Senate Bill sb1448

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    Florida Senate - 2005                                  SB 1448

    By Senator Constantine





    22-854A-05

  1                      A bill to be entitled

  2         An act relating to the redevelopment of

  3         brownfields; amending ss. 199.1055, 220.1845,

  4         and 376.30781, F.S.; increasing the amount of

  5         credit which may be applied against the tax on

  6         intangible personal property and the corporate

  7         income tax for the voluntary cleanup costs of a

  8         contaminated site; increasing the amount that

  9         may be received by the taxpayer as an incentive

10         to complete the cleanup in the final year;

11         amending s. 288.9015, F.S.; requiring

12         Enterprise Florida, Inc., to aggressively

13         market brownfields; amending s. 376.86, F.S.,

14         relating to the Brownfield Areas Loan Guarantee

15         Program; increasing the amount of the loan

16         guarantee for redevelopment projects in

17         brownfield areas; repealing ss. 376.87 and

18         376.875, F.S., relating to brownfield property

19         ownership clearance assistance and the

20         Brownfield Property Ownership Clearance

21         Assistance Revolving Loan Trust Fund; providing

22         an effective date.

23  

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

25  

26         Section 1.  Section 199.1055, Florida Statutes, is

27  amended to read:

28         199.1055  Contaminated site rehabilitation tax

29  credit.--

30         (1)  AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.--

31  

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 1         (a)  A credit in the amount of 40 35 percent of the

 2  costs of voluntary cleanup activity that is integral to site

 3  rehabilitation at the following sites is available against any

 4  tax due for a taxable year under s. 199.032, less any credit

 5  allowed by former s. 220.68 for that year:

 6         1.  A drycleaning-solvent-contaminated site eligible

 7  for state-funded site rehabilitation under s. 376.3078(3);

 8         2.  A drycleaning-solvent-contaminated site at which

 9  cleanup is undertaken by the real property owner pursuant to

10  s. 376.3078(11), if the real property owner is not also, and

11  has never been, the owner or operator of the drycleaning

12  facility where the contamination exists; or

13         3.  A brownfield site in a designated brownfield area

14  under s. 376.80.

15         (b)  A tax credit applicant, or multiple tax credit

16  applicants working jointly to clean up a single site, may not

17  be granted more than $250,000 per year in tax credits for each

18  site voluntarily rehabilitated. Multiple tax credit applicants

19  shall be granted tax credits in the same proportion as their

20  contribution to payment of cleanup costs. Subject to the same

21  conditions and limitations as provided in this section, a

22  municipality, county, or other tax credit applicant which

23  voluntarily rehabilitates a site may receive not more than

24  $250,000 per year in tax credits which it can subsequently

25  transfer subject to the provisions in paragraph (g).

26         (c)  If the credit granted under this section is not

27  fully used in any one year because of insufficient tax

28  liability on the part of the tax credit applicant, the unused

29  amount may be carried forward for a period not to exceed 5

30  years. Five years after the date a credit is granted under

31  this section, such credit expires and may not be used.

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 1  However, if during the 5-year period the credit is

 2  transferred, in whole or in part, pursuant to paragraph (g),

 3  each transferee has 5 years after the date of transfer to use

 4  its credit.

 5         (d)  A taxpayer that receives a credit under s.

 6  220.1845 is ineligible to receive credit under this section in

 7  a given tax year.

 8         (e)  A tax credit applicant that receives state-funded

 9  site rehabilitation pursuant to s. 376.3078(3) for

10  rehabilitation of a drycleaning-solvent-contaminated site is

11  ineligible to receive credit under this section for costs

12  incurred by the tax credit applicant in conjunction with the

13  rehabilitation of that site during the same time period that

14  state-administered site rehabilitation was underway.

15         (f)  The total amount of the tax credits which may be

16  granted under this section and s. 220.1845 is $2 million

17  annually.

