HB 0821

CS

CHAMBER ACTION

1	The Economic Development, Trade & Banking Committee recommends
2	the following:
3
4	Council/Committee Substitute
5	Remove the entire bill and insert:
6	A bill to be entitled
7	An act relating to the community contribution tax credit
8	program; amending ss. 212.08, 220.183, and 624.5105, F.S.;
9	increasing the amount of available tax credits against the
10	sales tax, corporate income tax, and insurance premium
11	tax, respectively, for projects under the community
12	contribution tax credit program and providing separate
13	annual limitations for certain projects; revising
14	requirements and procedures for the Office of Tourism,
15	Trade, and Economic Development in granting tax credits
16	under the program; providing an effective date.
17
18	Be It Enacted by the Legislature of the State of Florida:
19
20	Section 1.  Paragraph (q) of subsection (5) of section
21	212.08, Florida Statutes, is amended to read:
22	212.08  Sales, rental, use, consumption, distribution, and
23	storage tax; specified exemptions.--The sale at retail, the
24	rental, the use, the consumption, the distribution, and the
25	storage to be used or consumed in this state of the following
26	are hereby specifically exempt from the tax imposed by this
27	chapter.
28	(5)  EXEMPTIONS; ACCOUNT OF USE.--
29	(q)  Community contribution tax credit for donations.--
30	1.  Authorization.--Beginning July 1, 2001, Persons who are
31	registered with the department under s. 212.18 to collect or
32	remit sales or use tax and who make donations to eligible
33	sponsors are eligible for tax credits against their state sales
34	and use tax liabilities as provided in this paragraph:
35	a.  The credit shall be computed as 50 percent of the
36	person's approved annual community contribution.;
37	b.  The credit shall be granted as a refund against state
38	sales and use taxes reported on returns and remitted in the 12
39	months preceding the date of application to the department for
40	the credit as required in sub-subparagraph 3.c. If the annual
41	credit is not fully used through such refund because of
42	insufficient tax payments during the applicable 12-month period,
43	the unused amount may be included in an application for a refund
44	made pursuant to sub-subparagraph 3.c. in subsequent years
45	against the total tax payments made for such year. Carryover
46	credits may be applied for a 3-year period without regard to any
47	time limitation that would otherwise apply under s. 215.26.;
48	c.  A person may not receive more than $200,000 in annual
49	tax credits for all approved community contributions made in any
50	one year.;
51	d.  All proposals for the granting of the tax credit
52	require the prior approval of the Office of Tourism, Trade, and
53	Economic Development.;
54	e.  The total amount of tax credits which may be granted
55	for all programs approved under this paragraph, s. 220.183, and
56	s. 624.5105 is $10 $12 million annually for projects that
57	provide homeownership opportunities for low-income or very-low-
58	income households as defined in s. 420.9071(19) and (28) and $3
59	million annually for all other projects.; and
60	f.  A person who is eligible to receive the credit provided
61	for in this paragraph, s. 220.183, or s. 624.5105 may receive
62	the credit only under the one section of the person's choice.
63	2.  Eligibility requirements.--
64	a.  A community contribution by a person must be in the
65	following form:
66	(I)  Cash or other liquid assets;
67	(II)  Real property;
68	(III)  Goods or inventory; or
69	(IV)  Other physical resources as identified by the Office
70	of Tourism, Trade, and Economic Development.
71	b.  All community contributions must be reserved
72	exclusively for use in a project. As used in this sub-
73	subparagraph, the term "project" means any activity undertaken
74	by an eligible sponsor which is designed to construct, improve,
75	or substantially rehabilitate housing that is affordable to low-
76	income or very-low-income households as defined in s.
