HB 0015

1
A bill to be entitled
2An act relating to the community contribution tax credit
3program; amending s. 212.08, F.S.; increasing the amount
4of available annual community contribution tax credits;
5requiring the Office of Tourism, Trade, and Economic
6Development to reserve portions of certain annual tax
7credits for donations made to eligible sponsors for
8projects that provide homeownership opportunities for
9certain households; providing requirements, criteria, and
10limitations; extending an expiration date; amending s.
11220.03, F.S.; revising a definition to delete a provision
12authorizing the office to reserve certain portions of
13available annual tax credits for donations made to
14eligible sponsors for projects that provide homeownership
15opportunities for certain households; extending an
16expiration date; amending s. 220.183, F.S.; increasing the
17amount of available annual community contribution tax
18credits; revising eligibility criteria; requiring the
19Office of Tourism, Trade, and Economic Development to
20reserve portions of certain annual tax credits for
21donations made to eligible sponsors for projects that
22provide homeownership opportunities for certain
23households; providing requirements, criteria, and
24limitations; extending an expiration date; amending s.
25624.5105, F.S.; increasing the amount of available annual
26community contribution tax credits; limiting application
27of certain retaliatory tax provisions under certain
28circumstances; revising tax credit eligibility criteria;
29requiring the Office of Tourism, Trade, and Economic
30Development to reserve portions of certain annual tax
31credits for donations made to eligible sponsors for
32projects that provide homeownership opportunities for
33certain households; providing requirements, criteria, and
34limitations; extending an expiration date; providing an
35effective date.
36
37Be It Enacted by the Legislature of the State of Florida:
38
39     Section 1.  Paragraph (q) of subsection (5) of section
40212.08, Florida Statutes, is amended to read:
41     212.08  Sales, rental, use, consumption, distribution, and
42storage tax; specified exemptions.--The sale at retail, the
43rental, the use, the consumption, the distribution, and the
44storage to be used or consumed in this state of the following
45are hereby specifically exempt from the tax imposed by this
46chapter.
47     (5)  EXEMPTIONS; ACCOUNT OF USE.--
48     (q)  Community contribution tax credit for donations.--
49     1.  Authorization.--Beginning July 1, 2001, persons who are
50registered with the department under s. 212.18 to collect or
51remit sales or use tax and who make donations to eligible
52sponsors are eligible for tax credits against their state sales
53and use tax liabilities as provided in this paragraph:
54     a.  The credit shall be computed as 50 percent of the
55person's approved annual community contribution;
56     b.  The credit shall be granted as a refund against state
57sales and use taxes reported on returns and remitted in the 12
58months preceding the date of application to the department for
59the credit as required in sub-subparagraph 3.c. If the annual
60credit is not fully used through such refund because of
61insufficient tax payments during the applicable 12-month period,
62the unused amount may be included in an application for a refund
63made pursuant to sub-subparagraph 3.c. in subsequent years
64against the total tax payments made for such year. Carryover
65credits may be applied for a 3-year period without regard to any
66time limitation that would otherwise apply under s. 215.26;
67     c.  No person shall receive more than $200,000 in annual
68tax credits for all approved community contributions made in any
69one year;
70     d.  All proposals for the granting of the tax credit shall
71require the prior approval of the Office of Tourism, Trade, and
72Economic Development;
73     e.  The total amount of tax credits which may be granted
74for all programs approved under this paragraph, s. 220.183, and
75s. 624.5105 is $15 $10 million annually; and
76     f.  A person who is eligible to receive the credit provided
77for in this paragraph, s. 220.183, or s. 624.5105 may receive
78the credit only under the one section of the person's choice.
79     2.  Eligibility requirements.--
80     a.  A community contribution by a person must be in the
81following form:
82     (I)  Cash or other liquid assets;
83     (II)  Real property;
84     (III)  Goods or inventory; or
85     (IV)  Other physical resources as identified by the Office
86of Tourism, Trade, and Economic Development.