18         (g)1.  Tax credits that may be available under this

19  section to an entity eligible under s. 376.30781 may be

20  transferred after a merger or acquisition to the surviving or

21  acquiring entity and used in the same manner with the same

22  limitations.

23         2.  The entity or its surviving or acquiring entity as

24  described in subparagraph 1., may transfer any unused credit

25  in whole or in units of no less than 25 percent of the

26  remaining credit. The entity acquiring such credit may use it

27  in the same manner and with the same limitation as described

28  in this section. Such transferred credits may not be

29  transferred again although they may succeed to a surviving or

30  acquiring entity subject to the same conditions and

31  limitations as described in this section.

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 1         3.  In the event the credit provided for under this

 2  section is reduced either as a result of a determination by

 3  the Department of Environmental Protection or an examination

 4  or audit by the Department of Revenue, such tax deficiency

 5  shall be recovered from the first entity, or the surviving or

 6  acquiring entity, to have claimed such credit up to the amount

 7  of credit taken. Any subsequent deficiencies shall be assessed

 8  against any entity acquiring and claiming such credit, or in

 9  the case of multiple succeeding entities in the order of

10  credit succession.

11         (h)  In order to encourage completion of site

12  rehabilitation at contaminated sites being voluntarily cleaned

13  up and eligible for a tax credit under this section, the tax

14  credit applicant may claim an additional 10 percent of the

15  total cleanup costs, not to exceed $250,000 $50,000, in the

16  final year of cleanup as evidenced by the Department of

17  Environmental Protection issuing a "No Further Action" order

18  for that site.

19         (2)  FILING REQUIREMENTS.--Any taxpayer that wishes to

20  obtain credit under this section must submit with its return a

21  tax credit certificate approving partial tax credits issued by

22  the Department of Environmental Protection under s. 376.30781.

23         (3)  ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT

24  FORFEITURE.--

25         (a)  The Department of Revenue may adopt rules to

26  prescribe any necessary forms required to claim a tax credit

27  under this section and to provide the administrative

28  guidelines and procedures required to administer this section.

29         (b)  In addition to its existing audit and

30  investigation authority relating to chapters 199 and 220, the

31  Department of Revenue may perform any additional financial and

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 1  technical audits and investigations, including examining the

 2  accounts, books, or records of the tax credit applicant, which

 3  are necessary to verify the site rehabilitation costs included

 4  in a tax credit return and to ensure compliance with this

 5  section. The Department of Environmental Protection shall

 6  provide technical assistance, when requested by the Department

 7  of Revenue, on any technical audits performed under this

 8  section.

 9         (c)  It is grounds for forfeiture of previously claimed

10  and received tax credits if the Department of Revenue

11  determines, as a result of either an audit or information

12  received from the Department of Environmental Protection, that

13  a taxpayer received tax credits under this section to which

14  the taxpayer was not entitled. In the case of fraud, the

15  taxpayer shall be prohibited from claiming any future tax

16  credits under this section or s. 220.1845.

17         1.  The taxpayer is responsible for returning forfeited

18  tax credits to the Department of Revenue, and such funds shall

19  be paid into the General Revenue Fund of the state.

20         2.  The taxpayer shall file with the Department of

21  Revenue an amended tax return or such other report as the

22  Department of Revenue prescribes by rule and shall pay any

23  required tax within 60 days after the taxpayer receives

24  notification from the Department of Environmental Protection

25  pursuant to s. 376.30781 that previously approved tax credits

26  have been revoked or modified, if uncontested, or within 60

27  days after a final order is issued following proceedings

28  involving a contested revocation or modification order.

29         3.  A notice of deficiency may be issued by the

30  Department of Revenue at any time within 5 years after the

31  date the taxpayer receives notification from the Department of

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 1  Environmental Protection pursuant to s. 376.30781 that

 2  previously approved tax credits have been revoked or modified.

 3  If a taxpayer fails to notify the Department of Revenue of any

 4  change in its tax credit claimed, a notice of deficiency may

 5  be issued at any time. In either case, the amount of any

 6  proposed assessment set forth in such notice of deficiency

 7  shall be limited to the amount of any deficiency resulting

 8  under this section from the recomputation of the taxpayer's

 9  tax for the taxable year.

