HB 0503CS

CHAMBER ACTION




1The Economic Development, Trade & Banking Committee recommends
2the following:
3
4     Council/Committee Substitute
5     Remove the entire bill and insert:
6
A bill to be entitled
7An act relating to the community contribution tax credit;
8amending s. 212.08, F.S.; increasing the total amount of
9tax credits available as grants for certain programs;
10deleting a provision authorizing the Office of Tourism,
11Trade, and Economic Development to reserve certain
12portions of certain annual tax credits for eligible
13sponsors of certain low-income housing projects; requiring
14the office to reserve certain portions of available annual
15tax credits for eligible sponsors of certain low-income
16housing projects; providing requirements, criteria, and
17limitations; extending an expiration date; amending s.
18220.03, F.S.; revising a definition to delete a provision
19authorizing the office to reserve certain portions of
20available annual tax credits for eligible sponsors of
21certain low-income housing projects; extending an
22expiration date; amending ss. 220.183 and 624.5105, F.S.;
23increasing the amount of available annual community
24contribution tax credits; revising eligibility criteria;
25requiring the office to reserve certain portions of
26available annual tax credits for eligible sponsors of
27certain low-income housing projects; providing
28requirements, criteria, and limitations; extending an
29expiration date; providing an effective date.
30
31Be It Enacted by the Legislature of the State of Florida:
32
33     Section 1.  Paragraph (q) of subsection (5) of section
34212.08, Florida Statutes, is amended to read:
35     212.08  Sales, rental, use, consumption, distribution, and
36storage tax; specified exemptions.--The sale at retail, the
37rental, the use, the consumption, the distribution, and the
38storage to be used or consumed in this state of the following
39are hereby specifically exempt from the tax imposed by this
40chapter.
41     (5)  EXEMPTIONS; ACCOUNT OF USE.--
42     (q)  Community contribution tax credit for donations.--
43     1.  Authorization.--Beginning July 1, 2001, persons who are
44registered with the department under s. 212.18 to collect or
45remit sales or use tax and who make donations to eligible
46sponsors are eligible for tax credits against their state sales
47and use tax liabilities as provided in this paragraph:
48     a.  The credit shall be computed as 50 percent of the
49person's approved annual community contribution;
50     b.  The credit shall be granted as a refund against state
51sales and use taxes reported on returns and remitted in the 12
52months preceding the date of application to the department for
53the credit as required in sub-subparagraph 3.c. If the annual
54credit is not fully used through such refund because of
55insufficient tax payments during the applicable 12-month period,
56the unused amount may be included in an application for a refund
57made pursuant to sub-subparagraph 3.c. in subsequent years
58against the total tax payments made for such year. Carryover
59credits may be applied for a 3-year period without regard to any
60time limitation that would otherwise apply under s. 215.26;
61     c.  A No person may not shall receive more than $200,000 in
62annual tax credits for all approved community contributions made
63in any one year;
64     d.  All proposals for the granting of the tax credit shall
65require the prior approval of the Office of Tourism, Trade, and
66Economic Development;
67     e.  The total amount of tax credits which may be granted
68for all programs approved under this paragraph, s. 220.183, and
69s. 624.5105 is $20 $10 million annually; and
70     f.  A person who is eligible to receive the credit provided
71for in this paragraph, s. 220.183, or s. 624.5105 may receive
72the credit only under the one section of the person's choice.
73     2.  Eligibility requirements.--
74     a.  A community contribution by a person must be in the
75following form:
76     (I)  Cash or other liquid assets;
77     (II)  Real property;
78     (III)  Goods or inventory; or
79     (IV)  Other physical resources as identified by the Office
80of Tourism, Trade, and Economic Development.
81     b.  All community contributions must be reserved
82exclusively for use in a project. As used in this sub-
83subparagraph, the term "project" means any activity undertaken
84by an eligible sponsor which is designed to construct, improve,
85or substantially rehabilitate housing that is affordable to low-
86income or very-low-income households as defined in s.
87420.9071(19) and (28); designed to provide commercial,
88industrial, or public resources and facilities; or designed to
89improve entrepreneurial and job-development opportunities for
90low-income persons. A project may be the investment necessary to
91increase access to high-speed broadband capability in rural
92communities with enterprise zones, including projects that
93result in improvements to communications assets that are owned
94by a business. A project may include the provision of museum
95educational programs and materials that are directly related to
96any project approved between January 1, 1996, and December 31,
971999, and located in an enterprise zone as referenced in s.