87     b.  All community contributions must be reserved
88exclusively for use in a project. As used in this sub-
89subparagraph, the term "project" means any activity undertaken
90by an eligible sponsor which is designed to construct, improve,
91or substantially rehabilitate housing that is affordable to low-
92income or very-low-income households as defined in s.
93420.9071(19) and (28); designed to provide commercial,
94industrial, or public resources and facilities; or designed to
95improve entrepreneurial and job-development opportunities for
96low-income persons. A project may be the investment necessary to
97increase access to high-speed broadband capability in rural
98communities with enterprise zones, including projects that
99result in improvements to communications assets that are owned
100by a business. A project may include the provision of museum
101educational programs and materials that are directly related to
102any project approved between January 1, 1996, and December 31,
1031999, and located in an enterprise zone as referenced in s.
104290.00675. This paragraph does not preclude projects that
105propose to construct or rehabilitate housing for low-income or
106very-low-income households on scattered sites. The Office of
107Tourism, Trade, and Economic Development may reserve up to 50
108percent of the available annual tax credits for housing for
109very-low-income households pursuant to s. 420.9071(28) for the
110first 6 months of the fiscal year. With respect to housing,
111contributions may be used to pay the following eligible low-
112income and very-low-income housing-related activities:
113     (I)  Project development impact and management fees for
114low-income or very-low-income housing projects;
115     (II)  Down payment and closing costs for eligible persons,
116as defined in s. 420.9071(19) and (28);
117     (III)  Administrative costs, including housing counseling
118and marketing fees, not to exceed 10 percent of the community
119contribution, directly related to low-income or very-low-income
120projects; and
121     (IV)  Removal of liens recorded against residential
122property by municipal, county, or special district local
123governments when satisfaction of the lien is a necessary
124precedent to the transfer of the property to an eligible person,
125as defined in s. 420.9071(19) and (28), for the purpose of
126promoting home ownership. Contributions for lien removal must be
127received from a nonrelated third party.
128     c.  The project must be undertaken by an "eligible
129sponsor," which includes:
130     (I)  A community action program;
131     (II)  A nonprofit community-based development organization
132whose mission is the provision of housing for low-income or
133very-low-income households or increasing entrepreneurial and
134job-development opportunities for low-income persons;
135     (III)  A neighborhood housing services corporation;
136     (IV)  A local housing authority created under chapter 421;
137     (V)  A community redevelopment agency created under s.
138163.356;
139     (VI)  The Florida Industrial Development Corporation;
140     (VII)  A historic preservation district agency or
141organization;
142     (VIII)  A regional workforce board;
143     (IX)  A direct-support organization as provided in s.
1441009.983;
145     (X)  An enterprise zone development agency created under s.
146290.0056;
147     (XI)  A community-based organization incorporated under
148chapter 617 which is recognized as educational, charitable, or
149scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
150and whose bylaws and articles of incorporation include
151affordable housing, economic development, or community
152development as the primary mission of the corporation;
153     (XII)  Units of local government;
154     (XIII)  Units of state government; or
155     (XIV)  Any other agency that the Office of Tourism, Trade,
156and Economic Development designates by rule.
157
158In no event may a contributing person have a financial interest
159in the eligible sponsor.
160     d.  The project must be located in an area designated an
161enterprise zone or a Front Porch Florida Community pursuant to
162s. 20.18(6), unless the project increases access to high-speed
163broadband capability for rural communities with enterprise zones
164but is physically located outside the designated rural zone
165boundaries. Any project designed to construct or rehabilitate
166housing for low-income or very-low-income households as defined
167in s. 420.0971(19) and (28) is exempt from the area requirement
168of this sub-subparagraph.
