HB 15

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.  A No person may not shall receive more than $200,000 in
68annual tax credits for all approved community contributions made
69in any one 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 $12 $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)  For the first 6 months of the fiscal year, the
170Office of Tourism, Trade, and Economic Development shall reserve
17180 percent of the first $10 million in available annual tax
172credits, and 70 percent of any available annual tax credits in
173excess of $10 million, for donations made to eligible sponsors
174for projects that provide homeownership opportunities for low-
175income or very-low-income households as defined in s.
176420.9071(19) and (28). If any such reserved annual tax credits
177remain after the first 6 months of the fiscal year, the office
178may approve the balance of such available credits for donations
179made to eligible sponsors for projects other than those that
180provide homeownership opportunities for low-income or very-low-
181income households.
182     (II)  For the first 6 months of the fiscal year, the office
183shall reserve 20 percent of the first $10 million in available
184annual tax credits, and 30 percent of any available annual tax
185credits in excess of $10 million, for donations made to eligible
186sponsors for projects other than those that provide
187homeownership opportunities for low-income or very-low-income
188households as defined in s. 420.9071(19) and (28). If any such
189reserved annual tax credits remain after the first 6 months of
190the fiscal year, the office may approve the balance of such
191available credits for donations made to eligible sponsors for
192projects that provide homeownership opportunities for low-income
193or very-low-income households.
194     (III)  If, during the first 10 business days of the state
195fiscal year, eligible tax credit applications are received for
196less than the available annual tax credits reserved under sub-
197sub-subparagraph (I), the office shall grant tax credits for
198such applications and shall grant remaining tax credits on a
199first-come, first-served basis for any subsequent eligible
200applications received before the end of the first 6 months of
201the state fiscal year. If, during the first 10 business days of
202the state fiscal year, eligible tax credit applications are
203received for more than the available annual tax credits reserved
204under sub-sub-subparagraph (I), the office shall grant the tax
205credits for such applications as follows:
206     (A)  If tax credit applications submitted for approved
207projects of an eligible sponsor do not exceed $200,000 in total,
208the credits shall be granted in full if the tax credit
209applications are approved, subject to the provisions of sub-sub-
210subparagraph (I).
211     (B)  If tax credit applications submitted for approved
212projects of an eligible sponsor exceed $200,000 in total, the
213amount of tax credits granted pursuant to sub-sub-sub-
214subparagraph (A) shall be subtracted from the amount of
215available tax credits pursuant to sub-sub-subparagraph (I), and
216the remaining credits shall be granted to each approved tax
217credit application on a pro rata basis.
218     (C)  If, after the first 6 months of the fiscal year,
219additional credits become available pursuant to sub-sub-
220subparagraph (II), the office shall grant the tax credits by
221first granting to those who received a pro rata reduction up to
222the full amount of their request and, if there are remaining
223credits, granting credits to those who applied on or after the
22411th business day of the state fiscal year on a first-come,
225first-served basis.
226     (IV)  If, during the first 10 business days of the state
227fiscal year, eligible tax credit applications are received for
228less than the available annual tax credits reserved under sub-
229sub-subparagraph (II), the office shall grant tax credits for
230such applications and shall grant remaining tax credits on a
231first-come, first-served basis for any subsequent eligible
232applications received before the end of the first 6 months of
233the state fiscal year. If, during the first 10 business days of
234the state fiscal year, eligible tax credit applications are
235received for more than the available annual tax credits reserved
236under sub-sub-subparagraph (II), the office shall grant the tax
237credits for such applications on a pro rata basis. If, after the
238first 6 months of the fiscal year, additional credits become
239available pursuant to sub-sub-subparagraph (I), the office shall
240grant the tax credits by first granting to those who received a
241pro rata reduction up to the full amount of their request and,
242if there are remaining credits, granting credits to those who
243applied on or after the 11th business day of the state fiscal
244year on a first-come, first-served basis.
245     3.  Application requirements.--
246     a.  Any eligible sponsor seeking to participate in this
247program must submit a proposal to the Office of Tourism, Trade,
248and Economic Development which sets forth the name of the
249sponsor, a description of the project, and the area in which the
250project is located, together with such supporting information as
251is prescribed by rule. The proposal must also contain a
252resolution from the local governmental unit in which the project
253is located certifying that the project is consistent with local
254plans and regulations.