10         4.  Any taxpayer that fails to report and timely pay

11  any tax due as a result of the forfeiture of its tax credit is

12  in violation of this section and is subject to applicable

13  penalty and interest.

14         Section 2.  Section 220.1845, Florida Statutes, is

15  amended to read:

16         220.1845  Contaminated site rehabilitation tax

17  credit.--

18         (1)  AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.--

19         (a)  A credit in the amount of 40 35 percent of the

20  costs of voluntary cleanup activity that is integral to site

21  rehabilitation at the following sites is available against any

22  tax due for a taxable year under this chapter:

23         1.  A drycleaning-solvent-contaminated site eligible

24  for state-funded site rehabilitation under s. 376.3078(3);

25         2.  A drycleaning-solvent-contaminated site at which

26  cleanup is undertaken by the real property owner pursuant to

27  s. 376.3078(11), if the real property owner is not also, and

28  has never been, the owner or operator of the drycleaning

29  facility where the contamination exists; or

30         3.  A brownfield site in a designated brownfield area

31  under s. 376.80.

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 1         (b)  A tax credit applicant, or multiple tax credit

 2  applicants working jointly to clean up a single site, may not

 3  be granted more than $250,000 per year in tax credits for each

 4  site voluntarily rehabilitated. Multiple tax credit applicants

 5  shall be granted tax credits in the same proportion as their

 6  contribution to payment of cleanup costs. Subject to the same

 7  conditions and limitations as provided in this section, a

 8  municipality, county, or other tax credit applicant which

 9  voluntarily rehabilitates a site may receive not more than

10  $250,000 per year in tax credits which it can subsequently

11  transfer subject to the provisions in paragraph (h).

12         (c)  If the credit granted under this section is not

13  fully used in any one year because of insufficient tax

14  liability on the part of the corporation, the unused amount

15  may be carried forward for a period not to exceed 5 years. The

16  carryover credit may be used in a subsequent year when the tax

17  imposed by this chapter for that year exceeds the credit for

18  which the corporation is eligible in that year under this

19  section after applying the other credits and unused carryovers

20  in the order provided by s. 220.02(8). Five years after the

21  date a credit is granted under this section, such credit

22  expires and may not be used. However, if during the 5-year

23  period the credit is transferred, in whole or in part,

24  pursuant to paragraph (h), each transferee has 5 years after

25  the date of transfer to use its credit.

26         (d)  A taxpayer that files a consolidated return in

27  this state as a member of an affiliated group under s.

28  220.131(1) may be allowed the credit on a consolidated return

29  basis up to the amount of tax imposed upon the consolidated

30  group.

31  

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 1         (e)  A taxpayer that receives credit under s. 199.1055

 2  is ineligible to receive credit under this section in a given

 3  tax year.

 4         (f)  A tax credit applicant that receives state-funded

 5  site rehabilitation under s. 376.3078(3) for rehabilitation of

 6  a drycleaning-solvent-contaminated site is ineligible to

 7  receive credit under this section for costs incurred by the

 8  tax credit applicant in conjunction with the rehabilitation of

 9  that site during the same time period that state-administered

10  site rehabilitation was underway.

11         (g)  The total amount of the tax credits which may be

12  granted under this section and s. 199.1055 is $2 million

13  annually.

14         (h)1.  Tax credits that may be available under this

15  section to an entity eligible under s. 376.30781 may be

16  transferred after a merger or acquisition to the surviving or

17  acquiring entity and used in the same manner and with the same

18  limitations.

19         2.  The entity or its surviving or acquiring entity as

20  described in subparagraph 1., may transfer any unused credit

21  in whole or in units of no less than 25 percent of the

22  remaining credit. The entity acquiring such credit may use it

23  in the same manner and with the same limitation as described

24  in this section. Such transferred credits may not be

25  transferred again although they may succeed to a surviving or

26  acquiring entity subject to the same conditions and

27  limitations as described in this section.

