HB 0617 2004
1	A bill to be entitled
2	An act relating to economic stimulus; amending s. 212.08,
3	F.S.; revising sales price criteria for characterizing
4	business property; requiring a percentage of the community
5	contribution tax credit pool to be set aside for a certain
6	time period for projects located in a rural enterprise
7	zone; conforming provisions to the designated urban job
8	tax credit revision; amending s. 212.097, F.S.; revising
9	provisions providing for an urban job tax credit program
10	to apply to designated urban job tax credit areas rather
11	than high crime areas; revising and providing definitions,
12	eligibility criteria, application procedures and
13	requirements, and area characteristics and criteria;
14	authorizing transfer of unused credits under the Rural Job
15	Tax Credit Program; specifying use of transferred credits;
16	prohibiting transfer of transferred credits; amending s.
17	212.098, F.S.; authorizing transfer of unused credits
18	under the Rural Job Tax Credit Program; specifying use of
19	transferred credits; prohibiting transfer of transferred
20	credits; amending ss. 220.183 and 624.5105, F.S.;
21	requiring a percentage of the community contribution tax
22	credit pool to be set aside for a certain time period for
23	projects located in a rural enterprise zone; amending s.
24	220.1895, F.S.; conforming provisions to amendments to
25	urban job tax credit areas program provisions; removing a
26	historical reference; amending s. 288.106, F.S.; extending
27	an expiration date for the tax refund program for
28	qualified target industry businesses; preserving the
29	effect of certain tax refund agreements after the
30	expiration date; amending s. 288.99, F.S.; conforming
31	provisions to the designated urban job tax credit
32	revision; providing an effective date.
33
34	Be It Enacted by the Legislature of the State of Florida:
35
36	Section 1. Paragraphs (h), (o), and (q) of subsection (5)
37	of section 212.08, Florida Statutes, are amended to read:
38	212.08 Sales, rental, use, consumption, distribution, and
39	storage tax; specified exemptions.--The sale at retail, the
40	rental, the use, the consumption, the distribution, and the
41	storage to be used or consumed in this state of the following
42	are hereby specifically exempt from the tax imposed by this
43	chapter.
44	(5) EXEMPTIONS; ACCOUNT OF USE.--
45	(h) Business property used in an enterprise zone.--
46	1. Business property purchased for use by businesses
47	located in an enterprise zone which is subsequently used in an
48	enterprise zone shall be exempt from the tax imposed by this
49	chapter. This exemption inures to the business only through a
50	refund of previously paid taxes. A refund shall be authorized
51	upon an affirmative showing by the taxpayer to the satisfaction
52	of the department that the requirements of this paragraph have
53	been met.
54	2. To receive a refund, the business must file under oath
55	with the governing body or enterprise zone development agency
56	having jurisdiction over the enterprise zone where the business
57	is located, as applicable, an application which includes:
58	a. The name and address of the business claiming the
59	refund.
60	b. The identifying number assigned pursuant to s. 290.0065
61	to the enterprise zone in which the business is located.
62	c. A specific description of the property for which a
63	refund is sought, including its serial number or other permanent
64	identification number.
65	d. The location of the property.
66	e. The sales invoice or other proof of purchase of the
67	property, showing the amount of sales tax paid, the date of
68	purchase, and the name and address of the sales tax dealer from
69	whom the property was purchased.
70	f. Whether the business is a small business as defined by
71	s. 288.703(1).
72	g. If applicable, the name and address of each permanent
73	employee of the business, including, for each employee who is a
74	resident of an enterprise zone, the identifying number assigned
75	pursuant to s. 290.0065 to the enterprise zone in which the
76	employee resides.
77	3. Within 10 working days after receipt of an application,
78	the governing body or enterprise zone development agency shall
79	review the application to determine if it contains all the
80	information required pursuant to subparagraph 2. and meets the
81	criteria set out in this paragraph. The governing body or agency
82	shall certify all applications that contain the information
83	required pursuant to subparagraph 2. and meet the criteria set
84	out in this paragraph as eligible to receive a refund. If
85	applicable, the governing body or agency shall also certify if
86	20 percent of the employees of the business are residents of an
87	enterprise zone, excluding temporary and part-time employees.
88	The certification shall be in writing, and a copy of the
89	certification shall be transmitted to the executive director of
90	the Department of Revenue. The business shall be responsible for
91	forwarding a certified application to the department within the
92	time specified in subparagraph 4.
93	4. An application for a refund pursuant to this paragraph
94	must be submitted to the department within 6 months after the
95	tax is due on the business property that is purchased.
