Senate Bill sb1216
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Florida Senate - 2001 SB 1216
By the Committee on Commerce and Economic Opportunities
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1 A bill to be entitled
2 An act relating to economic development;
3 amending s. 212.08, F.S.; revising certain
4 procedures and conditions relating to the sales
5 tax exemption for enterprise-zone building
6 materials and business property; extending the
7 community contribution tax credit provisions of
8 the enterprise zone program to the state sales
9 tax; amending s. 212.096, F.S.; redefining the
10 terms "eligible business" and "new employee";
11 defining the term "jobs"; revising the
12 computation procedures of the enterprise-zone
13 jobs credit against sales tax; amending s.
14 212.098, F.S.; redefining the term "eligible
15 business"; providing for reduction or waiver of
16 certain financial match requirements in rural
17 areas by Rural Economic Development Initiative
18 agencies and organizations; amending s. 220.03,
19 F.S.; redefining the terms "new employee" and
20 "project"; defining the term "new job has been
21 created"; amending s. 220.181, F.S.; revising
22 the computation procedures of the
23 enterprise-zone job credit against the
24 corporate income tax; amending s. 220.183,
25 F.S.; revising the eligibility, application,
26 and administrative requirements of the
27 community contribution corporate income tax
28 credit program; increasing the limitation on
29 annual credits; amending s. 288.018, F.S.;
30 revising administration and uses of the
31 Regional Rural Development Grants Program;
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1 creating s. 288.019, F.S.; providing for a
2 review and evaluation process of rural grants
3 by Rural Economic Development Initiative
4 agencies; amending s. 288.065, F.S.; expanding
5 the scope of the Rural Community Revolving Loan
6 Fund Program; amending s. 288.0656, F.S.;
7 revising the membership of the Rural Economic
8 Development Initiative; requiring an annual
9 designation of staff representatives; amending
10 s. 288.1088, F.S.; expanding eligible uses of
11 the Quick Action Closing Fund; amending s.
12 288.9015, F.S.; revising the duties of
13 Enterprise Florida, Inc.; amending s. 290.004,
14 F.S.; defining the term "rural enterprise
15 zone"; amending s. 290.0065, F.S.; providing
16 for certain rural enterprise zones; conforming
17 agency references to changes in program
18 administration; authorizing the Office of
19 Tourism, Trade, and Economic Development in
20 consultation with Enterprise Florida, Inc., to
21 develop guidelines relating to the designation
22 of enterprise zones; creating s. 290.00676,
23 F.S.; authorizing the Office of Tourism, Trade,
24 and Economic Development to amend the
25 boundaries of a rural enterprise zone and
26 providing requirements with respect thereto;
27 creating s. 290.00677, F.S.; modifying the
28 employee residency requirements for the
29 enterprise-zone job credit against the sales
30 tax and corporate income tax if the business is
31 located in a rural enterprise zone; creating s.
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1 290.00694, F.S.; authorizing the Office of
2 Tourism, Trade, and Economic Development to
3 designate rural champion communities as
4 enterprise zones; providing requirements with
5 respect thereto; amending s. 290.007, F.S.;
6 revising the list of enterprise zone incentives
7 to reflect the creation of a community
8 contribution sales tax credit program;
9 repealing s. 370.28(4), F.S., which provides
10 conditions for tax incentives in enterprise
11 zone net-ban communities; amending s. 420.507,
12 F.S.; authorizing the Florida Housing Finance
13 Corporation to create a recognition program to
14 support affordable housing; amending s.
15 624.5105, F.S.; increasing the annual
16 limitation on community contribution tax
17 credits; conforming definitions; revising
18 eligibility and administrative requirements;
19 providing effective dates.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Paragraphs (g) and (h) of subsection (5) of
24 section 212.08, Florida Statutes, are amended, and paragraph
25 (q) is added to that subsection, to read:
26 212.08 Sales, rental, use, consumption, distribution,
27 and storage tax; specified exemptions.--The sale at retail,
28 the rental, the use, the consumption, the distribution, and
29 the storage to be used or consumed in this state of the
30 following are hereby specifically exempt from the tax imposed
31 by this chapter.
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1 (5) EXEMPTIONS; ACCOUNT OF USE.--
2 (g) Building materials used in the rehabilitation of
3 real property located in an enterprise zone.--
4 1. Beginning July 1, 1995, building materials used in
5 the rehabilitation of real property located in an enterprise
6 zone shall be exempt from the tax imposed by this chapter upon
7 an affirmative showing to the satisfaction of the department
8 that the items have been used for the rehabilitation of real
9 property located in an enterprise zone. Except as provided in
10 subparagraph 2., this exemption inures to the owner, lessee,
11 or lessor of the rehabilitated real property located in an
12 enterprise zone only through a refund of previously paid
13 taxes. To receive a refund pursuant to this paragraph, the
14 owner, lessee, or lessor of the rehabilitated real property
15 located in an enterprise zone must file an application under
16 oath with the governing body or enterprise zone development
17 agency having jurisdiction over the enterprise zone where the
18 business is located, as applicable, which includes:
19 a. The name and address of the person claiming the
20 refund.
21 b. An address and assessment roll parcel number of the
22 rehabilitated real property in an enterprise zone for which a
23 refund of previously paid taxes is being sought.
24 c. A description of the improvements made to
25 accomplish the rehabilitation of the real property.
26 d. A copy of the building permit issued for the
27 rehabilitation of the real property.
28 e. A sworn statement, under the penalty of perjury,
29 from the general contractor licensed in this state with whom
30 the applicant contracted to make the improvements necessary to
31 accomplish the rehabilitation of the real property, which
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1 statement lists the building materials used in the
2 rehabilitation of the real property, the actual cost of the
3 building materials, and the amount of sales tax paid in this
4 state on the building materials. In the event that a general
5 contractor has not been used, the applicant shall provide this
6 information in a sworn statement, under the penalty of
7 perjury. Copies of the invoices which evidence the purchase of
8 the building materials used in such rehabilitation and the
9 payment of sales tax on the building materials shall be
10 attached to the sworn statement provided by the general
11 contractor or by the applicant. Unless the actual cost of
12 building materials used in the rehabilitation of real property
13 and the payment of sales taxes due thereon is documented by a
14 general contractor or by the applicant in this manner, the
15 cost of such building materials shall be an amount equal to 40
16 percent of the increase in assessed value for ad valorem tax
17 purposes.
18 f. The identifying number assigned pursuant to s.
19 290.0065 to the enterprise zone in which the rehabilitated
20 real property is located.
21 g. A certification by the local building code
22 inspector that the improvements necessary to accomplish the
23 rehabilitation of the real property are substantially
24 completed.
25 h. Whether the business is a small business as defined
26 by s. 288.703(1).
27 i. If applicable, the name and address of each
28 permanent employee of the business, including, for each
29 employee who is a resident of an enterprise zone, the
30 identifying number assigned pursuant to s. 290.0065 to the
31 enterprise zone in which the employee resides.
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1 2. This exemption inures to a city, county, or other
2 governmental agency, or nonprofit community-based organization
3 through a refund of previously paid taxes if the building
4 materials used in the rehabilitation of real property located
5 in an enterprise zone are paid for from the funds of a
6 community development block grant, State Housing Initiatives
7 Partnership Program, or similar grant or loan program. To
8 receive a refund pursuant to this paragraph, a city, county,
9 or other governmental agency, or nonprofit community-based
10 organization must file an application which includes the same
11 information required to be provided in subparagraph 1. by an
12 owner, lessee, or lessor of rehabilitated real property. In
13 addition, the application must include a sworn statement
14 signed by the chief executive officer of the city, county, or
15 other governmental agency, or nonprofit community-based
16 organization seeking a refund which states that the building
17 materials for which a refund is sought were paid for from the
18 funds of a community development block grant, State Housing
19 Initiatives Partnership Program, or similar grant or loan
20 program.
21 3. Within 10 working days after receipt of an
22 application, the governing body or enterprise zone development
23 agency shall review the application to determine if it
24 contains all the information required pursuant to subparagraph
25 1. or subparagraph 2. and meets the criteria set out in this
26 paragraph. The governing body or agency shall certify all
27 applications that contain the information required pursuant to
28 subparagraph 1. or subparagraph 2. and meet the criteria set
29 out in this paragraph as eligible to receive a refund. If
30 applicable, the governing body or agency shall also certify if
31 20 percent of the employees of the business are residents of
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1 an enterprise zone, excluding temporary and part-time
2 employees. The certification shall be in writing, and a copy
3 of the certification shall be transmitted to the executive
4 director of the Department of Revenue. The applicant shall be
5 responsible for forwarding a certified application to the
6 department within the time specified in subparagraph 4.
7 4. An application for a refund pursuant to this
8 paragraph must be submitted to the department within 6 months
9 after the rehabilitation of the property is deemed to be
10 substantially completed by the local building code inspector
11 or within 90 days after the rehabilitated property is first
12 subject to assessment.
13 5. The provisions of s. 212.095 do not apply to any
14 refund application made pursuant to this paragraph. No more
15 than one exemption through a refund of previously paid taxes
16 for the rehabilitation of real property shall be permitted for
17 any one parcel of real property. No refund shall be granted
18 pursuant to this paragraph unless the amount to be refunded
19 exceeds $500. No refund granted pursuant to this paragraph
20 shall exceed the lesser of 97 percent of the Florida sales or
21 use tax paid on the cost of the building materials used in the
22 rehabilitation of the real property as determined pursuant to
23 sub-subparagraph 1.e. or $5,000, or, if no less than 20
24 percent of the employees of the business are residents of an
25 enterprise zone, excluding temporary and part-time employees,
26 the amount of refund granted pursuant to this paragraph shall
27 not exceed the lesser of 97 percent of the sales tax paid on
28 the cost of such building materials or $10,000. A refund
29 approved pursuant to this paragraph shall be made within 30
30 days of formal approval by the department of the application
31 for the refund.
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1 6. The department shall adopt rules governing the
2 manner and form of refund applications and may establish
3 guidelines as to the requisites for an affirmative showing of
4 qualification for exemption under this paragraph.
5 7. The department shall deduct an amount equal to 10
6 percent of each refund granted under the provisions of this
7 paragraph from the amount transferred into the Local
8 Government Half-cent Sales Tax Clearing Trust Fund pursuant to
9 s. 212.20 for the county area in which the rehabilitated real
10 property is located and shall transfer that amount to the
11 General Revenue Fund.
12 8. For the purposes of the exemption provided in this
13 paragraph:
14 a. "Building materials" means tangible personal
15 property which becomes a component part of improvements to
16 real property.
17 b. "Real property" has the same meaning as provided in
18 s. 192.001(12).
19 c. "Rehabilitation of real property" means the
20 reconstruction, renovation, restoration, rehabilitation,
21 construction, or expansion of improvements to real property.
22 d. "Substantially completed" has the same meaning as
23 provided in s. 192.042(1).
24 9. The provisions of this paragraph shall expire and
25 be void on December 31, 2005.
26 (h) Business property used in an enterprise zone.--
27 1. Beginning July 1, 1995, business property purchased
28 for use by businesses located in an enterprise zone which is
29 subsequently used in an enterprise zone shall be exempt from
30 the tax imposed by this chapter. This exemption inures to the
31 business only through a refund of previously paid taxes. A
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1 refund shall be authorized upon an affirmative showing by the
2 taxpayer to the satisfaction of the department that the
3 requirements of this paragraph have been met.
4 2. To receive a refund, the business must file under
5 oath with the governing body or enterprise zone development
6 agency having jurisdiction over the enterprise zone where the
7 business is located, as applicable, an application which
8 includes:
9 a. The name and address of the business claiming the
10 refund.
11 b. The identifying number assigned pursuant to s.
12 290.0065 to the enterprise zone in which the business is
13 located.
14 c. A specific description of the property for which a
15 refund is sought, including its serial number or other
16 permanent identification number.
17 d. The location of the property.
18 e. The sales invoice or other proof of purchase of the
19 property, showing the amount of sales tax paid, the date of
20 purchase, and the name and address of the sales tax dealer
21 from whom the property was purchased.
