Senate Bill sb7036pb
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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
    FOR CONSIDERATION By the Committee on Transportation and
    Economic Development Appropriations
    606-587-06
  1                      A bill to be entitled
  2         An act relating to the community contribution
  3         tax credit program; amending s. 212.08, F.S.;
  4         providing separate annual limitations for tax
  5         credits against the sales and use tax for
  6         donations made to eligible sponsors for
  7         projects that provides homeownership
  8         opportunities for certain households and for
  9         donations made to eligible sponsors for all
10         other projects; eliminating the requirement
11         that the Office of Tourism, Trade, and Economic
12         Development reserve portions of certain annual
13         tax credits for donations made to eligible
14         sponsors for projects that provide
15         homeownership opportunities for certain
16         households; amending s. 220.183, F.S.;
17         providing separate annual limitations for tax
18         credits against the corporate income tax for
19         donations made to eligible sponsors for
20         projects that provide homeownership
21         opportunities for certain households and for
22         donations made to eligible sponsors for all
23         other projects; eliminating the requirement
24         that the Office of Tourism, Trade, and Economic
25         Development reserve portions of certain annual
26         tax credits for donations made to eligible
27         sponsors for projects that provide
28         homeownership opportunities for certain
29         households; amending s. 624.5105, F.S.;
30         providing separate annual limitations for tax
31         credits against the insurance premium tax for
                                  1
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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
    606-587-06
 1         donations made to eligible sponsors for
 2         projects that provide homeownership
 3         opportunities for certain households and for
 4         donations made to eligible sponsors for all
 5         other projects; eliminating the requirement
 6         that the Office of Tourism, Trade, and Economic
 7         Development reserve portions of certain annual
 8         tax credits for donations made to eligible
 9         sponsors for projects that provide
10         homeownership opportunities for certain
11         households; providing an effective date.
12  
13  Be It Enacted by the Legislature of the State of Florida:
14  
15         Section 1.  Paragraph (q) of subsection (5) of section
16  212.08, Florida Statutes, is amended to read:
17         212.08  Sales, rental, use, consumption, distribution,
18  and storage tax; specified exemptions.--The sale at retail,
19  the rental, the use, the consumption, the distribution, and
20  the storage to be used or consumed in this state of the
21  following are hereby specifically exempt from the tax imposed
22  by this chapter.
23         (5)  EXEMPTIONS; ACCOUNT OF USE.--
24         (q)  Community contribution tax credit for donations.--
25         1.  Authorization.--Beginning July 1, 2001, persons who
26  are registered with the department under s. 212.18 to collect
27  or remit sales or use tax and who make donations to eligible
28  sponsors are eligible for tax credits against their state
29  sales and use tax liabilities as provided in this paragraph:
30         a.  The credit shall be computed as 50 percent of the
31  person's approved annual community contribution;
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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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 1         b.  The credit shall be granted as a refund against
 2  state sales and use taxes reported on returns and remitted in
 3  the 12 months preceding the date of application to the
 4  department for the credit as required in sub-subparagraph 3.c.
 5  If the annual credit is not fully used through such refund
 6  because of insufficient tax payments during the applicable
 7  12-month period, the unused amount may be included in an
 8  application for a refund made pursuant to sub-subparagraph
 9  3.c. in subsequent years against the total tax payments made
10  for such year. Carryover credits may be applied for a 3-year
11  period without regard to any time limitation that would
12  otherwise apply under s. 215.26;
13         c.  A person may not receive more than $200,000 in
14  annual tax credits for all approved community contributions
15  made in any one year;
16         d.  All proposals for the granting of the tax credit
17  require the prior approval of the Office of Tourism, Trade,
18  and Economic Development;
19         e.  The total amount of tax credits which may be
20  granted for all programs approved under this paragraph, s.
21  220.183, and s. 624.5105 is $8 $12 million annually for
22  projects that provide homeownership opportunities for
23  low-income or very-low-income households as defined in s.