96	5. The provisions of s. 212.095 do not apply to any refund
97	application made pursuant to this paragraph. The amount refunded
98	on purchases of business property under this paragraph shall be
99	the lesser of 97 percent of the sales tax paid on such business
100	property or $5,000, or, if no less than 20 percent of the
101	employees of the business are residents of an enterprise zone,
102	excluding temporary and part-time employees, the amount refunded
103	on purchases of business property under this paragraph shall be
104	the lesser of 97 percent of the sales tax paid on such business
105	property or $10,000. A refund approved pursuant to this
106	paragraph shall be made within 30 days of formal approval by the
107	department of the application for the refund. No refund shall be
108	granted under this paragraph unless the amount to be refunded
109	exceeds $100 in sales tax paid on purchases made within a 60-day
110	time period.
111	6. The department shall adopt rules governing the manner
112	and form of refund applications and may establish guidelines as
113	to the requisites for an affirmative showing of qualification
114	for exemption under this paragraph.
115	7. If the department determines that the business property
116	is used outside an enterprise zone within 3 years from the date
117	of purchase, the amount of taxes refunded to the business
118	purchasing such business property shall immediately be due and
119	payable to the department by the business, together with the
120	appropriate interest and penalty, computed from the date of
121	purchase, in the manner provided by this chapter.
122	Notwithstanding this subparagraph, business property used
123	exclusively in:
124	a. Licensed commercial fishing vessels,
125	b. Fishing guide boats, or
126	c. Ecotourism guide boats
127
128	that leave and return to a fixed location within an area
129	designated under s. 370.28 are eligible for the exemption
130	provided under this paragraph if all requirements of this
131	paragraph are met. Such vessels and boats must be owned by a
132	business that is eligible to receive the exemption provided
133	under this paragraph. This exemption does not apply to the
134	purchase of a vessel or boat.
135	8. The department shall deduct an amount equal to 10
136	percent of each refund granted under the provisions of this
137	paragraph from the amount transferred into the Local Government
138	Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
139	for the county area in which the business property is located
140	and shall transfer that amount to the General Revenue Fund.
141	9. For the purposes of this exemption, "business property"
142	means new or used property defined as "recovery property" in s.
143	168(c) of the Internal Revenue Code of 1954, as amended, except:
144	a. Property classified as 3-year property under s.
145	168(c)(2)(A) of the Internal Revenue Code of 1954, as amended.;
146	b. Industrial machinery and equipment as defined in sub-
147	subparagraph (b)6.a. and eligible for exemption under paragraph
148	(b).;
149	c. Building materials as defined in sub-subparagraph
150	(g)8.a.; and
151	d. Business property having a sales price of under $500
152	$5,000per unit.
153	10. The provisions of this paragraph shall expire and be
154	void on December 31, 2005.
155	(o) Building materials in redevelopment projects.--
156	1. As used in this paragraph, the term:
157	a. "Building materials" means tangible personal property
158	that becomes a component part of a housing project or a mixed-
159	use project.
160	b. "Housing project" means the conversion of an existing
161	manufacturing or industrial building to housing units in a
162	designated an urban job tax credit high-crimearea, enterprise
163	zone, empowerment zone, Front Porch Community, designated
164	brownfield area, or urban infill area and in which the developer
165	agrees to set aside at least 20 percent of the housing units in
166	the project for low-income and moderate-income persons or the
167	construction in a designated brownfield area of affordable
168	housing for persons described in s. 420.0004(9), (10), or (14),
169	or in s. 159.603(7).
170	c. "Mixed-use project" means the conversion of an existing
171	manufacturing or industrial building to mixed-use units that
172	include artists' studios, art and entertainment services, or
173	other compatible uses. A mixed-use project must be located in
174	designated an urban job tax credit high-crimearea, enterprise
175	zone, empowerment zone, Front Porch Community, designated
176	brownfield area, or urban infill area, and the developer must
177	agree to set aside at least 20 percent of the square footage of
178	the project for low-income and moderate-income housing.
179	d. "Substantially completed" has the same meaning as
180	provided in s. 192.042(1).
181	2. Building materials used in the construction of a
182	housing project or mixed-use project are exempt from the tax
183	imposed by this chapter upon an affirmative showing to the
184	satisfaction of the department that the requirements of this
185	paragraph have been met. This exemption inures to the owner
186	through a refund of previously paid taxes. To receive this
187	refund, the owner must file an application under oath with the
188	department which includes:
189	a. The name and address of the owner.
190	b. The address and assessment roll parcel number of the
191	project for which a refund is sought.
192	c. A copy of the building permit issued for the project.
193	d. A certification by the local building code inspector
194	that the project is substantially completed.
195	e. A sworn statement, under penalty of perjury, from the
196	general contractor licensed in this state with whom the owner
197	contracted to construct the project, which statement lists the
198	building materials used in the construction of the project and
199	the actual cost thereof, and the amount of sales tax paid on
200	these materials. If a general contractor was not used, the owner
201	shall provide this information in a sworn statement, under
202	penalty of perjury. Copies of invoices evidencing payment of
203	sales tax must be attached to the sworn statement.