169     e.(I)  The Office of Tourism, Trade, and Economic
170Development shall reserve 80 percent of the available annual tax
171credits for donations made to eligible sponsors for projects
172that provide homeownership opportunities for low-income or very-
173low-income households as defined in s. 420.9071(19) and (28) for
174the first 2 months of the fiscal year. If less than 80 percent
175of the annual tax credits for donations made to eligible
176sponsors for projects that provide homeownership opportunities
177for low-income or very-low-income households are approved within
178the first 2 months of the fiscal year, the office may approve
179the balance of available credits for donations made to eligible
180sponsors for projects other than those that provide
181homeownership opportunities for low-income or very-low-income
182households.
183     (II)  The office shall reserve 20 percent of the available
184annual tax credits for donations made to eligible sponsors for
185projects other than those that provide homeownership
186opportunities for low-income or very-low-income households as
187defined in s. 420.9071(19) and (28) for the first 2 months of
188the fiscal year. If less than 20 percent of the annual tax
189credits for donations made to eligible sponsors for projects
190other than those that provide homeownership opportunities for
191low-income or very-low-income households are approved within the
192first 2 months of the fiscal year, the office may approve the
193balance of available credits for donations made to eligible
194sponsors for projects that provide homeownership opportunities
195for low-income or very-low-income households.
196     (III)  If, during the first 10 business days of the state
197fiscal year, tax credit applications are received for more than
19880 percent of available annual tax credits from eligible
199sponsors for projects that provide homeownership opportunities
200for low-income or very-low-income households, the office shall
201grant the tax credits for such applications as follows:
202     (A)  If an eligible sponsor submits tax credit applications
203which in total do not exceed $200,000, the credits shall be
204granted in full if the tax credit applications are approved and
205subject to the provisions of sub-sub-subparagraph (I).
206     (B)  If an eligible sponsor submits tax credit applications
207which in total equal or exceed $200,000, the amount of tax
208credits granted pursuant to sub-sub-sub-subparagraph (A) shall
209be subtracted from the amount of available tax credits pursuant
210to sub-sub-subparagraph (I), and the remaining credits shall be
211granted to each approved tax credit application on a pro rata
212basis.
213     (C)  If, after the first 2 months of the fiscal year,
214additional credits become available pursuant to sub-sub-
215subparagraph (II), the office shall grant the tax credits by
216first increasing the credit of those who received a pro rata
217reduction and, if there are remaining credits, granting credits
218to those who applied on or after the 11th business day of the
219state fiscal year on a first-come, first-served basis.
220     (IV)  If, during the first 10 business days of the state
221fiscal year, tax credit applications are received for more than
22220 percent of available annual tax credits from eligible
223sponsors for projects other than those that provide
224homeownership opportunities for low-income or very-low-income
225households, the office shall grant the tax credits to each
226approved tax credit application on a pro rata basis. If, after
227the first 2 months of the fiscal year, additional credits become
228available pursuant to sub-sub-subparagraph (I), the office shall
229grant the tax credits by first increasing the credit of those
230who received a pro rata reduction and, if there are remaining
231credits, granting credits to those who applied on or after the
23211th business day of the state fiscal year on a first-come,
233first-served basis.
234     3.  Application requirements.--
235     a.  Any eligible sponsor seeking to participate in this
236program must submit a proposal to the Office of Tourism, Trade,
237and Economic Development which sets forth the name of the
238sponsor, a description of the project, and the area in which the
239project is located, together with such supporting information as
240is prescribed by rule. The proposal must also contain a
241resolution from the local governmental unit in which the project
242is located certifying that the project is consistent with local
243plans and regulations.
244     b.  Any person seeking to participate in this program must
245submit an application for tax credit to the Office of Tourism,
246Trade, and Economic Development which sets forth the name of the
247sponsor, a description of the project, and the type, value, and
248purpose of the contribution. The sponsor shall verify the terms
249of the application and indicate its receipt of the contribution,
250which verification must be in writing and accompany the
251application for tax credit. The person must submit a separate
252tax credit application to the office for each individual
253contribution that it makes to each individual project.