255     b.  Any person seeking to participate in this program must
256submit an application for tax credit to the Office of Tourism,
257Trade, and Economic Development which sets forth the name of the
258sponsor, a description of the project, and the type, value, and
259purpose of the contribution. The sponsor shall verify the terms
260of the application and indicate its receipt of the contribution,
261which verification must be in writing and accompany the
262application for tax credit. The person must submit a separate
263tax credit application to the office for each individual
264contribution that it makes to each individual project.
265     c.  Any person who has received notification from the
266Office of Tourism, Trade, and Economic Development that a tax
267credit has been approved must apply to the department to receive
268the refund. Application must be made on the form prescribed for
269claiming refunds of sales and use taxes and be accompanied by a
270copy of the notification. A person may submit only one
271application for refund to the department within any 12-month
272period.
273     4.  Administration.--
274     a.  The Office of Tourism, Trade, and Economic Development
275may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary
276to administer this paragraph, including rules for the approval
277or disapproval of proposals by a person.
278     b.  The decision of the Office of Tourism, Trade, and
279Economic Development must be in writing, and, if approved, the
280notification shall state the maximum credit allowable to the
281person. Upon approval, the office shall transmit a copy of the
282decision to the Department of Revenue.
283     c.  The Office of Tourism, Trade, and Economic Development
284shall periodically monitor all projects in a manner consistent
285with available resources to ensure that resources are used in
286accordance with this paragraph; however, each project must be
287reviewed at least once every 2 years.
288     d.  The Office of Tourism, Trade, and Economic Development
289shall, in consultation with the Department of Community Affairs,
290the Florida Housing Finance Corporation, and the statewide and
291regional housing and financial intermediaries, market the
292availability of the community contribution tax credit program to
293community-based organizations.
294     5.  Expiration.--This paragraph expires June 30, 2015 2005;
295however, any accrued credit carryover that is unused on that
296date may be used until the expiration of the 3-year carryover
297period for such credit.
298     Section 2.  Paragraph (t) of subsection (1) of section
299220.03, Florida Statutes, is amended to read:
300     220.03  Definitions.--
301     (1)  SPECIFIC TERMS.--When used in this code, and when not
302otherwise distinctly expressed or manifestly incompatible with
303the intent thereof, the following terms shall have the following
304meanings:
305     (t)  "Project" means any activity undertaken by an eligible
306sponsor, as defined in s. 220.183(2)(c), which is designed to
307construct, improve, or substantially rehabilitate housing that
308is affordable to low-income or very-low-income households as
309defined in s. 420.9071(19) and (28); designed to provide
310commercial, industrial, or public resources and facilities; or
311designed to improve entrepreneurial and job-development
312opportunities for low-income persons. A project may be the
313investment necessary to increase access to high-speed broadband
314capability in rural communities with enterprise zones, including
315projects that result in improvements to communications assets
316that are owned by a business. A project may include the
317provision of museum educational programs and materials that are
318directly related to any project approved between January 1,
3191996, and December 31, 1999, and located in an enterprise zone
320as referenced in s. 290.00675. This paragraph does not preclude
321projects that propose to construct or rehabilitate low-income or
322very-low-income housing on scattered sites. The Office of
323Tourism, Trade, and Economic Development may reserve up to 50
324percent of the available annual tax credits under s. 220.181 for
325housing for very-low-income households pursuant to s.
326420.9071(28) for the first 6 months of the fiscal year. With
327respect to housing, contributions may be used to pay the
328following eligible project-related activities:
329     1.  Project development, impact, and management fees for
330low-income or very-low-income housing projects;
331     2.  Down payment and closing costs for eligible persons, as
332defined in s. 420.9071(19) and (28);
333     3.  Administrative costs, including housing counseling and
334marketing fees, not to exceed 10 percent of the community
335contribution, directly related to low-income or very-low-income
336projects; and
337     4.  Removal of liens recorded against residential property
338by municipal, county, or special-district local governments when
339satisfaction of the lien is a necessary precedent to the
340transfer of the property to an eligible person, as defined in s.
341420.9071(19) and (28), for the purpose of promoting home
342ownership. Contributions for lien removal must be received from
343a nonrelated third party.
344
345The provisions of this paragraph shall expire and be void on
346June 30, 2015 2005.
347     Section 3.  Paragraph (c) of subsection (1), paragraph (b)
348of subsection (2), and subsection (5) of section 220.183,
349Florida Statutes, are amended to read:
350     220.183  Community contribution tax credit.--
351     (1)  AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
352CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
353SPENDING.--
354     (c)  The total amount of tax credit which may be granted
355for all programs approved under this section, s. 212.08(5)(q),
356and s. 624.5105 is $12 $10 million annually.