24  420.9071(19) and (28), and $4 million annually for all other
25  projects; and
26         f.  A person who is eligible to receive the credit
27  provided for in this paragraph, s. 220.183, or s. 624.5105 may
28  receive the credit only under the one section of the person's
29  choice.
30         2.  Eligibility requirements.--
31  
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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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 1         a.  A community contribution by a person must be in the
 2  following form:
 3         (I)  Cash or other liquid assets;
 4         (II)  Real property;
 5         (III)  Goods or inventory; or
 6         (IV)  Other physical resources as identified by the
 7  Office of Tourism, Trade, and Economic Development.
 8         b.  All community contributions must be reserved
 9  exclusively for use in a project. As used in this
10  sub-subparagraph, the term "project" means any activity
11  undertaken by an eligible sponsor which is designed to
12  construct, improve, or substantially rehabilitate housing that
13  is affordable to low-income or very-low-income households as
14  defined in s. 420.9071(19) and (28); designed to provide
15  commercial, industrial, or public resources and facilities; or
16  designed to improve entrepreneurial and job-development
17  opportunities for low-income persons. A project may be the
18  investment necessary to increase access to high-speed
19  broadband capability in rural communities with enterprise
20  zones, including projects that result in improvements to
21  communications assets that are owned by a business. A project
22  may include the provision of museum educational programs and
23  materials that are directly related to any project approved
24  between January 1, 1996, and December 31, 1999, and located in
25  an enterprise zone designated pursuant to s. 290.0065. This
26  paragraph does not preclude projects that propose to construct
27  or rehabilitate housing for low-income or very-low-income
28  households on scattered sites. With respect to housing,
29  contributions may be used to pay the following eligible
30  low-income and very-low-income housing-related activities:
31  
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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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 1         (I)  Project development impact and management fees for
 2  low-income or very-low-income housing projects;
 3         (II)  Down payment and closing costs for eligible
 4  persons, as defined in s. 420.9071(19) and (28);
 5         (III)  Administrative costs, including housing
 6  counseling and marketing fees, not to exceed 10 percent of the
 7  community contribution, directly related to low-income or
 8  very-low-income projects; and
 9         (IV)  Removal of liens recorded against residential
10  property by municipal, county, or special district local
11  governments when satisfaction of the lien is a necessary
12  precedent to the transfer of the property to an eligible
13  person, as defined in s. 420.9071(19) and (28), for the
14  purpose of promoting home ownership. Contributions for lien
15  removal must be received from a nonrelated third party.
16         c.  The project must be undertaken by an "eligible
17  sponsor," which includes:
18         (I)  A community action program;
19         (II)  A nonprofit community-based development
20  organization whose mission is the provision of housing for
21  low-income or very-low-income households or increasing
22  entrepreneurial and job-development opportunities for
23  low-income persons;
24         (III)  A neighborhood housing services corporation;
25         (IV)  A local housing authority created under chapter
26  421;
27         (V)  A community redevelopment agency created under s.
28  163.356;
29         (VI)  The Florida Industrial Development Corporation;
30         (VII)  A historic preservation district agency or
31  organization;
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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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 1         (VIII)  A regional workforce board;
 2         (IX)  A direct-support organization as provided in s.
 3  1009.983;
 4         (X)  An enterprise zone development agency created
 5  under s. 290.0056;
 6         (XI)  A community-based organization incorporated under
 7  chapter 617 which is recognized as educational, charitable, or
 8  scientific pursuant to s. 501(c)(3) of the Internal Revenue
 9  Code and whose bylaws and articles of incorporation include
10  affordable housing, economic development, or community
11  development as the primary mission of the corporation;
12         (XII)  Units of local government;
13         (XIII)  Units of state government; or
14         (XIV)  Any other agency that the Office of Tourism,
15  Trade, and Economic Development designates by rule.
16  
17  In no event may a contributing person have a financial
18  interest in the eligible sponsor.