204	3. An application for a refund under this paragraph must
205	be submitted to the department within 6 months after the date
206	the project is deemed to be substantially completed by the local
207	building code inspector. Within 30 working days after receipt of
208	the application, the department shall determine if it meets the
209	requirements of this paragraph. A refund approved pursuant to
210	this paragraph shall be made within 30 days after formal
211	approval of the application by the department. The provisions of
212	s. 212.095 do not apply to any refund application made under
213	this paragraph.
214	4. The department shall establish by rule an application
215	form and criteria for establishing eligibility for exemption
216	under this paragraph.
217	5. The exemption shall apply to purchases of materials on
218	or after July 1, 2000.
219	(q) Community contribution tax credit for donations.--
220	1. Authorization.--Beginning July 1, 2001, persons who are
221	registered with the department under s. 212.18 to collect or
222	remit sales or use tax and who make donations to eligible
223	sponsors are eligible for tax credits against their state sales
224	and use tax liabilities as provided in this paragraph:
225	a. The credit shall be computed as 50 percent of the
226	person's approved annual community contribution.;
227	b. The credit shall be granted as a refund against state
228	sales and use taxes reported on returns and remitted in the 12
229	months preceding the date of application to the department for
230	the credit as required in sub-subparagraph 3.c. If the annual
231	credit is not fully used through such refund because of
232	insufficient tax payments during the applicable 12-month period,
233	the unused amount may be included in an application for a refund
234	made pursuant to sub-subparagraph 3.c. in subsequent years
235	against the total tax payments made for such year. Carryover
236	credits may be applied for a 3-year period without regard to any
237	time limitation that would otherwise apply under s. 215.26.;
238	c. No person shall receive more than $200,000 in annual
239	tax credits for all approved community contributions made in any
240	one year.;
241	d. All proposals for the granting of the tax credit shall
242	require the prior approval of the Office of Tourism, Trade, and
243	Economic Development.;
244	e. The total amount of tax credits which may be granted
245	for all programs approved under this paragraph, s. 220.183, and
246	s. 624.5105 is $10 million annually. Fifteen percent of the
247	community contribution tax credit pool shall be set aside for
248	the first 6 months of the fiscal year for projects located in a
249	rural enterprise zone as defined in s. 290.004(8).; and
250	f. A person who is eligible to receive the credit provided
251	for in this paragraph, s. 220.183, or s. 624.5105 may receive
252	the credit only under the one section of the person's choice.
253	2. Eligibility requirements.--
254	a. A community contribution by a person must be in the
255	following form:
256	(I) Cash or other liquid assets;
257	(II) Real property;
258	(III) Goods or inventory; or
259	(IV) Other physical resources as identified by the Office
260	of Tourism, Trade, and Economic Development.
261	b. All community contributions must be reserved
262	exclusively for use in a project. As used in this sub-
263	subparagraph, the term "project" means any activity undertaken
264	by an eligible sponsor which is designed to construct, improve,
265	or substantially rehabilitate housing that is affordable to low-
266	income or very-low-income households as defined in s.
267	420.9071(19) and (28); designed to provide commercial,
268	industrial, or public resources and facilities; or designed to
269	improve entrepreneurial and job-development opportunities for
270	low-income persons. A project may be the investment necessary to
271	increase access to high-speed broadband capability in rural
272	communities with enterprise zones, including projects that
273	result in improvements to communications assets that are owned
274	by a business. A project may include the provision of museum
275	educational programs and materials that are directly related to
276	any project approved between January 1, 1996, and December 31,
277	1999, and located in an enterprise zone as referenced in s.
278	290.00675. This paragraph does not preclude projects that
279	propose to construct or rehabilitate housing for low-income or
280	very-low-income households on scattered sites. The Office of
281	Tourism, Trade, and Economic Development may reserve up to 50
282	percent of the available annual tax credits for housing for
283	very-low-income households pursuant to s. 420.9071(28) for the
284	first 6 months of the fiscal year. With respect to housing,
285	contributions may be used to pay the following eligible low-
286	income and very-low-income housing-related activities:
287	(I) Project development impact and management fees for
288	low-income or very-low-income housing projects;
289	(II) Down payment and closing costs for eligible persons,
290	as defined in s. 420.9071(19) and (28);
291	(III) Administrative costs, including housing counseling
292	and marketing fees, not to exceed 10 percent of the community
293	contribution, directly related to low-income or very-low-income
294	projects; and
295	(IV) Removal of liens recorded against residential
296	property by municipal, county, or special district local
297	governments when satisfaction of the lien is a necessary
298	precedent to the transfer of the property to an eligible person,
299	as defined in s. 420.9071(19) and (28), for the purpose of
300	promoting home ownership. Contributions for lien removal must be
301	received from a nonrelated third party.
