House Bill hb0381

    Florida House of Representatives - 2002                 HB 381

        By Representative Wallace






  1                      A bill to be entitled

  2         An act relating to small business employment

  3         incentives; providing for issuing tax credit

  4         vouchers; requiring the Department of Revenue

  5         to develop forms and procedures; limiting the

  6         availability of the credit vouchers; providing

  7         an effective date.

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  9  Be It Enacted by the Legislature of the State of Florida:

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11         Section 1.  SMALL BUSINESS EMPLOYMENT INCENTIVE.--

12         (1)  In order to encourage the creation of new jobs in

13  this state, any small business as defined in s. 288.703,

14  Florida Statutes, other than a franchise as defined in s.

15  817.416, Florida Statutes, shall be issued a tax credit

16  voucher of $1,000 for use against any tax liability created

17  under chapter 212 or chapter 220, Florida Statutes, for any

18  new full-time position created by such small business after

19  July 1, 2002. The small business shall document that the new

20  position is continuously filled for at least 12 full

21  consecutive months by the same employee, all existing

22  positions are maintained, the salary for such position is at

23  least $8 per hour, and the employee performs duties in

24  connection with the operations of the business on a regular

25  full-time basis for an average of at least 36 hours per week

26  each month throughout the year.

27         (2)  Each small business, other than a franchise, may

28  qualify for only one such credit, which shall be applied for

29  consecutive periods against the taxes imposed under chapter

30  212, Florida Statutes, or against the taxes imposed under

31  chapter 220, Florida Statutes.

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    Florida House of Representatives - 2002                 HB 381

    567-178B-02






  1         (3)  An eligible business may begin applying the credit

  2  against such taxes after the employee has continuously filled

  3  the position for at least 12 consecutive months. An eligible

  4  business may not use more than $500 of the credit authorized

  5  in the voucher in any single 12-month period. If an eligible

  6  business has a credit larger than the amount owed the state on

  7  the tax return for the time period for which the credit is

  8  claimed, the amount of the credit for that time period shall

  9  be limited to the amount owed the state on that tax return.

10         (4)  Any small business, other than a franchise, may

11  apply for such credit by submitting an application to the

12  Department of Revenue, accompanied by an affidavit verifying

13  the creation and filling of such position and the position

14  salary as specified in this act.  The department shall provide

15  forms and a procedure for applying for, processing, and

16  issuing such credit.

17         (5)  Small businesses applying for the tax credit

18  voucher may elect to use the voucher against the sales and use

19  tax under chapter 212, Florida Statutes, or the corporate

20  income tax under chapter 220, Florida Statutes.  Once the

21  election has been made, the business shall not apply the

22  credit voucher against any other tax imposed by law.  The

23  voucher may be used against existing tax liabilities under

24  either chapter and, if not fully used in the first taxable

25  year, may be allowed as a credit carryover against tax

26  liabilities in future time periods, not to exceed 5 years or

27  until such amount is fully used, whichever occurs first.

28         (6)  The employment incentive provided by this act

29  shall be available to small businesses until July 1, 2006, or

30  until 25,000 tax credit vouchers have been issued by the

31  Department of Revenue, whichever occurs first.

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    Florida House of Representatives - 2002                 HB 381

    567-178B-02






  1         Section 2.  This act shall take effect July 1, 2002.

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  4                          HOUSE SUMMARY

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      Provides for issuing to small businesses limited tax
  6    credit vouchers against sales and use tax and corporate
      income tax liabilities as an employment incentive. Limits
  7    the availability of the vouchers. See bill for details.

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CODING: Words stricken are deletions; words underlined are additions.