| 1 | A bill to be entitled |
| 2 | An act relating to the corporate income tax; providing a |
| 3 | credit against the tax for contributions to nonprofit |
| 4 | cultural organizations; providing legislative purpose; |
| 5 | defining terms; providing limitations on individual |
| 6 | credits; providing that the unused amount of a credit may |
| 7 | not be carried forward; prohibiting conveying, assigning, |
| 8 | or transferring the credit to another entity except as |
| 9 | specified; providing for administration by the Department |
| 10 | of Revenue and the Division of Cultural Affairs of the |
| 11 | Department of State; requiring the department and the |
| 12 | division to adopt rules; providing a tax credit for |
| 13 | donations to the Fine Arts Trust Fund; providing that the |
| 14 | unused amount of a credit may not be carried forward; |
| 15 | prohibiting conveying, assigning, or transferring the |
| 16 | credit to another entity, except as specified; providing |
| 17 | application procedures; providing for rulemaking by the |
| 18 | Department of Revenue and the Department of State; |
| 19 | providing legislative intent with respect to the order in |
| 20 | which credits may be applied; providing for an addition to |
| 21 | taxable income for purposes of computing adjusted federal |
| 22 | income, to conform; specifying the maximum amount of |
| 23 | annual tax credits which may be granted under the act; |
| 24 | providing for expiration of the act; providing an |
| 25 | effective date. |
| 26 |
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| 27 | Be It Enacted by the Legislature of the State of Florida: |
| 28 |
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| 29 | Section 1. Credits for contributions to nonprofit cultural |
| 30 | organizations.-- |
| 31 | (1) PURPOSE.--The purpose of this section is to encourage |
| 32 | private, voluntary contributions to organizations that promote |
| 33 | cultural activities by encouraging the talents of creative |
| 34 | individuals or by helping to provide an audience for cultural |
| 35 | activities. |
| 36 | (2) DEFINITIONS.--As used in this section, the term: |
| 37 | (a) "Cultural activities" means dance, music, theater, |
| 38 | visual arts, literature, media arts, museum programs, and |
| 39 | activities that combine two or more of those disciplines. |
| 40 | (b) "Department" means the Department of Revenue. |
| 41 | (c) "Division" means the Division of Cultural Affairs of |
| 42 | the Department of State. |
| 43 | (d) "Eligible contribution" means a monetary contribution |
| 44 | from a taxpayer, subject to the restrictions provided in this |
| 45 | section, to an eligible cultural organization. |
| 46 | (e) "Eligible cultural organization" means a nonprofit |
| 47 | cultural organization that is: |
| 48 | 1. Exempt from federal income tax under s. 501(c)(3) of |
| 49 | the Internal Revenue Code; |
| 50 | 2. In compliance with section 265.702, Florida Statutes; |
| 51 | and |
| 52 | 3. Given priority ranking under rule 1T-1001, Florida |
| 53 | Administrative Code. |
| 54 |
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| 55 | The term includes educational institutions that are also |
| 56 | presenters or producers of cultural activities in this state |
| 57 | which otherwise meet these requirements. |
| 58 | (3) AUTHORIZATION TO GRANT CULTURAL ORGANIZATIONS TAX |
| 59 | CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS.-- |
| 60 | (a) There is allowed a credit of 50 percent of the amount |
| 61 | of an eligible contribution, which contribution is in the amount |
| 62 | of $60,000 or more, against any tax due for a taxable year under |
| 63 | chapter 220, Florida Statutes. However, such a credit is |
| 64 | inapplicable to a particular corporation after the aggregate |
| 65 | amount of the contributions to eligible cultural organizations |
| 66 | given by the corporation in any one taxable year exceeds |
| 67 | $600,000. |
| 68 | (b) A taxpayer who files a Florida consolidated return as |
| 69 | a member of an affiliated group under section 220.131(1), |
| 70 | Florida Statutes, may be allowed the credit on a consolidated |
| 71 | return basis; however, the total credit taken by the affiliated |
| 72 | group is subject to the limitation established under paragraph |
| 73 | (a). |
| 74 | (4) ADMINISTRATION; RULES.-- |
| 75 | (a) If the credit granted under this section is not fully |
| 76 | used in any one year, the unused amount may not be carried |
| 77 | forward. A taxpayer may not convey, assign, or transfer the |