19         d.  The project must be located in an area designated
20  an enterprise zone or a Front Porch Florida Community pursuant
21  to s. 20.18(6), unless the project increases access to
22  high-speed broadband capability for rural communities with
23  enterprise zones but is physically located outside the
24  designated rural zone boundaries. Any project designed to
25  construct or rehabilitate housing for low-income or
26  very-low-income households as defined in s. 420.0971(19) and
27  (28) is exempt from the area requirement of this
28  sub-subparagraph.
29         e.(I)  For the first 6 months of the fiscal year, the
30  Office of Tourism, Trade, and Economic Development shall
31  reserve 80 percent of the first $10 million in available
                                  6
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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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 1  annual tax credits and 70 percent of any available annual tax
 2  credits in excess of $10 million for donations made to
 3  eligible sponsors for projects that provide homeownership
 4  opportunities for low-income or very-low-income households as
 5  defined in s. 420.9071(19) and (28). If any such reserved
 6  annual tax credits remain after the first 6 months of the
 7  fiscal year, the office may approve the balance of these
 8  available credits for donations made to eligible sponsors for
 9  projects other than those that provide homeownership
10  opportunities for low-income or very-low-income households.
11         (II)  For the first 6 months of the fiscal year, the
12  office shall reserve 20 percent of the first $10 million in
13  available annual tax credits and 30 percent of any available
14  annual tax credits in excess of $10 million for donations made
15  to eligible sponsors for projects other than those that
16  provide homeownership opportunities for low-income or
17  very-low-income households as defined in s. 420.9071(19) and
18  (28). If any reserved annual tax credits remain after the
19  first 6 months of the fiscal year, the office may approve the
20  balance of these available credits for donations made to
21  eligible sponsors for projects that provide homeownership
22  opportunities for low-income or very-low-income households.
23         (I)(III)  If, during the first 10 business days of the
24  state fiscal year, eligible tax credit applications for
25  projects that provide homeownership opportunities for
26  low-income or very-low-income households as defined in s.
27  420.9071(19) and (28) are received for less than the available
28  annual tax credits available for those projects reserved under
29  sub-sub-subparagraph (I), the office shall grant tax credits
30  for those applications and shall grant remaining tax credits
31  on a first-come, first-served basis for any subsequent
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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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 1  eligible applications received before the end of the first 6
 2  months of the state fiscal year.  If, during the first 10
 3  business days of the state fiscal year, eligible tax credit
 4  applications for projects that provide homeownership
 5  opportunities for low-income or very-low-income households as
 6  defined in s. 420.9071(19) and (28) are received for more than
 7  the available annual tax credits available for those projects
 8  reserved under sub-sub-subparagraph (I), the office shall
 9  grant the tax credits for those the applications as follows:
10         (A)  If tax credit applications submitted for approved
11  projects of an eligible sponsor do not exceed $200,000 in
12  total, the credits shall be granted in full if the tax credit
13  applications are approved, subject to sub-sub-subparagraph
14  (I).
15         (B)  If tax credit applications submitted for approved
16  projects of an eligible sponsor exceed $200,000 in total, the
17  amount of tax credits granted pursuant to
18  sub-sub-sub-subparagraph (A) shall be subtracted from the
19  amount of available tax credits under sub-sub-subparagraph
20  (I), and the remaining credits shall be granted to each
21  approved tax credit application on a pro rata basis.
22         (C)  If, after the first 6 months of the fiscal year,
23  additional credits become available under sub-sub-subparagraph
24  (II), the office shall grant the tax credits by first granting
25  to those who received a pro rata reduction up to the full
26  amount of their request and, if there are remaining credits,
27  granting credits to those who applied on or after the 11th
28  business day of the state fiscal year on a first-come,
29  first-served basis.
