SENATE AMENDMENT
Bill No. HB 743, 2nd Eng.
Amendment No. ___ Barcode 910128
CHAMBER ACTION
Senate House
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11 Senator Clary moved the following amendment to amendment
12 (960560):
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14 Senate Amendment (with title amendment)
15 On page 55, between lines 24 and 25,
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17 and insert:
18 Section 18. Paragraph (j) of subsection (5) of section
19 212.08, Florida Statutes, is amended to read:
20 212.08 Sales, rental, use, consumption, distribution,
21 and storage tax; specified exemptions.--The sale at retail,
22 the rental, the use, the consumption, the distribution, and
23 the storage to be used or consumed in this state of the
24 following are hereby specifically exempt from the tax imposed
25 by this chapter.
26 (5) EXEMPTIONS; ACCOUNT OF USE.--
27 (j) Machinery and equipment used in semiconductor,
28 defense, or space technology production and research and
29 development.--
30 1.a. Industrial machinery and equipment used in
31 semiconductor technology facilities certified under
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SENATE AMENDMENT
Bill No. HB 743, 2nd Eng.
Amendment No. ___ Barcode 910128
1 subparagraph 6. to manufacture, process, compound, or produce
2 semiconductor technology products for sale or for use by these
3 facilities are exempt from the tax imposed by this chapter.
4 For purposes of this paragraph, industrial machinery and
5 equipment includes molds, dies, machine tooling, other
6 appurtenances or accessories to machinery and equipment,
7 testing equipment, test beds, computers, and software, whether
8 purchased or self-fabricated, and, if self-fabricated,
9 includes materials and labor for design, fabrication, and
10 assembly.
11 b. Industrial machinery and equipment used in defense
12 or space technology facilities certified under subparagraph 6.
13 to manufacture, process, compound, or produce defense
14 technology products or space technology products for sale or
15 for use by these facilities are exempt from 25 percent of the
16 tax imposed by this chapter.
17 2.a. Machinery and equipment are exempt from the tax
18 imposed by this chapter if used predominately in semiconductor
19 wafer research and development activities in a semiconductor
20 technology research and development facility certified under
21 subparagraph 6. For purposes of this paragraph, machinery and
22 equipment includes molds, dies, machine tooling, other
23 appurtenances or accessories to machinery and equipment,
24 testing equipment, test beds, computers, and software, whether
25 purchased or self-fabricated, and, if self-fabricated,
26 includes materials and labor for design, fabrication, and
27 assembly.
28 b. Machinery and equipment are exempt from 25 percent
29 of the tax imposed by this chapter if used predominately in
30 defense or space research and development activities in a
31 defense or space technology research and development facility
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SENATE AMENDMENT
Bill No. HB 743, 2nd Eng.
Amendment No. ___ Barcode 910128
1 certified under subparagraph 6.
2 3. Building materials purchased for use in
3 manufacturing or expanding clean rooms in
4 semiconductor-manufacturing facilities are exempt from the tax
5 imposed by this chapter.
6 4. In addition to meeting the criteria mandated by
7 subparagraph 1., subparagraph 2., or subparagraph 3., a
8 business must be certified by the Office of Tourism, Trade,
9 and Economic Development as authorized in this paragraph in
10 order to qualify for exemption under this paragraph.
11 5. For items purchased tax exempt pursuant to this
12 paragraph, possession of a written certification from the
13 purchaser, certifying the purchaser's entitlement to exemption
14 pursuant to this paragraph, relieves the seller of the
15 responsibility of collecting the tax on the sale of such
16 items, and the department shall look solely to the purchaser
17 for recovery of tax if it determines that the purchaser was
18 not entitled to the exemption.
19 6.a. To be eligible to receive the exemption provided
20 by subparagraph 1., subparagraph 2., or subparagraph 3., a
21 qualifying business entity shall apply to Enterprise Florida,
22 Inc. The application shall be developed by the Office of
23 Tourism, Trade, and Economic Development in consultation with
24 Enterprise Florida, Inc.
25 b. Enterprise Florida, Inc., shall review each
26 submitted application and information and determine whether or
27 not the application is complete within 5 working days. Once an
28 application is complete, Enterprise Florida, Inc., shall,
29 within 10 working days, evaluate the application and recommend
30 approval or disapproval of the application to the Office of
31 Tourism, Trade, and Economic Development.
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SENATE AMENDMENT
Bill No. HB 743, 2nd Eng.
Amendment No. ___ Barcode 910128
1 c. Upon receipt of the application and recommendation
2 from Enterprise Florida, Inc., the Office of Tourism, Trade,
3 and Economic Development shall certify within 5 working days
4 those applicants who are found to meet the requirements of
5 this section and notify the applicant, Enterprise Florida,
6 Inc., and the department of the certification. If the Office
7 of Tourism, Trade, and Economic Development finds that the
8 applicant does not meet the requirements of this section, it
9 shall notify the applicant and Enterprise Florida, Inc.,
10 within 10 working days that the application for certification
11 has been denied and the reasons for denial. The Office of
12 Tourism, Trade, and Economic Development has final approval
13 authority for certification under this section.