22 f. Whether the business is a small business as defined
23 by s. 288.703(1).
24 g. If applicable, the name and address of each
25 permanent employee of the business, including, for each
26 employee who is a resident of an enterprise zone, the
27 identifying number assigned pursuant to s. 290.0065 to the
28 enterprise zone in which the employee resides.
29 3. Within 10 working days after receipt of an
30 application, the governing body or enterprise zone development
31 agency shall review the application to determine if it
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1 contains all the information required pursuant to subparagraph
2 2. and meets the criteria set out in this paragraph. The
3 governing body or agency shall certify all applications that
4 contain the information required pursuant to subparagraph 2.
5 and meet the criteria set out in this paragraph as eligible to
6 receive a refund. If applicable, the governing body or agency
7 shall also certify if 20 percent of the employees of the
8 business are residents of an enterprise zone, excluding
9 temporary and part-time employees. The certification shall be
10 in writing, and a copy of the certification shall be
11 transmitted to the executive director of the Department of
12 Revenue. The business shall be responsible for forwarding a
13 certified application to the department within the time
14 specified in subparagraph 4.
15 4. An application for a refund pursuant to this
16 paragraph must be submitted to the department within 6 months
17 after the tax is due on the business property that is
18 purchased.
19 5. The provisions of s. 212.095 do not apply to any
20 refund application made pursuant to this paragraph. The amount
21 refunded on purchases of business property under this
22 paragraph shall be the lesser of 97 percent of the sales tax
23 paid on such business property or $5,000, or, if no less than
24 20 percent of the employees of the business are residents of
25 an enterprise zone, excluding temporary and part-time
26 employees, the amount refunded on purchases of business
27 property under this paragraph shall be the lesser of 97
28 percent of the sales tax paid on such business property or
29 $10,000. A refund approved pursuant to this paragraph shall be
30 made within 30 days of formal approval by the department of
31 the application for the refund. No refund shall be granted
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1 under this paragraph unless the amount to be refunded exceeds
2 $100 in sales tax paid on purchases made within a 60-day time
3 period.
4 6. The department shall adopt rules governing the
5 manner and form of refund applications and may establish
6 guidelines as to the requisites for an affirmative showing of
7 qualification for exemption under this paragraph.
8 7. If the department determines that the business
9 property is used outside an enterprise zone within 3 years
10 from the date of purchase, the amount of taxes refunded to the
11 business purchasing such business property shall immediately
12 be due and payable to the department by the business, together
13 with the appropriate interest and penalty, computed from the
14 date of purchase, in the manner provided by this chapter.
15 Notwithstanding this subparagraph, business property used
16 exclusively in:
17 a. Licensed commercial fishing vessels,
18 b. Fishing guide boats, or
19 c. Ecotourism guide boats
20
21 that leave and return to a fixed location within an area
22 designated under s. 370.28 are eligible for the exemption
23 provided under this paragraph if all requirements of this
24 paragraph are met. Such vessels and boats must be owned by a
25 business that is eligible to receive the exemption provided
26 under this paragraph. This exemption does not apply to the
27 purchase of a vessel or boat.
28 8. The department shall deduct an amount equal to 10
29 percent of each refund granted under the provisions of this
30 paragraph from the amount transferred into the Local
31 Government Half-cent Sales Tax Clearing Trust Fund pursuant to
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1 s. 212.20 for the county area in which the business property
2 is located and shall transfer that amount to the General
3 Revenue Fund.
4 9. For the purposes of this exemption, "business
5 property" means new or used property defined as "recovery
6 property" in s. 168(c) of the Internal Revenue Code of 1954,
7 as amended, except:
8 a. Property classified as 3-year property under s.
9 168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
10 b. Industrial machinery and equipment as defined in
11 sub-subparagraph (b)6.a. and eligible for exemption under
12 paragraph (b); and
13 c. Building materials as defined in sub-subparagraph
14 (g)8.a.; and
15 d. Business property having a sales price of under
16 $500 per unit.
17 10. The provisions of this paragraph shall expire and
18 be void on December 31, 2005.
19 (q) Community contribution tax credit for donations.--
20 1. Authorization.--Beginning July 1, 2001, persons who
21 are registered with the department under s. 212.18 to collect
22 or remit sales or use tax and who make donations to eligible
23 sponsors are eligible for tax credits against their state
24 sales and use tax liabilities as provided in this paragraph:
25 a. The credit shall be computed as 50 percent of the
26 person's approved annual community contribution;
27 b. The credit shall be granted as a refund against
28 state sales and use taxes reported on returns and remitted in
29 the 12 months preceding the date of application to the
30 department for the credit as required in sub-subparagraph 3.c.
31 If the annual credit is not fully used through such refund
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1 because of insufficient tax payments during the applicable
2 12-month period, the unused amount may be included in an
3 application for a refund made pursuant to sub-subparagraph
4 3.c. in subsequent years against the total tax payments made
5 for such year. Carryover credits may be applied for a 3-year
6 period without regard to any time limitation that would
7 otherwise apply under s. 215.26;
8 c. No person shall receive more than $200,000 in
9 annual tax credits for all approved community contributions
10 made in any one year;
11 d. All proposals for the granting of the tax credit
12 shall require the prior approval of the Office of Tourism,
13 Trade, and Economic Development;
14 e. The total amount of tax credits which may be
15 granted for all programs approved under this paragraph, s.
16 220.183, and s. 624.5105 is $20 million annually; and
17 f. A person who is eligible to receive the credit
18 provided for in this paragraph, s. 220.183, or s. 624.5105 may
19 receive the credit only under the one section of the person's
20 choice.
21 2. Eligibility requirements.--
22 a. A community contribution by a person must be in the
23 following form:
24 (I) Cash or other liquid assets;
25 (II) Real property;
26 (III) Goods or inventory; or
27 (IV) Other physical resources as identified by the
28 Office of Tourism, Trade, and Economic Development.
29 b. All community contributions must be reserved
30 exclusively for use in a project. As used in this
31 sub-subparagraph, the term "project" means any activity
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1 undertaken by an eligible sponsor which is designed to
2 construct, improve, or substantially rehabilitate housing that
3 is affordable to low-income or very-low-income households as
4 defined in s. 420.9071(19) and (28); designed to provide
5 commercial, industrial, or public resources and facilities; or
6 designed to improve entrepreneurial and job-development
7 opportunities for low-income persons. A project may be the
8 investment necessary to increase access to high-speed
9 broadband capability in rural communities with enterprise
10 zones, including projects that result in improvements to
11 communications assets that are owned by a business. This
12 paragraph does not preclude projects that propose to construct
13 or rehabilitate housing for low-income or very-low-income
14 households on scattered sites. The Office of Tourism, Trade,
15 and Economic Development may reserve up to 50 percent of the
16 available annual tax credits for housing for very-low-income
17 households pursuant to s. 420.9071(28) for the first 6 months
18 of the fiscal year. With respect to housing, contributions may
19 be used to pay the following eligible low-income and
20 very-low-income housing-related activities:
21 (I) Project development impact and management fees for
22 low-income or very-low-income housing projects;
23 (II) Down payment and closing costs for eligible
24 persons, as defined in s. 420.9071(19) and (28);
25 (III) Administrative costs, including housing
26 counseling and marketing fees, not to exceed 10 percent of the
27 community contribution, directly related to low-income or
28 very-low-income projects; and
29 (IV) Removal of liens recorded against residential
30 property by municipal, county, or special-district local
31 governments when satisfaction of the lien is a necessary
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1 precedent to the transfer of the property to an eligible
2 person, as defined in s. 420.9071(19) and (28), for the
3 purpose of promoting home ownership. Contributions for lien
4 removal must be received from a nonrelated third party.
5 c. The project must be undertaken by an "eligible
6 sponsor," which includes:
7 (I) A community action program;
8 (II) A nonprofit community-based development
9 organization whose mission is the provision of housing for
10 low-income or very-low-income households or increasing
11 entrepreneurial and job-development opportunities for
12 low-income persons;
13 (III) A neighborhood housing services corporation;
14 (IV) A local housing authority created under chapter
15 421;
16 (V) A community redevelopment agency created under s.
17 163.356;
18 (VI) The Florida Industrial Development Corporation;
19 (VII) An historic preservation district agency or
20 organization;
21 (VIII) A regional workforce board;
22 (IX) A direct-support organization as provided in s.
23 240.551;
24 (X) An enterprise zone development agency created
25 under s. 290.0056;
26 (XI) A community-based organization incorporated under
27 chapter 617 which is recognized as educational, charitable, or
28 scientific pursuant to s. 501(c)(3) of the Internal Revenue
29 Code and whose by-laws and articles of incorporation include
30 affordable housing, economic development, or community
31 development as the primary mission of the corporation;
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1 (XII) Units of local government;
2 (XIII) Units of state government; or
3 (XIV) Any other agency that the Office of Tourism,
4 Trade, and Economic Development designates by rule.
5
6 In no event may a contributing person have a financial
7 interest in the eligible sponsor.
8 d. The project must be located in an area designated
9 an enterprise zone or a Front Porch Florida community pursuant
10 to s. 14.2015(9)(b), unless the project increases access to
11 high-speed broadband capability for rural communities with
12 enterprise zones but is physically located outside the
13 designated rural zone boundaries. Any project designed to
14 construct or rehabilitate housing for low-income or
15 very-low-income households as defined in s. 420.0971(19) and
16 (28) is exempt from the area requirement of this
17 sub-subparagraph.
18 3. Application requirements.--
19 a. Any eligible sponsor seeking to participate in this
20 program must submit a proposal to the Office of Tourism,
21 Trade, and Economic Development which sets forth the name of
22 the sponsor, a description of the project and the area in
23 which the project is located, together with such supporting
24 information as is prescribed by rule. The proposal must also
25 contain a resolution from the local governmental unit in which
26 the project is located certifying that the project is
27 consistent with local plans and regulations.
28 b. Any person seeking to participate in this program
29 must submit an application for tax credit to the Office of
30 Tourism, Trade, and Economic Development which sets forth the
31 name of the sponsor, a description of the project, and the
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1 type, value, and purpose of the contribution. The sponsor
2 shall verify the terms of the application and indicate its
3 receipt of the contribution, which verification must be in
4 writing and accompany the application for tax credit. The
5 person must submit a separate tax credit application to the
6 office for each individual contribution that it makes to each
7 individual project.
8 c. Any person who has received notification from the
9 Office of Tourism, Trade, and Economic Development that a tax
10 credit has been approved must apply to the department to
11 receive the refund. Application must be made on the form
12 prescribed for claiming refunds of sales and use taxes and be
13 accompanied by a copy of the notification. A person may submit
14 only one application for refund to the department within any
15 12-month period.
16 4. Administration.--
17 a. The Office of Tourism, Trade, and Economic
18 Development may adopt rules pursuant to ss. 120.536(1) and
19 120.54 necessary to administer this paragraph, including rules
20 for the approval or disapproval of proposals by a person.
21 b. The decision of the Office of Tourism, Trade, and
22 Economic Development must be in writing, and, if approved, the
23 notification shall state the maximum credit allowable to the
24 person. Upon approval, the office shall transmit a copy of the
25 decision to the Department of Revenue.
26 c. The Office of Tourism, Trade, and Economic
27 Development shall periodically monitor all projects in a
28 manner consistent with available resources to ensure that
29 resources are used in accordance with this paragraph; however,
30 each project must be reviewed at least once every 2 years.
31
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1 d. The Office of Tourism, Trade, and Economic
2 Development shall, in consultation with the Department of
3 Community Affairs, the Florida Housing Finance Corporation,
4 and the statewide and regional housing and financial
5 intermediaries, market the availability of the community
6 contribution tax credit program to community-based
7 organizations.
8 5. Expiration.--This paragraph expires June 30, 2005;
9 however, any accrued credit carryover that is unused on that
10 date may be used until the expiration of the 3-year carryover
11 period for such credit.