30         (II)(IV)  If, during the first 10 business days of the
31  state fiscal year, eligible tax credit applications for
                                  8
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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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 1  projects other than those that provide homeownership
 2  opportunities for low-income or very-low-income households as
 3  defined in s. 420.9071(19) and (28) are received for less than
 4  the available annual tax credits available for those projects
 5  reserved under sub-sub-subparagraph (II), the office shall
 6  grant tax credits for those applications and shall grant
 7  remaining tax credits on a first-come, first-served basis for
 8  any subsequent eligible applications received before the end
 9  of the first 6 months of the state fiscal year. If, during the
10  first 10 business days of the state fiscal year, eligible tax
11  credit applications for projects other than those that provide
12  homeownership opportunities for low-income or very-low-income
13  households as defined in s. 420.9071(19) and (28) are received
14  for more than the available annual tax credits available for
15  those projects reserved under sub-sub-subparagraph (II), the
16  office shall grant the tax credits for the applications on a
17  pro rata basis. If, after the first 6 months of the fiscal
18  year, additional credits become available under
19  sub-sub-subparagraph (I), the office shall grant the tax
20  credits by first granting to those who received a pro rata
21  reduction up to the full amount of their request and, if there
22  are remaining credits, granting credits to those who applied
23  on or after the 11th business day of the state fiscal year on
24  a first-come, first-served basis.
25         3.  Application requirements.--
26         a.  Any eligible sponsor seeking to participate in this
27  program must submit a proposal to the Office of Tourism,
28  Trade, and Economic Development which sets forth the name of
29  the sponsor, a description of the project, and the area in
30  which the project is located, together with such supporting
31  information as is prescribed by rule. The proposal must also
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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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 1  contain a resolution from the local governmental unit in which
 2  the project is located certifying that the project is
 3  consistent with local plans and regulations.
 4         b.  Any person seeking to participate in this program
 5  must submit an application for tax credit to the Office of
 6  Tourism, Trade, and Economic Development which sets forth the
 7  name of the sponsor, a description of the project, and the
 8  type, value, and purpose of the contribution. The sponsor
 9  shall verify the terms of the application and indicate its
10  receipt of the contribution, which verification must be in
11  writing and accompany the application for tax credit. The
12  person must submit a separate tax credit application to the
13  office for each individual contribution that it makes to each
14  individual project.
15         c.  Any person who has received notification from the
16  Office of Tourism, Trade, and Economic Development that a tax
17  credit has been approved must apply to the department to
18  receive the refund. Application must be made on the form
19  prescribed for claiming refunds of sales and use taxes and be
20  accompanied by a copy of the notification. A person may submit
21  only one application for refund to the department within any
22  12-month period.
23         4.  Administration.--
24         a.  The Office of Tourism, Trade, and Economic
25  Development may adopt rules pursuant to ss. 120.536(1) and
26  120.54 necessary to administer this paragraph, including rules
27  for the approval or disapproval of proposals by a person.
28         b.  The decision of the Office of Tourism, Trade, and
29  Economic Development must be in writing, and, if approved, the
30  notification shall state the maximum credit allowable to the
31  
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 1  person. Upon approval, the office shall transmit a copy of the
 2  decision to the Department of Revenue.
 3         c.  The Office of Tourism, Trade, and Economic
 4  Development shall periodically monitor all projects in a
 5  manner consistent with available resources to ensure that
 6  resources are used in accordance with this paragraph; however,
 7  each project must be reviewed at least once every 2 years.
 8         d.  The Office of Tourism, Trade, and Economic
 9  Development shall, in consultation with the Department of
10  Community Affairs, the Florida Housing Finance Corporation,
11  and the statewide and regional housing and financial
12  intermediaries, market the availability of the community
13  contribution tax credit program to community-based
14  organizations.
15         5.  Expiration.--This paragraph expires June 30, 2015;
16  however, any accrued credit carryover that is unused on that
17  date may be used until the expiration of the 3-year carryover
18  period for such credit.