254     c.  Any person who has received notification from the
255Office of Tourism, Trade, and Economic Development that a tax
256credit has been approved must apply to the department to receive
257the refund. Application must be made on the form prescribed for
258claiming refunds of sales and use taxes and be accompanied by a
259copy of the notification. A person may submit only one
260application for refund to the department within any 12-month
261period.
262     4.  Administration.--
263     a.  The Office of Tourism, Trade, and Economic Development
264may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary
265to administer this paragraph, including rules for the approval
266or disapproval of proposals by a person.
267     b.  The decision of the Office of Tourism, Trade, and
268Economic Development must be in writing, and, if approved, the
269notification shall state the maximum credit allowable to the
270person. Upon approval, the office shall transmit a copy of the
271decision to the Department of Revenue.
272     c.  The Office of Tourism, Trade, and Economic Development
273shall periodically monitor all projects in a manner consistent
274with available resources to ensure that resources are used in
275accordance with this paragraph; however, each project must be
276reviewed at least once every 2 years.
277     d.  The Office of Tourism, Trade, and Economic Development
278shall, in consultation with the Department of Community Affairs,
279the Florida Housing Finance Corporation, and the statewide and
280regional housing and financial intermediaries, market the
281availability of the community contribution tax credit program to
282community-based organizations.
283     5.  Expiration.--This paragraph expires June 30, 2015 2005;
284however, any accrued credit carryover that is unused on that
285date may be used until the expiration of the 3-year carryover
286period for such credit.
287     Section 2.  Paragraph (t) of subsection (1) of section
288220.03, Florida Statutes, is amended to read:
289     220.03  Definitions.--
290     (1)  SPECIFIC TERMS.--When used in this code, and when not
291otherwise distinctly expressed or manifestly incompatible with
292the intent thereof, the following terms shall have the following
293meanings:
294     (t)  "Project" means any activity undertaken by an eligible
295sponsor, as defined in s. 220.183(2)(c), which is designed to
296construct, improve, or substantially rehabilitate housing that
297is affordable to low-income or very-low-income households as
298defined in s. 420.9071(19) and (28); designed to provide
299commercial, industrial, or public resources and facilities; or
300designed to improve entrepreneurial and job-development
301opportunities for low-income persons. A project may be the
302investment necessary to increase access to high-speed broadband
303capability in rural communities with enterprise zones, including
304projects that result in improvements to communications assets
305that are owned by a business. A project may include the
306provision of museum educational programs and materials that are
307directly related to any project approved between January 1,
3081996, and December 31, 1999, and located in an enterprise zone
309as referenced in s. 290.00675. This paragraph does not preclude
310projects that propose to construct or rehabilitate low-income or
311very-low-income housing on scattered sites. The Office of
312Tourism, Trade, and Economic Development may reserve up to 50
313percent of the available annual tax credits under s. 220.181 for
314housing for very-low-income households pursuant to s.
315420.9071(28) for the first 6 months of the fiscal year. With
316respect to housing, contributions may be used to pay the
317following eligible project-related activities:
318     1.  Project development, impact, and management fees for
319low-income or very-low-income housing projects;
320     2.  Down payment and closing costs for eligible persons, as
321defined in s. 420.9071(19) and (28);
322     3.  Administrative costs, including housing counseling and
323marketing fees, not to exceed 10 percent of the community
324contribution, directly related to low-income or very-low-income
325projects; and
326     4.  Removal of liens recorded against residential property
327by municipal, county, or special-district local governments when
328satisfaction of the lien is a necessary precedent to the
329transfer of the property to an eligible person, as defined in s.
330420.9071(19) and (28), for the purpose of promoting home
331ownership. Contributions for lien removal must be received from
332a nonrelated third party.
333
334The provisions of this paragraph shall expire and be void on
335June 30, 2015 2005.