12 Section 2. Effective January 1, 2002, section 212.096,
13 Florida Statutes, is amended to read:
14 212.096 Sales, rental, storage, use tax; enterprise
15 zone jobs credit against sales tax.--
16 (1) For the purposes of the credit provided in this
17 section:
18 (a) "Eligible business" means any sole proprietorship,
19 firm, partnership, corporation, bank, savings association,
20 estate, trust, business trust, receiver, syndicate, or other
21 group or combination, or successor business, located in an
22 enterprise zone. The business must demonstrate to the
23 department that the total number of full-time jobs defined
24 under paragraph (d) has increased from the average of the
25 previous 12 months or that the business has added a minimum of
26 five new full-time jobs in an enterprise zone since July 1,
27 2000. An eligible business does not include any business which
28 has claimed the credit permitted under s. 220.181 for any new
29 business employee first beginning employment with the business
30 after July 1, 1995.
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1 (b) "Month" means either a calendar month or the time
2 period from any day of any month to the corresponding day of
3 the next succeeding month or, if there is no corresponding day
4 in the next succeeding month, the last day of the succeeding
5 month.
6 (c) "New employee" means a person residing in an
7 enterprise zone, a qualified Job Training Partnership Act
8 classroom training participant, or a participant in the
9 welfare transition program participant who begins employment
10 with an eligible business after July 1, 1995, and who has not
11 been previously employed within the preceding 12 months by the
12 eligible business, or a successor eligible business, claiming
13 the credit allowed by this section.
14 (d) "Jobs" means full-time positions, as consistent
15 with terms used by the Agency for Workforce Innovation and the
16 United States Department of Labor for purposes of unemployment
17 compensation tax administration and employment estimation
18 resulting directly from a project in this state. This number
19 may not include temporary construction jobs involved with the
20 construction of facilities for the project or any jobs that
21 have previously been included in any application for tax
22 refunds under s. 220.181(1).
23
24 A person shall be deemed to be employed if the person performs
25 duties in connection with the operations of the business on a
26 regular, full-time basis, provided the person is performing
27 such duties for an average of at least 36 hours per week each
28 month, or a part-time basis, provided the person is performing
29 such duties for an average of at least 20 hours per week each
30 month throughout the year. The person must be performing such
31 duties at a business site located in the enterprise zone.
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1 (2)(a) It is the legislative intent to encourage the
2 provision of meaningful employment opportunities which will
3 improve the quality of life of those employed and to encourage
4 economic expansion of enterprise zones and the state.
5 Therefore, beginning January July 1, 2002 1995, upon an
6 affirmative showing by a business to the satisfaction of the
7 department that the requirements of this section have been
8 met, the business shall be allowed a credit against the tax
9 remitted under this chapter.
10 (b) The credit shall be computed as 20 follows:
11 1. Ten percent of the actual monthly wages paid in
12 this state to each new employee hired when a new job has been
13 created, as defined under s. 220.03(1)(ff), unless the
14 business is located within a rural enterprise zone pursuant to
15 s. 290.004(8), in which case the credit shall be 30 percent of
16 the actual monthly wages paid whose wages do not exceed $1,500
17 a month. If no less than 20 percent of the employees of the
18 business are residents of an enterprise zone, excluding
19 temporary and part-time employees, the credit shall be
20 computed as 30 15 percent of the actual monthly wages paid in
21 this state to each new employee hired when a new job has been
22 created, unless the business is located within a rural
23 enterprise zone, in which case the credit shall be 45 percent
24 of the actual monthly wages paid.;
25 2. Five percent of the first $1,500 of actual monthly
26 wages paid in this state for each new employee whose wages
27 exceed $1,500 a month; or
28 3. Fifteen percent of the first $1,500 of actual
29 monthly wages paid in this state for each new employee who is
30 a WAGES Program participant pursuant to chapter 414.
31
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1 For purposes of this paragraph, monthly wages shall be
2 computed as one-twelfth of the expected annual wages paid to
3 such employee. The amount paid as wages to a new employee is
4 the compensation paid to such employee that is subject to
5 unemployment tax. The credit shall be allowed for up to 24 12
6 consecutive months, beginning with the first tax return due
7 pursuant to s. 212.11 after approval by the department.
8 (3) In order to claim this credit, an eligible
9 business must file under oath with the governing body or
10 enterprise zone development agency having jurisdiction over
11 the enterprise zone where the business is located, as
12 applicable, a statement which includes:
13 (a) For each new employee for whom this credit is
14 claimed, the employee's name and place of residence, including
15 the identifying number assigned pursuant to s. 290.0065 to the
16 enterprise zone in which the employee resides if the new
17 employee is a person residing in an enterprise zone, and, if
18 applicable, documentation that the employee is a qualified Job
19 Training Partnership Act classroom training participant or a
20 welfare transition program participant.
21 (b) If applicable, the name and address of each
22 permanent employee of the business, including, for each
23 employee who is a resident of an enterprise zone, the
24 identifying number assigned pursuant to s. 290.0065 to the
25 enterprise zone in which the employee resides.
26 (c) The name and address of the eligible business.
27 (d) The starting salary or hourly wages paid to the
28 new employee.
29 (e) Demonstration to the department that the total
30 number of full-time jobs defined under paragraph (1)(d) has
31
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1 increased in an enterprise zone from the average of the
2 previous 12 months.
3 (f)(e) The identifying number assigned pursuant to s.
4 290.0065 to the enterprise zone in which the business is
5 located.
6 (g)(f) Whether the business is a small business as
7 defined by s. 288.703(1).
8 (h)(g) Within 10 working days after receipt of an
9 application, the governing body or enterprise zone development
10 agency shall review the application to determine if it
11 contains all the information required pursuant to this
12 subsection and meets the criteria set out in this section. The
13 governing body or agency shall certify all applications that
14 contain the information required pursuant to this subsection
15 and meet the criteria set out in this section as eligible to
16 receive a credit. If applicable, the governing body or agency
17 shall also certify if 20 percent of the employees of the
18 business are residents of an enterprise zone, excluding
19 temporary and part-time employees. The certification shall be
20 in writing, and a copy of the certification shall be
21 transmitted to the executive director of the Department of
22 Revenue. The business shall be responsible for forwarding a
23 certified application to the department within the time
24 specified in paragraph (i) (h).
25 (i)(h) All applications for a credit pursuant to this
26 section must be submitted to the Enterprise Zone Development
27 Agency department within 6 4 months after the new employee is
28 hired.
29 (4) Within 10 working days after receipt of a
30 completed application for a credit authorized in this section,
31 the department shall inform the business that the application
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1 has been approved. The credit may be taken on the first return
2 due after receipt of approval from the department.
3 (5)(4) In the event the application is incomplete or
4 insufficient to support the credit authorized in this section,
5 the department shall deny the credit and notify the business
6 of that fact. The business may reapply for this credit.
7 (6)(5) The credit provided in this section does not
8 apply:
9 (a) For any new employee who is an owner, partner, or
10 stockholder of an eligible business.
11 (b) For any new employee who is employed for any
12 period less than 3 full calendar months.
13 (7)(6) The credit provided in this section shall not
14 be allowed for any month in which the tax due for such period
15 or the tax return required pursuant to s. 212.11 for such
16 period is delinquent.
17 (8)(7) In the event an eligible business has a credit
18 larger than the amount owed the state on the tax return for
19 the time period in which the credit is claimed, the amount of
20 the credit for that time period shall be the amount owed the
21 state on that tax return.
22 (9)(8) Any business which has claimed this credit
23 shall not be allowed any credit under the provisions of s.
24 220.181 for any new employee beginning employment after July
25 1, 1995.
26 (10)(9) It shall be the responsibility of each
27 business to affirmatively demonstrate to the satisfaction of
28 the department that it meets the requirements of this section.
29 (11)(10) Any person who fraudulently claims this
30 credit is liable for repayment of the credit plus a mandatory
31 penalty of 100 percent of the credit plus interest at the rate
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1 provided in this chapter, and such person is guilty of a
2 misdemeanor of the second degree, punishable as provided in s.
3 775.082 or s. 775.083.
4 (12)(11) The provisions of this section, except for
5 subsection (11) (10), shall expire and be void on December 31,
6 2005.
7 Section 3. Effective January 1, 2002, subsection (1)
8 of section 212.098, Florida Statutes, is amended to read:
9 212.098 Rural Job Tax Credit Program.--
10 (1) As used in this section, the term:
11 (a) "Eligible business" means any sole proprietorship,
12 firm, partnership, or corporation that is located in a
13 qualified county and is predominantly engaged in, or is
14 headquarters for a business predominantly engaged in,
15 activities usually provided for consideration by firms
16 classified within the following standard industrial
17 classifications: SIC 01-SIC 09 (agriculture, forestry, and
18 fishing); SIC 20-SIC 39 (manufacturing); SIC 422 (public
19 warehousing and storage); SIC 70 (hotels and other lodging
20 places); SIC 7391 (research and development); SIC 7992 (public
21 golf courses); and SIC 7996 (amusement parks). A targeted
22 industry for the Qualified Target Industry Tax Refund Program
23 pursuant to s. 288.106 is also an eligible business. A call
24 center or similar customer service operation that services a
25 multistate market or an international market is also an
26 eligible business. In addition, the Office of Tourism, Trade,
27 and Economic Development may, as part of its final budget
28 request submitted pursuant to s. 216.023, recommend additions
29 to or deletions from the list of standard industrial
30 classifications used to determine an eligible business, and
31 the Legislature may implement such recommendations. Excluded
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1 from eligible receipts are receipts from retail sales, except
2 such receipts for hotels and other lodging places classified
3 in SIC 70, public golf courses in SIC 7992, and amusement
4 parks in SIC 7996. For purposes of this paragraph, the term
5 "predominantly" means that more than 50 percent of the
6 business's gross receipts from all sources is generated by
7 those activities usually provided for consideration by firms
8 in the specified standard industrial classification. The
9 determination of whether the business is located in a
10 qualified county and the tier ranking of that county must be
11 based on the date of application for the credit under this
12 section. Commonly owned and controlled entities are to be
13 considered a single business entity.
14 (b) "Qualified employee" means any employee of an
15 eligible business who performs duties in connection with the
16 operations of the business on a regular, full-time basis for
17 an average of at least 36 hours per week for at least 3 months
18 within the qualified county in which the eligible business is
19 located. An owner or partner of the eligible business is not a
20 qualified employee.
21 (c) "Qualified county" means a county that has a
22 population of fewer than 75,000 persons, or any county that
23 has a population of 100,000 or less and is contiguous to a
24 county that has a population of less than 75,000, selected in
25 the following manner: every third year, the Office of
26 Tourism, Trade, and Economic Development shall rank and tier
27 the state's counties according to the following four factors:
28 1. Highest unemployment rate for the most recent
29 36-month period.
30 2. Lowest per capita income for the most recent
31 36-month period.
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1 3. Highest percentage of residents whose incomes are
2 below the poverty level, based upon the most recent data
3 available.
4 4. Average weekly manufacturing wage, based upon the
5 most recent data available.
6
7 Tier-one qualified counties are those ranked 1-5 and represent
8 the state's least-developed counties according to this
9 ranking. Tier-two qualified counties are those ranked 6-10,
10 and tier-three counties are those ranked 11-17.
11 Notwithstanding this definition, "qualified county" also means
12 a county that contains an area that has been designated as a
13 federal Enterprise Community pursuant to the 1999 Agricultural
14 Appropriations Act. Such a designated area shall be ranked in
15 tier three until the areas are reevaluated by the Office of
16 Tourism, Trade, and Economic Development.
17 (d) "New business" means any eligible business first
18 beginning operation on a site in a qualified county and
19 clearly separate from any other commercial or business
20 operation of the business entity within a qualified county. A
21 business entity that operated an eligible business within a
22 qualified county within the 48 months before the period
23 provided for application by subsection (2) is not considered a
24 new business.
25 (e) "Existing business" means any eligible business
26 that does not meet the criteria for a new business.
27 Section 4. Reduction or waiver of financial match
28 requirements.--Notwithstanding any other law, the member
29 agencies and organizations of the Rural Economic Development
30 Initiative (REDI), as defined in section 288.0656(6)(a),
31 Florida Statutes, shall review the financial match
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1 requirements for projects in rural areas as defined in section
2 288.0656(2)(b), Florida Statutes.