77	420.9071(19) and (28); designed to provide commercial,
78	industrial, or public resources and facilities; or designed to
79	improve entrepreneurial and job-development opportunities for
80	low-income persons. A project may be the investment necessary to
81	increase access to high-speed broadband capability in rural
82	communities with enterprise zones, including projects that
83	result in improvements to communications assets that are owned
84	by a business. A project may include the provision of museum
85	educational programs and materials that are directly related to
86	any project approved between January 1, 1996, and December 31,
87	1999, and located in an enterprise zone designated pursuant to
88	s. 290.0065. This paragraph does not preclude projects that
89	propose to construct or rehabilitate housing for low-income or
90	very-low-income households on scattered sites. With respect to
91	housing, contributions may be used to pay the following eligible
92	low-income and very-low-income housing-related activities:
93	(I)  Project development impact and management fees for
94	low-income or very-low-income housing projects;
95	(II)  Down payment and closing costs for eligible persons,
96	as defined in s. 420.9071(19) and (28);
97	(III)  Administrative costs, including housing counseling
98	and marketing fees, not to exceed 10 percent of the community
99	contribution, directly related to low-income or very-low-income
100	projects; and
101	(IV)  Removal of liens recorded against residential
102	property by municipal, county, or special district local
103	governments when satisfaction of the lien is a necessary
104	precedent to the transfer of the property to an eligible person,
105	as defined in s. 420.9071(19) and (28), for the purpose of
106	promoting home ownership. Contributions for lien removal must be
107	received from a nonrelated third party.
108	c.  The project must be undertaken by an "eligible
109	sponsor," which includes:
110	(I)  A community action program;
111	(II)  A nonprofit community-based development organization
112	whose mission is the provision of housing for low-income or
113	very-low-income households or increasing entrepreneurial and
114	job-development opportunities for low-income persons;
115	(III)  A neighborhood housing services corporation;
116	(IV)  A local housing authority created under chapter 421;
117	(V)  A community redevelopment agency created under s.
118	163.356;
119	(VI)  The Florida Industrial Development Corporation;
120	(VII)  A historic preservation district agency or
121	organization;
122	(VIII)  A regional workforce board;
123	(IX)  A direct-support organization as provided in s.
124	1009.983;
125	(X)  An enterprise zone development agency created under s.
126	290.0056;
127	(XI)  A community-based organization incorporated under
128	chapter 617 which is recognized as educational, charitable, or
129	scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
130	and whose bylaws and articles of incorporation include
131	affordable housing, economic development, or community
132	development as the primary mission of the corporation;
133	(XII)  Units of local government;
134	(XIII)  Units of state government; or
135	(XIV)  Any other agency that the Office of Tourism, Trade,
136	and Economic Development designates by rule.
137
138	In no event may a contributing person have a financial interest
139	in the eligible sponsor.
140	d.  The project must be located in an area designated an
141	enterprise zone or a Front Porch Florida Community pursuant to
142	s. 20.18(6), unless the project increases access to high-speed
143	broadband capability for rural communities with enterprise zones
144	but is physically located outside the designated rural zone
145	boundaries. Any project designed to construct or rehabilitate
146	housing for low-income or very-low-income households as defined
147	in s. 420.0971(19) and (28) is exempt from the area requirement
148	of this sub-subparagraph.
149	e.(I)  For the first 6 months of the fiscal year, the
150	Office of Tourism, Trade, and Economic Development shall reserve
151	80 percent of the first $10 million in available annual tax
152	credits and 70 percent of any available annual tax credits in
153	excess of $10 million for donations made to eligible sponsors
154	for projects that provide homeownership opportunities for low-
155	income or very-low-income households as defined in s.
156	420.9071(19) and (28). If any such reserved annual tax credits
157	remain after the first 6 months of the fiscal year, the office
158	may approve the balance of these available credits for donations
159	made to eligible sponsors for projects other than those that
160	provide homeownership opportunities for low-income or very-low-
161	income households.
162	(II)  For the first 6 months of the fiscal year, the office
163	shall reserve 20 percent of the first $10 million in available
164	annual tax credits and 30 percent of any available annual tax
165	credits in excess of $10 million for donations made to eligible
166	sponsors for projects other than those that provide
167	homeownership opportunities for low-income or very-low-income
168	households as defined in s. 420.9071(19) and (28). If any
169	reserved annual tax credits remain after the first 6 months of
170	the fiscal year, the office may approve the balance of these
171	available credits for donations made to eligible sponsors for
172	projects that provide homeownership opportunities for low-income
173	or very-low-income households.