336     Section 3.  Paragraph (c) of subsection (1), paragraph (b)
337of subsection (2), and subsection (5) of section 220.183,
338Florida Statutes, are amended to read:
339     220.183  Community contribution tax credit.--
340     (1)  AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
341CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
342SPENDING.--
343     (c)  The total amount of tax credit which may be granted
344for all programs approved under this section, s. 212.08(5)(q),
345and s. 624.5105 is $15 $10 million annually.
346     (2)  ELIGIBILITY REQUIREMENTS.--
347     (b)1.  All community contributions must be reserved
348exclusively for use in projects as defined in s. 220.03(1)(t).
349     2.  The Office of Tourism, Trade, and Economic Development
350shall may reserve 80 up to 50 percent of the available annual
351tax credits for housing for donations made to eligible sponsors
352for projects that provide homeownership opportunities for low-
353income or very-low-income households as defined in pursuant to
354s. 420.9071(19) and (28) for the first 2 6 months of the fiscal
355year. If less than 80 percent of the annual tax credits for
356donations made to eligible sponsors for projects that provide
357homeownership opportunities for low-income or very-low-income
358households are approved within the first 2 months of the fiscal
359year, the office may approve the balance of available credits
360for donations made to eligible sponsors for projects other than
361those that provide homeownership opportunities for low-income or
362very-low-income households.
363     3.  The office shall reserve 20 percent of the available
364annual tax credits for donations made to eligible sponsors for
365projects other than those that provide homeownership
366opportunities for low-income or very-low-income households as
367defined in s. 420.9071(19) and (28) for the first 2 months of
368the fiscal year. If less than 20 percent of the annual tax
369credits for donations made to eligible sponsors for projects
370other than those that provide homeownership opportunities for
371low-income or very-low-income households are approved within the
372first 2 months of the fiscal year, the office may approve the
373balance of available credits for donations made to eligible
374sponsors for projects that provide homeownership opportunities
375for low-income or very-low-income households.
376     4.  If, during the first 10 business days of the state
377fiscal year, tax credit applications are received for more than
37880 percent of available annual tax credits from eligible
379sponsors for projects that provide homeownership opportunities
380for low-income or very-low-income households, the office shall
381grant the tax credits to such applications as follows:
382     a.  If an eligible sponsor submits tax credit applications
383which in total do not exceed $200,000, the credits shall be
384granted in full if the tax credit applications are approved and
385subject to the provisions of subparagraph 2.
386     b.  If an eligible sponsor submits tax credit applications
387which in total equal or exceed $200,000, the amount of tax
388credits granted pursuant to sub-subparagraph a. shall be
389subtracted from the amount of available tax credits pursuant to
390subparagraph 2., and the remaining credits shall be granted to
391each approved tax credit application on a pro rata basis.
392     c.  If, after the first 2 months of the fiscal year,
393additional credits become available pursuant to subparagraph 3.,
394the office shall grant the tax credits by first increasing the
395credit of those who received a pro rata reduction and, if there
396are remaining credits, granting credits to those who applied on
397or after the 11th business day of the state fiscal year on a
398first-come, first-served basis.
399     5.  If, during the first 10 business days of the state
400fiscal year, tax credit applications are received for more than
40120 percent of available annual tax credits from eligible
402sponsors for projects other than those that provide
403homeownership opportunities for low-income or very-low-income
404households, the office shall grant the tax credits to each
405approved tax credit application on a pro rata basis. If, after
406the first 2 months of the fiscal year, additional credits become
407available pursuant to subparagraph 2., the office shall grant
408the tax credits by first increasing the credit of those who
409received a pro rata reduction and, if there are remaining
410credits, granting credits to those who applied on or after the
41111th business day of the state fiscal year on a first-come,
412first-served basis.
413     (5)  EXPIRATION.--The provisions of this section, except
414paragraph (1)(e), shall expire and be void on June 30, 2015
4152005.
416     Section 4.  Paragraph (c) of subsection (1) and subsection
417(6) of section 624.5105, Florida Statutes, are amended,
418paragraph (f) is added to subsection (1), and paragraph (e) is
419added to subsection (2) of said section, to read:
420     624.5105  Community contribution tax credit; authorization;
421limitations; eligibility and application requirements;
422administration; definitions; expiration.--
423     (1)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
424     (c)  The total amount of tax credit which may be granted
425for all programs approved under this section and ss.
