| 1 | The Tourism Committee recommends the following: |
| 2 |
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| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to the corporate income tax; providing a |
| 7 | credit against the tax for contributions to nonprofit |
| 8 | cultural organizations; providing legislative purpose; |
| 9 | defining terms; providing limitations on individual |
| 10 | credits; providing that the unused amount of a credit may |
| 11 | not be carried forward; prohibiting conveying, assigning, |
| 12 | or transferring the credit to another entity except as |
| 13 | specified; providing for administration by the Department |
| 14 | of Revenue and the Division of Cultural Affairs of the |
| 15 | Department of State; requiring the department to adopt |
| 16 | rules; authorizing the division to adopt rules; providing |
| 17 | a tax credit for donations to the Fine Arts Trust Fund; |
| 18 | providing that the unused amount of a credit may not be |
| 19 | carried forward; prohibiting conveying, assigning, or |
| 20 | transferring the credit to another entity, except as |
| 21 | specified; providing written request procedures; providing |
| 22 | for rulemaking by the Department of Revenue and the |
| 23 | Division of Cultural Affairs of the Department of State; |
| 24 | providing legislative intent with respect to the order in |
| 25 | which credits may be applied; providing for an addition to |
| 26 | taxable income for purposes of computing adjusted federal |
| 27 | income, to conform; specifying the maximum amount of |
| 28 | annual tax credits which may be granted under the act; |
| 29 | providing for expiration of the act; providing an |
| 30 | effective date. |
| 31 |
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| 32 | Be It Enacted by the Legislature of the State of Florida: |
| 33 |
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| 34 | Section 1. Credits for contributions to nonprofit cultural |
| 35 | organizations.-- |
| 36 | (1) PURPOSE.--The purpose of this section is to encourage |
| 37 | private, voluntary contributions to organizations that promote |
| 38 | cultural activities by encouraging the talents of creative |
| 39 | individuals or by helping to provide an audience for cultural |
| 40 | activities. |
| 41 | (2) DEFINITIONS.--As used in this section, the term: |
| 42 | (a) "Cultural activities" means dance, music, theater, |
| 43 | visual arts, literature, media arts, museum programs, and |
| 44 | activities that combine two or more of those disciplines. |
| 45 | (b) "Department" means the Department of Revenue. |
| 46 | (c) "Division" means the Division of Cultural Affairs of |
| 47 | the Department of State. |
| 48 | (d) "Eligible contribution" means a monetary contribution |
| 49 | from a taxpayer, subject to the restrictions provided in this |
| 50 | section, to an eligible cultural organization. |
| 51 | (e) "Eligible cultural organization" means a nonprofit |
| 52 | cultural organization that provides cultural programs within the |
| 53 | state and is: |
| 54 | 1. Exempt from federal income tax under s. 501(c)(3) of |
| 55 | the Internal Revenue Code, as amended. |
| 56 | 2. Incorporated pursuant to and in compliance with chapter |
| 57 | 617, Florida Statutes. |
| 58 | 3. Determined to be eligible to receive funding from |
| 59 | programs administered under Rule 1T-1.001, Florida |
| 60 | Administrative Code. |
| 61 |
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| 62 | The term includes educational institutions that are also |
| 63 | presenters or producers of cultural activities in this state |
| 64 | which otherwise meet these requirements. |
| 65 | (3) AUTHORIZATION TO GRANT CULTURAL ORGANIZATIONS TAX |
| 66 | CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS.-- |
| 67 | (a) There is allowed a credit of 50 percent of the amount |
| 68 | of an eligible contribution, which contribution is in the amount |
| 69 | of $60,000 or more, against any tax due for a taxable year under |
| 70 | chapter 220, Florida Statutes. However, such a credit is |
| 71 | inapplicable to a particular corporation after the aggregate |
| 72 | amount of the contributions to eligible cultural organizations |
| 73 | given by the corporation in any one taxable year exceeds |
| 74 | $600,000. |
| 75 | (b) A taxpayer who files a Florida consolidated return as |
| 76 | a member of an affiliated group under s. 220.131(1), Florida |
| 77 | Statutes, may be allowed the credit on a consolidated return |
| 78 | basis; however, the total credit taken by the affiliated group |
| 79 | is subject to the limitation established under paragraph (a). |
| 80 | (4) ADMINISTRATION; RULES.-- |
| 81 | (a) If the credit granted under this section is not fully |
| 82 | used in any one year, the unused amount may not be carried |
| 83 | forward. A taxpayer may not convey, assign, or transfer the |
| 84 | credit authorized by this section to another entity unless all |
| 85 | of the assets of the taxpayer are conveyed, assigned, or |
| 86 | transferred in the same transaction. |
| 87 | (b) A written request for a tax credit pursuant to this |
| 88 | section must be submitted to the division on taxpayer letterhead |
| 89 | and signed by an authorized official of the corporation. Written |
| 90 | requests shall be accepted on a first-come, first-served basis |
| 91 | beginning July 1, 2005. Submission by facsimile is permissible; |
| 92 | however, requests transmitted by electronic mail shall not be |
| 93 | accepted. The sequence of request submissions shall be |
