Amendment
Bill No. 0888
Amendment No. 824775
CHAMBER ACTION
Senate House
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1Representative Littlefield offered the following:
2
3     Amendment to Amendment (413029) (with title amendment)
4Remove lines 455-882 and insert:
5220.187, and those enumerated in ss. 220.192 and 220.193.
6     Section 12.  Section 220.192, Florida Statutes, is created
7to read:
8     220.192  Renewable energy technologies investment tax
9credit.--
10     (1)  DEFINITIONS.--For purposes of this section, the term:
11     (a)  "Biodiesel" means biodiesel as defined in s.
12212.08(7)(ccc).
13     (b)  "Eligible costs" means:
14     1.  Seventy-five percent of all capital costs, operation
15and maintenance costs, and research and development costs
16incurred between July 1, 2006, and June 30, 2010, up to a limit
17of $3 million per state fiscal year for all taxpayers, in
18connection with an investment in hydrogen-powered vehicles and
19hydrogen vehicle fueling stations in the state, including, but
20not limited to, the costs of constructing, installing, and
21equipping such technologies in the state.
22     2.  Seventy-five percent of all capital costs, operation
23and maintenance costs, and research and development costs
24incurred between July 1, 2006, and June 30, 2010, up to a limit
25of $1.5 million per state fiscal year for all taxpayers, and
26limited to a maximum of $12,000 per fuel cell, in connection
27with an investment in commercial stationary hydrogen fuel cells
28in the state, including, but not limited to, the costs of
29constructing, installing, and equipping such technologies in the
30state.
31     3.  Seventy-five percent of all capital costs, operation
32and maintenance costs, and research and development costs
33incurred between July 1, 2006, and June 30, 2010, up to a limit
34of $6.5 million per state fiscal year for all taxpayers, in
35connection with an investment in the production, storage, and
36distribution of biodiesel (B10-B100) and ethanol (E10-E100) in
37the state, including the costs of constructing, installing, and
38equipping such technologies in the state. Gasoline fueling
39station pump retrofits for ethanol (E10-E100) distribution
40qualify as an eligible cost under this subparagraph.
41     (c)  "Ethanol" means ethanol as defined in s.
42212.08(7)(ccc).
43     (d)  "Hydrogen fuel cell" means hydrogen fuel cell as
44defined in s. 212.08(7)(ccc).
45     (2)  TAX CREDIT.--For tax years beginning on or after
46January 1, 2007, a credit against the tax imposed by this
47chapter shall be granted in an amount equal to the eligible
48costs. Credits may be used in tax years beginning January 1,
492007, and ending December 31, 2010, after which the credit shall
50expire. If the credit is not fully used in any one tax year
51because of insufficient tax liability on the part of the
52corporation, the unused amount may be carried forward and used
53in tax years beginning January 1, 2007, and ending December 31,
542012, after which the credit carryover expires and may not be
55used. A taxpayer that files a consolidated return in this state
56as a member of an affiliated group under s. 220.131(1) may be
57allowed the credit on a consolidated return basis up to the
58amount of tax imposed upon the consolidated group. Any eligible
59cost for which a credit is claimed and which is deducted or
60otherwise reduces federal taxable income shall be added back in
61computing adjusted federal income under s. 220.13.
62     (3)  CORPORATE APPLICATION PROCESS.--Any corporation
63wishing to obtain tax credits available under this section must
64submit to the Department of Environmental Protection an
65application for tax credit that includes a complete description
66of all eligible costs for which the corporation is seeking a
67credit and a description of the total amount of credits sought.
68The Department of Environmental Protection shall make a
69determination on the eligibility of the applicant for the
70credits sought and certify the determination to the applicant
71and the Department of Revenue. The corporation must attach the
72Department of Environmental Protection's certification to the
73tax return on which the credit is claimed. The Department of
74Environmental Protection shall be responsible for ensuring that
75the corporate income tax credits granted in each fiscal year do
76not exceed the limits provided for in this section. The
77Department of Environmental Protection is authorized to adopt
78the necessary rules, guidelines, and application materials for
79the application process.