3 (1) Each agency and organization shall develop a
4 proposal to waive or reduce the match requirement for rural
5 areas.
6 (2) Agencies and organizations shall ensure that all
7 proposals are submitted to the Office of Tourism, Trade, and
8 Economic Development for review by the REDI agencies.
9 (3) These proposals shall be delivered to the Office
10 of Tourism, Trade, and Economic Development for distribution
11 to the REDI agencies and organizations. A meeting of REDI
12 agencies and organizations must be called within 30 days after
13 receipt of such proposals for REDI comment and recommendations
14 on each proposal.
15 (4) Waivers and reductions must be requested by the
16 county or community, and such county or community must have
17 three or more of the factors identified in section
18 288.0656(2)(a), Florida Statutes.
19 (5) Any other funds available to the project may be
20 used for financial match of federal programs when there is
21 fiscal hardship and the match requirements may not be waived
22 or reduced.
23 (6) When match requirements are not reduced or
24 eliminated, donations of land, though usually not recognized
25 as an in-kind match, may be permitted.
26 (7) To the fullest extent possible, agencies and
27 organizations shall expedite the rule adoption and amendment
28 process if necessary to incorporate the reduction in match by
29 rural areas in fiscal distress.
30
31
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1 (8) REDI shall include in its annual report an
2 evaluation on the status of changes to rules, number of awards
3 made with waivers, and recommendations for future changes.
4 Section 5. Subsection (1) of section 220.03, Florida
5 Statutes, is amended to read:
6 220.03 Definitions.--
7 (1) SPECIFIC TERMS.--When used in this code, and when
8 not otherwise distinctly expressed or manifestly incompatible
9 with the intent thereof, the following terms shall have the
10 following meanings:
11 (a) "Ad valorem taxes paid" means 96 percent of
12 property taxes levied for operating purposes and does not
13 include interest, penalties, or discounts foregone. In
14 addition, the term "ad valorem taxes paid," for purposes of
15 the credit in s. 220.182, means the ad valorem tax paid on new
16 or additional real or personal property acquired to establish
17 a new business or facilitate a business expansion, including
18 pollution and waste control facilities, or any part thereof,
19 and including one or more buildings or other structures,
20 machinery, fixtures, and equipment. The provisions of this
21 paragraph shall expire and be void on June 30, 2005.
22 (b) "Affiliated group of corporations" means two or
23 more corporations which constitute an affiliated group of
24 corporations as defined in s. 1504(a) of the Internal Revenue
25 Code.
26 (c) "Business" or "business firm" means any business
27 entity authorized to do business in this state as defined in
28 paragraph (e), and any bank or savings and loan association as
29 defined in s. 220.62, subject to the tax imposed by the
30 provisions of this chapter. The provisions of this paragraph
31 shall expire and be void on June 30, 2005.
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1 (d) "Community contribution" means the grant by a
2 business firm of any of the following items:
3 1. Cash or other liquid assets.
4 2. Real property.
5 3. Goods or inventory.
6 4. Other physical resources as identified by the
7 department.
8
9 The provisions of this paragraph shall expire and be void on
10 June 30, 2005.
11 (e) "Corporation" includes all domestic corporations;
12 foreign corporations qualified to do business in this state or
13 actually doing business in this state; joint-stock companies;
14 limited liability companies, under chapter 608; common-law
15 declarations of trust, under chapter 609; corporations not for
16 profit, under chapter 617; agricultural cooperative marketing
17 associations, under chapter 618; professional service
18 corporations, under chapter 621; foreign unincorporated
19 associations, under chapter 622; private school corporations,
20 under chapter 623; foreign corporations not for profit which
21 are carrying on their activities in this state; and all other
22 organizations, associations, legal entities, and artificial
23 persons which are created by or pursuant to the statutes of
24 this state, the United States, or any other state, territory,
25 possession, or jurisdiction. The term "corporation" does not
26 include proprietorships, even if using a fictitious name;
27 partnerships of any type, as such; limited liability companies
28 that are taxable as partnerships for federal income tax
29 purposes; state or public fairs or expositions, under chapter
30 616; estates of decedents or incompetents; testamentary
31 trusts; or private trusts.
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1 (f) "Department" means the Department of Revenue of
2 this state.
3 (g) "Director" means the executive director of the
4 Department of Revenue and, when there has been an appropriate
5 delegation of authority, the executive director's delegate.
6 (h) "Earned," "accrued," "paid," or "incurred" shall
7 be construed according to the method of accounting upon the
8 basis of which a taxpayer's income is computed under this
9 code.
10 (i) "Emergency," as used in s. 220.02 and in paragraph
11 (u) of this subsection, means occurrence of widespread or
12 severe damage, injury, or loss of life or property proclaimed
13 pursuant to s. 14.022 or declared pursuant to s. 252.36. The
14 provisions of this paragraph shall expire and be void on June
15 30, 2005.
16 (j) "Enterprise zone" means an area in the state
17 designated pursuant to s. 290.0065. The provisions of this
18 paragraph shall expire and be void on June 30, 2005.
19 (k) "Expansion of an existing business," for the
20 purposes of the enterprise zone property tax credit, means any
21 business entity authorized to do business in this state as
22 defined in paragraph (e), and any bank or savings and loan
23 association as defined in s. 220.62, subject to the tax
24 imposed by the provisions of this chapter, located in an
25 enterprise zone, which expands by or through additions to real
26 and personal property and which establishes five or more new
27 jobs to employ five or more additional full-time employees at
28 such location. The provisions of this paragraph shall expire
29 and be void on June 30, 2005.
30 (l) "Fiscal year" means an accounting period of 12
31 months or less ending on the last day of any month other than
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1 December or, in the case of a taxpayer with an annual
2 accounting period of 52-53 weeks under s. 441(f) of the
3 Internal Revenue Code, the period determined under that
4 subsection.
5 (m) "Includes" or "including," when used in a
6 definition contained in this code, shall not be deemed to
7 exclude other things otherwise within the meaning of the term
8 defined.
9 (n) "Internal Revenue Code" means the United States
10 Internal Revenue Code of 1986, as amended and in effect on
11 January 1, 2000, except as provided in subsection (3).
12 (o) "Local government" means any county or
13 incorporated municipality in the state. The provisions of this
14 paragraph shall expire and be void on June 30, 2005.
15 (p) "New business," for the purposes of the enterprise
16 zone property tax credit, means any business entity authorized
17 to do business in this state as defined in paragraph (e), or
18 any bank or savings and loan association as defined in s.
19 220.62, subject to the tax imposed by the provisions of this
20 chapter, first beginning operations on a site located in an
21 enterprise zone and clearly separate from any other commercial
22 or industrial operations owned by the same entity, bank, or
23 savings and loan association and which establishes five or
24 more new jobs to employ five or more additional full-time
25 employees at such location. The provisions of this paragraph
26 shall expire and be void on June 30, 2005.
27 (q) "New employee," for the purposes of the enterprise
28 zone jobs credit, means a person residing in an enterprise
29 zone, a qualified Job Training Partnership Act classroom
30 training participant, or a WAGES Program participant in the
31 welfare transition program who is employed at a business
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1 located in an enterprise zone who begins employment in the
2 operations of the business after July 1, 1995, and who has not
3 been previously employed within the preceding 12 months by the
4 business or a successor business claiming the credit pursuant
5 to s. 220.181. A person shall be deemed to be employed by such
6 a business if the person performs duties in connection with
7 the operations of the business on a full-time basis, provided
8 she or he is performing such duties for an average of at least
9 36 hours per week each month, or a part-time basis, provided
10 she or he is performing such duties for an average of at least
11 20 hours per week each month throughout the year. The person
12 must be performing such duties at a business site located in
13 an enterprise zone. The provisions of this paragraph shall
14 expire and be void on June 30, 2005.
15 (r) "Nonbusiness income" means rents and royalties
16 from real or tangible personal property, capital gains,
17 interest, dividends, and patent and copyright royalties, to
18 the extent that they do not arise from transactions and
19 activities in the regular course of the taxpayer's trade or
20 business. The term "nonbusiness income" does not include
21 income from tangible and intangible property if the
22 acquisition, management, and disposition of the property
23 constitute integral parts of the taxpayer's regular trade or
24 business operations, or any amounts which could be included in
25 apportionable income without violating the due process clause
26 of the United States Constitution. For purposes of this
27 definition, "income" means gross receipts less all expenses
28 directly or indirectly attributable thereto. Functionally
29 related dividends are presumed to be business income.
30 (s) "Partnership" includes a syndicate, group, pool,
31 joint venture, or other unincorporated organization through or
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1 by means of which any business, financial operation, or
2 venture is carried on, including a limited partnership; and
3 the term "partner" includes a member having a capital or a
4 profits interest in a partnership.
5 (t) "Project" means any activity undertaken by an
6 eligible sponsor, as defined in s. 220.183(2)(c), which is
7 designed to construct, improve, or substantially rehabilitate
8 housing that is affordable to low-income or very-low-income
9 households as defined in s. 420.9071(19) and (28); designed to
10 provide commercial, industrial, or public resources and
11 facilities; or designed to improve entrepreneurial and
12 job-development opportunities for low-income persons. A
13 project may be the investment necessary to increase access to
14 high-speed broadband capability in rural communities with
15 enterprise zones, including projects that result in
16 improvements to communications assets that are owned by a
17 business. This paragraph does not preclude projects that
18 propose to construct or rehabilitate low-income or
19 very-low-income housing on scattered sites. The Office of
20 Tourism, Trade, and Economic Development may reserve up to 50
21 percent of the available annual tax credits under s. 220.181
22 for housing for very-low-income households pursuant to s.
23 420.9071(28) for the first 6 months of the fiscal year. With
24 respect to housing, contributions may be used to pay the
25 following eligible project-related activities:
26 1. Project development, impact, and management fees
27 for low-income or very-low-income housing projects;
28 2. Down payment and closing costs for eligible
29 persons, as defined in s. 420.9071(19) and (28);
30 3. Administrative costs, including housing counseling
31 and marketing fees, not to exceed 10 percent of the community
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1 contribution, directly related to low-income or
2 very-low-income projects; and
3 4. Removal of liens recorded against residential
4 property by municipal, county, or special-district local
5 governments when satisfaction of the lien is a necessary
6 precedent to the transfer of the property to an eligible
7 person, as defined in s. 420.9071(19) and (28), for the
8 purpose of promoting home ownership. Contributions for lien
9 removal must be received from a nonrelated third party.
10 "Project" means any activity undertaken by an eligible
11 sponsor, as defined in s. 220.183(2)(c), which is designed to
12 construct, improve, or substantially rehabilitate housing or
13 commercial, industrial, or public resources and facilities or
14 to improve entrepreneurial and job-development opportunities
15 for low-income persons.
16
17 The provisions of this paragraph shall expire and be void on
18 June 30, 2005.
19 (u) "Rebuilding of an existing business" means
20 replacement or restoration of real or tangible property
21 destroyed or damaged in an emergency, as defined in paragraph
22 (i), after July 1, 1995, in an enterprise zone, by a business
23 entity authorized to do business in this state as defined in
24 paragraph (e), or a bank or savings and loan association as
25 defined in s. 220.62, subject to the tax imposed by the
26 provisions of this chapter, located in the enterprise zone.
27 The provisions of this paragraph shall expire and be void on
28 June 30, 2005.
29 (v) "Regulations" includes rules promulgated, and
30 forms prescribed, by the department.
31
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1 (w) "Returns" includes declarations of estimated tax
2 required under this code.
3 (x) "Secretary" means the secretary of the Department
4 of Commerce. The provisions of this paragraph shall expire and
5 be void on June 30, 2005.
6 (y) "State," when applied to a jurisdiction other than
7 Florida, means any state of the United States, the District of
8 Columbia, the Commonwealth of Puerto Rico, any territory or
9 possession of the United States, and any foreign country, or
10 any political subdivision of any of the foregoing.