| 94 | determined by the time and date received by the division within |
| 95 | normal business hours. Any request submitted after hours or on a |
| 96 | weekend or a holiday shall be considered received at 8 a.m. on |
| 97 | the next regular business day. |
| 98 | (c) A taxpayer must submit a separate written request for |
| 99 | each individual contribution that it makes to an eligible |
| 100 | cultural organization. To retain each request's acceptance time |
| 101 | status pursuant to paragraph (b), written confirmation of |
| 102 | receipt of such contribution by the cultural organization must |
| 103 | be received by the division no later than 4 p.m. on the third |
| 104 | business day following the receipt of the taxpayer's written |
| 105 | request for tax credit. Requests that fail to comply with this |
| 106 | deadline shall be considered received by the division at the |
| 107 | date and time the written confirmation of such contribution is |
| 108 | received. |
| 109 | (d) The verification of tax credit eligibility by the |
| 110 | division must be in writing and must state the maximum credit |
| 111 | allowable to the business firm. A copy of the verification of |
| 112 | tax credit eligibility must be transmitted to the executive |
| 113 | director of the Department of Revenue, who shall apply such |
| 114 | credit to the tax liability of the business firm. |
| 115 | (e) The department shall adopt rules necessary to |
| 116 | administer this section, including rules establishing forms and |
| 117 | procedures. |
| 118 | (f) The division may adopt rules necessary to determine |
| 119 | the eligibility of nonprofit cultural organizations. |
| 120 | Section 2. Cultural contributions tax credit.-- |
| 121 | (1) AUTHORIZATION TO GRANT CULTURAL CONTRIBUTIONS TAX |
| 122 | CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS.-- |
| 123 | (a) There shall be allowed a credit of 50 percent of any |
| 124 | monetary contribution made to the Division of Cultural Affairs |
| 125 | of the Department of State for deposit into the Fine Arts Trust |
| 126 | Fund against any tax due for a taxable year under chapter 220, |
| 127 | Florida Statutes. |
| 128 | (b) If the credit granted under this section is not fully |
| 129 | used in any one year, the unused amount may not be carried |
| 130 | forward. A taxpayer may not convey, assign, or transfer the |
| 131 | credit authorized by this section to another entity unless all |
| 132 | of the assets of the taxpayer are conveyed, assigned, or |
| 133 | transferred in the same transaction. |
| 134 | (2) WRITTEN REQUEST REQUIREMENTS.-- |
| 135 | (a) Any business wishing to participate in this program |
| 136 | must submit a written request for the tax credit to the division |
| 137 | on taxpayer letterhead and signed by an authorized official of |
| 138 | the corporation. Written requests shall be accepted on a first- |
| 139 | come, first-served basis beginning July 1, 2005. Submission by |
| 140 | facsimile is permissible; however, requests transmitted by |
| 141 | electronic mail shall not be accepted. The sequence of request |
| 142 | submissions shall be determined by the time and date received by |
| 143 | the division within normal business hours. Any request submitted |
| 144 | after hours or on a weekend or a holiday shall be considered |
| 145 | received at 8 a.m. on the next regular business day. |
| 146 | (b) The business firm must submit a separate written |
| 147 | request for tax credit for each individual contribution that it |
| 148 | makes to the Fine Arts Trust Fund. To retain each request's |
| 149 | acceptance date and time status pursuant to paragraph (a), the |
| 150 | funds to be contributed must be received by the division no |
| 151 | later than 4 p.m. on the second business day following the |
| 152 | receipt of the taxpayer's written request for tax credit. |
| 153 | Requests that fail to comply with this deadline shall be |
| 154 | considered received by the division at the date and time the |
| 155 | written confirmation of such contribution is received. |
| 156 | (3) ADMINISTRATION.-- |
| 157 | (a) The division may adopt rules under ss. 120.536(1) and |
| 158 | 120.54, Florida Statutes, to administer this section. |
| 159 | (b) The verification of tax credit eligibility by the |
| 160 | division must be in writing and must state the maximum credit |
| 161 | allowable to the business firm. A copy of the verification of |
| 162 | tax credit eligibility must be transmitted to the executive |
| 163 | director of the Department of Revenue, who shall apply such |
| 164 | credit to the tax liability of the business firm. |
| 165 | (c) The Department of Revenue may adopt rules under ss. |
| 166 | 120.536(1) and 120.54, Florida Statutes, to administer this |
| 167 | section. |
| 168 | Section 3. It is the intent of the Legislature that |
| 169 | credits against the corporate income tax granted under section 1 |
| 170 | or section 2 be applied subsequent to those enumerated in s. |
| 171 | 220.187, Florida Statutes. |
| 172 | Section 4. In computing adjusted federal income under s. |
| 173 | 220.13, Florida Statutes, there shall be added to such taxable |
| 174 | income the amount taken as a credit for the taxable year under |
| 175 | sections 1 and 2. |
| 176 | Section 5. The total amount of tax credit which may be |
| 177 | granted for all programs approved under sections 1 and 2 is $5 |
| 178 | million annually. |
| 179 | Section 6. Sections 1-5 expire June 30, 2006. |
| 180 | Section 7. This act shall take effect July 1, 2005. |