80     (4)  TAXPAYER APPLICATION PROCESS.--To claim a credit under
81this section, each taxpayer must apply to the Department of
82Environmental Protection for an allocation of each type of
83annual credit by the date established by the Department of
84Environmental Protection. The application form may be
85established by the Department of Environmental Protection and
86shall include an affidavit from each taxpayer certifying that
87all information contained in the application, including all
88records of eligible costs claimed as the basis for the tax
89credit, are true and correct. Approval of the credits under this
90section shall be accomplished on a first-come, first-served
91basis, based upon the date complete applications are received by
92the Department of Environmental Protection. A taxpayer shall
93submit only one complete application based upon eligible costs
94incurred within a particular state fiscal year. Incomplete
95placeholder applications will not be accepted and will not
96secure a place in the first-come, first-served application line.
97If a taxpayer does not receive a tax credit allocation due to
98the exhaustion of the annual tax credit authorizations, then
99such taxpayer may reapply in the following year for those
100eligible costs and will have priority over other applicants for
101the allocation of credits.
102     (5)  ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF
103CREDITS.--
104     (a)  In addition to its existing audit and investigation
105authority, the Department of Revenue may perform any additional
106financial and technical audits and investigations, including
107examining the accounts, books, and records of the tax credit
108applicant, that are necessary to verify the eligible costs
109included in the tax credit return and to ensure compliance with
110this section. The Department of Environmental Protection shall
111provide technical assistance when requested by the Department of
112Revenue on any technical audits or examinations performed
113pursuant to this section.
114     (b)  It is grounds for forfeiture of previously claimed and
115received tax credits if the Department of Revenue determines, as
116a result of either an audit or examination or from information
117received from the Department of Environmental Protection, that a
118taxpayer received tax credits pursuant to this section to which
119the taxpayer was not entitled. The taxpayer is responsible for
120returning forfeited tax credits to the Department of Revenue,
121and such funds shall be paid into the General Revenue Fund of
122the state.
123     (c)  The Department of Environmental Protection may revoke
124or modify any written decision granting eligibility for tax
125credits under this section if it is discovered that the tax
126credit applicant submitted any false statement, representation,
127or certification in any application, record, report, plan, or
128other document filed in an attempt to receive tax credits under
129this section. The Department of Environmental Protection shall
130immediately notify the Department of Revenue of any revoked or
131modified orders affecting previously granted tax credits.
132Additionally, the taxpayer must notify the Department of Revenue
133of any change in its tax credit claimed.
134     (d)  The taxpayer shall file with the Department of Revenue
135an amended return or such other report as the Department of
136Revenue prescribes by rule and shall pay any required tax and
137interest within 60 days after the taxpayer receives notification
138from the Department of Environmental Protection that previously
139approved tax credits have been revoked or modified. If the
140revocation or modification order is contested, the taxpayer
141shall file an amended return or other report as provided in this
142paragraph within 60 days after a final order is issued following
143proceedings.
144     (e)  A notice of deficiency may be issued by the Department
145of Revenue at any time within 3 years after the taxpayer
146receives formal notification from the Department of
147Environmental Protection that previously approved tax credits
148have been revoked or modified. If a taxpayer fails to notify the
149Department of Revenue of any changes to its tax credit claimed,
150a notice of deficiency may be issued at any time.
151     (6)  RULES.--The Department of Revenue shall have the
152authority to adopt rules relating to the forms required to claim
153a tax credit under this section, the requirements and basis for
154establishing an entitlement to a credit, and the examination and
155audit procedures required to administer this section.
156     (7)  PUBLICATION.--The Department of Environmental
157Protection shall determine and publish on a regular basis the
158amount of available tax credits remaining in each fiscal year.
159     Section 13.  Section 220.193, Florida Statutes, is created
160to read:
161     220.193  Florida renewable energy production credit.--
162     (1)  The purpose of this section is to encourage the
163development and expansion of facilities that produce renewable
164energy in Florida.
165     (2)  As used in this section, the term:
166     (a)  "Commission" shall mean the Public Service Commission.
167     (b)  "Department" shall mean the Department of Revenue.
168     (c)  "Expanded facility" shall mean a Florida renewable
169energy facility that increases its electrical production and
170sale by more than 5 percent above the facility's electrical
171production and sale during the 2005 calendar year.