| 78 | credit authorized by this section to another entity unless all |
| 79 | of the assets of the taxpayer are conveyed, assigned, or |
| 80 | transferred in the same transaction. |
| 81 | (b) An application for a tax credit pursuant to this |
| 82 | section must be submitted to the division on forms established |
| 83 | by rule of the division. Applications shall be accepted on a |
| 84 | first-come, first-served basis beginning July 1, 2005. |
| 85 | (c) A taxpayer must submit a separate application for the |
| 86 | tax credit for each individual contribution that it makes to an |
| 87 | eligible cultural organization. |
| 88 | (d) The granting of tax credit by the division must be in |
| 89 | writing and must state the maximum credit allowable to the |
| 90 | business firm. A copy of the granting of tax credit must be |
| 91 | transmitted to the executive director of the Department of |
| 92 | Revenue, who shall apply such credit to the tax liability of the |
| 93 | business firm. |
| 94 | (e) The department shall adopt rules necessary to |
| 95 | administer this section, including rules establishing |
| 96 | application forms and procedures. |
| 97 | (f) The division shall adopt rules necessary to determine |
| 98 | the eligibility of nonprofit cultural organizations. |
| 99 | Section 2. Cultural contributions tax credit.-- |
| 100 | (1) AUTHORIZATION TO GRANT CULTURAL CONTRIBUTIONS TAX |
| 101 | CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS.-- |
| 102 | (a) There shall be allowed a credit of 50 percent of any |
| 103 | monetary contribution made to the Division of Cultural Affairs |
| 104 | of the Department of State for deposit into the Fine Arts Trust |
| 105 | Fund against any tax due for a taxable year under chapter 220, |
| 106 | Florida Statutes. |
| 107 | (b) A proposal for the granting of the tax credit requires |
| 108 | the prior approval of the Division of Cultural Affairs of the |
| 109 | Department of State. |
| 110 | (c) If the credit granted under this section is not fully |
| 111 | used in any one year, the unused amount may not be carried |
| 112 | forward. A taxpayer may not convey, assign, or transfer the |
| 113 | credit authorized by this section to another entity unless all |
| 114 | of the assets of the taxpayer are conveyed, assigned, or |
| 115 | transferred in the same transaction. |
| 116 | (2) APPLICATION REQUIREMENTS.-- |
| 117 | (a) Any business wishing to participate in this program |
| 118 | must submit an application for the tax credit to the Division of |
| 119 | Cultural Affairs of the Department of State on forms established |
| 120 | by rule of the division. Applications shall be accepted on a |
| 121 | first-come, first-served basis beginning July 1, 2005. |
| 122 | (b) The business firm must submit a separate application |
| 123 | for tax credit for each individual contribution that it makes to |
| 124 | the Cultural Institutions Trust Fund. |
| 125 | (3) ADMINISTRATION.-- |
| 126 | (a) The Division of Cultural Affairs of the Department of |
| 127 | State may adopt rules under sections 120.536(1) and 120.54, |
| 128 | Florida Statutes, to administer this section. |
| 129 | (b) The granting of tax credit by the Division of Cultural |
| 130 | Affairs of the Department of State must be in writing and must |
| 131 | state the maximum credit allowable to the business firm. A copy |
| 132 | of the granting of tax credit must be transmitted to the |
| 133 | executive director of the Department of Revenue, who shall apply |
| 134 | such credit to the tax liability of the business firm. |
| 135 | (c) The Department of Revenue may adopt rules under |
| 136 | sections 120.536(1) and 120.54, Florida Statutes, to administer |
| 137 | this section. |
| 138 | Section 3. It is the intent of the Legislature that |
| 139 | credits against the corporate income tax granted under section 1 |
| 140 | or section 2 be applied subsequent to those enumerated in |
| 141 | section 220.187, Florida Statutes. |
| 142 | Section 4. In computing adjusted federal income under |
| 143 | section 220.13, Florida Statutes, there shall be added to such |
| 144 | taxable income the amount taken as a credit for the taxable year |
| 145 | under sections 1 and 2. |
| 146 | Section 5. The total amount of tax credit which may be |
| 147 | granted for all programs approved under sections 1 and 2 is $5 |
| 148 | million annually. |
| 149 | Section 6. Sections 1-5 expire June 30, 2006. |
| 150 | Section 7. This act shall take effect July 1, 2005. |