302	c. The project must be undertaken by an "eligible
303	sponsor," which includes:
304	(I) A community action program;
305	(II) A nonprofit community-based development organization
306	whose mission is the provision of housing for low-income or
307	very-low-income households or increasing entrepreneurial and
308	job-development opportunities for low-income persons;
309	(III) A neighborhood housing services corporation;
310	(IV) A local housing authority created under chapter 421;
311	(V) A community redevelopment agency created under s.
312	163.356;
313	(VI) The Florida Industrial Development Corporation;
314	(VII) A historic preservation district agency or
315	organization;
316	(VIII) A regional workforce board;
317	(IX) A direct-support organization as provided in s.
318	1009.983;
319	(X) An enterprise zone development agency created under s.
320	290.0056;
321	(XI) A community-based organization incorporated under
322	chapter 617 which is recognized as educational, charitable, or
323	scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
324	and whose bylaws and articles of incorporation include
325	affordable housing, economic development, or community
326	development as the primary mission of the corporation;
327	(XII) Units of local government;
328	(XIII) Units of state government; or
329	(XIV) Any other agency that the Office of Tourism, Trade,
330	and Economic Development designates by rule.
331
332	In no event may a contributing person have a financial interest
333	in the eligible sponsor.
334	d. The project must be located in an area designated an
335	enterprise zone or a Front Porch Florida Community pursuant to
336	s. 14.2015(9)(b), unless the project increases access to high-
337	speed broadband capability for rural communities with enterprise
338	zones but is physically located outside the designated rural
339	zone boundaries. Any project designed to construct or
340	rehabilitate housing for low-income or very-low-income
341	households as defined in s. 420.0971(19) and (28) is exempt from
342	the area requirement of this sub-subparagraph.
343	3. Application requirements.--
344	a. Any eligible sponsor seeking to participate in this
345	program must submit a proposal to the Office of Tourism, Trade,
346	and Economic Development which sets forth the name of the
347	sponsor, a description of the project, and the area in which the
348	project is located, together with such supporting information as
349	is prescribed by rule. The proposal must also contain a
350	resolution from the local governmental unit in which the project
351	is located certifying that the project is consistent with local
352	plans and regulations.
353	b. Any person seeking to participate in this program must
354	submit an application for tax credit to the Office of Tourism,
355	Trade, and Economic Development which sets forth the name of the
356	sponsor, a description of the project, and the type, value, and
357	purpose of the contribution. The sponsor shall verify the terms
358	of the application and indicate its receipt of the contribution,
359	which verification must be in writing and accompany the
360	application for tax credit. The person must submit a separate
361	tax credit application to the office for each individual
362	contribution that it makes to each individual project.
363	c. Any person who has received notification from the
364	Office of Tourism, Trade, and Economic Development that a tax
365	credit has been approved must apply to the department to receive
366	the refund. Application must be made on the form prescribed for
367	claiming refunds of sales and use taxes and be accompanied by a
368	copy of the notification. A person may submit only one
369	application for refund to the department within any 12-month
370	period.
371	4. Administration.--
372	a. The Office of Tourism, Trade, and Economic Development
373	may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary
374	to administer this paragraph, including rules for the approval
375	or disapproval of proposals by a person.
376	b. The decision of the Office of Tourism, Trade, and
377	Economic Development must be in writing, and, if approved, the
378	notification shall state the maximum credit allowable to the
379	person. Upon approval, the office shall transmit a copy of the
380	decision to the Department of Revenue.
381	c. The Office of Tourism, Trade, and Economic Development
382	shall periodically monitor all projects in a manner consistent
383	with available resources to ensure that resources are used in
384	accordance with this paragraph; however, each project must be
385	reviewed at least once every 2 years.
386	d. The Office of Tourism, Trade, and Economic Development
387	shall, in consultation with the Department of Community Affairs,
388	the Florida Housing Finance Corporation, and the statewide and
389	regional housing and financial intermediaries, market the
390	availability of the community contribution tax credit program to
391	community-based organizations.
392	5. Expiration.--This paragraph expires June 30, 2005;
393	however, any accrued credit carryover that is unused on that
394	date may be used until the expiration of the 3-year carryover
395	period for such credit.
396	Section 2. Section 212.097, Florida Statutes, is amended
397	to read:
398	212.097 Designated Urban High-Crime Area Job Tax Credit
399	AreaProgram.--
400	(1) As used in this section, the term:
401	(a) "Eligible business" means any sole proprietorship,
402	firm, partnership, or corporation that is located in a
403	designated urban job tax credit area qualified countyand is
404	predominantly engaged in, or is headquarters for a business
405	predominantly engaged in, activities usually provided for
406	consideration by firms classified within the following standard
407	industrial classifications: SIC 01-SIC 09 (agriculture,
408	forestry, and fishing); SIC 20-SIC 39 (manufacturing); SIC 52-
409	SIC 57 and SIC 59 (retail); SIC 422 (public warehousing and
410	storage); SIC 70 (hotels and other lodging places); SIC 7391
411	(research and development); SIC 781 (motion picture production
412	and allied services); SIC 7992 (public golf courses); andSIC
413	7996 (amusement parks), and a targeted industry eligible for the
414	qualified target industry business tax refund under s. 288.106.