172     (d)  "Florida renewable energy facility" shall mean a
173facility in the state that produces electricity for sale from
174renewable energy, as defined in s. 377.803.
175     (e)  "New facility" shall mean a Florida renewable energy
176facility that is operationally placed in service after May 1,
1772006.
178     (3)  An annual credit against the tax imposed by this
179section shall be allowed to a taxpayer, based on the taxpayer's
180production and sale of electricity from a new or expanded
181Florida renewable energy facility. For a new facility, the
182credit shall be based on the taxpayer's sale of the facility's
183entire electrical production. For an expanded facility, the
184credit shall be based on the increases in the facility's
185electrical production that are achieved after May 1, 2006.
186     (a)  The credit shall be $0.01 for each kilowatt-hour of
187electricity produced and sold by the taxpayer to an unrelated
188party during a given tax year.
189     (b)  The credit may be claimed for electricity produced and
190sold on or after January 1, 2007. Beginning in 2008 and
191continuing until 2011, each taxpayer claiming a credit under
192this section must first apply to the department by February 1 of
193each year for an allocation of available credit. The department,
194in consultation with the commission, shall develop an
195application form. The application form shall, at a minimum,
196require a sworn affidavit from each taxpayer certifying the
197increase in production and sales that form the basis of the
198application and certifying that all information contained in the
199application is true and correct.
200     (c)  If the amount of credits applied for each year exceeds
201$5 million, the department shall award to each applicant a
202prorated amount based on each applicant's increased production
203and sales and the increased production and sales of all
204applicants.
205     (d)  If the credit granted pursuant to this section is not
206fully used in one year because of insufficient tax liability on
207the part of the taxpayer, the unused amount may be carried
208forward for a period not to exceed 5 years. The carryover credit
209may be used in a subsequent year when the tax imposed by this
210chapter for such year exceeds the credit for such year, after
211applying the other credits and unused credit carryovers in the
212order provided in s. 220.02(8).
213     (e)  A taxpayer that files a consolidated return in this
214state as a member of an affiliated group under s. 220.131(1) may
215be allowed the credit on a consolidated return basis up to the
216amount of tax imposed upon the consolidated group.
217     (f)1.  Tax credits that may be available under this section
218to an entity eligible under this section may be transferred
219after a merger or acquisition to the surviving or acquiring
220entity and used in the same manner with the same limitations.
221     2.  The entity or its surviving or acquiring entity as
222described in subparagraph 1. may transfer any unused credit in
223whole or in units of no less than 25 percent of the remaining
224credit. The entity acquiring such credit may use it in the same
225manner and with the same limitations under this section. Such
226transferred credits may not be transferred again although they
227may succeed to a surviving or acquiring entity subject to the
228same conditions and limitations as described in this section.
229     3.  In the event the credit provided for under this section
230is reduced as a result of an examination or audit by the
231department, such tax deficiency shall be recovered from the
232first entity or the surviving or acquiring entity to have
233claimed such credit up to the amount of credit taken. Any
234subsequent deficiencies shall be assessed against any entity
235acquiring and claiming such credit, or in the case of multiple
236succeeding entities in the order of credit succession.
237     (g)  Notwithstanding any other provision of this section,
238credits for the production and sale of electricity from a new or
239expanded Florida renewable energy facility may be earned between
240January 1, 2007 and June 30, 2010. The combined total amount of
241tax credits which may be granted for all taxpayers under this
242section is limited to $5 million per state fiscal year.
243     (h)  A taxpayer claiming a credit under this section shall
244be required to add back to net income that portion of its
245business deductions claimed on its federal return paid or
246incurred for the taxable year which is equal to the amount of
247the credit allowable for the taxable year under this section.
248     (i)  A taxpayer claiming credit under this section may not
249claim a credit under s. 220.192. A taxpayer claiming credit
250under s. 220.192 may not claim a credit under this section.
251     (4)  The department may adopt rules to implement and
252administer this section, including rules prescribing forms, the
253documentation needed to substantiate a claim for the tax credit,
254and the specific procedures and guidelines for claiming the
255credit.
256     (5)  This section shall take effect upon becoming law and
257shall apply to tax years beginning on and after January 1, 2007.
