
22 those enumerated in s. 220.186, and those enumerated in s.
23 220.188.
24 Section 3. This act shall take effect July 1 of the
25 year in which enacted.
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 SB 1314
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4 The committee substitute differs substantially from Senate
Bill 1314 by, as a companion provision to the provision
5 creating the capital investment tax credit, amending s.
220.02(10), F.S., to specify the legislative intent on the
6 order in which the new tax credit should be applied relative
to other credits against the corporate income tax or the
7 franchise tax.
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