426212.08(5)(q) and s. 220.183 is $15 $10 million annually.
427     (f)  An insurer that claims a credit against premium tax
428liability earned by making a community contribution under this
429section need not pay any additional retaliatory tax levied under
430s. 624.5091 as a result of claiming such a credit and s.
431624.5091 does not limit such a credit in any manner.
432     (2)  ELIGIBILITY REQUIREMENTS.--
433     (e)1.  The Office of Tourism, Trade, and Economic
434Development shall reserve 80 percent of the available annual tax
435credits for donations made to eligible sponsors for projects
436that provide homeownership opportunities for low-income or very-
437low-income households as defined in s. 420.9071(19) and (28) for
438the first 2 months of the fiscal year. If less than 80 percent
439of the annual tax credits for donations made to eligible
440sponsors for projects that provide homeownership opportunities
441for low-income or very-low-income households are approved within
442the first 2 months of the fiscal year, the office may approve
443the balance of available credits for donations made to eligible
444sponsors for projects other than those that provide
445homeownership opportunities for low-income or very-low-income
446households.
447     2.  The office shall reserve 20 percent of the available
448annual tax credits for donations made to eligible sponsors for
449projects other than those that provide homeownership
450opportunities for low-income or very-low-income households as
451defined in s. 420.9071(19) and (28) for the first 2 months of
452the fiscal year. If less than 20 percent of the annual tax
453credits for donations made to eligible sponsors for projects
454other than those that provide homeownership opportunities for
455low-income or very-low-income households are approved within the
456first 2 months of the fiscal year, the office may approve the
457balance of available credits for donations made to eligible
458sponsors for projects that provide homeownership opportunities
459for low-income or very-low-income households.
460     3.  If, during the first 10 business days of the state
461fiscal year, tax credit applications are received for more than
46280 percent of available annual tax credits from eligible
463sponsors for projects that provide homeownership opportunities
464for low-income or very-low-income households, the office shall
465grant the tax credits for such applications as follows:
466     a.  If an eligible sponsor submits tax credit applications
467which in total do not exceed $200,000, the credits shall be
468granted in full if the tax credit applications are approved and
469subject to the provisions of subparagraph 1.
470     b.  If an eligible sponsor submits tax credit applications
471which in total equal or exceed $200,000, the amount of tax
472credits granted pursuant to sub-subparagraph a. shall be
473subtracted from the amount of available tax credits pursuant to
474subparagraph 1., and the remaining credits shall be granted to
475each approved tax credit application on a pro rata basis.
476     c.  If, after the first 2 months of the fiscal year,
477additional credits become available pursuant to subparagraph 2.,
478the office shall grant the tax credits by first increasing the
479credit of those who received a pro rata reduction and, if there
480are remaining credits, granting credits to those who applied on
481or after the 11th business day of the state fiscal year on a
482first-come, first-served basis.
483     4.  If, during the first 10 business days of the state
484fiscal year, tax credit applications are received for more than
48520 percent of available annual tax credits from eligible
486sponsors for projects other than those that provide
487homeownership opportunities for low-income or very-low-income
488households, the office shall grant the tax credits to each
489approved tax credit application on a pro rata basis. If, after
490the first 2 months of the fiscal year, additional credits become
491available pursuant to subparagraph 1., the office shall grant
492the tax credits by first increasing the credit of those who
493received a pro rata reduction and, if there are remaining
494credits, granting credits to those who applied on or after the
49511th business day of the state fiscal year on a first-come,
496first-served basis.
497     (6)  EXPIRATION.--The provisions of this section, except
498paragraph (1)(e), shall expire and be void on June 30, 2015
4992005.
500     Section 5.  This act shall take effect June 29, 2005.


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