19         Section 2.  Subsections (1) and (2) of section 220.183,
20  Florida Statutes, are amended to read:
21         220.183  Community contribution tax credit.--
22         (1)  AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
23  CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
24  SPENDING.--
25         (a)  There shall be allowed a credit of 50 percent of a
26  community contribution against any tax due for a taxable year
27  under this chapter.
28         (b)  No business firm shall receive more than $200,000
29  in annual tax credits for all approved community contributions
30  made in any one year.
31  
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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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 1         (c)  The total amount of tax credit which may be
 2  granted for all programs approved under this section, s.
 3  212.08(5)(q), and s. 624.5105 is $8 $12 million annually for
 4  projects that provide homeownership opportunities for
 5  low-income or very-low-income households as defined in s.
 6  420.9071(19) and (28), and $4 million annually for all other
 7  projects.
 8         (d)  All proposals for the granting of the tax credit
 9  shall require the prior approval of the Office of Tourism,
10  Trade, and Economic Development.
11         (e)  If the credit granted pursuant to this section is
12  not fully used in any one year because of insufficient tax
13  liability on the part of the business firm, the unused amount
14  may be carried forward for a period not to exceed 5 years. The
15  carryover credit may be used in a subsequent year when the tax
16  imposed by this chapter for such year exceeds the credit for
17  such year under this section after applying the other credits
18  and unused credit carryovers in the order provided in s.
19  220.02(8).
20         (f)  A taxpayer who files a Florida consolidated return
21  as a member of an affiliated group pursuant to s. 220.131(1)
22  may be allowed the credit on a consolidated return basis.
23         (g)  A taxpayer who is eligible to receive the credit
24  provided for in s. 624.5105 is not eligible to receive the
25  credit provided by this section.
26         (2)  ELIGIBILITY REQUIREMENTS.--
27         (a)  All community contributions by a business firm
28  shall be in the form specified in s. 220.03(1)(d).
29         (b)1.  All community contributions must be reserved
30  exclusively for use in projects as defined in s. 220.03(1)(t).
31  
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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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 1         2.  For the first 6 months of the fiscal year, the
 2  Office of Tourism, Trade, and Economic Development shall
 3  reserve 80 percent of the first $10 million in available
 4  annual tax credits, and 70 percent of any available annual tax
 5  credits in excess of $10 million, for donations made to
 6  eligible sponsors for projects that provide homeownership
 7  opportunities for low-income or very-low-income households as
 8  defined in s. 420.9071(19) and (28). If any reserved annual
 9  tax credits remain after the first 6 months of the fiscal
10  year, the office may approve the balance of these available
11  credits for donations made to eligible sponsors for projects
12  other than those that provide homeownership opportunities for
13  low-income or very-low-income households.
14         3.  For the first 6 months of the fiscal year, the
15  office shall reserve 20 percent of the first $10 million in
16  available annual tax credits, and 30 percent of any available
17  annual tax credits in excess of $10 million, for donations
18  made to eligible sponsors for projects other than those that
19  provide homeownership opportunities for low-income or
20  very-low-income households as defined in s. 420.9071(19) and
21  (28). If any reserved annual tax credits remain after the
22  first 6 months of the fiscal year, the office may approve the
23  balance of these available credits for donations made to
24  eligible sponsors for projects that provide homeownership
25  opportunities for low-income or very-low-income households.
26         2.4.  If, during the first 10 business days of the
27  state fiscal year, eligible tax credit applications for
28  projects that provide homeownership opportunities for
29  low-income or very-low-income households as defined in s.
30  420.9071(19) and (28) are received for less than the available
31  annual tax credits available for those projects reserved under
                                  13
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 1  subparagraph 2., the office shall grant tax credits for those
 2  applications and shall grant remaining tax credits on a
 3  first-come, first-served basis for any subsequent eligible
 4  applications received before the end of the first 6 months of
 5  the state fiscal year. If, during the first 10 business days
 6  of the state fiscal year, eligible tax credit applications for
 7  projects that provide homeownership opportunities for
 8  low-income or very-low-income households as defined in s.