258     Section 14.  Paragraph (a) of subsection (1) of section
259220.13, Florida Statutes, is amended to read:
260     220.13  "Adjusted federal income" defined.--
261     (1)  The term "adjusted federal income" means an amount
262equal to the taxpayer's taxable income as defined in subsection
263(2), or such taxable income of more than one taxpayer as
264provided in s. 220.131, for the taxable year, adjusted as
265follows:
266     (a)  Additions.--There shall be added to such taxable
267income:
268     1.  The amount of any tax upon or measured by income,
269excluding taxes based on gross receipts or revenues, paid or
270accrued as a liability to the District of Columbia or any state
271of the United States which is deductible from gross income in
272the computation of taxable income for the taxable year.
273     2.  The amount of interest which is excluded from taxable
274income under s. 103(a) of the Internal Revenue Code or any other
275federal law, less the associated expenses disallowed in the
276computation of taxable income under s. 265 of the Internal
277Revenue Code or any other law, excluding 60 percent of any
278amounts included in alternative minimum taxable income, as
279defined in s. 55(b)(2) of the Internal Revenue Code, if the
280taxpayer pays tax under s. 220.11(3).
281     3.  In the case of a regulated investment company or real
282estate investment trust, an amount equal to the excess of the
283net long-term capital gain for the taxable year over the amount
284of the capital gain dividends attributable to the taxable year.
285     4.  That portion of the wages or salaries paid or incurred
286for the taxable year which is equal to the amount of the credit
287allowable for the taxable year under s. 220.181. The provisions
288of this subparagraph shall expire and be void on June 30, 2005.
289     5.  That portion of the ad valorem school taxes paid or
290incurred for the taxable year which is equal to the amount of
291the credit allowable for the taxable year under s. 220.182. The
292provisions of this subparagraph shall expire and be void on June
29330, 2005.
294     6.  The amount of emergency excise tax paid or accrued as a
295liability to this state under chapter 221 which tax is
296deductible from gross income in the computation of taxable
297income for the taxable year.
298     7.  That portion of assessments to fund a guaranty
299association incurred for the taxable year which is equal to the
300amount of the credit allowable for the taxable year.
301     8.  In the case of a nonprofit corporation which holds a
302pari-mutuel permit and which is exempt from federal income tax
303as a farmers' cooperative, an amount equal to the excess of the
304gross income attributable to the pari-mutuel operations over the
305attributable expenses for the taxable year.
306     9.  The amount taken as a credit for the taxable year under
307s. 220.1895.
308     10.  Up to nine percent of the eligible basis of any
309designated project which is equal to the credit allowable for
310the taxable year under s. 220.185.
311     11.  The amount taken as a credit for the taxable year
312under s. 220.187.
313     12.  The amount taken as a credit for the taxable year
314under ss. 220.192 and 220.193.
315     Section 15.  Subsection (2) of section 186.801, Florida
316Statutes, is amended to read:
317     186.801  Ten-year site plans.--
318     (2)  Within 9 months after the receipt of the proposed
319plan, the commission shall make a preliminary study of such plan
320and classify it as "suitable" or "unsuitable." The commission
321may suggest alternatives to the plan. All findings of the
322commission shall be made available to the Department of
323Environmental Protection for its consideration at any subsequent
324electrical power plant site certification proceedings. It is
325recognized that 10-year site plans submitted by an electric
326utility are tentative information for planning purposes only and
327may be amended at any time at the discretion of the utility upon
328written notification to the commission. A complete application
329for certification of an electrical power plant site under
330chapter 403, when such site is not designated in the current 10-
331year site plan of the applicant, shall constitute an amendment
332to the 10-year site plan. In its preliminary study of each 10-
333year site plan, the commission shall consider such plan as a
334planning document and shall review:
335     (a)  The need, including the need as determined by the
336commission, for electrical power in the area to be served.
337     (b)  The effect on fuel diversity within the state.
338     (c)(b)  The anticipated environmental impact of each
339proposed electrical power plant site.
340     (d)(c)  Possible alternatives to the proposed plan.
341     (e)(d)  The views of appropriate local, state, and federal
342agencies, including the views of the appropriate water
343management district as to the availability of water and its
344recommendation as to the use by the proposed plant of salt water
345or fresh water for cooling purposes.
346     (f)(e)  The extent to which the plan is consistent with the
347state comprehensive plan.