28         3.  In the event the credit provided for under this

29  section is reduced either as a result of a determination by

30  the Department of Environmental Protection or an examination

31  or audit by the Department of Revenue, such tax deficiency

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 1  shall be recovered from the first entity, or the surviving or

 2  acquiring entity, to have claimed such credit up to the amount

 3  of credit taken. Any subsequent deficiencies shall be assessed

 4  against any entity acquiring and claiming such credit, or in

 5  the case of multiple succeeding entities in the order of

 6  credit succession.

 7         (i)  In order to encourage completion of site

 8  rehabilitation at contaminated sites being voluntarily cleaned

 9  up and eligible for a tax credit under this section, the tax

10  credit applicant may claim an additional 10 percent of the

11  total cleanup costs, not to exceed $250,000 $50,000, in the

12  final year of cleanup as evidenced by the Department of

13  Environmental Protection issuing a "No Further Action" order

14  for that site.

15         (2)  FILING REQUIREMENTS.--Any corporation that wishes

16  to obtain credit under this section must submit with its

17  return a tax credit certificate approving partial tax credits

18  issued by the Department of Environmental Protection under s.

19  376.30781.

20         (3)  ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT

21  FORFEITURE.--

22         (a)  The Department of Revenue may adopt rules to

23  prescribe any necessary forms required to claim a tax credit

24  under this section and to provide the administrative

25  guidelines and procedures required to administer this section.

26         (b)  In addition to its existing audit and

27  investigation authority relating to chapter 199 and this

28  chapter, the Department of Revenue may perform any additional

29  financial and technical audits and investigations, including

30  examining the accounts, books, or records of the tax credit

31  applicant, which are necessary to verify the site

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 1  rehabilitation costs included in a tax credit return and to

 2  ensure compliance with this section. The Department of

 3  Environmental Protection shall provide technical assistance,

 4  when requested by the Department of Revenue, on any technical

 5  audits performed pursuant to this section.

 6         (c)  It is grounds for forfeiture of previously claimed

 7  and received tax credits if the Department of Revenue

 8  determines, as a result of either an audit or information

 9  received from the Department of Environmental Protection, that

10  a taxpayer received tax credits pursuant to this section to

11  which the taxpayer was not entitled. In the case of fraud, the

12  taxpayer shall be prohibited from claiming any future tax

13  credits under this section or s. 199.1055.

14         1.  The taxpayer is responsible for returning forfeited

15  tax credits to the Department of Revenue, and such funds shall

16  be paid into the General Revenue Fund of the state.

17         2.  The taxpayer shall file with the Department of

18  Revenue an amended tax return or such other report as the

19  Department of Revenue prescribes by rule and shall pay any

20  required tax within 60 days after the taxpayer receives

21  notification from the Department of Environmental Protection

22  pursuant to s. 376.30781 that previously approved tax credits

23  have been revoked or modified, if uncontested, or within 60

24  days after a final order is issued following proceedings

25  involving a contested revocation or modification order.

26         3.  A notice of deficiency may be issued by the

27  Department of Revenue at any time within 5 years after the

28  date the taxpayer receives notification from the Department of

29  Environmental Protection pursuant to s. 376.30781 that

30  previously approved tax credits have been revoked or modified.

31  If a taxpayer fails to notify the Department of Revenue of any

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 1  change in its tax credit claimed, a notice of deficiency may

 2  be issued at any time. In either case, the amount of any

 3  proposed assessment set forth in such notice of deficiency

 4  shall be limited to the amount of any deficiency resulting

 5  under this section from the recomputation of the taxpayer's

 6  tax for the taxable year.

 7         4.  Any taxpayer that fails to report and timely pay

 8  any tax due as a result of the forfeiture of its tax credit is

 9  in violation of this section and is subject to applicable

10  penalty and interest.

