| 2 | The Committee on Commerce recommends the following: |
| 3 |
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| 4 | Committee Substitute |
| 5 | Remove the entire bill and insert: |
| 6 | A bill to be entitled |
| 7 | An act relating to the corporate income tax; providing a |
| 8 | credit against the tax for contributions to nonprofit |
| 9 | cultural organizations; providing legislative purpose; |
| 10 | defining terms; providing limitations on individual |
| 11 | credits; providing that the unused amount of a credit may |
| 12 | not be carried forward; prohibiting conveying, assigning, |
| 13 | or transferring the credit to another entity except as |
| 14 | specified; providing for administration by the Department |
| 15 | of Revenue and the Division of Cultural Affairs of the |
| 16 | Department of State; requiring the department and the |
| 17 | division to adopt rules; providing a tax credit for |
| 18 | donations to the Cultural Institutions Trust Fund; |
| 19 | providing that the unused amount of a credit may not be |
| 20 | carried forward; prohibiting conveying, assigning, or |
| 21 | transferring the credit to another entity, except as |
| 22 | specified; providing application procedures; providing for |
| 23 | rulemaking by the Department of Revenue and the Department |
| 24 | of State; providing legislative intent with respect to the |
| 25 | order in which credits may be applied; providing for an |
| 26 | addition to taxable income for purposes of computing |
| 27 | adjusted federal income, to conform; specifying the |
| 28 | maximum amount of annual tax credits which may be granted |
| 29 | under the act; providing for future repeal of the act; |
| 30 | providing an effective date. |
| 31 |
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| 32 | Be It Enacted by the Legislature of the State of Florida: |
| 33 |
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| 34 | Section 1. Credits for contributions to nonprofit cultural |
| 35 | organizations.-- |
| 36 | (1) PURPOSE.--The purpose of this section is to encourage |
| 37 | private, voluntary contributions to organizations that promote |
| 38 | cultural activities by encouraging the talents of creative |
| 39 | individuals or by helping to provide an audience for cultural |
| 40 | activities. |
| 41 | (2) DEFINITIONS.--As used in this section, the term: |
| 42 | (a) "Cultural" means the disciplines of dance, music, |
| 43 | theater, visual arts, literature, media arts, interdisciplinary |
| 44 | and multidisciplinary, and programs of museums. |
| 45 | (b) "Department" means the Department of Revenue. |
| 46 | (c) "Division" means the Division of Cultural Affairs of |
| 47 | the Department of State. |
| 48 | (d) "Eligible contribution" means a monetary contribution |
| 49 | from a taxpayer, subject to the restrictions provided in this |
| 50 | section, to an eligible cultural organization. |
| 51 | (e) "Eligible cultural organization" means a nonprofit |
| 52 | cultural organization that is exempt from federal income tax |
| 53 | under s. 501(c)(3) of the Internal Revenue Code of 1986, as |
| 54 | amended, and that is engaged in cultural activities in this |
| 55 | state. The term includes educational institutions that are also |
| 56 | presenters or producers of cultural activities in this state. |
| 57 | (3) AUTHORIZATION TO GRANT CULTURAL ORGANIZATIONS TAX |
| 58 | CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS.-- |
| 59 | (a) There is allowed a credit of 50 percent of the amount |
| 60 | of an eligible contribution, which contribution is in the amount |
| 61 | of $60,000 or more, against any tax due for a taxable year under |
| 62 | chapter 220, Florida Statutes. However, such a credit is |
| 63 | inapplicable to a particular corporation after the aggregate |
| 64 | amount of the contributions to eligible cultural organizations |
| 65 | given by the corporation in any one taxable year exceeds |
| 66 | $600,000. |
| 67 | (b) A taxpayer who files a Florida consolidated return as |
| 68 | a member of an affiliated group pursuant to s. 220.131(1), |
| 69 | Florida Statutes, may be allowed the credit on a consolidated |
| 70 | return basis; however, the total credit taken by the affiliated |
| 71 | group is subject to the limitation established under paragraph |
| 72 | (a). |
| 73 | (4) ADMINISTRATION; RULES.-- |
| 74 | (a) If the credit granted under this section is not fully |
| 75 | used in any one year, the unused amount may not be carried |
| 76 | forward. A taxpayer may not convey, assign, or transfer the |