415	A call center or similar customer service operation that
416	services a multistate market or international market is also an
417	eligible business. In addition, the Office of Tourism, Trade,
418	and Economic Development may, as part of its final budget
419	request submitted pursuant to s. 216.023, recommend additions to
420	or deletions from the list of standard industrial
421	classifications used to determine an eligible business, and the
422	Legislature may implement such recommendations. Excluded from
423	eligible receipts are receipts from retail sales, except such
424	receipts for SIC 52-SIC 57 and SIC 59 (retail) hotels and other
425	lodging places classified in SIC 70, public golf courses in SIC
426	7992, and amusement parks in SIC 7996. For purposes of this
427	paragraph, the term "predominantly" means that more than 50
428	percent of the business's gross receipts from all sources is
429	generated by those activities usually provided for consideration
430	by firms in the specified standard industrial classification.
431	The determination of whether the business is located in a
432	designated urban job tax credit qualified high-crime area and
433	the tier ranking of that areamust be based on the date of
434	application for the credit under this section. Commonly owned
435	and controlled entities are to be considered a single business
436	entity.
437	(b) "Qualified employee" means any employee of an eligible
438	business who performs duties in connection with the operations
439	of the business on a regular, full-time basis for an average of
440	at least 36 hours per week for at least 3 months within the
441	designated urban job tax credit qualified high-crimearea in
442	which the eligible business is located. An owner or partner of
443	the eligible business is not a qualified employee. The term also
444	includes an employee leased from an employee leasing company
445	licensed under chapter 468, if such employee has been
446	continuously leased to the employer for an average of at least
447	36 hours per week for more than 6 months.
448	(c) "New business" means any eligible business first
449	beginning operation on a site in a designated urban job tax
450	credit qualified high-crimearea and clearly separate from any
451	other commercial or business operation of the business entity
452	within a designated urban job tax credit qualified high-crime
453	area. A business entity that operated an eligible business
454	within a designated urban job tax credit qualified high-crime
455	area within the 48 months before the period provided for
456	application by subsection (2) is not considered a new business.
457	(d) "Existing business" means any eligible business that
458	does not meet the criteria for a new business.
459	(e) "Designated urban job tax credit Qualified high-crime
460	area" means an area selected by the Office of Tourism, Trade,
461	and Economic Development in the following manner: every third
462	year,the office shall rank and tier those areas nominated under
463	subsection (7), according to the highest level of distress
464	experienced in the categories enumerated under subsection (7).
465	The Office of Tourism, Trade, and Economic Development shall
466	designate the 30 highest-distress-profile urban areas as
467	eligible participants under the urban job tax credit program
468	following prioritized criteria:
469	1. Highest arrest rates within the geographic area for
470	violent crime and for such other crimes as drug sale, drug
471	possession, prostitution, vandalism, and civil disturbances;
472	2. Highest reported crime volume and rate of specific
473	property crimes such as business and residential burglary, motor
474	vehicle theft, and vandalism;
475	3. Highest percentage of reported index crimes that are
476	violent in nature;
477	4. Highest overall index crime volume for the area; and
478	5. Highest overall index crime rate for the geographic
479	area.
480
481	Tier-one areas are ranked 1 through 5 and represent the highest
482	crime areas according to this ranking. Tier-two areas are ranked
483	6 through 10 according to this ranking. Tier-three areas are
484	ranked 11 through 15.Notwithstanding this definition,
485	"designated urban job tax credit qualified high-crimearea" also
486	means an area that has been designated as a federal Empowerment
487	Zone pursuant to the Taxpayer Relief Act of 1997 or the
488	Community Tax Relief Act of 2000. Such a designated area is
489	ranked in tier three until the areas are reevaluated by the
490	Office of Tourism, Trade, and Economic Development.
491	(f) "Central business district" means an area comprised of
492	at least 80 percent commercial and government buildings and
493	properties; characterized by a high concentration of retail
494	businesses, service businesses, offices, theaters, and hotels;
495	and located in a Department of Transportation urban service
496	area. (g) "Urban" means a densely populated nonrural area
497	located within an urban county which consists of a cluster of
498	one or more census blocks, each of which has a population
499	density of at least 400 people per square mile, or an area
500	defined by the most recent United States Census as urban.