98290.00675. This paragraph does not preclude projects that
99propose to construct or rehabilitate housing for low-income or
100very-low-income households on scattered sites. The Office of
101Tourism, Trade, and Economic Development may reserve up to 50
102percent of the available annual tax credits for housing for
103very-low-income households pursuant to s. 420.9071(28) for the
104first 6 months of the fiscal year. With respect to housing,
105contributions may be used to pay the following eligible low-
106income and very-low-income housing-related activities:
107     (I)  Project development impact and management fees for
108low-income or very-low-income housing projects;
109     (II)  Down payment and closing costs for eligible persons,
110as defined in s. 420.9071(19) and (28);
111     (III)  Administrative costs, including housing counseling
112and marketing fees, not to exceed 10 percent of the community
113contribution, directly related to low-income or very-low-income
114projects; and
115     (IV)  Removal of liens recorded against residential
116property by municipal, county, or special district local
117governments when satisfaction of the lien is a necessary
118precedent to the transfer of the property to an eligible person,
119as defined in s. 420.9071(19) and (28), for the purpose of
120promoting home ownership. Contributions for lien removal must be
121received from a nonrelated third party.
122     c.  The project must be undertaken by an "eligible
123sponsor," which includes:
124     (I)  A community action program;
125     (II)  A nonprofit community-based development organization
126whose mission is the provision of housing for low-income or
127very-low-income households or increasing entrepreneurial and
128job-development opportunities for low-income persons;
129     (III)  A neighborhood housing services corporation;
130     (IV)  A local housing authority created under chapter 421;
131     (V)  A community redevelopment agency created under s.
132163.356;
133     (VI)  The Florida Industrial Development Corporation;
134     (VII)  A historic preservation district agency or
135organization;
136     (VIII)  A regional workforce board;
137     (IX)  A direct-support organization as provided in s.
1381009.983;
139     (X)  An enterprise zone development agency created under s.
140290.0056;
141     (XI)  A community-based organization incorporated under
142chapter 617 which is recognized as educational, charitable, or
143scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
144and whose bylaws and articles of incorporation include
145affordable housing, economic development, or community
146development as the primary mission of the corporation;
147     (XII)  Units of local government;
148     (XIII)  Units of state government; or
149     (XIV)  Any other agency that the Office of Tourism, Trade,
150and Economic Development designates by rule.
151
152In no event may a contributing person have a financial interest
153in the eligible sponsor.
154     d.  The project must be located in an area designated an
155enterprise zone or a Front Porch Florida Community pursuant to
156s. 20.18(6), unless the project increases access to high-speed
157broadband capability for rural communities with enterprise zones
158but is physically located outside the designated rural zone
159boundaries. Any project designed to construct or rehabilitate
160housing for low-income or very-low-income households as defined
161in s. 420.0971(19) and (28) is exempt from the area requirement
162of this sub-subparagraph.
163     e.(I)  The Office of Tourism, Trade, and Economic
164Development shall reserve 60 percent of the available annual tax
165credits for donations made to eligible sponsors for projects
166that provide homeownership opportunities for low-income or very-
167low-income households as defined in s. 420.9071(19) and (28) for
168the first 2 months of the fiscal year. If less than 60 percent
169of the annual tax credits for donations made to eligible
170sponsors for projects that provide homeownership opportunities
171for low-income or very-low-income households are approved within
172the first 2 months of the fiscal year, the office may approve
173the balance of available credits for donations made to eligible
174sponsors for projects other than those that provide
175homeownership opportunities for low-income or very-low-income
176households.
177     (II)  The office shall reserve 40 percent of the available
178annual tax credits for donations made to eligible sponsors for
179projects other than those that provide homeownership
180opportunities for low-income or very-low-income households as
181defined in s. 420.9071(19) and (28) for the first 2 months of
182the fiscal year. If less than 40 percent of the annual tax
183credits for donations made to eligible sponsors for projects
184other than those that provide homeownership opportunities for
185low-income or very-low-income households are approved within the
186first 2 months of the fiscal year, the office may approve the
187balance of available credits for donations made to eligible
188sponsors for projects that provide homeownership opportunities
189for low-income or very-low-income households.
190     (III)  If, during the first 10 business days of the state
191fiscal year, tax credit applications are received for more than
19260 percent of available annual tax credits for approved projects
193that provide homeownership opportunities for low-income or very-
194low-income households, the office shall grant the tax credits
195for such applications as follows:
196     (A)  If tax credit applications submitted for approved
197projects of an eligible sponsor do not exceed $200,000 in total,
198the credits shall be granted in full if the tax credit
199applications are approved and subject to sub-sub-subparagraph
200(I).
