HB 0503

1
A bill to be entitled
2An act relating to the community contribution tax credit;
3amending s. 212.08, F.S.; increasing the total amount of
4tax credits available as grants for certain programs;
5deleting a provision authorizing the Office of Tourism,
6Trade, and Economic Development to reserve certain
7portions of certain annual tax credits for eligible
8sponsors of certain low-income housing projects; requiring
9the office to reserve certain portions of available annual
10tax credits for eligible sponsors of certain low-income
11housing projects; providing requirements, criteria, and
12limitations; extending an expiration date; amending s.
13220.03, F.S.; revising a definition to delete a provision
14authorizing the office to reserve certain portions of
15available annual tax credits for eligible sponsors of
16certain low-income housing projects; extending an
17expiration date; amending ss. 220.183 and 624.5105, F.S.;
18increasing the amount of available annual community
19contribution tax credits; revising eligibility criteria;
20requiring the office to reserve certain portions of
21available annual tax credits for eligible sponsors of
22certain low-income housing projects; providing
23requirements, criteria, and limitations; extending an
24expiration date; providing an effective date.
25
26Be It Enacted by the Legislature of the State of Florida:
27
28     Section 1.  Paragraph (q) of subsection (5) of section
29212.08, Florida Statutes, is amended to read:
30     212.08  Sales, rental, use, consumption, distribution, and
31storage tax; specified exemptions.--The sale at retail, the
32rental, the use, the consumption, the distribution, and the
33storage to be used or consumed in this state of the following
34are hereby specifically exempt from the tax imposed by this
35chapter.
36     (5)  EXEMPTIONS; ACCOUNT OF USE.--
37     (q)  Community contribution tax credit for donations.--
38     1.  Authorization.--Beginning July 1, 2001, persons who are
39registered with the department under s. 212.18 to collect or
40remit sales or use tax and who make donations to eligible
41sponsors are eligible for tax credits against their state sales
42and use tax liabilities as provided in this paragraph:
43     a.  The credit shall be computed as 50 percent of the
44person's approved annual community contribution;
45     b.  The credit shall be granted as a refund against state
46sales and use taxes reported on returns and remitted in the 12
47months preceding the date of application to the department for
48the credit as required in sub-subparagraph 3.c. If the annual
49credit is not fully used through such refund because of
50insufficient tax payments during the applicable 12-month period,
51the unused amount may be included in an application for a refund
52made pursuant to sub-subparagraph 3.c. in subsequent years
53against the total tax payments made for such year. Carryover
54credits may be applied for a 3-year period without regard to any
55time limitation that would otherwise apply under s. 215.26;
56     c.  A No person may not shall receive more than $200,000 in
57annual tax credits for all approved community contributions made
58in any one year;
59     d.  All proposals for the granting of the tax credit shall
60require the prior approval of the Office of Tourism, Trade, and
61Economic Development;
62     e.  The total amount of tax credits which may be granted
63for all programs approved under this paragraph, s. 220.183, and
64s. 624.5105 is $20 $10 million annually; and
65     f.  A person who is eligible to receive the credit provided
66for in this paragraph, s. 220.183, or s. 624.5105 may receive
67the credit only under the one section of the person's choice.
68     2.  Eligibility requirements.--
69     a.  A community contribution by a person must be in the
70following form:
71     (I)  Cash or other liquid assets;
72     (II)  Real property;
73     (III)  Goods or inventory; or
74     (IV)  Other physical resources as identified by the Office
75of Tourism, Trade, and Economic Development.
76     b.  All community contributions must be reserved
77exclusively for use in a project. As used in this sub-
78subparagraph, the term "project" means any activity undertaken
79by an eligible sponsor which is designed to construct, improve,
80or substantially rehabilitate housing that is affordable to low-
81income or very-low-income households as defined in s.
82420.9071(19) and (28); designed to provide commercial,
83industrial, or public resources and facilities; or designed to
84improve entrepreneurial and job-development opportunities for
85low-income persons. A project may be the investment necessary to
86increase access to high-speed broadband capability in rural
87communities with enterprise zones, including projects that
88result in improvements to communications assets that are owned
89by a business. A project may include the provision of museum
90educational programs and materials that are directly related to
91any project approved between January 1, 1996, and December 31,
921999, and located in an enterprise zone as referenced in s.