11 (z) "Taxable year" means the calendar or fiscal year
12 upon the basis of which net income is computed under this
13 code, including, in the case of a return made for a fractional
14 part of a year, the period for which such return is made.
15 (aa) "Taxpayer" means any corporation subject to the
16 tax imposed by this code, and includes all corporations for
17 which a consolidated return is filed under s. 220.131.
18 However, "taxpayer" does not include a corporation having no
19 individuals (including individuals employed by an affiliate)
20 receiving compensation in this state as defined in s. 220.15
21 when the only property owned or leased by said corporation
22 (including an affiliate) in this state is located at the
23 premises of a printer with which it has contracted for
24 printing, if such property consists of the final printed
25 product, property which becomes a part of the final printed
26 product, or property from which the printed product is
27 produced.
28 (bb) "Functionally related dividends" include the
29 following types of dividends:
30 1. Those received from a subsidiary of which the
31 voting stock is more than 50 percent owned or controlled by
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1 the taxpayer or members of its affiliated group and which is
2 engaged in the same general line of business.
3 2. Those received from any corporation which is either
4 a significant source of supply for the taxpayer or its
5 affiliated group or a significant purchaser of the output of
6 the taxpayer or its affiliated group, or which sells a
7 significant part of its output or obtains a significant part
8 of its raw materials or input from the taxpayer or its
9 affiliated group. "Significant" means an amount of 15 percent
10 or more.
11 3. Those resulting from the investment of working
12 capital or some other purpose in furtherance of the taxpayer
13 or its affiliated group.
14
15 However, dividends not otherwise subject to tax under this
16 chapter are excluded.
17 (cc) "Child care facility startup costs" means
18 expenditures for substantial renovation, equipment, including
19 playground equipment and kitchen appliances and cooking
20 equipment, real property, including land and improvements, and
21 for reduction of debt, made in connection with a child care
22 facility as defined by s. 402.302, or any facility providing
23 daily care to children who are mildly ill, which is located in
24 this state on the taxpayer's premises and used by the
25 employees of the taxpayer.
26 (dd) "Operation of a child care facility" means
27 operation of a child care facility as defined by s. 402.302,
28 or any facility providing daily care to children who are
29 mildly ill, which is located in this state within 5 miles of
30 at least one place of business of the taxpayer and which is
31 used by the employees of the taxpayer.
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1 (ee) "Citrus processing company" means a corporation
2 which, during the 60-month period ending on December 31, 1997,
3 had derived more than 50 percent of its total gross receipts
4 from the processing of citrus products and the manufacture of
5 juices.
6 (ff) "New job has been created" means that the total
7 number of full-time jobs defined under s. 212.096(1)(d) has
8 increased in an enterprise zone from the average of the
9 previous 12 months, as demonstrated to the department by a
10 business located in the enterprise zone.
11 Section 6. Effective January 1, 2002, subsections (1)
12 and (2) of section 220.181, Florida Statutes, are amended to
13 read:
14 220.181 Enterprise zone jobs credit.--
15 (1)(a) Beginning January July 1, 2002 1995, there
16 shall be allowed a credit against the tax imposed by this
17 chapter to any business located in an enterprise zone which
18 demonstrates to the department that the total number of
19 full-time jobs defined under s. 212.096(1)(d) has increased
20 from the average of the previous 12 months or that the
21 business has added a minimum of five new full-time jobs in an
22 enterprise zone since July 1, 2000 employs one or more new
23 employees. The credit shall be computed as 20 follows:
24 1. Ten percent of the actual monthly wages paid in
25 this state to each new employee hired when a new job has been
26 created, as defined under s. 220.03(1)(ff), unless the
27 business is located in a rural enterprise zone, pursuant to s.
28 290.004(8), in which case the credit shall be 30 percent of
29 the actual monthly wages paid whose wages do not exceed $1,500
30 a month. If no less than 20 percent of the employees of the
31 business are residents of an enterprise zone, excluding
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1 temporary and part-time employees, the credit shall be
2 computed as 30 15 percent of the actual monthly wages paid in
3 this state to each new employee hired when a new job has been
4 created, unless the business is located in a rural enterprise
5 zone, in which case the credit shall be 45 percent of the
6 actual monthly wages paid, for a period of up to 24 12
7 consecutive months.;
8 2. Five percent of the first $1,500 of actual monthly
9 wages paid in this state for each new employee whose wages
10 exceed $1,500 a month; or
11 3. Fifteen percent of the first $1,500 of actual
12 monthly wages paid in this state for each new employee who is
13 a welfare transition program participant.
14 (b) This credit applies only with respect to wages
15 subject to unemployment tax and does not apply for any new
16 employee who is employed for any period less than 3 full
17 months.
18 (c) If this credit is not fully used in any one year,
19 the unused amount may be carried forward for a period not to
20 exceed 5 years. The carryover credit may be used in a
21 subsequent year when the tax imposed by this chapter for such
22 year exceeds the credit for such year after applying the other
23 credits and unused credit carryovers in the order provided in
24 s. 220.02(8).
25 (2) When filing for an enterprise zone jobs credit, a
26 business must file under oath with the governing body or
27 enterprise zone development agency having jurisdiction over
28 the enterprise zone where the business is located, as
29 applicable, a statement which includes:
30 (a) For each new employee for whom this credit is
31 claimed, the employee's name and place of residence during the
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1 taxable year, including the identifying number assigned
2 pursuant to s. 290.0065 to the enterprise zone in which the
3 new employee resides if the new employee is a person residing
4 in an enterprise zone, and, if applicable, documentation that
5 the employee is a qualified Job Training Partnership Act
6 classroom training participant or a welfare transition program
7 participant.
8 (b) If applicable, the name and address of each
9 permanent employee of the business, including, for each
10 employee who is a resident of an enterprise zone, the
11 identifying number assigned pursuant to s. 290.0065 to the
12 enterprise zone in which the employee resides.
13 (c) The name and address of the business.
14 (d) The identifying number assigned pursuant to s.
15 290.0065 to the enterprise zone in which the eligible business
16 is located.
17 (e) The salary or hourly wages paid to each new
18 employee claimed.
19 (f) Demonstration to the department that the total
20 number of full-time jobs defined under s. 212.096(1)(d) has
21 increased from the average of the previous 12 months.
22 (g)(f) Whether the business is a small business as
23 defined by s. 288.703(1).
24 Section 7. Subsections (1), (2), (3), and (4) of
25 section 220.183, Florida Statutes, are amended to read:
26 220.183 Community contribution tax credit.--
27 (1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
28 CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
29 SPENDING.--
30
31
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1 (a) There shall be allowed a credit of 50 percent of a
2 community contribution against any tax due for a taxable year
3 under this chapter.
4 (b) No business firm shall receive more than $200,000
5 in annual tax credits for all approved community contributions
6 made in any one year.
7 (c) The total amount of tax credit which may be
8 granted for all programs approved under this section, s.
9 212.08(5)(q), and s. 624.5105 is $20 $10 million annually.
10 (d) All proposals for the granting of the tax credit
11 shall require the prior approval of the Office of Tourism,
12 Trade, and Economic Development.
13 (e) If the credit granted pursuant to this section is
14 not fully used in any one year because of insufficient tax
15 liability on the part of the business firm, the unused amount
16 may be carried forward for a period not to exceed 5 years. The
17 carryover credit may be used in a subsequent year when the tax
18 imposed by this chapter for such year exceeds the credit for
19 such year under this section after applying the other credits
20 and unused credit carryovers in the order provided in s.
21 220.02(8).
22 (f) A taxpayer who files a Florida consolidated return
23 as a member of an affiliated group pursuant to s. 220.131(1)
24 may be allowed the credit on a consolidated return basis.
25 (g) A taxpayer who is eligible to receive the credit
26 provided for in s. 624.5105 is not eligible to receive the
27 credit provided by this section.
28 (2) ELIGIBILITY REQUIREMENTS.--
29 (a) All community contributions by a business firm
30 shall be in the form specified in s. 220.03(1)(d).
31
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1 (b) All community contributions must be reserved
2 exclusively for use in projects as defined in s. 220.03(1)(t).
3 The Office of Tourism, Trade, and Economic Development may
4 reserve up to 50 percent of the available annual tax credits
5 for housing for very-low-income households pursuant to s.
6 420.9071(28), for the first 6 months of the fiscal year.
7 (c) The project must be undertaken by an "eligible
8 sponsor," defined here as:
9 1. A community action program;
10 2. A nonprofit community-based community development
11 organization whose mission is the provision of housing for
12 low-income or very-low-income households or increasing
13 entrepreneurial and job-development opportunities for
14 low-income persons corporation;
15 3. A neighborhood housing services corporation;
16 4. A local housing authority, created pursuant to
17 chapter 421;
18 5. A community redevelopment agency, created pursuant
19 to s. 163.356;
20 6. The Florida Industrial Development Corporation;
21 7. An historic preservation district agency or
22 organization;
23 8. A regional workforce board private industry
24 council;
25 9. A direct-support organization as provided in s.
26 240.551;
27 10. An enterprise zone development agency created
28 pursuant to s. 290.0056 s. 290.0057; or
29 11. A community-based organization incorporated under
30 chapter 617 which is recognized as educational, charitable, or
31 scientific pursuant to s. 501(c)(3) of the Internal Revenue
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1 Code and whose by-laws and articles of incorporation include
2 affordable housing, economic development, or community
3 development as the primary mission of the corporation;
4 12. Units of local government;
5 13. Units of state government; or
6 14.11. Such other agency as the Office of Tourism,
7 Trade, and Economic Development may, from time to time,
8 designate by rule.
9
10 In no event shall a contributing business firm have a
11 financial interest in the eligible sponsor.
12 (d) The project shall be located in an area designated
13 as an enterprise zone or a Front Porch Florida Community
14 pursuant to s. 14.2015(9)(b) pursuant to s. 290.0065. Any
15 project designed to construct or rehabilitate housing for
16 low-income or very-low-income households as defined in s.
17 420.9071(19) and (28) low-income housing is exempt from the
18 area requirement of this paragraph. This section does not
19 preclude projects that propose to construct or rehabilitate
20 housing for low-income or very-low-income households on
21 scattered sites. Any project designed to provide increased
22 access to high-speed broadband capabilities which includes
23 coverage of a rural enterprise zone may locate the project's
24 infrastructure in any area of a rural county.
25 (3) APPLICATION REQUIREMENTS.--
26 (a) Any eligible sponsor wishing to participate in
27 this program must submit a proposal to the Office of Tourism,
28 Trade, and Economic Development which sets forth the sponsor,
29 the project, the area in which the project is located, and
30 such supporting information as may be prescribed by rule. The
31 proposal shall also contain a resolution from the local
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1 governmental unit in which it is located certifying that the
2 project is consistent with local plans and regulations.
3 (b) Any business wishing to participate in this
4 program must submit an application for tax credit to the
5 Office of Tourism, Trade, and Economic Development, which
6 application sets forth the sponsor; the project; and the type,
7 value, and purpose of the contribution. The sponsor shall
8 verify the terms of the application and indicate its receipt
9 of willingness to receive the contribution, which verification
10 indicate its willingness to receive the contribution, which
11 verification must shall be in writing and shall accompany the
12 application for tax credit.
13 (c) The business firm must submit a separate
14 application for tax credit for each individual contribution
15 that which it makes proposes to contribute to each individual
16 project.
17 (4) ADMINISTRATION.--
18 (a) The Office of Tourism, Trade, and Economic
19 Development has authority to adopt rules pursuant to ss.
20 120.536(1) and 120.54 to implement the provisions of this
21 section, including rules for the approval or disapproval of
22 proposals by a person business firms.
23 (b) The decision of the Office of Tourism, Trade, and
24 Economic Development shall be in writing, and, if approved,
25 the notification must proposal shall state the maximum credit
26 allowable to the business firm. A copy of the decision shall
27 be transmitted to the executive director of the Department of
28 Revenue, who shall apply such credit to the tax liability of
29 the business firm.