201     (B)  If tax credit applications submitted for approved
202projects of an eligible sponsor exceed $200,000 in total, the
203amount of tax credit granted under sub-sub-sub-subparagraph (A)
204shall be subtracted from the amount of available tax credits
205under sub-sub-subparagraph (I), and the remaining credits shall
206be granted to each approved tax credit application on a pro rata
207basis.
208     (C)  If, after the first 2 months of the fiscal year,
209additional credits become available under sub-sub-subparagraph
210(II), the office shall grant the tax credits by first granting
211credits to those who received a pro rata reduction up to the
212full amount of their request and, if there are remaining
213credits, granting credits to those who applied on or after the
21411th business day of the state fiscal year on a first-come,
215first-served basis.
216     (IV)  If, during the first 10 business days of the state
217fiscal year, tax credit applications are received for more than
21840 percent of available annual tax credits for approved projects
219other than those that provide homeownership opportunities for
220low-income or very-low-income households, the office shall grant
221the tax credits to each approved tax credit application on a pro
222rata basis. If, after the first 2 months of the fiscal year,
223additional credits become available under sub-sub-subparagraph
224(I), the office shall grant the tax credits by first granting
225credits to those who received a pro rata reduction up to the
226full amount of their request and, if there are remaining
227credits, granting credits to those who applied on or after the
22811th business day of the state fiscal year on a first-come,
229first-served basis.
230     3.  Application requirements.--
231     a.  Any eligible sponsor seeking to participate in this
232program must submit a proposal to the Office of Tourism, Trade,
233and Economic Development which sets forth the name of the
234sponsor, a description of the project, and the area in which the
235project is located, together with such supporting information as
236is prescribed by rule. The proposal must also contain a
237resolution from the local governmental unit in which the project
238is located certifying that the project is consistent with local
239plans and regulations.
240     b.  Any person seeking to participate in this program must
241submit an application for tax credit to the Office of Tourism,
242Trade, and Economic Development which sets forth the name of the
243sponsor, a description of the project, and the type, value, and
244purpose of the contribution. The sponsor shall verify the terms
245of the application and indicate its receipt of the contribution,
246which verification must be in writing and accompany the
247application for tax credit. The person must submit a separate
248tax credit application to the office for each individual
249contribution that it makes to each individual project.
250     c.  Any person who has received notification from the
251Office of Tourism, Trade, and Economic Development that a tax
252credit has been approved must apply to the department to receive
253the refund. Application must be made on the form prescribed for
254claiming refunds of sales and use taxes and be accompanied by a
255copy of the notification. A person may submit only one
256application for refund to the department within any 12-month
257period.
258     4.  Administration.--
259     a.  The Office of Tourism, Trade, and Economic Development
260may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary
261to administer this paragraph, including rules for the approval
262or disapproval of proposals by a person.
263     b.  The decision of the Office of Tourism, Trade, and
264Economic Development must be in writing, and, if approved, the
265notification shall state the maximum credit allowable to the
266person. Upon approval, the office shall transmit a copy of the
267decision to the Department of Revenue.
268     c.  The Office of Tourism, Trade, and Economic Development
269shall periodically monitor all projects in a manner consistent
270with available resources to ensure that resources are used in
271accordance with this paragraph; however, each project must be
272reviewed at least once every 2 years.
273     d.  The Office of Tourism, Trade, and Economic Development
274shall, in consultation with the Department of Community Affairs,
275the Florida Housing Finance Corporation, and the statewide and
276regional housing and financial intermediaries, market the
277availability of the community contribution tax credit program to
278community-based organizations.
279     5.  Expiration.--This paragraph expires June 30, 2015 2005;
280however, any accrued credit carryover that is unused on that
281date may be used until the expiration of the 3-year carryover
282period for such credit.
283     Section 2.  Paragraph (t) of subsection (1) of section
284220.03, Florida Statutes, is amended to read:
285     220.03  Definitions.--
286     (1)  SPECIFIC TERMS.--When used in this code, and when not
287otherwise distinctly expressed or manifestly incompatible with
288the intent thereof, the following terms shall have the following
289meanings:
290     (t)  "Project" means any activity undertaken by an eligible
291sponsor, as defined in s. 220.183(2)(c), which is designed to
292construct, improve, or substantially rehabilitate housing that
293is affordable to low-income or very-low-income households as
294defined in s. 420.9071(19) and (28); designed to provide
295commercial, industrial, or public resources and facilities; or
296designed to improve entrepreneurial and job-development
297opportunities for low-income persons. A project may be the
298investment necessary to increase access to high-speed broadband
299capability in rural communities with enterprise zones, including
300projects that result in improvements to communications assets
301that are owned by a business. A project may include the
302provision of museum educational programs and materials that are
303directly related to any project approved between January 1,
3041996, and December 31, 1999, and located in an enterprise zone
305as referenced in s. 290.00675. This paragraph does not preclude
306projects that propose to construct or rehabilitate low-income or
307very-low-income housing on scattered sites. The Office of
308Tourism, Trade, and Economic Development may reserve up to 50
309percent of the available annual tax credits under s. 220.181 for
310housing for very-low-income households pursuant to s.
