HB 821

1	A bill to be entitled
2	An act relating to the community contribution tax credit
3	program; amending ss. 212.08, 220.183, and 624.5105, F.S.;
4	increasing the amount of available tax credits against the
5	sales tax, corporate income tax, and insurance premium
6	tax, respectively, for projects under the community
7	contribution tax credit program and providing separate
8	annual limitations for certain projects; revising
9	requirements and procedures for the Office of Tourism,
10	Trade, and Economic Development in granting tax credits
11	under the program; 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, and
18	storage tax; specified exemptions.--The sale at retail, the
19	rental, the use, the consumption, the distribution, and the
20	storage to be used or consumed in this state of the following
21	are hereby specifically exempt from the tax imposed by this
22	chapter.
23	(5)  EXEMPTIONS; ACCOUNT OF USE.--
24	(q)  Community contribution tax credit for donations.--
25	1.  Authorization.--Beginning July 1, 2001, Persons who are
26	registered with the department under s. 212.18 to collect or
27	remit sales or use tax and who make donations to eligible
28	sponsors are eligible for tax credits against their state sales
29	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.;
32	b.  The credit shall be granted as a refund against state
33	sales and use taxes reported on returns and remitted in the 12
34	months preceding the date of application to the department for
35	the credit as required in sub-subparagraph 3.c. If the annual
36	credit is not fully used through such refund because of
37	insufficient tax payments during the applicable 12-month period,
38	the unused amount may be included in an application for a refund
39	made pursuant to sub-subparagraph 3.c. in subsequent years
40	against the total tax payments made for such year. Carryover
41	credits may be applied for a 3-year period without regard to any
42	time limitation that would otherwise apply under s. 215.26.;
43	c.  A person may not receive more than $200,000 in annual
44	tax credits for all approved community contributions made in any
45	one year.;
46	d.  All proposals for the granting of the tax credit
47	require the prior approval of the Office of Tourism, Trade, and
48	Economic Development.;
49	e.  The total amount of tax credits which may be granted
50	for all programs approved under this paragraph, s. 220.183, and
51	s. 624.5105 is $10.5 $12 million annually for projects that
52	provide homeownership opportunities for low-income or very-low-
53	income households as defined in s. 420.9071(19) and (28) and
54	$3.5 million annually for all other projects.; and
55	f.  A person who is eligible to receive the credit provided
56	for in this paragraph, s. 220.183, or s. 624.5105 may receive
57	the credit only under the one section of the person's choice.
58	2.  Eligibility requirements.--
59	a.  A community contribution by a person must be in the
60	following form:
61	(I)  Cash or other liquid assets;
62	(II)  Real property;
63	(III)  Goods or inventory; or
64	(IV)  Other physical resources as identified by the Office
65	of Tourism, Trade, and Economic Development.
66	b.  All community contributions must be reserved
67	exclusively for use in a project. As used in this sub-
68	subparagraph, the term "project" means any activity undertaken
69	by an eligible sponsor which is designed to construct, improve,
70	or substantially rehabilitate housing that is affordable to low-
71	income or very-low-income households as defined in s.
72	420.9071(19) and (28); designed to provide commercial,
73	industrial, or public resources and facilities; or designed to
74	improve entrepreneurial and job-development opportunities for
75	low-income persons. A project may be the investment necessary to
76	increase access to high-speed broadband capability in rural
77	communities with enterprise zones, including projects that
78	result in improvements to communications assets that are owned
79	by a business. A project may include the provision of museum
80	educational programs and materials that are directly related to
81	any project approved between January 1, 1996, and December 31,
82	1999, and located in an enterprise zone designated pursuant to
83	s. 290.0065. This paragraph does not preclude projects that
84	propose to construct or rehabilitate housing for low-income or
85	very-low-income households on scattered sites. With respect to
86	housing, contributions may be used to pay the following eligible
87	low-income and very-low-income housing-related activities:
88	(I)  Project development impact and management fees for
89	low-income or very-low-income housing projects;
90	(II)  Down payment and closing costs for eligible persons,
91	as defined in s. 420.9071(19) and (28);
92	(III)  Administrative costs, including housing counseling
93	and marketing fees, not to exceed 10 percent of the community
94	contribution, directly related to low-income or very-low-income
95	projects; and
96	(IV)  Removal of liens recorded against residential
97	property by municipal, county, or special district local
98	governments when satisfaction of the lien is a necessary
99	precedent to the transfer of the property to an eligible person,
100	as defined in s. 420.9071(19) and (28), for the purpose of
101	promoting home ownership. Contributions for lien removal must be
102	received from a nonrelated third party.