30 (c) The Office of Tourism, Trade, and Economic
31 Development shall periodically monitor all projects in a
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1 manner consistent with available resources to ensure that
2 resources are utilized in accordance with this section;
3 however, each project shall be reviewed no less often than
4 once every 2 years.
5 (d) The Department of Revenue has authority to adopt
6 rules pursuant to ss. 120.536(1) and 120.54 to implement the
7 provisions of this section.
8 (e) The Office of Tourism, Trade, and Economic
9 Development shall, in consultation with the Department of
10 Community Affairs, the Florida Housing Finance Corporation,
11 and the statewide and regional housing and financial
12 intermediaries, market the availability of the community
13 contribution tax credit program to community-based
14 organizations.
15 Section 8. Section 288.018, Florida Statutes, is
16 amended to read:
17 288.018 Regional Rural Development Grants Program.--
18 (1) The Office of Tourism, Trade, and Economic
19 Development shall establish a matching grant program to
20 provide funding to regionally based economic development
21 organizations representing rural counties and communities for
22 the purpose of building the professional capacity of their
23 organizations. The Office of Tourism, Trade, and Economic
24 Development is authorized to approve, on an annual basis,
25 grants to such regionally based economic development
26 organizations. The maximum amount an organization may receive
27 in any year will be $35,000, or $100,000 in a rural area of
28 critical economic concern recommended by the Rural Economic
29 Development Initiative and designated by the Governor, and
30 must be matched each year by an equivalent amount of nonstate
31 resources.
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1 (2) In approving the participants, the Office of
2 Tourism, Trade, and Economic Development shall consider the
3 demonstrated need of the applicant for assistance and require
4 the following:
5 (a) Documentation of official commitments of support
6 from each of the units of local government represented by the
7 regional organization.
8 (b) Demonstration that each unit of local government
9 has made a financial or in-kind commitment to the regional
10 organization.
11 (c) Demonstration that the private sector has made
12 financial or in-kind commitments to the regional organization.
13 (d) Demonstration that the organization is in
14 existence and actively involved in economic development
15 activities serving the region.
16 (e) Demonstration of the manner in which the
17 organization is or will coordinate its efforts with those of
18 other local and state organizations.
19 (3) The Office of Tourism, Trade, and Economic
20 Development may also contract for the development of an
21 enterprise zone web portal or web sites for each enterprise
22 zone which will be used to market the program for job creation
23 in disadvantaged urban and rural enterprise zones. Each
24 enterprise zone web page should include downloadable links to
25 state forms and information, as well as local message boards
26 that help businesses and residents receive information
27 concerning zone boundaries, job openings, zone programs, and
28 neighborhood improvement activities.
29 (4)(3) The Office of Tourism, Trade, and Economic
30 Development may expend up to $750,000 $600,000 each fiscal
31 year from funds appropriated to the Rural Community
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1 Development Revolving Loan Fund for the purposes outlined in
2 this section. The Office of Tourism, Trade, and Economic
3 Development may contract with Enterprise Florida, Inc., for
4 the administration of the purposes specified in this section.
5 Funds released to Enterprise Florida, Inc., for this purpose
6 shall be released quarterly and shall be calculated based on
7 the applications in process.
8 Section 9. Section 288.019, Florida Statutes, is
9 created to read:
10 288.019 Rural considerations in grant review and
11 evaluation processes.--Notwithstanding any other law, and to
12 the fullest extent possible, the member agencies and
13 organizations of the Rural Economic Development Initiative
14 (REDI) as defined in s. 288.0656(6)(a) shall review all grant
15 and loan application evaluation criteria to ensure the fullest
16 access for rural counties as defined in s. 288.0656(2)(b) to
17 resources available throughout the state.
18 (1) Each REDI agency and organization shall review all
19 evaluation and scoring procedures and develop modifications to
20 those procedures which minimize the impact of a project within
21 a rural area.
22 (2) Evaluation criteria and scoring procedures must
23 provide for an appropriate ranking based on the proportionate
24 impact that projects have on a rural area when compared with
25 similar project impacts on an urban area.
26 (3) Evaluation criteria and scoring procedures must
27 recognize the disparity of available fiscal resources for an
28 equal level of financial support from an urban county and a
29 rural county.
30
31
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1 (a) The evaluation criteria should weight contribution
2 in proportion to the amount of funding available at the local
3 level.
4 (b) In-kind match should be allowed and applied as
5 financial match when a county is experiencing financial
6 distress through elevated unemployment at a rate in excess of
7 the state's average by 5 percentage points or because of the
8 loss of its ad valorem base.
9 (4) For existing programs, the modified evaluation
10 criteria and scoring procedure must be delivered to the Office
11 of Tourism, Trade, and Economic Development for distribution
12 to the REDI agencies and organizations. The REDI agencies and
13 organizations shall review and make comments. Future rules,
14 programs, evaluation criteria, and scoring processes must be
15 brought before a REDI meeting for review, discussion, and
16 recommendation to allow rural counties fuller access to the
17 state's resources.
18 Section 10. Subsection (2) of section 288.065, Florida
19 Statutes, is amended to read:
20 288.065 Rural Community Development Revolving Loan
21 Fund.--
22 (2) The program shall provide for long-term loans,
23 loan guarantees, and loan loss reserves to units of local
24 governments, or economic development organizations
25 substantially underwritten by a unit of local government,
26 within counties with populations of 75,000 or less, or any
27 county that has a population of 100,000 or less and is
28 contiguous to a county with a population of 75,000 or less, as
29 determined by the most recent official estimate pursuant to s.
30 186.901, residing in incorporated and unincorporated areas of
31 the county, or to units of local government, or economic
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1 development organizations substantially underwritten by a unit
2 of local government, within a rural area of critical economic
3 concern. Requests for loans shall be made by application to
4 the Office of Tourism, Trade, and Economic Development. Loans
5 shall be made pursuant to agreements specifying the terms and
6 conditions agreed to between the applicant local government
7 and the Office of Tourism, Trade, and Economic Development.
8 The loans shall be the legal obligations of the applicant
9 local government. All repayments of principal and interest
10 shall be returned to the loan fund and made available for
11 loans to other applicants. However, in a rural area of
12 critical economic concern designated by the Governor, and upon
13 approval by the Office of Tourism, Trade, and Economic
14 Development, repayments of principal and interest may be
15 retained by the applicant a unit of local government if such
16 repayments are dedicated and matched to fund regionally based
17 economic development organizations representing the rural area
18 of critical economic concern.
19 Section 11. Subsection (6) of section 288.0656,
20 Florida Statutes, is amended to read:
21 288.0656 Rural Economic Development Initiative.--
22 (6)(a) By No later than August 1 of each year, 1999,
23 the head of each of the following agencies and organizations
24 shall designate a high-level staff person from within the
25 agency or organization to serve as the REDI representative for
26 the agency or organization:
27 1. The Department of Community Affairs.
28 2. The Department of Transportation.
29 3. The Department of Environmental Protection.
30 4. The Department of Agriculture and Consumer
31 Services.
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1 5. The Department of State.
2 6. The Department of Health.
3 7. The Department of Children and Family Services.
4 8. The Department of Corrections.
5 9. The Agency for Workforce Innovation Department of
6 Labor and Employment Security.
7 10. The Department of Education.
8 11. The Department of Juvenile Justice.
9 12.11. The Fish and Wildlife Conservation Commission.
10 13.12. Each water management district.
11 14.13. Enterprise Florida, Inc.
12 15. Workforce Florida, Inc.
13 16.14. The Florida Commission on Tourism or VISIT
14 Florida.
15 17.15. The Florida Regional Planning Council
16 Association.
17 18.16. The Florida State Rural Development Council.
18 19.17. The Institute of Food and Agricultural Sciences
19 (IFAS).
20
21 An alternate for each designee shall also be chosen, and the
22 names of the designees and alternates shall be sent to the
23 director of the Office of Tourism, Trade, and Economic
24 Development.
25 (b) Each REDI representative must have comprehensive
26 knowledge of his or her agency's functions, both regulatory
27 and service in nature, and of the state's economic goals,
28 policies, and programs. This person shall be the primary point
29 of contact for his or her agency with REDI on issues and
30 projects relating to economically distressed rural communities
31 and with regard to expediting project review, shall ensure a
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1 prompt effective response to problems arising with regard to
2 rural issues, and shall work closely with the other REDI
3 representatives in the identification of opportunities for
4 preferential awards of program funds and allowances and waiver
5 of program requirements when necessary to encourage and
6 facilitate long-term private capital investment and job
7 creation.
8 (c) The REDI representatives shall work with REDI in
9 the review and evaluation of statutes and rules for adverse
10 impact on rural communities and the development of alternative
11 proposals to mitigate that impact.
12 (d) Each REDI representative shall be responsible for
13 ensuring that each district office or facility of his or her
14 agency is informed about the Rural Economic Development
15 Initiative and for providing assistance throughout the agency
16 in the implementation of REDI activities.
17 Section 12. Section 288.1088, Florida Statutes, is
18 amended to read:
19 288.1088 Quick Action Closing Fund.--
20 (1)(a) The Legislature finds that attracting,
21 retaining, and providing favorable conditions for the growth
22 of certain high-impact business facilities, privately
23 developed critical rural infrastructure, or key facilities in
24 economically distressed urban or rural communities which
25 provide provides widespread economic benefits to the public
26 through high-quality employment opportunities in such
27 facilities or and in related facilities attracted to the
28 state, through the increased tax base provided by the
29 high-impact facility and related businesses in related
30 sectors, through an enhanced entrepreneurial climate in the
31 state and the resulting business and employment opportunities,
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1 and through the stimulation and enhancement of the state's
2 universities and community colleges. In the global economy,
3 there exists serious and fierce international competition for
4 these facilities, and in most instances, when all available
5 resources for economic development have been used, the state
6 continues to encounter severe competitive disadvantages in
7 vying for these high-impact business facilities. Florida's
8 rural areas must provide a competitive environment for
9 business in the information age. This often requires an
10 incentive to make it feasible for private investors to provide
11 infrastructure in those areas.
12 (b) The Legislature therefore declares that sufficient
13 resources shall be available to respond to extraordinary
14 economic opportunities and to compete effectively for these
15 high-impact business facilities, critical private
16 infrastructure in rural areas, and key businesses in
17 economically distressed urban or rural communities.
18 (2) There is created within the Office of Tourism,
19 Trade, and Economic Development the Quick Action Closing Fund.
20 (3)(a) Enterprise Florida, Inc., shall evaluate
21 individual proposals for high-impact business facilities and
22 forward recommendations regarding the use of moneys in the
23 fund for such facilities to the director of the Office of
24 Tourism, Trade, and Economic Development. Such evaluation and
25 recommendation must include, but need not be limited to:
26 1. A description of the type of facility or
27 infrastructure, its operations business operation, and the
28 associated product or service associated with the facility.
29 2. The number of full-time-equivalent jobs that will
30 be created by the facility and the total estimated average
31 annual wages of those jobs or, in the case of privately
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1 developed rural infrastructure, the types of business
2 activities and jobs stimulated by the investment.
3 3. The cumulative amount of investment to be dedicated
4 to the facility within a specified period.
5 4. A statement of any special impacts the facility is
6 expected to stimulate in a particular business sector in the
7 state or regional economy or in the state's universities and
8 community colleges.
9 5. A statement of the role the incentive is expected
10 to play in the decision of the applicant business to locate or
11 expand in this state or for the private investor to provide
12 critical rural infrastructure.
13 (b) Upon receipt of the evaluation and recommendation
14 from Enterprise Florida, Inc., the director shall recommend
15 approval or disapproval of a project for receipt of funds from
16 the Quick Action Closing Fund to the Governor. In recommending
17 a project high-impact business facility, the director shall
18 include proposed performance conditions that the project
19 facility must meet to obtain incentive funds. The Governor
20 shall consult with the President of the Senate and the Speaker
21 of the House of Representatives before giving final approval
22 for a project. The Executive Office of the Governor shall
23 recommend approval of a project and release of funds pursuant
24 to the legislative consultation and review requirements set
25 forth in s. 216.177. The recommendation must include proposed
26 performance conditions the project must meet to obtain funds.