14 7.a. A business may apply once each year for the
15 exemption.
16 b. The application must indicate, for program
17 evaluation purposes only, the average number of full-time
18 equivalent employees at the facility over the preceding
19 calendar year, the average wage and benefits paid to those
20 employees over the preceding calendar year, the total
21 investment made in real and tangible personal property over
22 the preceding calendar year, and the total value of tax-exempt
23 purchases and taxes exempted during the previous year. The
24 department shall assist the Office of Tourism, Trade, and
25 Economic Development in evaluating and verifying information
26 provided in the application for exemption.
27 c. The Office of Tourism, Trade, and Economic
28 Development may use the information reported on the
29 application for evaluation purposes only and shall prepare an
30 annual report on the exemption program and its cost and
31 impact. The annual report for the preceding fiscal year shall
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SENATE AMENDMENT
Bill No. HB 743, 2nd Eng.
Amendment No. ___ Barcode 910128
1 be submitted to the Governor, the President of the Senate, and
2 the Speaker of the House of Representatives by September 30 of
3 each fiscal year. This report may be submitted in conjunction
4 with the annual report required in s. 288.095(3)(c).
5 8. A business certified to receive this exemption may
6 elect to designate one or more state universities or community
7 colleges as recipients of up to 100 percent of the amount of
8 the exemption for which they may qualify. To receive these
9 funds, the institution must agree to match the funds so earned
10 with equivalent cash, programs, services, or other in-kind
11 support on a one-to-one basis in the pursuit of research and
12 development projects as requested by the certified business.
13 The rights to any patents, royalties, or real or intellectual
14 property must be vested in the business unless otherwise
15 agreed to by the business and the university or community
16 college.
17 9. As used in this paragraph, the term:
18 a. "Predominately" means at least 50 percent of the
19 time in qualifying research and development.
20 b. "Research and development" means basic and applied
21 research in the science or engineering, as well as the design,
22 development, and testing of prototypes or processes of new or
23 improved products. Research and development does not include
24 market research, routine consumer product testing, sales
25 research, research in the social sciences or psychology,
26 nontechnological activities, or technical services.
27 c. "Semiconductor technology products" means raw
28 semiconductor wafers or semiconductor thin films that are
29 transformed into semiconductor memory or logic wafers,
30 including wafers containing mixed memory and logic circuits;
31 related assembly and test operations; active-matrix flat panel
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SENATE AMENDMENT
Bill No. HB 743, 2nd Eng.
Amendment No. ___ Barcode 910128
1 displays; semiconductor chips; semiconductor lasers;
2 optoelectronic elements; and related semiconductor technology
3 products as determined by the Office of Tourism, Trade, and
4 Economic Development.
5 d. "Clean rooms" means manufacturing facilities
6 enclosed in a manner that meets the clean manufacturing
7 requirements necessary for high-technology
8 semiconductor-manufacturing environments.
9 e. "Defense technology products" means products that
10 have a military application, including, but not limited to,
11 weapons, weapons systems, guidance systems, surveillance
12 systems, communications or information systems, munitions,
13 aircraft, vessels, or boats, or components thereof, which are
14 intended for military use and manufactured in performance of a
15 contract with the United States Department of Defense or the
16 military branch of a recognized foreign government or a
17 subcontract thereunder which relates to matters of national
18 defense.
19 f. "Space technology products" means products that are
20 specifically designed or manufactured for application in space
21 activities, including, but not limited to, space launch
22 vehicles, missiles, satellites or research payloads, avionics,
23 and associated control systems and processing systems. The
24 term does not include products that are designed or
25 manufactured for general commercial aviation or other uses
26 even though those products may also serve an incidental use in
27 space applications.
28 Section 19. Subsection (7) of section 288.108, Florida
29 Statutes, is amended to read:
30 288.108 High-impact business.--
31 (7) REPORTING.--The office shall by December 1 of each
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SENATE AMENDMENT
Bill No. HB 743, 2nd Eng.
Amendment No. ___ Barcode 910128
1 year issue a complete and detailed report of all designated
2 high-impact sectors, all applications received and their
3 disposition, all final orders issued, and all payments made,
4 including analyses of benefits and costs, types of projects
5 supported, and employment and investments created. The report
6 shall be submitted to the Governor, the President of the
7 Senate, and the Speaker of the House of Representatives. The
8 report may be combined with the incentives report required in
9 s. 288.095.
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11 (Redesignate subsequent sections.)
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14 ================ T I T L E A M E N D M E N T ===============
15 And the title is amended as follows:
16 On page 60, line 11, after the semicolon
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18 insert:
19 amending ss. 212.08 and 288.108, F.S.; removing
20 references, to conform;
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