 9  420.9071(19) and (28) are received for more than the available
10  annual tax credits available for those projects reserved under
11  subparagraph 2., the office shall grant the tax credits for
12  such applications as follows:
13         a.  If tax credit applications submitted for approved
14  projects of an eligible sponsor do not exceed $200,000 in
15  total, the credit shall be granted in full if the tax credit
16  applications are approved, subject to the provisions of
17  subparagraph 2.
18         b.  If tax credit applications submitted for approved
19  projects of an eligible sponsor exceed $200,000 in total, the
20  amount of tax credits granted under sub-subparagraph a. shall
21  be subtracted from the amount of available tax credits under
22  subparagraph 2., and the remaining credits shall be granted to
23  each approved tax credit application on a pro rata basis.
24         c.  If, after the first 6 months of the fiscal year,
25  additional credits become available pursuant to subparagraph
26  3., the office shall grant the tax credits by first granting
27  to those who received a pro rata reduction up to the full
28  amount of their request and, if there are remaining credits,
29  granting credits to those who applied on or after the 11th
30  business day of the state fiscal year on a first-come,
31  first-served basis.
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 1         3.5.  If, during the first 10 business days of the
 2  state fiscal year, eligible tax credit applications for
 3  projects other than those that provide homeownership
 4  opportunities for low-income or very-low-income households as
 5  defined in s. 420.9071(19) and (28) are received for less than
 6  the available annual tax credits available for those projects
 7  reserved under subparagraph 3., the office shall grant tax
 8  credits for those applications and shall grant remaining tax
 9  credits on a first-come, first-served basis for any subsequent
10  eligible applications received before the end of the first 6
11  months of the state fiscal year. If, during the first 10
12  business days of the state fiscal year, eligible tax credit
13  applications for projects other than those that provide
14  homeownership opportunities for low-income or very-low-income
15  households as defined in s. 420.9071(19) and (28) are received
16  for more than the available annual tax credits available for
17  those projects reserved under subparagraph 3., the office
18  shall grant the tax credits for such applications on a pro
19  rata basis. If, after the first 6 months of the fiscal year,
20  additional credits become available under subparagraph 2., the
21  office shall grant the tax credits by first granting to those
22  who received a pro rata reduction up to the full amount of
23  their request and, if there are remaining credits, granting
24  credits to those who applied on or after the 11th business day
25  of the state fiscal year on a first-come, first-served basis.
26         (c)  The project must be undertaken by an "eligible
27  sponsor," defined here as:
28         1.  A community action program;
29         2.  A nonprofit community-based development
30  organization whose mission is the provision of housing for
31  low-income or very-low-income households or increasing
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 1  entrepreneurial and job-development opportunities for
 2  low-income persons;
 3         3.  A neighborhood housing services corporation;
 4         4.  A local housing authority, created pursuant to
 5  chapter 421;
 6         5.  A community redevelopment agency, created pursuant
 7  to s. 163.356;
 8         6.  The Florida Industrial Development Corporation;
 9         7.  An historic preservation district agency or
10  organization;
11         8.  A regional workforce board;
12         9.  A direct-support organization as provided in s.
13  1009.983;
14         10.  An enterprise zone development agency created
15  pursuant to s. 290.0056;
16         11.  A community-based organization incorporated under
17  chapter 617 which is recognized as educational, charitable, or
18  scientific pursuant to s. 501(c)(3) of the Internal Revenue
19  Code and whose bylaws and articles of incorporation include
20  affordable housing, economic development, or community
21  development as the primary mission of the corporation;
22         12.  Units of local government;
23         13.  Units of state government; or
24         14.  Such other agency as the Office of Tourism, Trade,
25  and Economic Development may, from time to time, designate by
26  rule.
27  
28  In no event shall a contributing business firm have a
29  financial interest in the eligible sponsor.
