HB 0821

CS

CHAMBER ACTION

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

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