93290.00675. This paragraph does not preclude projects that
94propose to construct or rehabilitate housing for low-income or
95very-low-income households on scattered sites. The Office of
96Tourism, Trade, and Economic Development may reserve up to 50
97percent of the available annual tax credits for housing for
98very-low-income households pursuant to s. 420.9071(28) for the
99first 6 months of the fiscal year. With respect to housing,
100contributions may be used to pay the following eligible low-
101income and very-low-income housing-related activities:
102     (I)  Project development impact and management fees for
103low-income or very-low-income housing projects;
104     (II)  Down payment and closing costs for eligible persons,
105as defined in s. 420.9071(19) and (28);
106     (III)  Administrative costs, including housing counseling
107and marketing fees, not to exceed 10 percent of the community
108contribution, directly related to low-income or very-low-income
109projects; and
110     (IV)  Removal of liens recorded against residential
111property by municipal, county, or special district local
112governments when satisfaction of the lien is a necessary
113precedent to the transfer of the property to an eligible person,
114as defined in s. 420.9071(19) and (28), for the purpose of
115promoting home ownership. Contributions for lien removal must be
116received from a nonrelated third party.
117     c.  The project must be undertaken by an "eligible
118sponsor," which includes:
119     (I)  A community action program;
120     (II)  A nonprofit community-based development organization
121whose mission is the provision of housing for low-income or
122very-low-income households or increasing entrepreneurial and
123job-development opportunities for low-income persons;
124     (III)  A neighborhood housing services corporation;
125     (IV)  A local housing authority created under chapter 421;
126     (V)  A community redevelopment agency created under s.
127163.356;
128     (VI)  The Florida Industrial Development Corporation;
129     (VII)  A historic preservation district agency or
130organization;
131     (VIII)  A regional workforce board;
132     (IX)  A direct-support organization as provided in s.
1331009.983;
134     (X)  An enterprise zone development agency created under s.
135290.0056;
136     (XI)  A community-based organization incorporated under
137chapter 617 which is recognized as educational, charitable, or
138scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
139and whose bylaws and articles of incorporation include
140affordable housing, economic development, or community
141development as the primary mission of the corporation;
142     (XII)  Units of local government;
143     (XIII)  Units of state government; or
144     (XIV)  Any other agency that the Office of Tourism, Trade,
145and Economic Development designates by rule.
146
147In no event may a contributing person have a financial interest
148in the eligible sponsor.
149     d.  The project must be located in an area designated an
150enterprise zone or a Front Porch Florida Community pursuant to
151s. 20.18(6), unless the project increases access to high-speed
152broadband capability for rural communities with enterprise zones
153but is physically located outside the designated rural zone
154boundaries. Any project designed to construct or rehabilitate
155housing for low-income or very-low-income households as defined
156in s. 420.0971(19) and (28) is exempt from the area requirement
157of this sub-subparagraph.
158     e.(I)  The Office of Tourism, Trade, and Economic
159Development shall reserve 60 percent of the available annual tax
160credits for donations made to eligible sponsors for projects
161that provide homeownership opportunities for low-income or very-
162low-income households under s. 420.9071(19) and (28) for the
163first 2 months of the fiscal year. If less than 60 percent of
164the annual tax credits for donations made to eligible sponsors
165for projects that provide homeownership opportunities for low-
166income or very-low-income households are approved within the
167first 2 months of the fiscal year, the office may approve the
168balance of available credits for donations made to eligible
169sponsors for projects other than those that provide
170homeownership opportunities for low-income or very-low-income
171households.
172     (II)  The office shall reserve 40 percent of the available
173annual tax credits for donations made to eligible sponsors for
174projects other than those that provide homeownership
175opportunities for low-income or very-low-income households under
176s. 420.9071(19) and (28) for the first 2 months of the fiscal
177year. If less than 40 percent of the annual tax credits for
178donations made to eligible sponsors for projects other than
179those that provide homeownership opportunities for low-income or
180very-low-income households are approved within the first 2
181months of the fiscal year, the office may approve the balance of
182available credits for donations made to eligible sponsors for
183projects that provide homeownership opportunities for low-income
184or very-low-income households.
185     (III)  If, during the first 10 business days of the state
186fiscal year, tax credit applications are received for more than
18760 percent of available annual tax credits from eligible
188sponsors for projects that provide homeownership opportunities
189for low-income or very-low-income households, the office shall
190grant the tax credits for such applications as follows:
191     (A)  If an eligible sponsor submits tax credit applications
192that, in total, do not exceed $200,000, the credits shall be
193granted in full if the tax credit applications are approved and
194subject to sub-sub-subparagraph (I).