174	(I)(III)  If, during the first 10 business days of the
175	state fiscal year, eligible tax credit applications for projects
176	that provide homeownership opportunities for low-income or very-
177	low-income households as defined in s. 420.9071(19) and (28) are
178	received for less than the available annual tax credits
179	available for those projects reserved under sub-sub-subparagraph
180	(I), the office shall grant tax credits for those applications
181	and shall grant remaining tax credits on a first-come, first-
182	served basis for any subsequent eligible applications received
183	before the end of the first 6 months of the state fiscal year.
184	If, during the first 10 business days of the state fiscal year,
185	eligible tax credit applications for projects that provide
186	homeownership opportunities for low-income or very-low-income
187	households as defined in s. 420.9071(19) and (28) are received
188	for more than the available annual tax credits available for
189	those projects reserved under sub-sub-subparagraph (I), the
190	office shall grant the tax credits for those the applications as
191	follows:
192	(A)  If tax credit applications submitted for approved
193	projects of an eligible sponsor do not exceed $200,000 in total,
194	the credits shall be granted in full if the tax credit
195	applications are approved, subject to sub-sub-subparagraph (I).
196	(B)  If tax credit applications submitted for approved
197	projects of an eligible sponsor exceed $200,000 in total, the
198	amount of tax credits granted pursuant to sub-sub-sub-
199	subparagraph (A) shall be subtracted from the amount of
200	available tax credits under sub-sub-subparagraph (I), and the
201	remaining credits shall be granted to each approved tax credit
202	application on a pro rata basis.
203	(C)  If, after the first 6 months of the fiscal year,
204	additional credits become available under sub-sub-subparagraph
205	(II), the office shall grant the tax credits by first granting
206	to those who received a pro rata reduction up to the full amount
207	of their request and, if there are remaining credits, granting
208	credits to those who applied on or after the 11th business day
209	of the state fiscal year on a first-come, first-served basis.
210	(II)(IV)  If, during the first 10 business days of the
211	state fiscal year, eligible tax credit applications for projects
212	other than those that provide homeownership opportunities for
213	low-income or very-low-income households as defined in s.
214	420.9071(19) and (28) are received for less than the available
215	annual tax credits available for those projects reserved under
216	sub-sub-subparagraph (II), the office shall grant tax credits
217	for those applications and shall grant remaining tax credits on
218	a first-come, first-served basis for any subsequent eligible
219	applications received before the end of the first 6 months of
220	the state fiscal year. If, during the first 10 business days of
221	the state fiscal year, eligible tax credit applications for
222	projects other than those that provide homeownership
223	opportunities for low-income or very-low-income households as
224	defined in s. 420.9071(19) and (28) are received for more than
225	the available annual tax credits available for those projects
226	reserved under sub-sub-subparagraph (II), the office shall grant
227	the tax credits for those the applications on a pro rata basis.
228	If, after the first 6 months of the fiscal year, additional
229	credits become available under sub-sub-subparagraph (I), the
230	office shall grant the tax credits by first granting to those
231	who received a pro rata reduction up to the full amount of their
232	request and, if there are remaining credits, granting credits to
233	those who applied on or after the 11th business day of the state
234	fiscal year on a first-come, first-served basis.
235	3.  Application requirements.--
236	a.  Any eligible sponsor seeking to participate in this
237	program must submit a proposal to the Office of Tourism, Trade,
238	and Economic Development which sets forth the name of the
239	sponsor, a description of the project, and the area in which the
240	project is located, together with such supporting information as
241	is prescribed by rule. The proposal must also contain a
242	resolution from the local governmental unit in which the project
243	is located certifying that the project is consistent with local
244	plans and regulations.