357     (2)  ELIGIBILITY REQUIREMENTS.--
358     (b)1.  All community contributions must be reserved
359exclusively for use in projects as defined in s. 220.03(1)(t).
360     2.  For the first 6 months of the fiscal year, the Office
361of Tourism, Trade, and Economic Development shall may reserve 80
362up to 50 percent of the first $10 million in available annual
363tax credits, and 70 percent of any available annual tax credits
364in excess of $10 million, for housing for donations made to
365eligible sponsors for projects that provide homeownership
366opportunities for low-income or very-low-income households as
367defined in pursuant to s. 420.9071(19) and (28) for the first 6
368months of the fiscal year. If any such reserved annual tax
369credits remain after the first 6 months of the fiscal year, the
370office may approve the balance of such available credits for
371donations made to eligible sponsors for projects other than
372those that provide homeownership opportunities for low-income or
373very-low-income households.
374     3.  For the first 6 months of the fiscal year, the office
375shall reserve 20 percent of the first $10 million in available
376annual tax credits, and 30 percent of any available annual tax
377credits in excess of $10 million, for donations made to eligible
378sponsors for projects other than those that provide
379homeownership opportunities for low-income or very-low-income
380households as defined in s. 420.9071(19) and (28). If any such
381reserved annual tax credits remain after the first 6 months of
382the fiscal year, the office may approve the balance of such
383available credits for donations made to eligible sponsors for
384projects that provide homeownership opportunities for low-income
385or very-low-income households.
386     4.  If, during the first 10 business days of the state
387fiscal year, eligible tax credit applications are received for
388less than the available annual tax credits reserved under
389subparagraph 2., the office shall grant tax credits for such
390applications and shall grant remaining tax credits on a first-
391come, first-served basis for any subsequent eligible
392applications received before the end of the first 6 months of
393the state fiscal year. If, during the first 10 business days of
394the state fiscal year, eligible tax credit applications are
395received for more than the available annual tax credits reserved
396under subparagraph 2., the office shall grant the tax credits
397for such applications as follows:
398     a.  If tax credit applications submitted for approved
399projects of an eligible sponsor do not exceed $200,000 in total,
400the credits shall be granted in full if the tax credit
401applications are approved, subject to the provisions of
402subparagraph 2.
403     b.  If tax credit applications submitted for approved
404projects of an eligible sponsor exceed $200,000 in total, the
405amount of tax credits granted pursuant to sub-subparagraph a.
406shall be subtracted from the amount of available tax credits
407pursuant to subparagraph 2., and the remaining credits shall be
408granted to each approved tax credit application on a pro rata
409basis.
410     c.  If, after the first 6 months of the fiscal year,
411additional credits become available pursuant to subparagraph 3.,
412the office shall grant the tax credits by first granting to
413those who received a pro rata reduction up to the full amount of
414their request and, if there are remaining credits, granting
415credits to those who applied on or after the 11th business day
416of the state fiscal year on a first-come, first-served basis.
417     5.  If, during the first 10 business days of the state
418fiscal year, eligible tax credit applications are received for
419less than the available annual tax credits reserved under
420subparagraph 3., the office shall grant tax credits for such
421applications and shall grant remaining tax credits on a first-
422come, first-served basis for any subsequent eligible
423applications received before the end of the first 6 months of
424the state fiscal year. If, during the first 10 business days of
425the state fiscal year, eligible tax credit applications are
426received for more than the available annual tax credits reserved
427under subparagraph 3., the office shall grant the tax credits
428for such applications on a pro rata basis. If, after the first 6
429months of the fiscal year, additional credits become available
430pursuant to subparagraph 2., the office shall grant the tax
431credits by first granting to those who received a pro rata
432reduction up to the full amount of their request and, if there
433are remaining credits, granting credits to those who applied on
434or after the 11th business day of the state fiscal year on a
435first-come, first-served basis.
436     (5)  EXPIRATION.--The provisions of this section, except
437paragraph (1)(e), shall expire and be void on June 30, 2015
4382005.
439     Section 4.  Paragraph (c) of subsection (1) and subsection
440(6) of section 624.5105, Florida Statutes, are amended,
441paragraph (f) is added to subsection (1), and paragraph (e) is
442added to subsection (2) of said section, to read:
443     624.5105  Community contribution tax credit; authorization;
444limitations; eligibility and application requirements;
445administration; definitions; expiration.--
446     (1)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
447     (c)  The total amount of tax credit which may be granted
448for all programs approved under this section and ss.