195     (B)  If an eligible sponsor submits tax credit applications
196that, in total, equal or exceed $200,000, the amount of tax
197credit granted under sub-sub-sub-subparagraph (A) shall be
198subtracted from the amount of available tax credits under sub-
199sub-subparagraph (I), and the remaining credits shall be granted
200to each approved tax credit application on a pro rata basis.
201     (C)  If, after the first 2 months of the fiscal year,
202additional credits become available under sub-sub-subparagraph
203(II), the office shall grant the tax credits by first increasing
204the credit of those who received a pro rata reduction and, if
205there are remaining credits, granting credits to those who
206applied on or after the 11th business day of the state fiscal
207year on a first-come, first-served basis.
208     (IV)  If, during the first 10 business days of the state
209fiscal year, tax credit applications are received for more than
21040 percent of available annual tax credits from eligible
211sponsors for projects other than those that provide
212homeownership opportunities for low-income or very-low-income
213households, the office shall grant the tax credits to each
214approved tax credit application on a pro rata basis. If, after
215the first 2 months of the fiscal year, additional credits become
216available under sub-sub-subparagraph (I), the office shall grant
217the tax credits by first increasing the credit of those who
218received a pro rata reduction and, if there are remaining
219credits, granting credits to those who applied on or after the
22011th business day of the state fiscal year on a first-come,
221first-served basis.
222     3.  Application requirements.--
223     a.  Any eligible sponsor seeking to participate in this
224program must submit a proposal to the Office of Tourism, Trade,
225and Economic Development which sets forth the name of the
226sponsor, a description of the project, and the area in which the
227project is located, together with such supporting information as
228is prescribed by rule. The proposal must also contain a
229resolution from the local governmental unit in which the project
230is located certifying that the project is consistent with local
231plans and regulations.
232     b.  Any person seeking to participate in this program must
233submit an application for tax credit to the Office of Tourism,
234Trade, and Economic Development which sets forth the name of the
235sponsor, a description of the project, and the type, value, and
236purpose of the contribution. The sponsor shall verify the terms
237of the application and indicate its receipt of the contribution,
238which verification must be in writing and accompany the
239application for tax credit. The person must submit a separate
240tax credit application to the office for each individual
241contribution that it makes to each individual project.
242     c.  Any person who has received notification from the
243Office of Tourism, Trade, and Economic Development that a tax
244credit has been approved must apply to the department to receive
245the refund. Application must be made on the form prescribed for
246claiming refunds of sales and use taxes and be accompanied by a
247copy of the notification. A person may submit only one
248application for refund to the department within any 12-month
249period.
250     4.  Administration.--
251     a.  The Office of Tourism, Trade, and Economic Development
252may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary
253to administer this paragraph, including rules for the approval
254or disapproval of proposals by a person.
255     b.  The decision of the Office of Tourism, Trade, and
256Economic Development must be in writing, and, if approved, the
257notification shall state the maximum credit allowable to the
258person. Upon approval, the office shall transmit a copy of the
259decision to the Department of Revenue.
260     c.  The Office of Tourism, Trade, and Economic Development
261shall periodically monitor all projects in a manner consistent
262with available resources to ensure that resources are used in
263accordance with this paragraph; however, each project must be
264reviewed at least once every 2 years.
265     d.  The Office of Tourism, Trade, and Economic Development
266shall, in consultation with the Department of Community Affairs,
267the Florida Housing Finance Corporation, and the statewide and
268regional housing and financial intermediaries, market the
269availability of the community contribution tax credit program to
270community-based organizations.
271     5.  Expiration.--This paragraph expires June 30, 2015 2005;
272however, any accrued credit carryover that is unused on that
273date may be used until the expiration of the 3-year carryover
274period for such credit.
275     Section 2.  Paragraph (t) of subsection (1) of section
276220.03, Florida Statutes, is amended to read:
277     220.03  Definitions.--
278     (1)  SPECIFIC TERMS.--When used in this code, and when not
279otherwise distinctly expressed or manifestly incompatible with
280the intent thereof, the following terms shall have the following
281meanings:
282     (t)  "Project" means any activity undertaken by an eligible
283sponsor, as defined in s. 220.183(2)(c), which is designed to
284construct, improve, or substantially rehabilitate housing that
285is affordable to low-income or very-low-income households as
286defined in s. 420.9071(19) and (28); designed to provide
287commercial, industrial, or public resources and facilities; or
288designed to improve entrepreneurial and job-development
289opportunities for low-income persons. A project may be the
290investment necessary to increase access to high-speed broadband
291capability in rural communities with enterprise zones, including
292projects that result in improvements to communications assets
293that are owned by a business. A project may include the
294provision of museum educational programs and materials that are
295directly related to any project approved between January 1,
2961996, and December 31, 1999, and located in an enterprise zone
297as referenced in s. 290.00675. This paragraph does not preclude
298projects that propose to construct or rehabilitate low-income or
299very-low-income housing on scattered sites. The Office of
300Tourism, Trade, and Economic Development may reserve up to 50
301percent of the available annual tax credits under s. 220.181 for
302housing for very-low-income households pursuant to s.