103	c.  The project must be undertaken by an "eligible
104	sponsor," which includes:
105	(I)  A community action program;
106	(II)  A nonprofit community-based development organization
107	whose mission is the provision of housing for low-income or
108	very-low-income households or increasing entrepreneurial and
109	job-development opportunities for low-income persons;
110	(III)  A neighborhood housing services corporation;
111	(IV)  A local housing authority created under chapter 421;
112	(V)  A community redevelopment agency created under s.
113	163.356;
114	(VI)  The Florida Industrial Development Corporation;
115	(VII)  A historic preservation district agency or
116	organization;
117	(VIII)  A regional workforce board;
118	(IX)  A direct-support organization as provided in s.
119	1009.983;
120	(X)  An enterprise zone development agency created under s.
121	290.0056;
122	(XI)  A community-based organization incorporated under
123	chapter 617 which is recognized as educational, charitable, or
124	scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
125	and whose bylaws and articles of incorporation include
126	affordable housing, economic development, or community
127	development as the primary mission of the corporation;
128	(XII)  Units of local government;
129	(XIII)  Units of state government; or
130	(XIV)  Any other agency that the Office of Tourism, Trade,
131	and Economic Development designates by rule.
132
133	In no event may a contributing person have a financial interest
134	in the eligible sponsor.
135	d.  The project must be located in an area designated an
136	enterprise zone or a Front Porch Florida Community pursuant to
137	s. 20.18(6), unless the project increases access to high-speed
138	broadband capability for rural communities with enterprise zones
139	but is physically located outside the designated rural zone
140	boundaries. Any project designed to construct or rehabilitate
141	housing for low-income or very-low-income households as defined
142	in s. 420.0971(19) and (28) is exempt from the area requirement
143	of this sub-subparagraph.
144	e.(I)  For the first 6 months of the fiscal year, the
145	Office of Tourism, Trade, and Economic Development shall reserve
146	80 percent of the first $10 million in available annual tax
147	credits and 70 percent of any available annual tax credits in
148	excess of $10 million for donations made to eligible sponsors
149	for projects that provide homeownership opportunities for low-
150	income or very-low-income households as defined in s.
151	420.9071(19) and (28). If any such reserved annual tax credits
152	remain after the first 6 months of the fiscal year, the office
153	may approve the balance of these available credits for donations
154	made to eligible sponsors for projects other than those that
155	provide homeownership opportunities for low-income or very-low-
156	income households.
157	(II)  For the first 6 months of the fiscal year, the office
158	shall reserve 20 percent of the first $10 million in available
159	annual tax credits and 30 percent of any available annual tax
160	credits in excess of $10 million for donations made to eligible
161	sponsors for projects other than those that provide
162	homeownership opportunities for low-income or very-low-income
163	households as defined in s. 420.9071(19) and (28). If any
164	reserved annual tax credits remain after the first 6 months of
165	the fiscal year, the office may approve the balance of these
166	available credits for donations made to eligible sponsors for
167	projects that provide homeownership opportunities for low-income
168	or very-low-income households.