348     (g)(f)  The plan with respect to the information of the
349state on energy availability and consumption.
350     Section 16.  Subsection (6) of section 366.04, Florida
351Statutes, is amended to read:
352     366.04  Jurisdiction of commission.--
353     (6)  The commission shall further have exclusive
354jurisdiction to prescribe and enforce safety standards for
355transmission and distribution facilities of all public electric
356utilities, cooperatives organized under the Rural Electric
357Cooperative Law, and electric utilities owned and operated by
358municipalities. In adopting safety standards, the commission
359shall, at a minimum:
360     (a)  Adopt the 1984 edition of the National Electrical
361Safety Code (ANSI C2) as initial standards; and
362     (b)  Adopt, after review, any new edition of the National
363Electrical Safety Code (ANSI C2).
364
365The standards prescribed by the current 1984 edition of the
366National Electrical Safety Code (ANSI C2) shall constitute
367acceptable and adequate requirements for the protection of the
368safety of the public, and compliance with the minimum
369requirements of that code shall constitute good engineering
370practice by the utilities. The administrative authority referred
371to in the 1984 edition of the National Electrical Safety Code is
372the commission. However, nothing herein shall be construed as
373superseding, repealing, or amending the provisions of s.
374403.523(1) and (10).
375     Section 17.  Subsections (1) and (8) of section 366.05,
376Florida Statutes, are amended to read:
377     366.05  Powers.--
378     (1)  In the exercise of such jurisdiction, the commission
379shall have power to prescribe fair and reasonable rates and
380charges, classifications, standards of quality and measurements,
381including the ability to adopt construction standards that
382exceed the National Electrical Safety Code, for purposes of
383ensuring the reliable provision of service, and service rules
384and regulations to be observed by each public utility; to
385require repairs, improvements, additions, replacements, and
386extensions to the plant and equipment of any public utility when
387reasonably necessary to promote the convenience and welfare of
388the public and secure adequate service or facilities for those
389reasonably entitled thereto; to employ and fix the compensation
390for such examiners and technical, legal, and clerical employees
391as it deems necessary to carry out the provisions of this
392chapter; and to adopt rules pursuant to ss. 120.536(1) and
393120.54 to implement and enforce the provisions of this chapter.
394     (8)  If the commission determines that there is probable
395cause to believe that inadequacies exist with respect to the
396energy grids developed by the electric utility industry,
397including inadequacies in fuel diversity or fuel supply
398reliability, it shall have the power, after proceedings as
399provided by law, and after a finding that mutual benefits will
400accrue to the electric utilities involved, to require
401installation or repair of necessary facilities, including
402generating plants and transmission facilities, with the costs to
403be distributed in proportion to the benefits received, and to
404take all necessary steps to ensure compliance. The electric
405utilities involved in any action taken or orders issued pursuant
406to this subsection shall have full power and authority,
407notwithstanding any general or special laws to the contrary, to
408jointly plan, finance, build, operate, or lease generating and
409transmission facilities and shall be further authorized to
410exercise the powers granted to corporations in chapter 361. This
411subsection shall not supersede or control any provision of the
412Florida Electrical Power Plant Siting Act, ss. 403.501-403.518.
413     Section 18.  Section 366.92, Florida Statutes, is created
414to read:
415     366.92  Florida renewable energy policy.--
416     (1)  It is the intent of the Legislature to promote the
417development of renewable energy; protect the economic viability
418of Florida's existing renewable energy facilities; diversify the
419types of fuel used to generate electricity in Florida; lessen
420Florida's dependence on natural gas and fuel oil for the
421production of electricity; minimize the volatility of fuel
422costs; encourage investment within the state; improve
423environmental conditions; and at the same time, minimize the
424costs of power supply to electric utilities and their customers.
425     (2)  For the purposes of this section, "Florida renewable
426energy resources" shall mean renewable energy, as defined in s.
427377.803, that is produced in Florida.
428     (3)  The commission may adopt appropriate goals for
429increasing the use of existing, expanded, and new Florida
430renewable energy resources. The commission may change the goals.
431The commission may review and reestablish the goals at least
432
433
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435     Remove line 4339 and insert:
436intent; providing definitions; authorizing the Florida


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