27 (c) Upon the approval of the Governor, the director of
28 the Office of Tourism, Trade, and Economic Development and the
29 high-impact business shall enter into a contract that sets
30 forth the conditions for payment of moneys from the fund. The
31 contract must include the total amount of funds awarded; the
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1 performance conditions that must be met to obtain the award,
2 including, but not limited to, net new employment in the
3 state, average salary, and total capital investment;
4 demonstrate a baseline of current service and a measure of
5 enhanced capability; the methodology for validating
6 performance; the schedule of payments from the fund; and
7 sanctions for failure to meet performance conditions.
8 (d) Enterprise Florida, Inc., shall validate
9 contractor performance. Such validation shall be reported
10 within 6 months after completion of the contract to the
11 Governor, President of the Senate, and the Speaker of the
12 House of Representatives.
13 Section 13. Subsection (2) of section 288.9015,
14 Florida Statutes, is amended to read:
15 288.9015 Enterprise Florida, Inc.; purpose; duties.--
16 (2) It shall be the responsibility of Enterprise
17 Florida, Inc., to aggressively market Florida's rural
18 communities, and distressed urban communities, and enterprise
19 zones as locations for potential new investment, to
20 aggressively assist in the retention and expansion of existing
21 businesses in these communities, and to aggressively assist
22 these communities in the identification and development of new
23 economic development opportunities for job creation, fully
24 using state incentive programs such as the Qualified Target
25 Industry Tax Refund Program under s. 288.106 and the Quick
26 Action Closing Fund under s. 288.1088 in economically
27 distressed areas.
28 Section 14. Section 290.004, Florida Statutes, is
29 amended to read:
30 290.004 Definitions relating to Florida Enterprise
31 Zone Act.--As used in ss. 290.001-290.016:
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1 (1) "Community investment corporation" means a black
2 business investment corporation, a certified development
3 corporation, a small business investment corporation, or other
4 similar entity incorporated under Florida law that has limited
5 its investment policy to making investments solely in minority
6 business enterprises.
7 (2) "Department" means the Department of Commerce.
8 (3) "Director" means the director of the Office of
9 Tourism, Trade, and Economic Development.
10 (4) "Governing body" means the council or other
11 legislative body charged with governing the county or
12 municipality.
13 (5) "Interagency coordinating council" means the
14 Enterprise Zone Interagency Coordinating Council created
15 pursuant to s. 290.009.
16 (6) "Minority business enterprise" has the same
17 meaning as in s. 288.703.
18 (7) "Office" means the Office of Tourism, Trade, and
19 Economic Development.
20 (8) "Rural enterprise zone" means an enterprise zone
21 that is nominated by a county having a population of 75,000 or
22 fewer, or a county having a population of 100,000 or fewer
23 which is contiguous to a county having a population of 75,000
24 or fewer, or by a municipality in such a county, or by such a
25 county and one or more municipalities. An enterprise zone
26 designated in accordance with s. 370.28 or s. 290.0065(5)(b),
27 is considered to be a rural enterprise zone.
28 (9)(8) "Secretary" means the Secretary of Commerce.
29 (10)(9) "Small business" has the same meaning as in s.
30 288.703.
31
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1 Section 15. Section 290.0065, Florida Statutes, is
2 amended to read:
3 290.0065 State designation of enterprise zones.--
4 (1) Upon application of the governing body of a county
5 or municipality or of a county and one or more municipalities
6 jointly pursuant to s. 290.0055, Enterprise Florida, Inc., and
7 the office department, in consultation with the interagency
8 coordinating council, shall determine which areas nominated by
9 such governing bodies meet the criteria outlined in s.
10 290.0055 and are the most appropriate for designation as state
11 enterprise zones. The office department is authorized to
12 designate up to 5 areas within each of the categories
13 established in subparagraphs (3)(a)1., 2., 3., 4., and 5.,
14 except that the office department may only designate a total
15 of 20 areas as enterprise zones. The office department shall
16 not designate more than three enterprise zones in any one
17 county. All designations, including any provision for
18 redesignations, of state enterprise zones pursuant to this
19 section shall be effective July 1, 1995.
20 (2) Each application made pursuant to s. 290.0055
21 shall be ranked competitively within the appropriate category
22 established pursuant to subsection (3) based on the pervasive
23 poverty, unemployment, and general distress of the area; the
24 strategic plan, including local fiscal and regulatory
25 incentives, prepared pursuant to s. 290.0057; and the
26 prospects for new investment and economic development in the
27 area. Pervasive poverty, unemployment, and general distress
28 shall be weighted 35 percent; strategic plan and local fiscal
29 and regulatory incentives shall be weighted 40 percent; and
30 prospects for new investment and economic development in the
31 area shall be weighted 25 percent.
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1 (3)(a) Each area designated as an enterprise zone
2 pursuant to this section shall be placed in one of the
3 following categories based on the 1990 census:
4 1. Communities consisting of census tracts in areas
5 having a total population of 150,000 persons or more.
6 2. Communities consisting of census tracts in areas
7 having a total population of 50,000 persons or more but less
8 than 150,000 persons.
9 3. Communities having a population of 20,000 persons
10 or more but less than 50,000 persons.
11 4. Communities having a population of 7,500 persons or
12 more but less than 20,000 persons.
13 5. Communities having a population of less than 7,500
14 persons.
15 (b) Any area authorized to be an enterprise zone by
16 both a county and a municipality shall be placed in the
17 appropriate category established under paragraph (a) in which
18 an application by the municipality would have been considered
19 if the municipality had acted alone, if at least 60 percent of
20 the population of the area authorized to be an enterprise zone
21 resides within the municipality. An area authorized to be an
22 enterprise zone by a county and one or more municipalities
23 shall be placed in the category in which an application by the
24 municipality with the highest percentage of residents in such
25 area would have been considered if such municipality had
26 authorized the area to be an enterprise zone. An area
27 authorized to be an enterprise zone by a county as defined by
28 s. 125.011(1) shall be placed in the category in which an
29 application by the municipality in which the area is located
30 would have been considered if the municipality had authorized
31 such area to be an enterprise zone. An area authorized to be
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1 an enterprise zone by a county as defined by s. 125.011(1)
2 which area is located in two or more municipalities shall be
3 placed in the category in which an application by the
4 municipality with the highest percentage of residents in such
5 area would have been considered if such municipality had
6 authorized such area to be an enterprise zone.
7 (4)(a) Notwithstanding s. 290.0055, any area existing
8 as a state enterprise zone as of the effective date of this
9 section and originally approved through a joint application
10 from a county and municipality, or through an application from
11 a county as defined in s. 125.011(1), shall be redesignated as
12 a state enterprise zone upon the creation of an enterprise
13 zone development agency pursuant to s. 290.0056 and the
14 completion of a strategic plan pursuant to s. 290.0057. Any
15 area redesignated pursuant to this subsection, other than an
16 area located in a county defined in s. 125.011(1), may be
17 relocated or modified by the appropriate governmental bodies.
18 Such relocation or modification shall be identified in the
19 strategic plan and shall meet the requirements for designation
20 as established by s. 290.005. Any relocation or modification
21 shall be submitted on or before June 1, 1996.
22 (b) The office department shall place any area
23 designated as a state enterprise zone pursuant to this
24 subsection in the appropriate category established in
25 subsection (3), and include such designations within the
26 limitations on state enterprise zone designations set out in
27 subsection (1).
28 (c) Any county or municipality having jurisdiction
29 over an area designated as a state enterprise zone pursuant to
30 this subsection, other than a county defined by s. 125.011(1),
31 may not apply for designation of another area.
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1 (5) Notwithstanding s. 290.0055, an area designated as
2 a federal empowerment zone or enterprise community pursuant to
3 Title XIII of the Omnibus Budget Reconciliation Act of 1993,
4 the Taxpayer Relief Act of 1997, or the 1999 Agricultural
5 Appropriations Act shall be designated a state enterprise zone
6 as follows:
7 (a) An area designated as an urban empowerment zone or
8 urban enterprise community pursuant to Title XIII of the
9 Omnibus Budget Reconciliation Act of 1993 or the Taxpayer
10 Relief Act of 1997 shall be designated a state enterprise zone
11 by the office department upon completion of the requirements
12 set out in paragraph (d), except in the case of a county as
13 defined in s. 125.011(1) which, notwithstanding s. 290.0055,
14 may incorporate and include such designated urban empowerment
15 zone or urban enterprise community areas within the boundaries
16 of its state enterprise zones without any limitation as to
17 size.
18 (b) An area designated as a rural empowerment zone or
19 rural enterprise community pursuant to Title XIII of the
20 Omnibus Budget Reconciliation Act of 1993 or the 1999
21 Agricultural Appropriations Act shall be designated a state
22 rural enterprise zone by the office department upon completion
23 of the requirements set out in paragraph (d) and may
24 incorporate and include such designated rural empowerment zone
25 or rural enterprise community within the boundaries of its
26 state enterprise zones without any limitation as to size.
27 (c) Any county or municipality having jurisdiction
28 over an area designated as a state enterprise zone pursuant to
29 this subsection, other than a county defined in s. 125.011(1),
30 may not apply for designation of another area.
31
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1 (d) Prior to designating such areas as state
2 enterprise zones, the office department shall ensure that the
3 governing body having jurisdiction over the zone submits the
4 strategic plan required pursuant to 7 C.F.R. part 25 or 24
5 C.F.R. part 597 to the office department, and creates an
6 enterprise zone development agency pursuant to s. 290.0056.
7 (e) The office department shall place any area
8 designated as a state enterprise zone pursuant to this
9 subsection in the appropriate category established in
10 subsection (3), and include such designations within the
11 limitations on state enterprise zone designations set out in
12 subsection (1).
13 (6)(a) The office department, in consultation with
14 Enterprise Florida, Inc., and the interagency coordinating
15 council, may develop guidelines shall promulgate any rules
16 necessary for the approval of areas under this section by the
17 director secretary.
18 (b) Such guidelines rules shall provide for the
19 measurement of pervasive poverty, unemployment, and general
20 distress using the criteria outlined by s. 290.0058.
21 (c) Such guidelines rules shall provide for the
22 evaluation of the strategic plan and local fiscal and
23 regulatory incentives for effectiveness, including how the
24 following key principles will be implemented by the governing
25 body or bodies:
26 1. Economic opportunity, including job creation within
27 the community and throughout the region, as well as
28 entrepreneurial initiatives, small business expansion, and
29 training for jobs that offer upward mobility.
30 2. Sustainable community development that advances the
31 creation of livable and vibrant communities through
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1 comprehensive approaches that coordinate economic, physical,
2 community, and human development.
3 3. Community-based partnerships involving the
4 participation of all segments of the community.
5 4. Strategic vision for change that identifies how the
6 community will be revitalized. This vision should include
7 methods for building on community assets and coordinate a
8 response to community needs in a comprehensive fashion. This
9 vision should provide goals and performance benchmarks for
10 measuring progress and establish a framework for evaluating
11 and adjusting the strategic plan.
12 5. Local fiscal and regulatory incentives enacted
13 pursuant to s. 290.0057(1)(e). These incentives should induce
14 economic revitalization, including job creation and small
15 business expansion.
16 (d) Such guidelines may rules shall provide methods
17 for evaluating the prospects for new investment and economic
18 development in the area, including a review and evaluation of
19 any previous state enterprise zones located in the area.
20 (7) Upon approval by the director secretary of a
21 resolution authorizing an area to be an enterprise zone
22 pursuant to this section, the office department shall assign a
23 unique identifying number to that resolution. The office
24 department shall provide the Department of Revenue and
25 Enterprise Florida, Inc., with a copy of each resolution
26 approved, together with its identifying number.
27 (8)(a) Notwithstanding s. 290.0055, any area existing
28 as a state enterprise zone as of December 30, 1994, which has
29 received at least $1 million in state community development
30 funds and at least $500,000 in federal community development
31 funds, which has less than 300 businesses located within the
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1 boundaries of the enterprise zone, and which has been
2 designated by the United States Department of Agriculture as a
3 "Champion Community" shall be redesignated as a state
4 enterprise zone upon the creation of an enterprise zone
5 development agency pursuant to s. 290.0056 and the completion
6 of a strategic plan pursuant to s. 290.0057.