169	(I)(III)  If, during the first 10 business days of the
170	state fiscal year, eligible tax credit applications for projects
171	that provide homeownership opportunities for low-income or very-
172	low-income households as defined in s. 420.9071(19) and (28) are
173	received for less than the available annual tax credits
174	available for those projects reserved under sub-sub-subparagraph
175	(I), the Office of Tourism, Trade, and Economic Development
176	shall grant tax credits for those applications and shall grant
177	remaining tax credits on a first-come, first-served basis for
178	any subsequent eligible applications received before the end of
179	the first 6 months of the state fiscal year. If, during the
180	first 10 business days of the state fiscal year, eligible tax
181	credit applications for projects that provide homeownership
182	opportunities for low-income or very-low-income households as
183	defined in s. 420.9071(19) and (28) are received for more than
184	the available annual tax credits available for those projects
185	reserved under sub-sub-subparagraph (I), the office shall grant
186	the tax credits for those the applications as follows:
187	(A)  If tax credit applications submitted for approved
188	projects of an eligible sponsor do not exceed $200,000 in total,
189	the credits shall be granted in full if the tax credit
190	applications are approved, subject to sub-sub-subparagraph (I).
191	(B)  If tax credit applications submitted for approved
192	projects of an eligible sponsor exceed $200,000 in total, the
193	amount of tax credits granted pursuant to sub-sub-sub-
194	subparagraph (A) shall be subtracted from the amount of
195	available tax credits under sub-sub-subparagraph (I), and the
196	remaining credits shall be granted to each approved tax credit
197	application on a pro rata basis.
198	(C)  If, after the first 6 months of the fiscal year,
199	additional credits become available under sub-sub-subparagraph
200	(II), the office shall grant the tax credits by first granting
201	to those who received a pro rata reduction up to the full amount
202	of their request and, if there are remaining credits, granting
203	credits to those who applied on or after the 11th business day
204	of the state fiscal year on a first-come, first-served basis.
205	(II)(IV)  If, during the first 10 business days of the
206	state fiscal year, eligible tax credit applications for projects
207	other than those that provide homeownership opportunities for
208	low-income or very-low-income households as defined in s.
209	420.9071(19) and (28) are received for less than the available
210	annual tax credits available for those projects reserved under
211	sub-sub-subparagraph (II), the office shall grant tax credits
212	for those applications and shall grant remaining tax credits on
213	a first-come, first-served basis for any subsequent eligible
214	applications received before the end of the first 6 months of
215	the state fiscal year. If, during the first 10 business days of
216	the state fiscal year, eligible tax credit applications for
217	projects other than those that provide homeownership
218	opportunities for low-income or very-low-income households as
219	defined in s. 420.9071(19) and (28) are received for more than
220	the available annual tax credits available for those projects
221	reserved under sub-sub-subparagraph (II), the office shall grant
222	the tax credits for those the applications on a pro rata basis.
223	If, after the first 6 months of the fiscal year, additional
224	credits become available under sub-sub-subparagraph (I), the
225	office shall grant the tax credits by first granting to those
226	who received a pro rata reduction up to the full amount of their
227	request and, if there are remaining credits, granting credits to
228	those who applied on or after the 11th business day of the state
229	fiscal year on a first-come, first-served basis.
230	3.  Application requirements.--
231	a.  Any eligible sponsor seeking to participate in this
232	program must submit a proposal to the Office of Tourism, Trade,
233	and Economic Development which sets forth the name of the
234	sponsor, a description of the project, and the area in which the
235	project is located, together with such supporting information as
236	is prescribed by rule. The proposal must also contain a
237	resolution from the local governmental unit in which the project
238	is located certifying that the project is consistent with local
239	plans and regulations.
240	b.  Any person seeking to participate in this program must
241	submit an application for tax credit to the office of Tourism,
242	Trade, and Economic Development which sets forth the name of the
243	sponsor, a description of the project, and the type, value, and
244	purpose of the contribution. The sponsor shall verify the terms
245	of the application and indicate its receipt of the contribution,
246	which verification must be in writing and accompany the
247	application for tax credit. The person must submit a separate
248	tax credit application to the office for each individual
249	contribution that it makes to each individual project.