11         Section 3.  Section 376.30781, Florida Statutes, is

12  amended to read:

13         376.30781  Partial tax credits for rehabilitation of

14  drycleaning-solvent-contaminated sites and brownfield sites in

15  designated brownfield areas; application process; rulemaking

16  authority; revocation authority.--

17         (1)  The Legislature finds that:

18         (a)  To facilitate property transactions and economic

19  growth and development, it is in the interest of the state to

20  encourage the cleanup, at the earliest possible time, of

21  drycleaning-solvent-contaminated sites and brownfield sites in

22  designated brownfield areas.

23         (b)  It is the intent of the Legislature to encourage

24  the voluntary cleanup of drycleaning-solvent-contaminated

25  sites and brownfield sites in designated brownfield areas by

26  providing a partial tax credit for the restoration of such

27  property in specified circumstances.

28         (2)(a)  A credit in the amount of 40 35 percent of the

29  costs of voluntary cleanup activity that is integral to site

30  rehabilitation at the following sites is allowed pursuant to

31  ss. 199.1055 and 220.1845:

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 1         1.  A drycleaning-solvent-contaminated site eligible

 2  for state-funded site rehabilitation under s. 376.3078(3);

 3         2.  A drycleaning-solvent-contaminated site at which

 4  cleanup is undertaken by the real property owner pursuant to

 5  s. 376.3078(11), if the real property owner is not also, and

 6  has never been, the owner or operator of the drycleaning

 7  facility where the contamination exists; or

 8         3.  A brownfield site in a designated brownfield area

 9  under s. 376.80.

10         (b)  A tax credit applicant, or multiple tax credit

11  applicants working jointly to clean up a single site, may not

12  be granted more than $250,000 per year in tax credits for each

13  site voluntarily rehabilitated. Multiple tax credit applicants

14  shall be granted tax credits in the same proportion as their

15  contribution to payment of cleanup costs. Tax credits are

16  available only for site rehabilitation conducted during the

17  calendar year for which the tax credit application is

18  submitted.

19         (c)  In order to encourage completion of site

20  rehabilitation at contaminated sites that are being

21  voluntarily cleaned up and that are eligible for a tax credit

22  under this section, the tax credit applicant may claim an

23  additional 10 percent of the total cleanup costs, not to

24  exceed $250,000 $50,000, in the final year of cleanup as

25  evidenced by the Department of Environmental Protection

26  issuing a "No Further Action" order for that site.

27         (3)  The Department of Environmental Protection shall

28  be responsible for allocating the tax credits provided for in

29  ss. 199.1055 and 220.1845, not to exceed a total of $2 million

30  in tax credits annually.

31  

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 1         (4)  To claim the credit for site rehabilitation

 2  conducted during the current calendar year, each tax credit

 3  applicant must apply to the Department of Environmental

 4  Protection for an allocation of the $2 million annual credit

 5  by January 15 of the following year on a form developed by the

 6  Department of Environmental Protection in cooperation with the

 7  Department of Revenue. The form shall include an affidavit

 8  from each tax credit applicant certifying that all information

 9  contained in the application, including all records of costs

10  incurred and claimed in the tax credit application, are true

11  and correct. If the application is submitted pursuant to

12  subparagraph (2)(a)2., the form must include an affidavit

13  signed by the real property owner stating that it is not, and

14  has never been, the owner or operator of the drycleaning

15  facility where the contamination exists. Approval of partial

16  tax credits must be accomplished on a first-come, first-served

17  basis based upon the date complete applications are received

18  by the Division of Waste Management. A tax credit applicant

19  shall submit only one complete application per site for each

20  calendar year's site rehabilitation costs. Incomplete

21  placeholder applications shall not be accepted and will not

22  secure a place in the first-come, first-served application

23  line. To be eligible for a tax credit, the tax credit

24  applicant must:

25         (a)  Have entered into a voluntary cleanup agreement

26  with the Department of Environmental Protection for a

27  drycleaning-solvent-contaminated site or a Brownfield Site

28  Rehabilitation Agreement, as applicable; and

29         (b)  Have paid all deductibles pursuant to s.