501	(2) A new eligible business may apply for a tax credit
502	under this subsection once at any time during its first year of
503	operation. A new eligible business in a designated urban job tax
504	credit tier-one qualified high-crimearea which has at least 10
505	qualified employees on the date of application shall receive a
506	$1,500 tax credit for each such employee. A new eligible
507	business in a tier-two qualified high-crime area which has at
508	least 20 qualified employees on the date of application shall
509	receive a $1,000 tax credit for each such employee. A new
510	eligible business in a tier-three qualified high-crime area
511	which has at least 30 qualified employees on the date of
512	application shall receive a $500 tax credit for each such
513	employee.
514	(3) An existing eligible business may apply for a tax
515	credit under this subsection at any time it is entitled to such
516	credit, except as restricted by this subsection. An existing
517	eligible business in a designated urban job tax credit tier-one
518	qualified high-crimearea which on the date of application has
519	at least 5 more qualified employees than it had 1 year prior to
520	its date of application shall receive a $1,500 tax credit for
521	each such additional employee. An existing eligible business in
522	a tier-two qualified high-crime area which on the date of
523	application has at least 10 more qualified employees than it had
524	1 year prior to its date of application shall receive a$1,000
525	credit for each such additional employee. An existing business
526	in a tier-three qualified high-crime area which on the date of
527	application has at least 15 more qualified employees than it had
528	1 year prior to its date of application shall receive a $500 tax
529	credit for each such additional employee.An existing eligible
530	business may apply for the credit under this subsection no more
531	than once in any 12-month period. Any existing eligible business
532	that received a credit under subsection (2) may not apply for
533	the credit under this subsection sooner than 12 months after the
534	application date for the credit under subsection (2).
535	(4) For any new eligible business receiving a credit
536	pursuant to subsection (2), an additional $500 credit shall be
537	provided for any qualified employee who is a welfare transition
538	program participant. For any existing eligible business
539	receiving a credit pursuant to subsection (3), an additional
540	$500 credit shall be provided for any qualified employee who is
541	a welfare transition program participant. Such employee must be
542	employed on the application date and have been employed less
543	than 1 year. This credit shall be in addition to other credits
544	pursuant to this section regardless of the tier-level of the
545	high-crime area. Appropriate documentation concerning the
546	eligibility of an employee for this credit must be submitted as
547	determined by the department.
548	(5) To be eligible for a tax credit under subsection (3),
549	the number of qualified employees employed 1 year prior to the
550	application date must be no lower than the number of qualified
551	employees on the application date on which a credit under this
552	section was based for any previous application, including an
553	application under subsection (2).
554	(6) Any county or municipality, or a county and one or
555	more municipalities together, may apply to the Office of
556	Tourism, Trade, and Economic Development for the designation of
557	an area as a designated urban job tax credit high-crimearea
558	after the adoption by the governing body or bodies of a
559	resolution that:
560	(a) Finds that an urban a high-crimearea exists in such
561	county or municipality, or in both the county and one or more
562	municipalities, which chronically exhibits extreme and
563	unacceptable levels of poverty, unemployment, physical
564	deterioration, and economic disinvestment;
565	(b) Determines that the rehabilitation, conservation, or
566	redevelopment, or a combination thereof, of such an urban a
567	high-crimearea is necessary in the interest of the health,
568	safety, and welfare of the residents of such county or
569	municipality, or such county and one or more municipalities; and
570	(c) Determines that the revitalization of such an urban a
571	high-crimearea can occur if the public sector or private sector
572	can be induced to invest its own resources in productive
573	enterprises that build or rebuild the economic viability of the
574	area.
575	(7) The governing body of the entity nominating the area
576	shall demonstrate provideto the Office of Tourism, Trade, and
577	Economic Development that the area meets thefollowing:
578	(a) Income characteristics:
579	1. Forty percent of area residents are earning wages on an
580	annual basis that are equal to or less than the annual wage of a
581	person who is earning minimum wage; or
582	2. More than 20 percent of residents or families live
583	below the federal standard of poverty for individuals or a
584	family of four. The overall index crime rate for the geographic
585	area;
586	(b) Education characteristics:
587	1. Has a high school dropout rate higher than the county
588	average; or
589	2. Has a high school graduation rate lower than the state
590	average. The overall index crime volume for the area;
591	(c) Workforce and employment characteristics:
592	1. Has an unemployment rate at least 3 percentage points
593	higher than the state's unemployment rate;
594	2. More than 50 percent of families subject to the
595	welfare-to-work transition time limit are either within 6 months
596	of the time limit or are receiving cash assistance under a
597	period of hardship extension to the time limit; or
598	3. Is identified as a labor surplus area using the
599	criteria established by the United States Department of Labor's
600	Employment and Training Administration. The percentage of
601	reported index crimes that are violent in nature;
602	(d) Crime characteristics:
603	1. Has an arrest rate higher than the state's average rate
604	for such crimes as drug sale, drug possession, prostitution,
605	vandalism, and civil disturbances, as recorded by total crime
606	index of the Department of Law Enforcement; or
607	2. Ranks in the top 30 percent of zip codes with reported
608	crimes that are violent in nature. The reported crime volume and
609	rate of specific property crimes such as business and
610	residential burglary, motor vehicle theft, and vandalism; and
611	(e) Residential and commercial property related
612	characteristics:
613	1. Fifty percent or more of area residents rent;
614	2.a. Property values are within the lower 50 percent of
615	the county's assessed property values; or
616	b. More than 5 percent of area homes, apartments, or
617	buildings are abandoned, have been condemned within the previous
618	24 months, or have a greater number of violations of the Florida
619	Building Code than recorded in the remainder of the county or
620	municipality; or
621	c. Tax or special assessment delinquencies exceed the fair
622	value of the land The arrest rates within the geographic area
623	for violent crime and for such other crimes as drug sale, drug
624	possession, prostitution, disorderly conduct, vandalism, and
625	other public-order offenses.