250	c.  Any person who has received notification from the
251	office of Tourism, Trade, and Economic Development that a tax
252	credit has been approved must apply to the department to receive
253	the refund. Application must be made on the form prescribed for
254	claiming refunds of sales and use taxes and be accompanied by a
255	copy of the notification. A person may submit only one
256	application for refund to the department within any 12-month
257	period.
258	4.  Administration.--
259	a.  The Office of Tourism, Trade, and Economic Development
260	may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary
261	to administer this paragraph, including rules for the approval
262	or disapproval of proposals by a person.
263	b.  The decision of the office of Tourism, Trade, and
264	Economic Development must be in writing, and, if approved, the
265	notification shall state the maximum credit allowable to the
266	person. Upon approval, the office shall transmit a copy of the
267	decision to the Department of Revenue.
268	c.  The office of Tourism, Trade, and Economic Development
269	shall periodically monitor all projects in a manner consistent
270	with available resources to ensure that resources are used in
271	accordance with this paragraph; however, each project must be
272	reviewed at least once every 2 years.
273	d.  The office of Tourism, Trade, and Economic Development
274	shall, in consultation with the Department of Community Affairs,
275	the Florida Housing Finance Corporation, and the statewide and
276	regional housing and financial intermediaries, market the
277	availability of the community contribution tax credit program to
278	community-based organizations.
279	5.  Expiration.--This paragraph expires June 30, 2015;
280	however, any accrued credit carryover that is unused on that
281	date may be used until the expiration of the 3-year carryover
282	period for such credit.
283	Section 2.  Paragraph (c) of subsection (1) and paragraph
284	(b) of subsection (2) of section 220.183, Florida Statutes, are
285	amended to read:
286	220.183  Community contribution tax credit.--
287	(1)  AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
288	CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
289	SPENDING.--
290	(c)  The total amount of tax credit which may be granted
291	for all programs approved under this section, s. 212.08(5)(q),
292	and s. 624.5105 is $10.5 $12 million annually for projects that
293	provide homeownership opportunities for low-income or very-low-
294	income households as defined in s. 420.9071(19) and (28) and
295	$3.5 million annually for all other projects.
296	(2)  ELIGIBILITY REQUIREMENTS.--
297	(b)1.  All community contributions must be reserved
298	exclusively for use in projects as defined in s. 220.03(1)(t).
299	2.  For the first 6 months of the fiscal year, the Office
300	of Tourism, Trade, and Economic Development shall reserve 80
301	percent of the first $10 million in available annual tax
302	credits, and 70 percent of any available annual tax credits in
303	excess of $10 million, for donations made to eligible sponsors
304	for projects that provide homeownership opportunities for low-
305	income or very-low-income households as defined in s.
306	420.9071(19) and (28). If any reserved annual tax credits remain
307	after the first 6 months of the fiscal year, the office may
308	approve the balance of these available credits for donations
309	made to eligible sponsors for projects other than those that
310	provide homeownership opportunities for low-income or very-low-
311	income households.
312	3.  For the first 6 months of the fiscal year, the office
313	shall reserve 20 percent of the first $10 million in available
314	annual tax credits, and 30 percent of any available annual tax
315	credits in excess of $10 million, for donations made to eligible
316	sponsors for projects other than those that provide
317	homeownership opportunities for low-income or very-low-income
318	households as defined in s. 420.9071(19) and (28). If any
319	reserved annual tax credits remain after the first 6 months of
320	the fiscal year, the office may approve the balance of these
321	available credits for donations made to eligible sponsors for
322	projects that provide homeownership opportunities for low-income
323	or very-low-income households.