245	b.  Any person seeking to participate in this program must
246	submit an application for tax credit to the office of Tourism,
247	Trade, and Economic Development which sets forth the name of the
248	sponsor, a description of the project, and the type, value, and
249	purpose of the contribution. The sponsor shall verify the terms
250	of the application and indicate its receipt of the contribution,
251	which verification must be in writing and accompany the
252	application for tax credit. The person must submit a separate
253	tax credit application to the office for each individual
254	contribution that it makes to each individual project.
255	c.  Any person who has received notification from the
256	office of Tourism, Trade, and Economic Development that a tax
257	credit has been approved must apply to the department to receive
258	the refund. Application must be made on the form prescribed for
259	claiming refunds of sales and use taxes and be accompanied by a
260	copy of the notification. A person may submit only one
261	application for refund to the department within any 12-month
262	period.
263	4.  Administration.--
264	a.  The Office of Tourism, Trade, and Economic Development
265	may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary
266	to administer this paragraph, including rules for the approval
267	or disapproval of proposals by a person.
268	b.  The decision of the office of Tourism, Trade, and
269	Economic Development must be in writing, and, if approved, the
270	notification shall state the maximum credit allowable to the
271	person. Upon approval, the office shall transmit a copy of the
272	decision to the Department of Revenue.
273	c.  The office of Tourism, Trade, and Economic Development
274	shall periodically monitor all projects in a manner consistent
275	with available resources to ensure that resources are used in
276	accordance with this paragraph; however, each project must be
277	reviewed at least once every 2 years.
278	d.  The office of Tourism, Trade, and Economic Development
279	shall, in consultation with the Department of Community Affairs,
280	the Florida Housing Finance Corporation, and the statewide and
281	regional housing and financial intermediaries, market the
282	availability of the community contribution tax credit program to
283	community-based organizations.
284	5.  Expiration.--This paragraph expires June 30, 2015;
285	however, any accrued credit carryover that is unused on that
286	date may be used until the expiration of the 3-year carryover
287	period for such credit.
288	Section 2.  Paragraph (c) of subsection (1) and paragraph
289	(b) of subsection (2) of section 220.183, Florida Statutes, are
290	amended to read:
291	220.183  Community contribution tax credit.--
292	(1)  AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
293	CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
294	SPENDING.--
295	(c)  The total amount of tax credit which may be granted
296	for all programs approved under this section, s. 212.08(5)(q),
297	and s. 624.5105 is $10 $12 million annually for projects that
298	provide homeownership opportunities for low-income or very-low-
299	income households as defined in s. 420.9071(19) and (28) and $3
300	million annually for all other projects.
301	(2)  ELIGIBILITY REQUIREMENTS.--
302	(b)1.  All community contributions must be reserved
303	exclusively for use in projects as defined in s. 220.03(1)(t).
304	2.  For the first 6 months of the fiscal year, the Office
305	of Tourism, Trade, and Economic Development shall reserve 80
306	percent of the first $10 million in available annual tax
307	credits, and 70 percent of any available annual tax credits in
308	excess of $10 million, for donations made to eligible sponsors
309	for projects that provide homeownership opportunities for low-
310	income or very-low-income households as defined in s.
311	420.9071(19) and (28). If any reserved annual tax credits remain
312	after the first 6 months of the fiscal year, the office may
313	approve the balance of these available credits for donations
314	made to eligible sponsors for projects other than those that
315	provide homeownership opportunities for low-income or very-low-
316	income households.
317	3.  For the first 6 months of the fiscal year, the office
318	shall reserve 20 percent of the first $10 million in available
319	annual tax credits, and 30 percent of any available annual tax
320	credits in excess of $10 million, for donations made to eligible
321	sponsors for projects other than those that provide
322	homeownership opportunities for low-income or very-low-income
323	households as defined in s. 420.9071(19) and (28). If any
324	reserved annual tax credits remain after the first 6 months of
325	the fiscal year, the office may approve the balance of these
326	available credits for donations made to eligible sponsors for
327	projects that provide homeownership opportunities for low-income
328	or very-low-income households.