30         (d)  The project shall be located in an area designated
31  as an enterprise zone or a Front Porch Florida Community
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 1  pursuant to s. 20.18(6). Any project designed to construct or
 2  rehabilitate housing for low-income or very-low-income
 3  households as defined in s. 420.9071(19) and (28) is exempt
 4  from the area requirement of this paragraph. This section does
 5  not preclude projects that propose to construct or
 6  rehabilitate housing for low-income or very-low-income
 7  households on scattered sites. Any project designed to provide
 8  increased access to high-speed broadband capabilities which
 9  includes coverage of a rural enterprise zone may locate the
10  project's infrastructure in any area of a rural county.
11         Section 3.  Subsections (1) and (2) of section
12  624.5105, Florida Statutes, are amended to read:
13         624.5105  Community contribution tax credit;
14  authorization; limitations; eligibility and application
15  requirements; administration; definitions; expiration.--
16         (1)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
17         (a)  There shall be allowed a credit of 50 percent of a
18  community contribution against any tax due for a calendar year
19  under s. 624.509 or s. 624.510.
20         (b)  No insurer shall receive more than $200,000 in
21  annual tax credits for all approved community contributions
22  made in any one year.
23         (c)  The total amount of tax credit which may be
24  granted for all programs approved under this section and ss.
25  212.08(5)(q) and 220.183 is $8 $12 million annually for
26  projects that provide homeownership opportunities for
27  low-income or very-low-income households as defined in s.
28  420.9071(19) and (28), and $4 million annually for all other
29  projects.
30         (d)  Each proposal for the granting of such tax credit
31  requires the prior approval of the director.
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 1         (e)  If the credit granted pursuant to this section is
 2  not fully used in any one year because of insufficient tax
 3  liability on the part of the insurer, the unused amount may be
 4  carried forward for a period not to exceed 5 years. The
 5  carryover credit may be used in a subsequent year when the tax
 6  imposed by s. 624.509 or s. 624.510 for such year exceeds the
 7  credit under this section for such year.
 8         (f)  An insurer that claims a credit against
 9  premium-tax liability earned by making a community
10  contribution under this section need not pay any additional
11  retaliatory tax levied under s. 624.5091 as a result of
12  claiming such a credit. Section 624.5091 does not limit such a
13  credit in any manner.
14         (2)  ELIGIBILITY REQUIREMENTS.--
15         (a)  Each community contribution by an insurer must be
16  in a form specified in subsection (5).
17         (b)  Each community contribution must be reserved
18  exclusively for use in a project as defined in s.
19  220.03(1)(t).
20         (c)  The project must be undertaken by an "eligible
21  sponsor," as defined in s. 220.183(2)(c). In no event shall a
22  contributing insurer have a financial interest in the eligible
23  sponsor.
24         (d)  The project shall be located in an area designated
25  as an enterprise zone or a Front Porch Community pursuant to
26  s. 20.18(6). Any project designed to construct or rehabilitate
27  housing for low-income or very-low-income households as
28  defined in s. 420.9071(19) and (28) is exempt from the area
29  requirement of this paragraph.
30         (e)1.  For the first 6 months of the fiscal year, the
31  Office of Tourism, Trade, and Economic Development shall
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 1  reserve 80 percent of the first $10 million in available
 2  annual tax credits, and 70 percent of any available annual tax
 3  credits in excess of $10 million, for donations made to
 4  eligible sponsors for projects that provide homeownership
 5  opportunities for low-income or very-low-income households as
 6  defined in s. 420.9071(19) and (28). If any such reserved
 7  annual tax credits remain after the first 6 months of the
 8  fiscal year, the office may approve the balance of these
 9  available credits for donations made to eligible sponsors for
10  projects other than those that provide homeownership
11  opportunities for low-income or very-low-income households.