626	(8) A municipality, or a county and one or more
627	municipalities together, may not nominate more than one urban
628	high-crimearea. However, any county as defined by s. 125.011(1)
629	may nominate no more than three urban high-crimeareas.
630	(9)(a)An area nominated by a county or municipality, or a
631	county and one or more municipalities together, for designation
632	as a designated urban job tax credit high-crimearea shall be
633	eligible only if it meets the following criteria:
634	1.(a) The selected area does not exceed 20 square miles
635	and eitherhas a continuous boundary or consists of not more
636	than three noncontiguous parcels.;
637	2.(b)The selected area does not exceed the following
638	mileage limitation:
639	a.1. For areas communitieshaving a total population of
640	150,000 persons or more, the selected area does not exceed 20
641	square miles and is within 10 miles of the central business
642	district of a city.
643	b.2. For areas communitieshaving a total population of
644	50,000 persons or more, but fewer than 150,000 persons, the
645	selected area does not exceed 10 square miles and is within 7.5
646	miles of the central business district of a city.
647	c.3. For areas communitieshaving a total population of
648	20,000 persons or more, but fewer than 50,000 persons, the
649	selected area does not exceed 5 square miles and is within 5
650	miles of the central business district of a city.
651	d.4. For areas communitieshaving a total population of
652	fewer than 20,000 persons, the selected area does not exceed 3
653	square miles and is within 3 miles of the central business
654	district of a city.
655	(b) A designated urban job tax credit area may not include
656	any portion of a central business district, unless the poverty
657	rate for each census geographic block group in the district is
658	not less than 30 percent.
659	(10)(a) In order to claim this credit, an eligible
660	business must file under oath with the Office of Tourism, Trade,
661	and Economic Development a statement that includes the name and
662	address of the eligible business and any other information that
663	is required to process the application.
664	(b) Within 30 working days after receipt of an application
665	for credit, the Office of Tourism, Trade, and Economic
666	Development shall review the application to determine whether it
667	contains all the information required by this subsection and
668	meets the criteria set out in this section. Subject to the
669	provisions of paragraph (c), the Office of Tourism, Trade, and
670	Economic Development shall approve all applications that contain
671	the information required by this subsection and meet the
672	criteria set out in this section as eligible to receive a
673	credit.
674	(c) The maximum credit amount that may be approved during
675	any calendar year is $5 million, of which $1 million shall be
676	exclusively reserved for tier-one areas. The Department of
677	Revenue, in conjunction with the Office of Tourism, Trade, and
678	Economic Development, shall notify the governing bodies in areas
679	designated under this section as urban high-crime areaswhen the
680	$5 million maximum amount has been reached. Applications must be
681	considered for approval in the order in which they are received
682	without regard to whether the credit is for a new or existing
683	business. This limitation applies to the value of the credit as
684	contained in approved applications. Approved credits may be
685	taken in the time and manner allowed pursuant to this section.
686	(11) If the application is insufficient to support the
687	credit authorized in this section, the Office of Tourism, Trade,
688	and Economic Development shall deny the credit and notify the
689	business of that fact. The business may reapply for this credit
690	within 3 months after such notification.
691	(12) If the credit under this section is greater than can
692	be taken on a single tax return, excess amounts may be taken as
693	credits on any tax return submitted within 12 months after the
694	approval of the application by the department.
695	(13) It is the responsibility of each business to
696	affirmatively demonstrate to the satisfaction of the Department
697	of Revenue that it meets the requirements of this section.
698	(14) Any person who fraudulently claims this credit is
699	liable for repayment of the credit plus a mandatory penalty of
700	100 percent of the credit and is guilty of a misdemeanor of the
701	second degree, punishable as provided in s. 775.082 or s.
702	775.083.
703	(15) A corporation may take the credit under this section
704	against its corporate income tax liability, as provided in s.
705	220.1895. However, a corporation that applies its job tax credit
706	against the tax imposed by chapter 220 may not receive the
707	credit provided for in this section. A credit may be taken
708	against only one tax.