329	2.4.  If, during the first 10 business days of the state
330	fiscal year, eligible tax credit applications for projects that
331	provide homeownership opportunities for low-income or very-low-
332	income households as defined in s. 420.9071(19) and (28) are
333	received for less than the available annual tax credits
334	available for those projects reserved under subparagraph 2., the
335	office shall grant tax credits for those applications and shall
336	grant remaining tax credits on a first-come, first-served basis
337	for any subsequent eligible applications received before the end
338	of the first 6 months of the state fiscal year. If, during the
339	first 10 business days of the state fiscal year, eligible tax
340	credit applications for projects that provide homeownership
341	opportunities for low-income or very-low-income households as
342	defined in s. 420.9071(19) and (28) are received for more than
343	the available annual tax credits available for those projects
344	reserved under subparagraph 2., the office shall grant the tax
345	credits for those such applications as follows:
346	a.  If tax credit applications submitted for approved
347	projects of an eligible sponsor do not exceed $200,000 in total,
348	the credit shall be granted in full if the tax credit
349	applications are approved, subject to the provisions of
350	subparagraph 2.
351	b.  If tax credit applications submitted for approved
352	projects of an eligible sponsor exceed $200,000 in total, the
353	amount of tax credits granted under sub-subparagraph a. shall be
354	subtracted from the amount of available tax credits under
355	subparagraph 2., and the remaining credits shall be granted to
356	each approved tax credit application on a pro rata basis.
357	c.  If, after the first 6 months of the fiscal year,
358	additional credits become available pursuant to subparagraph 3.,
359	the office shall grant the tax credits by first granting to
360	those who received a pro rata reduction up to the full amount of
361	their request and, if there are remaining credits, granting
362	credits to those who applied on or after the 11th business day
363	of the state fiscal year on a first-come, first-served basis.
364	3.5.  If, during the first 10 business days of the state
365	fiscal year, eligible tax credit applications for projects other
366	than those that provide homeownership opportunities for low-
367	income or very-low-income households as defined in s.
368	420.9071(19) and (28) are received for less than the available
369	annual tax credits available for those projects reserved under
370	subparagraph 3., the office shall grant tax credits for those
371	applications and shall grant remaining tax credits on a first-
372	come, first-served basis for any subsequent eligible
373	applications received before the end of the first 6 months of
374	the state fiscal year. If, during the first 10 business days of
375	the state fiscal year, eligible tax credit applications for
376	projects other than those that provide homeownership
377	opportunities for low-income or very-low-income households as
378	defined in s. 420.9071(19) and (28) are received for more than
379	the available annual tax credits available for those projects
380	reserved under subparagraph 3., the office shall grant the tax
381	credits for those such applications on a pro rata basis. If,
382	after the first 6 months of the fiscal year, additional credits
383	become available under subparagraph 2., the office shall grant
384	the tax credits by first granting to those who received a pro
385	rata reduction up to the full amount of their request and, if
386	there are remaining credits, granting credits to those who
387	applied on or after the 11th business day of the state fiscal
388	year on a first-come, first-served basis.
389	Section 3.  Paragraph (c) of subsection (1) and paragraph
390	(e) of subsection (2) of section 624.5105, Florida Statutes, are
391	amended to read:
392	624.5105  Community contribution tax credit; authorization;
393	limitations; eligibility and application requirements;
394	administration; definitions; expiration.--
395	(1)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
396	(c)  The total amount of tax credit which may be granted
397	for all programs approved under this section and ss.
398	212.08(5)(q) and 220.183 is $10 $12 million annually for
399	projects that provide homeownership opportunities for low-income
400	or very-low-income households as defined in s. 420.9071(19) and
401	(28) and $3 million annually for all other projects.
402	(2)  ELIGIBILITY REQUIREMENTS.--
403	(e)1.  For the first 6 months of the fiscal year, the
404	Office of Tourism, Trade, and Economic Development shall reserve
405	80 percent of the first $10 million in available annual tax
406	credits, and 70 percent of any available annual tax credits in
407	excess of $10 million, for donations made to eligible sponsors
408	for projects that provide homeownership opportunities for low-
409	income or very-low-income households as defined in s.