12         2.  For the first 6 months of the fiscal year, the
13  office shall reserve 20 percent of the first $10 million in
14  available annual tax credits, and 30 percent of any available
15  annual tax credits in excess of $10 million, for donations
16  made to eligible sponsors for projects other than those that
17  provide homeownership opportunities for low-income or
18  very-low-income households as defined in s. 420.9071(19) and
19  (28). If any reserved annual tax credits remain after the
20  first 6 months of the fiscal year, the office may approve the
21  balance of these available credits for donations made to
22  eligible sponsors for projects that provide homeownership
23  opportunities for low-income or very-low-income households.
24         1.3.  If, during the first 10 business days of the
25  state fiscal year, eligible tax credit applications for
26  projects that provide homeownership opportunities for
27  low-income or very-low-income households as defined in s.
28  420.9071(19) and (28) are received for less than the available
29  annual tax credits available for those projects reserved under
30  subparagraph 1., the office shall grant tax credits for those
31  applications and shall grant remaining tax credits on a
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 1  first-come, first-served basis for any subsequent eligible
 2  applications received before the end of the first 6 months of
 3  the state fiscal year.  If, during the first 10 business days
 4  of the state fiscal year, eligible tax credit applications for
 5  projects that provide homeownership opportunities for
 6  low-income or very-low-income households as defined in s.
 7  420.9071(19) and (28) are received for more than the available
 8  annual tax credits available for those projects reserved under
 9  subparagraph 1., the office shall grant the tax credits for
10  the applications as follows:
11         a.  If tax credit applications submitted for approved
12  projects of an eligible sponsor do not exceed $200,000 in
13  total, the credits shall be granted in full if the tax credit
14  applications are approved, subject to subparagraph 1.
15         b.  If tax credit applications submitted for approved
16  projects of an eligible sponsor exceed $200,000 in total, the
17  amount of tax credits granted under sub-subparagraph a. shall
18  be subtracted from the amount of available tax credits under
19  subparagraph 1., and the remaining credits shall be granted to
20  each approved tax credit application on a pro rata basis.
21         c.  If, after the first 6 months of the fiscal year,
22  additional credits become available under subparagraph 2., the
23  office shall grant the tax credits by first granting to those
24  who received a pro rata reduction up to the full amount of
25  their request and, if there are remaining credits, granting
26  credits to those who applied on or after the 11th business day
27  of the state fiscal year on a first-come, first-served basis.
28         2.4.  If, during the first 10 business days of the
29  state fiscal year, eligible tax credit applications for
30  projects other than those that provide homeownership
31  opportunities for low-income or very-low-income households as
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 1  defined in s. 420.9071(19) and (28) are received for less than
 2  the available annual tax credits available for those projects
 3  reserved under subparagraph 2., the office shall grant tax
 4  credits for those applications and shall grant remaining tax
 5  credits on a first-come, first-served basis for any subsequent
 6  eligible applications received before the end of the first 6
 7  months of the state fiscal year. If, during the first 10
 8  business days of the state fiscal year, eligible tax credit
 9  applications for projects other than those that provide
10  homeownership opportunities for low-income or very-low-income
11  households as defined in s. 420.9071(19) and (28) are received
12  for more than the available annual tax credits available for
13  those projects reserved under subparagraph 2., the office
14  shall grant the tax credits for those the applications on a
15  pro rata basis. If, after the first 6 months of the fiscal
16  year, additional credits become available under subparagraph
17  1., the office shall grant the tax credits by first granting
18  to those who received a pro rata reduction up to the full
19  amount of their request and, if there are remaining credits,
20  granting credits to those who applied on or after the 11th
21  business day of the state fiscal year on a first-come,
22  first-served basis.
23         Section 4.  This act shall take effect July 1, 2006.
24  
25            *****************************************
26                          SENATE SUMMARY
27    Revises the program that provides tax credits against the
      sales and use tax, the corporate income tax, and the
28    insurance premium tax for a community contribution.
      Provides an annual limitation for each tax-credit program
29    of $8 million for projects that provide homeownership
      opportunities for low-income or very-low-income
30    households and $4 million for all other projects. (See
      bill for details.)
31  
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