303420.9071(28) for the first 6 months of the fiscal year. With
304respect to housing, contributions may be used to pay the
305following eligible project-related activities:
306     1.  Project development, impact, and management fees for
307low-income or very-low-income housing projects;
308     2.  Down payment and closing costs for eligible persons, as
309defined in s. 420.9071(19) and (28);
310     3.  Administrative costs, including housing counseling and
311marketing fees, not to exceed 10 percent of the community
312contribution, directly related to low-income or very-low-income
313projects; and
314     4.  Removal of liens recorded against residential property
315by municipal, county, or special-district local governments when
316satisfaction of the lien is a necessary precedent to the
317transfer of the property to an eligible person, as defined in s.
318420.9071(19) and (28), for the purpose of promoting home
319ownership. Contributions for lien removal must be received from
320a nonrelated third party.
321
322The provisions of this paragraph shall expire and be void on
323June 30, 2015 2005.
324     Section 3.  Paragraph (c) of subsection (1), paragraph (b)
325of subsection (2), and subsection (5) of section 220.183,
326Florida Statutes, are amended to read:
327     220.183  Community contribution tax credit.--
328     (1)  AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
329CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
330SPENDING.--
331     (c)  The total amount of tax credit which may be granted
332for all programs approved under this section, s. 212.08(5)(q),
333and s. 624.5105 is $20 $10 million annually.
334     (2)  ELIGIBILITY REQUIREMENTS.--
335     (b)1.  All community contributions must be reserved
336exclusively for use in projects as defined in s. 220.03(1)(t).
337     2.  The Office of Tourism, Trade, and Economic Development
338shall may reserve 60 up to 50 percent of the available annual
339tax credits for housing for donations made to eligible sponsors
340for projects that provide homeownership opportunities for low-
341income or very-low-income households under pursuant to s.
342420.9071(19) and (28) for the first 2 6 months of the fiscal
343year. If less than 60 percent of the annual tax credits for
344donations made to eligible sponsors for projects for low-income
345or very-low-income households are approved within the first 2
346months of the fiscal year, the office may approve the balance of
347available credits for donations made to eligible sponsors for
348projects other than those that provide homeownership
349opportunities for low-income or very-low-income households.
350     3.  The office shall reserve 40 percent of the available
351annual tax credits for donations made to eligible sponsors for
352projects other than those that provide homeownership
353opportunities for low-income or very-low-income households under
354s. 420.9071(19) and (28) for the first 2 months of the fiscal
355year. If less than 40 percent of the annual tax credits for
356donations made to eligible sponsors for projects other than
357those that provide homeownership opportunities for low-income or
358very-low-income households are approved within the first 2
359months of the fiscal year, the office may approve the balance of
360available credits for donations made to eligible sponsors for
361projects that provide homeownership opportunities for low-income
362or very-low-income households.
363     4.  If, during the first 10 business days of the state
364fiscal year, tax credit applications are received for more than
36560 percent of available annual tax credits from eligible
366sponsors for projects that provide homeownership opportunities
367for low-income or very-low-income households, the office shall
368grant the tax credits for such applications as follows:
369     a.  If an eligible sponsor submits tax credit applications
370that, in total, do not exceed $200,000, the credits shall be
371granted in full if the tax credit applications are approved and
372subject to subparagraph 2.
373     b.  If an eligible sponsor submits tax credit applications
374that, in total, equal or exceed $200,000, the amount of tax
375credits granted under sub-subparagraph a. shall be subtracted
376from the amount of available tax credits under subparagraph 2.,
377and the remaining credits shall be granted to each approved tax
378credit application on a pro rata basis.
379     c.  If, after the first 2 months of the fiscal year,
380additional credits become available under subparagraph 3., the
381office shall grant the tax credits by first increasing the
382credit of those who received a pro rata reduction and, if there
383are remaining credits, granting credits to those who applied on
384or after the 11th business day of the state fiscal year on a
385first-come, first-served basis.