324	2.4.  If, during the first 10 business days of the state
325	fiscal year, eligible tax credit applications for projects that
326	provide homeownership opportunities for low-income or very-low-
327	income households as defined in s. 420.9071(19) and (28) are
328	received for less than the available annual tax credits
329	available for those projects reserved under subparagraph 2., the
330	Office of Tourism, Trade, and Economic Development shall grant
331	tax credits for those applications and shall grant remaining tax
332	credits on a first-come, first-served basis for any subsequent
333	eligible applications received before the end of the first 6
334	months of the state fiscal year. If, during the first 10
335	business days of the state fiscal year, eligible tax credit
336	applications for projects that provide homeownership
337	opportunities for low-income or very-low-income households as
338	defined in s. 420.9071(19) and (28) are received for more than
339	the available annual tax credits available for those projects
340	reserved under subparagraph 2., the office shall grant the tax
341	credits for those such applications as follows:
342	a.  If tax credit applications submitted for approved
343	projects of an eligible sponsor do not exceed $200,000 in total,
344	the credit shall be granted in full if the tax credit
345	applications are approved, subject to the provisions of
346	subparagraph 2.
347	b.  If tax credit applications submitted for approved
348	projects of an eligible sponsor exceed $200,000 in total, the
349	amount of tax credits granted under sub-subparagraph a. shall be
350	subtracted from the amount of available tax credits under
351	subparagraph 2., and the remaining credits shall be granted to
352	each approved tax credit application on a pro rata basis.
353	c.  If, after the first 6 months of the fiscal year,
354	additional credits become available pursuant to subparagraph 3.,
355	the office shall grant the tax credits by first granting to
356	those who received a pro rata reduction up to the full amount of
357	their request and, if there are remaining credits, granting
358	credits to those who applied on or after the 11th business day
359	of the state fiscal year on a first-come, first-served basis.
360	3.5.  If, during the first 10 business days of the state
361	fiscal year, eligible tax credit applications for projects other
362	than those that provide homeownership opportunities for low-
363	income or very-low-income households as defined in s.
364	420.9071(19) and (28) are received for less than the available
365	annual tax credits available for those projects reserved under
366	subparagraph 3., the office shall grant tax credits for those
367	applications and shall grant remaining tax credits on a first-
368	come, first-served basis for any subsequent eligible
369	applications received before the end of the first 6 months of
370	the state fiscal year. If, during the first 10 business days of
371	the state fiscal year, eligible tax credit applications for
372	projects other than those that provide homeownership
373	opportunities for low-income or very-low-income households as
374	defined in s. 420.9071(19) and (28) are received for more than
375	the available annual tax credits available for those projects
376	reserved under subparagraph 3., the office shall grant the tax
377	credits for those such applications on a pro rata basis. If,
378	after the first 6 months of the fiscal year, additional credits
379	become available under subparagraph 2., the office shall grant
380	the tax credits by first granting to those who received a pro
381	rata reduction up to the full amount of their request and, if
382	there are remaining credits, granting credits to those who
383	applied on or after the 11th business day of the state fiscal
384	year on a first-come, first-served basis.
385	Section 3.  Paragraph (c) of subsection (1) and paragraph
386	(e) of subsection (2) of section 624.5105, Florida Statutes, are
387	amended to read:
388	624.5105  Community contribution tax credit; authorization;
389	limitations; eligibility and application requirements;
390	administration; definitions; expiration.--
391	(1)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
392	(c)  The total amount of tax credit which may be granted
393	for all programs approved under this section and ss.
394	212.08(5)(q) and 220.183 is $10.5 $12 million annually for
395	projects that provide homeownership opportunities for low-income
396	or very-low-income households as defined in s. 420.9071(19) and
397	(28) and $3.5 million annually for all other projects.
398	(2)  ELIGIBILITY REQUIREMENTS.--
399	(e)1.  For the first 6 months of the fiscal year, the
400	Office of Tourism, Trade, and Economic Development shall reserve
401	80 percent of the first $10 million in available annual tax
402	credits, and 70 percent of any available annual tax credits in
403	excess of $10 million, for donations made to eligible sponsors
404	for projects that provide homeownership opportunities for low-
405	income or very-low-income households as defined in s.