7 (b) Such designation shall be in addition to the
8 limitations of state enterprise zone designation set out in
9 subsection (1).
10 (9) The Office of Tourism, Trade, and Economic
11 Development may amend the boundaries of any enterprise zone
12 designated by the state pursuant to this section, consistent
13 with the categories, criteria, and limitations imposed in this
14 section upon the establishment of such enterprise zone and
15 only if consistent with the determinations made in s.
16 290.0058(2).
17 (9)(10) Before December 31, 1998, the governing body
18 of a county in which an enterprise zone designated pursuant to
19 paragraph (5)(b) is located may apply to the Office of
20 Tourism, Trade, and Economic Development to amend the
21 boundaries of the enterprise zone for the purpose of replacing
22 areas not suitable for development. The Office of Tourism,
23 Trade, and Economic Development shall approve the application
24 if it does not increase the overall size of the enterprise
25 zone. Except that upon the request of the governing body of a
26 home rule charter county, or any county the government of
27 which has been consolidated with the government of one or more
28 municipalities in accordance with s. 9, Art. VIII of the State
29 Constitution of 1885, as preserved by s. 6(e), Art. VIII of
30 the State Constitution as revised in 1968 and subsequently
31 amended, the Office of Tourism, Trade, and Economic
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1 Development may amend the boundaries of an area designated as
2 an enterprise zone upon the receipt of a resolution adopted by
3 such governing body describing the amended boundaries, so long
4 as the added area does not increase the overall size of the
5 expanded zone more than its original size or 20 square miles,
6 whichever is larger, and is consistent with the categories,
7 criteria, and limitations imposed by s. 290.0055.
8 (10)(11) Before December 31, 1999, any county as
9 defined in s. 125.011(1) may create a satellite enterprise
10 zone not exceeding 3 square miles in area outside of and,
11 notwithstanding anything contained in s. 290.0055(4) or
12 elsewhere, in addition to the previously designated 20 square
13 miles of enterprise zones. The Office of Tourism, Trade, and
14 Economic Development shall amend the boundaries of the areas
15 previously designated by any such county as enterprise zones
16 upon the receipt of a resolution adopted by such governing
17 body describing the satellite enterprise zone, as long as the
18 additional area is consistent with the categories, criteria,
19 and limitations imposed by s. 290.0055, provided that the
20 20-square-mile limitation and the requirements imposed by s.
21 290.0055(4)(d) do not apply to such satellite enterprise zone.
22 Section 16. Section 290.00676, Florida Statutes, is
23 created to read:
24 290.00676 Amendment of rural enterprise zone
25 boundaries.--Notwithstanding any other law, upon
26 recommendation by Enterprise Florida, Inc., the Office of
27 Tourism, Trade, and Economic Development may approve requests
28 to amend the boundaries of rural enterprise zones as defined
29 in s. 290.004(8). Boundary amendments authorized by this
30 section are subject to the following requirements:
31
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1 (1) The amendment may increase the size of the rural
2 enterprise zone up to a maximum zone size of 20 square miles.
3 (2) The amendment may increase the zone's number of
4 noncontiguous areas by one, if the additional noncontiguous
5 area has zero population. For purposes of this subsection, the
6 pervasive poverty criteria may be set aside for the addition
7 of a noncontiguous area.
8 (3) The local enterprise zone development agency must
9 request the amendment from Enterprise Florida, Inc., prior to
10 December 30, 2001. The request must contain maps and
11 sufficient information to allow the office to determine the
12 number of noncontiguous areas and the total size of the rural
13 enterprise zone.
14 Section 17. Section 290.00677, Florida Statutes, is
15 created to read:
16 290.00677 Rural enterprise zones; special
17 qualifications.--
18 (1) Notwithstanding the enterprise zone residency
19 requirements set out in s. 212.096(1)(c), eligible businesses
20 as defined by s. 212.096(1)(a), located in rural enterprise
21 zones as defined by s. 290.004, may receive the basic minimum
22 credit provided under s. 212.096 for creating a new job and
23 hiring a person residing within the jurisdiction of a rural
24 county, as defined by s. 288.106(1)(r). All other provisions
25 of s. 212.096, including, but not limited to, those relating
26 to the award of enhanced credits, apply to such businesses.
27 (2) Notwithstanding the enterprise zone residency
28 requirements set out in s. 220.03(1)(q), eligible businesses
29 as defined by s. 212.096(1)(a), located in rural enterprise
30 zones as defined in s. 290.004, may receive the basic minimum
31 credit provided under s. 220.181 for creating a new job and
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1 hiring a person residing within the jurisdiction of a rural
2 county, as defined by s. 288.106(1)(r). All other provisions
3 of s. 220.181, including, but not limited to, those relating
4 to the award of enhanced credits apply to such businesses.
5 Section 18. Section 290.00694, Florida Statutes, is
6 created to read:
7 290.00694 Enterprise zone designation for rural
8 communities.--An area designated as a rural champion community
9 under the Taxpayer Relief Act of 1997 or a community within a
10 designated rural area of critical economic concern under s.
11 288.0656 may submit an application to Enterprise Florida,
12 Inc., for review and recommendation to the office for
13 designation as an enterprise zone. The application must be
14 submitted by December 31, 2001. Notwithstanding the provisions
15 of s. 290.0065 limiting the total number of enterprise zones
16 designated and the number of enterprise zones within a
17 population category, the Office of Tourism, Trade, and
18 Economic Development may designate enterprise zones under this
19 section. Upon completion of the requirements set out in s.
20 290.0065(5)(d), the Office of Tourism, Trade, and Economic
21 Development shall establish the initial effective date of the
22 enterprise zones designated pursuant to this section. Only one
23 community in each county in a rural area of critical economic
24 concern may be designated as an enterprise zone.
25 Section 19. Subsection (3) of section 290.007, Florida
26 Statutes, is amended to read:
27 290.007 State incentives available in enterprise
28 zones.--The following incentives are provided by the state to
29 encourage the revitalization of enterprise zones:
30 (3) The community contribution tax credits provided in
31 ss. 212.08, 220.183, and 624.5105.
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1 Section 20. Subsection (4) of section 370.28, Florida
2 Statutes, is repealed.
3 Section 21. Subsection (39) is added to section
4 420.507, Florida Statutes, to read:
5 420.507 Powers of the corporation.--The corporation
6 shall have all the powers necessary or convenient to carry out
7 and effectuate the purposes and provisions of this part,
8 including the following powers which are in addition to all
9 other powers granted by other provisions of this part:
10 (39) To create recognition programs to honor
11 individuals, community-based development organizations, units
12 of local government, or others who have demonstrated the
13 ideals of community stewardship and increased access to
14 housing for low-income households, including their stewardship
15 in economically distressed areas. Such programs may
16 incorporate certificates of recognition by the Governor and
17 may include presentation by the Governor or his
18 representative.
19 Section 22. Subsections (1), (2), (4), and (5) of
20 section 624.5105, Florida Statutes, are amended to read:
21 624.5105 Community contribution tax credit;
22 authorization; limitations; eligibility and application
23 requirements; administration; definitions; expiration.--
24 (1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
25 (a) There shall be allowed a credit of 50 percent of a
26 community contribution against any tax due for a calendar year
27 under s. 624.509 or s. 624.510.
28 (b) No insurer shall receive more than $200,000 in
29 annual tax credits for all approved community contributions
30 made in any one year.
31
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1 (c) The total amount of tax credit which may be
2 granted for all programs approved under this section, s.
3 212.08(5)(q), and s. 220.183 is $20 $10 million annually.
4 (d) Each proposal for the granting of such tax credit
5 requires the prior approval of the director.
6 (e) If the credit granted pursuant to this section is
7 not fully used in any one year because of insufficient tax
8 liability on the part of the insurer, the unused amount may be
9 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 s. 624.509 or s. 624.510 for such year exceeds the
12 credit under this section for such year.
13 (2) ELIGIBILITY REQUIREMENTS.--
14 (a) Each community contribution by an insurer must be
15 in a form specified in subsection (5).
16 (b) Each community contribution must be reserved
17 exclusively for use in a project as defined in s.
18 220.03(1)(t).
19 (c) The project must be undertaken by an "eligible
20 sponsor," as which term is defined in s. 220.183(2)(c). as:
21 1. A community action program;
22 2. A community development corporation;
23 3. A neighborhood housing services corporation;
24 4. A local housing authority created pursuant to
25 chapter 421;
26 5. A community redevelopment agency created pursuant
27 to s. 163.356;
28 6. The Florida Industrial Development Corporation;
29 7. A historic preservation district agency or
30 organization;
31 8. A private industry council;
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1 9. An enterprise zone development agency created
2 pursuant to s. 290.0057; or
3 10. Such other agency as the director may, from time
4 to time, designate by rule.
5
6 In no event shall a contributing insurer have a financial
7 interest in the eligible sponsor.
8 (d) The project shall be located in an area designated
9 as an enterprise zone or a Front Porch Community pursuant to
10 s. 14.2015(9)(b) s. 290.0065. Any project designed to
11 construct or rehabilitate housing for low-income or
12 very-low-income households as defined in s. 420.9071(19) and
13 (28) low-income housing is exempt from the area requirement of
14 this paragraph.
15 (4) ADMINISTRATION.--
16 (a)1. The Office of Tourism, Trade, and Economic
17 Development is authorized to adopt all rules necessary to
18 administer this section, including rules for the approval or
19 disapproval of proposals by insurers.
20 2. The decision of the director shall be in writing,
21 and, if approved, the proposal shall state the maximum credit
22 allowable to the insurer. A copy of the decision shall be
23 transmitted to the executive director of the Department of
24 Revenue, who shall apply such credit to the tax liability of
25 the insurer.
26 3. The office shall monitor all projects periodically,
27 in a manner consistent with available resources to ensure that
28 resources are utilized in accordance with this section;
29 however, each project shall be reviewed no less frequently
30 than once every 2 years.
31
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1 4. The Office of Tourism, Trade, and Economic
2 Development shall, in consultation with the Department of
3 Community Affairs, the Florida Housing Finance Corporation,
4 and the statewide and regional housing and financial
5 intermediaries, market the availability of the community
6 contribution tax credit program to community-based
7 organizations.
8 (b) The Department of Revenue shall adopt any rules
9 necessary to ensure the orderly implementation and
10 administration of this section.
11 (5) DEFINITIONS.--For the purpose of this section:
12 (a) "Community contribution" means the grant by an
13 insurer of any of the following items:
14 1. Cash or other liquid assets.
15 2. Real property.
16 3. Goods or inventory.
17 4. Other physical resources which are identified by
18 the department.
19 (b) "Director" means the director of the Office of
20 Tourism, Trade, and Economic Development.
21 (c) "Local government" means any county or
22 incorporated municipality in the state.
23 (d) "Office" means the Office of Tourism, Trade, and
24 Economic Development.
25 (e) "Project" means an activity as defined in s.
26 220.03(1)(t). any activity undertaken by an eligible sponsor,
27 as defined in subsection (2), which is designed to construct,
28 improve, or substantially rehabilitate housing or commercial,
29 industrial, or public resources and facilities or to improve
30 entrepreneurial and job-development opportunities for
31 low-income persons.
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1 Section 23. Except as otherwise expressly provided in
2 this act, this act shall take effect July 1, 2001.
3
4 *****************************************
5 SENATE SUMMARY
6 Provides for the sales-tax exemption on building
materials to apply to nonprofit community-based
7 organizations and projects funded under a State Housing
Initiatives Partnership Program. Provides an additional
8 tax credit for donations. Revises requirements for
computing the tax credit for creating enterprise-zone
9 jobs. Revises various provisions of the Regional Rural
Development Grants Program and the Rural Community
10 Revolving Loan Fund Program. Revises various provisions
governing the creation and administration of rural
11 enterprise zones. Revises the enterprise zone incentives.
(See bill for details.)
12
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14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
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