| 77 | credit authorized by this section to another entity unless all |
| 78 | of the assets of the taxpayer are conveyed, assigned, or |
| 79 | transferred in the same transaction. |
| 80 | (b) An application for a tax credit pursuant to this |
| 81 | section must be submitted to the division on forms established |
| 82 | by rule of the division. Applications shall be accepted on a |
| 83 | first-come, first-served basis beginning July 1, 2004. |
| 84 | (c) A taxpayer must submit a separate application for the |
| 85 | tax credit for each individual contribution that the taxpayer |
| 86 | makes to an eligible cultural organization. |
| 87 | (d) The granting of tax credit by the division must be in |
| 88 | writing and state the maximum credit allowable to the business |
| 89 | firm. A copy of the granting of tax credit shall be transmitted |
| 90 | to the executive director of the Department of Revenue, who |
| 91 | shall apply such credit to the tax liability of the business |
| 92 | firm. |
| 93 | (e) The department shall adopt rules necessary to |
| 94 | administer this section, including rules establishing |
| 95 | application forms and procedures. |
| 96 | (f) The division shall adopt rules necessary to determine |
| 97 | the eligibility of nonprofit cultural organizations. |
| 98 | Section 2. Cultural contributions tax credit.-- |
| 99 | (1) AUTHORIZATION TO GRANT CULTURAL CONTRIBUTIONS TAX |
| 100 | CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS.-- |
| 101 | (a) There shall be allowed a credit of 50 percent of |
| 102 | monetary contribution made to the Division of Cultural Affairs |
| 103 | of the Department of State for deposit into the Cultural |
| 104 | Institutions Trust Fund against any tax due for a taxable year |
| 105 | under chapter 220, Florida Statutes. |
| 106 | (b) All proposals for the granting of the tax credit shall |
| 107 | require the prior approval of the Division of Cultural Affairs |
| 108 | of the Department of State. |
| 109 | (c) If the credit granted pursuant to this section is not |
| 110 | fully used in any one year, the unused amount may not be carried |
| 111 | forward. A taxpayer may not convey, assign, or transfer the |
| 112 | credit authorized by this section to another entity unless all |
| 113 | of the assets of the taxpayer are conveyed, assigned, or |
| 114 | transferred in the same transaction. |
| 115 | (2) APPLICATION REQUIREMENTS.-- |
| 116 | (a) Any business wishing to participate in this program |
| 117 | must submit an application for the tax credit to the Division of |
| 118 | Cultural Affairs of the Department of State on forms established |
| 119 | by rule of the division. Applications shall be accepted on a |
| 120 | first-come, first-served basis beginning July 1, 2004. |
| 121 | (b) The business firm must submit a separate application |
| 122 | for tax credit for each individual contribution that the firm |
| 123 | makes to the Cultural Institutions Trust Fund. |
| 124 | (3) ADMINISTRATION.-- |
| 125 | (a) The Division of Cultural Affairs of the Department of |
| 126 | State may adopt rules pursuant to ss. 120.536(1) and 120.54, |
| 127 | Florida Statutes, to administer this section. |
| 128 | (b) The granting of tax credit by the Division of Cultural |
| 129 | Affairs of the Department of State must be in writing and state |
| 130 | the maximum credit allowable to the business firm. A copy of the |
| 131 | granting of tax credit shall be transmitted to the executive |
| 132 | director of the Department of Revenue, who shall apply such |
| 133 | credit to the tax liability of the business firm. |
| 134 | (c) The Department of Revenue may adopt rules pursuant to |
| 135 | ss. 120.536(1) and 120.54, Florida Statutes, to administer this |
| 136 | section. |
| 137 | Section 3. It is the intent of the Legislature that |
| 138 | credits against the corporate income tax granted under section 1 |
| 139 | or section 2 be applied subsequent to those enumerated in s. |
| 140 | 220.187, Florida Statutes. |
| 141 | Section 4. In computing adjusted federal income under s. |
| 142 | 220.13, Florida Statutes, there shall be added to such taxable |
| 143 | income the amount taken as a credit for the taxable year under |
| 144 | sections 1 and 2. |
| 145 | Section 5. The total amount of tax credit which may be |
| 146 | granted for all programs approved under sections 1 and 2 is $5 |
| 147 | million annually. |
| 148 | Section 6. This act is repealed June 30, 2005. |
| 149 | Section 7. This act shall take effect July 1, 2004. |