30  376.3078(3)(e) for eligible drycleaning-solvent-cleanup

31  program sites.

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 1         (5)  To obtain the tax credit certificate, a tax credit

 2  applicant must annually file an application for certification,

 3  which must be received by the Division of Waste Management of

 4  the Department of Environmental Protection by January 15 of

 5  the year following the calendar year for which site

 6  rehabilitation costs are being claimed in a tax credit

 7  application. The tax credit applicant must provide all

 8  pertinent information requested on the tax credit application

 9  form, including, at a minimum, the name and address of the tax

10  credit applicant and the address and tracking identification

11  number of the eligible site. Along with the tax credit

12  application form, the tax credit applicant must submit the

13  following:

14         (a)  A nonrefundable review fee of $250 made payable to

15  the Water Quality Assurance Trust Fund to cover the

16  administrative costs associated with the department's review

17  of the tax credit application;

18         (b)  Copies of contracts and documentation of contract

19  negotiations, accounts, invoices, sales tickets, or other

20  payment records from purchases, sales, leases, or other

21  transactions involving actual costs incurred for that tax year

22  related to site rehabilitation, as that term is defined in ss.

23  376.301 and 376.79;

24         (c)  Proof that the documentation submitted pursuant to

25  paragraph (b) has been reviewed and verified by an independent

26  certified public accountant in accordance with standards

27  established by the American Institute of Certified Public

28  Accountants. Specifically, the certified public accountant

29  must attest to the accuracy and validity of the costs incurred

30  and paid by conducting an independent review of the data

31  presented by the tax credit applicant. Accuracy and validity

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 1  of costs incurred and paid would be determined once the level

 2  of effort was certified by an appropriate professional

 3  registered in this state in each contributing technical

 4  discipline. The certified public accountant's report would

 5  also attest that the costs included in the application form

 6  are not duplicated within the application. A copy of the

 7  accountant's report shall be submitted to the Department of

 8  Environmental Protection with the tax credit application; and

 9         (d)  A certification form stating that site

10  rehabilitation activities associated with the documentation

11  submitted pursuant to paragraph (b) have been conducted under

12  the observation of, and related technical documents have been

13  signed and sealed by, an appropriate professional registered

14  in this state in each contributing technical discipline. The

15  certification form shall be signed and sealed by the

16  appropriate registered professionals stating that the costs

17  incurred were integral, necessary, and required for site

18  rehabilitation, as that term is defined in ss. 376.301 and

19  376.79.

20         (6)  The certified public accountant and appropriate

21  registered professionals submitting forms as part of a tax

22  credit application must verify such forms. Verification must

23  be accomplished as provided in s. 92.525(1)(b) and subject to

24  the provisions of s. 92.525(3).

25         (7)  The Department of Environmental Protection shall

26  review the tax credit application and any supplemental

27  documentation that the tax credit applicant may submit prior

28  to the annual application deadline in order to have the

29  application considered complete, for the purpose of verifying

30  that the tax credit applicant has met the qualifying criteria

31  in subsections (2) and (4) and has submitted all required

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 1  documentation listed in subsection (5). Upon verification that

 2  the tax credit applicant has met these requirements, the

 3  department shall issue a written decision granting eligibility

 4  for partial tax credits (a tax credit certificate) in the

 5  amount of 40 35 percent of the total costs claimed, subject to

 6  the $250,000 limitation, for the calendar year for which the

 7  tax credit application is submitted based on the report of the

 8  certified public accountant and the certifications from the

 9  appropriate registered technical professionals.

10         (8)  On or before March 1, the Department of

11  Environmental Protection shall inform each eligible tax credit

12  applicant of the amount of its partial tax credit and provide

13  each eligible tax credit applicant with a tax credit

14  certificate that must be submitted with its tax return to the

15  Department of Revenue to claim the tax credit or be

16  transferred pursuant to s. 199.1055(1)(g) or s.