410	420.9071(19) and (28). If any such reserved annual tax credits
411	remain after the first 6 months of the fiscal year, the office
412	may approve the balance of these available credits for donations
413	made to eligible sponsors for projects other than those that
414	provide homeownership opportunities for low-income or very-low-
415	income households.
416	2.  For the first 6 months of the fiscal year, the office
417	shall reserve 20 percent of the first $10 million in available
418	annual tax credits, and 30 percent of any available annual tax
419	credits in excess of $10 million, for donations made to eligible
420	sponsors for projects other than those that provide
421	homeownership opportunities for low-income or very-low-income
422	households as defined in s. 420.9071(19) and (28). If any
423	reserved annual tax credits remain after the first 6 months of
424	the fiscal year, the office may approve the balance of these
425	available credits for donations made to eligible sponsors for
426	projects that provide homeownership opportunities for low-income
427	or very-low-income households.
428	1.3.  If, during the first 10 business days of the state
429	fiscal year, eligible tax credit applications for projects that
430	provide homeownership opportunities for low-income or very-low-
431	income households as defined in s. 420.9071(19) and (28) are
432	received for less than the available annual tax credits
433	available for those projects reserved under subparagraph 1., the
434	office shall grant tax credits for those applications and shall
435	grant remaining tax credits on a first-come, first-served basis
436	for any subsequent eligible applications received before the end
437	of the first 6 months of the state fiscal year. If, during the
438	first 10 business days of the state fiscal year, eligible tax
439	credit applications for projects that provide homeownership
440	opportunities for low-income or very-low-income households as
441	defined in s. 420.9071(19) and (28) are received for more than
442	the available annual tax credits available for those projects
443	reserved under subparagraph 1., the office shall grant the tax
444	credits for those the applications as follows:
445	a.  If tax credit applications submitted for approved
446	projects of an eligible sponsor do not exceed $200,000 in total,
447	the credits shall be granted in full if the tax credit
448	applications are approved, subject to subparagraph 1.
449	b.  If tax credit applications submitted for approved
450	projects of an eligible sponsor exceed $200,000 in total, the
451	amount of tax credits granted under sub-subparagraph a. shall be
452	subtracted from the amount of available tax credits under
453	subparagraph 1., and the remaining credits shall be granted to
454	each approved tax credit application on a pro rata basis.
455	c.  If, after the first 6 months of the fiscal year,
456	additional credits become available under subparagraph 2., the
457	office shall grant the tax credits by first granting to those
458	who received a pro rata reduction up to the full amount of their
459	request and, if there are remaining credits, granting credits to
460	those who applied on or after the 11th business day of the state
461	fiscal year on a first-come, first-served basis.
462	2.4.  If, during the first 10 business days of the state
463	fiscal year, eligible tax credit applications for projects other
464	than those that provide homeownership opportunities for low-
465	income or very-low-income households as defined in s.
466	420.9071(19) and (28) are received for less than the available
467	annual tax credits available for those projects reserved under
468	subparagraph 2., the office shall grant tax credits for those
469	applications and shall grant remaining tax credits on a first-
470	come, first-served basis for any subsequent eligible
471	applications received before the end of the first 6 months of
472	the state fiscal year. If, during the first 10 business days of
473	the state fiscal year, eligible tax credit applications for
474	projects other than those that provide homeownership
475	opportunities for low-income or very-low-income households as
476	defined in s. 420.9071(19) and (28) are received for more than
477	the available annual tax credits available for those projects
478	reserved under subparagraph 2., the office shall grant the tax
479	credits for those the applications on a pro rata basis. If,
480	after the first 6 months of the fiscal year, additional credits
481	become available under subparagraph 1., the office shall grant
482	the tax credits by first granting to those who received a pro
483	rata reduction up to the full amount of their request and, if
484	there are remaining credits, granting credits to those who
485	applied on or after the 11th business day of the state fiscal
486	year on a first-come, first-served basis.
487	Section 4.  This act shall take effect July 1, 2006.

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