406	420.9071(19) and (28). If any such reserved annual tax credits
407	remain after the first 6 months of the fiscal year, the office
408	may approve the balance of these available credits for donations
409	made to eligible sponsors for projects other than those that
410	provide homeownership opportunities for low-income or very-low-
411	income households.
412	2.  For the first 6 months of the fiscal year, the office
413	shall reserve 20 percent of the first $10 million in available
414	annual tax credits, and 30 percent of any available annual tax
415	credits in excess of $10 million, for donations made to eligible
416	sponsors for projects other than those that provide
417	homeownership opportunities for low-income or very-low-income
418	households as defined in s. 420.9071(19) and (28). If any
419	reserved annual tax credits remain after the first 6 months of
420	the fiscal year, the office may approve the balance of these
421	available credits for donations made to eligible sponsors for
422	projects that provide homeownership opportunities for low-income
423	or very-low-income households.
424	1.3.  If, during the first 10 business days of the state
425	fiscal year, eligible tax credit applications for projects that
426	provide homeownership opportunities for low-income or very-low-
427	income households as defined in s. 420.9071(19) and (28) are
428	received for less than the available annual tax credits
429	available for those projects reserved under subparagraph 1., the
430	Office of Tourism, Trade, and Economic Development shall grant
431	tax credits for those applications and shall grant remaining tax
432	credits on a first-come, first-served basis for any subsequent
433	eligible applications received before the end of the first 6
434	months of the state fiscal year. If, during the first 10
435	business days of the state fiscal year, eligible tax credit
436	applications for projects that provide homeownership
437	opportunities for low-income or very-low-income households as
438	defined in s. 420.9071(19) and (28) are received for more than
439	the available annual tax credits available for those projects
440	reserved under subparagraph 1., the office shall grant the tax
441	credits for those the applications as follows:
442	a.  If tax credit applications submitted for approved
443	projects of an eligible sponsor do not exceed $200,000 in total,
444	the credits shall be granted in full if the tax credit
445	applications are approved, subject to subparagraph 1.
446	b.  If tax credit applications submitted for approved
447	projects of an eligible sponsor exceed $200,000 in total, the
448	amount of tax credits granted under sub-subparagraph a. shall be
449	subtracted from the amount of available tax credits under
450	subparagraph 1., and the remaining credits shall be granted to
451	each approved tax credit application on a pro rata basis.
452	c.  If, after the first 6 months of the fiscal year,
453	additional credits become available under subparagraph 2., the
454	office shall grant the tax credits by first granting to those
455	who received a pro rata reduction up to the full amount of their
456	request and, if there are remaining credits, granting credits to
457	those who applied on or after the 11th business day of the state
458	fiscal year on a first-come, first-served basis.
459	2.4.  If, during the first 10 business days of the state
460	fiscal year, eligible tax credit applications for projects other
461	than those that provide homeownership opportunities for low-
462	income or very-low-income households as defined in s.
463	420.9071(19) and (28) are received for less than the available
464	annual tax credits available for those projects reserved under
465	subparagraph 2., the office shall grant tax credits for those
466	applications and shall grant remaining tax credits on a first-
467	come, first-served basis for any subsequent eligible
468	applications received before the end of the first 6 months of
469	the state fiscal year. If, during the first 10 business days of
470	the state fiscal year, eligible tax credit applications for
471	projects other than those that provide homeownership
472	opportunities for low-income or very-low-income households as
473	defined in s. 420.9071(19) and (28) are received for more than
474	the available annual tax credits available for those projects
475	reserved under subparagraph 2., the office shall grant the tax
476	credits for those the applications on a pro rata basis. If,
477	after the first 6 months of the fiscal year, additional credits
478	become available under subparagraph 1., the office shall grant
479	the tax credits by first granting to those who received a pro
480	rata reduction up to the full amount of their request and, if
481	there are remaining credits, granting credits to those who
482	applied on or after the 11th business day of the state fiscal
483	year on a first-come, first-served basis.
484	Section 4.  This act shall take effect July 1, 2006.

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