17  220.1845(1)(h). Credits will not result in the payment of

18  refunds if total credits exceed the amount of tax owed.

19         (9)  If a tax credit applicant does not receive a tax

20  credit allocation due to an exhaustion of the $2 million

21  annual tax credit authorization, such application will then be

22  included in the same first-come, first-served order in the

23  next year's annual tax credit allocation, if any, based on the

24  prior year application.

25         (10)  The Department of Environmental Protection may

26  adopt rules to prescribe the necessary forms required to claim

27  tax credits under this section and to provide the

28  administrative guidelines and procedures required to

29  administer this section.

30         (11)  The Department of Environmental Protection may

31  revoke or modify any written decision granting eligibility for

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 1  partial tax credits under this section if it is discovered

 2  that the tax credit applicant submitted any false statement,

 3  representation, or certification in any application, record,

 4  report, plan, or other document filed in an attempt to receive

 5  partial tax credits under this section. The Department of

 6  Environmental Protection shall immediately notify the

 7  Department of Revenue of any revoked or modified orders

 8  affecting previously granted partial tax credits.

 9  Additionally, the tax credit applicant must notify the

10  Department of Revenue of any change in its tax credit claimed.

11         (12)  A tax credit applicant who receives state-funded

12  site rehabilitation under s. 376.3078(3) for rehabilitation of

13  a drycleaning-solvent-contaminated site is ineligible to

14  receive a tax credit under s. 199.1055 or s. 220.1845 for

15  costs incurred by the tax credit applicant in conjunction with

16  the rehabilitation of that site during the same time period

17  that state-administered site rehabilitation was underway.

18         Section 4.  Subsection (2) of section 288.9015, Florida

19  Statutes, is amended to read:

20         288.9015  Enterprise Florida, Inc.; purpose; duties.--

21         (2)  It shall be the responsibility of Enterprise

22  Florida, Inc., to aggressively market Florida's rural

23  communities, distressed urban communities, brownfields, and

24  enterprise zones as locations for potential new investment, to

25  aggressively assist in the retention and expansion of existing

26  businesses in these communities, and to aggressively assist

27  these communities in the identification and development of new

28  economic development opportunities for job creation, fully

29  marketing state incentive programs such as the Qualified

30  Target Industry Tax Refund Program under s. 288.106 and the

31  

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 1  Quick Action Closing Fund under s. 288.1088 in economically

 2  distressed areas.

 3         Section 5.  Section 376.86, Florida Statutes, is

 4  amended to read:

 5         376.86  Brownfield Areas Loan Guarantee Program.--

 6         (1)  The Brownfield Areas Loan Guarantee Council is

 7  created to review and approve or deny by a majority vote of

 8  its membership, the situations and circumstances for

 9  participation in partnerships by agreements with local

10  governments, financial institutions, and others associated

11  with the redevelopment of brownfield areas pursuant to the

12  Brownfields Redevelopment Act for a limited state guaranty of

13  up to 5 years of loan guarantees or loan loss reserves issued

14  pursuant to law. The limited state loan guaranty applies only

15  to 25 10 percent of the primary lenders loans for

16  redevelopment projects in brownfield areas. A limited state

17  guaranty of private loans or a loan loss reserve is authorized

18  for lenders licensed to operate in the state upon a

19  determination by the council that such an arrangement would be

20  in the public interest and the likelihood of the success of

21  the loan is great.

22         (2)  The council shall consist of the secretary of the

23  Department of Environmental Protection or the secretary's

24  designee, the secretary of the Department of Community Affairs

25  or the secretary's designee, the Executive Director of the

26  State Board of Administration or the executive director's

27  designee, the Executive Director of the Florida Housing

28  Finance Corporation or the executive director's designee, and

29  the Director of the Governor's Office of Tourism, Trade, and

30  Economic Development or the director's designee. The

31  chairperson of the council shall be the Director of the

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 1  Governor's Office of Tourism, Trade, and Economic Development.

