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

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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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 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

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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

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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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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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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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 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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 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

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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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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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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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    Florida Senate - 2006   (PROPOSED COMMITTEE BILL)     SPB 7036
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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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