311420.9071(28) for the first 6 months of the fiscal year. With
312respect to housing, contributions may be used to pay the
313following eligible project-related activities:
314     1.  Project development, impact, and management fees for
315low-income or very-low-income housing projects;
316     2.  Down payment and closing costs for eligible persons, as
317defined in s. 420.9071(19) and (28);
318     3.  Administrative costs, including housing counseling and
319marketing fees, not to exceed 10 percent of the community
320contribution, directly related to low-income or very-low-income
321projects; and
322     4.  Removal of liens recorded against residential property
323by municipal, county, or special-district local governments when
324satisfaction of the lien is a necessary precedent to the
325transfer of the property to an eligible person, as defined in s.
326420.9071(19) and (28), for the purpose of promoting home
327ownership. Contributions for lien removal must be received from
328a nonrelated third party.
329
330The provisions of this paragraph shall expire and be void on
331June 30, 2015 2005.
332     Section 3.  Paragraph (c) of subsection (1), paragraph (b)
333of subsection (2), and subsection (5) of section 220.183,
334Florida Statutes, are amended to read:
335     220.183  Community contribution tax credit.--
336     (1)  AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
337CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
338SPENDING.--
339     (c)  The total amount of tax credit which may be granted
340for all programs approved under this section, s. 212.08(5)(q),
341and s. 624.5105 is $20 $10 million annually.
342     (2)  ELIGIBILITY REQUIREMENTS.--
343     (b)1.  All community contributions must be reserved
344exclusively for use in projects as defined in s. 220.03(1)(t).
345     2.  The Office of Tourism, Trade, and Economic Development
346shall may reserve 60 up to 50 percent of the available annual
347tax credits for housing for donations made to eligible sponsors
348for projects that provide homeownership opportunities for low-
349income or very-low-income households as defined in pursuant to
350s. 420.9071(19) and (28) for the first 2 6 months of the fiscal
351year. If less than 60 percent of the annual tax credits for
352donations made to eligible sponsors for projects for low-income
353or very-low-income households are approved within the first 2
354months of the fiscal year, the office may approve the balance of
355available credits for donations made to eligible sponsors for
356projects other than those that provide homeownership
357opportunities for low-income or very-low-income households.
358     3.  The office shall reserve 40 percent of the available
359annual tax credits for donations made to eligible sponsors for
360projects other than those that provide homeownership
361opportunities for low-income or very-low-income households as
362defined in s. 420.9071(19) and (28) for the first 2 months of
363the fiscal year. If less than 40 percent of the annual tax
364credits for donations made to eligible sponsors for projects
365other than those that provide homeownership opportunities for
366low-income or very-low-income households are approved within the
367first 2 months of the fiscal year, the office may approve the
368balance of available credits for donations made to eligible
369sponsors for projects that provide homeownership opportunities
370for low-income or very-low-income households.
371     4.  If, during the first 10 business days of the state
372fiscal year, tax credit applications are received for more than
37360 percent of available annual tax credits for approved projects
374that provide homeownership opportunities for low-income or very-
375low-income households, the office shall grant the tax credits
376for such applications as follows:
377     a.  If tax credit applications submitted for approved
378projects of an eligible sponsor do not exceed $200,000 in total,
379the credits shall be granted in full if the tax credit
380applications are approved and subject to subparagraph 2.
381     b.  If tax credit applications submitted for approved
382projects of an eligible sponsor exceed $200,000 in total, the
383amount of tax credits granted under sub-subparagraph a. shall be
384subtracted from the amount of available tax credits under
385subparagraph 2., and the remaining credits shall be granted to
386each approved tax credit application on a pro rata basis.
387     c.  If, after the first 2 months of the fiscal year,
388additional credits become available under subparagraph 3., the
389office shall grant the tax credits by first granting credits to
390those who received a pro rata reduction up to the full amount of
391their request and, if there are remaining credits, granting
392credits to those who applied on or after the 11th business day
393of the state fiscal year on a first-come, first-served basis.