709	(16) An eligible business may transfer any unused credit
710	in whole or in units of no less than 25 percent of the remaining
711	credit. The entity acquiring such credit may use it in the same
712	manner and with the same limitation as described in this
713	section. Such transferred credits may not be transferred again
714	although they may succeed to a surviving or acquiring entity
715	subject to the same conditions and limitations described in this
716	section.
717	(17)(16)The department shall adopt rules governing the
718	manner and form of applications for credit or transfers of
719	creditand may establish guidelines concerning the requisites
720	for an affirmative showing of qualification for the credit under
721	this section.
722	Section 3. Subsection (12) of section 212.098, Florida
723	Statutes, is renumbered as subsection (13) and a new subsection
724	(12) is added to said section to read:
725	212.098 Rural Job Tax Credit Program.--
726	(12) An eligible business may transfer any unused credit
727	in whole or in units of not less than 25 percent of the
728	remaining credit. The entity acquiring such credit may use it in
729	the same manner and with the same limitation as described in
730	this section. Such transferred credits may not be transferred
731	again although they may succeed to a surviving or acquiring
732	entity subject to the same conditions and limitations described
733	in this section.
734	Section 4. Paragraph (c) of subsection (1) of section
735	220.183, Florida Statutes, is amended to read:
736	220.183 Community contribution tax credit.--
737	(1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
738	CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
739	SPENDING.--
740	(c) The total amount of tax credit which may be granted
741	for all programs approved under this section, s. 212.08(5)(q),
742	and s. 624.5105 is $10 million annually. Fifteen percent of the
743	community contribution tax credit pool shall be set aside for
744	the first 6 months of the fiscal year for projects located in a
745	rural enterprise zone as defined in s. 290.004(8).
746	Section 5. Section 220.1895, Florida Statutes, is amended
747	to read:
748	220.1895 Rural Job Tax Credit and Designated Urban High-
749	Crime Area Job Tax Credit Area.--There shall be allowed a credit
750	against the tax imposed by this chapter amounts approved by the
751	Office of Tourism, Trade, and Economic Development pursuant to
752	the Rural Job Tax Credit Program in s. 212.098 and the
753	Designated Urban High-Crime Area Job Tax Credit AreaProgram in
754	s. 212.097. A corporation that uses its credit against the tax
755	imposed by this chapter may not take the credit against the tax
756	imposed by chapter 212. If any credit granted under this section
757	is not fully used in the first year for which it becomes
758	available, the unused amount may be carried forward for a period
759	not to exceed 5 years. The carryover may be used in a subsequent
760	year when the tax imposed by this chapter for such year exceeds
761	the credit for such year under this section after applying the
762	other credits and unused credit carryovers in the order provided
763	in s. 220.02(8). The Office of Tourism, Trade, and Economic
764	Development shall conduct a review of the Urban High-Crime Area
765	Job Tax Credit and the Rural Job Tax Credit Program and submit
766	its report to the Governor, the President of the Senate, and the
767	Speaker of the House of Representatives by February 1, 2000.
768	Section 6. Subsection (7) of section 288.106, Florida
769	Statutes, is amended to read:
770	288.106 Tax refund program for qualified target industry
771	businesses.--
772	(7) EXPIRATION.--This section expires June 30, 2009 2004.
773	However, a tax refund agreement in effect on that date shall
774	continue in effect in accordance with the terms of the
775	agreement.
776	Section 7. Subsection (2) of section 288.99, Florida
777	Statutes, is amended to read:
778	288.99 Certified Capital Company Act.--
779	(2) PURPOSE.--The primary purpose of this act is to
780	stimulate a substantial increase in venture capital investments
781	in this state by providing an incentive for insurance companies
782	to invest in certified capital companies in this state which, in
783	turn, will make investments in new businesses or in expanding
784	businesses, including minority-owned or minority-operated
785	businesses and businesses located in a designated Front Porch
786	community, enterprise zone, designated urban job tax credit
787	high-crimearea, rural job tax credit county, or nationally
788	recognized historic district. The increase in investment capital
789	flowing into new or expanding businesses is intended to
790	contribute to employment growth, create jobs which exceed the
791	average wage for the county in which the jobs are created, and
792	expand or diversify the economic base of this state.
793	Section 8. Paragraph (c) of subsection (1) of section
794	624.5105, Florida Statutes, is amended to read:
795	624.5105 Community contribution tax credit; authorization;
796	limitations; eligibility and application requirements;
797	administration; definitions; expiration.--
798	(1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
799	(c) The total amount of tax credit which may be granted
800	for all programs approved under this section and s. 220.183 is
801	$10 million annually. Fifteen percent of the community
802	contribution tax credit pool shall be set aside for the first 6
803	months of the fiscal year for projects located in a rural
804	enterprise zone as defined in s. 290.004(8).
805	Section 9. This act shall take effect upon becoming a law.