449212.08(5)(q) and s. 220.183 is $12 $10 million annually.
450     (f)  An insurer that claims a credit against premium tax
451liability earned by making a community contribution under this
452section need not pay any additional retaliatory tax levied under
453s. 624.5091 as a result of claiming such a credit. Section
454624.5091 does not limit such a credit in any manner.
455     (2)  ELIGIBILITY REQUIREMENTS.--
456     (e)1.  For the first 6 months of the fiscal year, the
457Office of Tourism, Trade, and Economic Development shall reserve
45880 percent of the first $10 million in available annual tax
459credits, and 70 percent of any available annual tax credits in
460excess of $10 million, for donations made to eligible sponsors
461for projects that provide homeownership opportunities for low-
462income or very-low-income households as defined in s.
463420.9071(19) and (28). If any such reserved annual tax credits
464remain after the first 6 months of the fiscal year, the office
465may approve the balance of such available credits for donations
466made to eligible sponsors for projects other than those that
467provide homeownership opportunities for low-income or very-low-
468income households.
469     2.  For the first 6 months of the fiscal year, the office
470shall reserve 20 percent of the first $10 million in available
471annual tax credits, and 30 percent of any available annual tax
472credits in excess of $10 million, for donations made to eligible
473sponsors for projects other than those that provide
474homeownership opportunities for low-income or very-low-income
475households as defined in s. 420.9071(19) and (28). If any such
476reserved annual tax credits remain after the first 6 months of
477the fiscal year, the office may approve the balance of such
478available credits for donations made to eligible sponsors for
479projects that provide homeownership opportunities for low-income
480or very-low-income households.
481     3.  If, during the first 10 business days of the state
482fiscal year, eligible tax credit applications are received for
483less than the available annual tax credits reserved under
484subparagraph 1., the office shall grant tax credits for such
485applications and shall grant remaining tax credits on a first-
486come, first-served basis for any subsequent eligible
487applications received before the end of the first 6 months of
488the state fiscal year. If, during the first 10 business days of
489the state fiscal year, eligible tax credit applications are
490received for more than the available annual tax credits reserved
491under subparagraph 1., the office shall grant the tax credits
492for such applications as follows:
493     a.  If tax credit applications submitted for approved
494projects of an eligible sponsor do not exceed $200,000 in total,
495the credits shall be granted in full if the tax credit
496applications are approved, subject to the provisions of
497subparagraph 1.
498     b.  If tax credit applications submitted for approved
499projects of an eligible sponsor exceed $200,000 in total, the
500amount of tax credits granted pursuant to sub-subparagraph a.
501shall be subtracted from the amount of available tax credits
502pursuant to subparagraph 1., and the remaining credits shall be
503granted to each approved tax credit application on a pro rata
504basis.
505     c.  If, after the first 6 months of the fiscal year,
506additional credits become available pursuant to subparagraph 2.,
507the office shall grant the tax credits by first granting to
508those who received a pro rata reduction up to the full amount of
509their request and, if there are remaining credits, granting
510credits to those who applied on or after the 11th business day
511of the state fiscal year on a first-come, first-served basis.
512     4.  If, during the first 10 business days of the state
513fiscal year, eligible tax credit applications are received for
514less than the available annual tax credits reserved under
515subparagraph 2., the office shall grant tax credits for such
516applications and shall grant remaining tax credits on a first-
517come, first-served basis for any subsequent eligible
518applications received before the end of the first 6 months of
519the state fiscal year. If, during the first 10 business days of
520the state fiscal year, eligible tax credit applications are
521received for more than the available annual tax credits reserved
522under subparagraph 2., the office shall grant the tax credits
523for such applications on a pro rata basis. If, after the first 6
524months of the fiscal year, additional credits become available
525pursuant to subparagraph 1., the office shall grant the tax
526credits by first granting to those who received a pro rata
527reduction up to the full amount of their request and, if there
528are remaining credits, granting credits to those who applied on
529or after the 11th business day of the state fiscal year on a
530first-come, first-served basis.
531     (6)  EXPIRATION.--The provisions of this section, except
532paragraph (1)(e), shall expire and be void on June 30, 2015
5332005.
534     Section 5.  This act shall take effect July 1, 2005.


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