386     5.  If, during the first 10 business days of the state
387fiscal year, tax credit applications are received for more than
38840 percent of available annual tax credits from eligible
389sponsors for projects other than those that provide
390homeownership opportunities for low-income or very-low-income
391households, the office shall grant the tax credits to each
392approved tax credit application on a pro rata basis. If, after
393the first 2 months of the fiscal year, additional credits become
394available under subparagraph 2., the office shall grant the tax
395credits by first increasing the credit of those who received a
396pro rata reduction and, if there are remaining credits, granting
397credits to those who applied on or after the 11th business day
398of the state fiscal year on a first-come, first-served basis.
399     (5)  EXPIRATION.--The provisions of this section, except
400paragraph (1)(e), shall expire and be void on June 30, 2015
4012005.
402     Section 4.  Paragraph (c) of subsection (1) and subsection
403(6) of section 624.5105, Florida Statutes, are amended, and
404paragraph (e) is added to subsection (2) of said section, to
405read:
406     624.5105  Community contribution tax credit; authorization;
407limitations; eligibility and application requirements;
408administration; definitions; expiration.--
409     (1)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
410     (c)  The total amount of tax credit which may be granted
411for all programs approved under this section, s. 212.08(5)(q),
412and s. 220.183 is $20 $10 million annually.
413     (2)  ELIGIBILITY REQUIREMENTS.--
414     (e)1.  The Office of Tourism, Trade, and Economic
415Development shall reserve 60 percent of the available annual tax
416credits for donations made to eligible sponsors for projects
417that provide homeownership opportunities for low-income or very-
418low-income households under s. 420.9071(19) and (28) for the
419first 2 months of the fiscal year. If less than 60 percent of
420the annual tax credits for donations made to eligible sponsors
421for projects that provide homeownership opportunities for low-
422income or very-low-income households are approved within the
423first 2 months of the fiscal year, the office may approve the
424balance of available credits for donations made to eligible
425sponsors for projects other than those that provide
426homeownership opportunities for low-income or very-low-income
427households.
428     2.  The office shall reserve 40 percent of the available
429annual tax credits for donations made to eligible sponsors for
430projects other than those that provide homeownership
431opportunities for low-income or very-low-income households under
432s. 420.9071(19) and (28) for the first 2 months of the fiscal
433year. If less than 40 percent of the annual tax credits for
434donations made to eligible sponsors for projects other than
435those that provide homeownership opportunities for low-income or
436very-low-income households are approved within the first 2
437months of the fiscal year, the office may approve the balance of
438available credits for donations made to eligible sponsors for
439projects that provide homeownership opportunities for low-income
440or very-low-income households.
441     3.  If, during the first 10 business days of the state
442fiscal year, tax credit applications are received for more than
44360 percent of available annual tax credits from eligible
444sponsors for projects that provide homeownership opportunities
445for low-income or very-low-income households, the office shall
446grant the tax credits for such applications as follows:
447     a.  If an eligible sponsor submits tax credit applications
448that, in total, do not exceed $200,000, the credits shall be
449granted in full if the tax credit applications are approved and
450subject to subparagraph 1.
451     b.  If an eligible sponsor submits tax credit applications
452that, in total, equal or exceed $200,000, the amount of tax
453credits granted under sub-subparagraph a. shall be subtracted
454from the amount of available tax credits under subparagraph 1.,
455and the remaining credits shall be granted to each approved tax
456credit application on a pro rata basis.
457     c.  If, after the first 2 months of the fiscal year,
458additional credits become available under subparagraph 2., the
459office shall grant the tax credits by first increasing the
460credit of those who received a pro rata reduction and, if there
461are remaining credits, granting credits to those who applied on
462or after the 11th business day of the state fiscal year on a
463first-come, first-served basis.
464     4.  If, during the first 10 business days of the state
465fiscal year, tax credit applications are received for more than
46640 percent of available annual tax credits from eligible
467sponsors for projects other than those that provide
468homeownership opportunities for low-income or very-low-income
469households, the office shall grant the tax credits to each
470approved tax credit application on a pro rata basis. If, after
471the first 2 months of the fiscal year, additional credits become
472available under subparagraph 1., the office shall grant the tax
473credits by first increasing the credit of those who received a
474pro rata reduction and, if there are remaining credits, granting
475credits to those who applied on or after the 11th business day
476of the state fiscal year on a first-come, first-served basis.
477     (6)  EXPIRATION.--The provisions of this section, except
478paragraph (1)(e), shall expire and be void on June 30, 2015
4792005.
480     Section 5.  This act shall take effect upon becoming a law.


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