394     5.  If, during the first 10 business days of the state
395fiscal year, tax credit applications are received for more than
39640 percent of available annual tax credits for approved projects
397other than those that provide homeownership opportunities for
398low-income or very-low-income households, the office shall grant
399the tax credits to each approved tax credit application on a pro
400rata basis. If, after the first 2 months of the fiscal year,
401additional credits become available under subparagraph 2., the
402office shall grant the tax credits by first granting credits to
403those who received a pro rata reduction up to the full amount of
404their request and, if there are remaining credits, granting
405credits to those who applied on or after the 11th business day
406of the state fiscal year on a first-come, first-served basis.
407     (5)  EXPIRATION.--The provisions of this section, except
408paragraph (1)(e), shall expire and be void on June 30, 2015
4092005.
410     Section 4.  Paragraph (c) of subsection (1) and subsection
411(6) of section 624.5105, Florida Statutes, are amended, and
412paragraph (e) is added to subsection (2) of said section, to
413read:
414     624.5105  Community contribution tax credit; authorization;
415limitations; eligibility and application requirements;
416administration; definitions; expiration.--
417     (1)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
418     (c)  The total amount of tax credit which may be granted
419for all programs approved under this section, s. 212.08(5)(q),
420and s. 220.183 is $20 $10 million annually.
421     (2)  ELIGIBILITY REQUIREMENTS.--
422     (e)1.  The Office of Tourism, Trade, and Economic
423Development shall reserve 60 percent of the available annual tax
424credits for donations made to eligible sponsors for projects
425that provide homeownership opportunities for low-income or very-
426low-income households as defined in s. 420.9071(19) and (28) for
427the first 2 months of the fiscal year. If less than 60 percent
428of the annual tax credits for donations made to eligible
429sponsors for projects that provide homeownership opportunities
430for low-income or very-low-income households are approved within
431the first 2 months of the fiscal year, the office may approve
432the balance of available credits for donations made to eligible
433sponsors for projects other than those that provide
434homeownership opportunities for low-income or very-low-income
435households.
436     2.  The office shall reserve 40 percent of the available
437annual tax credits for donations made to eligible sponsors for
438projects other than those that provide homeownership
439opportunities for low-income or very-low-income households as
440defined in s. 420.9071(19) and (28) for the first 2 months of
441the fiscal year. If less than 40 percent of the annual tax
442credits for donations made to eligible sponsors for projects
443other than those that provide homeownership opportunities for
444low-income or very-low-income households are approved within the
445first 2 months of the fiscal year, the office may approve the
446balance of available credits for donations made to eligible
447sponsors for projects that provide homeownership opportunities
448for low-income or very-low-income households.
449     3.  If, during the first 10 business days of the state
450fiscal year, tax credit applications are received for more than
45160 percent of available annual tax credits for approved projects
452that provide homeownership opportunities for low-income or very-
453low-income households, the office shall grant the tax credits
454for such applications as follows:
455     a.  If tax credit applications submitted for approved
456projects of an eligible sponsor do not exceed $200,000 in total,
457the credits shall be granted in full if the tax credit
458applications are approved and subject to subparagraph 1.
459     b.  If tax credit applications submitted for approved
460projects of an eligible sponsor exceed $200,000 in total, the
461amount of tax credits granted under sub-subparagraph a. shall be
462subtracted from the amount of available tax credits under
463subparagraph 1., and the remaining credits shall be granted to
464each approved tax credit application on a pro rata basis.
465     c.  If, after the first 2 months of the fiscal year,
466additional credits become available under subparagraph 2., the
467office shall grant the tax credits by first granting credits to
468those who received a pro rata reduction up to the full amount of
469their request and, if there are remaining credits, granting
470credits to those who applied on or after the 11th business day
471of the state fiscal year on a first-come, first-served basis.
472     4.  If, during the first 10 business days of the state
473fiscal year, tax credit applications are received for more than
47440 percent of available annual tax credits for approved projects
475other than those that provide homeownership opportunities for
476low-income or very-low-income households, the office shall grant
477the tax credits to each approved tax credit application on a pro
478rata basis. If, after the first 2 months of the fiscal year,
479additional credits become available under subparagraph 1., the
480office shall grant the tax credits by first granting credits to
481those who received a pro rata reduction up to the full amount of
482their request and, if there are remaining credits, granting
483credits to those who applied on or after the 11th business day
484of the state fiscal year on a first-come, first-served basis.
485     (6)  EXPIRATION.--The provisions of this section, except
486paragraph (1)(e), shall expire and be void on June 30, 2015
4872005.
488     Section 5.  This act shall take effect July 1, 2005.


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