 2  Staff services for activities of the council shall be provided

 3  as needed by the member agencies.

 4         (3)  The council may enter into an investment agreement

 5  with the Department of Environmental Protection and the State

 6  Board of Administration concerning the investment of the

 7  balance of funds maintained in the Inland Protection Trust

 8  Fund. The investment must be limited as follows:

 9         (a)  Not more than $5 million of the balance of the

10  Inland Protection Trust Fund in a fiscal year may be at risk

11  at any time on loan guarantees or as loan loss reserves. Of

12  that amount, 15 percent shall be reserved for investment

13  agreements involving predominantly minority-owned businesses

14  which meet the requirements of subsection (4).

15         (b)  Such funds at risk at any time may not be used to

16  guarantee any loan guaranty or loan loss reserve agreement for

17  a period longer than 5 years.

18         (4)  A lender seeking a limited state guaranty for a

19  loan from the Brownfield Areas Loan Guarantee Council must

20  first provide to the council a report demonstrating that the

21  lender has reviewed the project for redevelopment of the

22  brownfield area and determined its feasibility in accordance

23  with its standard procedures. The procedures include, but are

24  not limited to:

25         (a)  Obtaining a satisfactory credit report from a

26  source deemed reliable by the lender;

27         (b)  Reviewing a report of environmental conditions at

28  the project and determining that actions are underway to

29  comply with specific recommendations;

30         (c)  Investigating the background and experience of the

31  entity to receive the loan and manage the project and

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 1  determining that the managing entity appears to possess the

 2  experience, competence, and capacity to manage the project;

 3         (d)  Determining that conditions exist to establish a

 4  financially sound redevelopment project that exposes the state

 5  loan guarantee program to a reasonable or acceptable level of

 6  risk; and

 7         (e)  Determining that the local government with

 8  jurisdiction over the area where the brownfield redevelopment

 9  project is located has committed in-kind resources, local

10  financial incentives, or local financial resources to the

11  total project cost.

12         (5)  A lender covered by a limited state guaranty for a

13  loan is not entitled to file a claim for loss pursuant to the

14  guaranty unless all reasonable and normal remedies available

15  and customary for lending institutions for resolving problems

16  of loan repayments are exhausted. If the lender has received

17  collateral security in connection with the loan, the lender

18  must first exhaust all available remedies against the

19  collateral security.

20         (6)  The council may, by rule, establish requirements

21  for the issuance of loan guarantees, including contractual

22  provisions to foster reimbursement, in the event of default,

23  to the guarantee fund.

24         (7)  The council may receive public and private funds,

25  federal grants, and private donations in carrying out its

26  responsibilities.

27         (8)  The council shall provide an annual report to the

28  Legislature by February 1 of each year describing its

29  activities and agreements approved relating to redevelopment

30  of brownfield areas. This section shall be reviewed by the

31  Legislature by January 1, 2007, and a determination made

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 1  related to the need to continue or modify this section. New

 2  loan guarantees may not be approved in 2007 until the review

 3  by the Legislature has been completed and a determination has

 4  been made as to the feasibility of continuing the use of the

 5  Inland Protection Trust Fund to guarantee portions of loans

 6  under this section.

 7         Section 6.  Sections 376.87 and 376.875, Florida

 8  Statutes, are repealed.

 9         Section 7.  This act shall take effect July 1, 2005.

10  

11            *****************************************

12                          SENATE SUMMARY

13    Increases from 35 percent to 40 percent the amount of
      credit which may be applied against the tax on intangible
14    personal property and the corporate income tax for the
      voluntary cleanup costs of a contaminated site. Increases
15    from $50,000 to $250,000 the amount that may be received
      by the taxpayer as an incentive to complete the cleanup
16    in the final year. Increases the amount of the loan
      guarantee which is available under the Brownfield Areas
17    Loan Guarantee Program from 10 percent to 25 percent.
      Abolishes the Brownfield Property Ownership Clearance
18    Assistance Revolving Loan Trust Fund.

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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